Section 624.263 - Financial responsibility of applicant or licensee: Standards and criteria for determination1. The financial responsibility of a licensee or an applicant for a contractor's license must be established independently of and without reliance on any assets or guarantees of any owners or managing officers of the licensee or applicant or any person who qualifies on behalf of the licensee or applicant pursuant to subsection 2 of NRS 624.260, but the financial responsibility of the following persons may be inquired into and considered as a criterion in determining the financial responsibility of the licensee or applicant: (a) Any owner of the licensee or applicant;(b) Any managing officer of the licensee or applicant; or(c) Any person who qualifies on behalf of the licensee or applicant pursuant to subsection 2 of NRS 624.260.2. The financial responsibility of an applicant for a contractor's license or of a licensed contractor may be determined by using the following standards and criteria in connection with each applicant or contractor and each associate or partner thereof: (b) Amount of liquid assets.(c) Amount of current assets.(d) Amount of current liabilities.(e) Amount of working capital.(f) Ratio of current assets to current liabilities.(g) Fulfillment of bonding requirements pursuant to NRS 624.270.(h) Prior payment and credit records.(i) Previous business experience.(j) Prior and pending lawsuits.(k) Prior and pending liens.(m) Conviction of a felony or crime involving moral turpitude.(n) Prior suspension or revocation of a contractor's license in Nevada or elsewhere.(o) An adjudication of bankruptcy or any other proceeding under the federal bankruptcy laws, including: (1) A composition, arrangement or reorganization proceeding;(2) The appointment of a receiver of the property of the applicant or contractor or any officer, director, associate or partner thereof under the laws of this State or the United States; or(3) The making of an assignment for the benefit of creditors.(p) Form of business organization, corporate or otherwise.(q) Information obtained from confidential financial references and credit reports.(r) Reputation for honesty and integrity of the applicant or contractor or any officer, director, associate or partner thereof.3. A licensed contractor shall, as soon as it is reasonably practicable, notify the Board in writing upon the filing of a petition or application relating to the contractor that initiates any proceeding, appointment or assignment set forth in paragraph (o) of subsection 2. The written notice must be accompanied by: (a) A copy of the petition or application filed with the court; and(b) A copy of any order of the court which is relevant to the financial responsibility of the contractor, including any order appointing a trustee, receiver or assignee.4. Before issuing a license to an applicant who will engage in residential construction or renewing the license of a contractor who engages in residential construction, the Board may require the applicant or licensee to establish financial responsibility by submitting to the Board: (a) A financial statement that is: (1) Prepared by a certified public accountant; or(2) Submitted on a form or in a format prescribed by the Board together with an affidavit which verifies the accuracy of the financial statement; and(b) A statement setting forth the number of building permits issued to and construction projects completed by the licensee during the immediately preceding year and any other information required by the Board. The statement submitted pursuant to this paragraph must be provided on a form approved by the Board.5. In addition to the requirements set forth in subsection 4, the Board may require a licensee to establish financial responsibility at any time.6. An applicant for an initial contractor's license or a licensee applying for the renewal of a contractor's license has the burden of demonstrating financial responsibility to the Board, if the Board requests the applicant or licensee to do so.Added to NRS by 1967, 1594; A 1969, 939; 1993, 926; 1999, 2958; 2001, 2412; 2005, 1200; 2007, 859; 2015, 2006Amended by 2015, Ch. 359,§3, eff. 10/1/2015.Added to NRS by 1967, 1594; A 1969, 939; 1993, 926; 1999, 2958; 2001, 2412; 2005, 1200; 2007, 859