2001 REGULAR SESSION (71st) A SB216 616
ASSEMBLY ACTION Initial and Date |SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not |Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by renumbering section 1 as sec. 5 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:
“Section 1. Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.
Sec. 2. 1. The board shall adopt by regulation standards for advertisements used by contractors in connection with the sale of contracts for the repair, restoration, improvement or construction of residential pools or spas.
2. The regulations adopted pursuant to subsection 1 must prohibit a contractor from employing “bait and switch” advertising or otherwise intentionally publishing, displaying or circulating any advertisement which is misleading or inaccurate in any material particular or which misrepresents any of the goods or services sold or furnished by the contractor to members of the public.
3. The board shall, in adopting the standards required by subsection 1, give consideration to the provisions of chapter 598 of NRS relating to advertisements that constitute deceptive trade practices and, to the extent practicable, adopt standards that are at least as stringent as those provisions.
4. A contractor shall not cause to be published or display or circulate any advertisement that does not comply with the standards adopted by the board pursuant to subsection 1.
5. As used in this section, “bait and switch” advertising has the meaning ascribed to it in NRS 482.351.
Sec. 3. 1. No person may be employed by a contractor to carry out a contract for the repair, restoration, improvement or construction of a residential pool or spa unless he holds a work card issued pursuant to subsection 2 by the sheriff of the county in which the work is to be performed.
2. The sheriff of a county shall issue a work card to each person who is required by this section to obtain a work card and who complies with the requirements established by the sheriff for the issuance of such a card. A work card issued pursuant to this section must be renewed each year.
3. If the sheriff of a county requires an applicant for a work card to submit a set of his fingerprints with his application, the sheriff may submit the fingerprints to the central repository for Nevada records of criminal history and to the Federal Bureau of Investigation to determine the criminal history of the applicant.
Sec. 4. 1. A contractor shall obtain the services of a construction control for each contract he enters into on or after July 1, 2001, for the repair, restoration, improvement or construction of a residential pool or spa.
2. The contractor may not:
(a) Be related to the construction control or to an employee or agent of the construction control; or
(b) Hold, directly or indirectly, a financial interest in the business of the construction control.
3. As used in this section, “construction control” has the meaning ascribed to it in NRS 627.050.”.
Amend section 1, page 1, by deleting lines 1 through 14 and inserting:
“Sec. 5. 1. If a contract for the repair, restoration, improvement or construction of a residential pool or spa entered into on or after July 1, 2001, is later found to be void and unenforceable against the owner pursuant to subsection 5 of NRS 597.719, the obligation of the owner to repay a loan to finance that repair, restoration, improvement or construction is discharged.”.
Amend the bill as a whole by renumbering sections 2 through 5 as sections 7 through 10, and adding a new section designated sec. 6, following section 1, to read as follows:
“Sec. 6. 1. A violation of any provision of NRS 597.716 or 597.719 or sections 2 to 5, inclusive, of this act by a contractor constitutes cause for disciplinary action pursuant to NRS 624.300.
2. Any contractor who violates any provision of NRS 597.716 or 519.719 or sections 2 to 5, inclusive, of this act is guilty of a category D felony and shall be punished as provided in NRS 193.130.
3. The imposition of a penalty provided for in subsection 2 is not precluded by any disciplinary action taken by the board against a contractor pursuant to the provisions of NRS 624.300 to 624.305, inclusive.”.
Amend sec. 2, page 2, by deleting lines 36 and 37 and inserting:
“597.713 As used in this section and NRS 597.716 and 597.719, [“contractor”] and sections 2 to 6, inclusive, of this act:
1. “Board” means the state contractors’ board.
2. “Contractor” means a person licensed pursuant to the”.
Amend sec. 3, page 3, line 25, by deleting “section 1” and inserting:
“sections 2 to 6, inclusive,”.
Amend sec. 3, page 3, by deleting lines 31 and 32 and inserting:
“[7. A violation of the provisions of this section by a contractor constitutes cause for disciplinary action pursuant to NRS 624.300.]”.
