A.B. 222 - *AB222* ASSEMBLY BILL NO. 222–ASSEMBLYMEMBER JACKSON PREFILED FEBRUARY 3, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to public works. (BDR 28-675) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to public works; requiring, with certain exceptions, a contractor or subcontractor to comply with certain requirements relating to the employment of workers and apprentices on a public work; providing certain penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law sets forth general provisions applicable to public works, including 1 preferences in the employment of workers and requirements for the use of 2 apprentices. (Chapter 338 of NRS) Section 2 of this bill prescribes an order of 3 preference in the employment of workers and apprentices on certain public works. 4 The order of preference is: (1) persons who are women and are citizens of this 5 State; (2) persons who have been honorably discharged from the Army, Navy, Air 6 Force, Marine Corps or Coast Guard of the United States, a reserve component 7 thereof or the National Guard and are citizens of this State; (3) persons who are 8 residents of historically underserved communities and are citizens of this State; (4) 9 persons who are residents of rural areas of this State and are citizens of this State; 10 (5) persons who were formerly incarcerated and are citizens of this State; and (6) 11 persons who are under 26 years of age and are citizens of this State. 12 Section 3 of this bill requires a contractor or subcontractor engaged in: (1) 13 vertical construction who employs workers on one or more public works during a 14 calendar year to employ persons in accordance with the prescribed order of 15 preference in section 2 for at least 10 percent of the total hours of labor worked for 16 each public work; and (2) horizontal construction who employs workers on one or 17 more public works during a calendar year to employ persons in accordance with the 18 prescribed order of preference in section 2 for at least 3 percent of the total hours of 19 labor worked for each public work. 20 Existing law requires a contractor or subcontractor engaged in: (1) vertical 21 construction who employs workers on one or more public works during a calendar 22 year to use one or more apprentices for at least 10 percent of the total hours of labor 23 – 2 – - *AB222* worked for each apprenticed craft or type of work to be performed on those public 24 works; and (2) horizontal construction who employs workers on one or more public 25 works during a calendar year to use one or more apprentices for at least 3 percent of 26 the total hours of labor worked for each apprenticed craft or type of work to be 27 performed on those public works. (NRS 338.01165) Section 4 of this bill 28 additionally requires such a contractor or subcontractor engaged in: (1) vertical 29 construction that requires at least 400 hours of any apprenticed craft or type of 30 work to be performed on the public work, to use apprentices employed in 31 accordance with the prescribed order of preference in section 2 for at least 10 32 percent of the hours required to be performed by an apprentice; and (2) horizontal 33 construction that requires at least 800 hours of any apprenticed craft or type of 34 work to be performed on the public work, to use apprentices employed in 35 accordance with the prescribed order of preference in section 2 for at least 3 36 percent of the hours required to be performed by an apprentice. 37 Sections 3 and 4 authorize the Labor Commissioner to adjust the percentage of 38 total hours of labor prescribed in those sections. Sections 3 and 4 require a 39 contractor or subcontractor to: (1) maintain and provide to the Labor Commissioner 40 certain information and documentation to show that the contractor or subcontractor 41 made a good faith effort to comply with the annual requirements regarding 42 employment of persons in accordance with the prescribed order of preference in 43 section 2; and (2) on or before February 15 of each year, submit certain information 44 to the Labor Commissioner regarding the hours that were worked in a calendar year 45 on certain public works. 46 Sections 3 and 4 authorize a maximum administrative fine of $1,000 for a 47 contractor or subcontractor who violates the requirements of those sections and a 48 maximum period of disqualification from bidding on public works for second and 49 subsequent such violations. Section 7 of this bill makes an exception to the 50 provision in existing law governing the imposition of administrative penalties by 51 the Labor Commissioner for this new penalty. 52 Sections 5 and 6 of this bill make certain definitions in existing law relating to 53 apprentices applicable to sections 2-4. 54 Existing law requires public bodies to investigate possible violations of certain 55 provisions governing public works. Under existing law, any contractor or 56 subcontractor who fails to comply with such an investigation is guilty of a 57 misdemeanor. (NRS 338.070) Section 8 of this bill makes the requirement for 58 public bodies to investigate such possible violations, and the criminal penalty for 59 noncompliance with such an investigation, apply to possible violations of 60 sections 2-4. 61 Section 9 of this bill makes the administrative penalties for costs of 62 investigation and prosecution and the criminal penalty in existing law for violating 63 certain provisions governing public works apply to a person who violates 64 sections 2-4. 65 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 1 thereto the provisions set forth as sections 2, 3 and 4 of this act. 2 Sec. 2. Preference in the employment of workers and 3 apprentices for the purposes of sections 3 and 4 of this act must be 4 given: 5 – 3 – - *AB222* 1. First: To persons who are women and are citizens of this 1 State. 2 2. Second: To persons who: 3 (a) Have been honorably discharged from the Army, Navy, Air 4 Force, Marine Corps or Coast Guard of the United States, a 5 reserve component thereof or the National Guard; and 6 (b) Are citizens of this State. 7 3. Third: To persons who are residents of historically 8 underserved communities and are citizens of this State. 9 4. Fourth: To persons who are residents of rural areas of this 10 State and are citizens of this State. 