A.B. 502 - *AB502* ASSEMBLY BILL NO. 502–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE JOINT INTERIM STANDING COMMITTEE ON GOVERNMENT AFFAIRS) MARCH 24, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to public works. (BDR 28-401) 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; revising provisions relating to the compliance of a contractor or subcontractor with certain requirements relating to apprentices on a public work; revising requirements relating to identifying numbers for public works; revising provisions relating to the imposition of penalties for certain violations; revising provisions relating to the period within which a person is disqualified from being awarded a contract for a public work in certain circumstances; revising provisions relating to the investigation of certain possible violations; creating the Public Works Compliance Division within the Office of Labor Commissioner and prescribing its duties; providing a penalty; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law sets forth the requirements for the State and its political 1 subdivisions to award a contract for the new construction, repair or reconstruction 2 of specified projects that are financed in whole or in part from public money, 3 known as public works. (Chapter 338 of NRS) Existing law creates the Office of 4 Labor Commissioner and requires the Labor Commissioner to enforce specified 5 provisions relating to employment on public works. (NRS 338.010-338.130, 6 607.010) Existing law requires contractors or subcontractors engaged on public 7 works to use apprentices for a certain percentage of the total hours performed on a 8 – 2 – - *AB502* public work, depending on certain conditions related to the public work, and to 9 report certain information regarding the public works for the previous year to the 10 Labor Commissioner, except identifying information about a public work or an 11 apprentice or employee. Existing law further requires a contractor or subcontractor 12 on a public work to maintain and provide to the Labor Commissioner any 13 supporting documentation to show that the contractor or subcontractor made a good 14 faith effort to comply with the apprenticeship requirement. Such a good faith effort 15 includes submitting to an apprenticeship program a request for an apprentice: (1) 16 not earlier than 10 days before the contractor or subcontractor is scheduled to begin 17 work on the public work; and (2) if a contractor or subcontractor does not work 18 continuously on a public work, not earlier than 10 days before the contractor or 19 subcontractor is scheduled to resume work on the public work. (NRS 338.01165) 20 Section 1 of this bill removes the 10-day time limitation on requesting an 21 apprentice, thereby allowing for an apprentice to be requested by a contractor or 22 subcontractor at any time before work on a public work is scheduled to begin or 23 resume. Section 1 also removes the exception for not reporting identifying 24 information about a public work, thereby requiring the reporting of such 25 information to the Labor Commissioner. 26 Existing law, in part, requires a public body that undertakes a public work to: 27 (1) request an identifying number with a designation of the work and include the 28 number in any advertisement or other type of solicitation; and (2) report to the 29 Labor Commissioner the award of a contract within 10 days after the award and 30 subsequently report the completion of the work under the contract. (NRS 338.013) 31 Section 2 of this bill requires that a public body request such an identifying number 32 not less than 10 days before any advertisement or other type of solicitation for the 33 public work is published or made, as applicable. Section 2 also imposes a penalty 34 for each calendar day or portion thereof that a public body is not in compliance 35 with the reporting requirements. 36 Existing law authorizes the Labor Commissioner to impose an administrative 37 penalty, in addition to any other remedy or penalty authorized by law, if any 38 person, including, without limitation, a public body, violates certain provisions 39 relating to public works in the amount of not more than $5,000 for each such 40 violation. (NRS 338.015) Section 3 of this bill limits the existing maximum penalty 41 to the first violation and authorizes the imposition of an administrative penalty of 42 not less than $5,000 for each subsequent violation. 