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ê2003 Statutes of Nevada, Page 2330ê

 

CHAPTER 395, SB 320

Senate Bill No. 320–Senator Shaffer (by request)

 

CHAPTER 395

 

AN ACT relating to industrial insurance; authorizing the establishment of a system of external review for certain matters relating to industrial insurance; providing for the regulation and certification of certain external review organizations; providing for the payment of certain regulatory fees by external review organizations; revising various provisions relating to the payment of compensation to injured employees; revising certain procedures and establishing certain requirements relating to the adjudication of contested claims; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 616A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.

      Sec. 2.  “External review organization” means an organization which has been issued a certificate pursuant to section 3 of this act that authorizes the organization to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS.

      Sec. 3.  1.  The Commissioner may issue certificates authorizing qualified external review organizations to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS. If the Commissioner issues such certificates and the Commissioner determines that an external review organization is qualified to conduct external reviews for the purposes of chapters 616A to 617, inclusive, of NRS, the Commissioner shall issue a certificate to the external review organization that authorizes the organization to conduct such external reviews in accordance with the provisions of section 5 of this act and the regulations adopted by the Commissioner.

      2.  The Commissioner may adopt regulations setting forth the procedures that an external review organization must follow to be issued a certificate to conduct external reviews. Any regulations adopted pursuant to this section must include, without limitation, provisions setting forth:

      (a) The manner in which an external review organization may apply for a certificate and the requirements for the issuance and renewal of the certificate pursuant to this section;

      (b) The grounds for which the Commissioner may refuse to issue, suspend, revoke or refuse to renew a certificate issued pursuant to this section;

      (c) The manner and circumstances under which an external review organization is required to conduct its business; and

      (d) A fee for issuing or renewing a certificate of an external review organization pursuant to this section. The fee must not exceed the cost of issuing or renewing the certificate.


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ê2003 Statutes of Nevada, Page 2331 (Chapter 395, SB 320)ê

 

      3.  A certificate issued pursuant to this section expires 1 year after it is issued and may be renewed in accordance with regulations adopted by the Commissioner.

      4.  Before the Commissioner may issue a certificate to an external review organization, the external review organization must:

      (a) Demonstrate to the satisfaction of the Commissioner that it is able to carry out, in a timely manner, the duties of an external review organization as set forth in section 5 of this act and the regulations adopted by the Commissioner. The demonstration must include, without limitation, proof that the external review organization employs, contracts with or otherwise retains only persons who are qualified because of their education, training, professional licensing and experience to perform the duties assigned to those persons; and

      (b) Provide assurances satisfactory to the Commissioner that the external review organization will:

             (1) Conduct external reviews in accordance with the provisions of section 5 of this act and the regulations adopted by the Commissioner;

             (2) Render its decisions in a clear, consistent, thorough and timely manner; and

             (3) Avoid conflicts of interest.

      5.  For the purposes of this section, an external review organization has a conflict of interest if the external review organization or any employee, agent or contractor of the external review organization who conducts an external review has a professional, familial or financial interest of a material nature with respect to any person who has a substantial interest in the outcome of the external review, including, without limitation:

      (a) The claimant;

      (b) The employer; or

      (c) The insurer or any officer, director or management employee of the insurer.

      6.  The Commissioner shall not issue a certificate to an external review organization that is affiliated with:

      (a) An organization for managed care which provides comprehensive medical and health care services to employees for injuries or diseases pursuant to chapters 616A to 617, inclusive, of NRS;

      (b) An insurer;

      (c) A third-party administrator; or

      (d) A national, state or local trade association.

      7.  An external review organization which is certified or accredited by an accrediting body that is nationally recognized shall be deemed to have satisfied all the conditions and qualifications required for the external review organization to be issued a certificate pursuant to this section.

      Sec. 4.  NRS 616A.025 is hereby amended to read as follows:

      616A.025  As used in chapters 616A to 616D, inclusive, of NRS, unless the context otherwise requires, the words and terms defined in NRS 616A.030 to 616A.360, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.


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ê2003 Statutes of Nevada, Page 2332 (Chapter 395, SB 320)ê

 

      Sec. 5.  Chapter 616C of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Not later than 5 business days after the date that an external review organization receives a request for an external review, the external review organization shall:

      (a) Review the documents and materials submitted for the external review; and

      (b) Notify the injured employee, his employer and the insurer whether the external review organization needs any additional information to conduct the external review.

      2.  The external review organization shall render a decision on the matter not later than 15 business days after the date that it receives all information that is necessary to conduct the external review.

      3.  In conducting the external review, the external review organization shall consider, without limitation:

      (a) The medical records of the insured;

      (b) Any recommendations of the physician of the insured; and

      (c) Any other information approved by the Commissioner for consideration by an external review organization.

      4.  In its decision, the external review organization shall specify the reasons for its decision. The external review organization shall submit a copy of its decision to:

      (a) The injured employee;

      (b) The employer;

      (c) The insurer; and

      (d) The appeals officer, if any.

      5.  The insurer shall pay the costs of the services provided by the external review organization.

      6.  The Commissioner may adopt regulations to govern the process of external review and to carry out the provisions of this section. Any regulations adopted pursuant to this section must provide that:

      (a) All parties must agree to the submission of a matter to an external review organization before a request for external review may be submitted;

      (b) A party may not be ordered to submit a matter to an external review organization; and

      (c) The findings and decisions of an external review organization are not binding.

      Sec. 6.  NRS 616C.245 is hereby amended to read as follows:

      616C.245  1.  Every injured employee within the provisions of chapters 616A to 616D, inclusive, of NRS is entitled to receive promptly such accident benefits as may reasonably be required at the time of the injury and within 6 months thereafter. Such benefits may be further extended for additional periods as may be required.

      2.  An injured employee is entitled to receive as an accident benefit a motor vehicle that is modified to allow the employee to operate the vehicle safely if:

      (a) As a result of an injury arising out of and in the course of his employment, he is quadriplegic, paraplegic or has had a part of his body amputated; and

      (b) He cannot be fitted with a prosthetic device which allows him to operate a motor vehicle safely.


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ê2003 Statutes of Nevada, Page 2333 (Chapter 395, SB 320)ê

 

      3.  If an injured employee is entitled to receive a motor vehicle pursuant to subsection 2, a motor vehicle must be modified to allow the employee to operate it safely in the following order of preference:

      (a) A motor vehicle owned by the injured employee must be so modified if the insurer or employer providing accident benefits determines that it is reasonably feasible to do so.

      (b) A used motor vehicle must be so modified if the insurer or employer providing accident benefits determines that it is reasonably feasible to do so.

      (c) A new motor vehicle must be so modified.

      4.  The Administrator shall adopt regulations establishing a maximum benefit to be paid under the provisions of this section.

      Sec. 7.  NRS 616C.315 is hereby amended to read as follows:

      616C.315  1.  Any person who is subject to the jurisdiction of the hearing officers pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS may request a hearing before a hearing officer of any matter within the hearing officer’s authority. The insurer shall provide, without cost, the forms necessary to request a hearing to any person who requests them.

      2.  A hearing must not be scheduled until the following information is provided to the hearing officer:

      (a) The name of:

             (1) The claimant;

             (2) The employer; and

             (3) The insurer or third-party administrator;

      (b) The number of the claim; and

      (c) If applicable, a copy of the letter of determination being appealed, or if such a copy is unavailable, the date of the determination and the issues stated in the determination.

      3.  Except as otherwise provided in NRS 616B.772, 616B.775, 616B.787 and 616C.305, a person who is aggrieved by:

      (a) A written determination of an insurer; or

      (b) The failure of an insurer to respond within 30 days to a written request mailed to the insurer by the person who is aggrieved,

may appeal from the determination or failure to respond by filing a request for a hearing before a hearing officer. Such a request must include the information required pursuant to subsection 2 and must be filed within 70 days after the date on which the notice of the insurer’s determination was mailed by the insurer or the unanswered written request was mailed to the insurer, as applicable. The failure of an insurer to respond to a written request for a determination within 30 days after receipt of such a request shall be deemed by the hearing officer to be a denial of the request.

      [3.] 4.  Failure to file a request for a hearing within the period specified in subsection [2] 3 may be excused if the person aggrieved shows by a preponderance of the evidence that he did not receive the notice of the determination and the forms necessary to request a hearing. The claimant or employer shall notify the insurer of a change of address.

      [4.] 5.  The hearing before the hearing officer must be conducted as expeditiously and informally as is practicable.

      [5.] 6.  The parties to a contested claim may, if the claimant is represented by legal counsel, agree to forego a hearing before a hearing officer and submit the contested claim directly to an appeals officer.

      Sec. 8.  NRS 616C.330 is hereby amended to read as follows:

      616C.330  1.  The hearing officer shall:


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ê2003 Statutes of Nevada, Page 2334 (Chapter 395, SB 320)ê

 

      (a) [Within] Except as otherwise provided in subsection 2 of NRS 616C.315, within 5 days after receiving a request for a hearing, set the hearing for a date and time within 30 days after his receipt of the request;

      (b) Give notice by mail or by personal service to all interested parties to the hearing at least 15 days before the date and time scheduled; and

      (c) Conduct hearings expeditiously and informally.

      2.  The notice must include a statement that the injured employee may be represented by a private attorney or seek assistance and advice from the Nevada Attorney for Injured Workers.

      3.  If necessary to resolve a medical question concerning an injured employee’s condition or to determine the necessity of treatment for which authorization for payment has been denied, the hearing officer may refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee. If the medical question concerns the rating of a permanent disability, the hearing officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians and chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any medical examination requested by the hearing officer.

      4.  If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the hearing officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

      5.  The hearing officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

      6.  The hearing officer may allow or forbid the presence of a court reporter and the use of a tape recorder in a hearing.

      7.  The hearing officer shall render his decision within 15 days after:

      (a) The hearing; or

      (b) He receives a copy of the report from the medical examination he requested.

      8.  The hearing officer shall render his decision in the most efficient format developed by the Chief of the Hearings Division of the Department of Administration.

      9.  The hearing officer shall give notice of his decision to each party by mail. He shall include with the notice of his decision the necessary forms for appealing from the decision.

      10.  Except as otherwise provided in NRS 616C.380, the decision of the hearing officer is not stayed if an appeal from that decision is taken unless an application for a stay is submitted by a party. If such an application is submitted, the decision is automatically stayed until a determination is made on the application. A determination on the application must be made within 30 days after the filing of the application.


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ê2003 Statutes of Nevada, Page 2335 (Chapter 395, SB 320)ê

 

30 days after the filing of the application. If, after reviewing the application, a stay is not granted by the hearing officer or an appeals officer, the decision must be complied with within 10 days after the refusal to grant a stay.

      Sec. 9.  NRS 616C.345 is hereby amended to read as follows:

      616C.345  1.  Any party aggrieved by a decision of the hearing officer relating to a claim for compensation may appeal from the decision by filing a notice of appeal with an appeals officer within 30 days after the date of the decision.

      2.  A hearing must not be scheduled until the following information is provided to the appeals officer:

      (a) The name of:

             (1) The claimant;

             (2) The employer; and

             (3) The insurer or third-party administrator;

      (b) The number of the claim; and

      (c) If applicable, a copy of the letter of determination being appealed, or if such a copy is unavailable, the date of the determination and the issues stated in the determination.

      3.  If a dispute is required to be submitted to a procedure for resolving complaints pursuant to NRS 616C.305 and:

      (a) A final determination was rendered pursuant to that procedure; or

      (b) The dispute was not resolved pursuant to that procedure within 14 days after it was submitted,

any party to the dispute may file a notice of appeal within 70 days after the date on which the final determination was mailed to the employee, or his dependent, or the unanswered request for resolution was submitted. Failure to render a written determination within 30 days after receipt of such a request shall be deemed by the appeals officer to be a denial of the request.

      [3.] 4.  Except as otherwise provided in NRS 616C.380, the filing of a notice of appeal does not automatically stay the enforcement of the decision of a hearing officer or a determination rendered pursuant to NRS 616C.305. The appeals officer may order a stay, when appropriate, upon the application of a party. If such an application is submitted, the decision is automatically stayed until a determination is made concerning the application. A determination on the application must be made within 30 days after the filing of the application. If a stay is not granted by the officer after reviewing the application, the decision must be complied with within 10 days after the date of the refusal to grant a stay.

      [4.] 5.  Except as otherwise provided in this subsection [,] and subsection 2, the appeals officer shall, within 10 days after receiving a notice of appeal pursuant to this section or a contested claim pursuant to subsection [5] 6 of NRS 616C.315, schedule a hearing on the merits of the appeal or contested claim for a date and time within 90 days after his receipt of the notice and give notice by mail or by personal service to all parties to the matter and their attorneys or agents at least 30 days before the date and time scheduled. A request to schedule the hearing for a date and time which is:

      (a) Within 60 days after the receipt of the notice of appeal or contested claim; or

      (b) More than 90 days after the receipt of the notice or claim,

may be submitted to the appeals officer only if all parties to the appeal or contested claim agree to the request.


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ê2003 Statutes of Nevada, Page 2336 (Chapter 395, SB 320)ê

 

      [5.] 6.  An appeal or contested claim may be continued upon written stipulation of all parties, or upon good cause shown.

      [6.] 7.  Failure to file a notice of appeal within the period specified in subsection 1 or [2] 3 may be excused if the party aggrieved shows by a preponderance of the evidence that he did not receive the notice of the determination and the forms necessary to appeal the determination. The claimant, employer or insurer shall notify the hearing officer of a change of address.

      Sec. 10.  NRS 616C.360 is hereby amended to read as follows:

      616C.360  1.  A stenographic or electronic record must be kept of the hearing before the appeals officer and the rules of evidence applicable to contested cases under chapter 233B of NRS apply to the hearing.

      2.  The appeals officer must hear any matter raised before him on its merits, including new evidence bearing on the matter.

      3.  If [necessary to resolve] there is a medical question or dispute concerning an injured employee’s condition or [to determine] concerning the necessity of treatment for which authorization for payment has been denied, the appeals officer may [refer] :

      (a) Refer the employee to a physician or chiropractor of his choice who has demonstrated special competence to treat the particular medical condition of the employee. If the medical question concerns the rating of a permanent disability, the appeals officer may refer the employee to a rating physician or chiropractor. The rating physician or chiropractor must be selected in rotation from the list of qualified physicians or chiropractors maintained by the Administrator pursuant to subsection 2 of NRS 616C.490, unless the insurer and the injured employee otherwise agree to a rating physician or chiropractor. The insurer shall pay the costs of any examination requested by the appeals officer.

      (b) If the medical question or dispute is relevant to an issue involved in the matter before the appeals officer and all parties agree to the submission of the matter to an external review organization, submit the matter to an external review organization in accordance with section 5 of this act and any regulations adopted by the Commissioner.

      4.  If an injured employee has requested payment for the cost of obtaining a second determination of his percentage of disability pursuant to NRS 616C.100, the appeals officer shall decide whether the determination of the higher percentage of disability made pursuant to NRS 616C.100 is appropriate and, if so, may order the insurer to pay to the employee an amount equal to the maximum allowable fee established by the Administrator pursuant to NRS 616C.260 for the type of service performed, or the usual fee of that physician or chiropractor for such service, whichever is less.

      5.  The appeals officer shall order an insurer, organization for managed care or employer who provides accident benefits for injured employees pursuant to NRS 616C.265 to pay the charges of a provider of health care if the conditions of NRS 616C.138 are satisfied.

      6.  Any party to the appeal or the appeals officer may order a transcript of the record of the hearing at any time before the seventh day after the hearing. The transcript must be filed within 30 days after the date of the order unless the appeals officer otherwise orders.

      7.  The appeals officer shall render his decision:


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ê2003 Statutes of Nevada, Page 2337 (Chapter 395, SB 320)ê

 

      (a) If a transcript is ordered within 7 days after the hearing, within 30 days after the transcript is filed; or

      (b) If a transcript has not been ordered, within 30 days after the date of the hearing.

      8.  The appeals officer may affirm, modify or reverse any decision made by the hearing officer and issue any necessary and proper order to give effect to his decision.

      Sec. 11.  Notwithstanding the amendatory provisions of this act, an appeals officer shall not submit a matter for external review pursuant to NRS 616C.360, as amended by this act, until the Commissioner of Insurance has issued a certificate pursuant to section 3 of this act to at least one external review organization that is qualified to conduct an external review of the matter.

      Sec. 12.  1.  This section and sections 7 and 9 of this act become effective upon passage and approval.

      2.  Sections 1 to 6, inclusive, 8, 10 and 11 of this act become effective upon passage and approval for the purpose of adopting regulations and on October 1, 2003, for all other purposes.

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CHAPTER 396, SB 176

Senate Bill No. 176–Committee on Government Affairs

 

CHAPTER 396

 

AN ACT relating to land use planning; requiring the retention of certain information regarding notice provided for certain hearings; revising the requirements governing notice of a hearing regarding the amendment to a zoning boundary; revising the date by which a subdivider must present successive maps in a series of final maps; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:

      If a governing body or other entity causes notice of a hearing to be provided pursuant to NRS 278.0215, 278.147, 278.260, 278.315, 278.4789 or 278.480, the governing body or other entity shall retain:

      1.  A copy of the notice;

      2.  A list of the persons or governmental entities to which the notice was addressed; and

      3.  A record of the date on which the notice was deposited in the United States mail, postage prepaid, or, if applicable, sent by electronic means.

      Sec. 2.  NRS 278.010 is hereby amended to read as follows:

      278.010  As used in NRS 278.010 to 278.630, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0105 to 278.0195, inclusive, have the meanings ascribed to them in those sections.


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ê2003 Statutes of Nevada, Page 2338 (Chapter 396, SB 176)ê

 

      Sec. 3.  NRS 278.260 is hereby amended to read as follows:

      278.260  1.  The governing body shall provide for the manner in which zoning regulations and restrictions and the boundaries of zoning districts are determined, established, enforced and amended.

      2.  A zoning regulation, restriction or boundary , or an amendment thereto , must not become effective until after transmittal of a copy of the relevant application to the town board, citizens’ advisory council or town advisory board pursuant to subsection 5, if applicable, and after a public hearing at which parties in interest and other persons have an opportunity to be heard. The governing body shall cause notice of the time and place of the hearing to be:

      (a) Published in an official newspaper, or a newspaper of general circulation, in the city, county or region; and

      (b) Mailed to each tenant of a mobile home park if that park is located within 300 feet of the property in question, at least 10 days before the hearing.

      3.  If a proposed amendment involves a change in the boundary of a zoning district in a county whose population is less than [400,000,] 100,000, the governing body shall, to the extent this notice does not duplicate the notice required by subsection 2, cause a notice of the hearing to be sent at least 10 days before the hearing to:

      (a) The applicant;

      (b) Each owner, as listed on the county assessor’s records, of real property located within 300 feet of the portion of the boundary being changed;

      (c) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest to the portion of the boundary being changed, to the extent this notice does not duplicate the notice given pursuant to paragraph (b); and

      (d) Any advisory board which has been established for the affected area by the governing body.

The notice must be sent by mail or, if requested by a party to whom notice must be provided pursuant to paragraphs (a) to (d), inclusive, by electronic means if receipt of such an electronic notice can be verified, and must be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description of [,] or a map detailing [,] the proposed change, must indicate the existing zoning designation [,] and the proposed zoning designation [,] of the property in question, and must contain a brief summary of the intent of the proposed change. If the proposed amendment involves a change in the boundary of the zoning district that would reduce the density or intensity with which a parcel of land may be used, the notice must include a section that an owner of property may complete and return to the governing body to indicate his approval of or opposition to the proposed amendment.

      4.  If a proposed amendment involves a change in the boundary of a zoning district in a county whose population is [400,000] 100,000 or more, the governing body shall, to the extent this notice does not duplicate the notice required by subsection 2, cause a notice of the hearing to be sent at least 10 days before the hearing to:

      (a) The applicant;


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ê2003 Statutes of Nevada, Page 2339 (Chapter 396, SB 176)ê

 

      (b) Each owner, as listed on the county assessor’s records, of real property located within [500] 750 feet of the portion of the boundary being changed;

      (c) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest to the portion of the boundary being changed, to the extent this notice does not duplicate the notice given pursuant to paragraph (b); [and]

      (d) Each tenant of a mobile home park if that park is located within 750 feet of the property in question; and

      (e) Any advisory board which has been established for the affected area by the governing body.

The notice must be sent by mail or, if requested by a party to whom notice must be provided pursuant to paragraphs (a) to [(d),] (e), inclusive, by electronic means if receipt of such an electronic notice can be verified, and must be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description of [,] or a map detailing [,] the proposed change, must indicate the existing zoning designation [,] and the proposed zoning designation [,] of the property in question, and must contain a brief summary of the intent of the proposed change. If the proposed amendment involves a change in the boundary of the zoning district that would reduce the density or intensity with which a parcel of land may be used, the notice must include a section that an owner of property may complete and return to the governing body to indicate his approval of or opposition to the proposed amendment.

      5.  If an application is filed with the governing body and the application involves a change in the boundary of a zoning district within an unincorporated town that is located more than 10 miles from an incorporated city, the governing body shall, at least 10 days before the hearing on the application is held pursuant to subsection 2, transmit a copy of any information pertinent to the application to the town board, citizens’ advisory council or town advisory board, whichever is applicable, of the unincorporated town. The town board, citizens’ advisory council or town advisory board may make recommendations regarding the application and submit its recommendations before the hearing on the application is held pursuant to subsection 2. The governing body or other authorized person or entity conducting the hearing shall consider any recommendations submitted by the town board, citizens’ advisory council or town advisory board regarding the application and, within 10 days after making its decision on the application, shall transmit a copy of its decision to the town board, citizens’ advisory council or town advisory board.

      6.  [If] In a county whose population is 400,000 or more, if a notice is required to be sent pursuant to subsection 4:

      (a) The exterior of a notice sent by mail; or

      (b) The cover sheet, heading or subject line of a notice sent by electronic means,

must bear a statement , in at least 10-point bold type or font , in substantially the following form:

 

OFFICIAL NOTICE OF PUBLIC HEARING

 

      7.  In addition to sending the notice required pursuant to subsection 4, in a county whose population is 400,000 or more, the governing body shall, not later than 10 days before the hearing, erect or cause to be erected on the property, at least one sign not less than 2 feet high and 2 feet wide.


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ê2003 Statutes of Nevada, Page 2340 (Chapter 396, SB 176)ê

 

later than 10 days before the hearing, erect or cause to be erected on the property, at least one sign not less than 2 feet high and 2 feet wide. The sign must be made of material reasonably calculated to withstand the elements for 40 days. The governing body must be consistent in its use of colors for the background and lettering of the sign. The sign must include the following information:

      (a) The existing zoning designation of the property in question;

      (b) The proposed zoning designation of the property in question;

      (c) The date, time and place of the public hearing;

      (d) A telephone number which may be used by interested persons to obtain additional information; and

      (e) A statement which indicates whether the proposed zoning designation of the property in question complies with the requirements of the master plan of the city or county in which the property is located.

      8.  A sign required pursuant to subsection 7 is for informational purposes only, and must be erected regardless of any local ordinance regarding the size, placement or composition of signs to the contrary.

      9.  A governing body may charge an additional fee for each application to amend an existing zoning regulation, restriction or boundary to cover the actual costs resulting from the mailed notice required by this section and the erection of not more than one of the signs required by subsection 7, if any. The additional fee is not subject to the limitation imposed by NRS 354.5989.

      10.  The governing body shall remove or cause to be removed any sign required by subsection 7 within 5 days after the final hearing for the application for which the sign was erected. There must be no additional charge to the applicant for such removal.

      11.  If a proposed amendment involves a change in the boundary of a zoning district in a county whose population is 400,000 or more that would reduce the density or intensity with which a parcel of land may be used and at least 20 percent of the property owners to whom notices were sent pursuant to subsection 4 indicate in their responses opposition to the proposed amendment, the governing body shall not approve the proposed amendment unless the governing body:

      (a) Considers separately the merits of each aspect of the proposed amendment to which the owners expressed opposition; and

      (b) Makes a written finding that the public interest and necessity will be promoted by approval of the proposed amendment.

      12.  The governing body of a county whose population is 400,000 or more shall not approve a zoning regulation, restriction or boundary, or an amendment thereof, that affects any unincorporated area of the county that is surrounded completely by the territory of an incorporated city without sending a notice to the governing body of the city. The governing body of the city, or its designee, must submit any recommendations to the governing body of the county within 15 days after receiving the notice. The governing body of the county shall consider any such recommendations. If the governing body of the county does not accept a recommendation, the governing body of the county, or its authorized agent, shall specify for the record the reasons for its action.

      Sec. 4.  NRS 278.315 is hereby amended to read as follows:

      278.315  1.  The governing body may provide by ordinance for the granting of variances, special use permits, conditional use permits or other special exceptions by the board of adjustment, the planning commission or a hearing examiner appointed pursuant to NRS 278.262.


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ê2003 Statutes of Nevada, Page 2341 (Chapter 396, SB 176)ê

 

hearing examiner appointed pursuant to NRS 278.262. The governing body may impose this duty entirely on the board, commission or examiner, respectively, or provide for the granting of enumerated categories of variances, special use permits, conditional use permits or special exceptions by the board, commission or examiner.

      2.  A hearing to consider an application for the granting of a variance, special use permit, conditional use permit or special exception must be held before the board of adjustment, planning commission or hearing examiner within 65 days after the filing of the application, unless a longer time or a different process of review is provided in an agreement entered into pursuant to NRS 278.0201.

      3.  In a county whose population is less than 100,000, notice setting forth the time, place and purpose of the hearing must be sent at least 10 days before the hearing to:

      (a) The applicant;

      (b) Each owner of real property, as listed on the county assessor’s records, located within 300 feet of the property in question;

      (c) If a mobile home park is located within 300 feet of the property in question, each tenant of that mobile home park; and

      (d) Any advisory board which has been established for the affected area by the governing body.

      4.  Except as otherwise provided in subsection 7, in a county whose population is 100,000 or more, a notice setting forth the time, place and purpose of the hearing must be sent at least 10 days before the hearing to:

      (a) The applicant;

      (b) If the application is for a deviation of at least 10 percent but not more than 30 percent from a standard for development:

             (1) Each owner, as listed on the county assessor’s records, of real property located within 100 feet of the property in question; and

             (2) Each tenant of a mobile home park located within 100 feet of the property in question;

      (c) If the application is for a special use permit or a deviation of more than 30 percent from a standard for development:

             (1) Each owner, as listed on the county assessor’s records, of real property located within 500 feet of the property in question;

            (2) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (1); and

             (3) Each tenant of a mobile home park located within 500 feet of the property in question;

      (d) If the application is for [a change in zoning or] a project of regional significance, as that term is described in NRS 278.02542:

             (1) Each owner, as listed on the county assessor’s records, of real property located within 750 feet of the property in question;

             (2) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (1); and

             (3) Each tenant of a mobile home park located within 750 feet of the property in question; and


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ê2003 Statutes of Nevada, Page 2342 (Chapter 396, SB 176)ê

 

      (e) Any advisory board which has been established for the affected area by the governing body.

      5.  If an application is filed with the governing body for the issuance of a special use permit with regard to property situated within an unincorporated town that is located more than 10 miles from an incorporated city, the governing body shall, at least 10 days before the hearing on the application is held pursuant to subsection 2, transmit a copy of any information pertinent to the application to the town board, citizens’ advisory council or town advisory board, whichever is applicable, of the unincorporated town. The town board, citizens’ advisory council or town advisory board may make recommendations regarding the application and submit its recommendations before the hearing on the application is held pursuant to subsection 2. The governing body or other authorized person or entity conducting the hearing shall consider any recommendations submitted by the town board, citizens’ advisory council or town advisory board regarding the application and, within 10 days after making its decision on the application, shall transmit a copy of its decision to the town board, citizens’ advisory council or town advisory board.

      6.  An applicant or a protestant may appeal a decision of the board of adjustment, planning commission or hearing examiner in accordance with the ordinance adopted pursuant to NRS 278.3195.

      7.  In a county whose population is 400,000 or more, if the application is for the issuance of a special use permit for an establishment which serves alcoholic beverages for consumption on or off of the premises as its primary business in a district which is not a gaming enterprise district as defined in NRS 463.0158, the governing body shall, at least 10 days before the hearing:

      (a) Send a notice setting forth the time, place and purpose of the hearing to:

             (1) The applicant;

             (2) Each owner, as listed on the county assessor’s records, of real property located within 1,500 feet of the property in question;

             (3) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest the property in question, to the extent this notice does not duplicate the notice given pursuant to subparagraph (2);

             (4) Each tenant of a mobile home park located within 1,500 feet of the property in question; and

             (5) Any advisory board which has been established for the affected area by the governing body; and

      (b) Erect or cause to be erected on the property, at least one sign not less than 2 feet high and 2 feet wide. The sign must be made of material reasonably calculated to withstand the elements for 40 days. The governing body must be consistent in its use of colors for the background and lettering of the sign. The sign must include the following information:

            (1) The existing permitted use and zoning designation of the property in question ;

             (2) The proposed permitted use of the property in question;

             (3) The date, time and place of the public hearing; and

             (4) A telephone number which may be used by interested persons to obtain additional information.


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ê2003 Statutes of Nevada, Page 2343 (Chapter 396, SB 176)ê

 

      8.  A sign required pursuant to subsection 7 is for informational purposes only, and must be erected regardless of any local ordinance regarding the size, placement or composition of signs to the contrary.

      9.  A governing body may charge an additional fee for each application for a special use permit to cover the actual costs resulting from the erection of not more than one sign required by subsection 7, if any. The additional fee is not subject to the limitation imposed by NRS 354.5989.

      10.  The governing body shall remove or cause to be removed any sign required by subsection 7 within 5 days after the final hearing for the application for which the sign was erected. There must be no additional charge to the applicant for such removal.

      11.  The notice required to be provided pursuant to subsections 3, 4 and 7 must be sent by mail or, if requested by a party to whom notice must be provided pursuant to those subsections, by electronic means if receipt of such an electronic notice can be verified, and must be written in language which is easy to understand. The notice must set forth the time, place and purpose of the hearing and a physical description or map of the property in question.

      12.  The provisions of this section do not apply to an application for a conditional use permit filed pursuant to NRS 278.147.

      Sec. 5.  NRS 278.360 is hereby amended to read as follows:

      278.360  1.  Unless a longer time is provided in an agreement entered into pursuant to NRS 278.0201:

      (a) Unless the time is extended, the subdivider shall present to the governing body, or the planning commission or the director of planning or other authorized person or agency if authorized to take final action by the governing body, within 2 years after the approval of a tentative map:

             (1) A final map, prepared in accordance with the tentative map, for the entire area for which a tentative map has been approved; or

             (2) The first of a series of final maps covering a portion of the approved tentative map. If the subdivider elects to present a successive map in a series of final maps, each covering a portion of the approved tentative map, the subdivider shall present to the governing body, or the planning commission or the director of planning or other authorized person or agency if authorized to take final action by the governing body, on or before the anniversary of the date on which the subdivider [presented to that entity for recordation] recorded the first in the series of final maps:

                   (I) A final map, prepared in accordance with the tentative map, for the entire area for which the tentative map has been approved; or

                   (II) The next final map in the series of final maps covering a portion of the approved tentative map.

      (b) If the subdivider fails to comply with the provisions of paragraph (a), all proceedings concerning the subdivision are terminated.

      (c) The governing body or planning commission may grant an extension of not more than 1 year for the presentation of any final map after the 1-year period for presenting a successive final map has expired.

      2.  If the subdivider is presenting in a timely manner a series of final maps, each covering a portion of the approved tentative map, no requirements other than those imposed on each of the final maps in the series may be placed on the map when an extension of time is granted unless the requirement is directly attributable to a change in applicable laws which affect the public health, safety or welfare.

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ê2003 Statutes of Nevada, Page 2344ê

 

CHAPTER 397, SB 181

Senate Bill No. 181–Senator Care

 

CHAPTER 397

 

AN ACT relating to land use planning; revising provisions relating to the amendment of a redevelopment plan; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 279.608 is hereby amended to read as follows:

      279.608  1.  If , at any time after the adoption of a redevelopment plan by the legislative body, [it becomes] the agency desires to take an action that will constitute a material deviation from the plan or otherwise determines that it would be necessary or desirable to amend [or modify] the plan, the agency must recommend the amendment of the plan to the legislative body . [may amend the plan upon the recommendation of the agency.] An amendment [or modification] may include the addition of one or more areas to any redevelopment area.

      2.  Before recommending amendment of the plan , the agency shall hold a public hearing on the proposed amendment. Notice of that hearing must be published at least 10 days before the date of hearing in a newspaper of general circulation, printed and published in the community, or, if there is none, in a newspaper selected by the agency. The notice of hearing must include a legal description of the boundaries of the area designated in the plan to be amended and a general statement of the purpose of the amendment. [Copies of the notices must be mailed to the last known owner of each parcel of land within those boundaries, at his last known address as shown by the records of the assessor for the community, and to any person who has acquired property within those boundaries from the agency, at his last known address as shown by the records of the agency.]