11 5. Fifth: To persons who were formerly incarcerated and are 12 citizens of this State. 13 6. Sixth: To persons who are under 26 years of age and are 14 citizens of this State. 15 Sec. 3. 1. Notwithstanding any other provision of this 16 chapter and except as otherwise provided in this section, a 17 contractor or subcontractor engaged in vertical construction who 18 employs workers on one or more public works during a calendar 19 year pursuant to NRS 338.040 shall employ persons in accordance 20 with the provisions of section 2 of this act for at least 10 percent, 21 or any percentage established pursuant to subsection 3, of the total 22 hours of labor worked for each public work. 23 2. Notwithstanding any other provision of this chapter and 24 except as otherwise provided in this section, a contractor or 25 subcontractor engaged in horizontal construction who employs 26 workers on one or more public works during a calendar year 27 pursuant to NRS 338.040 shall employ persons in accordance with 28 the provisions of section 2 of this act for at least 3 percent, or any 29 percentage established pursuant to subsection 3, of the total hours 30 of labor worked for each public work. 31 3. The Labor Commissioner may adopt regulations to revise 32 the percentage of total hours of labor required to be performed 33 pursuant to subsection 1 or 2. 34 4. A contractor or subcontractor engaged on a public work 35 shall maintain and provide to the Labor Commissioner any 36 supporting documentation to show that the contractor or 37 subcontractor made a good faith effort to comply with subsection 1 38 or 2, as applicable, as determined by the Labor Commissioner. For 39 the purposes of this section, a contractor or subcontractor makes a 40 good faith effort to comply with subsection 1 or 2, as applicable, if 41 the contractor or subcontractor submits to the Labor 42 Commissioner: 43 (a) Documentation of conversations with community 44 organizations; or 45 – 4 – - *AB222* (b) Records that applicants or employees from the groups 1 described in section 2 of this act refused employment offers or 2 were unavailable or absent. 3 5. On or before February 15 of each year, a contractor or 4 subcontractor engaged in vertical or horizontal construction, as 5 applicable, who employs a worker on one or more public works 6 pursuant to NRS 338.040 shall report to the Labor Commissioner, 7 on the form prescribed by the Labor Commissioner, the following 8 information regarding those public works for the previous 9 calendar year: 10 (a) For each public work, the total number of hours worked on 11 vertical construction. 12 (b) For each public work, the total number of hours worked on 13 horizontal construction. 14 (c) For each public work, the total number of hours worked by 15 the persons employed in accordance with the provisions of section 16 2 of this act on vertical construction. 17 (d) For each public work, the total number of hours worked by 18 the persons employed in accordance with the provisions of section 19 2 of this act on horizontal construction. 20 (e) For each public work, the percentage of the total number 21 of hours worked on vertical construction that were worked by the 22 persons employed in accordance with the provisions of section 2 of 23 this act. 24 (f) For each public work, the percentage of the total number of 25 hours worked on horizontal construction that were worked by the 26 persons employed in accordance with the provisions of section 2 of 27 this act. 28 (g) The outreach efforts of the contractor or subcontractor to 29 employ persons in accordance with the provisions of section 2 of 30 this act and the results of such efforts. 31 6. The information required to be reported pursuant to 32 subsection 5 must not include any identifying information about a 33 public work or an apprentice or employee. 34 7. If the Labor Commissioner, on his or her own initiative or 35 based on a complaint, makes a determination based on the 36 information submitted pursuant to subsection 5 that a contractor 37 or subcontractor did not make a good faith effort to comply with 38 the provisions of subsection 1 or 2, as applicable, the Labor 39 Commissioner shall: 40 (a) Impose a penalty of not more than $1,000; and 41 (b) For a second or subsequent violation, disqualify the 42 contractor or subcontractor from being awarded a contract for a 43 period of not longer than 2 years. 44 – 5 – - *AB222* 8. A contractor or subcontractor may request a hearing on 1 the determination of the Labor Commissioner pursuant to 2 subsection 7 within 10 days after receipt of the determination of 3 the Labor Commissioner. The hearing must be conducted in 4 accordance with regulations adopted by the Labor Commissioner. 5 If the Labor Commissioner does not receive a request for a 6 hearing pursuant to this subsection, the determination of the 7 Labor Commissioner is a final decision for the purposes of 8 judicial review pursuant to chapter 233B of NRS. 9 Sec. 4. 1. In addition to the requirements of subsection 1 of 10 NRS 338.01165, if any apprenticed craft or type of work to be 11 performed on those public works includes at least 400 hours of 12 such craft or type of work, a contractor or subcontractor shall use 13 apprentices employed in accordance with the provisions of section 14 2 of this act, for at least 10 percent, or any percentage established 15 pursuant to subsection 3, of the total hours required to be 16 performed by apprentices pursuant to subsection 1 of 17 NRS 338.01165. 18 2. In addition to the requirements of subsection 2 of NRS 19 338.01165, if any apprenticed craft or type of work to be 20 performed on those public works includes at least 800 hours of 21 such craft or type of work, a contractor or subcontractor shall use 22 apprentices employed in accordance with the provisions of section 23 2 of this act, for at least 3 percent, or any percentage established 24 pursuant to subsection 3, of the total hours required to be 25 performed by apprentices pursuant to subsection 2 of 26 NRS 338.01165. 27 3. The Labor Commissioner may adopt regulations to revise 28 the percentage of total hours of labor required to be performed 29 pursuant to subsection 1 or 2. 