43 Under existing law, if an administrative penalty is imposed against a person for 44 a violation of certain provisions relating to public works, the Labor Commissioner 45 is authorized to prohibit the person from being awarded a contract for a public 46 work: (1) for the first offense, for a period of 3 years after the date of the imposition 47 of the administrative penalty; and (2) for the second or subsequent offense, for a 48 period of 5 years after the date of the imposition of the administrative penalty. 49 (NRS 338.017) Section 4 of this bill instead provides for the issuance of a warning 50 for the first offense and revises the duration of the period of the disqualification as 51 follows: (1) for the second offense, a period of 180 days after the date of the 52 imposition of the administrative penalty; (2) for the third offense, a period of 1 year 53 after the date of the imposition of the administrative penalty; and (3) for the fourth 54 or subsequent offense, a period of 3 years after the date of the imposition of the 55 administrative penalty. 56 Existing law requires any public body awarding a contract for a public work to 57 investigate possible violations of certain laws relating to public works and 58 determine whether a violation has been committed and inform the Labor 59 Commissioner of any such violations. (NRS 338.070) Section 5 of this bill requires 60 a public body, within 30 days after substantial completion of a contract for a public 61 work, to: (1) conduct an investigation and make a determination regarding any 62 violation; or (2) refer the matter to the Public Works Compliance Division, which is 63 – 3 – - *AB502* created within the Office of Labor Commissioner in section 8 of this bill. Section 7 64 of this bill requires the Division to: (1) investigate possible violations of certain 65 laws relating to public works at the direction of the Labor Commissioner or upon 66 receipt of a referral from a public body; (2) submit to the Labor Commissioner a 67 written report concerning such an investigation and, if applicable, provide a copy of 68 the report to the referring public body upon completion of the investigation; and (3) 69 perform any other duties related to the enforcement of certain provisions relating to 70 public works, as directed by the Labor Commissioner. Sections 9 and 10 of this 71 bill make conforming changes related to the creation of the Division. 72 Existing law requires a public body to withhold and retain from payments to a 73 contractor on a public work sums that are forfeited as a result of the violation of 74 certain laws relating to public works. Existing law also prohibits any sums from 75 being withheld, retained or forfeited, except from the final payment, without a full 76 investigation being made by the awarding public body. (NRS 338.070) Section 5 77 requires a public body who refers the investigation of possible offenses to the 78 Division to withhold and retain all sums believed to be forfeited by the violation of 79 such laws until an investigation has been completed by the Division and the Labor 80 Commissioner has determined if any violations were committed. Section 5 81 authorizes the Labor Commissioner to impose against a public body that fails to 82 investigate possible violations of certain laws relating to a public work or refer 83 possible violations to the Public Works Compliance Division within the prescribed 84 time period: (1) a fee of $1,000 for each contractor or subcontractor found to be in 85 violation of such provisions; and (2) an administrative penalty of $2,000 for each 86 contractor or subcontractor found to be in violation of such provisions. 87 Existing law requires that a person found to have willfully and repeatedly failed 88 to pay the prevailing wage required by law be required to pay certain damages to 89 each affected worker. (NRS 338.090) Section 6 of this bill removes the 90 requirement of willfulness, thus making the penalty applicable to a person who 91 repeatedly fails to pay the prevailing wage. 92 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 338.01165 is hereby amended to read as 1 follows: 2 338.01165 1. Notwithstanding any other provision of this 3 chapter and except as otherwise provided in this section, a 4 contractor or subcontractor engaged in vertical construction who 5 employs workers on one or more public works during a calendar 6 year pursuant to NRS 338.040 shall use one or more apprentices for 7 at least 10 percent, or any increased percentage established pursuant 8 to subsection 3, of the total hours of labor worked for each 9 apprenticed craft or type of work to be performed on those public 10 works. 11 2. Notwithstanding any other provision of this chapter and 12 except as otherwise provided in this section, a contractor or 13 subcontractor engaged in horizontal construction who employs 14 workers on one or more public works during a calendar year 15 pursuant to NRS 338.040 shall use one or more apprentices for at 16 – 4 – - *AB502* least 3 percent, or any increased percentage established pursuant to 1 subsection 3, of the total hours of labor worked for each apprenticed 2 craft or type of work to be performed on those public works. 3 3. On or after January 1, 2021, the Labor Commissioner, in 4 collaboration with the State Apprenticeship Council, may adopt 5 regulations to increase the percentage of total hours of labor 6 required to be performed by an apprentice pursuant to subsection 1 7 or 2 by not more than 2 percentage points. 8 4. An apprentice who graduates from an apprenticeship 9 program while employed on a public work shall: 10 (a) Be deemed an apprentice on the public work for the purposes 11 of subsections 1 and 2. 12 (b) Be deemed a journeyman for all other purposes, including, 13 without limitation, the payment of wages or the payment of wages 14 and benefits to a journeyman covered by a collective bargaining 15 agreement. 16 5. If a contractor or subcontractor who is a signatory to a 17 collective bargaining agreement with a union that sponsors an 18 apprenticeship program for an apprenticed craft or type of work for 19 which the term of apprenticeship is not more than 3 years requests 20 an apprentice from that apprenticeship program and an apprentice in 21 the appropriate craft or type of work is not available, the contractor 22 or subcontractor may utilize a person who graduated from the 23 apprenticeship program in that craft or type of work within the 3 24 years immediately preceding the request from the contractor or 25 subcontractor. Such a person: 26 (a) Shall be deemed an apprentice on the public work for the 27 purposes of subsections 1 and 2. 28 (b) Shall be deemed a journeyman for all other purposes, 29 including, without limitation, the payment of wages and benefits to 30 a journeyman pursuant to the collective bargaining agreement. 31 6. A contractor or subcontractor engaged on a public work is 32 not required to use an apprentice in a craft or type of work 33 performed in a jurisdiction recognized by the State Apprenticeship 34 Council as not having apprentices in that craft or type of work. 35 7. A contractor or subcontractor engaged on a public work 36 shall maintain and provide to the Labor Commissioner any 37 supporting documentation to show that the contractor or 38 subcontractor made a good faith effort to comply with subsection 1 39 or 2, as applicable, as determined by the Labor Commissioner. For 40 purposes of this subsection, a contractor or subcontractor: 41 (a) Makes a good faith effort to comply with subsection 1 or 2, 42 as applicable, if the contractor or subcontractor: 43 (1) Submits to the apprenticeship program, on the form 44 prescribed by the Labor Commissioner, a request for an apprentice 45 – 5 – - *AB502* [not earlier than 10 days] before the contractor or subcontractor is 1 scheduled to begin work on the public work and not later than 5 2 days after the contractor or subcontractor actually begins work on 3 the public work. 4 (2) If the apprenticeship program does not provide an 5 apprentice for the appropriate apprenticed craft or type of work 6 upon a request pursuant to subparagraph (1), submits additional 7 requests to the apprenticeship program, on the form prescribed by 8 the Labor Commissioner, at least once every 30 days during the 9 period that the contractor or subcontractor is working on the public 10 work. If a contractor or subcontractor does not work continuously 11 on the public work, the contractor or subcontractor shall submit an 12 additional request each time that the contractor or subcontractor 13 resumes work on the public work [not earlier than 10 days] before 14 the contractor or subcontractor is scheduled to resume work on the 15 public work and not later than 5 days after the contractor or 16 subcontractor actually resumes work on the public work. The 17 requirement for the submission of an additional request in this 18 subparagraph does not apply whenever a contractor or subcontractor 19 has one or more apprentices employed for that apprenticed craft or 20 type of work. 21 (b) Does not make a good faith effort