Revises provisions relating to highways. (BDR 35-302)

S.B. 77

- *SB77*

SENATE BILL NO. 77–COMMITTEE ON
GROWTH AND INFRASTRUCTURE

(ON BEHALF OF THE DEPARTMENT OF TRANSPORTATION)

PREFILED NOVEMBER 20, 2024
____________

Referred to Committee on Growth and Infrastructure

SUMMARY—Revises provisions relating to highways.
(BDR 35-302)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to transportation; revising the required
qualifications of a Deputy Director of the Department of
Transportation; revising the highway projects for which
the Department is required to prepare a written cost -
benefit analysis; revising provisions governing the award
of contracts by the Department; increasing the maximum
cost of a project for which the Department may use
informal bidding procedures; revising provisions relating
to advertisement and s ubmission of bids for work;
increasing the amount that the Department may spend to
purchase equipment without approval from the Board of
Directors of the Department; revising requirements for the
provision of certain notices by the Department ; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law c reates the Department of Transportation, which is administered 1
by a seven -member Board of Directors and has various powers and duties relating 2
to the construction, improvement and maintenance of the highways in this State. 3
(Chapter 408 of NRS) Under existi ng law, the Department consists of a Director, 4
three Deputy Directors, a Chief Engineer and certain Divisions, which are headed 5
by assistant directors. (NRS 408.111) Section 1 of this bill revises the education 6
and experience required for appointment as a Deputy Director. 7
Existing law requires the Department to prepare a written analysis of the costs 8
and benefits of certain highway projects expected to cost at least $25 million before 9

– 2 –

- *SB77*
the Department submits a proposal for the project to the Board of Directors. (NRS 10
408.3195) Section 2 of this bill increases the minimum expected cost of a project 11
from $25 million to $50 million for which the Department is required to prepare a 12
cost-benefit analysis. 13
Existing law, with certain exceptions, requires the Director of the Department 14
to use a process of competitive bidding to contract for work to construct, 15
reconstruct, improve or maintain highways. (NRS 408.323, 408.327, 408.367, 16
408.3875-408.3888) Under existing law, the Director is authorized , with the 17
approval of the Board, to execute certain work or improvements with facilities and 18
employees of the Department rather than through competitive bidding . (NRS 19
408.323) Section 3 of this bill eliminates the requirement for the Director to obtain 20
the approval of the Board when the Director is authorized by existing law to 21
execute work or improvements with facilities and employees of the Department 22
rather than through competitive bidding. Section 3: (1) further eliminates the 23
requirement for the Director to obtain the approval of the Board to hire, employ or 24
contract for labor, materials or equipment without the use of competitive bidding in 25
a disaster or great emergency; and (2) instead, requires the Director to report each 26
such hiring, employment or contract to the Board at its next regularly scheduled 27
meeting. 28
Existing law authorizes the Direct or to use an informal bidding process to 29
award contracts for highway construction, reconstruction, improvements or 30
maintenance if the project is estimated to cost $250,000 or less and the Director 31
obtains the approval of the Board to use such an informal b idding process. (NRS 32
408.367) Sections 4 and 8 of this bill increase the maximum cost of a project for 33
which the Director may use an informal bidding process from $250,000 to 34
$750,000. Section 8 also eliminates the requirement for the Director to obtain the 35
approval of the Board to use an informal bidding process. Finally, section 8 36
increases the cost of a project for which the Director may solicit a bid from only 37
one properly licensed contractor from $50,000 or less to less than $100,000. 38
Under existing law, when the Director is required to use a competitive bidding 39
process to contract for work to constru ct, reconstruct, improve or maintain 40
highways, the Director is required to advertise for bids for such work by satisfying 41
certain requirements for publishing the advertisement in newspapers. (NRS 42
408.327) Section 4 removes requirements for publishing an advertisement for bids 43
in certain newspapers and, instead, section 4 requires the Department to post an 44
advertisement for bids on the Internet website of the Department for a certain 45
period. Section 11 of this bill similarly removes the requirement for the Department 46
to advertise in certain newspapers for preliminary proposals for the design and 47
construction of a project when the Department uses a design -build team to design 48
and construct a project and, instead, r equires the Department to post such an 49
advertisement for preliminary proposals on its Internet website for a certain period. 50
Under existing law, before the Director may furnish plans and specifications for 51
an advertised work to a person proposing to bid f or the work, the person is required 52
to become qualified to bid by establishing to the satisfaction of the Director that the 53
person has the financial ability and experience to perform the work. (NRS 408.333) 54
Instead of requiring a person proposing to bid fo r work to become qualified to bid 55
before the Director furnishes plans and specification s for the work to that person, 56
section 5 of this bill requires the person to become qualified by the Director before 57
submitting a bid. Section 8 similarly requires that when the Director is using the 58
informal bidding procedure to award a contract, a person wishing to bid is required 59
to submit certain information to the Director before submitting a bid rather than 60
before the Director furnishes the person with plans and specifications for the work. 61
Section 6 of this bill updates statutory language to clarify that a person 62
submitting a bid for work to construct, reconstruct, improve or maintain a highway 63
may be a business entity. 64

