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AB 5

Relating to: requiring school boards to make textbooks, curricula, and instructional materials available for inspection by school district residents.

2025-2026 Regular Session Introduced by Scott Allen and 14 co-sponsors

Requires residential PV contractors to obtain mandatory performance and payment bonds equal to 100% of the contract, using Treasury-listed sureties, with license jeopardy for nonco

Failed to pass notwithstanding the objections of the Governor pursuant to Joint Rule 82
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Bill Summary · AB 5

AB 5 — Contractors for Residential Photovoltaic (PV) Systems (BDR 54-253)

Status: Introduced Dec. 2, 2024 — Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed (bill on inactive file as of 4/12/2025).

Purpose / Intent

To strengthen consumer and project protections for residential photovoltaic (PV) installations by making bonding requirements mandatory for contractors who perform work on residential PV systems and by increasing the size and standards for those bonds.

Key provisions

  • Amends NRS 624.270 (State Contractors’ Board bond requirements).
  • Requires (rather than allows) the State Contractors’ Board to require every contractor performing work on residential PV systems used to produce electricity to obtain both:
    • a performance bond, and
    • a payment bond, before commencing the work.
  • Increases the minimum bond amount: each required bond must equal not less than 100% of the contract amount (previous practice allowed lower or variable amounts; earlier proposals referenced 50% in some contexts).
  • Bond underwriting standards: bonds must be issued by a surety included on the U.S. Department of the Treasury’s Listing of Approved Sureties.
  • Enforcement continuity: failure to file or maintain required bonds remains cause for the Board to deny, revoke, suspend, or refuse to renew a contractor’s license.
  • Transitional rule: contractors whose licenses authorizing PV work were issued before July 1, 2025 are exempt from the new bond requirements until the license is renewed — unless during that interim they:
    1. are found by the Board to have committed specified violations,
    2. enter into a contract on/after July 1, 2025 that is later voided by the single‑family homeowner, or
    3. receive five valid complaints to the Board within any 15‑day period.
  • Other bond provisions in NRS 624.270 (e.g., bond amount caps, continuous form, financial rating requirements for sureties, procedures for cash deposits in lieu of bonds, and release timing) remain in the statute and apply as amended.

Who is affected

  • Primary: Contractors who install or perform work on residential PV systems in Nevada — they would face mandatory, larger bonds and higher surety standards.
  • Secondary: Homeowners/consumers (gain stronger financial remedies if contractors default), surety companies (obligations and underwriting), and the State Contractors’ Board (enforcement administration).
  • Fiscal note: Bill states no fiscal effect on state or local government.

Policy and potential impacts

  • Consumer protection: Larger, Treasury‑approved surety bonds increase potential recovery for nonperformance, warranty claims, or unpaid subcontractor/labor claims.
  • Industry effects: Higher bonding requirements and associated costs may increase barriers for small or newly established PV contractors, potentially affecting competition and pricing.
  • Administrative: Board enforcement duties continue; transitional carve‑outs soften immediate impact for existing licensees until renewal unless triggering misconduct.

Procedural / Timeline notes

  • Introduced Dec. 2, 2024; placed on inactive file and died there (Died on inactive file 2/3/2025). As of 4/12/2025, per Joint Standing Rule No. 14.3.1, no further action is allowed on this measure in the current session.

Compiled from official sources — confirm details with the bill’s official record.

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