      3.  In addition to the notice published pursuant to subsection 2, the agency shall cause a notice of hearing on a proposed amendment to the plan to be sent by mail at least 10 days before the date of the hearing to each owner of real property, as listed in the records of the county assessor, whom the agency determines is likely to be directly affected by the proposed amendment. The notice must:

      (a) Set forth the date, time, place and purpose of the hearing and a physical description of, or a map detailing, the proposed amendment; and

      (b) Contain a brief summary of the intent of the proposed amendment.

      4.  If after the public [hearings] hearing, the agency recommends substantial changes in the plan which affect the master or community plan adopted by the planning commission or the legislative body, those changes must be submitted by the agency to the planning commission for its report and recommendation. [That] The planning commission shall give its report and recommendations [must be given] to the legislative body within 30 days after [that submission.

      4.] the agency submitted the changes to the planning commission.


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ê2003 Statutes of Nevada, Page 2345 (Chapter 397, SB 181)ê

 

      5.  After receiving the recommendation of the agency concerning the changes in the plan, the legislative body shall hold a public hearing on the proposed amendment, notice of which must be published in a newspaper in the manner designated for notice of hearing by the agency. If after that hearing the legislative body determines that the amendments in the plan, proposed by the agency, are necessary or desirable, the legislative body shall adopt an ordinance amending the ordinance adopting the plan.

      6.  As used in this section, “material deviation” means an action that, if taken, would alter significantly one or more of the aspects of a redevelopment plan that are required to be shown in the redevelopment plan pursuant to NRS 279.572. The term includes, without limitation, the vacation of a street that is depicted in the streets and highways plan of the master plan described in paragraph (p) of subsection 1 of NRS 278.160 which has been adopted for the community and the relocation of a public park. The term does not include the vacation of a street that is not depicted in the streets and highways plan of the master plan described in paragraph (p) of subsection 1 of NRS 278.160 which has been adopted for the community.

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CHAPTER 398, SB 354

Senate Bill No. 354–Committee on Transportation

 

CHAPTER 398

 

AN ACT relating to property; requiring certain subdividers of land to dedicate easements to certain public utilities and franchised community antenna television companies; providing an exception; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 278 of NRS is hereby amended by adding thereto a new section to read as follows:

      A governing body or its authorized representative may relieve a person who proposes to divide land pursuant to NRS 278.360 to 278.460, inclusive, or 278.471 to 278.4725, inclusive, from the requirement to dedicate easements to public utilities that provide gas, electric, telecommunications, water and sewer services and any franchised community antenna television companies pursuant to paragraph (d) or (e) of subsection 9 of NRS 278.372 or paragraph (c) or (d) of subsection 4 of NRS 278.472 if the person demonstrates to the public body or its authorized representative that there is not an essential nexus to the public purpose for the dedication and the dedication is not roughly proportional in nature and extent to the impact of the proposed development.

      Sec. 2.  NRS 278.372 is hereby amended to read as follows:

      278.372  1.  The final map must be clearly and legibly drawn in permanent black ink upon good tracing cloth or produced by the use of other materials of a permanent nature generally used for such purpose in the engineering profession.


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ê2003 Statutes of Nevada, Page 2346 (Chapter 398, SB 354)ê

 

engineering profession. Affidavits, certificates and acknowledgments must be legibly stamped or printed upon the final map with permanent black ink.

      2.  The size of each sheet of the final map must be 24 by 32 inches. A marginal line must be drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom, and right edges, and of 2 inches at the left edge along the 24-inch dimension.

      3.  The scale of the final map must be large enough to show all details clearly. The final map must have a sufficient number of sheets to accomplish this end.

      4.  Each sheet of the final map must indicate its particular number, the total number of sheets in the final map and its relation to each adjoining sheet.

      5.  The final map must show all surveyed and mathematical information and data necessary to locate all monuments and to locate and retrace all interior and exterior boundary lines appearing thereon, including the bearings and distances of straight lines, central angle, radii and arc length for all curves and such information as may be necessary to determine the location of the centers of curves.

      6.  Each lot must be numbered or lettered.

      7.  Each street must be named and each block may be numbered or lettered.

      8.  The exterior boundary of the land included within the subdivision must be indicated by graphic border.

      9.  The final map must show [the] :

      (a) The definite location of the subdivision, particularly its relation to surrounding surveys.

      [10.  The final map must show the]

      (b) The area of each lot and the total area of the land in the subdivision in the following manner:

      [(a)] (1) In acres, calculated to the nearest one-hundredth of an acre, if the area is 2 acres or more; or

      [(b)] (2) In square feet if the area is less than 2 acres.

      [11.] (c) Any roads or easements of access which the owner intends to offer for dedication.

      (d) Except as otherwise provided in section 1 of this act, an easement for public utilities that provide gas, electric and telecommunications services and for any community antenna television companies that have a franchise to operate a community antenna television system in that area.

      (e) Except as otherwise provided in section 1 of this act, an easement for public utilities that provide water and sewer services.

      10.  The final map must also satisfy any additional survey and map requirements, including the delineation of Nevada state plane coordinates established pursuant to chapter 327 of NRS, for any corner of the subdivision or any other point prescribed by the local ordinance.

      Sec. 3.  NRS 278.374 is hereby amended to read as follows:

      278.374  1.  Except as otherwise provided in subsection 2, a final map presented for filing must include a certificate signed and acknowledged, in the manner provided in NRS 240.1665 or 240.167, by each person who is an owner of the land:

      (a) Consenting to the preparation and recordation of the final map.

      (b) Offering for dedication that part of the land which the person wishes to dedicate for public use, subject to any reservation contained therein.


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ê2003 Statutes of Nevada, Page 2347 (Chapter 398, SB 354)ê

 

      (c) Reserving any parcel from dedication.

      (d) Granting any permanent easement for utility or community antenna television cable installation or access, as designated on the final map, together with a statement approving such easement, signed by the public utility , community antenna television company or person in whose favor the easement is created or whose services are required.

      2.  If the map presented for filing is an amended map of a common-interest community, the certificate need only be signed and acknowledged by a person authorized to record the map under chapter 116 of NRS.

      3.  A final map of a common-interest community presented for recording and, if required by local ordinance, a final map of any other subdivision presented for recording must include:

      (a) A report from a title company in which the title company certifies that it has issued a guarantee for the benefit of the local government which lists the names of:

             (1) Each owner of record of the land to be divided; and

             (2) Each holder of record of a security interest in the land to be divided, if the security interest was created by a mortgage or a deed of trust.

The guarantee accompanying a final map of a common-interest community must also show that there are no liens of record against the common-interest community or any part thereof for delinquent state, county, municipal, federal or local taxes or assessments collected as taxes or special assessments.

      (b) The written consent of each holder of record of a security interest listed pursuant to subparagraph (2) of paragraph (a), to the preparation and recordation of the final map. A holder of record may consent by signing:

             (1) The final map; or

             (2) A separate document that is filed with the final map and declares his consent to the division of land.

      4.  For the purpose of this section the following shall be deemed not to be an interest in land:

      (a) A lien for taxes or special assessments.

      (b) A trust interest under a bond indenture.

      5.  As used in this section, “guarantee” means a guarantee of the type filed with the Commissioner of Insurance pursuant to paragraph (e) of subsection 1 of NRS 692A.120.

      Sec. 4.  NRS 278.4713 is hereby amended to read as follows:

      278.4713  1.  Unless the filing of a tentative map is waived, a person who proposes to make a division of land pursuant to NRS 278.471 to 278.4725, inclusive, must first:

      (a) File a tentative map for the area in which the land is located with the planning commission or its designated representative or with the clerk of the governing body if there is no planning commission; and

      (b) Pay a filing fee of no more than $750 set by the governing body.

      2.  This map must be:

      (a) Entitled “Tentative Map of Division into Large Parcels”; and

      (b) Prepared and certified by a professional land surveyor.

      3.  This map must show:

      (a) The approximate, calculated or actual acreage of each lot and the total acreage of the land to be divided.


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ê2003 Statutes of Nevada, Page 2348 (Chapter 398, SB 354)ê

 

      (b) Any roads or easements of access which exist, are proposed in the applicable master plan or are proposed by the person who intends to divide the land.

      (c) [Any easements] Except as otherwise provided in section 1 of this act, an easement for public utilities [which exist or which are proposed.] that provide gas, electric and telecommunications services and for any community antenna television companies that have a franchise to operate a community antenna television system in that area.

      (d) Except as otherwise provided in section 1 of this act, an easement for public utilities that provide water and sewer services.

      (e) Any existing easements for irrigation or drainage, and any normally continuously flowing watercourses.

      [(e)] (f) An indication of any existing road or easement which the owner does not intend to dedicate.

      [(f)] (g) The name and address of the owner of the land.

      Sec. 5.  NRS 278.472 is hereby amended to read as follows:

      278.472  1.  After the planning commission or the governing body or its authorized representative has approved the tentative map or waived the requirement of its filing, or 60 days after the date of its filing, whichever is earlier, the person who proposes to divide the land may file a final map of the division with the governing body or its authorized representative or, if authorized by the governing body, with the planning commission. The map must be accompanied by a written statement signed by the treasurer of the county in which the land to be divided is located indicating that all property taxes on the land for the fiscal year have been paid.

      2.  This map must be:

      (a) Entitled “Map of Division into Large Parcels.”

      (b) Filed with the governing body or its authorized representative or, if authorized by the governing body, with the planning commission not later than 1 year after the date that the tentative map was first filed with the planning commission or the governing body or its authorized representative or that the requirement of its filing was waived.

      (c) Prepared by a professional land surveyor.

      (d) Based upon an actual survey by the preparer and show the date of the survey and contain the certificate of the surveyor required pursuant to NRS 278.375.

      (e) Clearly and legibly drawn in permanent black ink upon good tracing cloth or produced by the use of other materials of a permanent nature generally used for this purpose in the engineering profession. Affidavits, certificates and acknowledgments must be legibly stamped or printed upon the map with permanent black ink.

      (f) Twenty-four by 32 inches in size with a marginal line drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom, and right edges, and of 2 inches at the left edge along the 24-inch dimension.

      (g) Of scale large enough to show clearly all details.

      3.  The particular number of the sheet and the total number of sheets comprising the map must be stated on each of the sheets, and its relation to each adjoining sheet must be clearly shown.

      4.  This map must show and define:

      (a) All subdivision lots by the number and actual acreage of each lot.


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ê2003 Statutes of Nevada, Page 2349 (Chapter 398, SB 354)ê

 

      (b) Any roads or easements of access which exist and which the owner intends to offer for dedication, any roads or easements of access which are shown on the applicable master plan and any roads or easements of access which are specially required by the planning commission or the governing body or its authorized representative.

      (c) [Any easements] Except as otherwise provided in section 1 of this act, an easement for public utilities [which exist or which are proposed.] that provide gas, electric and telecommunications services and for any community antenna television companies that have a franchise to operate a community antenna television system in that area.

      (d) Except as otherwise provided in section 1 of this act, an easement for public utilities that provide water and sewer services.

      (e) Any existing easements for irrigation or drainage, and any normally continuously flowing watercourses.

________

 

CHAPTER 399, AB 509

Assembly Bill No. 509–Committee on Education

 

CHAPTER 399

 

AN ACT relating to public schools; revising provisions governing the review of a decision by the board of trustees of a school district to close a school or change the use of a school; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 393.085 is hereby amended to read as follows:

      393.085  [1.]  Any resident of a school district who is aggrieved by a decision of the board of trustees to close or change the use of a school under NRS 393.080 may, within 30 days after the decision is rendered, make a written request to the board for a hearing for reconsideration of the decision. The board shall schedule the hearing within 30 days after receiving the request and shall publish a notice of the time and place of the hearing in a newspaper of general circulation in the county at least 10 days before the hearing.

      [2.  Any resident of the school district who is aggrieved by the decision of the board of trustees at the reconsideration hearing may, within 30 days after that decision is rendered, make a written request to the State Board of Education for a hearing to review the decision. The State Board of Education shall conduct the hearing in the county in which the school is located within 30 days after receiving the request and shall publish a notice of the time and place of the hearing in a newspaper of general circulation in the county at least 10 days before the hearing. The State Board of Education shall hear the matter de novo.] The decision of the [State Board of Education] board of trustees after its reconsideration hearing is a final decision subject to judicial review as provided by law.

      Sec. 2.  This act becomes effective on July 1, 2003.

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ê2003 Statutes of Nevada, Page 2350ê

 

CHAPTER 400, AB 514

Assembly Bill No. 514–Committee on Taxation

 

CHAPTER 400

 

AN ACT relating to taxation; providing for the enactment of certain provisions that are necessary to carry out the Streamlined Sales and Use Tax Agreement; providing for the electronic registration of sellers; establishing requirements for determining the place of sales for the purposes of sales and use taxes; establishing requirements for claiming an exemption from such taxes; providing for the electronic payment of such taxes; providing for the submission to the voters of a question relating to whether the Sales and Use Tax Act of 1955 should be amended to conform to the Agreement; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 360.300 is hereby amended to read as follows:

      360.300  1.  If a person fails to file a return or the Department is not satisfied with the return or returns of any tax, contribution or premium or amount of tax, contribution or premium required to be paid to the State by any person, in accordance with the applicable provisions of this chapter, chapter 360B, 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS as administered or audited by the Department, it may compute and determine the amount required to be paid upon the basis of:

      (a) The facts contained in the return;

      (b) Any information within its possession or that may come into its possession; or

      (c) Reasonable estimates of the amount.

      2.  One or more deficiency determinations may be made with respect to the amount due for one or for more than one period.

      3.  In making its determination of the amount required to be paid, the Department shall impose interest on the amount of tax determined to be due, calculated at the rate and in the manner set forth in NRS 360.417, unless a different rate of interest is specifically provided by statute.

      4.  The Department shall impose a penalty of 10 percent in addition to the amount of a determination that is made in the case of the failure of a person to file a return with the Department.

      5.  When a business is discontinued, a determination may be made at any time thereafter within the time prescribed in NRS 360.355 as to liability arising out of that business, irrespective of whether the determination is issued before the due date of the liability.

      Sec. 2.  NRS 360.489 is hereby amended to read as follows:

      360.489  1.  In determining the amount of [sales] :

      (a) Sales tax due on a sale at retail, the rate of tax used must be the sum of the rates of all taxes imposed upon sales at retail in :

             (1) The county determined pursuant to the provisions of sections 13 to 18, inclusive, of this act; or


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ê2003 Statutes of Nevada, Page 2351 (Chapter 400, AB 514)ê

 

             (2) If those provisions do not apply to the sale, the county in which the property is or will be delivered to the purchaser or his agent or designee.

      [2.  In determining the amount of use]

      (b) Use tax due on the purchase of tangible personal property for use, storage or other consumption in this state, the rate of tax used must be the sum of the rates of all taxes imposed upon the use, storage or other consumption of property in :

             (1) The county determined pursuant to the provisions of sections 13 to 18, inclusive, of this act; or

             (2) If those provisions do not apply to the purchase, the county in which the property is first used, stored or consumed.

      2.  In determining the amount of taxes due pursuant to subsection 1:

      (a) The amount due must be computed to the third decimal place and rounded to a whole cent using a method that rounds up to the next cent if the numeral in the third decimal place is greater than 4.

      (b) A retailer may compute the amount due on a transaction on the basis of each item involved in the transaction or a single invoice for the entire transaction.

      3.  On or before January 1 of each year the Department shall transmit to each retailer to whom a permit has been issued a notice which contains the provisions of subsections 1 and 2 and NRS 372.365.

      Sec. 3.  NRS 360.510 is hereby amended to read as follows:

      360.510  1.  If any person is delinquent in the payment of any tax or fee administered by the Department or if a determination has been made against him which remains unpaid, the Department may:

      (a) Not later than 3 years after the payment became delinquent or the determination became final; or

      (b) Not later than 6 years after the last recording of an abstract of judgment or of a certificate constituting a lien for tax owed,

give a notice of the delinquency and a demand to transmit personally or by registered or certified mail to any person, including, without limitation, any officer or department of this state or any political subdivision or agency of this state, who has in his possession or under his control any credits or other personal property belonging to the delinquent, or owing any debts to the delinquent or person against whom a determination has been made which remains unpaid, or owing any debts to the delinquent or that person. In the case of any state officer, department or agency, the notice must be given to the officer, department or agency before the Department presents the claim of the delinquent taxpayer to the State Controller.

      2.  A state officer, department or agency which receives such a notice may satisfy any debt owed to it by that person before it honors the notice of the Department.

      3.  After receiving the demand to transmit, the person notified by the demand may not transfer or otherwise dispose of the credits, other personal property, or debts in his possession or under his control at the time he received the notice until the Department consents to a transfer or other disposition.

      4.  Every person notified by a demand to transmit shall, within 10 days after receipt of the demand to transmit, inform the Department of, and transmit to the Department all such credits, other personal property, or debts in his possession, under his control or owing by him within the time and in the manner requested by the Department.


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ê2003 Statutes of Nevada, Page 2352 (Chapter 400, AB 514)ê

 

the manner requested by the Department. Except as otherwise provided in subsection 5, no further notice is required to be served to that person.

      5.  If the property of the delinquent taxpayer consists of a series of payments owed to him, the person who owes or controls the payments shall transmit the payments to the Department until otherwise notified by the Department. If the debt of the delinquent taxpayer is not paid within 1 year after the Department issued the original demand to transmit, the Department shall issue another demand to transmit to the person responsible for making the payments informing him to continue to transmit payments to the Department or that his duty to transmit the payments to the Department has ceased.

      6.  If the notice of the delinquency seeks to prevent the transfer or other disposition of a deposit in a bank or credit union or other credits or personal property in the possession or under the control of a bank, credit union or other depository institution, the notice must be delivered or mailed to any branch or office of the bank, credit union or other depository institution at which the deposit is carried or at which the credits or personal property is held.

      7.  If any person notified by the notice of the delinquency makes any transfer or other disposition of the property or debts required to be withheld or transmitted, to the extent of the value of the property or the amount of the debts thus transferred or paid, he is liable to the State for any indebtedness due pursuant to this chapter, or chapter 360B, 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS from the person with respect to whose obligation the notice was given if solely by reason of the transfer or other disposition the State is unable to recover the indebtedness of the person with respect to whose obligation the notice was given.

      Sec. 4.  Chapter 360B of NRS is hereby amended by adding thereto the provisions set forth as sections 5 to 24, inclusive, of this act.

      Sec. 5.  “Purchaser” means a person to whom a sale of tangible personal property is made.

      Sec. 6.  “Registered seller” means a seller registered pursuant to section 9 of this act.

      Sec. 7.  “Retail sale” means any sale, lease or rental for any purpose other than for resale, sublease or subrent.

      Sec. 8.  “Tangible personal property” means personal property which may be seen, weighed, measured, felt or touched, or which is in any other manner perceptible to the senses.

      Sec. 9.  1.  The Department shall, in cooperation with any other states that are members of the Agreement, establish and maintain a central, electronic registration system that allows a seller to register to collect and remit the sales and use taxes imposed in this state and in the other states that are members of the Agreement.

      2.  A seller who registers pursuant to this section agrees to collect and remit sales and use taxes in accordance with the provisions of this chapter, the regulations of the Department and the applicable law of each state that is a member of the Agreement, including any state that becomes a member of the Agreement after the registration of the seller pursuant to this section. The cancellation or revocation of the registration of a seller pursuant to this section, the withdrawal of a state from the Agreement or the revocation of the Agreement does not relieve a seller from liability pursuant to this subsection to remit any taxes previously or subsequently collected on behalf of a state.


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ê2003 Statutes of Nevada, Page 2353 (Chapter 400, AB 514)ê

 

pursuant to this subsection to remit any taxes previously or subsequently collected on behalf of a state.

      3.  When registering pursuant to this section, a seller may:

      (a) Elect to use a certified service provider as its agent to perform all the functions of the seller relating to sales and use taxes, other than the obligation of the seller to remit the taxes on its own purchases;

      (b) Elect to use a certified automated system to calculate the amount of sales or use taxes due on its sales transactions;

      (c) Under such conditions as the Department deems appropriate, elect to use its own proprietary automated system to calculate the amount of sales or use taxes due on its sales transactions; or

      (d) Elect to use any other method authorized by the Department for performing the functions of the seller relating to sales and use taxes.

      4.  A seller who registers pursuant to this section agrees to submit its sales and use tax returns, and to remit any sales and use taxes due, to the Department at such times and in such a manner and format as the Department prescribes by regulation.

      5.  The registration of a seller and the collection and remission of sales and use taxes pursuant to this section may not be considered as a factor in determining whether a seller has a nexus with this state for the purposes of determining his liability to pay any tax imposed by this state.

      Sec. 10.  1.  The Department shall post on a website or other Internet site that is operated or administered by or on behalf of the Department:

      (a) The rates of sales and use taxes for this state and for each local government in this state that imposes such taxes. The Department shall identify this state and each local government using the Federal Information Processing Standards developed by the National Institute of Standards and Technology.

      (b) Any change in those rates.

      (c) Any amendments to the statutory provisions and administrative regulations of this state governing the registration of sellers and the collection of sales and use taxes.

      (d) Any change in the boundaries of local governments in this state that impose sales and use taxes.

      (e) The list maintained pursuant to section 11 of this act.

      (f) Any other information the Department deems appropriate.

      2.  The Department shall make a reasonable effort to provide sellers with as much advance notice as possible of any changes or amendments required to be posted pursuant to subsection 1 and of any other changes in the information posted pursuant to subsection 1. Except as otherwise provided in section 12 of this act, the failure of the Department to provide such notice and the failure of a seller to receive such notice does not affect the obligation of the seller to collect and remit any applicable sales and use taxes.

      Sec. 11.  1.  The Department shall maintain a list that denotes for each five-digit and nine-digit zip code in this state the combined rates of sales taxes and the combined rates of use taxes imposed in the area of that zip code, and the applicable taxing jurisdictions. If the combined rate of all the sales taxes or use taxes respectively imposed within the area of a zip code is not the same for the entire area of the zip code, the Department shall denote in the list the lowest combined tax rates for the entire zip code.


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ê2003 Statutes of Nevada, Page 2354 (Chapter 400, AB 514)ê

 

      2.  If a street address does not have a nine-digit zip code or if a registered seller is unable to determine the nine-digit zip code of a purchaser after exercising due diligence to determine that information, that seller may, except as otherwise provided in subsection 3, apply the rate denoted for the five-digit zip code in the list maintained pursuant to this section. For the purposes of this subsection, there is a rebuttable presumption that a registered seller has exercised due diligence if the seller has attempted to determine the nine-digit zip code of a purchaser by using software approved by the Department which makes that determination from the street address and five-digit zip code of the purchaser.

      3.  The list maintained pursuant to this section does not apply to and must not be used for any transaction regarding which a purchased product is received by the purchaser at the business location of the seller.

      Sec. 12.  The Department shall waive any liability of a registered seller and a certified service provider acting on behalf of a registered seller who, as a result of his reasonable reliance on the information posted pursuant to section 10 of this act or his compliance with subsection 2 of section 11 of this act, collects the incorrect amount of any sales or use tax imposed in this state, for:

      1.   The amount of the sales or use tax which the registered seller and certified service provider fail to collect as a result of that reliance; and

      2.  Any penalties and interest on that amount.

      Sec. 13.  As used in sections 13 to 18, inclusive, of this act:

      1.  “Receive” means taking possession of or making the first use of tangible personal property, whichever occurs first. The term does not include possession by a shipping company on behalf of a purchaser.

      2.  “Transportation equipment” means:

      (a) Locomotives and railcars used for the carriage of persons or property in interstate commerce.

      (b) Trucks and truck-tractors having a manufacturer’s gross vehicle weight rating of more than 10,000 pounds, and trailers, semitrailers and passenger buses that are:

             (1) Registered pursuant to the International Registration Plan, as adopted by the Department of Motor Vehicles pursuant to NRS 706.826; or

             (2) Operated under the authority of a carrier who is authorized by the Federal Government to engage in the carriage of persons or property in interstate commerce.

      (c) Aircraft operated by an air carrier who is authorized by the Federal Government or a foreign government to engage in the carriage of persons or property in interstate or foreign commerce.

      (d) Containers designed for use on and component parts attached or secured to any of the items described in paragraph (a), (b) or (c).

      Sec. 14.  1.  Except as otherwise provided in this section, for the purpose of determining the liability of a seller for sales and use taxes, a retail sale shall be deemed to take place at the location determined pursuant to sections 13 to 18, inclusive, of this act.

      2.  Sections 13 to 18, inclusive, of this act do not:

      (a) Affect any liability of a purchaser or lessee for a use tax.

      (b) Apply to:

             (1) The retail sale or transfer of watercraft, modular homes, manufactured homes or mobile homes.


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ê2003 Statutes of Nevada, Page 2355 (Chapter 400, AB 514)ê

 

             (2) The retail sale, other than the lease or rental, of motor vehicles, trailers, semitrailers or aircraft that do not constitute transportation equipment.

      Sec. 15.  Except as otherwise provided in sections 13 to 18, inclusive, of this act, the retail sale, excluding the lease or rental, of tangible personal property shall be deemed to take place:

      1.  If the property is received by the purchaser at a place of business of the seller, at that place of business.

      2.  If the property is not received by the purchaser at a place of business of the seller:

      (a) At the location indicated to the seller pursuant to any instructions provided for the delivery of the property to the purchaser or to another recipient who is designated by the purchaser as his donee; or

      (b) If no such instructions are provided and if known by the seller, at the location where the purchaser or another recipient who is designated by the purchaser as his donee, receives the property.

      3.  If subsections 1 and 2 do not apply, at the address of the purchaser indicated in the business records of the seller that are maintained in the ordinary course of the seller’s business, unless the use of that address would constitute bad faith.

      4.  If subsections 1, 2 and 3 do not apply, at the address of the purchaser obtained during the consummation of the sale, including, if no other address is available, the address of the purchaser’s instrument of payment, unless the use of an address pursuant to this subsection would constitute bad faith.

      5.  In all other circumstances, at the address from which the property was shipped or, if it was delivered electronically, at the address from which it was first available for transmission by the seller.

      Sec. 16.  1.  Except as otherwise provided in this section and sections 14, 17 and 18 of this act, the lease or rental of tangible personal property shall be deemed to take place as follows:

      (a) If the lease or rental requires recurring periodic payments, for the purposes of:

             (1) The first periodic payment, the location of the lease or rental shall be deemed to take place at the location determined pursuant to section 15 of this act; and

             (2) Subsequent periodic payments, the location of the lease or rental shall be deemed to take place at the primary location of the property. For the purposes of this subparagraph, the primary location of the property shall be deemed to be the address for the property provided by the lessee and set forth in the records maintained by the lessor in the ordinary course of business, regardless of the intermittent use of the property at different locations, unless the use of that address would constitute bad faith.

      (b) If the lease or rental does not require recurring periodic payments, the location of the lease or rental shall be deemed to take place at the location determined pursuant to section 15 of this act.

      2.  This section does not apply to the determination of any liability of a seller for any sales or use taxes imposed on:

      (a) The acquisition of tangible personal property for lease; or

      (b) Any accelerated or lump-sum payments made pursuant to a lease or rental of tangible personal property.


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ê2003 Statutes of Nevada, Page 2356 (Chapter 400, AB 514)ê

 

      Sec. 17.  1.  Except as otherwise provided in this section and section 14 of this act, the lease or rental of motor vehicles, trailers, semitrailers or aircraft that do not constitute transportation equipment shall be deemed to take place:

      (a) If the lease or rental requires recurring periodic payments, at the primary location of the property. For the purposes of this paragraph, the primary location of the property shall be deemed to be the address for the property provided by the lessee and set forth in the records maintained by the lessor in the ordinary course of business, regardless of the intermittent use of the property at different locations, unless the use of that address would constitute bad faith.

      (b) If the lease or rental does not require recurring periodic payments, at the location determined pursuant to section 15 of this act.

      2.  This section does not apply to the determination of any liability of a seller for any sales or use taxes imposed on:

      (a) The acquisition of tangible personal property for lease; or

      (b) Any accelerated or lump-sum payments made pursuant to a lease or rental of tangible personal property.

      Sec. 18.  Except as otherwise provided in section 14 of this act, the lease or rental of transportation equipment shall be deemed to take place at the location determined pursuant to section 15 of this act.

      Sec. 19.  1.  A purchaser may purchase tangible personal property without paying to the seller at the time of purchase the sales and use taxes that are due thereon if:

      (a) The seller does not maintain a place of business in this state; and

      (b) The purchaser has obtained a direct pay permit pursuant to the provisions of this section.

      2.  A purchaser who wishes to obtain a direct pay permit must file with the Department an application for such a permit that:

      (a) Is on a form prescribed by the Department; and

      (b) Sets forth such information as is required by the Department.

      3.  The application must be signed by:

      (a) The owner if he is a natural person;

      (b) A member or partner if the seller is an association or partnership; or

      (c) An executive officer or some other person specifically authorized to sign the application if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      4.  Any purchaser who obtains a direct pay permit pursuant to this section shall:

      (a) Determine the amount of sales and use taxes that are due and payable to this state or a local government of this state upon the purchase of tangible personal property from such a seller; and

      (b) Report and pay those taxes to the appropriate authority.

      5.  If a purchaser who has obtained a direct pay permit purchases tangible personal property that will be available for use digitally or electronically in more than one jurisdiction, he may, to determine the amount of tax that is due to this state or to a local government of this state, use any reasonable, consistent and uniform method to apportion the use of the property among the various jurisdictions in which it will be used that is supported by the purchaser’s business records as they exist at the time of the consummation of the sale.


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ê2003 Statutes of Nevada, Page 2357 (Chapter 400, AB 514)ê

 

      Sec. 20.  1.  A purchaser who:

      (a) Has not obtained a direct pay permit pursuant to section 19 of this act;

      (b) Purchases tangible personal property that is subject to sales and use taxes; and

      (c) Has knowledge at the time of purchase that the purchased property will be available for use digitally or electronically in more than one jurisdiction,

shall give written notice of that fact to the seller at the time of purchase. The notice must be given in a form required by the Department.

      2.  Notwithstanding the provisions of sections 13 to 18, inclusive, of this act:

      (a) Upon receipt of such a notice by a seller who does not maintain a place of business in this state, the seller is relieved of any liability to collect, pay or remit any use tax that is due and the purchaser thereafter assumes the liability to pay that tax directly to the appropriate authority.

      (b) To determine the tax due to this state or to a local government of this state:

             (1) A purchaser who delivers a notice pursuant to subsection 1 to a seller who does not maintain a place of business in this state; and

             (2) A seller who maintains a place of business in this state and receives a notice pursuant to subsection 1,

may use any reasonable, consistent and uniform method to apportion the use of the property among the various jurisdictions in which it will be used that is supported by the business records of the purchaser or seller as they exist at the time of the consummation of the sale.

      3.  Any notice given pursuant to subsection 1 applies to all future sales of property made by the seller to the purchaser, except for the sale of property that is specifically apportioned pursuant to subsection 2 or to property that will not be used in multiple jurisdictions, until the purchaser delivers a written notice of revocation to the seller.

      Sec. 21.  1.  A purchaser of direct mail must provide to the seller at the time of the purchase:

      (a) If the seller does not maintain a place of business in this state:

             (1) A form for direct mail approved by the Department;

             (2) An informational statement of the jurisdictions to which the direct mail will be delivered to recipients; or

             (3) The direct pay permit of the purchaser issued pursuant to section 19 of this act; or

      (b) If the seller maintains a place of business in this state, an informational statement of the jurisdictions to which the direct mail will be delivered to recipients.

      2.  Notwithstanding the provisions of sections 13 to 18, inclusive, of this act:

      (a) Upon the receipt pursuant to subsection 1 of:

             (1) A form for direct mail by a seller who does not maintain a place of business in this state:

                   (I) The seller is relieved of any liability for the collection, payment or remission of any sales or use taxes applicable to the purchase of direct mail by that purchaser from that seller; and

                   (II) The purchaser is liable for any sales or use taxes applicable to the purchase of direct mail by that purchaser from that seller.


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ê2003 Statutes of Nevada, Page 2358 (Chapter 400, AB 514)ê

 

Any form for direct mail provided to a seller pursuant to this subparagraph applies to all future sales of direct mail made by that seller to that purchaser until the purchaser delivers a written notice of revocation to the seller.

            (2) An informational statement by any seller, the seller shall collect, pay or remit any applicable sales and use taxes in accordance with the information contained in that statement. In the absence of bad faith, the seller is relieved of any liability to collect, pay or remit any sales and use taxes other than in accordance with that information received.

      (b) If a purchaser of direct mail does not comply with subsection 1, the seller shall determine the location of the sale pursuant to subsection 5 of section 15 of this act and collect, pay or remit any applicable sales and use taxes. This paragraph does not limit the liability of the purchaser for the payment of any of those taxes.

      3.  As used in this section, “direct mail” means printed material delivered or distributed by the United States Postal Service or another delivery service to a mass audience or to addresses contained on a mailing list provided by a purchaser or at the direction of a purchaser when the cost of the items purchased is not billed directly to the recipients. The term includes tangible personal property supplied directly or indirectly by the purchaser to the seller of the direct mail for inclusion in the package containing the printed material. The term does not include multiple items of printed material delivered to a single address.

