Nevada Revised Statutes 338.1423 – Prohibition against public body entering into express or implied contract for public work providing that construction materials or goods be purchased or supplied by public body or contractor who is constituent part …
1. Except as otherwise provided in this section, a public body shall not enter into an express or implied contract for a public work which provides that any construction materials or goods to be used on the public work will be purchased or otherwise supplied by:
Attorney's Note
Under the Nevada Revised Statutes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| gross misdemeanor | up to 364 days | up to $2,000 |
Terms Used In Nevada Revised Statutes 338.1423
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means a written contract entered into between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work. See Nevada Revised Statutes 338.010
- Contractor: means :
(a) A person who is licensed pursuant to the provisions of chapter 624 of NRS. See Nevada Revised Statutes 338.010
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
- Public body: means the State, county, city, town, school district or any public agency of this State or its political subdivisions sponsoring or financing a public work. See Nevada Revised Statutes 338.010
- Public work: means any project for the new construction, repair or reconstruction of a project financed in whole or in part from public money for:
(a) Public buildings;
(b) Jails and prisons;
(c) Public roads;
(d) Public highways;
(e) Public streets and alleys;
(f) Public utilities;
(g) Publicly owned water mains and sewers;
(h) Public parks and playgrounds;
(i) Public convention facilities which are financed at least in part with public money; and
(j) All other publicly owned works and property. See Nevada Revised Statutes 338.010
(a) The public body or a contractor who is a constituent part of the public body; or
(b) A contractor who is not a constituent part of the public body but is acting on behalf of the public body.
2. A public body may enter into an express or implied contract for a public work which provides that any construction materials or goods to be used in the public work will be purchased or supplied by the public body, a contractor who is a constituent part of the public body or a contractor who is not a constituent part of the public body but is acting on behalf of the public body if:
(a) The contract requires the payment of any state or local taxes that would otherwise have been due for the purchase and use of the construction materials or goods if the construction materials or goods had been purchased and used by a contractor who was not a constituent part of the public body and who was not otherwise exempt from the taxes pursuant to state or local law; and
(b) The public body sends an itemized list of the construction materials or goods to be purchased or otherwise provided by the public body or a contractor who is a constituent part of the public body, to the Department of Taxation. The itemized list must include the amount paid for each item.
3. An express or implied contract entered into in violation of subsection 1 is void.
4. A person who enters into an express or implied contract that violates the provisions of subsection 1 is guilty of a gross misdemeanor.
5. The right to enforce the provisions of this section vests exclusively in the Attorney General, who shall institute and prosecute the appropriate proceedings to enforce the provisions of this section.
6. If an express or implied contract for a public work is entered into in violation of subsection 1, the Attorney General shall forward to the Department of Taxation a list of construction materials or goods purchased in violation of this section by the public body or the contractor who is a constituent part of the public body. The Department shall calculate the applicable state and local taxes on the purchase and use of the construction materials or goods which would have been due but for the tax exemption of the public body or the contractor who is a constituent part of the public body, and shall deduct from the money otherwise payable from the proceeds of any tax distribution to the public body twice the amount of the applicable taxes.
7. The provisions of this section do not apply to an express or implied contract for a public work for which the construction materials or goods purchased by the public body are:
(a) Devices, equipment or hardware purchased in compliance with chapter 332 or 333 of NRS which are needed on a recurring basis and used to protect the health, safety or welfare of the public, including, without limitation, official traffic control devices; or
(b) Specialized components purchased in compliance with chapter 332 or 333 of NRS which are specific to a particular project and are not commonly used in public works projects. If a public body enters into such a contract, the public body must provide annually to the Department of Taxation an itemized list of the construction materials or goods purchased pursuant to the contract and the amount paid for each item.
8. If a public body is going to perform the public work itself in accordance with NRS 338.13864, the public body is not required to:
(a) Pay any state or local taxes for the purchase and use of construction materials or goods.
(b) Send to the Department of Taxation an itemized list of construction materials or goods to be purchased by the public body for the public work.
9. As used in this section, ‘construction materials or goods’ means all materials, equipment or supplies which are intended to be used in a public work.