– 3 –

- *SB77*
Section 7 of this bill removes the authority of an authorized representative of a 65
bidder to execute a document to withdraw a bid and, instead, requires the bidder to 66
execute such a withdrawal. 67
Existing law requires the successful bidder for a contract for work to construct, 68
reconstruct, improve or maintain a highway to furnish one or more surety bonds to 69
secure: (1) faithful perfor mance of the contract; and (2) payment of workers and 70
suppliers used for the performance of the contract. (NRS 408.357) Under existing 71
law, any such worker or supplier who has not been paid by a contractor or 72
subcontractor and who wishes to recover from th e surety bond is required to file a 73
claim with the Department within 30 days from the date of final acceptance of the 74
contract. (NRS 408.363) To provide notice of the final acceptance of the contract, 75
the Department is required to publish a notice of the final acceptance of the contract 76
in certain newspapers. (NRS 408.387) Section 9 of this bill removes the 77
requirement to publish this notice in certain newspa pers and, instead, requires the 78
Department to post notice of the date of final acceptance of a contract on 79
the Internet website of the Department. 80
Existing law requires the Department to obtain the approval of the Board before 81
purchasing any equipment whi ch exceeds $50,000. (NRS 408.389) Section 12 of 82
this bill increases the purchase price of equipment which requires approval of the 83
Board from $50,000 to $150,000. 84
Under existing law, any legal notice or advertisement required by law to be 85
published in a newspaper is a legal notice or advertisement and must be published 86
in a newspaper that satisfies certain requirements. (NRS 238.010 -238.080) Section 87
10 of this bill clarifies that the notice of a public meeting at which the Board makes 88
the determinations that are necessary to authorize the Department to contract with a 89
design-build team for the design and construction of a project is a legal notice that 90
must be published in a newspaper that satisfies the requirements of existing law. 91
(NRS 408.3881) Sections 13 and 14 of this bill clarify that notices of certain 92
dispositions of property of the Department are legal notices that must be published 93
in a newspa per that satisfies the requirements of existing law. (NRS 408.507, 94
408.533) Section 15 of this bill clarifies that notice of a public hearing required 95
upon an application to close a public road on public land is a legal notice that must 96
be published in a newspaper that satisfies the requirements of existing law. 97
(NRS 408.537) 98

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 408.178 is hereby amended to read as follows: 1
408.178 1. Each Deputy Director: 2
(a) Is in the unclassified service of the State. 3
(b) Must [hold] : 4
(1) Hold a [master’s] bachelor’s degree in business, public 5
or business administration, [hold the] economics or any other field 6
related to a field described in this subparagraph; 7
(2) Hold a degree of bachelor of science in civil, structural, 8
mechanical , environmental, traffic or industrial engineering ; [,] or 9
[be] 10
(3) Be a licensed professional engineer. 11
(c) Must have at least: 12

– 4 –

- *SB77*
(1) Two years of administrative experience as an assistant 1
director or the Chief Engineer; or 2
(2) Fifteen years of progressively responsible experience in 3
engineering , [or] project management [.] or a related field. 4
2. The Chief Engineer: 5
(a) Is in the unclassified service of the State. 6
(b) Must be a licensed professional engineer. 7
(c) Except as otherwise provided in subsection 3, must have at 8
least 3 years of experience as the final engineering authority for a 9
state’s agency which has duties similar to those of the Department. 10
3. If the Director or the Deputy Director appointed pursuant to 11
paragraph (a) of subsection 1 of NRS 408.175 is a licensed 12
professional engineer, he or she may also act as the Department’s 13
Chief Engineer. 14
Sec. 2. NRS 408.3195 is hereby amended to read as follows: 15
408.3195 1. Before the Department submits a proposal for a 16
highway project to the Board f or approval, the Department shall 17
prepare a written analysis of the costs and benefits of the project. 18
The analysis must state, for each highway district in which the 19
project is proposed: 20
(a) The limits of the project; 21
(b) The period of analysis; 22
(c) The discount rate used in the analysis; 23
(d) The initial costs of the Department for the project, including 24
any costs for design, engineering, the acquisition of land and 25
construction; 26
(e) The future costs of the Department to preserve and maintain 27
the project, discounted to present value; 28
(f) Any other costs of the Department for any other construction 29
or any mitigation associated with the project; 30
(g) The costs to highway users for any loss of safety, delays in 31
the time of travel and costs for the op eration of vehicles that are 32
associated with the project; 33
(h) The costs of any environmental impacts, including vehicle 34
emissions and noise, that are associated with the project; and 35
(i) The value of the benefits of the project, including the value of 36
any: 37
(1) Savings in the time of travel; 38
(2) Improvements to safety; and 39
(3) Savings in the cost of operating vehicles. 40
2. The analysis required by this section: 41
(a) Must include a discussion of any additional increases in costs 42
that would result from any delays in the performance of any routine 43
maintenance scheduled under the maintenance program of the 44
Department; 45