30 4. A contractor or subcontractor engaged on a public work 31 shall maintain and provide to the Labor Commissioner any 32 supporting documentation to show that the contractor or 33 subcontractor made a good faith effort to comply with subsection 1 34 or 2, as applicable, as determined by the Labor Commissioner. For 35 the purposes of this section, a contractor or subcontractor makes a 36 good faith effort to comply with subsection 1 or 2 if the contractor 37 or subcontractor submits to the Labor Commissioner: 38 (a) Documentation of conversations with apprenticeship 39 programs and community organizations; or 40 (b) Records that apprentices from the groups described in 41 section 2 of this act refused employment offers or were 42 unavailable or absent. 43 5. In addition to the report required by subsection 10 of NRS 44 338.01165, on or before February 15 of each year, a contractor or 45 – 6 – - *AB222* subcontractor engaged in vertical or horizontal construction, as 1 applicable, who is required to comply with subsection 1 or 2, as 2 applicable, on one or more public works, shall report to the Labor 3 Commissioner, on the form prescribed by the Labor 4 Commissioner, the following information regarding those public 5 works for the previous calendar year: 6 (a) For each apprenticed craft or type of work, the total 7 number of hours worked by apprentices who are employed in 8 accordance with the provisions of section 2 of this act on vertical 9 construction. 10 (b) For each apprenticed craft or type of work, the total 11 number of hours worked by apprentices who are employed in 12 accordance with the provisions of section 2 of this act on 13 horizontal construction. 14 (c) For each apprenticed craft or type of work, the percentage 15 of the total number of hours worked on vertical construction that 16 were worked by apprentices who are employed in accordance with 17 the provisions of section 2 of this act. 18 (d) For each apprenticed craft or type of work, the percentage 19 of the total number of hours worked on horizontal construction 20 that were worked by apprentices who are employed in accordance 21 with the provisions of section 2 of this act. 22 (e) The outreach efforts of the contractor or subcontractor to 23 employ apprentices in accordance with the provisions of section 2 24 of this act and the results of such efforts. 25 6. The information required to be reported pursuant to 26 subsection 5 must not include any identifying information about a 27 public work or an apprentice or employee. 28 7. If the Labor Commissioner, on his or her own initiative or 29 based on a complaint, makes a determination based on the 30 information submitted pursuant to subsection 5 that a contractor 31 or subcontractor did not make a good faith effort to comply with 32 the provisions of subsection 1 or 2, as applicable, the Labor 33 Commissioner shall: 34 (a) Impose a penalty of not more than $1,000; and 35 (b) For a second or subsequent violation, disqualify the 36 contractor or subcontractor from being awarded a contract for a 37 period of not longer than 2 years. 38 8. A contractor or subcontractor may request a hearing on 39 the determination of the Labor Commissioner pursuant to 40 subsection 7 within 10 days after receipt of the determination of 41 the Labor Commissioner. The hearing must be conducted in 42 accordance with regulations adopted by the Labor Commissioner. 43 If the Labor Commissioner does not receive a request for a 44 hearing pursuant to this subsection, the determination of the 45 – 7 – - *AB222* Labor Commissioner is a final decision for the purposes of 1 judicial review pursuant to chapter 233B of NRS. 2 9. To comply with the requirements of subsection 1 or 2, as 3 applicable, a contractor or subcontractor may coordinate with a 4 union, community organization or educational institution to create 5 a training program or establish a mentorship program within an 6 apprenticeship program. 7 Sec. 5. NRS 338.010 is hereby amended to read as follows: 8 338.010 As used in this chapter: 9 1. “Apprentice” means a person enrolled in an 10 apprenticeship program recognized by the State Apprenticeship 11 Council. 12 2. “Apprenticed craft or type of work” means a craft or type 13 of work for which there is an existing apprenticeship program. 14 3. “Apprenticeship program” means an apprenticeship 15 program recognized by the State Apprenticeship Council. 16 4. “Authorized representative” means a person designated by a 17 public body to be responsible for the development, solicitation, 18 award or administration of contracts for public works pursuant to 19 this chapter. 20 [2.] 5. “Bona fide fringe benefit” means a benefit in the form 21 of a contribution that is made not less frequently than monthly to an 22 independent third party pursuant to a fund, plan or program: 23 (a) Which is established for the sole and exclusive benefit of a 24 worker and his or her family and dependents; and 25 (b) For which none of the assets will revert to, or otherwise be 26 credited to, any contributing employer or sponsor of the fund, plan 27 or program. 28 The term includes, without limitation, benefits for a worker that 29 are determined pursuant to a collective bargaining agreement and 30 included in the determination of the prevailing wage by the Labor 31 Commissioner pursuant to NRS 338.030. 32 [3.] 6. “Contract” means a written contract entered into 33 between a contractor and a public body for the provision of labor, 34 materials, equipment or supplies for a public work. 35 [4.] 7. “Contractor” means: 36 (a) A person who is licensed pursuant to the provisions of 37 chapter 624 of NRS. 38 (b) A design-build team. 39 [5.] 8. “Day labor” means all cases where public bodies, their 40 officers, agents or employees, hire, supervise and pay the wages 41 thereof directly to a worker or workers employed by them on public 42 works by the day and not under a contract in writing. 43 – 8 – - *AB222* [6.] 9. “Design-build contract” means a contract between a 1 public body and a design-build team in which the design-build team 2 agrees to design and construct a public work. 3 [7.] 