Amend sec. 4, page 3, by deleting lines 34 through 36 and inserting:
“597.719 1. [A] The commissioner of financial institutions, in consultation with the board, shall adopt by regulation a standard contract to be used by contractors for the repair, restoration, improvement or construction of a residential pool or spa and for acquiring a loan to finance that repair, restoration, improvement or construction. On and after October 1, 2001, any contract entered into between a contractor and the owner of a single-family residence for the repair, restoration, improvement or construction of a residential pool or spa must comply with the standard contract adopted by the commissioner.
2. Any such contract in an amount of more than $1,000 [entered into between a contractor and the owner of a single-family residence for the construction or alteration of a residential pool or spa] must contain in”.
Amend sec. 4, page 4, line 16, by deleting “4,” and inserting “[4,] 5,”.
Amend sec. 4, page 4, by deleting lines 19 through 21 and inserting:
“[2.] 3. The contract must contain [,in] :
(a) A method whereby the owner may initial provisions of the contract, thereby indicating that those provisions have been read and are understood.
(b) In close proximity to the signatures of the owner and the contractor, a notice stating that the owner [has] :
(1) May contact the board if assistance is needed to clarify any of the provisions of the contract that the owner does not fully understand; and
(2) Has the right to request a bond for payment and performance [.
3.] if such a bond is not otherwise required pursuant to NRS 624.270.”.
Amend sec. 4, page 4, line 22, by deleting “3.” and inserting “4.”.
Amend sec. 4, page 4, line 26, by deleting “4.” and inserting “[4.] 5.”.
Amend sec. 4, page 4, lines 28 and 31, by deleting “section 1” and inserting:
“sections 2 to 6, inclusive,”.
Amend sec. 5, page 4, by deleting lines 37 through 48 and inserting:
“residential pools and spas.
2. The ombudsman for residential pools and spas shall:
(a) Assist owners of single-family residences, contractors and financial institutions to understand their rights and responsibilities as set forth in NRS 597.713, 597.716 and 597.719 and sections 2 to 6, inclusive, of this act, and any regulations adopted pursuant thereto.
(b) Notify the board if it appears that any person has engaged in any act or practice that constitutes a violation of any of the provisions of NRS 597.713, 597.716 and 597.719 or sections 2 to 6, inclusive, of this act, or any regulations adopted pursuant thereto.”.
Amend the bill as a whole by deleting sec. 6 and adding new sections designated sections 11 through 17, following sec. 5, to read as follows:
“Sec. 11. NRS 624.262 is hereby amended to read as follows:
624.262 1. A licensee or an applicant for a contractor’s license must prove his financial responsibility by demonstrating that his past and current financial solvency and expectations for financial solvency in the future are such as to provide the board with a reasonable expectation that the licensee or applicant can successfully do business as a contractor without jeopardy to the public health, safety and welfare.
2. The board shall require a licensee or applicant who engages in the repair, restoration, improvement or construction of residential pools or spas to provide a surety bond or other form of security to guarantee that a comprehensive investigation of his financial responsibility is conducted.
Sec. 12. NRS 624.265 is hereby amended to read as follows:
624.265 1. An applicant for a contractor’s license or a licensed contractor and each officer, director, partner and associate thereof must possess good character. Lack of character may be established by showing that the applicant or licensed contractor, or any officer, director, partner or associate thereof, has:
(a) Committed any act which would be grounds for the denial, suspension or revocation of a contractor’s license;
(b) A bad reputation for honesty and integrity;
(c) Entered a plea of novo contendere, guilty or guilty but mentally ill to, been found guilty of or been convicted of a crime arising out of, in connection with or related to the activities of such person in such a manner as to demonstrate his unfitness to act as a contractor, and the time for appeal has elapsed or the judgment of conviction has been affirmed on appeal; or
(d) Had a license revoked or suspended for reasons that would preclude the granting or renewal of a license for which the application has been made.
2. Upon the request of the board, an applicant for a contractor’s license, and any officer, director, partner or associate of the applicant, must submit to the board completed fingerprint cards and a form authorizing an investigation of the applicant’s background and the submission of his fingerprints to the central repository for Nevada records of criminal history and the Federal Bureau of Investigation. The fingerprint cards and authorization form submitted must be those that are provided to the applicant by the board. The applicant’s fingerprints may be taken by an agent of the board or an agency of law enforcement.