      Sec. 22.  Notwithstanding the provisions of any other specific statute, if the boundary of a local government that has imposed a sales or use tax is changed, any change in the rate of that tax which results therefrom becomes effective on the first day of the first calendar quarter that begins at least 60 days after the effective date of the change in the boundary.

      Sec. 23.  Notwithstanding the provisions of any other specific statute, if any sales or use tax is due and payable on a Saturday, Sunday or legal holiday, the tax may be paid on the next succeeding business day.

      Sec. 24.  Any invoice, billing or other document given to a purchaser that indicates the sales price for which tangible personal property is sold must state separately any amount received by the seller for:

      1.  Services that are necessary to complete the sale, including delivery and installation charges;

      2.  The value of exempt property given to the purchaser if taxable and exempt property are sold as a single product or piece of merchandise; and

      3.  Credit given to the purchaser.

      Sec. 25.  NRS 360B.030 is hereby amended to read as follows:

      360B.030  As used in NRS 360B.010 to 360B.170, inclusive, and sections 5 to 24, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 360B.040 to 360B.100, inclusive, and sections 5 to 8, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 26.  NRS 360B.070 is hereby amended to read as follows:

      360B.070  “Sales tax” means the tax levied by section 19 of chapter 397, Statutes of Nevada 1955, at page 766, and any similar tax authorized by or pursuant to a specific statute [.] or special legislative act of this state or the laws of another state that is a member of the Agreement.


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ê2003 Statutes of Nevada, Page 2359 (Chapter 400, AB 514)ê

 

      Sec. 27.  NRS 360B.080 is hereby amended to read as follows:

      360B.080  “Seller” means any person making sales, leases or rentals of tangible personal property . [or services.]

      Sec. 28.  NRS 360B.100 is hereby amended to read as follows:

      360B.100  “Use tax” means the tax levied by section 34 of chapter 397, Statutes of Nevada 1955, at page 769, as amended by section 3 of chapter 513, Statutes of Nevada 1985, at page 1562, and any similar tax authorized by or pursuant to a specific statute [.] or special legislative act of this state or the laws of another state that is a member of the Agreement.

      Sec. 29.  NRS 360B.110 is hereby amended to read as follows:

      360B.110  The Nevada Tax Commission shall:

      1.  Except as otherwise provided in NRS 360B.120, enter into the Agreement.

      2.  Act jointly with other states that are members of the Agreement to establish standards for:

      (a) Certification of a certified service provider;

      (b) A certified automated system; [and]

      (c) Performance of multistate sellers [.] ; and

      (d) An address-based system for determining the applicable sales and use taxes.

      3.  Take all other actions reasonably required to implement the provisions of NRS 360B.010 to 360B.170, inclusive, and sections 5 to 24, inclusive, of this act, and the provisions of the Agreement, including, without limitation [:] , the:

      (a) Adoption of regulations to carry out the provisions of NRS 360B.010 to 360B.170, inclusive [;] , and sections 5 to 24, inclusive, of this act, and the provisions of the Agreement; and

      (b) Procurement, jointly with other member states, of goods and services.

      4.  Represent, or have its designee represent, the State of Nevada before the other states that are signatories to the Agreement.

      5.  Designate not more than four delegates, who may be members of the Commission, to represent the State of Nevada for the purposes of reviewing or amending the Agreement.

      Sec. 30.  NRS 361.186 is hereby amended to read as follows:

      361.186  1.  A taxpayer may collect an admission fee for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068 if the taxpayer offers to residents of the State of Nevada a discount of 50 percent from any admission fee charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.

      2.  Except as otherwise provided in subsection 5, if a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068, the exemption pertaining to that fine art for the fiscal year must be reduced by the net revenue derived by the taxpayer for that fiscal year. The exemption pertaining to fine art for a particular fiscal year must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that fiscal year.

      3.  A tax resulting from the operation of this section is due with the tax otherwise due under the taxpayer’s first statement filed pursuant to NRS 361.265 after the 15th day of the fourth month after the end of the fiscal year in which the net revenue was received or, if no such statement is required to be filed, under a statement of the net revenue filed on or before the last day of the fourth month after the end of that fiscal year.


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ê2003 Statutes of Nevada, Page 2360 (Chapter 400, AB 514)ê

 

be filed, under a statement of the net revenue filed on or before the last day of the fourth month after the end of that fiscal year.

      4.  A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the State Arts Council, the Division of Museums and History Dedicated Trust Fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:

      (a) Made the donation before the date that either statement required pursuant to subsection 3 is due; and

      (b) Provides to the county assessor documentation of the donation at the time that he files the statement required pursuant to subsection 3.

      5.  If a taxpayer qualifies for and avails himself of [both of] the exemptions from taxation provided by NRS 361.068 and 374.291 [,] and section 57.1 of chapter 397, Statutes of Nevada 1955, the reduction of the exemptions by the net revenue derived by the taxpayer, as required pursuant to subsection 2 of this section , [and] subsection 2 of NRS 374.2911 [,] and subsection 2 of section 57.2 of chapter 397, Statutes of Nevada 1955, must be carried out in such a manner that the total net revenue derived by the taxpayer is first applied to reduce the [exemption] exemptions provided pursuant to NRS 374.291 [.] and section 57.1 of chapter 397, Statutes of Nevada 1955. If the net revenue exceeds the amount of the [exemption] exemptions provided pursuant to NRS 374.291 [,] and section 57.1 of chapter 397, Statutes of Nevada 1955, the remaining net revenue must be applied to reduce the exemption provided pursuant to NRS 361.068. If the net revenue is less than or equal to the [exemption] exemptions provided pursuant to NRS 374.291 and section 57.1 of chapter 397, Statutes of Nevada 1955, for that fiscal year, the exemption provided pursuant to NRS 361.068 must not be reduced.

      6.  For the purposes of this section:

      (a) “Direct costs of owning and exhibiting the fine art” does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.

      (b) “Net revenue” means the amount of the fees collected for exhibiting the fine art during that fiscal year less the following paid or made during that fiscal year:

             (1) The direct costs of owning and exhibiting the fine art; and

             (2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of sub-subparagraph (IV) of subparagraph (1) of paragraph (b) of subsection 5 of NRS 361.068.

      Sec. 31.  NRS 361.186 is hereby amended to read as follows:

      361.186  1.  A taxpayer may collect an admission fee for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068 if the taxpayer offers to residents of the State of Nevada a discount of 50 percent from any admission fee charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.


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ê2003 Statutes of Nevada, Page 2361 (Chapter 400, AB 514)ê

 

fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.

      2.  Except as otherwise provided in subsection 5, if a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation pursuant to NRS 361.068, the exemption pertaining to that fine art for the fiscal year must be reduced by the net revenue derived by the taxpayer for that fiscal year. The exemption pertaining to fine art for a particular fiscal year must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that fiscal year.

      3.  A tax resulting from the operation of this section is due with the tax otherwise due under the taxpayer’s first statement filed pursuant to NRS 361.265 after the 15th day of the fourth month after the end of the fiscal year in which the net revenue was received or, if no such statement is required to be filed, under a statement of the net revenue filed on or before the last day of the fourth month after the end of that fiscal year.

      4.  A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the State Arts Council, the Division of Museums and History Dedicated Trust Fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:

      (a) Made the donation before the date that either statement required pursuant to subsection 3 is due; and

      (b) Provides to the county assessor documentation of the donation at the time that he files the statement required pursuant to subsection 3.

      5.  [If a taxpayer qualifies for and avails himself of both of the exemptions from taxation provided by NRS 361.068 and 374.291, the reduction of the exemptions by the net revenue derived by the taxpayer, as required pursuant to subsection 2 of this section and subsection 2 of NRS 374.2911, must be carried out in such a manner that the total net revenue derived by the taxpayer is first applied to reduce the exemption provided pursuant to NRS 374.291. If the net revenue exceeds the amount of the exemption provided pursuant to NRS 374.291, the remaining net revenue must be applied to reduce the exemption provided pursuant to NRS 361.068. If the net revenue is less than or equal to the exemption provided pursuant to NRS 374.291 for that fiscal year, the exemption provided pursuant to NRS 361.068 must not be reduced.

      6.]  For the purposes of this section:

      (a) “Direct costs of owning and exhibiting the fine art” does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.

      (b) “Net revenue” means the amount of the fees collected for exhibiting the fine art during that fiscal year less the following paid or made during that fiscal year:

             (1) The direct costs of owning and exhibiting the fine art; and

             (2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of sub-subparagraph (IV) of subparagraph (1) of paragraph (b) of subsection 5 of NRS 361.068.


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sub-subparagraph (IV) of subparagraph (1) of paragraph (b) of subsection 5 of NRS 361.068.

      Sec. 32.  Chapter 372 of NRS is hereby amended by adding thereto the provisions set forth as sections 33 to 36, inclusive, of this act.

      Sec. 33.  This chapter must be administered in accordance with the provisions of chapter 360B of NRS.

      Sec. 34.  In determining the amount of taxes due pursuant to this chapter:

      1.  The amount due must be computed to the third decimal place and rounded to a whole cent using a method that rounds up to the next cent if the numeral in the third decimal place is greater than 4.

      2.  A retailer may compute the amount due on a transaction on the basis of each item involved in the transaction or a single invoice for the entire transaction.

      Sec. 35.  1.  If a purchaser wishes to claim an exemption from the taxes imposed by this chapter, the retailer shall obtain such identifying information from the purchaser at the time of sale as is required by the Department.

      2.  The Department shall, to the extent feasible, establish an electronic system for submitting a request for an exemption. A purchaser is not required to provide a signature to claim an exemption if the request is submitted electronically.

      3.  The Department may establish a system whereby a purchaser who is exempt from the payment of the taxes imposed by this chapter is issued an identification number that can be presented to the retailer at the time of sale.

      4.  A retailer shall maintain such records of exempt transactions as are required by the Department.

      5.  Except as otherwise provided in this subsection, a retailer who complies with the provisions of this section is not liable for the payment of any tax imposed by this chapter if the purchaser improperly claims an exemption. If the purchaser improperly claims an exemption, the purchaser is liable for the payment of the tax. The provisions of this subsection do not apply if the retailer fraudulently fails to collect the tax or solicits a purchaser to participate in an unlawful claim of an exemption.

      Sec. 36.  1.  If a retailer is unable to collect all or part of the sales price of a sale, he is entitled to receive a deduction from his taxable sales for that bad debt.

      2.  Any deduction that is claimed pursuant to this section may not include interest.

      3.  The amount of any deduction claimed must equal the amount of a deduction that may be claimed pursuant to 26 U.S.C. § 166 for that sale minus:

      (a) Any finance charge or interest charged as part of the sale;

      (b) Any sales or use tax charged on the sales price;

      (c) Any amount not paid on the sales price because the tangible personal property that was sold has remained in the possession of the retailer until the full sales price is paid;

      (d) Any expense incurred in attempting to collect the bad debt; and

      (e) The value of any property sold that has been repossessed by the retailer.


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      4.  A bad debt may be claimed as a deduction on the return that covers the period during which the bad debt is written off in the business records of the retailer that are maintained in the ordinary course of the retailer’s business and is eligible to be claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the retailer is not required to file a federal income tax return, would be eligible to be claimed as a deduction pursuant to 26 U.S.C. § 166.

      5.  If a bad debt for which a deduction has been claimed is subsequently collected in whole or in part, the tax on the amount so collected must be reported on the return that covers the period in which the collection is made.

      6.  If the amount of the bad debt is greater than the amount of the taxable sales reported for the period during which the bad debt is claimed as a deduction, a claim for a refund may be filed pursuant to NRS 372.630 to 372.720, inclusive, except that the time within which the claim may be filed begins on the date on which the return that included the deduction was filed.

      7.  If the retailer has contracted with a certified service provider for the remittance of the tax due under this chapter, the service provider may, on behalf of the retailer, claim any deduction to which the retailer is entitled pursuant to this section. The service provider shall credit or refund the full amount of any deduction or refund received pursuant to this section to the retailer.

      8.  For the purposes of reporting a payment received on a bad debt for which a deduction has been claimed, the payment must first be applied to the sales price of the property sold and the tax due thereon, and then to any interest, service charge or other charge that was charged as part of the sale.

      9.  If the records of a retailer indicate that a bad debt may be allocated among other states that are members of the Streamlined Sales and Use Tax Agreement, the retailer may allocate the bad debt among those states.

      10.  Except as otherwise provided in subsection 11, upon determining that a retailer has filed a return which contains one or more violations of the provisions of this section, the Department shall:

      (a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

      (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the deduction claimed or $1,000, whichever is less.

      (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the deduction claimed or $3,000, whichever is less.

      11.  For the purposes of subsection 10, if the first violation of this section by any retailer was determined by the Department through an audit which covered more than one return of the retailer, the Department shall treat all returns which were determined through the same audit to contain a violation or violations in the manner provided in paragraph (a) of subsection 10.

      12.  As used in this section:

      (a) “Bad debt” means a debt that may be deducted pursuant to 26 U.S.C. § 166.


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      (b) “Certified service provider” has the meaning ascribed to it in NRS 360B.060.

      Sec. 37.  NRS 372.123 is hereby amended to read as follows:

      372.123  1.  If the State or a political subdivision of the State enters into a contract pursuant to chapter 332 or 333 of NRS on or after June 5, 2001, with a person who:

      (a) Sells tangible personal property in this state; and

      (b) Has not obtained a permit pursuant to NRS 372.125 [because he does not maintain a place of business within this state,] or registered pursuant to section 9 of this act,

the contract must include a provision requiring the person to obtain a permit pursuant to NRS 372.125 or to register pursuant to section 9 of this act, and to [agree to] collect and pay the taxes imposed pursuant to this chapter on the sale of tangible personal property in this state. For the purposes of [the] a permit obtained pursuant to NRS 372.125, the person shall be deemed to have a single place of business in this state.

      2.  The Department may require a state agency or local government to submit such documentation as is necessary to ensure compliance with this section.

      Sec. 38.  NRS 372.125 is hereby amended to read as follows:

      372.125  1.  Every person desiring to engage in or conduct business as a seller within this state must register with the Department pursuant to section 9 of this act or file with the Department an application for a permit for each place of business.

      2.  Every application for a permit must:

      (a) Be made upon a form prescribed by the Department.

      (b) Set forth the name under which the applicant transacts or intends to transact business and the location of his place or places of business.

      (c) Set forth other information which the Department may require.

      3.  The application must be signed by [the] :

      (a) The owner if he is a natural person; [in the case of an association or partnership, by a]

      (b) A member or partner [; in the case of a corporation, by an] if the seller is an association or partnership; or

      (c) An executive officer or some person specifically authorized [by the corporation] to sign the application [, to which must be attached the written evidence of his authority.] if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      Sec. 39.  NRS 372.125 is hereby amended to read as follows:

      372.125  1.  Every person desiring to engage in or conduct business as a seller within this state must register with the Department pursuant to section 9 of this act or file with the Department an application for a permit for each place of business [.] , unless he intends to sell vehicles and will make fewer than three retail sales of vehicles during any 12-month period.

      2.  Every application for a permit must:

      (a) Be made upon a form prescribed by the Department.

      (b) Set forth the name under which the applicant transacts or intends to transact business and the location of his place or places of business.

      (c) Set forth other information which the Department may require.

      3.  The application must be signed by:

      (a) The owner if he is a natural person;

      (b) A member or partner if the seller is an association or partnership; or


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      (c) An executive officer or some person specifically authorized to sign the application if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      Sec. 40.  NRS 372.160 is hereby amended to read as follows:

      372.160  A resale certificate relieves the seller from the burden of proof only if taken in good faith from a person who [is] :

      1.  Is engaged in the business of selling tangible personal property [and who holds the permit provided for in NRS 372.125 to 372.180, inclusive, and who, at] ;

      2.  Is registered pursuant to section 9 of this act or holds a permit issued pursuant to NRS 372.135; and

      3.  At the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

      Sec. 41.  NRS 372.165 is hereby amended to read as follows:

      372.165  1.  [The] A resale certificate must:

      (a) Be signed by and bear the name and address of the purchaser.

      (b) Indicate that the purchaser is registered pursuant to section 9 of this act or contain the number of the permit issued to the purchaser [.] pursuant to NRS 372.135.

      (c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

      2.  The certificate must be substantially in such form as the Department may prescribe.

      Sec. 42.  NRS 372.230 is hereby amended to read as follows:

      372.230  A resale certificate relieves the person selling the property from the burden of proof only if taken in good faith from a person who [is] :

      1.  Is engaged in the business of selling tangible personal property [and who holds the permit provided for by NRS 372.125 to 372.180, inclusive, and who, at] ;

      2.  Is registered pursuant to section 9 of this act or holds a permit issued pursuant to NRS 372.135; and

      3.  At the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

      Sec. 43.  NRS 372.235 is hereby amended to read as follows:

      372.235  1.  [The] A resale certificate must:

      (a) Be signed and bear the name and address of the purchaser.

      (b) Indicate that the purchaser is registered pursuant to section 9 of this act or contain the number of the permit issued to the purchaser [.] pursuant to NRS 372.135.

      (c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

      2.  The certificate must be substantially in such form as the Department may prescribe.

      Sec. 44.  NRS 372.355 is hereby amended to read as follows:

      372.355  Except as otherwise provided in NRS 372.380 [,] or required by the Department pursuant to section 9 of this act, the taxes imposed by this chapter are payable to the Department monthly on or before the last day of the month next succeeding each month.


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      Sec. 45.  NRS 372.360 is hereby amended to read as follows:

      372.360  Except as otherwise required by the Department pursuant to section 9 of this act:

      1.  On or before the last day of the month following each reporting period, a return for the preceding period must be filed with the Department in such form as the Department may prescribe. Any return required to be filed by this section must be combined with any return required to be filed pursuant to the provisions of chapter 374 of NRS.

      2.  For purposes of [the] :

      (a) The sales tax a return must be filed by each seller. [For purposes of the]

      (b) The use tax a return must be filed by each retailer maintaining a place of business in the state and by each person purchasing tangible personal property, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due . [to a retailer required to collect the tax.]

      3.  Returns must be signed by the person required to file the return or by his authorized agent but need not be verified by oath.

      Sec. 46.  NRS 372.365 is hereby amended to read as follows:

      372.365  1.  Except as otherwise required by the Department pursuant to section 9 of this act or provided in sections 13 to 18, inclusive, of this act:

      (a) For the purposes of the sales tax:

      [(a)] (1) The return must show the gross receipts of the seller during the preceding reporting period.

      [(b)] (2) The gross receipts must be segregated and reported separately for each county to which a sale of tangible personal property pertains.

      [(c)] (3) A sale pertains to the county in this state in which the tangible personal property is or will be delivered to the purchaser or his agent or designee.

      [2.] (b) For purposes of the use tax:

      [(a)] (1) In the case of a return filed by a retailer, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which property became subject to the use tax during the preceding reporting period.

      [(b)] (2) The sales price must be segregated and reported separately for each county to which a purchase of tangible personal property pertains.

      [(c)] (3) If the property was [brought] :

                   (I) Brought into this state by the purchaser or his agent or designee, the sale pertains to the county in this state in which the property is or will be first used, stored or otherwise consumed. [Otherwise,]

                   (II) Not brought into this state by the purchaser or his agent or designee, the sale pertains to the county in this state in which the property was delivered to the purchaser or his agent or designee.

      [3.] 2.  In case of a return filed by a purchaser, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which became subject to the use tax during the preceding reporting period and indicate the county in this state in which the property was first used, stored or consumed.

      [4.] 3.  The return must also show the amount of the taxes for the period covered by the return and such other information as the Department deems necessary for the proper administration of this chapter.


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      [5.  If a retailer:

      (a) Is unable to collect all or part of the sales price of a sale, the amount of which was included in the gross receipts reported for a previous reporting period; and

      (b) Has taken a deduction on his federal income tax return pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to collect,

he is entitled to receive a credit for the amount of sales tax paid on account of that uncollected sales price. The credit may be used against the amount of sales tax that the retailer is subsequently required to pay pursuant to this chapter.

      6.  If the Internal Revenue Service of the Department of the Treasury disallows a deduction described in paragraph (b) of subsection 5 and the retailer claimed a credit on a return for a previous reporting period pursuant to subsection 5, the retailer shall include the amount of that credit in the amount of taxes reported pursuant to subsection 4 in the first return filed with the Department after the deduction is disallowed.

      7.  If a retailer collects all or part of the sales price for which he claimed a credit on a return for a previous reporting period pursuant to subsection 5, he shall include:

      (a) The amount collected in the gross receipts reported pursuant to paragraph (a) of subsection 1; and

      (b) The sales tax payable on the amount collected in the amount of taxes reported pursuant to subsection 4,

in the first return filed with the Department after that collection.

      8.] 4.  Except as otherwise provided in subsection [9,] 5, upon determining that a retailer has filed a return which contains one or more violations of the provisions of this section, the Department shall:

      (a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

      (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the tax which was not reported or was reported for the wrong county or $1,000, whichever is less.

      (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the tax which was not reported or was reported for the wrong county or $3,000, whichever is less.

      [9.] 5. For the purposes of subsection [8,] 4, if the first violation of this section by any retailer was determined by the Department through an audit which covered more than one return of the retailer, the Department shall treat all returns which were determined through the same audit to contain a violation or violations in the manner provided in paragraph (a) of subsection [8.] 4.

      Sec. 47.  NRS 372.370 is hereby amended to read as follows:

      372.370  [The]

      1.  Except as otherwise provided in subsection 2, a taxpayer shall deduct and withhold from the taxes otherwise due from him 1.25 percent of it to reimburse himself for the cost of collecting the tax.

      2.  The regulations adopted by the Department pursuant to NRS 360B.110 may authorize the deduction and withholding from the taxes otherwise due from a taxpayer such other amounts as are required to carry out the Streamlined Sales and Use Tax Agreement.


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otherwise due from a taxpayer such other amounts as are required to carry out the Streamlined Sales and Use Tax Agreement.

      Sec. 48.  NRS 372.375 is hereby amended to read as follows:

      372.375  [The]

      1.  Except as otherwise required by the Department pursuant to section 9 of this act, the person required to file [the] a return shall deliver the return together with a remittance of the amount of the tax due to the Department.

      2.  The Department shall provide for the acceptance of credit cards, debit cards or electronic transfers of money for the payment of the tax due in the manner prescribed in NRS 353.1465.

      Sec. 49.  NRS 372.380 is hereby amended to read as follows:

      372.380  1.  [The] Except as otherwise provided in subsection 2 or required by the Department pursuant to section 9 of this act, the reporting and payment period of a taxpayer whose taxable sales do not exceed $10,000 per month is a calendar quarter.

      2.  The Department, if it deems this action necessary in order to insure payment to or facilitate the collection by the State of the amount of taxes, may require returns and payment of the amount of taxes for periods other than calendar months or quarters, depending upon the principal place of business of the seller, retailer or purchaser, as the case may be, or for other than monthly or quarterly periods.

      Sec. 50.  NRS 372.635 is hereby amended to read as follows:

      372.635  Except as otherwise provided in NRS 360.235 and 360.395 [:] and section 36 of this act:

      1.  No refund may be allowed unless a claim for it is filed with the Department within 3 years after the last day of the month following the close of the period for which the overpayment was made.

      2.  No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period, or unless the credit relates to a period for which a waiver is given pursuant to NRS 360.355.

      Sec. 51.  NRS 372.7263 is hereby amended to read as follows:

      372.7263  1.  In administering the provisions of NRS 372.335, the Department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include:

      [1.] (a) The sale of a vehicle to a nonresident to whom a special movement permit has been issued by the Department of Motor Vehicles pursuant to subsection 1 of NRS 482.3955; and

      [2.] (b) The sale of farm machinery and equipment [, as defined in NRS 374.286,] to a nonresident who submits proof to the vendor that the farm machinery and equipment will be delivered out of state not later than 15 days after the sale.

      2.  As used in this section:

      (a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

      (b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment. The term does not include:


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             (1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

             (2) Machinery or equipment only incidentally employed for the agricultural use of real property.

      (c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

      (d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

      Sec. 52.  NRS 372.740 is hereby amended to read as follows:

      372.740  1.  The Department, or any person authorized in writing by it, may examine the books, papers, records and equipment of any person selling tangible personal property and any person liable for the use tax and may investigate the character of the business of the person to verify the accuracy of any return made, or, if no return is made by the person, to ascertain and determine the amount required to be paid.

      2.  Any person selling or purchasing tangible personal property in this state who [is] :

      (a) Is required to [obtain] :

             (1) Obtain a permit pursuant to NRS 372.125 or register pursuant to section 9 of this act; or [to file]

             (2) File a return pursuant to subsection 2 of NRS 372.360 [, and who keeps] ; and

      (b) Keeps outside of this state his records, receipts, invoices and other documents relating to sales he has made or the use tax due this state,

shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the state for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he is absent from his regular place of employment to examine those documents.

      Sec. 53.  Chapter 374 of NRS is hereby amended by adding thereto the provisions set forth as sections 54 to 57, inclusive, of this act.

      Sec. 54.  This chapter must be administered in accordance with the provisions of chapter 360B of NRS.

      Sec. 55.  In determining the amount of taxes due pursuant to this chapter:

      1.  The amount due must be computed to the third decimal place and rounded to a whole cent using a method that rounds up to the next cent if the numeral in the third decimal place is greater than 4.

      2.  A retailer may compute the amount due on a transaction on the basis of each item involved in the transaction or a single invoice for the entire transaction.

      Sec. 56.  1.  If a purchaser wishes to claim an exemption from the taxes imposed by this chapter, the retailer shall obtain such identifying information from the purchaser at the time of sale as is required by the Department.

      2.  The Department shall, to the extent feasible, establish an electronic system for submitting a request for an exemption. A purchaser is not required to provide a signature to claim an exemption if the request is submitted electronically.


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required to provide a signature to claim an exemption if the request is submitted electronically.

      3.  The Department may establish a system whereby a purchaser who is exempt from the payment of the taxes imposed by this chapter is issued an identification number that can be presented to the retailer at the time of sale.

      4.  A retailer shall maintain such records of exempt transactions as are required by the Department.

      5.  Except as otherwise provided in this subsection, a retailer who complies with the provisions of this section is not liable for the payment of any tax imposed by this chapter if the purchaser improperly claims an exemption. If the purchaser improperly claims an exemption, the purchaser is liable for the payment of the tax. The provisions of this subsection do not apply if the retailer fraudulently fails to collect the tax or solicits a purchaser to participate in an unlawful claim of an exemption.

      Sec. 57.  1.  If a retailer is unable to collect all or part of the sales price of a sale, he is entitled to receive a deduction from his taxable sales for that bad debt.

      2.  Any deduction that is claimed pursuant to this section may not include interest.

      3.  The amount of any deduction claimed must equal the amount of a deduction that may be claimed pursuant to 26 U.S.C. § 166 for that sale minus:

      (a) Any finance charge or interest charged as part of the sale;

      (b) Any sales or use tax charged on the sales price;

      (c) Any amount not paid on the sales price because the tangible personal property that was sold has remained in the possession of the retailer until the full sales price is paid;

      (d) Any expense incurred in attempting to collect the bad debt; and

      (e) The value of any property sold that has been repossessed by the retailer.

      4.  A bad debt may be claimed as a deduction on the return that covers the period during which the bad debt is written off in the business records of the retailer that are maintained in the ordinary course of the retailer’s business and is eligible to be claimed as a deduction pursuant to 26 U.S.C. § 166 or, if the retailer is not required to file a federal income tax return, would be eligible to be claimed as a deduction pursuant to 26 U.S.C. § 166.

      5.  If a bad debt for which a deduction has been claimed is subsequently collected in whole or in part, the tax on the amount so collected must be reported on the return that covers the period in which the collection is made.

      6.  If the amount of the bad debt is greater than the amount of the taxable sales reported for the period during which the bad debt is claimed as a deduction, a claim for a refund may be filed pursuant to NRS 374.635 to 374.720, inclusive, except that the time within which the claim may be filed begins on the date on which the return that included the deduction was filed.

      7.  If the retailer has contracted with a certified service provider for the remittance of the tax due under this chapter, the service provider may, on behalf of the retailer, claim any deduction to which the retailer is entitled pursuant to this section. The service provider shall credit or refund the full amount of any deduction or refund received pursuant to this section to the retailer.


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the full amount of any deduction or refund received pursuant to this section to the retailer.

      8.  For the purposes of reporting a payment received on a bad debt for which a deduction has been claimed, the payment must first be applied to the sales price of the property sold and the tax due thereon, and then to any interest, service charge or other charge that was charged as part of the sale.

      9.  If the records of a retailer indicate that a bad debt may be allocated among other states that are members of the Streamlined Sales and Use Tax Agreement, the retailer may allocate the bad debt among those states.

      10.  Except as otherwise provided in subsection 11, upon determining that a retailer has filed a return which contains one or more violations of the provisions of this section, the Department shall:

      (a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

      (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the deduction claimed or $1,000, whichever is less.

      (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the deduction claimed or $3,000, whichever is less.

      11.  For the purposes of subsection 10, if the first violation of this section by any retailer was determined by the Department through an audit which covered more than one return of the retailer, the Department shall treat all returns which were determined through the same audit to contain a violation or violations in the manner provided in paragraph (a) of subsection 10.

      12.  As used in this section:

      (a) “Bad debt” means a debt that may be deducted pursuant to 26 U.S.C. § 166.

      (b) “Certified service provider” has the meaning ascribed to it in NRS 360B.060.

      Sec. 58.  NRS 374.020 is hereby amended to read as follows:

      374.020  Except where the context otherwise requires, the definitions given in NRS 374.025 to [374.107,] 374.100, inclusive, govern the construction of this chapter.

      Sec. 59.  NRS 374.030 is hereby amended to read as follows:

      374.030  1.  “Gross receipts” means the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:

      (a) The cost of the property sold. However, in accordance with such rules and regulations as the Department may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his vendor for tax which the vendor is required to pay to the county or has paid the use tax with respect to the property, and has resold the property before making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.


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      (b) The cost of the materials used, labor or service cost, interest paid, losses or any other expense.

      (c) The cost of transportation of the property before its sale to the purchaser.

      2.  The total amount of the sale or lease or rental price includes all of the following:

      (a) Any services that are a part of the sale.

      (b) All receipts, cash, credits and property of any kind.

      (c) Any amount for which credit is allowed by the seller to the purchaser.

      3.  “Gross receipts” does not include any of the following:

      (a) Cash discounts allowed and taken on sales.

      (b) The sale price of property returned by customers when the full sale price is refunded either in cash or credit, but this exclusion does not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

      (c) The price received for labor or services used in installing or applying the property sold.

      (d) The amount of any tax, not including any manufacturers’ or importers’ excise tax, imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

      [(e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.]

      4.  For purposes of the sales tax, if the retailers establish to the satisfaction of the Department that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed.

      Sec. 60.  NRS 374.040 is hereby amended to read as follows:

      374.040  1.  “Occasional sale ” [,” except as otherwise provided in subsection 2,] includes:

      (a) A sale of property not held or used by a seller in the course of an activity for which he is required to hold a seller’s permit, provided such sale is not one of a series of sales sufficient in number, scope and character to constitute an activity requiring the holding of a seller’s permit.

      (b) Any transfer of all or substantially all the property held or used by a person in the course of such an activity when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer.

      2.  [The term does not include the sale of a vehicle other than the sale or transfer of a used vehicle to the seller’s spouse, child, grandchild, parent, grandparent, brother or sister. For the purposes of this section, the relation of parent and child includes adoptive and illegitimate children and stepchildren.

      3.]  For the purposes of this section, stockholders, bondholders, partners or other persons holding an interest in a corporation or other entity are regarded as having the “real or ultimate ownership” of the property of such corporation or other entity.

      Sec. 61.  NRS 374.055 is hereby amended to read as follows:

      374.055  1.  “Retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business of tangible personal property. [The terms do not include a sale of property that:


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      (a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of NRS 374.291;

      (b) Is made available for sale within 2 years after it is acquired; and

      (c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.]

      2.  The delivery in a county of tangible personal property by an owner or former owner thereof or by a factor, or agent of such owner, former owner or factor, if the delivery is to a consumer or person for redelivery to a consumer, pursuant to a retail sale made by a retailer not engaged in business in the county, is a retail sale in the county by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

      Sec. 62.  NRS 374.060 is hereby amended to read as follows:

      374.060  1.  “Retailer” includes:

      (a) Every seller who makes any retail sale or sales of tangible personal property, and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.

      (b) Every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption.

      (c) Every person making any retail sale of a vehicle or more than two retail sales of other tangible personal property during any 12‑month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.

      2.  When the Department determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the Department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

      3.  A licensed optometrist or physician is a consumer of, and shall not be considered, a retailer within the provisions of this chapter, with respect to the ophthalmic materials used or furnished by him in the performance of his professional services in the diagnosis, treatment or correction of conditions of the human eye, including the adaptation of lenses or frames for the aid thereof.

      Sec. 63.  NRS 374.060 is hereby amended to read as follows:

      374.060  1.  “Retailer” includes:

      (a) Every seller who makes any retail sale or sales of tangible personal property, and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.

