Senators pondering poor work by builders

Thursday, April 29, 1999 | 12:12 p.m.

The Commerce and Labor Committee is reviewing three bills proposing changes to the state Contractors' Board, the seven-member panel that works to ensure bad builders are prevented from operating in Nevada.

AB59 by Assemblyman John Lee, D-Las Vegas, and AB633 and 634 requested by the Contractors' Board, would strengthen the board's ability to investigate and regulate residential contractors.

The committee also is studying AB636 by Assemblywoman Barbara Buckley, D-Las Vegas, which would establish a fund administered by the Contractors' Board to fix residential construction defects.

The fund, which would be established with assessments on contractors, has the support of the Southern Nevada Homebuilders Association.

The biggest debate during a hearing Wednesday was over a provision in Lee's bill that would change the makeup of the Contractors' Board from six contractors and one member of the public to three general contractors, three subcontractors and one member of the public. Members would be limited to two, four-year terms in the bill.

Lee said the board needs fresh ideas, noting that four current members have served more than 10 years.

Members of the Contractors' Board and its executive officer Margi Grein, opposed the changes, however, saying continuity would be disrupted.

Kim Gregory of Las Vegas, chairman and member of the board since 1989, said it can take a few years just to get up to speed on the issues. The Legislature should give the board the chance to continue the improvements it has made in its policing of the home-building industry over the past few years, he said.

Grein said changing the board would be a step backward.

"Right now, to change my leadership would be devastating," she said.

The Southern Nevada Homebuilders Association supported Lee's bill with some minor changes, while the Nevada Chapter of the Associated General Contractors opposed the measure.

Committee Chairman Randolph Townsend, R-Reno, asked whether a new governor should be given the authority to appoint board members.

Board officials noted that the terms of two of the seven appointees have expired, giving Gov. Kenny Guinn a chance to make selections. Another three members have terms that will expire in October.

Buckley said her bill, borrowed from a successful Arizona law, would raise an estimated $1.5 million a year for the recovery fund to assist homeowners who had defective repairs made by licensed contractors.

Townsend said all four measures have good elements to help ensure that people buying homes get quality products or get problems fixed quickly. The measures face a committee vote May 7.