SB158 - Revises provisions exempting certain work from the provisions governing the licensure and regulation of contractors. (BDR 54-960)

S.B. 158 - *SB158* SENATE BILL NO. 158–SENATOR FLORES PREFILED FEBRUARY 2, 2025 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions exempting certain work from the provisions governing the licensure and regulation of contractors. (BDR 54-960) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to contractors; revising provisions exempting certain work from the provisions governing the licensure and regulation of contractors; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law provides for the licensure and regulation of contractors. (Chapter 1 624 of NRS) Existing law also provides that the provisions of existing law 2 governing the licensure and regulation of contractors do not apply to any work to 3 repair or maintain property, the value of which is less than $1,000, including labor 4 and materials, unless certain circumstances exist. (NRS 624.031) This bill increases 5 that monetary threshold to $5,000 and excludes the value of materials from that 6 threshold. 7 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 624.031 is hereby amended to read as follows: 1 624.031 The provisions of this chapter do not apply to: 2 1. Work performed exclusively by an authorized representative 3 of the United States Government, the State of Nevada, or an 4 incorporated city, county, irrigation district, reclamation district, or 5 other municipal or political corporation or subdivision of this State. 6 2. Any entity that is recognized as exempt under section 7 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), 8 which: 9 – 2 – - *SB158* (a) Enters into a contract or other agreement with the State of 1 Nevada, or an incorporated city, county, irrigation district, 2 reclamation district, or other municipal or political corporation or 3 subdivision of this State, to facilitate the repair or maintenance of 4 properties, including, without limitation, weatherization and energy 5 efficiency services; 6 (b) Facilitates work to be performed on such a property by a 7 person licensed pursuant to this chapter; and 8 (c) Is a party with the owner of such a property and a person 9 licensed pursuant to this chapter to a contract or agreement for the 10 work on the property. 11 3. An officer of a court when acting within the scope of his or 12 her office. 13 4. Work performed exclusively by a public utility operating 14 pursuant to the regulations of the Public Utilities Commission of 15 Nevada on construction, maintenance and development work 16 incidental to its business. 17 5. An owner of property who is building or improving a 18 residential structure on the property for his or her own occupancy 19 and not intended for sale or lease. The sale or lease, or the offering 20 for sale or lease, of the newly built structure within 1 year after its 21 completion creates a rebuttable presumption for the purposes of this 22 section that the building of the structure was performed with the 23 intent to sell or lease that structure. An owner of property who 24 requests an exemption pursuant to this subsection must apply to the 25 Board for the exemption. The Board shall adopt regulations setting 26 forth the requirements for granting the exemption. 27 6. Any work to repair or maintain property the value of which 28 is less than [$1,000,] $5,000, including labor [and] but excluding 29 materials, unless: 30 (a) A building permit is required to perform the work; 31 (b) The work is of a type performed by a plumbing, electrical, 32 refrigeration, heating or air-conditioning contractor; 33 (c) The work is of a type performed by a contractor licensed in a 34 classification prescribed by the Board that significantly affects the 35 health, safety and welfare of members of the general public; 36 (d) The work is performed as a part of a larger project: 37 (1) The value of which is $500 or more; or 38 (2) For which contracts of less than $500 have been awarded 39 to evade the provisions of this chapter; or 40 (e) The work is performed by a person who is licensed pursuant 41 to this chapter or by an employee of that person. 42 7. The sale or installation of any finished product, material or 43 article of merchandise which is not fabricated into and does not 44 become a permanent fixed part of the structure. 45 – 3 – - *SB158* 8. The construction, alteration, improvement or repair of 1 personal property. 2 9. The construction, alteration, improvement or repair financed 3 in whole or in part by the Federal Government and conducted within 4 the limits and boundaries of a site or reservation, the title of which 5 rests in the Federal Government. 6 10. An owner of property, the primary use of which is as an 7 agricultural or farming enterprise, building or improving a structure 8 on the property for his or her use or occupancy and not intended for 9 sale or lease. 10 11. Construction oversight services provided to a long-term 11 recovery group by a qualified person within a particular geographic 12 area that is described in a proclamation of a state of emergency or 13 declaration of disaster by the State or Federal Government, 14 including, without limitation, pursuant to NRS 414.070. A long- 15 term recovery group may reimburse such reasonable expenses as the 16 qualified person incurs in providing construction oversight services 17 to that group. Except as otherwise provided in this subsection, 18 nothing in this subsection authorizes a person who is not a licensed 19 contractor to perform the acts described in paragraphs (a) and (b) of 20 subsection 1 of NRS 624.700. As used in this subsection: 21 (a) “Construction oversight services” means the coordination 22 and oversight of labor by volunteers. 23 (b) “Long-term recovery group” means a formal group of 24 volunteers coordinating response and recovery efforts related to a 25 state of emergency or disaster that is proclaimed or declared by the 26 State or Federal Government. 27 (c) “Qualified person” means a person who possesses the 28 abilities, education, experience, knowledge, skills and training that a 29 long-term recovery group has identified as being necessary to 30 provide construction oversight services for a project to be performed 31 by that group. 32 12. A person licensed as a real estate broker, real estate broker- 33 salesperson or real estate salesperson pursuant to chapter 645 of 34 NRS who, acting within the scope of the license or a permit to 35 engage in property management issued pursuant to NRS 645.6052, 36 assists a client in scheduling work to repair or maintain residential 37 property pursuant to a written brokerage agreement or a property 38 management agreement. Such assistance includes, without 39 limitation, assisting a client in the hiring of any number of licensed 40 contractors to perform the work. Nothing in this subsection 41 authorizes the performance of any work for which a license is 42 required pursuant to this chapter by a person who is not licensed 43 pursuant to this chapter or the payment of any additional 44 compensation to a person licensed as a real estate broker, real estate 45 – 4 – - *SB158* broker-salesperson or real estate salesperson for assisting a client in 1 scheduling the work. The provisions of this subsection apply only if 2 a building permit is not required to perform the work and if the 3 value of the work does not exceed $10,000 per residential property 4 during the fixed term of the written brokerage agreement, if the 5 assistance is provided pursuant to such an agreement, or during a 6 period not to exceed 6 months if the assistance is provided pursuant 7 to a property management agreement. As used in this subsection: 8 (a) “Brokerage agreement” has the meaning ascribed to it in 9 NRS 645.005. 10 (b) “Property management agreement” has the meaning ascribed 11 to it in NRS 645.0192. 12 (c) “Real estate broker” has the meaning ascribed to it in 13 NRS 645.030. 14 (d) “Real estate broker-salesperson” has the meaning ascribed to 15 it in NRS 645.035. 16 (e) “Real estate salesperson” has the meaning ascribed to it in 17 NRS 645.040. 18 (f) “Residential property” means: 19 (1) Improved real estate that consists of not more than four 20 residential units; or 21 (2) A single-family residential unit, including a 22 condominium, townhouse or home within a subdivision, if the unit 23 is sold, leased or otherwise conveyed unit by unit, regardless of 24 whether the unit is part of a larger building or parcel that consists of 25 more than four units. 26 H