3. Before granting an original contractor’s license to, or renewing the contractor’s license of, an applicant who engages or will engage in the repair, restoration, improvement or construction of residential pools or spas, the board shall require the applicant, and any officer, director, partner or associate of the applicant, to submit to the board completed fingerprint cards and a form authorizing an investigation of their background and the submission of their fingerprints to the central repository for Nevada records of criminal history and the Federal Bureau of Investigation pursuant to subsection 2.
4. The board shall keep the results of the investigation confidential and not subject to inspection by the general public.
[4.] 5. The board shall establish by regulation the fee for processing the fingerprints to be paid by the applicant. The fee must not exceed the sum of the amounts charged by the central repository for Nevada records of criminal history and the Federal Bureau of Investigation for processing the fingerprints.
[5.] 6. The board may obtain records of a law enforcement agency or any other agency that maintains records of criminal history, including, without limitation, records of:
(a) Arrests;
(b) Guilty pleas;
(c) Sentencing;
(d) Probation;
(e) Parole;
(f) Bail;
(g) Complaints; and
(h) Final dispositions,
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for the investigation of a licensee or an applicant for a
contractor’s license.
Sec. 13. NRS 624.270 is hereby amended to read as follows:
624.270 1. Before issuing a contractor’s license to any applicant, the board shall require that the applicant:
(a) File with the board a surety bond in a form acceptable to the board executed by the contractor as principal with a corporation authorized to transact surety business in the State of Nevada as surety; or
(b) In lieu of such a bond, establish with the board a cash deposit as provided in this section.
2. Before granting renewal of a contractor’s license to any applicant, the board shall require that the applicant file with the board satisfactory evidence that his surety bond or cash deposit is in full force, unless the applicant has been relieved of the requirement as provided in this section.
3. Failure of an applicant or licensee to file or maintain in full force the required bond or to establish the required cash deposit constitutes cause for the board to deny, revoke, suspend or refuse to renew a license.
4. Except as otherwise provided in subsection 6, the amount of each bond or cash deposit required by this section must be fixed by the board with reference to the contractor’s financial and professional responsibility and the magnitude of his operations, but must be not less than $1,000 or more than $100,000. The bond must be continuous in form and must be conditioned that the total aggregate liability of the surety for all claims is limited to the face amount of the bond irrespective of the number of years the bond is in force. The board may increase or reduce the amount of any bond or cash deposit if evidence supporting such a change in the amount is presented to the board at the time application is made for renewal of a license or at any hearing conducted pursuant to NRS 624.291. Unless released earlier pursuant to subsection 5, any cash deposit may be withdrawn 2 years after termination of the license in connection with which it was established, or 2 years after completion of all work authorized by the board after termination of the license, whichever occurs later, if there is no outstanding claim against it.
5. After a licensee has acted in the capacity of a licensed contractor in the State of Nevada for not less than 5 consecutive years, the board may relieve the licensee of the requirement of filing a bond or establishing a cash deposit if evidence supporting such relief is presented to the board. The board may at any time thereafter require the licensee to file a new bond or establish a new cash deposit as provided in subsection 4 [if] :
(a) If evidence is presented to the board supporting this requirement [or, pursuant] ;
(b) Pursuant to subsection 6, after notification of a final written decision by the labor commissioner [.] ; or
(c) Pursuant to subsection 7.
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If a licensee is relieved of the requirement of establishing a
cash deposit, the deposit may be withdrawn 2 years after such relief is
granted, if there is no outstanding claim against it.
6. If the board is notified by the labor commissioner pursuant to NRS 607.165 that three substantiated claims for wages have been filed against a contractor within a 2-year period, the board shall require the contractor to file a bond or establish a cash deposit in an amount fixed by the board. The contractor shall maintain the bond or cash deposit for the period required by the board.