10. “Design-build team” means an entity that consists of: 4 (a) At least one person who is licensed as a general engineering 5 contractor or a general building contractor pursuant to chapter 624 6 of NRS; and 7 (b) For a public work that consists of: 8 (1) A building and its site, at least one person who holds a 9 certificate of registration to practice architecture pursuant to chapter 10 623 of NRS. 11 (2) Anything other than a building and its site, at least one 12 person who holds a certificate of registration to practice architecture 13 pursuant to chapter 623 of NRS or landscape architecture pursuant 14 to chapter 623A of NRS or who is licensed as a professional 15 engineer pursuant to chapter 625 of NRS. 16 [8.] 11. “Design professional” means: 17 (a) A person who is licensed as a professional engineer pursuant 18 to chapter 625 of NRS; 19 (b) A person who is licensed as a professional land surveyor 20 pursuant to chapter 625 of NRS; 21 (c) A person who holds a certificate of registration to engage in 22 the practice of architecture, interior design or residential design 23 pursuant to chapter 623 of NRS; 24 (d) A person who holds a certificate of registration to engage in 25 the practice of landscape architecture pursuant to chapter 623A of 26 NRS; or 27 (e) A business entity that engages in the practice of professional 28 engineering, land surveying, architecture or landscape architecture. 29 [9.] 12. “Discrete project” means one or more public works 30 which are undertaken on a single construction site for a single public 31 body. The term does not include one or more public works that are 32 undertaken on multiple construction sites regardless of whether the 33 public body which sponsors or finances the public works bundles 34 the public works together. 35 [10.] 13. “Division” means the State Public Works Division of 36 the Department of Administration. 37 [11.] 14. “Eligible bidder” means a person who is: 38 (a) Found to be a responsible and responsive contractor by a 39 local government or its authorized representative which requests 40 bids for a public work in accordance with paragraph (b) of 41 subsection 1 of NRS 338.1373; or 42 (b) Determined by a public body or its authorized representative 43 which awarded a contract for a public work pursuant to 44 – 9 – - *AB222* NRS 338.1375 to 338.139, inclusive, to be qualified to bid on that 1 contract pursuant to NRS 338.1379 or 338.1382. 2 [12.] 15. “General contractor” means a person who is licensed 3 to conduct business in one, or both, of the following branches of the 4 contracting business: 5 (a) General engineering contracting, as described in subsection 2 6 of NRS 624.215. 7 (b) General building contracting, as described in subsection 3 of 8 NRS 624.215. 9 [13.] 16. “Governing body” means the board, council, 10 commission or other body in which the general legislative and fiscal 11 powers of a local government are vested. 12 [14.] 17. “Horizontal construction” means any construction, 13 alteration, repair, renovation, demolition or remodeling necessary to 14 complete a public work, including, without limitation, any 15 irrigation, drainage, water supply, flood control, harbor, railroad, 16 highway, tunnel, airport or airway, sewer, sewage disposal plant or 17 water treatment facility and any ancillary vertical components 18 thereof, bridge, inland waterway, pipeline for the transmission of 19 petroleum or any other liquid or gaseous substance, pier, and any 20 other work incidental thereto. The term does not include vertical 21 construction, the construction of any terminal or other building of an 22 airport or airway, or the construction of any other building. 23 [15.] 18. “Local government” means every political 24 subdivision or other entity which has the right to levy or receive 25 money from ad valorem or other taxes or any mandatory 26 assessments, and includes, without limitation, counties, cities, 27 towns, boards, school districts and other districts organized pursuant 28 to chapters 244A, 318, 318A, 379, 474, 538, 541, 543 and 555 of 29 NRS, NRS 450.550 to 450.750, inclusive, and any agency or 30 department of a county or city which prepares a budget separate 31 from that of the parent political subdivision. The term includes a 32 person who has been designated by the governing body of a local 33 government to serve as its authorized representative. 34 [16.] 19. “Offense” means: 35 (a) Failing to: 36 (1) Pay the prevailing wage required pursuant to this chapter; 37 (2) Pay the contributions for unemployment compensation 38 required pursuant to chapter 612 of NRS; 39 (3) Provide and secure compensation for employees required 40 pursuant to chapters 616A to 617, inclusive, of NRS; or 41 (4) Comply with subsection 5 or 6 of NRS 338.070. 42 (b) Discharging an obligation to pay wages in a manner that 43 violates the provisions of NRS 338.035. 44 [17.] 20. “Prime contractor” means a contractor who: 45 – 10 – - *AB222* (a) Contracts to construct an entire project; 1 (b) Coordinates all work performed on the entire project; 2 (c) Uses his or her own workforce to perform all or a part of the 3 public work; and 4 (d) Contracts for the services of any subcontractor or 5 independent contractor or is responsible for payment to any 6 contracted subcontractors or independent contractors. 7 The term includes, without limitation, a general contractor or a 8 specialty contractor who is authorized to bid on a project pursuant to 9 NRS 338.139 or 338.148. 10 [18.] 21. “Public body” means the State, county, city, town, 11 school district or any public agency of this State or its political 12 subdivisions sponsoring or financing a public work. 13 [19.] 22. “Public work” means any project for the new 14 construction, repair or reconstruction of a project financed in whole 15 or in part from public money for: 16 (a) Public buildings; 17 (b) Jails and prisons; 18 (c) Public roads; 19 (d) Public highways; 20 (e) Public streets and alleys; 21 (f) Public utilities; 22 (g) Publicly owned water mains and sewers; 23 (h) Public parks and playgrounds; 24 (i) Public convention facilities which are financed at least in part 25 with public money; and 26 (j) All other publicly owned works and property. 27 [20.] 23. “Specialty contractor” means a person who is 28 licensed to conduct business as described in subsection 4 of 29 NRS 624.215. 30 [21.] 24. “Stand-alone underground utility project” means an 31 underground utility project that is not integrated into a larger 32 project, including, without limitation: 33 (a) An underground sewer line or an underground pipeline for 34 the conveyance of water, including facilities appurtenant thereto; 35 and 36 (b) A project for the construction or installation of a storm drain, 37 including facilities appurtenant thereto, 38 that is not located at the site of a public work for the design and 39 construction of which a public body is authorized to contract with a 40 design-build team pursuant to subsection 2 of NRS 338.1711. 41 [22.] 25. “State Apprenticeship Council” means the State 42 Apprenticeship Council created by NRS 610.030. 43 26. “Subcontract” means a written contract entered into 44 between: 45 – 11 – - *AB222* (a) A contractor and a subcontractor or supplier; or 1 (b) A subcontractor and another subcontractor or supplier, 2 for the provision of labor, materials, equipment or supplies for a 3 construction project. 4 [23.] 27. “Subcontractor” means a person who: 5 (a) Is licensed pursuant to the provisions of chapter 624 of NRS 6 or performs such work that the person is not required to be licensed 7 pursuant to chapter 624 of NRS; and 8 (b) Contracts with a contractor, another subcontractor or a 9 supplier to provide labor, materials or services for a construction 10 project. 11 [24.] 28. “Supplier” means a person who provides materials, 12 equipment or supplies for a construction project. 13 [25.] 29. “Vertical construction” means any construction, 14 alteration, repair, renovation, demolition or remodeling necessary to 15 complete a public work for any building, structure or other 16 improvement that is predominantly vertical, including, without 17 limitation, a building, structure or improvement for the support, 18 shelter and enclosure of persons, animals, chattels or movable 19 property of any kind, and any other work or improvement 20 appurtenant thereto. 21 [26.] 30. “Wages” means: 22 (a) The basic hourly rate of pay; and 23 (b) The amount of pension, health and welfare, vacation and 24 holiday pay, the cost of apprenticeship training or other bona fide 25 fringe benefits which are a benefit to the worker. 26 [27.] 31. “Worker” means a skilled mechanic, skilled worker, 27 semiskilled mechanic, semiskilled worker or unskilled worker in the 28 service of a contractor or subcontractor under any appointment or 29 contract of hire or apprenticeship, express or implied, oral or 30 written, whether lawfully or unlawfully employed. The term does 31 not include a design professional. 32 Sec. 6. NRS 338.01165 is hereby amended to read as follows: 33 338.01165 1. Notwithstanding any other provision of this 34 chapter and except as otherwise provided in this section, a 35 contractor or subcontractor engaged in vertical construction who 36 employs workers on one or more public works during a calendar 37 year pursuant to NRS 338.040 shall use one or more apprentices for 38 at least 10 percent, or any increased percentage established pursuant 39 to subsection 3, of the total hours of labor worked for each 40 apprenticed craft or type of work to be performed on those public 41 works. 42 2. Notwithstanding any other provision of this chapter and 43 except as otherwise provided in this section, a contractor or 44 subcontractor engaged in horizontal construction who employs 45 – 12 – - *AB222* workers on one or more public works during a calendar year 1 pursuant to NRS 338.040 shall use one or more apprentices for at 2 least 3 percent, or any increased percentage established pursuant to 3 subsection 3, of the total hours of labor worked for each apprenticed 4 craft or type of work to be performed on those public works. 5 3. On or after January 1, 2021, the Labor Commissioner, in 6 collaboration with the State Apprenticeship Council, may adopt 7 regulations to increase the percentage of total hours of labor 8 required to be performed by an apprentice pursuant to subsection 1 9 or 2 by not more than 2 percentage points. 10 4. An apprentice who graduates from an apprenticeship 11 program while employed on a public work shall: 12 (a) Be deemed an apprentice on the public work for the purposes 13 of subsections 1 and 2. 14 (b) Be deemed a journeyman for all other purposes, including, 15 without limitation, the payment of wages or the payment of wages 16 and benefits to a journeyman covered by a collective bargaining 17 agreement. 18 5. If a contractor or subcontractor who is a signatory to a 19 collective bargaining agreement with a union that sponsors an 20 apprenticeship program for an apprenticed craft or type of work for 21 which the term of apprenticeship is not more than 3 years requests 22 an apprentice from that apprenticeship program and an apprentice in 23 the appropriate craft or type of work is not available, the contractor 24 or subcontractor may utilize a person who graduated from the 25 apprenticeship program in that craft or type of work within the 3 26 years immediately preceding the request from the contractor or 27 subcontractor. Such a person: 28 (a) Shall be deemed an apprentice on the public work for the 29 purposes of subsections 1 and 2. 30 (b) Shall be deemed a journeyman for all other purposes, 31 including, without limitation, the payment of wages and benefits to 32 a journeyman pursuant to the collective bargaining agreement. 33 6. A contractor or subcontractor engaged on a public work is 34 not required to use an apprentice in a craft or type of work 35 performed in a jurisdiction recognized by the State Apprenticeship 36 Council as not having apprentices in that craft or type of work. 37 7. A contractor or subcontractor engaged on a public work 38 shall maintain and provide to the Labor Commissioner any 39 supporting documentation to show that the contractor or 40 subcontractor made a good faith effort to comply with subsection 1 41 or 2, as applicable, as determined by the Labor Commissioner. For 42 purposes of this subsection, a contractor or subcontractor: 43 (a) Makes a good faith effort to comply with subsection 1 or 2, 44 as applicable, if the contractor or subcontractor: 45 – 13 – - *AB222* (1) Submits to the apprenticeship program, on the form 1 prescribed by the Labor Commissioner, a request for an apprentice 2 not earlier than 10 days before the contractor or subcontractor is 3 scheduled to begin work on the public work and not later than 5 4 days after the contractor or subcontractor actually begins work on 5 the public work. 6 (2) If the apprenticeship program does not provide an 7 apprentice for the appropriate apprenticed craft or type of work 8 upon a request pursuant to subparagraph (1), submits additional 9 requests to the apprenticeship program, on the form prescribed by 10 the Labor Commissioner, at least once every 30 days during the 11 period that the contractor or subcontractor is working on the public 12 work. If a contractor or subcontractor does not work continuously 13 on the public work, the contractor or subcontractor shall submit an 14 additional request each time that the contractor or subcontractor 15 resumes work on the public work not earlier than 10 days before the 16 contractor or subcontractor is scheduled to resume work on the 17 public work and not later than 5 days after the contractor or 18 subcontractor actually resumes work on the public work. The 19 requirement for the submission of an additional request in this 20 subparagraph does not apply whenever a contractor or subcontractor 21 has one or more apprentices employed for that apprenticed craft or 22 type of work. 23 (b) Does not make a good faith effort to comply with subsection 24 1 or 2, as applicable, as determined by the Labor Commissioner, if 25 the contractor or subcontractor is required to enter into an 26 apprenticeship agreement pursuant to subsection 16 and refuses to 27 do so. 28 8. The supporting documentation required pursuant to 29 subsection 7 may include, without limitation: 30 (a) Documentation of the submission by the contractor or 31 subcontractor of one or more requests, as applicable, pursuant to 32 subsection 7; and 33 (b) Documentation that the apprenticeship program denied such 34 a request, did not respond to such a request or responded that the 35 program was unable to provide the requested apprentice. 36 9. The contractor or subcontractor and the apprenticeship 37 program shall coordinate the starting date for any apprentice 38 provided by the program. 39 10. On or before February 15 of each year, a contractor or 40 subcontractor engaged in vertical or horizontal construction, as 41 applicable, who employs a worker on one or more public works 42 pursuant to NRS 338.040 shall report to the Labor Commissioner, 43 on the form prescribed by the Labor Commissioner, the following 44 – 14 – - *AB222* information regarding those public works for the previous calendar 1 year: 2 (a) For each apprenticed craft or type of work, the total number 3 of hours worked on vertical construction. 4 (b) For each apprenticed craft or type of work, the total number 5 of hours worked on horizontal construction. 6 (c) For each apprenticed craft or type of work, the total number 7 of hours worked by apprentices on vertical construction. 8 (d) For each apprenticed craft or type of work, the total number 9 of hours worked by apprentices on horizontal construction. 10 (e) For each apprenticed craft or type of work, the percentage of 11 the total number of hours worked on vertical construction that were 12 worked by apprentices. 13 (f) For each apprenticed craft or type of work, the percentage of 14 the total number of hours worked on horizontal construction that 15 were worked by apprentices. 16 11. The information required to be reported pursuant to 17 subsection 10 must not include any identifying information about a 18 public work or an apprentice or employee. 19 12. If the Labor Commissioner, on his or her own initiative or 20 based on a complaint, makes a determination based on the 21 information submitted pursuant to subsection 10 that a contractor or 22 subcontractor did not make a good faith effort to comply with the 23 provisions of subsection 1 or 2, as applicable, the Labor 24 Commissioner shall notify the contractor or subcontractor in writing 25 of the determination and: 26 (a) Except as otherwise provided in paragraph (b), shall assess a 27 penalty as follows: 28 (1) If the apprentice utilization rate by the contractor or 29 subcontractor on vertical construction of a public work is: 30 (I) Seven and one-half percent or more but less than 10 31 percent of the total hours of labor worked for an apprenticed craft or 32 type of work, a penalty of $2,500 or $2 for each hour below the 33 percentage required, whichever is higher. 34 (II) More than 4 percent but less than 7.5 percent of the 35 total hours of labor worked for an apprenticed craft or type of work, 36 a penalty of $3,000 or $4 for each hour below the percentage 37 required, whichever is higher. 38 (III) Four percent or less of the total hours of labor 39 worked for an apprenticed craft or type of work, a penalty of $5,000 40 or $6 for each hour below the percentage required, whichever is 41 higher. 42 (2) If the apprentice utilization rate by the contractor or 43 subcontractor on horizontal construction of a public work is: 44 – 15 – - *AB222* (I) Two percent or more but less than 3 percent of the 1 total hours of labor worked for an apprenticed craft or type of work, 2 a penalty of $2,500 or $2 for each hour below the percentage 3 required, whichever is higher. 4 (II) More than 1 percent but less than 2 percent of the 5 total hours of labor worked for an apprenticed craft or type of work, 6 a penalty of $3,000 or $4 for each hour below the percentage 7 required, whichever is higher. 8 (III) One percent or less of the total hours of labor worked 9 for an apprenticed craft or type of work, a penalty of $5,000 or $6 10 for each hour below the percentage required, whichever is higher. 11 (b) Shall not assess a penalty if the total number of hours of 12 labor required to be worked by apprentices: 13 (1) On vertical construction pursuant to subsection 1, as 14 applicable, during the previous calendar year is less than 40 hours. 15 (2) On horizontal construction pursuant to subsection 2, as 16 applicable, during the previous calendar year is less than 24 hours. 17 13. Except for good cause, the Labor Commissioner may not 18 initiate his or her own investigation or accept a complaint based on 19 the information submitted by a contractor or subcontractor pursuant 20 to subsection 10 after May 1 immediately following the date on 21 which the report was received by the Labor Commissioner. 22 14. In addition to the penalties set forth in subsection 12, if the 23 Labor Commissioner, on his or her own initiative or based on a 24 complaint, makes a determination that a contractor or subcontractor 25 did not submit the report required pursuant to subsection 10 or made 26 no attempt to comply with the provisions of subsection 1 or 2, as 27 applicable, the Labor Commissioner shall: 28 (a) Impose a penalty of not less than $10,000 but not more than 29 $75,000; or 30 (b) Disqualify the contractor or subcontractor from being 31 awarded a contract for a public work for at least 180 days but not 32 more than 2 years. 33 15. A contractor or subcontractor may request a hearing on the 34 determination of the Labor Commissioner pursuant to subsection 12 35 or 14 within 10 days after receipt of the determination of the Labor 36 Commissioner. The hearing must be conducted in accordance with 37 regulations adopted by the Labor Commissioner. If the Labor 38 Commissioner does not receive a request for a hearing pursuant to 39 this subsection, the determination of the Labor Commissioner is a 40 final decision for the purposes of judicial review pursuant to chapter 41 233B of NRS. 42 16. A contractor or subcontractor who is not a signatory to a 43 collective bargaining agreement with the union sponsoring the 44 apprenticeship program for an apprenticed craft or type of work 45 – 16 – - *AB222* engaged on a public work shall enter into an apprenticeship 1 agreement for each apprentice required to be used in the 2 construction of a public work. 3 17. As used in this section [: 4 (a) “Apprentice” means a person enrolled in an apprenticeship 5 program recognized by the State Apprenticeship Council. 6 (b) “Apprenticed craft or type of work” means a craft or type of 7 work for which there is an existing apprenticeship program 8 recognized by the State Apprenticeship Council. 9 (c) “Apprenticeship program” means an apprenticeship program 10 recognized by the State Apprenticeship Council. 11 (d) “Journeyman”] , “journeyman” has the meaning ascribed to 12 it in NRS 624.260. 13 [(e) “State Apprenticeship Council” means the State 14 Apprenticeship Council created by NRS 610.030.] 15 Sec. 7. NRS 338.015 is hereby amended to read as follows: 16 338.015 1. The Labor Commissioner shall enforce the 17 provisions of NRS 338.010 to 338.130, inclusive [.] , and sections 18 2, 3 and 4 of this act. 19 2. Except as otherwise provided in NRS 338.035 and 20 338.01165 and sections 3 and 4 of this act, and in addition to any 21 other remedy or penalty provided in this chapter, if any person, 22 including, without limitation, a public body, violates any provision 23 of NRS 338.010 to 338.130, inclusive, and sections 2, 3 and 4 of 24 this act, or any regulation adopted pursuant thereto, the Labor 25 Commissioner may, after providing the person with notice and an 26 opportunity for a hearing, impose against the person an 27 administrative penalty of not more than $5,000 for each such 28 violation. 29 3. The Labor Commissioner may, by regulation, establish a 30 sliding scale based on the severity of the violation to determine the 31 amount of the administrative penalty to be imposed against the 32 person pursuant to this section. 33 4. The Labor Commissioner shall report the violation to the 34 Attorney General, and the Attorney General may prosecute the 35 person in accordance with law. 36 Sec. 8. NRS 338.070 is hereby amended to read as follows: 37 338.070 1. Any public body awarding a contract shall: 38 (a) Investigate possible violations of the provisions of NRS 39 338.010 to 338.090, inclusive, and sections 2, 3 and 4 of this act, 40 committed in the course of the execution of the contract, and 41 determine whether a violation has been committed and inform the 42 Labor Commissioner of any such violations; and 43 (b) When making payments to the contractor engaged on the 44 public work of money becoming due under the contract, withhold 45 – 17 – - *AB222* and retain all sums forfeited pursuant to the provisions of NRS 1 338.010 to 338.090, inclusive [.] , and sections 2, 3 and 4 of this 2 act. 3 2. No sum may be withheld, retained or forfeited, except from 4 the final payment, without a full investigation being made by the 5 awarding public body. 6 3. Except as otherwise provided in subsection 7, it is lawful for 7 any contractor engaged on a public work to withhold from any 8 subcontractor engaged on the public work sufficient sums to cover 9 any penalties withheld from the contractor by the awarding public 10 body on account of the failure of the subcontractor to comply with 11 the terms of NRS 338.010 to 338.090, inclusive [.] , and sections 2, 12 3 and 4 of this act. If payment has already been made to the 13 subcontractor, the contractor may recover from the subcontractor the 14 amount of the penalty or forfeiture in a suit at law. 15 4. A contractor engaged on a public work and each 16 subcontractor engaged on the public work shall: 17 (a) Inquire of each worker employed by the contractor or 18 subcontractor in connection with the public work: 19 (1) Whether the worker wishes to specify voluntarily his or 20 her gender; and 21 (2) Whether the worker wishes to specify voluntarily his or 22 her ethnicity; and 23 (b) For each response the contractor or subcontractor receives 24 pursuant to paragraph (a): 25 (1) If the worker chose voluntarily to specify his or her 26 gender or ethnicity, or both, record the worker’s responses; and 27 (2) If the worker declined to specify his or her gender or 28 ethnicity, or both, record that the worker declined to specify such 29 information. 30 A contractor or subcontractor shall not compel or coerce a worker 31 to specify his or her gender or ethnicity and shall not penalize or 32 otherwise take any adverse action against a worker who declines to 33 specify his or her gender or ethnicity. Before inquiring as to whether 34 a worker wishes to specify voluntarily his or her gender or ethnicity, 35 the applicable contractor or subcontractor must inform the worker 36 that such information, if provided, will be open to public inspection 37 as set forth in subsection 6. 