– 5 –

- *SB77*
(b) May include a discussion of: 1
(1) The costs of the project for any other persons and 2
governmental agencies; 3
(2) The value of any other social, economic or environmental 4
benefits or costs of the project; and 5
(3) Any costs or benefits which may result from the use of 6
any alternative design, construction or financing practices; and 7
(c) Must be prepared in a format that allows for the comparison 8
of proposed highway projects. 9
3. The analysis required by this section must be made available 10
to the Board and the public when the agenda is posted for the 11
meeting at which the proposal will be submitted to the Board for its 12
approval. 13
4. As used in this section, “highway project” means a project 14
that is expected to increase the capacity of the state highway system 15
and cost at least [$25 million.] $50,000,000. 16
Sec. 3. NRS 408.323 is hereby amended to read as follows: 17
408.323 1. Whenever it can be justified by the Director that 18
limited work or improvements can be done in a more economical or 19
other satisfactory manner than by contract under NRS 408.327, the 20
Director may [, with the approval of the Board, ] execute such work 21
or improvements with Department facilities and employees. 22
2. In the event of disaster or great emergency the Director may 23
[, with the approval of the Board, ] hire, employ or contract for such 24
labor, materials and equipment as are in th e Director’s opinion 25
necessary to reroute, repair or replace any highway threatened or 26
damaged by the emergency or disaster, and the provisions of NRS 27
408.327 and 408.367 do not apply. The Director shall report each 28
such hiring, employment and contract to the Board at the next 29
regularly scheduled meeting of the Board. 30
Sec. 4. NRS 408.327 is hereby amended to read as follows: 31
408.327 Except as otherwise provided in NRS 408.3875 to 32
408.3888, inclusive: 33
1. Whenever the provisions of NRS 408.323 do not apply, the 34
Director shall advertise for bids for such work on projects estimated 35
to cost in excess of $750,000 according to the plans and 36
specifications prepared by the Director. The Department shall post 37
such an advertisement for bids on the Internet website of the 38
Department for a period beginning at the time the solicitation is 39
released until the time set for opening bids, which must not be less 40
than 15 days after the release of the solicitation. 41
2. The adv ertisement must state the place where the bidders 42
may obtain or inspect the plans and specifications and the time and 43
place for opening the plans and specifications. 44

– 6 –

- *SB77*
[3. Publication of the advertisement must be made at least once 1
a week for 2 consecutive weeks for a total of at least two 2
publications in a newspaper of general circulation in the county in 3
which the major portion of the proposed improvement or 4
construction is to be made, and the advertisement must also be 5
published at least once a week for 2 consecutive weeks for a total of 6
at least two publications in one or more daily papers of general 7
circulation throughout the State. The first publication of the 8
advertisement in the daily newspapers having general circulation 9
throughout the State must be made not less than 15 days before the 10
time set for opening bids.] 11
Sec. 5. NRS 408.333 is hereby amended to read as follows: 12
408.333 Except as otherwise provided in NRS 408.367 or 13
408.3875 to 408.3888, inclusive: 14
1. Before [furnishing] any person [proposing to ] may bid on 15
any advertised [work with the plans and specifications for such ] 16
work, the Director shall require from the person a statement, 17
verified under oath, in the form of answers to questions contained in 18
a standard form of questionnaire and financial statement, which 19
must include a complete statement of the person’s financial ability 20
and experience in performing public work and any other comparable 21
experience. 22
2. Such statements must be filed with the Dire ctor in ample 23
time to permit the Department to verify the information contained 24
therein in advance of [furnishing proposal forms, plans and 25
specifications to ] any person [proposing to bid ] bidding on the 26
advertised public work, in accordance with the regulations of the 27
Department. 28
3. Whenever the Director is not satisfied with the sufficiency 29
of the answers contained in the questionnaire and financial 30
statement, the Director may [refuse to furnish] disqualify the person 31
[with plans and specifications and the official proposal forms ] from 32
bidding on the advertised project. If the Director determines that the 33
person has, within the preceding year, materially breached a contract 34
for a public work for which the cost exceeds $25,000,000, the 35
Director shall [refuse to furnish ] disqualify the person [with plans 36
and specifications and the official proposal forms ] from bidding on 37
the advertised project. [Any bid of any person to whom plans and 38
specifications and the official proposal forms have not been issued 39
in accordance with this section must be disregarded, and the 40
certified check, cash or undertaking of such a bidder returned 41
forthwith.] 42
4. Any person who is disqualified by the Director, in 43
accordance with the provisions of this section, may request, in 44
writing, a hearing before the Director and present again the person’s 45