7. The board may require a contractor who engages in the repair, restoration, improvement or construction of residential pools or spas to file a bond or establish a cash deposit in an amount fixed by the board if the board:
(a) Has received a complaint against the contractor regarding the repair, restoration, improvement or construction of a residential pool or spa and determines that the contractor has committed an act which constitutes a cause for disciplinary action; or
(b) Determines that the contractor has entered into a contract which did not comply with the provisions of NRS 597.716 or 597.719.
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The contractor shall
maintain the bond or cash deposit for the period required by the board.
8. As used in this section, “substantiated claims for wages” has the meaning ascribed to it in NRS 607.165.
Sec. 14. NRS 624.750 is hereby amended to read as follows:
624.750 1. It is unlawful for a person to commit any act or omission described in subsection 2 of NRS 624.3013, NRS 624.3014 or subsection 1, 3 or 7 of NRS 624.3016.
2. [Any] Unless a greater penalty is otherwise provided by specific statute, any person who violates subsection 1, NRS 624.305, subsection 1 of NRS 624.700 or NRS 624.720 or 624.740:
(a) For a first offense, is guilty of a misdemeanor and shall be punished by a fine of not more than $1,000, and may be further punished by imprisonment in the county jail for not more than 6 months.
(b) For the second offense, is guilty of a gross misdemeanor and shall be punished by a fine of not less than $2,000 nor more than $4,000, and may be further punished by imprisonment in the county jail for not more than 1 year.
(c) For the third or subsequent offense, is guilty of a class E felony and shall be punished by a fine of not less than $5,000 nor more than $10,000 and may be further punished by imprisonment in the state prison for not less than 1 year and not more than 4 years.
3. Imposition of a penalty provided for in this section is not precluded by any disciplinary action taken by the board against a contractor pursuant to the provisions of NRS 624.300 to 624.305, inclusive.
Sec. 15. NRS 627.175 is hereby amended to read as follows:
627.175 [The]
1. Except as otherwise provided in subsection 2, the following shall not be a construction control or subject to the provisions of this chapter:
[1.] (a) A contractor licensed under the laws of the State of Nevada, paying a subcontractor, supplier of material, laborer [,] or other person for bills incurred in the construction, repair, alteration or improvement of any premises.
[2.] (b) A subcontractor licensed to do business under the laws of the State of Nevada, paying a subcontractor, supplier of material, laborer or other person for bills incurred in the construction, repair, alteration or improvement of any premises.
[3.] (c) An owner-contractor paying a contractor, subcontractor, supplier of material, laborer or other person for bills incurred in the construction, repair, alteration or improvement of any premises.
[4.] (d) A lender of construction loan [moneys,] money, provided that he disburses the [funds] money directly to a contractor authorized by the borrower to do the work, or disburses the [funds] money directly to the owner of the premises.
[5.] (e) A lender of construction loan [moneys,] money, to an owner of a residential property or to an owner of not more than four units if the loan is made to repair or improve such property and the construction costs are $10,000 or less, or 35 percent of the appraised value of the improvements and repairs, whichever is greater.
2. The provisions of this chapter apply to a contractor who is required to obtain the services of a construction control pursuant to the provisions of section 4 of this act.
Sec. 16. The amendatory provisions of this act do not apply to offenses committed before July 1, 2001.
Sec. 17. 1. This section and section 1 of this act become effective upon passage and approval.
2. Sections 2 and 9 of this act become effective upon passage and approval for the purpose of adopting regulations necessary to carry out those sections and on October 1, 2001, for all other purposes.
3. Section 3 of this act becomes effective 60 days after passage and approval of this act.
4. Sections 4 to 8, inclusive, and 10 to 16, inclusive, of this act become effective on July 1, 2001.”.
Amend the title of the bill by deleting the second through fifth lines and inserting:
“restoration, improvement or construction of residential pools and spas; providing for the adoption of standards for advertisements used by contractors who repair, restore, improve or construct such pools and spas; requiring the commissioner of financial institutions to adopt a standard contract for use by such contractors; providing for the designation of an ombudsman for residential pools and spas; providing a penalty; and providing other matters properly relating thereto.”.
Amend the summary of the bill to read as follows: