2023 Nevada Revised Statutes › Chapter 624 - Contractors › NRS 624.256 - Proof of industrial insurance; notification of Fraud Control Unit for Industrial Insurance of failure to obtain industrial insurance; disciplinary action; penalty for failure to pay contributions to Unemployment Compensation Fund.

1. Before granting an original or renewal of a contractor’s license to any applicant, the Board shall require that the applicant submit to the Board:
(a) Proof of industrial insurance and insurance for occupational diseases which covers the applicant’s employees;
(b) A copy of the applicant’s certificate of qualification as a self-insured employer which was issued by the Commissioner of Insurance;
(c) If the applicant is a member of an association of self-insured public or private employers, a copy of the certificate issued to the association by the Commissioner of Insurance; or
(d) An affidavit signed by the applicant affirming that he or she is not subject to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS because the applicant:
(1) Has no employees;
(2) Is not or does not intend to be a subcontractor for a principal contractor; and
(3) Has not or does not intend to submit a bid on a job for a principal contractor or subcontractor.
2. The Board shall notify the Fraud Control Unit for Industrial Insurance established pursuant to NRS 228.420 whenever the Board learns that an applicant or holder of a contractor’s license has engaged in business as or acted in the capacity of a contractor within this State without having obtained or maintained industrial insurance or insurance for occupational diseases in violation of the provisions of chapters 616A to 617, inclusive, of NRS.
3. Failure by an applicant or holder of a contractor’s license to file or maintain in full force the required industrial insurance and insurance for occupational diseases constitutes cause for the Board to deny, revoke, suspend, refuse to renew or otherwise discipline the person, unless the person has complied with the provisions set forth in paragraph (d) of subsection 1.
4. As soon as practicable, but not more than 3 business days after receiving notice from the Department of Employment, Training and Rehabilitation pursuant to NRS 612.642 that a judgment has been obtained against a contractor for failure to pay contributions to the Unemployment Compensation Fund or from the Division of Industrial Relations of the Department of Business and Industry pursuant to NRS 616B.630 that a contractor is not in full compliance with the requirements of chapters 616A to 617, inclusive, of NRS, the Board shall notify the contractor by mail at the last known address of the contractor, as it appears in the records of the Board, that the Board will suspend the license of the contractor if the contractor does not furnish proof, within 30 days after the date of the notice sent by the Board, that the contractor has satisfied the judgment reported to the Board pursuant to NRS 612.642 or is in full compliance with the requirements of chapters 616A to 617, inclusive, of NRS.
5. If the contractor fails to furnish proof, within 30 days after the date of the notice sent by the Board pursuant to subsection 4, that the contractor has satisfied the judgment reported to the Board pursuant to NRS 612.642 or is in full compliance with the requirements of chapters 616A to 617, inclusive, of NRS, the Board shall, as soon as practicable, but not more than 3 business days after the expiration of the 30-day period, for a first offense:
(a) Summarily suspend the license of the contractor without further notice pursuant to subsection 4 of NRS 624.291; and
(b) Require the contractor to submit to the Board a list of all projects for which the contractor has unfulfilled contractual obligations where the contract was entered into on or before the date of the notice sent by the Board pursuant to subsection 4.
6. If a contractor’s license is suspended pursuant to paragraph (a) of subsection 5:
(a) The suspension must continue until the contractor furnishes proof that the contractor has satisfied the judgment reported to the Board pursuant to NRS 612.642 or is in full compliance with the requirements of chapters 616A to 617, inclusive, of NRS;
(b) During the term of the suspension, the contractor shall not submit any bids for any new work or begin work on any project not described in the list submitted to the Board pursuant to paragraph (b) of subsection 5; and
(c) The Board shall notify:
(1) The Office of the Labor Commissioner, which shall, as soon as practicable, but not more than 3 business days after receipt of the notice, add the name of the contractor to the list of contractors who are disqualified to bid on public works; and
(2) The State Public Works Board, which shall, as soon as practicable, but not more than 3 business days after receipt of the notice, add the name of the contractor to the list of contractors who are not prequalified to bid on public works.
7. If the name of a contractor is added to a list pursuant to paragraph (c) of subsection 6, the Office of the Labor Commissioner or the State Public Works Board, as applicable, shall remove the name from the list when notified by the Board that the suspension has been lifted pursuant to paragraph (a) of subsection 6.
8. If the Board finds that a contractor has failed to provide a complete list of projects in accordance with paragraph (b) of subsection 5 or has violated paragraph (b) of subsection 6, the Board shall:
(a) For a first offense, suspend the contractor’s license for an additional 12 months after the contractor furnishes the proof described in paragraph (a) of subsection 6; and
(b) For a second or subsequent offense, conduct a hearing pursuant to NRS 624.291, and, if it is determined at the hearing that a second or subsequent offense has been committed, revoke the contractor’s license.
9. If a contractor for whom the suspension of a contractor’s license has been lifted after providing the proof required pursuant to paragraph (a) of subsection 6 receives notice from the Board pursuant to subsection 4 within 5 years after the date of reinstatement and the contractor fails to furnish proof, within 30 days after the date of the notice sent by the Board, that the contractor has satisfied the judgment reported to the Board pursuant to NRS 612.642 or is in full compliance with the requirements of chapters 616A to 617, inclusive, of NRS, the Board shall conduct a hearing pursuant to NRS 624.291 and, if it is determined at the hearing that a second or subsequent offense has been committed within a 5-year period, revoke the contractor’s license.
(Added to NRS by 1983, 541; A 1987, 1138; 1993, 781; 1995, 1879; 1999, 237; 2007, 858; 2013, 2208)