      (b) Every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption.

      (c) Every person making [any retail sale of a vehicle or] more than two retail sales of other tangible personal property during any 12‑month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.


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including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.

      2.  When the Department determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the Department may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

      Sec. 64.  NRS 374.070 is hereby amended to read as follows:

      374.070  1.  “Sales price” means the total amount for which tangible property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

      (a) The cost of the property sold.

      (b) The cost of the materials used, labor or service cost, interest charged, losses, or any other expenses.

      (c) The cost of transportation of the property before its purchase.

      2.  The total amount for which property is sold includes all of the following:

      (a) Any services that are a part of the sale.

      (b) Any amount for which credit is given to the purchaser by the seller.

      3.  “Sales price” does not include any of the following:

      (a) Cash discounts allowed and taken on sales.

      (b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit; but this exclusion does not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

      (c) The amount charged for labor or services rendered in installing or applying the property sold.

      (d) The amount of any tax , [(] not including [, however,] any manufacturers’ or importers’ excise tax , [)] imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.

      (e) The amount of any tax imposed by the State of Nevada upon or with respect to the storage, use or other consumption of tangible personal property purchased from any retailer.

      [(f) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.

      4.  For the purpose of a sale of a vehicle by a seller who is not required to be registered with the Department of Taxation, the sales price is the value established in the manner set forth in NRS 374.112.]

      Sec. 65.  NRS 374.085 is hereby amended to read as follows:

      374.085  “Storage, use or other consumption” does not include [:

      1.  The] the keeping, retaining or exercising any right or power over tangible personal property for the purpose of subsequently transporting it outside the State for use thereafter solely outside the State, or for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into, other tangible personal property to be transported outside the State and thereafter used solely outside the State .


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incorporated into, other tangible personal property to be transported outside the State and thereafter used solely outside the State . [; or

      2.  The keeping, retaining or exercising any right or power over tangible property that:

      (a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of NRS 374.291;

      (b) Is made available for sale within 2 years after it is acquired; and

      (c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.]

      Sec. 66.  NRS 374.128 is hereby amended to read as follows:

      374.128  1.  If the State or a political subdivision of the State enters into a contract pursuant to chapter 332 or 333 of NRS on or after June 5, 2001, with a person who:

      (a) Sells tangible personal property in this state; and

      (b) Has not obtained a permit pursuant to NRS 374.130 [because he does not maintain a place of business within this state,] or registered pursuant to section 9 of this act,

the contract must include a provision requiring the person to obtain a permit pursuant to NRS 374.130 or to register pursuant to section 9 of this act, and to [agree to] collect and pay the taxes imposed pursuant to this chapter on the sale of tangible personal property in any county in this state. For the purposes of [the] a permit obtained pursuant to NRS 374.130, the person shall be deemed to have a place of business in each county in this state, but shall pay the fee for a single permit.

      2.  The Department may require a state agency or local government to submit such documentation as is necessary to ensure compliance with this section.

      Sec. 67.  NRS 374.130 is hereby amended to read as follows:

      374.130  1.  Every person desiring to engage in or conduct business as a seller within a county shall register with the Department pursuant to section 9 of this act or file with the Department an application for a permit for each place of business, unless he intends to sell vehicles and will make fewer than three retail sales of vehicles during any 12-month period.

      2.  Every application for a permit must:

      (a) Be made upon a form prescribed by the Department.

      (b) Set forth the name under which the applicant transacts or intends to transact business and the location of his place or places of business.

      (c) Set forth such other information as the Department may require.

      3.  The application must be signed by [the] :

      (a) The owner if he is a natural person; [in the case of an association or partnership, by a]

      (b) A member or partner [; in the case of a corporation, by an] if the seller is an association or partnership; or

      (c) An executive officer or some person specifically authorized [by the corporation] to sign the application [, to which must be attached the written evidence of his authority.] if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      Sec. 68.  NRS 374.130 is hereby amended to read as follows:

      374.130  1.  Every person desiring to engage in or conduct business as a seller within a county shall register with the Department pursuant to section 9 of this act or file with the Department an application for a permit for each place of business .


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9 of this act or file with the Department an application for a permit for each place of business . [, unless he intends to sell vehicles and will make fewer than three retail sales of vehicles during any 12-month period.]

      2.  Every application for a permit must:

      (a) Be made upon a form prescribed by the Department.

      (b) Set forth the name under which the applicant transacts or intends to transact business and the location of his place or places of business.

      (c) Set forth such other information as the Department may require.

      3.  The application must be signed by:

      (a) The owner if he is a natural person;

      (b) A member or partner if the seller is an association or partnership; or

      (c) An executive officer or some person specifically authorized to sign the application if the seller is a corporation. Written evidence of the signer’s authority must be attached to the application.

      Sec. 69.  NRS 374.165 is hereby amended to read as follows:

      374.165  [The] A resale certificate relieves the seller from the burden of proof only if taken in good faith from a person who [is] :

      1.  Is engaged in the business of selling tangible personal property [and who holds the permit provided for in NRS 374.130 to 374.185, inclusive, and who, at] ;

      2.  Is registered pursuant to section 9 of this act or holds a permit issued pursuant to NRS 374.140; and

      3.  At the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

      Sec. 70.  NRS 374.170 is hereby amended to read as follows:

      374.170  1.  [The certificate shall:] A resale certificate must:

      (a) Be signed by and bear the name and address of the purchaser.

      (b) Indicate that the purchaser is registered pursuant to section 9 of this act or contain the number of the permit issued to the purchaser [.] pursuant to NRS 374.140.

      (c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

      2.  The certificate [shall] must be substantially in such form as the Department may prescribe.

      Sec. 71.  NRS 374.235 is hereby amended to read as follows:

      374.235  [The] A resale certificate relieves the person selling the property from the burden of proof only if taken in good faith from a person who [is] :

      1.  Is engaged in the business of selling tangible personal property [and who holds the permit provided for by NRS 374.130 to 374.185, inclusive, and who, at] ;

      2.  Is registered pursuant to section 9 of this act or holds a permit issued pursuant to NRS 374.140; and

      3.  At the time of purchasing the tangible personal property, intends to sell it in the regular course of business or is unable to ascertain at the time of purchase whether the property will be sold or will be used for some other purpose.

      Sec. 72.  NRS 374.240 is hereby amended to read as follows:

      374.240  1.  [The certificate shall:] A resale certificate must:

      (a) Be signed and bear the name and address of the purchaser.


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      (b) Indicate that the purchaser is registered pursuant to section 9 of this act or contain the number of the permit issued to the purchaser [.] pursuant to NRS 374.140.

      (c) Indicate the general character of the tangible personal property sold by the purchaser in the regular course of business.

      2.  The certificate [shall] must be substantially in such form as the Department may prescribe.

      Sec. 73.  NRS 374.287 is hereby amended to read as follows:

      374.287  1.  There are exempted from the taxes imposed by this chapter the gross receipts from sales and the storage, use or other consumption of:

      (a) Prosthetic devices, orthotic appliances and ambulatory casts for human use, and other supports and casts if prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

      (b) Appliances and supplies relating to an ostomy.

      (c) Products for hemodialysis.

      (d) [Any ophthalmic or ocular device or appliance prescribed by a physician or optometrist.

      (e)] Medicines:

             (1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

             (2) Furnished by a licensed physician, dentist or podiatric physician to his own patient for the treatment of the patient;

             (3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

             (4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

      2.  As used in this section:

      (a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or preparation intended for such use. The term includes splints, bandages, pads, compresses and dressings.

      (b) “Medicine” does not include:

             (1) Any auditory , ophthalmic or ocular device or appliance.

             (2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

             (3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

             (4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

      3.  Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

      Sec. 74.  NRS 374.360 is hereby amended to read as follows:

      374.360  Except as otherwise provided in NRS 374.385 [,] or required by the Department pursuant to section 9 of this act, the taxes imposed by this chapter are due and payable to the Department monthly on or before the last day of the month next succeeding each month.


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      Sec. 75.  NRS 374.365 is hereby amended to read as follows:

      374.365  Except as otherwise required by the Department pursuant to section 9 of this act:

      1.  On or before the last day of the month following each reporting period, a return for the preceding period must be filed with the Department in such form as the Department may prescribe. Any return required to be filed by this section must be combined with any return required to be filed pursuant to the provisions of chapter 372 of NRS.

      2.  For purposes of [the] :

      (a) The sales tax a return must be filed by every seller. [For purposes of the]

      (b) The use tax a return must be filed by every retailer maintaining a place of business in the county and by every person purchasing tangible personal property, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due . [to a retailer required to collect the tax.]

      3.  Returns must be signed by the person required to file the return or by his authorized agent but need not be verified by oath.

      Sec. 76.  NRS 374.370 is hereby amended to read as follows:

      374.370  1.  Except as otherwise required by the Department pursuant to section 9 of this act or provided in sections 13 to 18, inclusive, of this act:

      (a) For the purposes of the sales tax:

      [(a)] (1) The return must show the gross receipts of the seller during the preceding reporting period.

      [(b)] (2) The gross receipts must be segregated and reported separately for each county to which a sale of tangible personal property pertains.

      [(c)] (3) A sale pertains to the county in this state in which the tangible personal property is or will be delivered to the purchaser or his agent or designee.

      [2.] (b) For purposes of the use tax:

      [(a)] (1) In the case of a return filed by a retailer, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which property became subject to the use tax during the preceding reporting period.

      [(b)] (2) The sales price must be segregated and reported separately for each county to which a purchase of tangible personal property pertains.

      [(c)] (3) If the property was [brought] :

                   (I) Brought into this state by the purchaser or his agent or designee, the sale pertains to the county in this state in which the property is or will be first used, stored or otherwise consumed. [Otherwise,]

                   (II) Not brought into this state by the purchaser or his agent or designee, the sale pertains to the county in this state in which the property was delivered to the purchaser or his agent or designee.

      [3.] 2.  In case of a return filed by a purchaser, the return must show the total sales price of the property purchased by him, the storage, use or consumption of which became subject to the use tax during the preceding reporting period and indicate the county in this state in which the property was first used, stored or consumed.

      [4.] 3.  The return must also show the amount of the taxes for the period covered by the return and such other information as the Department deems necessary for the proper administration of this chapter.


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      [5.  If a retailer:

      (a) Is unable to collect all or part of the sales price of a sale, the amount of which was included in the gross receipts reported for a previous reporting period; and

      (b) Has taken a deduction on his federal income tax return pursuant to 26 U.S.C. § 166(a) for the amount which he is unable to collect,

he is entitled to receive a credit for the amount of sales tax paid on account of that uncollected sales price. The credit may be used against the amount of sales tax that the retailer is subsequently required to pay pursuant to this chapter.

      6.  If the Internal Revenue Service of the Department of the Treasury disallows a deduction described in paragraph (b) of subsection 5 and the retailer claimed a credit on a return for a previous reporting period pursuant to subsection 5, the retailer shall include the amount of that credit in the amount of taxes reported pursuant to subsection 4 in the first return filed with the Department after the deduction is disallowed.

      7.  If a retailer collects all or part of the sales price for which he claimed a credit on a return for a previous reporting period pursuant to subsection 5, he shall include:

      (a) The amount collected in the gross receipts reported pursuant to paragraph (a) of subsection 1; and

      (b) The sales tax payable on the amount collected in the amount of taxes reported pursuant to subsection 4,

in the first return filed with the Department after that collection.

      8.] 4.  Except as otherwise provided in subsection [9,] 5, upon determining that a retailer has filed a return which contains one or more violations of the provisions of this section, the Department shall:

      (a) For the first return of any retailer which contains one or more violations, issue a letter of warning to the retailer which provides an explanation of the violation or violations contained in the return.

      (b) For the first or second return, other than a return described in paragraph (a), in any calendar year which contains one or more violations, assess a penalty equal to the amount of the tax which was not reported or was reported for the wrong county or $1,000, whichever is less.

      (c) For the third and each subsequent return in any calendar year which contains one or more violations, assess a penalty of three times the amount of the tax which was not reported or was reported for the wrong county or $3,000, whichever is less.

      [9.] 5. For the purposes of subsection [8,] 4, if the first violation of this section by any retailer was determined by the Department through an audit which covered more than one return of the retailer, the Department shall treat all returns which were determined through the same audit to contain a violation or violations in the manner provided in paragraph (a) of subsection [8.] 4.

      Sec. 77.  NRS 374.375 is hereby amended to read as follows:

      374.375  [The]

      1.  Except as otherwise provided in subsection 2, a taxpayer shall deduct and withhold from the taxes otherwise due from him 1.25 percent thereof to reimburse himself for the cost of collecting the tax.

      2.  The regulations adopted by the Department pursuant to NRS 360B.110 may authorize the deduction and withholding from the taxes otherwise due from a taxpayer such other amounts as are required to carry out the Streamlined Sales and Use Tax Agreement.


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otherwise due from a taxpayer such other amounts as are required to carry out the Streamlined Sales and Use Tax Agreement.

      Sec. 78.  NRS 374.380 is hereby amended to read as follows:

      374.380  [The]

      1.  Except as otherwise required by the Department pursuant to section 9 of this act, the person required to file [the] a return shall deliver the return together with a remittance of the amount of the tax due to the Department.

      2.  The Department shall provide for the acceptance of credit cards, debit cards or electronic transfers of money for the payment of the tax due in the manner prescribed in NRS 353.1465.

      Sec. 79.  NRS 374.385 is hereby amended to read as follows:

      374.385  1.  [The] Except as otherwise provided in subsection 2 or required by the Department pursuant to section 9 of this act, the reporting and payment period of a taxpayer whose taxable sales do not exceed $10,000 per month is a calendar quarter.

      2.  The Department, if it deems this action necessary in order to insure payment to or facilitate the collection by the county of the amount of taxes, may require returns and payment of the amount of taxes for periods other than calendar months or quarters, depending upon the principal place of business of the seller, retailer or purchaser as the case may be, or for other than monthly or quarterly periods.

      Sec. 80.  NRS 374.640 is hereby amended to read as follows:

      374.640  Except as otherwise provided in NRS 360.235 and 360.395 [:] and section 57 of this act:

      1.  No refund may be allowed unless a claim for it is filed with the Department within 3 years after the last day of the month following the close of the period for which the overpayment was made.

      2.  No credit may be allowed after the expiration of the period specified for filing claims for refund unless a claim for credit is filed with the Department within that period, or unless the credit relates to a period for which a waiver is given pursuant to NRS 360.355.

      Sec. 81.  NRS 374.7273 is hereby amended to read as follows:

      374.7273  1.  In administering the provisions of NRS 374.340, the Department shall apply the exemption for the sale of tangible personal property delivered by the vendor to a forwarding agent for shipment out of state to include:

      [1.] (a) The sale of a vehicle to a nonresident to whom a special movement permit has been issued by the Department of Motor Vehicles pursuant to subsection 1 of NRS 482.3955; and

      [2.] (b) The sale of farm machinery and equipment [, as defined in NRS 374.286,] to a nonresident who submits proof to the vendor that the farm machinery and equipment will be delivered out of state not later than 15 days after the sale.

      2.  As used in this section:

      (a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

      (b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment. The term does not include:


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             (1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

             (2) Machinery or equipment only incidentally employed for the agricultural use of real property.

      (c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

      (d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

      Sec. 82.  NRS 374.785 is hereby amended to read as follows:

      374.785  1.  All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to counties under this chapter must be paid to the Department in the form of remittances payable to the Department.

      2.  The Department shall deposit the payments in the State Treasury to the credit of the Sales and Use Tax Account in the State General Fund.

      3.  The State Controller, acting upon the collection data furnished by the Department, shall, each month, from the Sales and Use Tax Account in the State General Fund:

      (a) Transfer .75 percent of all fees, taxes, interest and penalties collected in each county during the preceding month to the appropriate account in the State General Fund as compensation to the State for the costs of collecting the tax.

      (b) Transfer .75 percent of all fees, taxes, interest and penalties collected during the preceding month from out-of-state businesses not maintaining a fixed place of business within this state to the appropriate account in the State General Fund as compensation to the State for the costs of collecting the tax.

      (c) Determine for each county the amount of money equal to the fees, taxes, interest and penalties collected in the county pursuant to this chapter during the preceding month less the amount transferred pursuant to paragraph (a).

      (d) Transfer the total amount of taxes collected pursuant to this chapter during the preceding month from out-of-state businesses not maintaining a fixed place of business within this state, less the amount transferred pursuant to paragraph (b), to the State Distributive School Account in the State General Fund.

      (e) Except as otherwise provided in NRS 387.528, transfer the amount owed to each county to the Intergovernmental Fund and remit the money to the credit of the county school district fund.

      [4.  For the purpose of the distribution required by this section, the occasional sale of a vehicle shall be deemed to take place in the county to which the governmental services tax payable by the buyer upon that vehicle is distributed.]

      Sec. 83.  NRS 374A.020 is hereby amended to read as follows:

      374A.020  1.  The collection of the tax imposed by NRS 374A.010 must be commenced on the first day of the first calendar quarter that begins at least [30] 120 days after the last condition in subsection 1 of NRS 374A.010 is met.


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      2.  The tax must be administered, collected and distributed in the manner set forth in chapter 374 of NRS.

      3.  The board of trustees of the school district shall transfer the proceeds of the tax imposed by NRS 374A.010 from the county school district fund to the fund described in NRS 354.6105 which must be established by the board of trustees. The money deposited in the fund described in NRS 354.6105 pursuant to this subsection must be accounted for separately in that fund and must only be expended by the board of trustees for the cost of the extraordinary maintenance, extraordinary repair and extraordinary improvement of school facilities within the county.

      Sec. 84.  NRS 376A.060 is hereby amended to read as follows:

      376A.060  Any ordinance enacted pursuant to NRS 376A.040 or 376A.050 must include:

      1.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      2.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with the chapter, automatically become a part of the ordinance imposing the tax.

      3.  A provision that specifies the date on which the tax is first imposed or on which any change in the rate of the tax becomes effective, which must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance.

      Sec. 85.  NRS 377.030 is hereby amended to read as follows:

      377.030  1.  The board of county commissioners shall enact an ordinance imposing a city-county relief tax.

      2.  The ordinance enacted pursuant to this section must provide that the city-county relief tax be imposed on the first day of the first [month following] calendar quarter that begins at least 120 days after the effective date of the ordinance.

      Sec. 86.  NRS 377.055 is hereby amended to read as follows:

      377.055  [1.]  The Department shall monthly determine for each county an amount of money equal to the sum of:

      [(a)] 1.  Any fees and any taxes, interest and penalties which derive from the basic city-county relief tax collected in that county pursuant to this chapter during the preceding month, less the corresponding amount transferred to the State General Fund pursuant to subsection 3 of NRS 377.050; and

      [(b)] 2.  That proportion of the total amount of taxes which derive from that portion of the tax levied at the rate of one-half of 1 percent collected pursuant to this chapter during the preceding month from out-of-state businesses not maintaining a fixed place of business within this state, less the corresponding amount transferred to the State General Fund pursuant to subsection 3 of NRS 377.050, which the population of that county bears to the total population of all counties which have in effect a city-county relief tax ordinance,

and deposit the money in the Local Government Tax Distribution Account created by NRS 360.660 for credit to the respective subaccounts of each county.

      [2.  For the purpose of the distribution required by this section, the occasional sale of a vehicle shall be deemed to take place in the county to which the governmental services tax payable by the buyer upon that vehicle is distributed.]


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      Sec. 87.  NRS 377A.020 is hereby amended to read as follows:

      377A.020  1.  The board of county commissioners of any county may enact an ordinance imposing a tax for a public transit system or for the construction, maintenance and repair of public roads, or both, pursuant to NRS 377A.030. The board of county commissioners of any county whose population is less than 400,000 may enact an ordinance imposing a tax to promote tourism pursuant to NRS 377A.030.

      2.  An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. A county may combine the questions for a public transit system and for the construction, maintenance and repair of public roads with questions submitted pursuant to NRS 244.3351, 278.710 or 371.045, or any combination thereof. The board shall also submit to the voters at a general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.

      3.  Any ordinance enacted pursuant to this section must specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must [not be earlier than] be the first day of the [second calendar month following] first calendar quarter that begins at least 120 days after the approval of the question by the voters.

      Sec. 88.  NRS 377A.030 is hereby amended to read as follows:

      377A.030  Except as otherwise provided in NRS 377A.110, any ordinance enacted under this chapter must include provisions in substance as follows:

      1.  A provision imposing a tax upon retailers at the rate of not more than:

      (a) For a tax to promote tourism, one-quarter of 1 percent; or

      (b) For a tax to establish and maintain a public transit system or for the construction, maintenance and repair of public roads, or both, one-half of 1 percent,

of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in a county.

      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this chapter, automatically become a part of an ordinance imposing the tax for public mass transportation and construction of public roads or the tax to promote tourism in the county.

      4.  A provision that the county shall contract before the effective date of the ordinance with the Department to perform all functions incident to the administration or operation of the tax in the county.

      5.  A provision that [exempts from the tax or any increase in the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property, entered into on or before the effective date of the tax or the increase in the tax, or for which a binding bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.


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bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

      Sec. 89.  NRS 377A.110 is hereby amended to read as follows:

      377A.110  1.  Subject to the provisions of subsection 2, the board may gradually reduce the amount of tax imposed pursuant to this chapter for a public transit system or for the construction, maintenance and repair of public roads, or both, as revenue from the operation of the public transit system permits. The date on which any reduction in the tax becomes effective must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance reducing the amount of tax imposed.

      2.  No such taxing ordinance may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds issued under this chapter, or other obligations incurred under this chapter, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this chapter, have been discharged in full, but the board may at any time dissolve the regional transportation commission and provide that no further obligations be incurred thereafter.

      Sec. 90.  NRS 377B.100 is hereby amended to read as follows:

      377B.100  1.  The board of county commissioners of any county may by ordinance, but not as in a case of emergency, impose a tax for infrastructure pursuant to this section and NRS 377B.110.

      2.  An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a two-thirds majority of the members of the board of county commissioners. Any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax must be approved by a two-thirds majority of the members of the board of county commissioners. The board of county commissioners shall not change a previously approved use for the proceeds of the tax to a use that is not authorized for that county pursuant to NRS 377B.160.

      3.  An ordinance enacted pursuant to this section must:

      (a) Specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must occur on the first day of the first month of the next calendar quarter that is at least [60] 120 days after the date on which a two-thirds majority of the board of county commissioners approved the question.

      (b) In a county whose population is 400,000 or more, provide for the cessation of the tax not later than:

             (1) The last day of the month in which the Department determines that the total sum collected since the tax was first imposed, exclusive of any penalties and interest, exceeds $2.3 billion; or

             (2) June 30, 2025,

whichever occurs earlier.

      4.  The board of county commissioners in a county whose population is 400,000 or more and in which a water authority exists shall review the necessity for the continued imposition of the tax authorized pursuant to this chapter at least once every 10 years.

      5.  Before enacting an ordinance pursuant to this chapter, the board of county commissioners shall hold a public hearing regarding the imposition of a tax for infrastructure.


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a tax for infrastructure. In a county whose population is 400,000 or more and in which a water authority exists, the water authority shall also hold a public hearing regarding the tax for infrastructure. Notice of the time and place of each hearing must be:

      (a) Published in a newspaper of general circulation in the county at least once a week for the 2 consecutive weeks immediately preceding the date of the hearing. Such notice must be a display advertisement of not less than 3 inches by 5 inches.

      (b) Posted at the building in which the meeting is to be held and at not less than three other separate, prominent places within the county at least 2 weeks before the date of the hearing.

      6.  Before enacting an ordinance pursuant to this chapter, the board of county commissioners of a county whose population is less than 400,000 or a county whose population is 400,000 or more and in which no water authority exists, shall develop a plan for the expenditure of the proceeds of a tax imposed pursuant to this chapter for the purposes set forth in NRS 377B.160. The plan may include a regional project for which two or more such counties have entered into an interlocal agreement to expend jointly all or a portion of the proceeds of a tax imposed in each county pursuant to this chapter. Such a plan must include, without limitation, the date on which the plan expires, a description of each proposed project, the method of financing each project and the costs related to each project. Before adopting a plan pursuant to this subsection, the board of county commissioners of a county in which a regional planning commission has been established pursuant to NRS 278.0262 shall transmit to the regional planning commission a list of the proposed projects for which a tax for infrastructure may be imposed. The regional planning commission shall hold a public hearing at which it shall rank each project in relative priority. The regional planning commission shall transmit its rankings to the board of county commissioners. The recommendations of the regional planning commission regarding the priority of the proposed projects are not binding on the board of county commissioners. The board of county commissioners shall hold at least one public hearing on the plan. Notice of the time and place of the hearing must be provided in the manner set forth in subsection 5. The plan must be approved by the board of county commissioners at a public hearing. Subject to the provisions of subsection 7, on or before the date on which a plan expires, the board of county commissioners shall determine whether a necessity exists for the continued imposition of the tax. If the board determines that such a necessity does not exist, the board shall repeal the ordinance that enacted the tax. If the board of county commissioners determines that the tax must be continued for a purpose set forth in NRS 377B.160, the board shall adopt, in the manner prescribed in this subsection, a new plan for the expenditure of the proceeds of the tax for such a purpose.

      7.  No ordinance imposing a tax which is enacted pursuant to this chapter may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to this chapter until those bonds or other obligations have been discharged in full.

      Sec. 91.  NRS 377B.110 is hereby amended to read as follows:

      377B.110  An ordinance enacted pursuant to this chapter must include provisions in substance as follows:


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      1.  A provision imposing a tax upon retailers at the rate of not more than:

      (a) In a county whose population is 100,000 or more but less than 400,000, one-eighth of 1 percent; or

      (b) In all other counties, one-quarter of 1 percent,

of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in the county.

      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this chapter, automatically become a part of an ordinance enacted pursuant to this chapter.

      4.  A provision stating the specific purpose for which the proceeds of the tax must be expended.

      5.  A provision that the county shall contract before the effective date of the ordinance with the Department to perform all functions incident to the administration or operation of the tax in the county.

      6.  A provision that [exempts from the tax or any increase in the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract:

      (a) Entered into on or before the effective date of the tax or the increase in the tax; or

      (b) For the construction of an improvement to real property for which a binding bid was submitted before the effective date of the tax or the increase in the tax if the bid was afterward accepted,

if, under the terms of the contract or bid, the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

      Sec. 92.  NRS 354.705 is hereby amended to read as follows:

      354.705  1.  As soon as practicable after the Department takes over the management of a local government, the Executive Director shall:

      (a) Determine the total amount of expenditures necessary to allow the local government to perform the basic functions for which it was created;

      (b) Determine the amount of revenue reasonably expected to be available to the local government; and

      (c) Consider any alternative sources of revenue available to the local government.

      2.  If the Executive Director determines that the available revenue is not sufficient to provide for the payment of required debt service and operating expenses, he may submit his findings to the Committee who shall review the determinations made by the Executive Director. If the Committee determines that additional revenue is needed, it shall prepare a recommendation to the Nevada Tax Commission as to which one or more of the following additional taxes or charges should be imposed by the local government:

      (a) The levy of a property tax up to a rate which when combined with all other overlapping rates levied in the State does not exceed $4.50 on each $100 of assessed valuation.

      (b) An additional tax on transient lodging at a rate not to exceed 1 percent of the gross receipts from the rental of transient lodging within the boundaries of the local government upon all persons in the business of providing lodging.


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boundaries of the local government upon all persons in the business of providing lodging. Any such tax must be collected and administered in the same manner as all other taxes on transient lodging are collected by or for the local government.

      (c) Additional service charges appropriate to the local government.

      (d) If the local government is a county or has boundaries that are conterminous with the boundaries of the county:

             (1) An additional tax on the gross receipts from the sale or use of tangible personal property not to exceed one quarter of 1 percent throughout the county. The ordinance imposing any such tax must [include] :

                   (I) Include provisions in substance which comply with the requirements of subsections 2 to 5, inclusive, of NRS 377A.030.

                   (II) Specify the date on which the tax must first be imposed or on which a change in the rate of the tax becomes effective, which must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance.

             (2) An additional governmental services tax of not more than 1 cent on each $1 of valuation of the vehicle for the privilege of operating upon the public streets, roads and highways of the county on each vehicle based in the county except those vehicles exempt from the governmental services tax imposed pursuant to chapter 371 of NRS or a vehicle subject to NRS 706.011 to 706.861, inclusive, which is engaged in interstate or intercounty operations. As used in this subparagraph, “based” has the meaning ascribed to it in NRS 482.011.

      3.  Upon receipt of the plan from the Committee, a panel consisting of three members of the Nevada Tax Commission appointed by the Nevada Tax Commission and three members of the Committee appointed by the Committee shall hold a public hearing at a location within the boundaries of the local government in which the severe financial emergency exists after giving public notice of the hearing at least 10 days before the date on which the hearing will be held. In addition to the public notice, the panel shall give notice to the governing body of each local government whose jurisdiction overlaps with the jurisdiction of the local government in which the severe financial emergency exists.

      4.  After the public hearing conducted pursuant to subsection 3, the Nevada Tax Commission may adopt the plan as submitted or adopt a revised plan. Any plan adopted pursuant to this section must include the duration for which any new or increased taxes or charges may be collected which must not exceed 5 years.

      5.  Upon adoption of the plan by the Nevada Tax Commission, the local government in which the severe financial emergency exists shall impose or cause to be imposed the additional taxes and charges included in the plan for the duration stated in the plan or until the severe financial emergency has been determined by the Nevada Tax Commission to have ceased to exist.

      6.  The allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811 does not apply to any additional property tax levied pursuant to this section.

      7.  If a plan fails to satisfy the expenses of the local government to the extent expected, the Committee shall report such failure to:

      (a) The county for consideration of absorption of services; or

      (b) If the local government is a county, to the next regular session of the Legislature.


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      Sec. 93.  NRS 482.225 is hereby amended to read as follows:

      482.225  1.  When application is made to the Department for registration of a vehicle purchased [in this state from a person other than a retailer required to be registered with the Department of Taxation or of a vehicle purchased] outside this state and not previously registered within this state where the registrant or owner at the time of purchase was not a resident of or employed in this state, the Department or its agent shall determine and collect any sales or use tax due and shall remit the tax to the Department of Taxation except as otherwise provided in NRS 482.260.

      2.  If the registrant or owner of the vehicle was a resident of the State, or employed within the State, at the time of the purchase of that vehicle, it is presumed that the vehicle was purchased for use within the State and the representative or agent of the Department of Taxation shall collect the tax and remit it to the Department of Taxation.

      3.  Until all applicable taxes and fees are collected, the Department shall refuse to register the vehicle.

      4.  In any county whose population is less than 50,000, the Department shall designate the county assessor as the agent of the Department for the collection of any sales or use tax.

      5.  If the registrant or owner desires to refute the presumption stated in subsection 2 that he purchased the vehicle for use in this state, he must pay the tax to the Department and then may submit his claim for exemption in writing, signed by him or his authorized representative, to the Department together with his claim for refund of tax erroneously or illegally collected.

      6.  If the Department finds that the tax has been erroneously or illegally collected, the tax must be refunded.

      Sec. 94.  Section 29 of the Local Government Tax Act of 1991, being chapter 491, Statutes of Nevada 1991, as amended by chapter 426, Statutes of Nevada 1993, at page 1370, is hereby amended to read as follows:

      Sec. 29.  1.  Except as otherwise provided in this section and in section 34 of this Act and in addition to all other sales and use taxes, the Board of County Commissioners of Churchill, Elko, Humboldt, Washoe and Lander Counties and the Board of Supervisors of Carson City may by ordinance, but not as in a case of emergency, impose a tax at the rate of up to 1/4 of 1 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed in the county.

      2.  The tax imposed pursuant to this section applies throughout the county, including incorporated cities in the county.

      3.  The ordinance enacted pursuant to this section must include provisions in substance as follows:

      (a) Provisions substantially identical to those of the Local School Support Tax Law, insofar as applicable.

      (b) A provision that all amendments to the provisions of the Local School Support Tax Law subsequent to the date of enactment of the ordinance, not inconsistent with this section, automatically become a part of the ordinance enacted pursuant to subsection 1.

      (c) A provision that the county shall contract before the effective date of the ordinance enacted pursuant to subsection 1 with the Department to perform all functions incident to the administration or operation of the tax imposed pursuant to subsection 1.


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      (d) A provision that [exempts from the additional one quarter of one percent tax increase authorized pursuant to this section, the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property which was executed before July 30, 1991, or for which a binding bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the additional tax pursuant to this section.

      (e) A provision that specifies the date on which the tax is first imposed or on which any change in the rate of the tax becomes effective, which must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance.

      4.  All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the county under this section must be paid to the Department of Taxation in the form of remittances made payable to the Department of Taxation.

      5.  The Department of Taxation shall deposit the payments with the State Treasurer for credit to the tax distribution fund for the county in which it was collected.

      6.  Any ordinance enacted pursuant to this section is deemed to include the provisions set forth in paragraph (d) of subsection 3.