38 5. A contractor engaged on a public work and each 39 subcontractor engaged on the public work shall keep or cause to be 40 kept: 41 (a) An accurate record showing, for each worker employed by 42 the contractor or subcontractor in connection with the public work: 43 (1) The name of the worker; 44 (2) The occupation of the worker; 45 – 18 – - *AB222* (3) The gender of the worker, if the worker voluntarily 1 agreed to specify that information pursuant to subsection 4, or an 2 entry indicating that the worker declined to specify such 3 information; 4 (4) The ethnicity of the worker, if the worker voluntarily 5 agreed to specify that information pursuant to subsection 4, or an 6 entry indicating that the worker declined to specify such 7 information; 8 (5) If the worker has a driver’s license or identification card, 9 an indication of the state or other jurisdiction that issued the license 10 or card; and 11 (6) The actual per diem, wages and benefits paid to the 12 worker; and 13 (b) An additional accurate record showing, for each worker 14 employed by the contractor or subcontractor in connection with the 15 public work who has a driver’s license or identification card: 16 (1) The name of the worker; 17 (2) The driver’s license number or identification card number 18 of the worker; and 19 (3) The state or other jurisdiction that issued the license or 20 card. 21 6. The records maintained pursuant to subsection 5 must be 22 open at all reasonable hours to the inspection of the public body 23 awarding the contract. The contractor engaged on the public work or 24 subcontractor engaged on the public work shall ensure that a copy of 25 each record for each calendar month is received by the public body 26 awarding the contract no later than 15 days after the end of the 27 month. The copy of the record maintained pursuant to paragraph (a) 28 of subsection 5 must be open to public inspection as provided in 29 NRS 239.010. The copy of the record maintained pursuant to 30 paragraph (b) of subsection 5 is confidential and not open to public 31 inspection. The records in the possession of the public body 32 awarding the contract may be discarded by the public body 2 years 33 after final payment is made by the public body for the public work. 34 The Labor Commissioner shall adopt regulations authorizing and 35 prescribing the procedures for the electronic filing of the copies of 36 the records required to be provided monthly by a contractor or 37 subcontractor to a public body pursuant to this subsection. 38 7. A contractor engaged on a public work shall not withhold 39 from a subcontractor engaged on the public work the sums 40 necessary to cover any penalties provided pursuant to subsection 3 41 of NRS 338.060 that may be withheld from the contractor by the 42 public body awarding the contract because the public body did not 43 receive a copy of the record maintained by the subcontractor 44 – 19 – - *AB222* pursuant to subsection 5 for a calendar month by the time specified 1 in subsection 6 if: 2 (a) The subcontractor provided to the contractor, for submission 3 to the public body by the contractor, a copy of the record not later 4 than the later of: 5 (1) Ten days after the end of the month; or 6 (2) A date agreed upon by the contractor and subcontractor; 7 and 8 (b) The contractor failed to submit the copy of the record to the 9 public body by the time specified in subsection 6. 10 Nothing in this subsection prohibits a subcontractor from 11 submitting a copy of a record for a calendar month directly to the 12 public body by the time specified in subsection 6. 13 8. Any contractor or subcontractor, or agent or representative 14 thereof, performing work for a public work who neglects to comply 15 with the provisions of this section is guilty of a misdemeanor. 16 Sec. 9. NRS 338.090 is hereby amended to read as follows: 17 338.090 1. Except as otherwise provided in subsection 5, any 18 person, including the officers, agents or employees of a public body, 19 who violates any provision of NRS 338.010 to 338.090, inclusive, 20 and sections 2, 3 and 4 of this act, or any regulation adopted 21 pursuant thereto, is guilty of a misdemeanor. 22 2. The Labor Commissioner, in addition to any other remedy or 23 penalty provided in this chapter: 24 (a) Shall, except as otherwise provided in subsection 4, assess a 25 person who, after an opportunity for a hearing, is found to have 26 failed to pay the prevailing wage required pursuant to NRS 338.020 27 to 338.090, inclusive, an amount equal to the difference between the 28 prevailing wages required to be paid and the wages that the 29 contractor or subcontractor actually paid; 30 (b) Shall require a person found to have willfully and repeatedly 31 failed to pay the prevailing wage required pursuant to NRS 338.020 32 to 338.090, inclusive, to pay damages to each affected worker in an 33 amount equal to the difference between the prevailing wages 34 required to be paid and the wages that the contractor or 35 subcontractor actually paid to the worker; and 36 (c) May, in addition to any other administrative penalty, impose 37 an administrative penalty not to exceed the costs incurred by the 38 Labor Commissioner to investigate and prosecute the matter. 39 3. If the Labor Commissioner finds that a person has failed to 40 pay the prevailing wage required pursuant to NRS 338.020 to 41 338.090, inclusive, the public body may, in addition to any other 42 remedy or penalty provided in this chapter, require the person to pay 43 the actual costs incurred by the public body to investigate the 44 matter. 45 – 20 – - *AB222* 4. The Labor Commissioner is not required to assess a person 1 an amount equal to the difference between the prevailing wages 2 required to be paid and the wages that the contractor or 3 subcontractor actually paid if the contractor or subcontractor has 4 already paid that amount to a worker pursuant to paragraph (c) of 5 subsection 4 of NRS 338.035. 6 5. The provisions of subsection 1 do not apply to a 7 subcontractor specified in NRS 338.072. 8 Sec. 10. The initial reports required pursuant to subsection 5 9 of section 3 of this act and subsection 5 of section 4 of this act, must 10 be submitted on or before February 15, 2027, and must include 11 information for the period which begins on October 1, 2025, and 12 ends on December 31, 2026. 13 Sec. 11. The amendatory provisions of this act do not apply to 14 a contract for a public work for which bids have been submitted 15 before October 1, 2025. 16 H