– 7 –

- *SB77*
check, cash or undertaking and such further evidence with respect to 1
the person’s financial responsibility, organization, plant and 2
equipment, or experience, as might tend to justify, in his or her 3
opinion, [issuance to him or her of the plans and specifications ] 4
authorizing the person to bid for the work. 5
5. Such a person may appeal the decision of the Director to the 6
Board no later than 5 days before the opening of the bids on the 7
project. If the appeal is sustained by the Board, the person must be 8
granted the rights and privileges of all other bidders. 9
Sec. 6. NRS 408.337 is hereby amended to read as follows: 10
408.337 Except as otherwise provided in NRS 408.3875 to 11
408.3888, inclusive: 12
1. All bids must be accompanied by an undertaking executed 13
by a corporate surety authorized to do busin ess in the State, or by 14
cash or a certified check in an amount equal to at least 5 percent of 15
the amount bid. Such undertaking, cash or check furnished to 16
accompany a bid submitted on -line pursuant to NRS 408.343 must 17
be furnished in accordance with the pr ocedures set forth by the 18
Director. 19
2. If the successful bidder fails to execute the contract in 20
accordance with [his or her ] the successful bid and give any bond 21
required by law and the contract and bond are not postmarked or 22
delivered to the Department within 20 days after award of the 23
contract, the undertaking, cash or certified check is forfeited and the 24
proceeds must be paid into the State Highway Fund. 25
3. The failure of the successful bidder to furnish any bond 26
required of the bidder by law within the time fixed for [his or her ] 27
the bidder’s execution of the contract constitutes a failure to execute 28
the contract. 29
4. If the Director deems it is for the bes t interests of the State, 30
the Director may, on refusal or failure of the successful bidder to 31
execute the contract, award it to the second lowest responsible 32
bidder. If the second lowest responsible bidder fails or refuses to 33
execute the contract, the Dire ctor may likewise award it to the third 34
lowest responsible bidder. On the failure or refusal to execute the 35
contract of the second or third lowest bidder to whom a contract is 36
so awarded, their bidder’s security is likewise forfeited to the State. 37
5. The bidder’s security of the second and third lowest 38
responsible bidders may be withheld by the Department until the 39
contract has been finally executed and the bond given as required 40
under the provisions of the contract, at which time the security must 41
be ret urned. The bidder’s security submitted by all other 42
unsuccessful bidders must be returned to them within 10 days after 43
the contract is awarded. 44

– 8 –

- *SB77*
Sec. 7. NRS 408.343 is hereby amended to read as follows: 1
408.343 1. Except as otherwise provided in NRS 408.3875 to 2
408.3888, inclusive: 3
(a) All bids must be submitted: 4
(1) Under sealed cover and received at the address in Nevada 5
stated in the advertisement for bids and must be opened publicly and 6
read at the time stated in the advertisement; or 7
(2) Pursuant to the process of on -line bidding established by 8
the Director. 9
(b) No bids may be received after the time stated in the 10
advertisement even though bids are not opened exactly at the time 11
stated in the advertisement. No bid, whether submitted in 12
accordance with subparagraph (1) or (2) of paragraph (a), may be 13
opened before that time. 14
(c) Any bid may be withdrawn [by request] at any time before 15
the time stated in the advertisement. The withdrawal must be [filed 16
with the Director and] executed by the authorized bidder . [or the 17
bidder’s duly authorized representative. The withdrawal may be 18
filed electronically.] The withdrawal of a bid does not prejudice the 19
right of the bidder to file a new bid before the time stated in t he 20
advertisement. 21
(d) The Department may reject any bid or all bids if, in the 22
opinion of the Department, the bids are unbalanced, incomplete, 23
contain irregularities of any kind or for any good cause. 24
(e) Until the final award of the contract, the Depart ment may 25
reject or accept any bids and may waive technical errors contained 26
in the bids, as may be deemed best for the interests of the State. 27
(f) In awarding a contract, the Department shall make the award 28
to the lowest responsible bidder who has qualified and submitted his 29
or her bid in accordance with the provisions of this chapter. 30
2. The Director may adopt regulations to carry out the 31
provisions of this section. 32
3. As used in this section, “on-line bidding” means a process: 33
(a) That is established by the Director; and 34
(b) By which bidders submit proposals or bids for contracts on a 35
secure website on the Internet or its successor, if any, which is 36
established and maintained by the Department for that purpose. 37
Sec. 8. NRS 408.367 is hereby amended to read as follows: 38
408.367 1. [With the approval of the Board, the ] The 39
Director may receive informal bids and award contracts for highway 40
construction, reconstruction, improvements, and maintenance on 41
projects estimated to cost not in excess of [$250,000.] $750,000. 42
2. Before [furnishing] any person [proposing to ] may bid o n 43
any solicited [work with the plans and specifications for such] work, 44
the Director shall require from the person a statement, verified under 45