      Sec. 95.  Section 9 of chapter 566, Statutes of Nevada 1993, at page 2329, is hereby amended to read as follows:

      Sec. 9.  1.  The Commission shall adopt a budget for its operation and for each project it proposes for presentation to the governing bodies. Each budget must be accompanied by a proposed allocation of the net cost of the budget among the governing bodies which must be based upon the benefit of the commission or project to the jurisdiction of the governing body or another equally appropriate indicator.

      2.  Upon final determination and allocation of the costs by agreement of the governing bodies, each governing body shall include its portion of the costs in its budget for the purposes of chapter 354 of NRS and shall fund its share of the cost by:

      (a) Issuing bonds pursuant to chapter 350 of NRS;

      (b) Imposing an additional tax on the rental of transient lodging;

      (c) Upon approval by the voters, imposing an additional tax upon retailers at a rate not exceeding one-half of 1 percent of the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed in the county;

      (d) Upon approval of the voters, levying a property tax not exceeding 2 cents per $100 of assessed valuation on all taxable property in the county; or

      (e) Any combination of the options provided in paragraphs (a) to (d), inclusive, including the issuance of bonds which will be repaid from the revenue of one or more of the taxes authorized in this section which may be treated as pledged revenues for the purposes of NRS 350.020.


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which may be treated as pledged revenues for the purposes of NRS 350.020.

      3.  If the county imposes a tax pursuant to paragraph (c) of subsection 2 it shall include in the ordinance imposing the tax:

      (a) Provisions substantially identical to those contained in chapter 374 of NRS;

      (b) A provision stating that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with the provisions of the ordinance, automatically become a part of the ordinance;

      (c) A provision that the county shall contract before the effective date of the ordinance with the Department to perform all functions incident to the administration or operation of the tax in the county; and

      (d) The date on which the tax must first be imposed, which must [not be earlier than] be the first day of the [second calendar month following] first calendar quarter that begins at least 120 days after the adoption of the ordinance by the governing body.

      4.  The Commission is not entitled to a distribution of revenue from the supplemental city-county relief tax.

      Sec. 96.  Section 3 of the Elko County Hospital Tax Act, being chapter 14, Statutes of Nevada 1997, at page 29, is hereby amended to read as follows:

      Sec. 3.  1.  The Board may enact an ordinance imposing a tax for the construction of a hospital pursuant to section 4 of this Act.

      2.  A tax so imposed may be collected for not more than 4 years after the date upon which it is first imposed. The ending date of the tax must be specified in the ordinance.

      3.  An ordinance enacted pursuant to this act may not become effective before a question concerning the imposition of the tax is approved by a majority of the registered voters of Elko County voting upon the question. The Board may submit the question to the voters at a special election held at the same time and places as a municipal election or at a general election. The Board shall also submit to the voters at such a special or general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.

      4.  Any ordinance enacted pursuant to this section must specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must [not be earlier than] be the first day of the [second calendar month following] first calendar quarter that begins at least 120 days after the approval of the question by the voters.

      Sec. 97.  Section 4 of the Elko County Hospital Tax Act, being chapter 14, Statutes of Nevada 1997, at page 30, is hereby amended to read as follows:

      Sec. 4.  Except as otherwise provided in section 12 of this Act, any ordinance adopted pursuant to this Act, except an ordinance authorizing the issuance of bonds or other securities, must include provisions in substance as follows:

      1.  A provision imposing a tax upon retailers at the rate of not more than 1 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in Elko County.


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of all tangible personal property sold at retail, or stored, used or otherwise consumed, in Elko County.

      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this act, automatically become a part of an ordinance imposing the taxes.

      4.  A provision that the Board shall contract before the effective date of the taxing ordinance with the Department to perform all functions incident to the administration or operation of the tax in the County.

      5.  A provision that [exempts from the tax or any increase in the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property, entered into on or before the effective date of the tax or the increase in the tax, or for which a binding bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

      Sec. 98.  Section 13 of the Elko County Hospital Tax Act, being chapter 14, Statutes of Nevada 1997, at page 32, is hereby amended to read as follows:

      Sec. 13.  1.  Subject to the provisions of subsection 2, the Board may gradually reduce the amount of the tax imposed pursuant to this Act. The date on which any reduction in the tax becomes effective must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance reducing the amount of the tax imposed.

      2.  No such taxing ordinance may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds issued pursuant to this Act, or other obligations incurred pursuant to this Act, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this act, have been discharged in full.

      Sec. 99.  Section 8A.080 of the Charter of Carson City, being chapter 16, Statutes of Nevada 1997, at page 43, is hereby amended to read as follows:

      Sec. 8A.080  Required provisions of ordinance.  An ordinance enacted pursuant to this article, except an ordinance authorizing the issuance of bonds or other securities, must include provisions in substance as follows:

      1.  A provision imposing a tax of not more than one-quarter of 1 percent of the gross receipts of any retailer from the sale of all personal property sold at retail, or stored, used or otherwise consumed in Carson City.


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      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that an amendment to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this article, automatically becomes a part of the ordinance imposing the tax.

      4.  A provision that the Board shall contract before the effective date of the ordinance with the Department to perform all the functions incident to the administration or operation of the tax in Carson City.

      5.  A provision that [exempts from the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of tangible personal property used for the performance of a written contract for the construction of an improvement to real property:

      (a) That was entered into on or before the effective date of the tax; or

      (b) For which a binding bid was submitted before that date if the bid was afterward accepted,

and pursuant to the terms of the contract or bid, the contract price or bid amount may not be adjusted to reflect the imposition of the tax.

      6.  A provision that specifies the date on which the tax is first imposed or on which any changes in the rate of the tax becomes effective, which must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance.

      Sec. 100.  Section 24 of the Railroad Grade Separation Projects Act, being chapter 506, Statutes of Nevada 1997, as last amended by chapter 28, Statutes of Nevada 1999, at page 64, is hereby amended to read as follows:

      Sec. 24.  1.  The Board of County Commissioners of Washoe County may by ordinance, but not as in a case of emergency, impose a tax upon the retailers at the rate of not more than one-eighth of 1 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed in the county if:

      (a) The City of Reno imposes a tax on the rental of transient lodging pursuant to NRS 268.7845 in the maximum amount allowed by that section; and

      (b) The Board receives a written commitment from one or more sources for the expenditure of not less than one-half of the total cost of a project for the acquisition, establishment, construction or expansion of railroad grade separation projects in Washoe County, including the estimated proceeds of the tax described in paragraph (a).

      2.  An ordinance enacted pursuant to subsection 1 may not become effective before a question concerning the imposition of the tax is approved by a two-thirds majority of the members of the Board of County Commissioners.

      3.  An ordinance enacted pursuant to subsection 1 must specify the date on which the tax must first be imposed which must occur on the first day of the first month of the next calendar quarter that is at least [60] 120 days after the date on which a two-thirds majority of the Board of County Commissioners approved the question.


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least [60] 120 days after the date on which a two-thirds majority of the Board of County Commissioners approved the question.

      4.  An ordinance enacted pursuant to subsection 1 must include provisions in substance as follows:

      (a) Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      (b) A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this section, automatically become a part of an ordinance enacted pursuant to subsection 1.

      (c) A provision stating the specific purpose for which the proceeds of the tax must be expended.

      (d) A provision that [exempts from the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract:

             (1) Entered into on or before the effective date of the tax; or

             (2) For the construction of an improvement to real property for which a binding bid was submitted before the effective date of the tax if the bid was afterward accepted,

if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax.

      5.  No ordinance imposing a tax which is enacted pursuant to subsection 1 may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds or other obligations which are payable from or secured by a pledge of a tax enacted pursuant to subsection 1 until those bonds or other obligations have been discharged in full.

      6.  All fees, taxes, interest and penalties imposed and all amounts of tax required to be paid to the County pursuant to this section must be paid to the Department of Taxation in the form of remittances payable to the Department of Taxation.

      7.  The Department of Taxation shall deposit the payments with the State Treasurer for credit to the Sales and Use Tax Account in the State General Fund.

      8.  The State Controller, acting upon the collection data furnished by the Department of Taxation, shall monthly:

      (a) Transfer from the Sales and Use Tax Account to the appropriate account in the State General Fund a percentage of all fees, taxes, interest and penalties collected pursuant to this section during the preceding month as compensation to the state for the cost of collecting the taxes. The percentage to be transferred pursuant to this paragraph must be the same percentage as the percentage of proceeds transferred pursuant to paragraph (a) of subsection 3 of NRS 374.785 but the percentage must be applied to the proceeds collected pursuant to this section only.

      (b) Determine for the County an amount of money equal to any fees, taxes, interest and penalties collected in or for the county pursuant to this section during the preceding month, less the amount transferred to the State General Fund pursuant to paragraph (a).


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pursuant to this section during the preceding month, less the amount transferred to the State General Fund pursuant to paragraph (a).

      (c) Transfer the amount determined for the County to the intergovernmental fund and remit the money to the County Treasurer.

      9.  The County Treasurer shall deposit the money received pursuant to subsection 8 in the County Treasury for credit to a fund to be known as the Railroad Grade Separation Projects Fund. The Railroad Grade Separation Projects Fund must be accounted for as a separate fund and not as a part of any other fund.

      10.  The money in the Railroad Grade Separation Projects Fund, including interest and any other income from the Fund must be used by the Board of County Commissioners for the cost of the acquisition, establishment, construction or expansion of one or more railroad grade separation projects, including the payment and prepayment of principal and interest on notes, bonds or other obligations issued to fund such projects.

      Sec. 101.  Section 18 of the Douglas County Sales and Use Tax Act of 1999, being chapter 37, Statutes of Nevada 1999, at page 83, is hereby amended to read as follows:

      Sec. 18.  An ordinance enacted pursuant to this act, except an ordinance authorizing the issuance of bonds or other securities, must include provisions in substance as follows:

      1.  A provision imposing a tax of not more than one-quarter of 1 percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail or stored, used or otherwise consumed in the County.

      2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

      3.  A provision that an amendment to chapter 374 of NRS enacted after the effective date of the ordinance, not inconsistent with this act, automatically becomes part of the ordinance imposing the tax.

      4.  A provision that the Board shall contract before the effective date of the ordinance with the Department to perform all the functions incident to the administration or operation of the tax in the County.

      5.  A provision that [exempts from the tax the gross receipts from] a purchaser is entitled to a refund, in accordance with the provisions of NRS 374.635 to 374.720, inclusive, of the amount of the tax required to be paid that is attributable to the tax imposed upon the sale of tangible personal property used for the performance of a written contract for the construction of an improvement to real property:

      (a) That was entered into on or before the effective date of the tax; or

      (b) For which a binding bid was submitted before that date if the bid was afterward accepted,

and pursuant to the terms of the contract or bid, the contract price or bid amount may not be adjusted to reflect the imposition of the tax.

      6.  A provision that specifies the date on which the tax is first imposed or on which any change in the rate of the tax becomes effective, which must be the first day of the first calendar quarter that begins at least 120 days after the effective date of the ordinance.


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that begins at least 120 days after the effective date of the ordinance.

      Sec. 102.  Section 24 of chapter 364, Statutes of Nevada 2001, at page 1716, is hereby amended to read as follows:

      Sec. 24.  1.  This section, sections 1 to 13, inclusive, and 17 to 23, inclusive, of this act become effective upon passage and approval.

      2.  [Sections 14, 15 and] Section 16 of this act [become] becomes effective on the date this state becomes a member of the streamlined sales and use tax agreement.

      3.  Sections 14 and 15 of this act become effective on January 1, 2006.

      Sec. 103.  At the general election on November 2, 2004, a proposal must be submitted to the registered voters of this state to amend the Sales and Use Tax Act, which was enacted by the 47th Session of the Legislature of the State of Nevada and approved by the Governor in 1955, and subsequently approved by the people of this state at the general election held on November 6, 1956.

      Sec. 104.  At the time and in the manner provided by law, the Secretary of State shall transmit the proposed act to the several county clerks, and the county clerks shall cause it to be published and posted as provided by law.

      Sec. 105.  The proclamation and notice to the voters given by the county clerks pursuant to law must be in substantially the following form:

      Notice is hereby given that at the general election on November 2, 2004, a question will appear on the ballot for the adoption or rejection by the registered voters of the State of the following proposed act:

AN ACT to amend an Act entitled “An Act to provide revenue for the State of Nevada; providing for sales and use taxes; providing for the manner of collection; defining certain terms; providing penalties for violation, and other matters properly relating thereto.” approved March 29, 1955, as amended.

 

THE PEOPLE OF THE STATE OF NEVADA DO ENACT AS FOLLOWS:

 

       Section 1.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto three new sections to be designated as sections 18.2, 47.4 and 47.5, respectively, immediately following sections 18.1 and 47, respectively, to read as follows:

      Sec. 18.2.  “Vehicle” has the meaning ascribed to it in NRS 482.135.

      Sec. 47.4.  1.  For the purposes of this section, “authorized appraisal” means an appraisal of the value of a motor vehicle made by:

      (a) An employee of the Department of Motor Vehicles on its behalf;

      (b) A county assessor or his employee as an agent of the Department of Motor Vehicles;

      (c) A person licensed by the Department of Motor Vehicles as a dealer; or

      (d) An independent appraiser authorized by the Department of Motor Vehicles.


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      2.  When computing the tax on the sale of a vehicle by a seller who is not required to be registered by the Department of Taxation, the Department of Motor Vehicles or the county assessor as an agent of the Department of Taxation shall, if an authorized appraisal is submitted, use as the vehicle’s sales price the amount stated on the authorized appraisal or $100, whichever is greater.

      3.  The Department of Motor Vehicles shall establish by regulation the procedure for appraising vehicles and shall establish and make available a form for an authorized appraisal.

      4.  The Department of Motor Vehicles shall retain a copy of the appraisal considered pursuant to subsection 2 with its record of the collection of the tax.

      5.  A fee which does not exceed $10 may be charged and collected for each authorized appraisal made. Any money so collected by the Department of Motor Vehicles for such an appraisal made by its employees must be deposited with the State Treasurer to the credit of the Motor Vehicle Fund. Any money so collected by a county assessor must be deposited with the county treasurer to the credit of the county’s general fund.

      6.  If an authorized appraisal is not submitted, the Department of Motor Vehicles or the county assessor as an agent of the Department of Taxation shall establish the sales price as a value which is based on the depreciated value of the vehicle as determined in accordance with the schedule in section 47.5 of chapter 397, Statutes of Nevada 1955. To determine the original price from which the depreciation is calculated, the Department of Motor Vehicles shall use:

      (a) The manufacturer’s suggested retail price in Nevada, excluding options and extras, as of the time the particular make and year model is first offered for sale in Nevada;

      (b) If the vehicle is specially constructed, the original retail price to the original purchaser of the vehicle as evidenced by such document or documents as the Department may require;

      (c) The procedures set forth in subsections 3 and 4 of NRS 371.050; or

      (d) If none of these applies, its own estimate from any available information.

      Sec. 47.5.  1.  Except as otherwise provided in subsection 2, for the purpose of computing the tax on the sale of a vehicle by a seller who is not required to be registered with the Department of Taxation in the manner provided for in subsection 6 of section 47.4 of chapter 397, Statutes of Nevada 1955, a vehicle must be depreciated according to the following schedule:

 


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ê2003 Statutes of Nevada, Page 2397 (Chapter 400, AB 514)ê

 

                                                                                              Percentage of

Age                                                                                        Initial Value

New........................................................................................ 100 percent

1 year....................................................................................... 85 percent

2 years...................................................................................... 75 percent

3 years...................................................................................... 65 percent

4 years...................................................................................... 60 percent

5 years...................................................................................... 55 percent

6 years...................................................................................... 50 percent

7 years...................................................................................... 45 percent

8 years...................................................................................... 40 percent

9 years...................................................................................... 35 percent

10 years................................................................................... 30 percent

11 years................................................................................... 25 percent

12 years................................................................................... 20 percent

13 years................................................................................... 15 percent

14 years or more.................................................................... 10 percent

 

      2.  The amount of depreciation calculated under subsection 1 must be rounded to the nearest whole multiple of $20 and the depreciated value must not be reduced below $100.

      Sec. 2.  Section 11 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 764, is hereby amended to read as follows:

      Sec. 11.  1.  “Sales price” means the total amount for which tangible property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

      (a) The cost of the property sold.

      (b) The cost of materials used, labor or service cost, interest charged, losses, or any other expenses.

      (c) The cost of transportation of the property prior to its purchase.

      2.  The total amount for which property is sold includes all of the following:

      (a) Any services that are a part of the sale.

      (b) Any amount for which credit is given to the purchaser by the seller.

      3.  “Sales price” does not include any of the following:

      (a) Cash discounts allowed and taken on sales.

      (b) The amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or credit; but this exclusion shall not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

      (c) The amount charged for labor or services rendered in installing or applying the property sold.

      (d) The amount of any tax , [(] not including [, however,] any manufacturers’ or importers’ excise tax , [)] imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.


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      (e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle that is taken in trade on the purchase of another vehicle.

      4.  For the purpose of a sale of a vehicle by a seller who is not required to be registered with the Department of Taxation, the sales price is the value established in the manner set forth in section 47.4 of chapter 397, Statutes of Nevada 1955.

       Sec. 3.  Section 12 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 764, is hereby amended to read as follows:

      Sec. 12.  1.  “Gross receipts” means the total amount of the sale or lease or rental price, as the case may be, of the retail sales of retailers, valued in money, whether received in money or otherwise, without any deduction on account of any of the following:

             (a) The cost of the property sold. However, in accordance with such rules and regulations as the Tax Commission may prescribe, a deduction may be taken if the retailer has purchased property for some other purpose than resale, has reimbursed his vendor for tax which the vendor is required to pay to the State or has paid the use tax with respect to the property, and has resold the property [prior to] before making any use of the property other than retention, demonstration or display while holding it for sale in the regular course of business. If such a deduction is taken by the retailer, no refund or credit will be allowed to his vendor with respect to the sale of the property.

      (b) The cost of the materials used, labor or service cost, interest paid, losses or any other expense.

      (c) The cost of transportation of the property [prior to] before its sale to the purchaser.

      2.  The total amount of the sale or lease or rental price includes all of the following:

      (a) Any services that are a part of the sale.

      (b) All receipts, cash, credits and property of any kind.

      (c) Any amount for which credit is allowed by the seller to the purchaser.

      3.  “Gross receipts” does not include any of the following:

      (a) Cash discounts allowed and taken on sales.

      (b) [Sale] The sale price of property returned by customers when the full sale price is refunded either in cash or credit , [;] but this exclusion [shall] does not apply in any instance when the customer, in order to obtain the refund, is required to purchase other property at a price greater than the amount charged for the property that is returned.

      (c) The price received for labor or services used in installing or applying the property sold.

      (d) The amount of any tax , [(] not including [, however,] any manufacturers’ or importers’ excise tax , [)] imposed by the United States upon or with respect to retail sales, whether imposed upon the retailer or the consumer.


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ê2003 Statutes of Nevada, Page 2399 (Chapter 400, AB 514)ê

 

      (e) The amount of any allowance against the selling price given by a retailer for the value of a used vehicle which is taken in trade on the purchase of another vehicle.

      4.  For purposes of the sales tax, if the retailers establish to the satisfaction of the Tax Commission that the sales tax has been added to the total amount of the sale price and has not been absorbed by them, the total amount of the sale price shall be deemed to be the amount received exclusive of the tax imposed.

       Sec. 4.  Section 15 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 765, is hereby amended to read as follows:

      Sec. 15.  1.  “Retailer” includes:

      (a) Every seller who makes any retail sale or sales of tangible personal property, and every person engaged in the business of making retail sales at auction of tangible personal property owned by the person or others.

      (b) Every person engaged in the business of making sales for storage, use or other consumption or in the business of making sales at auction of tangible personal property owned by the person or others for storage, use or other consumption.

      (c) Every person making any retail sale of a vehicle or more than two retail sales of other tangible personal property during any 12-month period, including sales made in the capacity of assignee for the benefit of creditors, or receiver or trustee in bankruptcy.

      2.  When the Tax Commission determines that it is necessary for the efficient administration of this chapter to regard any salesmen, representatives, peddlers or canvassers as the agents of the dealers, distributors, supervisors or employers under whom they operate or from whom they obtain the tangible personal property sold by them, irrespective of whether they are making sales on their own behalf or on behalf of such dealers, distributors, supervisors or employers, the Tax Commission may so regard them and may regard the dealers, distributors, supervisors or employers as retailers for purposes of this chapter.

      [3.  A licensed optometrist or physician and surgeon is a consumer of, and shall not be considered, a retailer within the provisions of this chapter, with respect to the ophthalmic materials used or furnished by him in the performance of his professional services in the diagnosis, treatment or correction of conditions of the human eye, including the adaptation of lenses or frames for the aid thereof.]

       Sec. 5.  Section 18.1 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 766, is hereby amended to read as follows:

      Sec. 18.1  NRS 372.035 is hereby amended to read as follows:

      372.035  1.  “Occasional sale” includes:

      (a) A sale of property not held or used by a seller in the course of an activity for which he is required to hold a seller’s permit, [provided such] if the sale is not one of a series of sales sufficient in number, scope and character to constitute an activity requiring the holding of a seller’s permit.


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ê2003 Statutes of Nevada, Page 2400 (Chapter 400, AB 514)ê

 

in number, scope and character to constitute an activity requiring the holding of a seller’s permit.

      (b) Any transfer of all or substantially all the property held or used by a person in the course of such an activity when after [such] the transfer the real or ultimate ownership of [such] the property is substantially similar to that which existed before [such] the transfer.

      2.  The term does not include the sale of a vehicle other than the sale or transfer of a used vehicle to the seller’s spouse, child, grandchild, parent, grandparent, brother or sister. For the purposes of this section, the relation of parent and child includes adoptive and illegitimate children and stepchildren.

      3.  For the purposes of this section, stockholders, bondholders, partners or other persons holding an interest in a corporation or other entity are regarded as having the “real or ultimate ownership” of the property of such corporation or other entity.

       Sec. 6.  Section 56.1 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, as added by chapter 306, Statutes of Nevada 1969, at page 532, and amended by chapter 627, Statutes of Nevada 1985, at page 2028, and amended by chapter 404, Statutes of Nevada 1995, at page 1007, is hereby amended to read as follows:

      Sec. 56.1.  1.  There are exempted from the taxes imposed by this act the gross receipts from sales and the storage, use or other consumption of:

      (a) Prosthetic devices, orthotic appliances and ambulatory casts for human use, and other supports and casts if prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

      (b) Appliances and supplies relating to an ostomy.

      (c) Products for hemodialysis.

      (d) Any ophthalmic or ocular device or appliance prescribed by a physician or optometrist.

      (e) Medicines:

             (1) Prescribed for the treatment of a human being by a person authorized to prescribe medicines, and dispensed on a prescription filled by a registered pharmacist in accordance with law;

             (2) Furnished by a licensed physician, dentist or podiatric physician to his own patient for the treatment of the patient;

             (3) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, dentist or podiatric physician; or

             (4) Sold to a licensed physician, dentist, podiatric physician or hospital for the treatment of a human being.

      2.  As used in this section:

      (a) “Medicine” means any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body and which is commonly recognized as a substance or preparation intended for such use.


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ê2003 Statutes of Nevada, Page 2401 (Chapter 400, AB 514)ê

 

The term includes splints, bandages, pads, compresses and dressings.

      (b) “Medicine” does not include:

             (1) Any auditory [, ophthalmic or ocular] device or appliance.

             (2) Articles which are in the nature of instruments, crutches, canes, devices or other mechanical, electronic, optical or physical equipment.

             (3) Any alcoholic beverage, except where the alcohol merely provides a solution in the ordinary preparation of a medicine.

             (4) Braces or supports, other than those prescribed or applied by a licensed provider of health care, within his scope of practice, for human use.

      3.  Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on a prescription within the meaning of this section.

       Sec. 7.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto a new section to be designated as section 56.3, immediately following section 56.2, to read as follows:

      Sec. 56.3.  1.  There are exempted from the taxes imposed by this Act the gross receipts from the sale of, and the storage, use or other consumption in a county of, farm machinery and equipment employed for the agricultural use of real property.

      2.  As used in this section:

      (a) “Agricultural use” has the meaning ascribed to it in NRS 361A.030.

      (b) “Farm machinery and equipment” means a farm tractor, implement of husbandry, piece of equipment used for irrigation, or a part used in the repair or maintenance of farm machinery and equipment. The term does not include:

             (1) A vehicle required to be registered pursuant to the provisions of chapter 482 or 706 of NRS; or

             (2) Machinery or equipment only incidentally employed for the agricultural use of real property.

      (c) “Farm tractor” means a motor vehicle designed and used primarily for drawing an implement of husbandry.

      (d) “Implement of husbandry” means a vehicle that is designed, adapted or used for agricultural purposes, including, without limitation, a plow, machine for mowing, hay baler, combine, piece of equipment used to stack hay, till, harvest, handle agricultural commodities or apply fertilizers, or other heavy, movable equipment designed, adapted or used for agricultural purposes.

       Sec. 8.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto two new sections to be designated as sections 57.1 and 57.2, respectively, immediately following section 57, to read as follows:

      Sec. 57.1.  1.  Except as otherwise provided in section 57.2 of chapter 397, Statutes of Nevada 1955, there are exempted from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption of, works of fine art for public display.


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ê2003 Statutes of Nevada, Page 2402 (Chapter 400, AB 514)ê

 

from the taxes imposed by this chapter the gross receipts from the sale of, and the storage, use or other consumption of, works of fine art for public display.

      2.  In determining whether a payment made pursuant to a lease of a work of fine art is exempt under subsection 1, the value for the purpose of paragraph (a) of subsection 4 is the value of the work and not the value of possession for the term of the lease, and the calendar or fiscal year described in paragraph (a) of subsection 4 is the first full calendar or fiscal year, respectively, after the payment is made.

      3.  During the first full fiscal year following the purchase of fine art for which a taxpayer receives the exemption provided in this section, the taxpayer shall make available, upon written request and without charge to any public school as defined in NRS 385.007, private school as defined in NRS 394.103 and parent of a child who receives instruction in a home pursuant to NRS 392.070, one copy of a poster depicting the fine art that the facility has on public display and that the facility makes available for purchase by the public at the time of the request.

      4.  As used in this section:

      (a) “Fine art for public display”:

             (1) Except as otherwise provided in subparagraph (2), means a work of art which:

                   (I) Is an original painting in oil, mineral, water colors, vitreous enamel, pastel or other medium, an original mosaic, drawing or sketch, an original sculpture of clay, textiles, fiber, wood, metal, plastic, glass or a similar material, an original work of mixed media or a lithograph;

                   (II) Is purchased in an arm’s length transaction for $25,000 or more, or has an appraised value of $25,000 or more;

                   (III) Will be on public display in a public or private art gallery, museum or other building or area in this state for at least 20 hours per week during at least 35 weeks of the first full calendar year after the date on which it is purchased or, if the facility displaying the fine art disposes of it before the end of that year, during at least two-thirds of the full weeks during which the facility had possession of it, or if the gallery, museum, or other building or area in which the fine art will be displayed will not be opened until after the beginning of the first full calendar year after the date on which the fine art is purchased, these display requirements must instead be met for the first full fiscal year after the date of opening, and the date of opening must not be later than 2 years after the purchase of the fine art being displayed; and

                   (IV) Will be on display in a facility that is available for group tours by pupils or students for at least 5 hours on at least 60 days of the first full fiscal year after the purchase of the fine art, during which the facility in which it is displayed is open, by prior appointment and at reasonable times, without charge; and

             (2) Does not include:


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ê2003 Statutes of Nevada, Page 2403 (Chapter 400, AB 514)ê

 

                   (I) A work of fine art that is a fixture or an improvement to real property;

                   (II) Materials purchased by an artist for consumption in the production of a work of art that is to be a fixture or an improvement to real property;

                   (III) A work of fine art that constitutes a copy of an original work of fine art, unless the work is a lithograph that is a limited edition and that is signed and numbered by the artist;

                   (IV) Products of filmmaking or photography, including, without limitation, motion pictures;

                   (V) Literary works;

                   (VI) Property used in the performing arts, including, without limitation, scenery or props for a stage; or

                   (VII) Property that was created for a functional use other than, or in addition to, its aesthetic qualities, including, without limitation, a classic or custom-built automobile or boat, a sign that advertises a business, and custom or antique furniture, lamps, chandeliers, jewelry, mirrors, doors or windows.

      (b) “Public display” means the display of a work of fine art where members of the public have access to the work of fine art for viewing during publicly advertised hours. The term does not include the display of a work of fine art in an area where the public does not generally have access, including, without limitation, a private office, hallway or meeting room of a business, a room of a business used for private lodging and a private residence.

      (c) “Pupil” means a person who:

             (1) Is enrolled for the current academic year in a public school as defined in NRS 385.007 or a private school as defined in NRS 394.103; or

             (2) Receives instruction in a home and is excused from compulsory attendance pursuant to NRS 392.070.

      (d) “Student” means a person who is enrolled for the current academic year in:

             (1) A community college or university; or

             (2) A licensed postsecondary educational institution as defined in NRS 394.099 and a course concerning fine art.

      Sec. 57.2.  1.  A taxpayer may collect an admission fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to section 57.1 of chapter 397, Statutes of Nevada 1955, if the taxpayer offers to residents of the State of Nevada a discount of 50 percent from any admission fee charged to nonresidents. The discounted admission fee for residents must be offered at any time the exhibition is open to the public and admission fees are being charged.

      2.  If a taxpayer collects a fee for the exhibition of fine art otherwise exempt from taxation on its sale, storage, use or other consumption pursuant to section 57.1 of chapter 397, Statutes of Nevada 1955, and the fee is collected during the first full fiscal year after the purchase of the fine art, the exemption pertaining to that fine art must be reduced by the net revenue derived by the taxpayer for that first full fiscal year.


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ê2003 Statutes of Nevada, Page 2404 (Chapter 400, AB 514)ê

 

to that fine art must be reduced by the net revenue derived by the taxpayer for that first full fiscal year. The exemption pertaining to fine art must not be reduced below zero, regardless of the amount of the net revenue derived by the taxpayer for that first full fiscal year.

      3.  Any tax due pursuant to this section must be paid with the first sales and use tax return otherwise required to be filed by the taxpayer following the 15th day of the fourth month after the end of the first full fiscal year following the purchase of the fine art or, if no sales and use tax return is otherwise required to be filed by the taxpayer, with a sales and use tax return filed specifically for this purpose on or before the last day of the fourth month after the end of the first full fiscal year following the purchase of the fine art.

      4.  A taxpayer who is required to pay a tax resulting from the operation of this section may receive a credit against the tax for any donations made by the taxpayer to the Nevada Arts Council, the Division of Museums and History Dedicated Trust Fund established pursuant to NRS 381.0031, a museum that provides exhibits specifically related to nature or a museum that provides exhibits specifically related to children, if the taxpayer:

      (a) Made the donation before the date that either return required pursuant to subsection 3 is due; and

      (b) Provides to the Department documentation of the donation at the time that he files the return required pursuant to subsection 3.

      5.  For the purposes of this section:

      (a) “Direct costs of owning and exhibiting the fine art” does not include any allocation of the general and administrative expense of a business or organization that conducts activities in addition to the operation of the facility in which the fine art is displayed, including, without limitation, an allocation of the salary and benefits of a senior executive who is responsible for the oversight of the facility in which the fine art is displayed and who has substantial responsibilities related to the other activities of the business or organization.

      (b) “Net revenue” means the amount of the fees collected for exhibiting the fine art during the fiscal year less the following paid or made during the fiscal year:

             (1) The direct costs of owning and exhibiting the fine art; and

             (2) The cost of educational programs associated with the taxpayer’s public display of fine art, including the cost of meeting the requirements of sub-subparagraph (IV) of subparagraph (1) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955.

       Sec. 9.  Section 6 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 763, is hereby amended to read as follows:

      Sec. 6.  1.  “Retail sale” or “sale at retail” means a sale for any purpose other than resale in the regular course of business of tangible personal property.


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ê2003 Statutes of Nevada, Page 2405 (Chapter 400, AB 514)ê

 

tangible personal property. The terms do not include a sale of property that:

      (a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955;

      (b) Is made available for sale within 2 years after it is acquired; and

      (c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

      2.  The delivery in this state of tangible personal property by an owner or former owner thereof or by a factor, or agent of such owner, former owner or factor, if the delivery is to a consumer or person for redelivery to a consumer, pursuant to a retail sale made by a retailer not engaged in business in this state, is a retail sale in this state by the person making the delivery. He shall include the retail selling price of the property in his gross receipts.

       Sec. 10.  Section 7 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 763, is hereby amended to read as follows:

      Sec. 7.  “Storage” includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased from a retailer. The term does not include keeping, retaining or exercising any right or power over tangible property that:

      1.  Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of section 57.1 of chapter 397, Statutes of Nevada 1955;

      2.  Is made available for sale within 2 years after it is acquired; and

      3.  Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.

