Contractors Board waits for more powers

Art Nadler

Friday, Jan. 10, 1997 | 11:59 a.m.

The state Contractors Board didn't have time to formally review several proposals brought before it by a consumer fraud committee, opting instead to see what new powers the Legislature will give it.

Sen. Jon Porter, R-Boulder City, had conducted five town hall meetings over an eight-month period that brought consumers and governmental agencies together to help strengthen consumer fraud laws. His committee submitted six proposals to the Contractors Board for consideration.

"It's been misunderstood as to what the ability of the board is," Chairman Kim Gregory said Thursday, a day after the board met in Reno. "I think we have done a lot of good, and made headway in the last couple years."

The Consumer Fraud Committee proposals suggested:

* Expanding the Contractors Board membership.

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

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

* Requiring the board to review licenses and contractors on an ongoing basis, with careful scrutiny of bonding and insurance requirements.

* Increasing licensing fees and using the additional revenue for the regulation and enforcement of contractors.

* Increasing the amount of the performance bond for contractors to $100,000.

Gregory says increasing the board's membership won't do any good, stating that the current seven members are capable of handling the workload. He pointed out that the board's enforcement authority has already been expanded.

"Up until this year, we couldn't order contractors to do corrective work," Gregory said. "We just were given the right (from the last Legislative session) to give out fines."

He says the board shouldn't get involved in arbitrating money disputes between homeowners and contractors, arguing that that responsibility should remain with the courts.

"We couldn't collect money because that's not in our authority," Gregory said.

Gregory said the board already has the authority to review contractors' licenses because they are renewed annually. Bad contractors are not given new licenses.

The chairman says increasing licensing fees won't do anything because the board is self-sufficient. He said the board has enough inspectors to oversee contractors throughout the state.

"Increasing the performance bond would have no effect on homeowners and good contractors and some effect on unscrupulous contractors," Gregory said. "But in the case of Oasis Pools (that went bankrupt last year), it wouldn't have helped."

Gregory defended Nevada as being one of the few states requiring that a contractor show experience before being granted a license.

"We are doing a better job than in years past," Gregory said. "It's up to the Legislature to change the laws. People don't understand that."