More force for Contractors Board on legislative agenda

Art Nadler

Tuesday, Dec. 17, 1996 | 11:59 a.m.

A legislative panel has proposed changes that would give the state Contractors Board more teeth in responding to homeowner complaints.

The recommendations of the Consumer Fraud Committee follow eight months of hearings at which citizens testified about problems they have encountered in getting the Contractors Board to take action against errant builders.

The committee proposals unveiled Monday would:

* Expand the Contractors Board membership.

* Expand the board's scope of regulatory and enforcement authority.

* Grant the board the authority to engage in binding arbitration.

* Require the board to review licenses and contractors on an ongoing basis, with careful scrutiny of bonding and insurance requirements when contractors apply for or renew a license.

* Increase licensing fees and use the additional revenue for the regulation and enforcement of contractors.

* Increase the amount of the performance bond required of contractors to $100,000.

The six suggestions, however, have been put on hold until January. The Contractors Board has retained Harvey Whittemore of the law firm Lionel, Sawyer and Collins to represent it as a lobbyist in the 1997 Legislature.

The Contractors Board is funded primarily by the contractors themselves.

A Contractors Board representative attended all the committee's meetings, but hasn't provided input or taken a "high-profile position," Whittemore said.

"All of those proposals will be brought before the (Contractors) Board for review," Whittemore said. "We (his law firm) have been retained to provide legislative advice. I can't tell you what the board will do until it is proposed in January."

Sen. Jon Porter, R-Boulder City, who chairs the consumer panel, said, "I was surprised that the Contractors Board needed to hire an outside firm because the areas we are looking at would help them."

Whittemore said the Contractors Board has for now upgraded its Contractors Quick Check program where a consumer can call 486-1100 and information on a contractor's license and bond status is available 24 hours a day.

The Contractors Board also provides a telephone bulletin board system where callers are given instructions on procedures for filing a complaint, Whittemore said.

The Consumer Fraud Committee has also proposed suggestions to change the lien laws. A general contractor would be held responsible for paying his subcontractor.

Now, if a consumer pays a general contractor and he doesn't pay the subcontractor, the subcontractor can seek payment again from the consumer.

The change would call for a lien to be filed against the contractor and not the consumer.

Other recommendations include allowing the state Consumer Affairs Division to form an advisory committee that would identify construction fraud complaints, promote public awareness and propose legislation.

Consumer Affairs would also provide a statewide consumer hotline, where people would be given information and direction in researching businesses. Public information covering the lien laws, bonding, payment and problems with unlicensed contractors would also be provided.

Under consumer automobile fraud, Porter said the committee is hoping to have legislation drafted to stop dealers from selling trade-ins until a buyer's financing has been approved.

In Nevada, you can take possession of an automobile before being financially approved. Some consumers who had been asked to return vehicles later discovered that their trade-in cars were sold.

Porter said more meetings will be conducted once the Legislature reconvenes. Consumers interested in airing their views should call his office at 294-1004.

"We hope we can make life a little easier for our constituents," Porter told his committee upon closing.