       Sec. 11.  Section 61.5 of the above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, as added by chapter 466, Statutes of Nevada 1985, at page 1441, is hereby amended to read as follows:

      Sec. 61.5.  There are exempted from the taxes imposed by this chapter the gross receipts from the sale [of aircraft and major components] and the storage, use or other consumption in this state of:

      1.  Aircraft, aircraft engines and component parts of aircraft [, such as engines and other components made for use only in aircraft, to an air carrier which:

      1.  Holds a certificate to engage in air transportation issued pursuant to 49 U.S.C. § 1371 and is not solely a charter air carrier or a supplemental air carrier as described in Title 49 of the United States Code; and


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ê2003 Statutes of Nevada, Page 2406 (Chapter 400, AB 514)ê

 

      2.  Maintains its central office in Nevada and bases a majority of its aircraft in Nevada.] or aircraft engines which are manufactured exclusively for use in aircraft, sold or purchased for lease to a commercial air carrier for use in the transportation of persons or property in intrastate, interstate or foreign commerce pursuant to a certificate or license issued to the air carrier authorizing such transportation; and

      2.  Machinery, tools and other equipment and parts which are used exclusively in the repair, remodeling or maintenance of aircraft, aircraft engines or component parts of aircraft or aircraft engines which meet the requirements of subsection 1.

       Sec. 12.  The above-entitled Act, being chapter 397, Statutes of Nevada 1955, at page 762, is hereby amended by adding thereto a new section to be designated as section 61.6, immediately following section 61.5, to read as follows:

      Sec. 61.6.  1.  There are exempted from the taxes imposed by this chapter the gross receipts from the sale, furnishing or service of, and the storage, use or other consumption in this state of:

      (a) All engines and chassis of a professional racing vehicle;

      (b) All parts and components that are used to replace or rebuild existing parts or components of any engine or chassis of a professional racing vehicle;

      (c) All motor vehicles used by professional racing teams to transport professional racing vehicles or to transport parts or components of professional racing vehicles, including, without limitation, an engine and chassis of a professional racing vehicle; and

      (d) All motor vehicles used by a professional racing team or sanctioning body to transport the business office of the professional racing team or sanctioning body or to transport a facility from which hospitality services are provided.

      2.  As used in this section:

      (a) “Professional racing team” means a racing operation that qualifies for the taxable year as an activity engaged in for profit pursuant to the Internal Revenue Code, Title 26 of the United States Code.

      (b) “Professional racing motor vehicle” means any motor vehicle which is used in a professional racing competition and which is owned, leased or operated by a professional racing team.

      (c) “Sanctioning body” means an organization that establishes an annual schedule of professional racing events in which professional racing teams participate, grants rights to conduct such events and establishes and administers rules and regulations governing the persons who conduct or participate in such events.

      Sec. 13.  This act becomes effective on January 1, 2006.

      Sec. 106.  The ballot page assemblies and the paper ballots to be used in voting on the question must present the question in substantially the following form:

 


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ê2003 Statutes of Nevada, Page 2407 (Chapter 400, AB 514)ê

 

      Shall the Sales and Use Tax Act of 1955 be amended to:

      1.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of the value of any used vehicle taken in trade on the purchase of another vehicle and to remove the exemption from those taxes for occasional sales of vehicles except where such sales are between certain family members;

      2.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of ophthalmic or ocular devices or appliances prescribed by a physician or optometrist;

      3.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property;

      4.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of works of fine art for public display;

      5.  Revise and clarify the criteria used to determine which aircraft and parts of aircraft are exempt from the taxes imposed by this Act, including removing the requirement that an air carrier must be based in Nevada to be eligible for the exemption, and providing an exemption for certain machinery and equipment used on eligible aircraft and parts of aircraft; and

      6.  Provide an exemption from the taxes imposed by this Act on the gross receipts from the sale and the storage, use or other consumption of engines and chassis, including replacement parts and components for the engines and chassis, of professional racing vehicles that are owned, leased or operated by professional racing teams?

Yes ¨          No ¨

      Sec. 107.  The explanation of the question which must appear on each paper ballot and sample ballot and in every publication and posting of notice of the question must be in substantially the following form:

 

(Explanation of Question)

       The proposed amendment to the Sales and Use Tax Act of 1955 would:

       1.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of the value of any used vehicle taken in trade on the purchase of another vehicle and remove the exemption from those taxes for occasional sales of vehicles except where such sales are between certain family members;

       2.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of ophthalmic or ocular devices or appliances prescribed by a physician or optometrist;

       3.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of farm machinery and equipment employed for the agricultural use of real property;


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ê2003 Statutes of Nevada, Page 2408 (Chapter 400, AB 514)ê

 

       4.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of works of fine art for public display;

       5.  Revise and clarify the criteria used to determine which aircraft and parts of aircraft are exempt from the taxes imposed by this Act, including removing the requirement that an air carrier must be based in Nevada to be eligible for the exemption, and providing an exemption for certain machinery and equipment used on eligible aircraft and parts of aircraft; and

       6.  Exempt from the taxes imposed by this Act the gross receipts from the sale and the storage, use or other consumption of engines and chassis, including replacement parts and components for the engines and chassis, of professional racing vehicles that are owned, leased or operated by professional racing teams.

A “yes” vote approves all of the proposals set forth in the question. A “no” vote disapproves all of the proposals set forth in the question. The proposals set forth in the question may not be voted upon individually.

      Secs. 108-132.  (Deleted by amendment.)

      Sec. 133. If a majority of the votes cast on the question is yes, the amendment to the Sales and Use Tax Act of 1955 becomes effective on January 1, 2006. If less than a majority of votes cast on the question is yes, the question fails and the amendment to the Sales and Use Tax Act of 1955 does not become effective.

      Sec. 134.  All general election laws not inconsistent with this act are applicable.

      Sec. 135.  Any informalities, omissions or defects in the content or making of the publications, proclamations or notices provided for in this act and by the general election laws under which this election is held must be so construed as not to invalidate the adoption of the act by a majority of the registered voters voting on the question if it can be ascertained with reasonable certainty from the official returns transmitted to the Office of the Secretary of State whether the proposed amendment was adopted by a majority of those registered voters.

      Sec. 136.  1.  Except as otherwise provided in this section, the Department of Taxation shall waive the amount of any sales and use taxes, and any penalties and interest thereon, otherwise due in this state from a seller at the time the seller registers pursuant to section 9 of this act if the seller:

      (a) During the year 2005:

             (1) Did not hold a seller’s permit issued pursuant to chapter 372 or 374 of NRS; and

             (2) Was not registered as a retailer pursuant to chapter 372 or 374 of NRS;

      (b) Registers pursuant to section 9 of this act no later than December 31, 2006; and

      (c) Remains registered pursuant to section 9 of this act for at least 36 months and collects and remits to this state all sales and use taxes due in this state for that period.

Each statutory period of limitation applicable to any procedure or proceeding for the collection or enforcement of any sales or use tax due from a seller at the time the seller registers as provided in paragraph (b) is tolled for 36 months from the commencement of that registration.


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ê2003 Statutes of Nevada, Page 2409 (Chapter 400, AB 514)ê

 

the time the seller registers as provided in paragraph (b) is tolled for 36 months from the commencement of that registration.

      2.  The Department of Taxation shall not, pursuant to this section, waive any liability of a seller:

      (a) Regarding any matter for which the seller received notice of the commencement of an audit which, including any related administrative and judicial procedures, has not been finally resolved before the registration of the seller pursuant to section 9 of this act.

      (b) For any sales and use taxes collected by the seller or paid or remitted to the State before the registration of the seller pursuant to section 9 of this act.

      (c) For any fraud or material misrepresentation of a material fact committed by the seller.

      (d) For any sales or use taxes due from the seller in his capacity as a buyer and not as a seller.

      3.  For the purposes of this section, the words and terms defined in NRS 360B.040 to 360B.100, inclusive, as amended by this act, have the meanings ascribed to them in those sections.

      Sec. 137.  The amendatory provisions of sections 83, 84, 85, 87 to 92, inclusive, and 94 to 101, inclusive, of this act do not apply to any ordinance enacted before January 1, 2006.

      Sec. 138.  NRS 374.107, 374.112, 374.113, 374.286, 374.291, 374.2911, 374.322 and 374.323 are hereby repealed.

      Sec. 139.  1.  This section and section 102 of this act become effective upon passage and approval.

      2.  Sections 103 to 135, inclusive, of this act become effective on July 1, 2003.

      3.  Sections 1 to 29, inclusive, 32 to 38, inclusive, 40 to 50, inclusive, 52 to 57, inclusive, 66, 67, 69 to 72, inclusive, 74 to 80, inclusive, 83, 84, 85, 87 to 92, inclusive, 94 to 101, inclusive, 136 and 137 of this act become effective:

      (a) Upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On January 1, 2006, for all other purposes.

      4.  Sections 30 and 39 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is approved by the voters at the general election on November 2, 2004.

      5.  Sections 31, 51, 58 to 65, inclusive, 68, 73, 81, 82, 86, 93 and 138 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is not approved by the voters at the general election on November 2, 2004.

________

 


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ê2003 Statutes of Nevada, Page 2410ê

 

CHAPTER 401, AB 425

Assembly Bill No. 425–Assemblyman Parks

 

CHAPTER 401

 

AN ACT relating to public works; providing for a hearing for unsuccessful bidders; revising the exemption of contracts necessary to contend with certain emergencies from the requirements relating to contracts for public works; authorizing a public body to require a person who is found to have failed to pay the prevailing wage to pay the costs incurred by the public body for its investigation; revising the provisions governing the criteria for determining the qualification of bidders on public works of local governments; revising certain provisions regarding advertising for bids; removing certain provisions regarding the maintenance of lists of licensed contractors by public bodies for bidding on certain contracts; revising provisions governing the naming of subcontractors; requiring an authorized representative to make certain reports to public bodies regarding certain contracts; revising certain provisions regarding objections to the award of a certificate of eligibility for a preference in bidding; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 338 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A person who bids on a contract may file a notice of protest regarding the awarding of the contract with the authorized representative designated by the public body within 5 business days after the date the bids were opened by the public body or its authorized representative.

      2.  The notice of protest must include a written statement setting forth with specificity the reasons the person filing the notice believes the applicable provisions of law were violated.

      3.  A person filing a notice of protest may be required by the public body or its authorized representative, at the time the notice of protest is filed, to post a bond with a good and solvent surety authorized to do business in this state or submit other security, in a form approved by the public body, to the public body who shall hold the bond or other security until a determination is made on the protest. A bond posted or other security submitted with a notice of protest must be in an amount equal to the lesser of:

      (a) Twenty-five percent of the total value of the bid submitted by the person filing the notice of protest; or

      (b) Two hundred fifty thousand dollars.

      4.  A notice of protest filed in accordance with the provisions of this section operates as a stay of action in relation to the awarding of any contract until a determination is made by the public body on the protest.

      5.  A person who makes an unsuccessful bid may not seek any type of judicial intervention until the public body has made a determination on the protest and awarded the contract.


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ê2003 Statutes of Nevada, Page 2411 (Chapter 401, AB 425)ê

 

      6.  Neither a public body nor any authorized representative of the public body is liable for any costs, expenses, attorney’s fees, loss of income or other damages sustained by a person who makes a bid, whether or not the person files a notice of protest pursuant to this section.

      7.  If the protest is upheld, the bond posted or other security submitted with the notice of protest must be returned to the person who posted the bond or submitted the security. If the protest is rejected, a claim may be made against the bond or other security by the public body in an amount equal to the expenses incurred by the public body because of the unsuccessful protest. Any money remaining after the claim has been satisfied must be returned to the person who posted the bond or submitted the security.

      Sec. 2.  NRS 338.010 is hereby amended to read as follows:

      338.010  As used in this chapter:

      1.  “Authorized representative” means a person designated by a governing body to be responsible for the development and award of contracts for public works pursuant to this chapter.

      2.  “Contract” means a written contract entered into between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work.

      3.  “Contractor” means:

      (a) A person who is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS.

      (b) A design-build team.

      4.  “Day labor” means all cases where public bodies, their officers, agents or employees, hire, supervise and pay the wages thereof directly to a workman or workmen employed by them on public works by the day and not under a contract in writing.

      [2.] 5.  “Design-build contract” means a contract between a public body and a design-build team in which the design-build team agrees to design and construct a public work.

      [3.] 6.  “Design-build team” means an entity that consists of:

      (a) At least one person who is licensed as a general engineering contractor or a general building contractor pursuant to chapter 624 of NRS; and

      (b) For a public work that consists of:

             (1) A building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS.

             (2) Anything other than a building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or landscape architecture pursuant to chapter 623A of NRS or who is licensed as a professional engineer pursuant to chapter 625 of NRS.

      [4.] 7.  “Design professional” means:

      (a) A person who is licensed as a professional engineer pursuant to chapter 625 of NRS;

      (b) A person who is licensed as a professional land surveyor pursuant to chapter 625 of NRS;

      (c) A person who holds a certificate of registration to engage in the practice of architecture , interior design or residential design pursuant to chapter 623 of NRS;


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ê2003 Statutes of Nevada, Page 2412 (Chapter 401, AB 425)ê

 

      (d) A person who holds a certificate of registration to engage in the practice of landscape architecture pursuant to chapter 623A of NRS; or

      (e) A business entity that engages in the practice of professional engineering, land surveying, architecture or landscape architecture.

      [5.] 8.  “Eligible bidder” means a person who is:

      (a) Found to be a responsible and responsive contractor by a local government or its authorized representative which requests bids for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373; or

      (b) Determined by a public body or its authorized representative which awarded a contract for a public work pursuant to NRS 338.1375 to 338.139, inclusive, to be qualified to bid on that contract pursuant to NRS 338.1379 . [or was exempt from meeting such qualifications pursuant to NRS 338.1383.

      6.] 9.  “General contractor” means a person who is licensed to conduct business in one, or both, of the following branches of the contracting business:

      (a) General engineering contracting, as described in subsection 2 of NRS 624.215.

      (b) General building contracting, as described in subsection 3 of NRS 624.215.

      10.  “Governing body” means the board, council, commission or other body in which the general legislative and fiscal powers of a local government are vested.

      [7.] 11.  “Local government” means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 538, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision.

      [8.] 12.  “Offense” means failing to:

      (a) Pay the prevailing wage required pursuant to this chapter;

      (b) Pay the contributions for unemployment compensation required pursuant to chapter 612 of NRS;

      (c) Provide and secure compensation for employees required pursuant to chapters 616A to 617, inclusive, of NRS; or

      (d) Comply with subsection 4 or 5 of NRS 338.070.

      [9.] 13.  “Prime contractor” means a [person] contractor who:

      (a) Contracts to construct an entire project;

      (b) Coordinates all work performed on the entire project;

      (c) Uses his own workforce to perform all or a part of the [construction, repair or reconstruction of the project;] public work; and

      (d) Contracts for the services of any subcontractor or independent contractor or is responsible for payment to any contracted subcontractors or independent contractors.

The term includes, without limitation, a general contractor or a specialty contractor who is authorized to bid on a project pursuant to NRS 338.139 or 338.148.

      [10.] 14.  “Public body” means the State, county, city, town, school district or any public agency of this state or its political subdivisions sponsoring or financing a public work.


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ê2003 Statutes of Nevada, Page 2413 (Chapter 401, AB 425)ê

 

      [11.] 15.  “Public work” means any project for the new construction, repair or reconstruction of:

      (a) A project financed in whole or in part from public money for:

             (1) Public buildings;

             (2) Jails and prisons;

             (3) Public roads;

             (4) Public highways;

             (5) Public streets and alleys;

             (6) Public utilities ; [which are financed in whole or in part by public money;]

             (7) Publicly owned water mains and sewers;

             (8) Public parks and playgrounds;

             (9) Public convention facilities which are financed at least in part with public funds; and

             (10) All other publicly owned works and property . [whose cost as a whole exceeds $20,000. Each separate unit that is a part of a project is included in the cost of the project to determine whether a project meets that threshold.]

      (b) A building for the University and Community College System of Nevada of which 25 percent or more of the costs of the building as a whole are paid from money appropriated by this state or from federal money.

      [12.] 16.  “Specialty contractor” means a person who is licensed to conduct business as described in subsection 4 of NRS 624.215.

      [13.] 17.  “Stand-alone underground utility project” means an underground utility project that is not integrated into a larger project, including, without limitation:

      (a) An underground sewer line or an underground pipeline for the conveyance of water, including facilities appurtenant thereto; and

      (b) A project for the construction or installation of a storm drain, including facilities appurtenant thereto,

that is not located at the site of a public work for the design and construction of which a public body is authorized to contract with a design-build team pursuant to subsection 2 of NRS 338.1711.

      [14.] 18.  “Subcontract” means a written contract entered into between:

      (a) A contractor and a subcontractor or supplier; or

      (b) A subcontractor and another subcontractor or supplier, for the provision of labor, materials, equipment or supplies for a construction project.

      19.  “Subcontractor” means a person who:

      (a) Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS; and

      (b) Contracts with a contractor, another subcontractor or a supplier to provide labor, materials or services for a construction project.

      20.  “Supplier” means a person who provides materials, equipment or supplies for a construction project.

      21.  “Wages” means:

      (a) The basic hourly rate of pay; and

      (b) The amount of pension, health and welfare, vacation and holiday pay, the cost of apprenticeship training or other similar programs or other bona fide fringe benefits which are a benefit to the workman.


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ê2003 Statutes of Nevada, Page 2414 (Chapter 401, AB 425)ê

 

      [15.] 22.  “Workman” means a skilled mechanic, skilled workman, semiskilled mechanic, semiskilled workman or unskilled workman. The term does not include a design professional.

      Sec. 3.  NRS 338.011 is hereby amended to read as follows:

      338.011  The requirements of this chapter do not apply to a contract [awarded in compliance with chapter 332 or 333 of NRS which is:

      1.  Directly] :

      1.  Awarded in compliance with chapter 332 or 333 of NRS which is directly related to the normal operation of the public body or the normal maintenance of its property.

      2.  Awarded to meet an emergency which results from a natural or man-made disaster and which threatens the health, safety or welfare of the public. If the public body or its authorized representative determines that an emergency exists, a contract or contracts necessary to contend with the emergency may be let without complying with the requirements of this chapter. If such emergency action was taken by the authorized representative, the authorized representative shall report the contract or contracts to the public body at the next regularly scheduled meeting of the public body.

      Sec. 4.  NRS 338.013 is hereby amended to read as follows:

      338.013  1.  A public body that advertises for bids for a public work shall request from the Labor Commissioner, and include in the advertisement, an identifying number with his designation of the work. That number must be included in any bid submitted in response to the advertisement.

      2.  Each public body which awards a contract for any public work shall report its award to the Labor Commissioner within 10 days after the award, giving the name and address of [each contractor who will be engaged on the work] the contractor to whom the public body awarded the contract and the identifying number [.] for the public work.

      3.  Each contractor engaged on a public work shall report to the Labor Commissioner and the public body that awarded the contract the name and address of each subcontractor whom he engages for work on the project within 10 days after the subcontractor commences work on the contract [.] and the identifying number for the public work.

      4.  The public body which awarded the contract shall report the completion of all work performed under the contract to the Labor Commissioner before the final payment of money due the contractor by the public body.

      Sec. 5.  NRS 338.030 is hereby amended to read as follows:

      338.030  1.  The public body awarding any contract for public work, or otherwise undertaking any public work, shall ascertain from the Labor Commissioner the prevailing wage in the county in which the public work is to be performed for each craft or type of work.

      2.  To establish a prevailing wage in each county, including Carson City, the Labor Commissioner shall, annually, survey contractors who have performed work in the county. Within 30 days after the determination is issued:

      (a) A public body or person entitled under subsection 5 to be heard may submit an objection to the Labor Commissioner with evidence to substantiate that a different wage prevails; and


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ê2003 Statutes of Nevada, Page 2415 (Chapter 401, AB 425)ê

 

      (b) Any person may submit information to the Labor Commissioner that would support a change in the prevailing wage of a craft or type of work by 50 cents or more per hour in any county.

      3.  The Labor Commissioner shall hold a hearing in the locality in which the work is to be executed if he:

      (a) Is in doubt as to the prevailing wage; or

      (b) Receives an objection or information pursuant to subsection 2.

The Labor Commissioner may hold only one hearing a year on the prevailing wage of any craft or type of work in any county.

      4.  Notice of the hearing must be advertised in a newspaper nearest to the locality of the work once a week for 2 weeks before the time of the hearing.

      5.  At the hearing, any public body, the crafts affiliated with the state federation of labor or other recognized national labor organizations, and the contractors of the locality or their representatives must be heard. From the evidence presented, the Labor Commissioner shall determine the prevailing wage.

      6.  The wages so determined must be filed by the Labor Commissioner and must be available to any public body which awards a contract for any public work.

      7.  Nothing contained in NRS 338.020 to 338.090, inclusive, may be construed to authorize the fixing of any wage below any rate which may now or hereafter be established as a minimum wage for any person employed upon any public work, or employed by any officer or agent of any [political subdivision of the State of Nevada.] public body.

      Sec. 6.  NRS 338.035 is hereby amended to read as follows:

      338.035  The obligation of a contractor engaged on a public work or subcontractor engaged on a public work to pay wages in accordance with the determination of the Labor Commissioner may be discharged by the making of payments in cash, or by making contributions to a third person pursuant to a fund, plan or program in the name of the workman.

      Sec. 7.  NRS 338.060 is hereby amended to read as follows:

      338.060  1.  A contractor engaged on a public [works] work shall forfeit, as a penalty to the public body [in] on behalf of which the contract has been made and awarded to the contractor, not less than $20 nor more than $50 for each calendar day or portion thereof that each workman employed on the public work:

      (a) Is paid less than the designated rate for any work done under the contract, by the contractor or any subcontractor [under him.] engaged on the public work.

      (b) Is not reported to the public body awarding the contract as required pursuant to NRS 338.070.

The public body awarding the contract shall cause a stipulation to this effect to be inserted in the contract.

      2.  The Labor Commissioner shall, by regulation, establish a sliding scale based on the size of the [contractor’s] business of a contractor engaged on a public work to determine the amount of the penalty to be imposed pursuant to subsection 1.

      3.  If a penalty is imposed pursuant to this section, the costs of the proceeding, including investigative costs and attorney’s fees, may be recovered by the Labor Commissioner [.] and the public body.


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ê2003 Statutes of Nevada, Page 2416 (Chapter 401, AB 425)ê

 

      Sec. 8.  NRS 338.070 is hereby amended to read as follows:

      338.070  1.  Any public body [and its officers or agents] awarding a contract shall:

      (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; and

      (b) When making payments to the contractor engaged on the public work of money becoming due under the contract, withhold and retain all sums forfeited pursuant to the provisions of NRS 338.010 to 338.090, inclusive.

      2.  No sum may be withheld, retained or forfeited, except from the final payment, without a full investigation being made by the awarding public body . [or its agents.]

      3.  It is lawful for any contractor engaged on a public work to withhold from any subcontractor [under him] engaged on the public work sufficient sums to cover any penalties withheld from [him] the contractor by the awarding public body on account of the failure of the subcontractor to comply with the terms of NRS 338.010 to 338.090, inclusive. If payment has already been made to the subcontractor, the contractor may recover from [him] the subcontractor the amount of the penalty or forfeiture in a suit at law.

      4.  [The] A contractor engaged on a public work and each subcontractor engaged on the public work shall keep or cause to be kept an accurate record showing the name, the occupation and the actual per diem, wages and benefits paid to each workman employed by [him] the contractor and subcontractor in connection with the public work.

      5.  The record maintained pursuant to subsection 4 must be open at all reasonable hours to the inspection of the public body awarding the contract . [, and its officers and agents.] The contractor engaged on the public work or subcontractor engaged on the public work shall ensure that a copy of the record for each calendar month is received by the public body awarding the contract no later than [10] 15 days after the end of the month. The copy must be open to public inspection as provided in NRS 239.010. The record in the possession of the public body awarding the contract may be discarded by the public body 2 years after final payment is made by the public body for the public work.

      6.  Any contractor or subcontractor, or agent or representative thereof, performing work for a public work who neglects to comply with the provisions of this section is guilty of a misdemeanor.

      Sec. 9.  NRS 338.080 is hereby amended to read as follows:

      338.080  None of the provisions of NRS 338.020 to 338.090, inclusive, apply to:

      1.  Any work, construction, alteration, repair or other employment performed, undertaken or carried out, by or for any railroad company or any person operating the same, whether such work, construction, alteration or repair is incident to or in conjunction with a contract to which [this state or any of its political subdivisions] a public body is a party, or otherwise.

      2.  Apprentices recorded under the provisions of chapter 610 of NRS.

      3.  Any contract for a public work whose cost is less than $100,000. A unit of the project must not be separated from the total project, even if that unit is to be completed at a later time, in order to lower the cost of the project below $100,000.


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ê2003 Statutes of Nevada, Page 2417 (Chapter 401, AB 425)ê

 

unit is to be completed at a later time, in order to lower the cost of the project below $100,000.

      Sec. 10.  NRS 338.090 is hereby amended to read as follows:

      338.090  1.  Any person, including the officers, agents or employees of a public body, who violates any of the provisions of NRS 338.010 to 338.090, inclusive, or any regulation adopted pursuant thereto, is guilty of a misdemeanor.

      2.  The Labor Commissioner, in addition to any other penalty provided in this chapter:

      (a) Shall assess a person who, after a hearing, is found to have failed to pay the prevailing wage required pursuant to NRS 338.020 to 338.090, inclusive, an amount equal to the difference between the prevailing wages required to be paid and the wages [he] that the contractor or subcontractor actually paid; and

      (b) May, in addition, impose an administrative fine not to exceed the costs [he] incurred by the Labor Commissioner to investigate and prosecute the matter.

      3.  If the Labor Commissioner finds that a person has failed to pay the prevailing wage required pursuant to NRS 338.020 to 338.090, inclusive, the public body may, in addition to any other penalty or administrative fine provided in this chapter, require the person to pay the actual costs incurred by the public body to investigate the matter.

      Sec. 11.  NRS 338.125 is hereby amended to read as follows:

      338.125  1.  It is unlawful for any contractor in connection with the performance of work under a contract with [the State, or any of its political subdivisions,] a public body, when payment of the contract price, or any part of such payment, is to be made from public money, to refuse to employ or to discharge from employment any person because of his race, color, creed, national origin, sex, sexual orientation or age, or to discriminate against a person with respect to hire, tenure, advancement, compensation or other terms, conditions or privileges of employment because of his race, creed, color, national origin, sex, sexual orientation or age.

      2.  Contracts [negotiated] between contractors and [the State, or any of its political subdivisions,] public bodies must contain the following contractual provisions:

 

      In connection with the performance of work under this contract, the contractor agrees not to discriminate against any employee or applicant for employment because of race, creed, color, national origin, sex, sexual orientation or age, including, without limitation, with regard to employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including, without limitation, apprenticeship.

      The contractor further agrees to insert this provision in all subcontracts hereunder, except subcontracts for standard commercial supplies or raw materials.

 

      3.  Any violation of such provision by a contractor constitutes a material breach of contract.


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ê2003 Statutes of Nevada, Page 2418 (Chapter 401, AB 425)ê

 

      4.  As used in this section, “sexual orientation” means having or being perceived as having an orientation for heterosexuality, homosexuality or bisexuality.

      Sec. 12.  NRS 338.130 is hereby amended to read as follows:

      338.130  1.  In all cases where persons are employed in the construction of public works, preference [shall] must be given [,] by a public body, the qualifications of the applicants being equal:

      (a) First: To honorably discharged soldiers, sailors and marines of the United States who are citizens of the State of Nevada.

      (b) Second: To other citizens of the State of Nevada.

      2.  Nothing in this section shall be construed to prevent the working of prisoners by [the State of Nevada, or by any political subdivision of the State, on street or road work or other] a public body on a public work.

      3.  In each contract for the construction of public works a [proviso shall] clause must be inserted to the effect that if the provisions of this section are not complied with by the contractor [,] engaged on the public work, the contract [shall be] is void, and any failure or refusal to comply with any of the provisions of this section [shall render] renders any such contract void. All boards, commissions, officers, agents and employees having the power to enter into contracts for the expenditure of public money on public works shall file in the Office of the Labor Commissioner the names and addresses of all contractors holding contracts with the [State of Nevada, or with any political subdivision of the State. Upon] public body and upon the letting of new contracts the names and addresses of such new contractors [shall] must likewise be filed [.] with the Labor Commissioner. Upon the demand of the Labor Commissioner , a contractor shall furnish a list of the names and addresses of all subcontractors [in his employ.] employed by the contractor engaged on a public work.

      4.  Subject to the exceptions contained in this section, no money [shall] may be paid out of the State Treasury or out of the treasury of any political subdivision of the State to any person employed on any work mentioned in this section unless there has been compliance with the provisions of this section.

      5.  Any contractor [with the State of Nevada or with any political subdivision of the State] engaged on a public work or any other person who violates any of the provisions of this section [shall be] is guilty of a misdemeanor. The penalties provided for in this section [shall] do not apply where violations thereof are due to misrepresentations made by the employee or employees.

      Sec. 13.  NRS 338.1373 is hereby amended to read as follows:

      338.1373  1.  A local government or its authorized representative shall award a contract for [the construction, alteration or repair of] a public work pursuant to the provisions of:

      (a) NRS 338.1377 to 338.139, inclusive; [or]

      (b) NRS 338.143 to 338.148, inclusive [.] ; or

      (c) NRS 338.1711 to 338.1727, inclusive.

      2.  The provisions of section 1 of this act and NRS 338.1375 to [338.1383,] 338.1381, inclusive, and 338.139 and 338.1711 to 338.1727, inclusive, do not apply with respect to contracts for the construction, reconstruction, improvement and maintenance of highways that are awarded by the Department of Transportation pursuant to NRS 408.313 to 408.433, inclusive.


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ê2003 Statutes of Nevada, Page 2419 (Chapter 401, AB 425)ê

 

      Sec. 14.  NRS 338.1375 is hereby amended to read as follows:

      338.1375  1.  The State Public Works Board shall not accept a bid on a contract for a public work unless the [person] contractor who submits the bid has qualified pursuant to NRS 338.1379 to bid on that contract.

      2.  The State Public Works Board shall by regulation adopt criteria for the qualification of bidders on contracts for public works of this state. The criteria adopted by the State Public Works Board pursuant to this section must be used by the State Public Works Board to determine the qualification of bidders on contracts for public works of this state.

      3.  The criteria adopted by the State Public Works Board pursuant to this section:

      (a) Must be adopted in such a form that the determination of whether an applicant is qualified to bid on a contract for a public work does not require or allow the exercise of discretion by any one person.

      (b) May include only:

             (1) The financial ability of the applicant to perform a contract;

             (2) The principal personnel of the applicant;

             (3) Whether the applicant has breached any contracts with a public [agency] body or person in this state or any other state;

             (4) Whether the applicant has been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.1387; and

             (5) The performance history of the applicant concerning other recent, similar contracts, if any, completed by the applicant.

      Sec. 15.  NRS 338.1377 is hereby amended to read as follows:

      338.1377  [1.  Except as otherwise provided in NRS 338.1383,] If the governing body of [each] a local government that sponsors or finances a public work elects to award contracts for public works pursuant to the provisions of NRS 338.1377 to 338.139, inclusive, the governing body shall adopt the following criteria for [the qualification of bidders] determining whether a person who has applied pursuant to NRS 338.1379 is qualified to bid on contracts for public works of the local government [. The governing body shall use the criteria to determine the qualification of bidders on contracts for public works of the local government.

      2.  Before adopting criteria pursuant to this section, the governing body of a local government shall hold at least one public hearing to solicit and evaluate public opinion regarding the criteria to be adopted. Notice of such a hearing must be provided by mail at least 10 days before the hearing to:

      (a) Construction trade associations in this state; and

      (b) Labor unions representing trades in the building industry in this state.

      3.  The criteria adopted by a governing body pursuant to this section to determine whether an applicant is qualified to bid on a contract for a public work:

      (a) Must be adopted in such a form that the determination of whether an applicant is qualified to bid on a contract for a public work does not require or allow the exercise of discretion by any one person.

      (b) May include only:

             (1) The financial ability of the applicant to perform a contract;

             (2) The principal personnel of the applicant;

             (3)] :

      1.  Whether the applicant possesses a valid contractor’s license of a class corresponding to the work to be required by the local government;


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ê2003 Statutes of Nevada, Page 2420 (Chapter 401, AB 425)ê

 

      2.  Whether the applicant has the ability to obtain the necessary bonding for the work to be required by the local government;

      3.  Whether the applicant has successfully completed one or more projects during the 5 years immediately preceding the date of application of similar size, scope or type as the work to be required by the local government;

      4.  Whether the principal personnel employed by the applicant have the necessary professional qualifications and experience for the work to be required by the local government;

      5.  Whether the applicant has breached any contracts with a public agency or person in this state or any other state [; and

             (4)] during the 5 years immediately preceding the date of application;

      6.  Whether the applicant has been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.1387 [.] ;

      7.  Whether the applicant has been convicted of a violation for discrimination in employment during the 2 years immediately preceding the date of application;

      8.  Whether the applicant has the ability to obtain and maintain insurance coverage for public liability and property damage within limits sufficient to protect the applicant and all the subcontractors of the applicant from claims for personal injury, accidental death and damage to property that may arise in connection with the work to be required by the local government;

      9.  Whether the applicant has established a safety program that complies with the requirements of chapter 618 of NRS;

      10.  Whether the applicant has been disciplined or fined by the State Contractors’ Board or another state or federal agency for conduct that relates to the ability of the applicant to perform the work to be required by the local government;

      11.  Whether, during the 5 years immediately preceding the date of application, the applicant has filed as a debtor under the provisions of the United States Bankruptcy Code;

      12.  Whether the application of the applicant is truthful and complete; and

      13.  Whether, during the 5 years immediately preceding the date of application, the applicant has, as a result of causes within the control of the applicant or a subcontractor or supplier of the applicant, failed to perform any contract:

      (a) In the manner specified by the contract and any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative;

      (b) Within the time specified by the contract unless extended by the person or governmental entity that awarded the contract or its authorized representative; or

      (c) For the amount of money specified in the contract or as modified by any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative.

