NRS 624.276
Bond and deposit: Additional requirements for contractors performing work concerning residential pools or spas.
1.
Before granting an original contractor’s license to, or renewing the contractor’s license of, an applicant who performs or will perform work concerning residential pools or spas, the Board shall, in addition to any other conditions for the issuance or renewal of a license, require the applicant to:(a)
File with the Board a bond solely for the protection of consumers in an amount fixed by the Board; or(b)
In lieu of filing a bond, establish with the Board a cash deposit as provided in this section.2.
A bond required pursuant to subsection 1 is in addition to, may not be combined with and does not replace any other bond required pursuant to the provisions of this chapter. A contractor required to file a bond pursuant to subsection 1 shall maintain the bond for 5 years or for such longer period as the Board may require.3.
After a contractor who performs work concerning a residential pool or spa has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the Board may relieve the contractor of the requirements of subsection 1 if evidence supporting such relief is presented to the Board. The Board may at any time thereafter require the contractor to comply with subsection 1 if evidence is presented to the Board supporting this requirement.4.
If a licensee is relieved of the requirement of establishing a cash deposit pursuant to this section, the deposit may be withdrawn 2 years after such relief is granted, if there is no outstanding claim against it.5.
Failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit constitutes cause for the Board to deny, revoke, suspend or refuse to renew a license.6.
The amount of each bond or cash deposit required by this section must be fixed by the Board with reference to the contractor’s financial and professional responsibility and the magnitude of the contractor’s operations, but must be not less than $10,000 or more than $400,000. The bond must be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force.7.
A bond required pursuant to subsection 1 must be provided by a person whose long-term debt obligations are rated “A” or better by a nationally recognized rating agency. The Board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the Board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.2545 or 624.291.8.
Unless released earlier pursuant to subsection 3, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established or 2 years after completion of all work authorized by the Board after termination of the license, whichever occurs later, if there is no outstanding claim against it.9.
Each bond or deposit required pursuant to this section must be in favor of the State of Nevada solely for the benefit of any consumer who entered into a contract with the contractor to perform work concerning a residential pool or spa and:(a)
Is damaged by failure of the contractor to perform the contract or to remove liens filed against the property; or(b)
Is injured by any unlawful act or omission of the contractor in the performance of a contract.10.
Any consumer claiming against the bond or deposit may bring an action in a court of competent jurisdiction on the bond or against the Board on the deposit for the amount of damage the consumer has suffered to the extent covered by the bond or deposit.11.
If an action is commenced on the bond, the surety that executed the bond shall notify the Board of the action within 30 days after the date that:(a)
The surety is served with a complaint and summons; or(b)
The action is commenced,12.
A claim or action pursuant to this section must proceed and be administered in the manner provided pursuant to NRS 624.273 for a claim or action.13.
The Board shall adopt regulations necessary to carry out the provisions of this section, including, without limitation, regulations concerning:(a)
The determination of the amount of a bond pursuant to this section;(b)
The form of bond required pursuant to this section;(c)
The time within which an applicant or licensee must comply with the provisions of this section; and(d)
Procedures to contest the amount of a bond required pursuant to this section.14.
The Board shall immediately suspend the license of a contractor who fails to post the bond or provide the deposit required pursuant to this section. Failure by a licensee for 6 months to post the bond or provide the deposit required pursuant to this section constitutes grounds for disciplinary action.15.
As used in this section:(a)
“Consumer” means a natural person who:(1)
Owns a single-family residence; and(2)
Enters into a contract with a licensee to perform work concerning a residential pool or spa.(b)
“Work concerning a residential pool or spa” has the meaning ascribed to it in NRS 624.915.
Source:
Section 624.276 — Bond and deposit: Additional requirements for contractors performing work concerning residential pools or spas., https://www.leg.state.nv.us/NRS/NRS-624.html#NRS624Sec276.