AB222 - Revises provisions relating to public works. (BDR 28-675)

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 [Text truncated for display. Full text available on LegiScan.]