to comply with subsection 22 1 or 2, as applicable, as determined by the Labor Commissioner, if 23 the contractor or subcontractor is required to enter into an 24 apprenticeship agreement pursuant to subsection 16 and refuses to 25 do so. 26 8. The supporting documentation required pursuant to 27 subsection 7 may include, without limitation: 28 (a) Documentation of the submission by the contractor or 29 subcontractor of one or more requests, as applicable, pursuant to 30 subsection 7; and 31 (b) Documentation that the apprenticeship program denied such 32 a request, did not respond to such a request or responded that the 33 program was unable to provide the requested apprentice. 34 9. The contractor or subcontractor and the apprenticeship 35 program shall coordinate the starting date for any apprentice 36 provided by the program. 37 10. On or before February 15 of each year, a contractor or 38 subcontractor engaged in vertical or horizontal construction, as 39 applicable, who employs a worker on one or more public works 40 pursuant to NRS 338.040 shall report to the Labor Commissioner, 41 on the form prescribed by the Labor Commissioner, the following 42 information regarding those public works for the previous calendar 43 year: 44 – 6 – - *AB502* (a) For each apprenticed craft or type of work, the total number 1 of hours worked on vertical construction. 2 (b) For each apprenticed craft or type of work, the total number 3 of hours worked on horizontal construction. 4 (c) For each apprenticed craft or type of work, the total number 5 of hours worked by apprentices on vertical construction. 6 (d) For each apprenticed craft or type of work, the total number 7 of hours worked by apprentices on horizontal construction. 8 (e) For each apprenticed craft or type of work, the percentage of 9 the total number of hours worked on vertical construction that were 10 worked by apprentices. 11 (f) For each apprenticed craft or type of work, the percentage of 12 the total number of hours worked on horizontal construction that 13 were worked by apprentices. 14 11. The information required to be reported pursuant to 15 subsection 10 must not include any identifying information about [a 16 public work or] an apprentice or employee. 17 12. If the Labor Commissioner, on his or her own initiative or 18 based on a complaint, makes a determination based on the 19 information submitted pursuant to subsection 10 that a contractor or 20 subcontractor did not make a good faith effort to comply with the 21 provisions of subsection 1 or 2, as applicable, the Labor 22 Commissioner shall notify the contractor or subcontractor in writing 23 of the determination and: 24 (a) Except as otherwise provided in paragraph (b), shall assess a 25 penalty as follows: 26 (1) If the apprentice utilization rate by the contractor or 27 subcontractor on vertical construction of a public work is: 28 (I) Seven and one-half percent or more but less than 10 29 percent of the total hours of labor worked for an apprenticed craft or 30 type of work, a penalty of $2,500 or $2 for each hour below the 31 percentage required, whichever is higher. 32 (II) More than 4 percent but less than 7.5 percent of the 33 total hours of labor worked for an apprenticed craft or type of work, 34 a penalty of $3,000 or $4 for each hour below the percentage 35 required, whichever is higher. 36 (III) Four percent or less of the total hours of labor 37 worked for an apprenticed craft or type of work, a penalty of $5,000 38 or $6 for each hour below the percentage required, whichever is 39 higher. 40 (2) If the apprentice utilization rate by the contractor or 41 subcontractor on horizontal construction of a public work is: 42 (I) Two percent or more but less than 3 percent of the 43 total hours of labor worked for an apprenticed craft or type of work, 44 – 7 – - *AB502* a penalty of $2,500 or $2 for each hour below the percentage 1 required, whichever is higher. 2 (II) More than 1 percent but less than 2 percent of the 3 total hours of labor worked for an apprenticed craft or type of work, 4 a penalty of $3,000 or $4 for each hour below the percentage 5 required, whichever is higher. 6 (III) One percent or less of the total hours of labor worked 7 for an apprenticed craft or type of work, a penalty of $5,000 or $6 8 for each hour below the percentage required, whichever is higher. 9 (b) Shall not assess a penalty if the total number of hours of 10 labor required to be worked by apprentices: 11 (1) On vertical construction pursuant to subsection 1, as 12 applicable, during the previous calendar year is less than 40 hours. 13 (2) On horizontal construction pursuant to subsection 2, as 14 applicable, during the previous calendar year is less than 24 hours. 15 13. Except for good cause, the Labor Commissioner may not 16 initiate his or her own investigation or accept a complaint based on 17 the information submitted by a contractor or subcontractor pursuant 18 to subsection 10 after May 1 immediately following the date on 19 which the report was received by the Labor Commissioner. 20 14. In addition to the penalties set forth in subsection 12, if the 21 Labor Commissioner, on his or her own initiative or based on a 22 complaint, makes a determination that a contractor or subcontractor 23 did not submit the report required pursuant to subsection 10 or made 24 no attempt to comply with the provisions of subsection 1 or 2, as 25 applicable, the Labor Commissioner shall: 26 (a) Impose a penalty of not less than $10,000 but not more than 27 $75,000; or 28 (b) Disqualify the contractor or subcontractor from being 29 awarded a contract for a public work for at least 180 days but not 30 more than 2 years. 31 15. A contractor or subcontractor may request a hearing on the 32 determination of the Labor Commissioner pursuant to subsection 12 33 or 14 within 10 days after receipt of the determination of the Labor 34 Commissioner. The hearing must be conducted in accordance with 35 regulations adopted by the Labor Commissioner. If the Labor 36 Commissioner does not receive a request for a hearing pursuant to 37 this subsection, the determination of the Labor Commissioner is a 38 final decision for the purposes of judicial review pursuant to chapter 39 233B of NRS. 40 16. A contractor or subcontractor who is not a signatory to a 41 collective bargaining agreement with the union sponsoring the 42 apprenticeship program for an apprenticed craft or type of work 43 engaged on a public work shall enter into an apprenticeship 44 – 8 – - *AB502* agreement for each apprentice required to be used in the 1 construction of a public work. 2 17. As used in this section: 3 (a) “Apprentice” means a person enrolled in an apprenticeship 4 program recognized by the State Apprenticeship Council. 5 (b) “Apprenticed craft or type of work” means a craft or type of 6 work for which there is an existing apprenticeship program 7 recognized by the State Apprenticeship Council. 8 (c) “Apprenticeship program” means an apprenticeship program 9 recognized by the State Apprenticeship Council. 10 (d) “Journeyman” has the meaning ascribed to it in 11 NRS 624.260. 12 (e) “State Apprenticeship Council” means the State 13 Apprenticeship Council created by NRS 610.030. 14 Sec. 2. NRS 338.013 is hereby amended to read as follows: 15 338.013 1. A public body that undertakes a public work shall 16 request from the Labor Commissioner [, and include in any 17 advertisement or other type of solicitation,] an identifying number 18 with a designation of the work [.] not less than 10 days before any 19 advertisement or other type of solicitation is published or made for 20 the public work. That number must be included in any such 21 advertisement or solicitation or any bid or other document 22 submitted in response to the advertisement or [other type of] 23 solicitation. 24 2. Each public body which awards a contract for any public 25 work shall report its award to the Labor Commissioner within 10 26 days after the award, giving the name and address of the contractor 27 to whom the public body awarded the contract and the identifying 28 number for the public work. 29 3. Each contractor engaged on a public work shall report to the 30 Labor Commissioner and the public body that awarded the contract 31 the name and address of each subcontractor whom the contractor 32 engages for work on the project within 10 days after the 33 subcontractor commences work on the contract and the identifying 34 number for the public work. 35 4. The public body which awarded the contract shall report the 36 completion of all work performed under the contract to the Labor 37 Commissioner before the final payment of money due the contractor 38 by the public body. 39 5. If a public body fails to comply with subsection 2 or 4, the 40 Labor Commissioner shall impose against the public body a 41 penalty of $50 for each calendar day or portion thereof that the 42 public body is not in compliance. 43 – 9 – - *AB502* Sec. 3. NRS 338.015 is hereby amended to read as follows: 1 338.015 1. The Labor Commissioner shall enforce the 2 provisions of NRS 338.010 to 338.130, inclusive. 3 2. Except as otherwise provided in NRS 338.035 and in 4 addition to any other remedy or penalty provided in this chapter, if 5 any person, including, without limitation, a public body, violates 6 any provision of NRS 338.010 to 338.130, inclusive, or any 7 regulation adopted pursuant thereto, the Labor Commissioner may, 8 after providing the person with notice and an opportunity for a 9 hearing, impose against the person an administrative penalty of 10 [not] : 11 (a) Not more than $5,000 for [each such violation.] the first 12 violation; and 13 (b) Not less than $5,000 for each subsequent violation. 14 3. The Labor Commissioner may, by regulation, establish a 15 sliding scale based on the severity of the violation to determine the 16 amount of the administrative penalty to be imposed against the 17 person pursuant to this section. 18 4. The Labor Commissioner shall report the violation to the 19 Attorney General, and the Attorney General may prosecute the 20 person in accordance with law. 21 Sec. 4. NRS 338.017 is hereby amended to read as follows: 22 338.017 1. If any administrative penalty is imposed pursuant 23 to this chapter against a [person] contractor or subcontractor for 24 the commission of an offense, [that person,] the Labor 25 Commissioner may take the following actions against the 26 contractor or subcontractor and the corporate officers, if any, of 27 [that person, may not be awarded a contract for a public work:] the 28 contractor or subcontractor: 29 (a) [For] Issue a warning for the first offense . [,] 30 (b) Disqualify the contractor or subcontractor and any 31 corporate officers thereof from being awarded a contract for a 32 public work or entering into a contract to perform work on a 33 public work, as applicable: 34 (1) For the second offense, for a period of [3 years] 180 35 days after the date of the imposition of the administrative penalty; 36 [and 37 (b)] (2) For the third offense, for a period of 1 year after the 38 date of the imposition of the administrative penalty; and 39 (3) For the [second] fourth or subsequent offense, for a 40 period of [5] 3 years after the date of the imposition of the 41 administrative penalty. 42 2. A person, and the corporate officers, if any, of that person, 43 who is identified in the System for Award Management Exclusions 44 operated by the General Services Administration as being excluded 45 – 10 – - *AB502* from receiving contracts from the Federal Government pursuant to 1 48 C.F.R. §§ 9.400 et seq. as a result of being debarred may not be 2 awarded a contract for a public work for the period of debarment of 3 the contractor from receiving contracts from the Federal 4 Government. 5 3. The Labor Commissioner, upon learning that a contractor 6 has been excluded from receiving contracts from the Federal 7 Government pursuant to 48 C.F.R. §§ 9.400 et seq. as a result of 8 being debarred, shall disqualify the contractor from being awarded a 9 contract for a public work as provided in subsection 2. 10 4. The Labor Commissioner shall notify the State Contractors’ 11 Board of each contractor or subcontractor who is [prohibited or] 12 disqualified from being awarded a contract for a public work 13 pursuant to this section. 14 Sec. 5. NRS 338.070 is hereby amended to read as follows: 15 338.070 1. Any public body awarding a contract shall [:] , 16 within 30 days after substantial completion of the contract: 17 (a) Investigate possible violations of the provisions of NRS 18 338.010 to 338.090, inclusive, committed in the course of the 19 execution of the contract, and determine whether a violation has 20 been committed and inform the Labor Commissioner of any such 21 violations; [and] or 22 (b) Refer a possible violation of the provisions of NRS 338.010 23 to 338.090, inclusive, to the Public Works Compliance Division in 24 the Office of Labor Commissioner. Such a referral must be made 25 on a form prescribed by the Labor Commissioner. 26 2. [When] Except as otherwise provided in this subsection, 27 when making payments to the contractor engaged on the public 28 work of money becoming due under the contract, a public body 29 shall withhold and retain all sums forfeited pursuant to the 30 provisions of NRS 338.010 to 338.090, inclusive. 