– 9 –

- *SB77*
oath, in the form of answers to questions contained in a standard 1
form of questionnaire, which must include information describing: 2
(a) The geographical regions of this State in which the person is 3
willing to perform the public work; 4
(b) The type of license and classification, if any, held by the 5
person; and 6
(c) The state business license held by the person and it s 7
expiration date. 8
3. Before awarding a contract pursuant to subsection 1, the 9
Director must: 10
(a) If the estimated cost of the project is [$50,000 or ] less [,] 11
than $100,000, solicit a bid from at least one properly licensed 12
contractor; and 13
(b) If the estimated cost of the project is $100,000 or more [than 14
$50,000] but not more than [$250,000,] $750,000, solicit bids from 15
at least three properly licensed contractors. 16
4. Any bids received in response to a solicitation for bids made 17
pursuant to s ubsection 3 may be rejected if the Director determines 18
that: 19
(a) The quality of the services, materials, equipment or labor 20
offered does not conform to the approved plan or specifications; 21
(b) The bidder is not responsive or responsible; or 22
(c) The public interest would be served by such a rejection. 23
5. At least once each quarter, the Director shall prepare a report 24
detailing, for each project for which a contract for its completion is 25
awarded pursuant to paragraph (b) of subsection 3, if any: 26
(a) The name of the contractor to whom the contract was 27
awarded; 28
(b) The amount of the contract awarded; 29
(c) A brief description of the project; and 30
(d) The names of all contractors from whom bids were solicited. 31
6. A report prepared pursuant to subsection 5 is a public record 32
and must be maintained on file at the principal offices of the 33
Department. 34
7. Except as otherwise provided in NRS 408.354, contracts 35
awarded pursuant to the provisions of this section must be 36
accompanied by bonds and conditioned and executed in the name of 37
the State of Nevada, and must be signed by the Director under the 38
seal of the Department, and by the contracting party or parties. The 39
form and legality of those contracts must be approved by the 40
Attorney General or Chief Counsel of the Department. 41
Sec. 9. NRS 408.387 is hereby amended to read as follows: 42
408.387 1. Before making final payment on any contract as 43
provided in this chapter the Director shall cause the [publication] 44
posting of a notice of the date of final acceptance of the contract for 45

– 10 –

- *SB77*
a period of at least 2 weeks [in every issue of a newspaper of 1
general circulation in the county wherein the major portion of the 2
contract work was performed, and such notice may also be 3
published each day for a period of at least 10 days in one or more 4
daily newspapers of general circulation throughout the State.] on the 5
Internet website of the Department. 6
2. No final settlement of the contract may be made with the 7
contractor until 30 days after the date of such final acceptance of the 8
contract. 9
Sec. 10. NRS 408.3881 is hereby amended to read as follows: 10
408.3881 1. The Department shall not contract with a design-11
build team with respect to a project unless the Board makes the 12
determinations, at a public meeting, that are required pursuant to 13
NRS 408.388. 14
2. If the Department is required to hold a public meeting 15
pursuant to this section, the Department shall publish notice of the 16
meeting in a newspaper qualified under chapter 238 of NRS that is 17
of general circulation in this state. 18
Sec. 11. NRS 408.3883 is hereby amended to read as follows: 19
408.3883 1. The Department shall advertise for preliminary 20
proposals for the design and construction of a project by a design -21
build team [in a newspaper of general circulation in this State. ] by 22
posting a request for preliminary proposals on the Internet website 23
of the Department. 24
2. A request for preliminary proposals [published] posted 25
pursuant to subsection 1 must include, without limitation: 26
(a) A description of the proposed project; 27
(b) Separate estimates of the costs of designing and constructing 28
the project; 29
(c) The dates on which it is anticipated that the separate phases 30
of the design and construction of the project will begin and end; 31
(d) The date by which preliminary proposals must be submitted 32
to the Department, which must not be less than 30 days after the 33
date that the request for preliminary proposals is first [published in a 34
newspaper] posted pursuant to subsection 1; and 35
(e) A statement setting forth the place and time i n which a 36
design-build team desiring to submit a proposal for the project may 37
obtain the information necessary to submit a proposal, including, 38
without limitation, the information set forth in subsection 3. 39
3. The Department shall maintain at the time an d place set 40
forth in the request for preliminary proposals the following 41
information for inspection by a design-build team desiring to submit 42
a proposal for the project: 43
(a) The extent to which designs must be completed for both 44
preliminary and final prop osals and any other requirements for the 45

