1. Before paying any money or drawing a warrant in payment to a person to whom a contract is awarded, the State Controller shall require satisfactory evidence of the person’s compliance with the requirements to provide workers’ compensation pursuant to chapters 616A to 617, inclusive, of NRS and of the person’s payment of the contributions and payments required by chapter 612 of NRS, and the State Controller shall withhold payment to the contractor or the contractor’s assigns until the evidence is provided.
2. If a contractor fails to provide the required coverage, the State Controller may make the payments for this purpose to a private carrier on his or her own behalf from money withheld pursuant to the provisions of subsection 1.
3. Failure to comply with all federal, state and local laws, rules, regulations and ordinances is sufficient cause to withhold any money due the contractor until compliance therewith.