Tuesday, June 17, 1997 | 11:59 a.m.
The owner of Mirage Pools was operating under someone else's business license, and neither Clark County officials nor the state Contractors Board did anything about it.
The company is now closed, is filing for bankruptcy, and has 36 complaints filed against it by consumers.
Because business licenses are regarded by consumers as a symbol of trust, and because the state Contractors Board has a weak record of regulating swimming pool builders, County Commission Chairwoman Yvonne Atkinson Gates says it's time for the county to tighten licensing procedures.
Randall Simmons is listed on the Contractors Board license application as the qualified employee and treasurer of Mirage Pools, April Simmons as corporate president and Chadwick Simmons as vice president.
Clark County records dated Sept. 13, 1990, however, list three other people as owners of the company. They are David Baxter, president; Aurilla Baxter, vice president; and Denise Baxter, secretary.
Clark County Business Licensing records show the license was renewed in April by check for $231, but there is no record of who paid the fee.
Mirage Pools' offices at 2550 E. Tropicana Ave. are closed and telephone service has been disconnected. Simmons is filing for bankruptcy, according to Harry Stephey, director of investigation for the Contractors Board.
"You must come in and be reissued a new license" in the event of a change of ownership, said Ardel Jorgensen, director of the Clark County Business Licensing Department. "If we would have had information that they didn't have a license, there would have been a court citation issued."
Simmons would have faced a $1,000 fine for not having a business license.
Jorgensen also said the county doesn't do background checks on everyone who applies for a business license. Only individuals seeking regulated or privileged licenses are investigated. The county relies on the Contractors Board to do that, she said.
But that reliance may be misplaced. The SUN has done numerous stories in recent years regarding the Contractors Board's failure to regulate the building industry. Kay Barber, executive officer of the board, at one time said "the corporation has the license and not the new owner."
Unless there is a change in officers or the qualified employee, the Contractors Board doesn't do a background check on the new owner.
"Maybe this is something we need to take a look at to make sure we have legitimate owners," Gates said. "This is the second time we have been through this with a swimming pool company."
Oasis Pools Inc., owned by James Hampton, filed for Chapter 7 bankruptcy after contracting to build 104 swimming pools in and around Las Vegas in 1995. Numerous people paid thousands of dollars for pools that were never finished.
"This is something we (the commission) will probably look at," Gates said. "I think we can be proactive from now on regarding licensing. That's what business licenses are all about, to provide consumers protection. Maybe it will take longer to get business licenses, but license checks may be required."
No one appears to be seriously investigating swimming pool builders before they go into business. No swimming pool contractors are members of the Associated General Contractors chapter in Las Vegas. This organization has 450 member firms: 85 general contractors and 365 subcontractors.
The AGC does extensive background checks on contractors and subcontractors before admitting them into the organization.
The Southern Nevada Home Builders Association has only two swimming pool contractors as members. While it requires that members have a contractor's license, it doesn't do background checks on members.
"We rely on the Contractors Board to do checks," said Joanne Jensen, director of public affairs for the association. "We don't do enforcement, licensing or take disciplinary action. That rests with the Contractors Board."
Sen. Jon Porter, R-Boulder City, has Senate Bill B458 before the Senate Commerce Committee. It would increase contractors' bonds, create an advisory committee to study consumer fraud, and make it more difficult for contractors to file liens against homeowners.
Last summer, in a series of public meetings, Porter's Consumer Fraud Committee recommended proposals to give the Contractors Board regulation powers to review licenses on an ongoing basis.
Currently, there are no bills before the Legislature that would give the Contractors Board more regulatory authority.
The Contractors Board has been reluctant to accept regulatory powers, opting instead to advise consumers to seek legal actions against contractors.
Porter's bill was scheduled to be heard today at 4:30 p.m. The hearing was scheduled to be relayed live to Las Vegas via teleconference at the Sawyer State Office Building.
Porter, who said he's trying to build consensus for his bill, offered an explanation for the lax ways of the Contractors Board. "They're overwhelmed by growth," he said.
Assemblyman John Lee, D-Las Vegas, also has a bill before the Senate Commerce Committee. Assembly Bill 512, which has already passed the Assembly, would make it unlawful for a swimming pool contractor to require more than $200 as a down payment, or 2 percent of the price stated in the contract.
The bill also requires that a swimming pool contractor have a soil analysis done before digging begins. Lee's bill was also scheduled to be discussed at today's hearing.
The Contractors Board is having a hearing regarding the complaints against Mirage Pools on June 25 at 1:30 p.m. in its offices at 4220 S. Maryland Parkway, Building D.
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