Evidence of the failures described in this subsection may include, without limitation, the assessment of liquidated damages against the applicant, the forfeiture of any bonds posted by the applicant, an arbitration award granted against the applicant or a decision by a court of law against the applicant.


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ê2003 Statutes of Nevada, Page 2421 (Chapter 401, AB 425)ê

 

granted against the applicant or a decision by a court of law against the applicant.

      Sec. 16.  NRS 338.1379 is hereby amended to read as follows:

      338.1379  1.  [Except as otherwise provided in NRS 338.1383, a person] A contractor who wishes to qualify as a bidder on a contract for a public work must submit an application to the State Public Works Board or the governing body.

      2.  Upon receipt of an application pursuant to subsection 1, the State Public Works Board or the governing body shall:

      (a) Investigate the applicant to determine whether he is qualified to bid on a contract; and

      (b) After conducting the investigation, determine whether the applicant is qualified to bid on a contract. The determination must be made within [30] 45 days after receipt of the application.

      3.  The State Public Works Board or the governing body shall notify each applicant in writing of its determination. If an application is denied, the notice must set forth the reasons for the denial and inform the applicant of his right to a hearing pursuant to NRS 338.1381.

      4.  The State Public Works Board or the governing body [of a local government] may determine an applicant is qualified to bid:

      (a) On a specific project;

      (b) On more than one project over a period of 12 months; or

      (c) On more than one project over a period of 24 months.

      5.  The State Public Works Board shall not use any criteria other than criteria adopted by regulation pursuant to NRS 338.1375 in determining whether to approve or deny an application.

      6.  The governing body [of a local government] shall not use any criteria other than the criteria described in NRS 338.1377 in determining whether to approve or deny an application.

      7.  Financial information and other data pertaining to the net worth of an applicant which is gathered by or provided to the State Public Works Board or a governing body to determine the financial ability of an applicant to perform a contract is confidential and not open to public inspection.

      Sec. 17.  NRS 338.1381 is hereby amended to read as follows:

      338.1381  1.  If, within 10 days after receipt of the notice denying his application [,] pursuant to NRS 338.1379, the applicant files a written request for a hearing with the State Public Works Board or the governing body , [of the local government,] the Board or governing body shall set the matter for a hearing within [10] 20 days after receipt of the request. The hearing must be held not later than [20] 45 days after the receipt of the request for a hearing.

      2.  The hearing must be held at a time and place prescribed by the Board or governing body. At least 10 days before the date set for the hearing, the Board or governing body shall serve the applicant with written notice of the hearing. The notice may be served by personal delivery to the applicant or by certified mail to the last known business or residential address of the applicant.

      3.  The Board or governing body shall issue a decision [on the matter within 5 days after] at the hearing . [and notify the applicant, in writing, of its decision within 5 days after it is issued.] The decision of the Board or governing body is a final decision for purposes of judicial review.


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ê2003 Statutes of Nevada, Page 2422 (Chapter 401, AB 425)ê

 

      Sec. 18.  NRS 338.1385 is hereby amended to read as follows:

      338.1385  1.  Except as otherwise provided in subsection [7] 8 and NRS 338.1906 and 338.1907, this state, or the governing body of a local government or its authorized representative that awards a contract for [the construction, alteration or repair of] a public work in accordance with paragraph (a) of subsection 1 of NRS 338.1373, [or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents the State or the local government,] shall not:

      (a) Commence [such a project] a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper [of general circulation in this state] qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the [project; or] public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.

      (b) Divide [such a project] a public work into separate portions to avoid the requirements of paragraph (a).

      2.  [Except as otherwise provided in subsection 7, a public body that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The public body shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the public body to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.] At least once each quarter, the authorized representative of a public body shall report to the public body any contract that he awarded pursuant to subsection 1 in the immediately preceding quarter.

      3.  Each advertisement for bids must include a provision that sets forth [:

      (a) The] the requirement that a contractor must be qualified pursuant to NRS 338.1379 to bid on the contract . [or must be exempt from meeting such qualifications pursuant to NRS 338.1383; and

      (b) The period during which an application to qualify as a bidder on the contract must be submitted.]

      4.  Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

      5.  Except as otherwise provided in subsection 6 and NRS 338.1389, a public body shall award a contract to the lowest responsive and responsible bidder.

      6.  Any bids received in response to an advertisement for bids may be rejected if the [person] public body or its authorized representative responsible for awarding the contract determines that:


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ê2003 Statutes of Nevada, Page 2423 (Chapter 401, AB 425)ê

 

      (a) The bidder is not a qualified bidder pursuant to NRS 338.1379 ; [, unless the bidder is exempt from meeting such qualifications pursuant to NRS 338.1383;]

      (b) The bidder is not responsive [;] or responsible;

      (c) The quality of the services, materials, equipment or labor offered does not conform to the approved [plan] plans or specifications; or

      (d) The public interest would be served by such a rejection.

      [6.  Before the State or a local government may]

      7.  Before a public body may commence the performance of a [project subject] public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, [it] the public body shall prepare and make available for public inspection a written statement containing:

      (a) A list of all persons, including supervisors, whom the [State or the local government] public body intends to assign to the [project,] public work, together with their classifications and an estimate of the direct and indirect costs of their labor;

      (b) A list of all equipment that the [State or the local government] public body intends to use on the [project,] public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

      (c) An estimate of the cost of administrative support for the persons assigned to the [project;] public work;

      (d) An estimate of the total cost of the [project;] public work, including the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and

      (e) An estimate of the amount of money the [State or the local government] public body expects to save by rejecting the bids and performing the [project itself.

      7.] public work itself.

      8.  This section does not apply to:

      (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

      (b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

      (c) Normal maintenance of the property of a school district;

      (d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or

      (e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727.

      Sec. 19.  NRS 338.1385 is hereby amended to read as follows:

      338.1385  1.  Except as otherwise provided in subsection 8, this state, or the governing body of a local government or its authorized representative that awards a contract for [the construction, alteration or repair of] a public work in accordance with paragraph (a) of subsection 1 of NRS 338.1373, [or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents the State or the local government,] shall not:

      (a) Commence [such a project] a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper [of general circulation in this state] qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the [project; or] public work.


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ê2003 Statutes of Nevada, Page 2424 (Chapter 401, AB 425)ê

 

circulation in this state] qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the [project; or] public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and having a general circulation within the county.

      (b) Divide [such a project] a public work into separate portions to avoid the requirements of paragraph (a).

      2.  [Except as otherwise provided in subsection 8, a public body that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The public body shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the public body to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.] At least once each quarter, the authorized representative of a public body shall report to the public body any contract that he awarded pursuant to subsection 1 in the immediately preceding quarter.

      3.  Each advertisement for bids must include a provision that sets forth [:

      (a) The] the requirement that a contractor must be qualified pursuant to NRS 338.1379 to bid on the contract . [or must be exempt from meeting such qualifications pursuant to NRS 338.1383; and

      (b) The period during which an application to qualify as a bidder on the contract must be submitted.]

      4.  Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

      5.  Except as otherwise provided in subsection 6 and NRS 338.1389, a public body shall award a contract to the lowest responsive and responsible bidder.

      6.  Any bids received in response to an advertisement for bids may be rejected if the [person] public body or its authorized representative responsible for awarding the contract determines that:

      (a) The bidder is not a qualified bidder pursuant to NRS 338.1379 ; [, unless the bidder is exempt from meeting such qualifications pursuant to NRS 338.1383;]

      (b) The bidder is not responsive [;] or responsible;

      (c) The quality of the services, materials, equipment or labor offered does not conform to the approved [plan] plans or specifications; or

      (d) The public interest would be served by such a rejection.

      [6.  Before the State or a local government]

      7.  Before a public body may commence the performance of a [project subject] public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, [it] the public body shall prepare and make available for public inspection a written statement containing:


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ê2003 Statutes of Nevada, Page 2425 (Chapter 401, AB 425)ê

 

body shall prepare and make available for public inspection a written statement containing:

      (a) A list of all persons, including supervisors, whom the [State or the local government] public body intends to assign to the [project,] public work, together with their classifications and an estimate of the direct and indirect costs of their labor;

      (b) A list of all equipment that the [State or the local government] public body intends to use on the [project,] public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

      (c) An estimate of the cost of administrative support for the persons assigned to the [project;]

public work;

      (d) An estimate of the total cost of the [project;] public work, including, the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and

      (e) An estimate of the amount of money the [State or the local government] public body expects to save by rejecting the bids and performing the [project itself.

      7.  In preparing the estimated cost of a project pursuant to subsection 6, the State or a local government must include the fair market value of, or, if known, the actual cost of, all materials, supplies, labor and equipment to be used for the project.] public work itself.

      8.  This section does not apply to:

      (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

      (b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

      (c) Normal maintenance of the property of a school district; or

      (d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or

      (e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.

      Sec. 20.  NRS 338.1387 is hereby amended to read as follows:

      338.1387  1.  A public body or its authorized representative awarding a contract for a public work shall not award the contract to a person who, at the time of the bid, is not properly licensed under the provisions of chapter 624 of NRS or if the contract would exceed the limit of his license. A subcontractor [named by the contractor] who is [not] :

      (a) Named in the bid for the contract as a subcontractor who will provide a portion of the work on the public work pursuant to NRS 338.141; and

      (b) Not properly licensed for that portion of the work ,

shall be deemed unacceptable. If the subcontractor is deemed unacceptable [,] pursuant to this subsection, the contractor shall provide an acceptable subcontractor . [before the award of the contract.]

      2.  If, after awarding the contract, but before commencement of the work, the public body or its authorized representative discovers that the person to whom the contract was awarded is not licensed, or that the contract would exceed his license, the public body or its authorized representative shall [reject the bid] rescind the award of the contract and may accept the next lowest bid for that public work from a responsive bidder who was determined by the public body or its authorized representative to be a qualified bidder pursuant to NRS 338.1379 [or was exempt from meeting such qualifications pursuant to NRS 338.1373 or 338.1383] without requiring that new bids be submitted.


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shall [reject the bid] rescind the award of the contract and may accept the next lowest bid for that public work from a responsive bidder who was determined by the public body or its authorized representative to be a qualified bidder pursuant to NRS 338.1379 [or was exempt from meeting such qualifications pursuant to NRS 338.1373 or 338.1383] without requiring that new bids be submitted.

      Sec. 21.  NRS 338.1389 is hereby amended to read as follows:

      338.1389  1.  Except as otherwise provided in subsection 10 and NRS 338.1385 , [and 338.1711 to 338.1727, inclusive,] a public body or its authorized representative shall award a contract for a public work for which the estimated cost exceeds $250,000 to the contractor who submits the best bid.

      2.  Except as otherwise provided in subsection 10 or limited by subsection 11, [for the purposes of this section, a contractor who:

      (a) Has] the lowest bid that is:

      (a) Submitted by a responsive and responsible contractor who:

             (1) Has been determined by the public body to be a qualified bidder pursuant to NRS 338.1379 [or is exempt from meeting such requirements pursuant to NRS 338.1373 or 338.1383; and

      (b) At the time he submits his bid, provides to the public body a copy of] ; and

             (2) At the time he submits his bid, has a valid certificate of eligibility to receive a preference in bidding on public works issued to [him] the contractor by the State Contractors’ Board pursuant to subsection 3 or 4 [,

shall be deemed to have submitted a better bid than a competing contractor who has not provided a copy of such a valid certificate of eligibility if the amount of his bid is not] ; and

      (b) Not more than 5 percent higher than the [amount] bid submitted by the [competing contractor.] lowest responsive and responsible bidder who does not have, at the time he submits his bid, a valid certificate of eligibility to receive a preference in bidding on public works issued to him by the State Contractors’ Board pursuant to subsection 3 or 4,

shall be deemed to be the best bid for the purposes of this section.

      3.  The State Contractors’ Board shall issue a certificate of eligibility to receive a preference in bidding on public works to a general contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an affidavit from a certified public accountant setting forth that the general contractor has, while licensed as a general contractor in this state:

      (a) Paid directly, on his own behalf:

             (1) The sales and use taxes imposed pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;

             (2) The governmental services tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant; or


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ê2003 Statutes of Nevada, Page 2427 (Chapter 401, AB 425)ê

 

immediately preceding the submission of the affidavit from the certified public accountant; or

             (3) Any combination of such sales and use taxes and governmental services tax; or

      (b) Acquired, by purchase, inheritance, gift or transfer through a stock option plan, all the assets and liabilities of a viable, operating construction firm that possesses a:

             (1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

             (2) Certificate of eligibility to receive a preference in bidding on public works.

      4.  The State Contractors’ Board shall issue a certificate of eligibility to receive a preference in bidding on public works to a specialty contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an affidavit from a certified public accountant setting forth that the specialty contractor has, while licensed as a specialty contractor in this state:

      (a) Paid directly, on his own behalf:

             (1) The sales and use taxes pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;

             (2) The governmental services tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant; or

             (3) Any combination of such sales and use taxes and governmental services tax; or

      (b) Acquired, by purchase, inheritance, gift or transfer through a stock option plan, all the assets and liabilities of a viable, operating construction firm that possesses a:

             (1) License as a specialty contractor pursuant to the provisions of chapter 624 of NRS; and

             (2) Certificate of eligibility to receive a preference in bidding on public works.

      5.  For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3 and paragraph (a) of subsection 4, a contractor shall be deemed to have paid:

      (a) Sales and use taxes and governmental services taxes that were paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor or specialty contractor, as applicable; and

      (b) Sales and use taxes that were paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

      6.  A contractor who has received a certificate of eligibility to receive a preference in bidding on public works from the State Contractors’ Board pursuant to subsection 3 or 4 shall, at the time for the annual renewal of his contractor’s license pursuant to NRS 624.283, submit to the Board an affidavit from a certified public accountant setting forth that the contractor has, during the immediately preceding 12 months, paid the taxes required pursuant to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as applicable, to maintain his eligibility to hold such a certificate.


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affidavit from a certified public accountant setting forth that the contractor has, during the immediately preceding 12 months, paid the taxes required pursuant to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as applicable, to maintain his eligibility to hold such a certificate.

      7.  A contractor who fails to submit an affidavit to the Board pursuant to subsection 6 ceases to be eligible to receive a preference in bidding on public works unless he reapplies for and receives a certificate of eligibility pursuant to subsection 3 or 4, as applicable.

      8.  If a contractor holds more than one contractor’s license, he must submit a separate application for each license pursuant to which he wishes to qualify for a preference in bidding. Upon issuance, the certificate of eligibility to receive a preference in bidding on public works becomes part of the contractor’s license for which the contractor submitted the application.

      9.  If a contractor who applies to the State Contractors’ Board for a certificate of eligibility to receive a preference in bidding on public works submits false information to the Board regarding the required payment of taxes, the contractor is not eligible to receive a preference in bidding on public works for a period of 5 years after the date on which the Board becomes aware of the submission of the false information.

      10.  If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of subsection 2, those provisions do not apply insofar as their application would preclude or reduce federal assistance for that work. [The provisions of subsection 2 do not apply to any contract for a public work which is expected to cost less than $250,000.]

      11.  If a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, the [provisions of subsection 2 apply] bid may be deemed the best bid only if both or all of the joint venturers separately meet the requirements of [that subsection.] subsection 2.

      12.  The State Contractors’ Board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

      13.  A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the public body to which the contractor has submitted a bid [or proposal] on a contract for the construction of a public work. A written objection authorized pursuant to this subsection must:

      (a) Set forth proof or substantiating evidence to support the belief of the person or entity that the contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works; and

      (b) Be filed with the public body [at or after the time at which the contractor submitted the bid or proposal to the public body and before the time at which the public body awards the contract for which the bid or proposal was submitted.] not later than 3 business days after the opening of the bids by the public body or its authorized representative.

      14.  If a public body receives a written objection pursuant to subsection 13, the public body shall determine whether the objection is accompanied by the proof or substantiating evidence required pursuant to paragraph (a) of that subsection. If the public body determines that the objection is not accompanied by the required proof or substantiating evidence, the public body shall dismiss the objection and the public body or its authorized representative may proceed immediately to award the contract.


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representative may proceed immediately to award the contract. If the public body determines that the objection is accompanied by the required proof or substantiating evidence, the public body shall determine whether the contractor qualifies for the certificate pursuant to the provisions of this section and the public body or its authorized representative may proceed to award the contract accordingly.

      Sec. 22.  NRS 338.139 is hereby amended to read as follows:

      338.139  1.  A public body or its authorized representative may award a contract for [the construction, alteration or repair of] a public work pursuant to NRS 338.1375 to 338.1389, inclusive, to a specialty contractor if:

      (a) The majority of the work to be performed on the [project] public work to which the contract pertains consists of specialty contracting for which the specialty contractor is licensed; and

      (b) The [project] public work to which the contract pertains is not part of a larger public work.

      2.  If a public body or its authorized representative awards a contract to a specialty contractor pursuant to NRS 338.1375 to 338.1389, inclusive, all work to be performed on the [project] public work to which the contract pertains that is outside the scope of the license of the specialty contractor must be performed by a subcontractor who is licensed to perform such work.

      Sec. 23.  NRS 338.140 is hereby amended to read as follows:

      338.140  1.  [An agency of this state, a political subdivision, municipal corporation or district, a public officer or a person charged with the letting of contracts for the construction, alteration or repair of public works] A public body shall not draft or cause to be drafted specifications for bids, in connection with [the construction, alteration or repair of public works:] a public work:

      (a) In such a manner as to limit the bidding, directly or indirectly, to any one specific concern.

      (b) Except in those instances where the product is designated to match others in use on a particular public improvement either completed or in the course of completion, calling for a designated material, product, thing or service by specific brand or trade name unless the specification lists at least two brands or trade names of comparable quality or utility and is followed by the words “or equal” so that bidders may furnish any equal material, product, thing or service.

      (c) In such a manner as to hold the bidder to whom such contract is awarded responsible for extra costs incurred as a result of errors or omissions by the public [agency] body in the contract documents.

      (d) In such a manner as to require a bidder to furnish to the public [agency,] body, whether before or after the bid is submitted, documents generated in the preparation or determination of prices included in the bid, except when requested by the public [agency] body for:

             (1) A determination of the price of additional work performed pursuant to a change order;

             (2) An evaluation of claims for costs incurred for the performance of additional work;

             (3) Preparation for arbitration or litigation; or

             (4) Any combination thereof.

A document furnished to a public [agency] body pursuant to this paragraph is confidential and must be returned to the bidder.


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      2.  In those cases involving a unique or novel product application required to be used in the public interest, or where only one brand or trade name is known to the [specifying agency,] public body, it may list only one.

      3.  Specifications must provide a period of time of at least 7 days after award of the contract for submission of data substantiating a request for a substitution of “an equal” item.

      Sec. 24.  NRS 338.141 is hereby amended to read as follows:

      338.141  1.  [Except as otherwise provided in subsection 2, each] Each bid submitted to [any officer, department, board or commission for the construction of] a public body for any public work [or improvement] to which paragraph (a) of subsection 1 of NRS 338.1385 or paragraph (a) of subsection 1 of NRS 338.143 applies, must include:

      (a) [The] If the public body provides a list of the labor or portions of the public work which are estimated by the public body to exceed 3 percent of the estimated cost of the public work, the name of each subcontractor who will provide such labor or portion of the work on the public work which is estimated to exceed 3 percent of the estimated cost of the public work; or

      (b) If the public body does not provide a list of the labor or portions of the public work which are estimated by the public body to exceed 3 percent of the estimated cost of the public work, the name of each subcontractor who will provide labor or a portion of the work [or improvement] on the public work to the prime contractor for which [he] the subcontractor will be paid an amount exceeding 5 percent of the prime contractor’s total bid. [Within] If the bid is submitted pursuant to this paragraph, within 2 hours after the completion of the opening of the bids, the contractors who submitted the three lowest bids must submit a list containing the name of each subcontractor who will provide labor or a portion of the work [or improvement] on the public work to the prime contractor for which [he] the subcontractor will be paid an amount exceeding 1 percent of the prime contractor’s total bid or $50,000, whichever is greater, and the number of the license issued to the subcontractor pursuant to chapter 624 of NRS. [If a contractor fails to submit such a list within the required time, his bid shall be deemed not responsive.

      b) A description of the portion of the work or improvement which each subcontractor named in the bid will complete.

      2.  The contractor shall list in his bid pursuant to subsection 1 the name of a subcontractor for each portion of the project that will be completed by a subcontractor.]

      2.  The lists required by subsection 1 must include a description of the labor or portion of the work which each subcontractor named in the list will provide to the prime contractor.

      3.  A prime contractor shall include his name on a list required by paragraph (a) of subsection 1 if he will perform any of the work required to be listed pursuant to paragraph (a) of subsection 1.

      4.  If a prime contractor does not submit a list required by subsection 1, his bid shall be deemed not responsive.

      5.  A contractor whose bid is accepted shall not substitute a subcontractor for any [person for a] subcontractor who is named in the bid, unless:

      (a) The [awarding authority] public body or its authorized representative objects to the subcontractor, requests in writing a change in the subcontractor and pays any increase in costs resulting from the change; or


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ê2003 Statutes of Nevada, Page 2431 (Chapter 401, AB 425)ê

 

the subcontractor and pays any increase in costs resulting from the change; or

      (b) The substitution is approved by the [awarding authority or an] public body or its authorized representative . [of the awarding authority.] The substitution must be approved if the [awarding authority] public body or its authorized representative [of the awarding authority] determines that:

             (1) The named subcontractor, after having a reasonable opportunity, fails or refuses to execute a written contract with the contractor which was offered to the named subcontractor with the same general terms that all other subcontractors on the project were offered;

             (2) The named subcontractor files for bankruptcy or becomes insolvent; [or]

             (3) The named subcontractor fails or refuses to perform his subcontract within a reasonable time or is unable to furnish a performance bond and payment bond pursuant to NRS 339.025 [.

      4.] ; or

             (4) The named subcontractor is not properly licensed to provide that labor or portion of the work.

      6.  If a contractor indicates pursuant to subsection 1 that he will perform a portion of work on the public work and thereafter requests to substitute a subcontractor to perform such work, the contractor shall provide to the public body a written explanation in the form required by the public body which contains the reasons that:

      (a) A subcontractor was not originally contemplated to be used on that portion of the public work; and

      (b) The substitution is in the best interest of the public body.

      7.  As used in this section, “general terms” means the terms and conditions of a contract that set the basic requirements for a [project] public work and apply without regard to the particular trade or specialty of a subcontractor, but does not include any provision that controls or relates to the specific portion of the [project] public work that will be completed by a subcontractor, including, without limitation, the materials to be used by the subcontractor or other details of the work to be performed by the subcontractor.

      Sec. 25.  NRS 338.143 is hereby amended to read as follows:

      338.143  1.  Except as otherwise provided in subsection [6] 7 and NRS 338.1907, a local government or its authorized representative that awards a contract for [the construction, alteration or repair of] a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373 [, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents that local government,] shall not:

      (a) Commence [such a project] a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper [of general circulation in this state] qualified pursuant to chapter 238 of NRS that is published in the county where the project will be performed for bids for the [project; or] public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.

      (b) Divide [such a project] a public work into separate portions to avoid the requirements of paragraph (a).


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ê2003 Statutes of Nevada, Page 2432 (Chapter 401, AB 425)ê

 

      2.  [Except as otherwise provided in subsection 6, a local government that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The local government shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the local government to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.] At least once each quarter, the authorized representative of a local government shall report to the local government any contract that he awarded pursuant to subsection 1 in the immediately preceding quarter.

      3.  Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

      4.  Except as otherwise provided in subsection 5 and NRS 338.147, the local government or its authorized representative shall award a contract to the lowest responsive and responsible bidder.

      5.  Any bids received in response to an advertisement for bids may be rejected if the [person] local government or its authorized representative responsible for awarding the contract determines that:

      (a) The bidder is not responsive or responsible;

      (b) The quality of the services, materials, equipment or labor offered does not conform to the approved [plan] plans or specifications; or

      (c) The public interest would be served by such a rejection.

      [5.] 6.  Before a local government may commence the performance of a [project subject] public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, [it] the local government shall prepare and make available for public inspection a written statement containing:

      (a) A list of all persons, including supervisors, whom the local government intends to assign to the [project,] public work, together with their classifications and an estimate of the direct and indirect costs of their labor;

      (b) A list of all equipment that the local government intends to use on the [project,] public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

      (c) An estimate of the cost of administrative support for the persons assigned to the [project;] public work;

      (d) An estimate of the total cost of the [project;] public work, including the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and

      (e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the [project itself.

      6.] public work itself.

      7.  This section does not apply to:

      (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;


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ê2003 Statutes of Nevada, Page 2433 (Chapter 401, AB 425)ê

 

      (b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

      (c) Normal maintenance of the property of a school district;

      (d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or

      (e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.

      Sec. 26.  NRS 338.143 is hereby amended to read as follows:

      338.143  1.  Except as otherwise provided in subsection 7, a local government or its authorized representative that awards a contract for [the construction, alteration or repair of] a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373 [, or a public officer, public employee or other person responsible for awarding a contract for the construction, alteration or repair of a public work who represents that local government,] shall not:

      (a) Commence [such a project] a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper [of general circulation in this state] qualified pursuant to chapter 238 or NRS that is published in the county where the public work will be performed for bids for the [project; or] public work. If no qualified newspaper is published within the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation within the county.

      (b) Divide [such a project] a public work into separate portions to avoid the requirements of paragraph (a).

      2.  [Except as otherwise provided in subsection 7, a local government that maintains a list of properly licensed contractors who are interested in receiving offers to bid on public works projects for which the estimated cost is more than $25,000 but less than $100,000 shall solicit bids from not more than three of the contractors on the list for a contract of that value for the construction, alteration or repair of a public work. The local government shall select contractors from the list in such a manner as to afford each contractor an equal opportunity to bid on a public works project. A properly licensed contractor must submit a written request annually to the local government to remain on the list. Offers for bids which are made pursuant to this subsection must be sent by certified mail.] At least once each quarter, the authorized representative of a local government shall report to the local government any contract that he awarded pursuant to subsection 1 in the immediately preceding quarter.

      3.  Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the project must be awarded on the basis of bids received.

      4. Except as otherwise provided in subsection 5 and NRS 338.147, the local government or its authorized representative shall award a contract to the lowest responsive and responsible bidder.


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ê2003 Statutes of Nevada, Page 2434 (Chapter 401, AB 425)ê

 

      5.  Any bids received in response to an advertisement for bids may be rejected if the [person] local government or its authorized representative responsible for awarding the contract determines that:

      (a) The bidder is not responsive or responsible;

      (b) The quality of the services, materials, equipment or labor offered does not conform to the approved [plan] plans or specifications; or

      (c) The public interest would be served by such a rejection.

      [5.] 6.  Before a local government may commence the performance of a [project subject] public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, [it] the local government shall prepare and make available for public inspection a written statement containing:

      (a) A list of all persons, including supervisors, whom the local government intends to assign to the [project,] public work, together with their classifications and an estimate of the direct and indirect costs of their labor;

      (b) A list of all equipment that the local government intends to use on the [project,] public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;

      (c) An estimate of the cost of administrative support for the persons assigned to the [project;] public work;

      (d) An estimate of the total cost of the [project;] public work, including the fair market value of or, if known, the actual cost of, all materials, supplies, labor and equipment to be used for the public work; and

      (e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the [project itself.

      6.  In preparing the estimated cost of a project pursuant to subsection 5, a local government must include the fair market value of, or, if known, the actual cost of, all materials, supplies, labor and equipment to be used for the project.] public work itself.

      7.  This section does not apply to:

      (a) Any utility subject to the provisions of chapter 318 or 710 of NRS;

      (b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;

      (c) Normal maintenance of the property of a school district;

      (d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or

      (e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.

      Sec. 27.  NRS 338.145 is hereby amended to read as follows:

      338.145  1.  A local government or its authorized representative awarding a contract for a public work shall not award the contract to a person who, at the time of the bid, is not properly licensed under the provisions of chapter 624 of NRS or if the contract would exceed the limit of his license. A subcontractor [named by the contractor] who is [not] :


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ê2003 Statutes of Nevada, Page 2435 (Chapter 401, AB 425)ê

 

      (a) Named in the bid for the contract as a subcontractor who will provide a portion of the work on the public work pursuant to NRS 338.141; and

      (b) Not properly licensed for that portion of the work ,

shall be deemed unacceptable. If the subcontractor is deemed unacceptable [,] pursuant to this subsection, the contractor shall provide an acceptable subcontractor . [before the award of the contract.]

      2.  If, after awarding the contract, but before commencement of the work, the local government or its authorized representative discovers that the person to whom the contract was awarded is not licensed, or that the contract would exceed his license, the local government or its authorized representative shall [reject the bid] rescind the award of the contract and may accept the next lowest bid for that public work from a responsive and responsible bidder without requiring that new bids be submitted.

      Sec. 28.  NRS 338.147 is hereby amended to read as follows:

      338.147  1.  Except as otherwise provided in subsection 10 and NRS 338.143 , [and 338.1711 to 338.1727, inclusive,] a local government or its authorized representative shall award a contract for a public work for which the estimated cost exceeds $250,000 to the contractor who submits the best bid.

      2.  Except as otherwise provided in subsection 10 or limited by subsection 11, [for the purposes of this section, a contractor who:

      (a) Has] the lowest bid that is:

      (a) Submitted by a contractor who:

             (1) Has been found to be a responsible and responsive contractor by the local government [; and

      (b) At the time he submits his bid, provides to the local government a copy of] or its authorized representative; and

             (2) At the time he submits his bid, has a valid certificate of eligibility to receive a preference in bidding on public works issued to [him] the contractor by the State Contractors’ Board pursuant to subsection 3 or 4 [,

shall be deemed to have submitted a better bid than a competing contractor who has not provided a copy of such a valid certificate of eligibility if the amount of his bid is not] ; and

      (b) Not more than 5 percent higher than the [amount bid] bid submitted by the [competing contractor.] lowest responsive and responsible bidder who does not have, at the time he submits the bid, a valid certificate of eligibility to receive a preference in bidding on public works issued to him by the State Contractors’ Board pursuant to subsection 3 or 4,

shall be deemed to be the best bid for the purposes of this section.

      3.  The State Contractors’ Board shall issue a certificate of eligibility to receive a preference in bidding on public works to a general contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an affidavit from a certified public accountant setting forth that the general contractor has, while licensed as a general contractor in this state:

      (a) Paid directly, on his own behalf:

             (1) The sales and use taxes imposed pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;


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$5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;

             (2) The governmental services tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant; or

             (3) Any combination of such sales and use taxes and governmental services tax; or

      (b) Acquired, by purchase, inheritance, gift or transfer through a stock option plan, all the assets and liabilities of a viable, operating construction firm that possesses a:

             (1) License as a general contractor pursuant to the provisions of chapter 624 of NRS; and

             (2) Certificate of eligibility to receive a preference in bidding on public works.

      4.  The State Contractors’ Board shall issue a certificate of eligibility to receive a preference in bidding on public works to a specialty contractor who is licensed pursuant to the provisions of chapter 624 of NRS and submits to the Board an affidavit from a certified public accountant setting forth that the specialty contractor has, while licensed as a specialty contractor in this state:

      (a) Paid directly, on his own behalf:

             (1) The sales and use taxes pursuant to chapters 372, 374 and 377 of NRS on materials used for construction in this state, including, without limitation, construction that is undertaken or carried out on land within the boundaries of this state that is managed by the Federal Government or is on an Indian reservation or Indian colony, of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant;

             (2) The governmental services tax imposed pursuant to chapter 371 of NRS on the vehicles used in the operation of his business in this state of not less than $5,000 for each consecutive 12-month period for 60 months immediately preceding the submission of the affidavit from the certified public accountant; or

             (3) Any combination of such sales and use taxes and governmental services tax; or

      (b) Acquired, by purchase, inheritance, gift or transfer through a stock option plan, all the assets and liabilities of a viable, operating construction firm that possesses a:

             (1) License as a specialty contractor pursuant to the provisions of chapter 624 of NRS; and

             (2) Certificate of eligibility to receive a preference in bidding on public works.

