AB 502 — Summary (Chapter 331, 2025): Revisions to Public‑Works Compliance and Enforcement
Status and timeline
- Introduced: March 24, 2025 (Assembly Committee on Government Affairs)
- Passed Assembly: April 24, 2025 (75–0)
- Amended in Senate; Assembly concurred in Senate amendments May 31, 2025
- Enrolled: June 2, 2025; Approved by Governor: June 5, 2025; Chaptered: June 6, 2025
Purpose and intent
AB 502 revises Nevada’s public‑works statutes (Chapter 338 NRS and related provisions) to strengthen project reporting and enforcement, clarify apprenticeship request timing and reporting obligations, create a new enforcement unit within the Office of the Labor Commissioner, and modify penalties and debarment/disqualification processes for violations on public works projects.
Key provisions and changes
- Apprenticeship requests and reporting
- Increases the lead time for a contractor/subcontractor to request an apprentice from an apprenticeship program (final bill increases the prior 10‑day limit to 30 days in some versions; overall the bill relaxes the very short prior limitation and tightens reporting of identifying information).
- Removes the prior exception that allowed omission of identifying information about a public work from reports to the Labor Commissioner — such identifying information must now be reported.
Project identification and public‑body duties
- Requires a public body to request a public‑works identifying number at least 3 business days before publishing any advertisement or solicitation for the work.
- Authorizes monetary penalties for each calendar day a public body fails to comply with required reporting.
Investigations and new enforcement division
- Creates the Public Works Compliance Division within the Office of the Labor Commissioner.
- Requires a public body, within 90 days after substantial completion of a contract, to either: (1) investigate alleged violations and make a determination, or (2) refer the matter to the new Division.
- The Division will investigate referrals or at the Labor Commissioner’s direction, submit written reports to the Labor Commissioner, and perform other enforcement duties as directed.
Withholding and recovery of sums
- If a public body refers an investigation to the Division, it must withhold and retain sums believed forfeited until the Division completes its investigation and the Labor Commissioner determines violations.
- Prohibits public bodies from recovering fines or fees assessed against the public body (by, for example, withholding retention due to a contractor) to recoup those assessments.
Penalties, fees, and disqualification
- Authorizes the Labor Commissioner to impose on noncompliant public bodies: a fee of $1,000 and an administrative penalty of $2,000 for each contractor/subcontractor found in violation when the public body failed to timely investigate or refer.
- Revises disqualification/debarment durations when administrative penalties are imposed against a person: e.g., first offense up to 180 days; second offense up to 3 years (but not less than 180 days); third offense up to 5 years (but not less than 3 years); fourth/subsequent not less than 5 years. (Final text contains the specific ranges above.)
Who is affected
- Public bodies (state agencies, counties, cities, special districts) that award and administer public‑works contracts — new procedural and reporting duties and potential penalties.
- Contractors and subcontractors on public works — changes to apprenticeship request timing, reporting requirements, withholding rules, and potential debarment consequences for violations.
- Office of the Labor Commissioner — new Public Works Compliance Division, additional investigatory/enforcement workload and associated staffing/budget implications.
- Apprenticeship programs and workers — changes to how and when apprentices are requested and reported.
Fiscal and administrative impacts
- Fiscal notes indicate impacts to state and local government; the Office of the Labor Commissioner proposed additional staff and budget enhancements to stand up the new Compliance Division (staffing requests and implementation costs described in committee materials).
Practical effect
AB 502 centralizes and clarifies enforcement of public‑works rules in Nevada, shortens some procedural windows for public bodies to set up project numbers and report awards/completions, establishes a dedicated investigatory unit, raises penalties/fee authority for noncompliance by public bodies, and tightens reporting and apprenticeship request rules to improve oversight of prevailing‑wage and apprenticeship obligations.