– 11 –

- *SB77*
design and construction of the project that the Department 1
determines to be necessary; 2
(b) A list of the requirements set forth in NRS 408.3884; 3
(c) A list of the factors that the Department will use to evaluate 4
design-build teams who submit a proposal for the project, including, 5
without limitation: 6
(1) The relative weight to be assigned to each factor pursuant 7
to NRS 408.3886; and 8
(2) A disclosure of whether the factors that are not related to 9
cost are, when c onsidered as a group, more or less important in the 10
process of evaluation than the factor of cost; 11
(d) Notice that a design-build team desiring to submit a proposal 12
for the project must include with its proposal the information used 13
by the Department to d etermine finalists among the design -build 14
teams submitting proposals pursuant to subsection 2 of NRS 15
408.3885 and a description of that information; 16
(e) A statement that a design-build team whose prime contractor 17
holds a certificate of eligibility to receive a preference in bidding on 18
public works issued pursuant to NRS 338.1389 or 338.147 and 19
whose members who hold a certificate of registration to practice 20
architecture or a license as a professional engineer and who hold a 21
certificate of eligibility to re ceive a preference when competing for 22
public works issued pursuant to NRS 338.173 should submit with its 23
proposal a copy of each certificate of eligibility and a signed 24
affidavit that meets the requirements of subsection 1 of NRS 25
338.0117; and 26
(f) A statement as to whether a design-build team that is selected 27
as a finalist pursuant to NRS 408.3885 but is not awarded the 28
design-build contract pursuant to NRS 408.3886 will be partially 29
reimbursed for the cost of preparing a final proposal or best and 30
final o ffer, or both, and, if so, an estimate of the amount of the 31
partial reimbursement. 32
Sec. 12. NRS 408.389 is hereby amended to read as follows: 33
408.389 1. Except as otherwise provided in subsection 2, the 34
Department shall not purchase any equipment which exceeds 35
[$50,000,] $150,000, unless the purchase is first approved by the 36
Board. 37
2. Before the Board may approve the purchase of any mobile 38
equipment whic h exceeds [$50,000,] $150,000, the Department 39
shall: 40
(a) Prepare and present to the Board an analysis of the costs and 41
benefits, including, without limitation, all related personnel costs, 42
that are associated with: 43
(1) Purchasing, operating and maintaining the same item of 44
equipment; 45

– 12 –

- *SB77*
(2) Leasing, operating and maintaining the same item of 1
mobile equipment; or 2
(3) Contracting for the performance of the work which would 3
have been performed using the mobile equipment; and 4
(b) Justify the need for the purchase based on that analysis. 5
3. The Board shall not: 6
(a) Delegate to the Director its authority to approve purchases of 7
equipment pursuant to subsection 1; or 8
(b) Approve any purchase of mobile equipment which exceeds 9
[$50,000] $150,000 and for which the Department is unable to 10
provide justification pursuant to subsection 2. 11
Sec. 13. NRS 408.507 is hereby amended to read as follows: 12
408.507 1. Except as otherwise provided in subsection 2, real 13
property held in fee or improvements on the property acquired by 14
the Department in advance of the actual construction, reconstruction 15
or improvement of highways or in order to avoid the payment of 16
excessive damages, or held by the Department pending a 17
determination in the future on its use or disposal may be leased or 18
rented by the Department for fair market value in such manner and 19
for such periods as are determined by the Director to be in the best 20
interests of the State. 21
2. The Director may lease to a local government for $1 per year 22
real property held in fee by the Department that has been acquired 23
by the Department in advance of the actual construction, 24
reconstruction or improvement of highways or hel d by the 25
Department pending a determination in the future on its use or 26
disposal if: 27
(a) Such real property will be used by the local government for a 28
community garden or urban farm; 29
(b) The local government attests in writing that the local 30
government will prioritize community gardens and urban farms that: 31
(1) Hire at least a portion of the employees from residents of 32
the local community; 33
(2) Provide training for members of the local community to 34
participate in gardening or farming; 35
(3) Allow members of the local community to provide input 36
on the foods grown in the community garden or urban farm; and 37
(4) Collaborate with school garden programs in the 38
surrounding community and encourage students from those school 39
garden programs to participate in the community garden or urban 40
farm; and 41
(c) Such real property will use sources of renewable energy, 42
including, without limitation, solar energy, to operate the 43
community garden or urban farm. 44

