AB213 - Revises provisions governing public works projects. (BDR 28-816)

- 83rd Session (2025) Assembly Bill No. 213–Assemblymember Monroe-Moreno CHAPTER.......... AN ACT relating to governmental administration; requiring certain persons who qualify for certain preferences in bidding on a public work to certify, under certain conditions, that the persons will ensure that any nonstandard good or material procured for the public work is custom fabricated in this State; requiring the payment of prevailing wages to workers who perform custom fabrication on a public work or for certain performance contracts of local governments or state agencies; requiring the payment of prevailing wages to workers who perform custom fabrication on any project financed or otherwise undertaken by the Tahoe-Douglas Visitor’s Authority; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Under existing law, every contract to which a public body of this State is a party, requiring the employment of skilled mechanics, skilled workers, semiskilled mechanics, semiskilled workers or unskilled labor in the performance of a public work, must contain in express terms the hourly and daily rate of wages to be paid to each of the classes of mechanics and workers. The hourly and daily rate of wages must not be less than the prevailing wage in the region in which the public work is located, as determined by the Labor Commissioner. (NRS 338.020) Section 2 of this bill provides that workers who perform custom fabrication on a public work must also be paid such a prevailing wage. Section 2.2 of this bill provides that workers who perform custom fabrication for a public work are deemed to be employed on the public work regardless of the location at which the custom fabrication is performed. Section 1 of this bill: (1) defines the term “custom fabrication”; (2) defines the term “nonstandard good or material”; and (3) revises the definition of “worker” to include a worker who performs custom fabrication. Under existing law, performance contracts for certain operating cost-savings measures entered into by local governments and state agencies must contain in express terms the hourly and daily rate of wages to be paid to each class of mechanics and workers. Such wages must not be less than the prevailing wage in the region in which the local government or state agency is located. (NRS 332.390, 333A.120) Similar to section 1, sections 3 and 4 of this bill, respectively, provide that workers who perform custom fabrication must also be paid such a prevailing wage. The Tahoe-Douglas Visitor’s Authority Act requires the payment of prevailing wages on any project financed or otherwise undertaken by the Tahoe-Douglas Visitor’s Authority that requires the employment of certain workers even if the project does not qualify as a public work. (Section 33 of chapter 375, Statutes of Nevada 2019, at page 2364) Section 5 of this bill provides that workers who perform custom fabrication on such a project must also be paid prevailing wages. Section 6 of this bill provides that the requirement to pay prevailing wage to workers who perform custom fabrication does not apply to a public works contract or performance contract awarded before January 1, 2026. – 2 – - 83rd Session (2025) Existing law provides that as a condition of receiving certain preferences in bidding on a public work, a contractor, an applicant or a design-build team is required to submit to the public body sponsoring or financing the public work, a signed affidavit which makes certain certifications. (NRS 338.0117) Section 1.5 of this bill requires an additional certification that if the public work requires the procurement of any nonstandard good or material and is located in a county whose population is 100,000 or more (currently Clark and Washoe Counties), the contractor, applicant or design-build team and any subcontractor engaged on the public work will: (1) ensure that each nonstandard good or material is custom fabricated in this State; and (2) maintain and make available for inspection certain records concerning each nonstandard good or material procured for the public work. Sections 2.3 and 2.7 of this bill make conforming changes to refer to provisions that have been renumbered in section 1.5. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 338.010 is hereby amended to read as follows: 338.010 As used in this chapter: 1. “Authorized representative” means a person designated by a public body to be responsible for the development, solicitation, award or administration of contracts for public works pursuant to this chapter. 2. “Bona fide fringe benefit” means a benefit in the form of a contribution that is made not less frequently than monthly to an independent third party pursuant to a fund, plan or program: (a) Which is established for the sole and exclusive benefit of a worker and his or her family and dependents; and (b) For which none of the assets will revert to, or otherwise be credited to, any contributing employer or sponsor of the fund, plan or program.  The term includes, without limitation, benefits for a worker that are determined pursuant to a collective bargaining agreement and included in the determination of the prevailing wage by the Labor Commissioner pursuant to NRS 338.030. 3. “Contract” means a written contract entered into between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work. 4. “Contractor” means: (a) A person who is licensed pursuant to the provisions of chapter 624 of NRS. (b) A design-build team. – 3 – - 83rd Session (2025) 5. “Custom fabricated” and “custom fabrication” means the manufacture, assembly or other production of any nonstandard good or material that is manufactured, assembled or otherwise produced for a specific public work. 6. “Day labor” means all cases where public bodies, their officers, agents or employees, hire, supervise and pay the wages thereof directly to a worker or workers employed by them on public works by the day and not under a contract in writing. [6.] 7. “Design-build contract” means a contract between a public body and a design-build team in which the design-build team agrees to design and construct a public work. [7.] 8. “Design-build team” means an entity that consists of: (a) At least one person who is licensed as a general engineering contractor or a general building contractor pursuant to chapter 624 of NRS; and (b) For a public work that consists of: (1) A building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS. (2) Anything other than a building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or landscape architecture pursuant to chapter 623A of NRS or who is licensed as a professional engineer pursuant to chapter 625 of NRS. [8.] 