31 [2.] No sum may be withheld, retained or forfeited, except 32 from the final payment, without a full investigation being made by 33 the awarding public body [.] or the Public Works Compliance 34 Division pursuant to section 7 of this act. 35 3. Except as otherwise provided in subsection 7, it is lawful for 36 any contractor engaged on a public work to withhold from any 37 subcontractor engaged on the public work sufficient sums to cover 38 any penalties withheld from the contractor by the awarding public 39 body on account of the failure of the subcontractor to comply with 40 the terms of NRS 338.010 to 338.090, inclusive. If payment has 41 already been made to the subcontractor, the contractor may recover 42 from the subcontractor the amount of the penalty or forfeiture in a 43 suit at law. 44 – 11 – - *AB502* 4. A contractor engaged on a public work and each 1 subcontractor engaged on the public work shall: 2 (a) Inquire of each worker employed by the contractor or 3 subcontractor in connection with the public work: 4 (1) Whether the worker wishes to specify voluntarily his or 5 her gender; and 6 (2) Whether the worker wishes to specify voluntarily his or 7 her ethnicity; and 8 (b) For each response the contractor or subcontractor receives 9 pursuant to paragraph (a): 10 (1) If the worker chose voluntarily to specify his or her 11 gender or ethnicity, or both, record the worker’s responses; and 12 (2) If the worker declined to specify his or her gender or 13 ethnicity, or both, record that the worker declined to specify such 14 information. 15 A contractor or subcontractor shall not compel or coerce a worker 16 to specify his or her gender or ethnicity and shall not penalize or 17 otherwise take any adverse action against a worker who declines to 18 specify his or her gender or ethnicity. Before inquiring as to whether 19 a worker wishes to specify voluntarily his or her gender or ethnicity, 20 the applicable contractor or subcontractor must inform the worker 21 that such information, if provided, will be open to public inspection 22 as set forth in subsection 6. 23 5. A contractor engaged on a public work and each 24 subcontractor engaged on the public work shall keep or cause to be 25 kept: 26 (a) An accurate record showing, for each worker employed by 27 the contractor or subcontractor in connection with the public work: 28 (1) The name of the worker; 29 (2) The occupation of the worker; 30 (3) The gender of the worker, if the worker voluntarily 31 agreed to specify that information pursuant to subsection 4, or an 32 entry indicating that the worker declined to specify such 33 information; 34 (4) The ethnicity of the worker, if the worker voluntarily 35 agreed to specify that information pursuant to subsection 4, or an 36 entry indicating that the worker declined to specify such 37 information; 38 (5) If the worker has a driver’s license or identification card, 39 an indication of the state or other jurisdiction that issued the license 40 or card; and 41 (6) The actual per diem, wages and benefits paid to the 42 worker; and 43 – 12 – - *AB502* (b) An additional accurate record showing, for each worker 1 employed by the contractor or subcontractor in connection with the 2 public work who has a driver’s license or identification card: 3 (1) The name of the worker; 4 (2) The driver’s license number or identification card number 5 of the worker; and 6 (3) The state or other jurisdiction that issued the license or 7 card. 8 6. The records maintained pursuant to subsection 5 must be 9 open at all reasonable hours to the inspection of the public body 10 awarding the contract. The contractor engaged on the public work or 11 subcontractor engaged on the public work shall ensure that a copy of 12 each record for each calendar month is received by the public body 13 awarding the contract no later than 15 days after the end of the 14 month. The copy of the record maintained pursuant to paragraph (a) 15 of subsection 5 must be open to public inspection as provided in 16 NRS 239.010. The copy of the record maintained pursuant to 17 paragraph (b) of subsection 5 is confidential and not open to public 18 inspection. The records in the possession of the public body 19 awarding the contract may be discarded by the public body 2 years 20 after final payment is made by the public body for the public work. 21 The Labor Commissioner shall adopt regulations authorizing and 22 prescribing the procedures for the electronic filing of the copies of 23 the records required to be provided monthly by a contractor or 24 subcontractor to a public body pursuant to this subsection. 