Lawmakers, home builders spar over greater regulation

Jennifer Coleman

Friday, March 12, 1999 | 2:15 a.m.

CARSON CITY, Nev. -- Angry homeowners with defective houses urged lawmakers on Friday to strengthen the authority of the State Contractors Board and crack down on unscrupulous builders.

They brought their stories of missing gutters, buckling walls, leaking roofs and standing water before the Senate Commerce and Labor Committee.

The panel is considering SB32, which would tighten regulations on contractors and raise the penalties for negligence.

Frank Gross, a Reno homeowner and contractor, said his new home had more than a dozen code violations, yet the contractor who built it continues constructing homes in his neighborhood.

He said the defects in his home are causing its value to plunge.

"I've got to disclose everything that's wrong in my house, but the contractor can leave the state at any time and I'm left holding the bag," he said.

Gross, a licensed contractor himself for 36 years, said he was appalled at the lax attitude of the regulatory agencies.

Commerce and Labor Chairman Randolph Townsend, R-Reno, agreed that the current laws "ain't working."

He asked the head of the state contractors board why home builders with such flagrant violations were allowed to keep their licenses.

"I'm tired of hearing excuses," Townsend said.

"If someone doesn't build something to code, that's illegal," he said.

Townsend wants to revamp all regulations of contractors so homeowners can get their homes repaired quickly if something isn't done right.

The State Contractors Board opposes SB32. Among other changes, it would shorten the length of time a contractor had to renew an expired license from six months to 45 days.

Margi Grein, chief of the board, said that provision isn't workable. She suggested prohibiting contractors from working while their license had lapsed, but allowing them 3 years to renew.

The number of licenses revoked from contractors has increased from six or seven a year ago to more than 40 the last six months, Grein said.

The most common reasons for revoking licenses are failure to complete work or pay subcontractors, she said.

SB32 also would increase penalties for contractors found to be negligent or fraudulent and would give the agency greater flexibility in punishing unscrupulous builders.

George Lyford, a criminal investigator for the contractors board, agreed the bill would "give us some teeth and a way to go after this problem."

But he said the agency still intends to offer its own bill to solve the problems.

No action was taken on the measure. It will be addressed again next week, along with other bills on construction defects.