– 13 –

- *SB77*
3. The Director may lease for fair market value space abov e 1
and below the established grade line of the highway to state and 2
public agencies and private persons in such manner and for such 3
periods as the Director determines are in the best interest of the 4
State, if: 5
(a) The full use and safety of the highway will not be impaired; 6
(b) Vehicular or pedestrian access to that space will not be 7
required or permitted from the established grade line; and 8
(c) The free flow of traffic on the highway is not interfered with 9
in any way. 10
4. All leases of an interest in re al property entered into by the 11
Department before April 1, 1985, are hereby ratified. All other 12
leases entered into pursuant to subsection 3 must be approved by the 13
Board subject to the provisions of subsection 5. 14
5. If the Department receives a proposal to negotiate a lease 15
pursuant to subsection 3, it shall publish [a notice] for not less than 16
2 weeks in a newspaper [of general circulation at least once a week 17
for 2 weeks,] qualified under chapter 238 of NRS that is published 18
in the county in which the property to be leased is located, a notice 19
stating that it has received the proposal and that it will receive other 20
proposals for use of the space for 60 days after the completion of the 21
publication. A copy of the notice must be mailed to each local 22
governmental unit in the affected area. If the property is leased, it 23
must be to the highest bidder for the space. The requirements for 24
publication and notice do not apply if the proposal was received 25
from an owner who controls the property on both sides of the 26
highway. 27
6. All money received for leases and rentals must be deposited 28
with the State Treasurer to be credited to the State Highway Fund. 29
Sec. 14. NRS 408.533 is hereby amended to read as follows: 30
408.533 1. Except as otherwise provided in NRS 37.270, all 31
real property, interests therein or improvements thereon and 32
personal property acquired before, on or after April 1, 1957, in 33
accordance with the provisions of NRS 408.487 and 408.489 must, 34
after approval by the Board and if no longer needed for highway 35
purposes, be disposed of by the Director in accordance with the 36
provisions of subsection 2, except that: 37
(a) When the property was originally donated to the State, no 38
charge may be made if it is returned to the original owner or to the 39
holder of the reversionary right. 40
(b) When the property has been wholly or partially paid for by 41
towns, cities or counties, disposal of the property and of money 42
received therefor must be agreed upon by the governing bodies of 43
the towns, cities and counties and the Department. 44

– 14 –

- *SB77*
(c) When the title to the real property has been acquired in fee 1
pursuant to NRS 408.487 and 408.489 and, in the opinion of the 2
Board, a sale by means of a public auction or sealed bids is 3
uneconomical or impractical because: 4
(1) There is no access to the property; 5
(2) The property has value or an increased value only to a 6
single adjoining property owner; or 7
(3) Such a sale would work an undue hardship upon a 8
property owner as a result of a severance of the property of that 9
owner or a denial of access to a public highway, 10
 the Board may enter into a direct sale of the property with such 11
an owner or any other person for its fair market value. 12
(d) When the property has been acquired and the property or any 13
portion of the property is no longer needed for highway purposes, 14
the Department shall give notice of its intention to dispose of the 15
property by publication in a newspaper [of general circulation ] 16
qualified under chapter 238 of NRS that is published in the county 17
where the property is situated. The notice must include the 18
Department’s appraisal of the fair market value of the property. Any 19
person from whom the property was purchased or the person’s heir 20
or grantee may purchase the property at its fair market value by 21
direct sale from the Department within 60 days after the notice is 22
published. If more than one person qualified to purchase the 23
property by direct sale pursuant to this paragraph so requests, the 24
person with the superior claim, as determin ed by the Department in 25
its sole discretion, is entitled to purchase the property by direct sale. 26
If a person who is entitled to purchase the property by direct sale 27
pursuant to this paragraph reasonably believes that the Department’s 28
appraisal of the prop erty is greater than the fair market value of the 29
property, the person may file an objection to the appraisal with the 30
Department. The Department shall set forth the procedure for filing 31
an objection and the process under which a final determination will 32
be made of the fair market value of the property for which an 33
objection is filed. The Department shall sell the property in the 34
manner provided in subsection 2 if: 35
(1) No person requests to purchase the property by direct sale 36
within 60 days after the not ice is published pursuant to this 37
paragraph; or 38
(2) A person who files an objection pursuant to this 39
paragraph fails, within 10 business days after receipt of a written 40
notice of the final determination of the fair market value of the 41
property, to notify the Department in writing that he or she wishes to 42
purchase the property at the fair market value set forth in the notice. 43