25 7. A contractor engaged on a public work shall not withhold 26 from a subcontractor engaged on the public work the sums 27 necessary to cover any penalties provided pursuant to subsection 3 28 of NRS 338.060 that may be withheld from the contractor by the 29 public body awarding the contract because the public body did not 30 receive a copy of the record maintained by the subcontractor 31 pursuant to subsection 5 for a calendar month by the time specified 32 in subsection 6 if: 33 (a) The subcontractor provided to the contractor, for submission 34 to the public body by the contractor, a copy of the record not later 35 than the later of: 36 (1) Ten days after the end of the month; or 37 (2) A date agreed upon by the contractor and subcontractor; 38 and 39 (b) The contractor failed to submit the copy of the record to the 40 public body by the time specified in subsection 6. 41 Nothing in this subsection prohibits a subcontractor from 42 submitting a copy of a record for a calendar month directly to the 43 public body by the time specified in subsection 6. 44 – 13 – - *AB502* 8. Any contractor or subcontractor, or agent or representative 1 thereof, performing work for a public work who neglects to comply 2 with the provisions of this section is guilty of a misdemeanor. 3 9. If the Labor Commissioner finds that a public body has 4 failed to comply with the requirements of subsection 1, the Labor 5 Commissioner shall impose against the public body: 6 (a) A fee of $1,000 for each contractor or subcontractor found 7 to be in violation of the provisions of NRS 338.010 to 338.090, 8 inclusive, on the public work; and 9 (b) An administrative penalty of $2,000 for each contractor or 10 subcontractor found to be in violation of the provisions of NRS 11 338.010 to 338.090, inclusive, on the public work. 12 10. As used in this section, “substantial completion” means 13 that the construction of a public work is, in accordance with the 14 contract documents, sufficiently complete that the owner can 15 occupy and use the public work as intended. 16 Sec. 6. 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 or any regulation adopted pursuant thereto, is guilty of a 21 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] 31 repeatedly failed to pay the prevailing wage required pursuant to 32 NRS 338.020 to 338.090, inclusive, to pay damages to each affected 33 worker in an amount equal to the difference between the prevailing 34 wages 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 – 14 – - *AB502* 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. 7. Chapter 607 of NRS is hereby amended by adding 9 thereto a new section to read as follows: 10 The Public Works Compliance Division shall: 11 1. At the direction of the Labor Commissioner or upon 12 receipt of a referral made by a public body pursuant to 13 NRS 338.070: 14 (a) Investigate possible violations of the provisions of NRS 15 338.010 to 338.090, inclusive; and 16 (b) Submit to the Labor Commissioner a written report 17 concerning an investigation conducted pursuant to paragraph (a). 18 If the investigation was conducted pursuant to a referral made by 19 a public body pursuant to NRS 338.070, a copy of the report must 20 be provided to the public body. 21 2. Perform any other duties related to the enforcement of 22 NRS 338.010 to 338.130, inclusive, as directed by the Labor 23 Commissioner. 24 Sec. 8. NRS 607.010 is hereby amended to read as follows: 25 607.010 The Office of Labor Commissioner is hereby created. 26 The Office consists of the Labor Commissioner and the Public 27 Works Compliance Division. 28 Sec. 9. NRS 607.060 is hereby amended to read as follows: 29 607.060 The Labor Commissioner may employ: 30 1. One Chief Assistant, who is in the unclassified service of the 31 State. 32 2. Stenographic, clerical and statistical assistance. 33 3. Any personnel necessary to carry out the duties of the 34 Public Works Compliance Division. 35 Sec. 10. NRS 607.130 is hereby amended to read as follows: 36 607.130 Upon the written request of the Office of Labor 37 Commissioner, all state and county officers shall furnish all 38 information in their power necessary to assist in carrying out the 39 objects of this chapter. 40 Sec. 11. 1. This section becomes effective upon passage and 41 approval. 42 2. Sections 1 to 10, inclusive, of this act become effective: 43 – 15 – - *AB502* (a) Upon passage and approval for the purpose of adopting any 1 regulations and performing any other preparatory administrative 2 tasks that are necessary to carry out the provisions of this act; and 3 (b) On January 1, 2026, for all other purposes. 4 H