9. “Design professional” means: (a) A person who is licensed as a professional engineer pursuant to chapter 625 of NRS; (b) A person who is licensed as a professional land surveyor pursuant to chapter 625 of NRS; (c) A person who holds a certificate of registration to engage in the practice of architecture, interior design or residential design pursuant to chapter 623 of NRS; (d) A person who holds a certificate of registration to engage in the practice of landscape architecture pursuant to chapter 623A of NRS; or (e) A business entity that engages in the practice of professional engineering, land surveying, architecture or landscape architecture. [9.] 10. “Discrete project” means one or more public works which are undertaken on a single construction site for a single public body. The term does not include one or more public works that are undertaken on multiple construction sites regardless of whether the public body which sponsors or finances the public works bundles the public works together. – 4 – - 83rd Session (2025) [10.] 11. “Division” means the State Public Works Division of the Department of Administration. [11.] 12. “Eligible bidder” means a person who is: (a) Found to be a responsible and responsive contractor by a local government or its authorized representative which requests bids for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373; or (b) Determined by a public body or its authorized representative which awarded a contract for a public work pursuant to NRS 338.1375 to 338.139, inclusive, to be qualified to bid on that contract pursuant to NRS 338.1379 or 338.1382. [12.] 13. “General contractor” means a person who is licensed to conduct business in one, or both, of the following branches of the contracting business: (a) General engineering contracting, as described in subsection 2 of NRS 624.215. (b) General building contracting, as described in subsection 3 of NRS 624.215. [13.] 14. “Governing body” means the board, council, commission or other body in which the general legislative and fiscal powers of a local government are vested. [14.] 15. “Horizontal construction” means any construction, alteration, repair, renovation, demolition or remodeling necessary to complete a public work, including, without limitation, any irrigation, drainage, water supply, flood control, harbor, railroad, highway, tunnel, airport or airway, sewer, sewage disposal plant or water treatment facility and any ancillary vertical components thereof, bridge, inland waterway, pipeline for the transmission of petroleum or any other liquid or gaseous substance, pier, and any other work incidental thereto. The term does not include vertical construction, the construction of any terminal or other building of an airport or airway, or the construction of any other building. [15.] 16. “Local government” means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 318, 318A, 379, 474, 538, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision. The term includes a person who has been designated by the governing body of a local government to serve as its authorized representative. – 5 – - 83rd Session (2025) [16.] 17. “Nonstandard good or material” includes, without limitation, any nonstandard good or material used in any of the following building systems: (a) Plumbing or pipe fitting; (b) Ventilation system; (c) Air-conditioning system; (d) Heating system; (e) Sheet metal or any other sheet metal product; and (f) Signage, including, without limitation, any illuminated or unilluminated sign. 18. “Offense” means: (a) Failing to: (1) Pay the prevailing wage required pursuant to this chapter; (2) Pay the contributions for unemployment compensation required pursuant to chapter 612 of NRS; (3) Provide and secure compensation for employees required pursuant to chapters 616A to 617, inclusive, of NRS; or (4) Comply with subsection 5 or 6 of NRS 338.070. (b) Discharging an obligation to pay wages in a manner that violates the provisions of NRS 338.035. [17.] 19. “Prime contractor” means a contractor who: (a) Contracts to construct an entire project; (b) Coordinates all work performed on the entire project; (c) Uses his or her own workforce to perform all or a part of the public work; and (d) Contracts for the services of any subcontractor or independent contractor or is responsible for payment to any contracted subcontractors or independent contractors.  The term includes, without limitation, a general contractor or a specialty contractor who is authorized to bid on a project pursuant to NRS 338.139 or 338.148. [18.] 20. “Public body” means the State, county, city, town, school district or any public agency of this State or its political subdivisions sponsoring or financing a public work. [19.] 21. “Public work” means any project for the new construction, repair or reconstruction of a project financed in whole or in part from public money for: (a) Public buildings; (b) Jails and prisons; (c) Public roads; (d) Public highways; (e) Public streets and alleys; (f) Public utilities; – 6 – - 83rd Session (2025) (g) Publicly owned water mains and sewers; (h) Public parks and playgrounds; (i) Public convention facilities which are financed at least in part with public money; and (j) All other publicly owned works and property. [20.] 22. “Specialty contractor” means a person who is licensed to conduct business as described in subsection 4 of NRS 624.215. [21.] 23. “Stand-alone underground utility project” means an underground utility project that is not integrated into a larger project, including, without limitation: (a) An underground sewer line or an underground pipeline for the conveyance of water, including facilities appurtenant thereto; and (b) A project for the construction or installation of a storm drain, including facilities appurtenant thereto,  that is not located at the site of a public work for the design and construction of which a public body is authorized to contract with a design-build team pursuant to subsection 2 of NRS 338.1711. [22.] 24. “Subcontract” means a written contract entered into between: (a) A contractor and a subcontractor or supplier; or (b) A subcontractor and another subcontractor or supplier,  for the provision of labor, materials, equipment or supplies for a construction project. [23.] 25. “Subcontractor” means a person who: (a) Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that the person is not required to be licensed pursuant to chapter 624 of NRS; and (b) Contracts with a contractor, another subcontractor or a supplier to provide labor, materials or services for a construction project. [24.] 26. “Supplier” means a person who provides materials, equipment or supplies for a construction project. [25.] 27. “Vertical construction” means any construction, alteration, repair, renovation, demolition or remodeling necessary to complete a public work for any building, structure or other impro [Text truncated for display. Full text available on LegiScan.]