– 15 –

- *SB77*
(e) When the property is sought by another public agency for a 1
reasonable public use, the Department may first offer the property to 2
the public agency at its fair market value. 3
2. All property, interests or improvements not included within 4
the provisions of subsection 1 must first be offered for sale by the 5
Department singly or in combination at public auction or by sealed 6
bids. If the highest bid received is 90 percent or more of the 7
Department’s appraisal of the fair market value of the property, the 8
property may be sold to the highest bidder. The notice and the terms 9
of the sale must be published in a newspaper [of general circulation 10
in the county where the property is situated. ] qualified under 11
chapter 238 of NRS. The auctions and openings of bids must be 12
conducted by the Department. If the property cannot be sold for 90 13
percent or more of its fair market value, the Department ma y enter 14
into a written listing agreement with a person licensed pursuant to 15
chapter 645 of NRS to sell or lease the property for 90 percent or 16
more of its fair market value. 17
3. It is conclusively presumed in favor of the Department and 18
any purchaser for value that the Department acted within its lawful 19
authority in acquiring and disposing of the property, and that the 20
Director acted within his or her lawful authority in executing any 21
conveyance vesting title in the purchaser. All such conveyances 22
must be quitclaim in nature and the Department shall not warrant 23
title, furnish title insurance or pay the tax on transfer of real 24
property. 25
4. No person has a right of action against the Department or its 26
employees for a violation of this section. This subsecti on does not 27
prevent an action by the Attorney General on behalf of the State of 28
Nevada or any aggrieved person. 29
5. All sums of money received by the Department for the sale 30
of real and personal property must be deposited with the State 31
Treasurer to be credited to the State Highway Fund, unless the 32
Federal Highway Administration participated in acquisition of the 33
property, in which case a pro rata share of the money obtained by 34
disposal of the property must be paid to the Federal Highway 35
Administration. 36
6. The Department may reserve and except easements, rights or 37
interests from the conveyance of any real property disposed of in 38
accordance with this section or exchanged pursuant to subsection 5 39
of NRS 408.489. The easements, rights or interests include, but are 40
not limited to: 41
(a) Abutter’s rights of light, view or air. 42
(b) Easements of access to and from abutting land. 43

– 16 –

- *SB77*
(c) Covenants prohibiting the use of signs, structures or devices 1
advertising activities not conducted, services not rendered or good s 2
not produced or available on the real property. 3
Sec. 15. NRS 408.537 is hereby amended to read as follows: 4
408.537 1. Upon receipt of an application for consent to 5
close a public road on public land, the Department shall give written 6
notice of the application to the planning agencies of the local 7
governments, within 1 week after its receipt of the application. 8
2. Each planning agency so notified shall within 45 days after 9
the notice is sent hold a public hearing on th e application at the 10
place where it normally meets. If the road is located within the 11
jurisdiction of two or more planning agencies, each of those 12
agencies must hold a hearing. 13
3. Each planning agency shall notify the public and every 14
person known to hav e a vested private right -of-way over the road 15
for the purpose of grazing, mining or any other purpose for which 16
such a private right vests, by publication in one issue of a newspaper 17
[of general circulation published in each of the counties in which the 18
land is located] qualified under chapter 238 of NRS and by mailing 19
to the last known address of each private user of the road. The 20
notice must be published at least 20 days before the date set for the 21
hearing and set forth the location of the road and the pu rpose for 22
closing it as stated in the application. The cost of publishing the 23
notice must be borne by the United States or by someone in its 24
behalf. 25
4. The planning agency shall deliver its written 26
recommendation on the application, including the reasons for its 27
recommendation, to the Department within 15 days after the 28
conclusion of its hearing on the application. 29
5. The application must contain such information and 30
supporting documents as are prescribed in regulations adopted by 31
the Department with the approval of the Board. 32
Sec. 16. This act becomes effective upon passage and 33
approval. 34

H