      5.  For the purposes of complying with the requirements set forth in paragraph (a) of subsection 3 and paragraph (a) of subsection 4, a contractor shall be deemed to have paid:

      (a) Sales and use taxes and governmental services taxes paid in this state by an affiliate or parent company of the contractor, if the affiliate or parent company is also a general contractor or specialty contractor, as applicable; and


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      (b) Sales and use taxes paid in this state by a joint venture in which the contractor is a participant, in proportion to the amount of interest the contractor has in the joint venture.

      6.  A contractor who has received a certificate of eligibility to receive a preference in bidding on public works from the State Contractors’ Board pursuant to subsection 3 or 4 shall, at the time for the annual renewal of his contractor’s license pursuant to NRS 624.283, submit to the Board an affidavit from a certified public accountant setting forth that the contractor has, during the immediately preceding 12 months, paid the taxes required pursuant to paragraph (a) of subsection 3 or paragraph (a) of subsection 4, as applicable, to maintain his eligibility to hold such a certificate.

      7.  A contractor who fails to submit an affidavit to the Board pursuant to subsection 6 ceases to be eligible to receive a preference in bidding on public works unless he reapplies for and receives a certificate of eligibility pursuant to subsection 3 or 4, as applicable.

      8.  If a contractor holds more than one contractor’s license, he must submit a separate application for each license pursuant to which he wishes to qualify for a preference in bidding. Upon issuance, the certificate of eligibility to receive a preference in bidding on public works becomes part of the contractor’s license for which the contractor submitted the application.

      9.  If a contractor who applies to the State Contractors’ Board for a certificate of eligibility to receive a preference in bidding on public works submits false information to the Board regarding the required payment of taxes, the contractor is not eligible to receive a preference in bidding on public works for a period of 5 years after the date on which the Board becomes aware of the submission of the false information.

      10.  If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of subsection 2, those provisions do not apply insofar as their application would preclude or reduce federal assistance for that work. [The provisions of subsection 2 do not apply to any contract for a public work which is expected to cost less than $250,000.]

      11.  If a bid is submitted by two or more contractors as a joint venture or by one of them as a joint venturer, [the provisions of subsection 2 apply] the bid may be deemed a best bid only if both or all of the joint venturers separately meet the requirements of [that subsection.] subsection 2.

      12.  The State Contractors’ Board shall adopt regulations and may assess reasonable fees relating to the certification of contractors for a preference in bidding on public works.

      13.  A person or entity who believes that a contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works may challenge the validity of the certificate by filing a written objection with the [public body] local government to which the contractor has submitted a bid [or proposal] on a contract for the [completion] construction of a public work. A written objection authorized pursuant to this subsection must:

      (a) Set forth proof or substantiating evidence to support the belief of the person or entity that the contractor wrongfully holds a certificate of eligibility to receive a preference in bidding on public works; and

      (b) Be filed with the [public body at or after the time at which the contractor submitted the bid or proposal to the public body and before the time at which the public body awards the contract for which the bid or proposal was submitted.


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      14.  If a public body] local government not later than 3 business days after the opening of the bids by the local government or its authorized representative.

      14.  If a local government receives a written objection pursuant to subsection 13, the [public body] local government shall determine whether the objection is accompanied by the proof or substantiating evidence required pursuant to paragraph (a) of that subsection. If the [public body] local government determines that the objection is not accompanied by the required proof or substantiating evidence, the [public body] local government shall dismiss the objection and the local government or its authorized representative may proceed immediately to award the contract. If the [public body] local government determines that the objection is accompanied by the required proof or substantiating evidence, the [public body] local government shall determine whether the contractor qualifies for the certificate pursuant to the provisions of this section and the local government or its authorized representative may proceed to award the contract accordingly.

      Sec. 29.  NRS 338.148 is hereby amended to read as follows:

      338.148  1.  A local government or its authorized representative may award a contract for [the construction, alteration or repair of] a public work to a specialty contractor pursuant to NRS 338.143, 338.145 and 338.147 if:

      (a) The majority of the work to be performed on the [project] public work to which the contract pertains consists of specialty contracting for which the specialty contractor is licensed; and

      (b) The [project] public work to which the contract pertains is not part of a larger public work.

      2.  If a local government or its authorized representative awards a contract to a specialty contractor pursuant to NRS 338.143, 338.145 and 338.147, all work to be performed on the [project] public work to which the contract pertains that is outside the scope of the license of the specialty contractor must be performed by a subcontractor who is licensed to perform such work.

      Sec. 30.  NRS 338.150 is hereby amended to read as follows:

      338.150  1.  [Any agency of this state and any political subdivision, municipal corporation or district and any public officer or person] Except as otherwise provided in subsection 3, any public body charged with the drafting of specifications for [the construction, alteration or repair of public works,] a public work shall include in the specifications a clause permitting arbitration of a dispute arising between the [agency and a] public body and the contractor engaged on a public work if the dispute cannot otherwise be settled.

      2.  Any dispute requiring arbitration must be handled in accordance with the construction industry’s rules for arbitration as administered by the American Arbitration Association or the Nevada Arbitration Association.

      3.  The provisions of subsection 1 do not require the Department of Transportation to include such a clause in any contract entered into by the Department.

      Sec. 31.  NRS 338.155 is hereby amended to read as follows:

      338.155  [1.]  If a public body enters into a contract with a design professional who is not a member of a design-build team, for the provision of services in connection with a public work, the contract:

      [(a)] 1.  Must set forth:


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             [(1)] (a) The specific period within which the public body must pay the design professional.

             [(2)] (b) The specific period and manner in which the public body may dispute a payment or portion thereof that the design professional alleges is due.

             [(3)] (c) The terms of any penalty that will be imposed upon the public body if the public body fails to pay the design professional within the specific period set forth in the contract pursuant to [subparagraph (1).

             (4)] paragraph (a).

      (d) That the prevailing party in an action to enforce the contract is entitled to reasonable attorney’s fees and costs.

      [(b)] 2.  May set forth the terms of any discount that the public body will receive if the public body pays the design professional within the specific period set forth in the contract pursuant to [subparagraph (1) of] paragraph (a) [.

      (c)] of subsection 1.

      3.  May set forth the terms by which the design professional agrees to name the public body, at the cost of the public body, as an additional insured in an insurance policy held by the design professional.

      [(d)] 4.  Except as otherwise provided in [paragraph (e),] subsection 5, must not require the design professional to defend, indemnify or hold harmless the public body or the employees, officers or agents of that public body from any liability, damage, loss, claim, action or proceeding caused by the negligence, errors, omissions, recklessness or intentional misconduct of the employees, officers or agents of the public body.

      [(e)] 5.  May require the design professional to defend, indemnify and hold harmless the public body, and the employees, officers and agents of the public body from any liabilities, damages, losses, claims, actions or proceedings, including, without limitation, reasonable attorneys’ fees, that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design professional or the employees or agents of the design professional in the performance of the contract.

      [2.  Any provision of a contract that is in violation of paragraph (d) of subsection 1 is declared to be contrary to the public policy of this state and is void.]

      Sec. 32.  NRS 338.1711 is hereby amended to read as follows:

      338.1711  1.  Except as otherwise provided in this section, a public body shall contract with a prime contractor for the construction of a public work for which the estimated cost exceeds $100,000.

      2.  A public body may contract with a design-build team for the design and construction of a public work that is a discrete project if the public body determines that:

      (a) The public work is:

             (1) A plant or facility for the treatment and pumping of water or the treatment and disposal of wastewater or sewage, the estimated cost of which exceeds $100,000,000; or

             (2) Any other type of public work, except a stand-alone underground utility project, the estimated cost of which exceeds $30,000,000; and

      (b) Contracting with a design-build team will enable the public body to:

             (1) Design and construct the public work at a cost that is significantly lower than the cost that the public body would incur to design and construct the public work using a different method;


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             (2) Design and construct the public work in a shorter time than would be required to design and construct the public work using a different method, if exigent circumstances require that the public work be designed and constructed within a short time; or

             (3) Ensure that the design and construction of the public work is properly coordinated, if the public work is unique, highly technical and complex in nature.

      3.  Each state agency and each local government may contract with a design-build team once in each fiscal year for the design and construction of a public work if the [governing body of the entity] public body that is responsible for financing the public work determines that:

      (a) The estimated cost of the public work is:

             (1) At least $250,000 but less than $30,000,000 if the public work is the construction of a park and appurtenances thereto, the rehabilitation or remodeling of a public building, or the construction of an addition to a public building;

             (2) At least $500,000 but less than $30,000,000 if the public work is the construction of a new public building;

             (3) At least $5,000,000 but less than $100,000,000 if the public work is the construction, alteration or repair of a plant or facility for the treatment and pumping of water or the treatment and disposal of wastewater or sewage; or

             (4) At least $5,000,000 but less than $30,000,000 if the public work is the construction, alteration or repair of any other fixed works as described in subsection 2 of NRS 624.215; and

      (b) Contracting with a design-build team will enable the public body to:

             (1) Design and construct the public work at a cost that is significantly lower than the cost that the public body would incur to design and construct the public work using a different method;

             (2) Design and construct the public work in a shorter time than would be required to design and construct the public work using a different method, if exigent circumstances require that the public work be designed and constructed within a short time; or

            (3) Ensure that the design and construction of the public work is properly coordinated, if the public work is unique, highly technical and complex in nature.

      4.  Notwithstanding the provisions of subsections 1, 2 and 3, a public body may contract with:

      (a) A nonprofit organization for the design and construction of a project to restore, enhance or develop wetlands.

      (b) A prime contractor or design-build team with respect to a public work if the public body determines that the public work is:

             (1) Not part of a larger public work; and

             (2) Limited in scope to:

                   (I) Removal of asbestos;

                   (II) Replacement of equipment or systems for heating, ventilation and air-conditioning;

                   (III) Replacement of a roof;

                   (IV) Landscaping; or

                   (V) Restoration, enhancement or development of wetlands.

      5.  A public body that is required to contract with a prime contractor pursuant to subsection 1 or elects to contract with a prime contractor pursuant to subsection 4 shall select the prime contractor in accordance with the procedures for bidding that are set forth in:


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pursuant to subsection 4 shall select the prime contractor in accordance with the procedures for bidding that are set forth in:

      (a) The provisions of NRS 338.1375 to 338.139, inclusive; or

      (b) NRS 338.143 to 338.148, inclusive, if the public body is a local government that elects to award a contract for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373.

      6.  As used in this section, “state agency” includes an agency, bureau, board, commission, department, division or any other unit of the Legislative Department, Judicial Department or Executive Department of State Government or the University and Community College System of Nevada.

      Sec. 33.  NRS 338.1713 is hereby amended to read as follows:

      338.1713  1.  A public body shall not contract with a design-build team with respect to a public work unless the [governing body of the] public body makes the determinations, at a public hearing, that are required pursuant to subsection 2, 3 or 4 of NRS 338.1711, as applicable.

      2.  A public body that is required to hold a public hearing pursuant to this section shall publish notice of the hearing in a newspaper [of] qualified pursuant to chapter 238 of NRS that is published in the county where the work will be performed. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in [this state.] the county.

      Sec. 34.  NRS 338.1715 is hereby amended to read as follows:

      338.1715  [1.  A public body that is required to contract with a prime contractor pursuant to subsection 1 of NRS 338.1711 or elects to contract with a prime contractor pursuant to subsection 4 of NRS 338.1711 shall select the prime contractor in accordance with the procedures for bidding that are set forth in:

      (a) The provisions of NRS 338.1375 to 338.139, inclusive; or

      (b) NRS 338.143 to 338.148, inclusive, if the public body is a local government that elects to award a contract for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373.

      2.]  A public body that contracts with a design-build team pursuant to NRS 338.1711 and 338.1713 shall select the design-build team in accordance with the provisions of NRS 338.1721 to 338.1727, inclusive.

      Sec. 35.  NRS 338.1717 is hereby amended to read as follows:

      338.1717  A public body may employ a registered architect , landscape architect or licensed professional engineer as a consultant to assist the public body in overseeing the construction of a public work. An architect , landscape architect or engineer so employed shall not:

      1.  Construct the public work; or

      2.  Assume overall responsibility for ensuring that the construction of the public work is completed in a satisfactory manner.

      Sec. 36.  NRS 338.1723 is hereby amended to read as follows:

      338.1723  1.  A public body shall advertise for preliminary proposals for the design and construction of a public work by a design-build team in a newspaper [of] qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed. If no qualified newspaper is published within the county where the public will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in [this state.]


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ê2003 Statutes of Nevada, Page 2442 (Chapter 401, AB 425)ê

 

newspaper that is printed in the State of Nevada and has a general circulation in [this state.] the county.

      2.  A request for preliminary proposals published pursuant to subsection 1 must include, without limitation:

      (a) A description of the public work to be designed and constructed;

      (b) Separate estimates of the costs of designing and constructing the public work;

      (c) The dates on which it is anticipated that the separate phases of the design and construction of the public work will begin and end;

      (d) The date by which preliminary proposals must be submitted to the public body, which must not be less than 30 days after the date that the request for preliminary proposals is first published in a newspaper pursuant to subsection 1; and

      (e) A statement setting forth the place and time in which a design-build team desiring to submit a proposal for the public work may obtain the information necessary to submit a proposal, including, without limitation, the information set forth in subsection 3.

      3.  A public body shall maintain at the time and place set forth in the request for preliminary proposals the following information for inspection by a design-build team desiring to submit a proposal for the public work:

      (a) The extent to which designs must be completed for both preliminary and final proposals and any other requirements for the design and construction of the public work that the public body determines to be necessary;

      (b) A list of the requirements set forth in NRS 338.1721;

      (c) A list of the factors that the public body will use to evaluate design-build teams who submit a proposal for the public work, including, without limitation:

             (1) The relative weight to be assigned to each factor pursuant to NRS 338.1727; and

             (2) A disclosure of whether the factors that are not related to cost are, when considered as a group, more or less important in the process of evaluation than the factor of cost;

      (d) Notice that a design-build team desiring to submit a proposal for the public work must include with its proposal the information used by the public body to determine finalists among the design-build teams submitting proposals pursuant to subsection 2 of NRS 338.1725 and a description of that information;

      (e) A statement that a design-build team whose prime contractor holds a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.1389 or 338.147 should submit a copy of the certificate of eligibility with its proposal; and

      (f) A statement as to whether a design-build team that is selected as a finalist pursuant to NRS 338.1725 but is not awarded the design-build contract pursuant to NRS 338.1727 will be partially reimbursed for the cost of preparing a final proposal and, if so, an estimate of the amount of the partial reimbursement.

      Sec. 37.  NRS 338.1727 is hereby amended to read as follows:

      338.1727  1.  After selecting the finalists pursuant to NRS 338.1725, the public body shall provide to each finalist a request for final proposals for the public work. The request for final proposals must:


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ê2003 Statutes of Nevada, Page 2443 (Chapter 401, AB 425)ê

 

      (a) Set forth the factors that the public body will use to select a design-build team to design and construct the public work, including the relative weight to be assigned to each factor; and

      (b) Set forth the date by which final proposals must be submitted to the public body.

      2.  Except as otherwise provided in this subsection, in assigning the relative weight to each factor for selecting a design-build team pursuant to subsection 1, the public body shall assign, without limitation, a relative weight of 5 percent to the possession of a certificate of eligibility to receive a preference in bidding on public works and a relative weight of at least 30 percent to the proposed cost of design and construction of the public work. If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of this subsection relating to preference in bidding on public works, those provisions of this subsection do not apply insofar as their application would preclude or reduce federal assistance for that public work.

      3.  A final proposal submitted by a design-build team pursuant to this section must be prepared thoroughly, be responsive to the criteria that the public body will use to select a design-build team to design and construct the public work described in subsection 1 and comply with the provisions of NRS 338.141.

      4.  After receiving the final proposals for the public work, the public body , at a regularly scheduled meeting, shall:

      (a) Select the most cost-effective and responsive final proposal, using the criteria set forth pursuant to subsections 1 and 2; or

      (b) Reject all the final proposals.

      5.  If a public body selects a final proposal pursuant to paragraph (a) of subsection 4, the public body shall, at [its next] a regularly scheduled meeting:

      (a) Review and ratify the selection.

      (b) Award the design-build contract to the design-build team whose proposal is selected.

      (c) Partially reimburse the unsuccessful finalists if partial reimbursement was provided for in the request for preliminary proposals pursuant to paragraph (f) of subsection 3 of NRS 338.1723. The amount of reimbursement must not exceed, for each unsuccessful finalist, 3 percent of the total amount to be paid to the design-build team as set forth in the design-build contract.

      (d) Make available to the public a summary setting forth the factors used by the public body to select the successful design-build team and the ranking of the design-build teams who submitted final proposals. The public body shall not release to a third party, or otherwise make public, financial or proprietary information submitted by a design-build team.

      6.  A contract awarded pursuant to this section:

      (a) Must specify:

             (1) An amount that is the maximum amount that the public body will pay for the performance of all the work required by the contract, excluding any amount related to costs that may be incurred as a result of unexpected conditions or occurrences as authorized by the contract;

             (2) An amount that is the maximum amount that the public body will pay for the performance of the professional services required by the contract; and


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             (3) A date by which performance of the work required by the contract must be completed.

      (b) May set forth the terms by which the design-build team agrees to name the public body, at the cost of the public body, as an additional insured in an insurance policy held by the design-build team.

      (c) Except as otherwise provided in paragraph (d), must not require the design professional to defend, indemnify or hold harmless the public body or the employees, officers or agents of that public body from any liability, damage, loss, claim, action or proceeding caused by the negligence, errors, omissions, recklessness or intentional misconduct of the employees, officers and agents of the public body.

      (d) May require the design-build team to defend, indemnify and hold harmless the public body, and the employees, officers and agents of the public body from any liabilities, damages, losses, claims, actions or proceedings, including, without limitation, reasonable attorneys’ fees, that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design-build team or the employees or agents of the design-build team in the performance of the contract.

      7.  [Any provision of a contract that is in violation of paragraph (c) of subsection 6 is declared to be contrary to the public policy of this state and is void.

      8.]  A design-build team to whom a contract is awarded pursuant to this section shall:

      (a) Assume overall responsibility for ensuring that the design and construction of the public work is completed in a satisfactory manner; and

      (b) Use the workforce of the prime contractor on the design-build team to construct at least 15 percent of the public work.

      Sec. 38.  NRS 338.175 is hereby amended to read as follows:

      338.175  A public body shall notify the State Board of Architecture, Interior Design and Residential Design or the State Board of Landscape Architecture, as applicable, in writing if a registered architect, interior designer , [or] residential designer [:] or landscape architect:

      1.  Submits plans for a project which are substantially incomplete; or

      2.  Submits plans for the same project which are rejected by the public body at least three times.

      Sec. 39.  NRS 338.177 is hereby amended to read as follows:

      338.177  1.  Real property acquired by the governing body of a local government for a public work may be leased, pending the completion of the public work but for not more than 5 years, upon such terms and conditions as the governing body [of the local government] prescribes.

      2.  The governing body [of the local government] shall:

      (a) Adopt the procedures for entering into such a lease at a public hearing held thereon; and

      (b) Offer to lease the property to the person from whom it was acquired before offering to lease the property to any other person.

      3.  Except as otherwise provided in this subsection, revenue from the lease must be used to maintain the property in order to mitigate any adverse effect upon the adjacent area. Any revenue from the lease that is not needed to maintain the property must be used to offset the cost of the public work for which the property was acquired.

      Sec. 40.  NRS 338.180 is hereby amended to read as follows:

      338.180  1.  The Legislature of the State of Nevada declares that:


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      (a) The primary purpose of this section is to provide, subject to the limitations set forth in this section, for the removal and elimination of architectural barriers to the physically handicapped in public buildings and facilities designed after July 1, 1973, in order to encourage and facilitate the employment of the physically handicapped and to make public buildings accessible to and usable by the physically handicapped; and

      (b) It is the intent of the Legislature that insofar as possible all buildings and facilities used by the public be accessible to, and functional for, the physically handicapped, without loss of function, space or facility where the general public is concerned.

      2.  All plans and specifications for the construction of public buildings and facilities owned by [the State of Nevada or by a political subdivision thereof] a public body must, after July 1, 1973, provide facilities and features for the physically handicapped so that buildings which are normally used by the public are constructed with entrance ramps, toilet facilities, drinking fountains, doors and public telephones accessible to and usable by the physically handicapped. In addition, all plans and specifications for the construction or alteration of public buildings and facilities owned by [the State of Nevada or a political subdivision thereof] a public body must comply with the applicable requirements of the:

      (a) Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., and the regulations adopted pursuant thereto, including, without limitation, the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities set forth in Appendix A of Part 36 of Title 28 of the Code of Federal Regulations;

      (b) Minimum Guidelines and Requirements for Accessible Design, 36 C.F.R. §§ 1190.1 et seq.; and

      (c) Fair Housing Act, 42 U.S.C. § 3604, and the regulations adopted pursuant thereto.

The requirements of paragraph (a) of this subsection are not satisfied if the plans and specifications comply solely with the Uniform Federal Accessibility Standards set forth in Appendix A of Part 101-19.6 of Title 41 of the Code of Federal Regulations.

      3.  [The State of Nevada and each political subdivision thereof] All public bodies shall, in the design, construction and alteration of public buildings and facilities comply with the applicable requirements of the:

      (a) Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., and the regulations adopted pursuant thereto, including, without limitation, the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities set forth in Appendix A of Part 36 of Title 28 of the Code of Federal Regulations;

      (b) Minimum Guidelines and Requirements for Accessible Design, 36 C.F.R. §§ 1190.1 et seq.; and

      (c) Fair Housing Act, 42 U.S.C. § 3604, and the regulations adopted pursuant thereto.

The requirements of paragraph (a) of this subsection are not satisfied if the [State of Nevada or a political subdivision thereof] public body complies solely with the Uniform Federal Accessibility Standards set forth in Appendix A of Part 101-19.6 of Title 41 of the Code of Federal Regulations.

      4.  In each public building and facility owned by [this state or a political subdivision of this state,] a public body, each entrance to a corridor which leads to a toilet facility must be marked with a sign which:


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ê2003 Statutes of Nevada, Page 2446 (Chapter 401, AB 425)ê

 

      (a) Conforms to the requirements related to signage contained in §§ 4.30 et seq. of the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities set forth in Appendix A of Part 36 of Title 28 of the Code of Federal Regulations; and

      (b) Uses symbols, raised letters and Braille to:

             (1) Identify the toilet facility and the gender of persons who may use the toilet facility; and

             (2) If the toilet facility is for the exclusive use of persons of one gender:

                   (I) Indicate that the toilet facility is for the exclusive use of persons of that gender; and

                   (II) Provide direction to a toilet facility that may be used by persons of the other gender.

      5.  The State Public Works Board shall verify that all public buildings and facilities owned by the State of Nevada conform with the requirements of this section. Each political subdivision shall verify that all public buildings and facilities owned by the political subdivision conform with the requirements of this section.

      6.  A person may report a violation of this section to the Attorney General.

      7.  Upon receiving a report pursuant to subsection 6, the Attorney General shall notify the public body responsible for the alleged violation. Not later than 30 days after receiving such a notification, the public body shall:

      (a) Present evidence to the Attorney General that it is in compliance with this section; or

      (b) Begin any action necessary to comply with the requirements of this section and notify the Attorney General of the date on which it will be in compliance with those requirements.

      8.  If the public body responsible for the alleged violation fails to comply with this section, the Attorney General shall take such action as is necessary to ensure compliance with this section, including, without limitation, commencing proceedings in a court of competent jurisdiction, if appropriate.

      Sec. 41.  NRS 338.1907 is hereby amended to read as follows:

      338.1907  1.  The governing body of a local government may designate one or more energy retrofit coordinators for the buildings occupied by the local government.

      2.  If such a coordinator is designated, upon request by or consultation with an officer or employee of the local government who is responsible for the budget of a department, board, commission or other entity of the local government, the coordinator may request the approval of the governing body to advertise a request for proposals to retrofit a building, or any portion thereof, that is occupied by the department, board, commission or other entity, to make the use of energy in the building, or portion thereof, more efficient.

      3.  Upon approval of the governing body, the coordinator shall prepare a request for proposals for the retrofitting of one or more buildings, or any portion thereof, which includes:

      (a) The name and location of the coordinator;

      (b) A brief description of the requirements for the initial audit of the use of energy and the retrofitting;


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ê2003 Statutes of Nevada, Page 2447 (Chapter 401, AB 425)ê

 

      (c) Where and how specifications of the requirements for the initial audit of the use of energy and the retrofitting may be obtained;

      (d) The date and time not later than which proposals must be received by the coordinator; and

      (e) The date and time when responses will be opened.

      4.  The request for proposals must be published in [at least one newspaper of] a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the work will be performed. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county [in which the local government is located.] where the work will be performed.

      5.  After receiving the proposals but before making a decision on the proposals, the coordinator shall consider:

      (a) The best interests of the local government;

      (b) The experience and financial stability of the persons submitting the proposals;

      (c) Whether the proposals conform with the terms of the request for proposals;

      (d) The prices of the proposals; and

      (e) Any other factor disclosed in the request for proposals.

      6.  The coordinator shall determine the relative weight of each factor before a request for proposals is advertised. The weight of each factor must not be disclosed before the date proposals are required to be submitted to the coordinator.

      7.  After reviewing the proposals, if the coordinator determines that sufficient energy could be saved to justify retrofitting the building or buildings, or portion thereof, the coordinator shall select the best proposal and request the approval of the governing body to award the contract. The request for approval must include the proposed method of financing the audit and retrofit, which may include an installment contract, a shared savings contract or any other contract for a reasonable financing arrangement. Such a contract may commit the local government to make payments beyond the fiscal year in which the contract is executed or beyond the terms of office of the governing body, or both.

      8.  Before approving a retrofit pursuant to this section, the governing body shall evaluate any projects that would utilize shared savings as a method of payment or any method of financing that would commit the local government to make payments beyond the fiscal year in which the contract is executed or beyond the terms of office of the governing body to ensure that:

      (a) The amount of energy to be saved will likely justify the cost of the retrofit; and

      (b) The local government is likely to continue to occupy the building for the entire period required to recoup the cost of the retrofit in energy savings.

      9.  Upon approval of the governing body, the coordinator shall execute the contract and notify each officer or employee who is responsible for the budget of a department, board, commission or other entity which occupies a portion of a building that will be retrofitted of the amount of money it will be required to pay annually for its portion of the retrofit.


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ê2003 Statutes of Nevada, Page 2448 (Chapter 401, AB 425)ê

 

      10.  NRS 338.1385 and 338.143 do not apply to a project for which a request for proposals is advertised and the contract is awarded pursuant to the provisions of this section.

      Sec. 42.  NRS 338.515 is hereby amended to read as follows:

      338.515  1.  Except as otherwise provided in NRS 338.525, a public body and its officers or agents awarding a contract for a public work shall pay or cause to be paid to a contractor the progress payments due under the contract within 30 days after the date the public body receives the progress bill or within a shorter period if the provisions of the contract so provide. Not more than 90 percent of the amount of any progress payment may be paid until 50 percent of the work required by the contract has been performed. Thereafter the public body may pay any of the remaining progress payments without withholding additional retainage if, in the opinion of the public body, satisfactory progress is being made in the work.

      2.  Except as otherwise provided in NRS 338.525, a public body shall identify in the contract and pay or cause to be paid to a contractor the actual cost of the supplies, materials and equipment that:

      (a) Are identified in the contract;

      (b) Have been delivered and stored at a location, and in the time and manner, specified in a contract by the contractor or a subcontractor or supplier for use in [the construction, repair or reconstruction of the] a public work; and

      (c) Are in short supply or were specially made for the public work,

within 30 days after the public body receives a progress bill from the contractor for those supplies, materials or equipment.

      3.  A public body shall pay or cause to be paid to the contractor at the end of each quarter interest for the quarter on any amount withheld by the public body pursuant to NRS 338.400 to 338.645, inclusive, at a rate equal to the rate quoted by at least three financial institutions as the highest rate paid on a certificate of deposit whose duration is approximately 90 days on the first day of the quarter. If the amount due to a contractor pursuant to this subsection for any quarter is less than $500, the public body may hold the interest until:

      (a) The end of a subsequent quarter after which the amount of interest due is $500 or more;

      (b) The end of the fourth consecutive quarter for which no interest has been paid to the contractor; or

      (c) The amount withheld under the contract is due pursuant to NRS 338.520,

whichever occurs first.

      4.  If the Labor Commissioner has reason to believe that an employee has a valid and enforceable claim for wages against a contractor [,] or subcontractor, he may require the public body to withhold from any payment due the contractor under this section and pay the Labor Commissioner instead, an amount equal to the amount claimed by the employee. This amount must be paid to the employee by the Labor Commissioner if the claim is resolved in his favor, otherwise it must be returned to the public body for payment to the contractor.

      Sec. 43.  NRS 338.560 is hereby amended to read as follows:

      338.560  1.  A contractor may withhold from a progress payment or retainage payment an amount sufficient to pay [the] :


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ê2003 Statutes of Nevada, Page 2449 (Chapter 401, AB 425)ê

 

      (a) The expenses the contractor reasonably expects to incur as a result of the failure of his subcontractor or supplier to comply with the subcontract or applicable building code, law or regulation.

      (b) An amount withheld from payment to the contractor by a public body pursuant to subsection 4 of NRS 338.515 for a claim for wages against the subcontractor.

      2.  A contractor shall, within 10 days after he receives:

      (a) A progress payment or retainage payment from the public body for an amount that is less than the amount set forth in the applicable progress bill or retainage bill; or

      (b) A progress bill or retainage bill from his subcontractor or supplier,

give a written notice to his subcontractor or supplier of any amount that will be withheld pursuant to this section.

      3.  The written notice must:

      (a) Set forth:

             (1) The amount of the progress payment or retainage payment that will be withheld from his subcontractor or supplier; and

             (2) A detailed explanation of the reason the contractor will withhold that amount, including, without limitation, a specific reference to the provision or section of the subcontract, or documents related thereto, or applicable building code, law or regulation with which his subcontractor or supplier has failed to comply; and

      (b) Be signed by an authorized agent of the contractor.

      4.  The contractor shall pay to his subcontractor or supplier the amount withheld by the public body or the contractor within 10 days after:

      (a) The contractor receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of the subcontractor or supplier; or

      (b) The public body pays to the contractor the amount withheld,

whichever occurs later.

      Sec. 44.  NRS 338.595 is hereby amended to read as follows:

      338.595  1.  If a subcontractor and another subcontractor or supplier enter into a subcontract for a public work, the subcontractor may withhold as retainage not more than 10 percent from the amount of any progress payment due under a subcontract which is made before 50 percent of the work has been completed under the subcontract. The subcontractor shall pay any additional progress payments due under the subcontract without withholding any additional retainage if, in the opinion of the subcontractor, satisfactory progress is being made in the work under the subcontract. The payment must be equal to that paid by the contractor to him for the work performed or supplies provided by his subcontractor or supplier.

      2.  If the subcontractor receives a payment of interest earned on the retainage or an amount withheld from a progress payment, he shall, within 10 days after receiving the money, pay to each of his subcontractors or suppliers that portion of the interest received from the contractor which is attributable to the retainage or amount withheld from a progress payment by [him to] the subcontractor to his subcontractor or supplier.

      Sec. 45.  NRS 338.600 is hereby amended to read as follows:

      338.600  1.  A subcontractor may withhold from a progress payment or retainage payment an amount sufficient to pay the expenses the subcontractor reasonably expects to incur as a result of the failure of his subcontractor or supplier to comply with the subcontract or applicable building code, law or regulation.


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ê2003 Statutes of Nevada, Page 2450 (Chapter 401, AB 425)ê

 

subcontractor or supplier to comply with the subcontract or applicable building code, law or regulation.

      2.  A subcontractor shall, within 10 days after he receives:

      (a) A progress payment or retainage payment from a contractor for an amount that is less than the amount set forth in the applicable progress bill or retainage bill; or

      (b) A progress bill or retainage bill from his subcontractor or supplier,

give a written notice to his subcontractor or supplier of any amount that will be withheld pursuant to this section.

      3.  The written notice must:

      (a) Set forth:

             (1) The amount of the progress payment or retainage payment that will be withheld from his subcontractor or supplier; and

             (2) A detailed explanation of the reason the subcontractor will withhold that amount, including, without limitation, a specific reference to the provision or section of the subcontract, or documents related thereto, or applicable building code, law or regulation with which the subcontractor or supplier has failed to comply; and

      (b) Be signed by an authorized agent of the subcontractor.

      4.  The subcontractor shall pay to his subcontractor or supplier the amount withheld by the public body, contractor or subcontractor within 10 days after:

      (a) The subcontractor receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of his subcontractor or supplier; or

      (b) The contractor pays to [him] the subcontractor the amount withheld,

whichever occurs later.

      Sec. 46.  NRS 338.1383 is hereby repealed.

      Sec. 47.  1.  This section and sections 1 to 18, inclusive, 20 to 25, inclusive, and 27 to 46, inclusive, of this act become effective on July 1, 2003.

      2.  Sections 18 and 25 of this act expire by limitation on April 30, 2013.

      3.  Sections 19 and 26 of this act become effective on May 1, 2013.

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