Senate Bill No. 437–Committee on Commerce and Labor

 

March 24, 2003

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Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes relating to contractors and projects involving residential pools and spas. (BDR 52‑1288)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to contractors; prohibiting certain acts relating to the repair, restoration, improvement or construction of residential pools and spas; clarifying certain provisions that prohibit contractors from acting as owners of certain companies, corporations and business entities; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 597.715 is hereby amended to read as follows:

1-2  597.715  1.  Any contractor or subcontractor who performs

1-3  work for the repair, restoration, improvement or construction of a

1-4  residential pool or spa shall, regardless of whether the work is

1-5  performed under the direction of a builder who is also the owner of

1-6  the property being improved:

1-7  (a) Apply for and obtain all applicable permits for the project;

1-8  and

1-9  (b) Meet all applicable requirements imposed pursuant to:

1-10          (1) This chapter;

1-11          (2) Chapter 624 of NRS; and

1-12          (3) Any regulations adopted by the Board,

1-13  with respect to contracts for the repair, restoration, improvement or

1-14  construction of a residential pool or spa.

2-1  2.  If a contractor or subcontractor performs work for the repair,

2-2  restoration, improvement or construction of a residential pool or spa

2-3  and the work is performed under the direction of a builder who is

2-4  also the owner of the property being improved, the owner shall

2-5  comply with all state and local laws and ordinances for the

2-6  submission of names, licenses and information concerning any

2-7  required bonds and insurance with respect to the contractors and

2-8  subcontractors working on the project.

2-9  3.  With respect to a contract for the repair, restoration,

2-10  improvement or construction of a residential pool or spa, regardless

2-11  of use, the work performed pursuant to such a contract must be

2-12  supervised and controlled directly by the qualified employee or

2-13  qualified officer of the contractor.

2-14      4.  If the repair, restoration, improvement or construction of

2-15  a residential pool or spa is performed under the direction of a

2-16  builder who is exempt from having to obtain a license as a

2-17  contractor because the builder is also the owner of the property

2-18  being improved, a person shall not, directly or indirectly, perform

2-19  or offer to perform, for a fee, any act as a consultant, adviser,

2-20  assistant or aide to the builder for the purposes of the project,

2-21  including, without limitation, any act associated with obtaining

2-22  permits for the project, or otherwise hold himself out as being able

2-23  to perform such acts for a fee, unless the person holds:

2-24      (a) A license as a contractor or subcontractor under state law

2-25  which authorizes the person to perform such acts for a fee; or

2-26      (b) Any other license, certificate, registration or permit under

2-27  state law which authorizes the person to perform such acts for a

2-28  fee.

2-29      Sec. 2.  NRS 597.7192 is hereby amended to read as follows:

2-30      597.7192  1.  Except as otherwise provided in this section and

2-31  NRS 597.7194, a contractor who engages in the repair, restoration,

2-32  improvement or construction of a residential pool or spa shall not

2-33  act as, or carry out the duties of, an officer, director, employee or

2-34  owner of a bonding company, finance company, or any other

2-35  corporation or business entity who cosigns, underwrites, obtains a

2-36  deed of trust for, issues, sells, purchases or acquires a loan to

2-37  finance the repair, restoration, improvement or construction of a

2-38  residential pool or spa.

2-39      2.  The provisions of this section do not prohibit a contractor

2-40  from owning, holding or possessing, either directly or indirectly

2-41  through a mutual fund or any other financial arrangement or

2-42  investment plan, any stocks or other securities issued by a

2-43  company, corporation or business entity described in subsection 1

2-44  if:

3-1  (a) The stocks or other securities are offered openly to the

3-2  public through a securities exchange; and

3-3  (b) The contractor does not own, hold or possess a controlling

3-4  interest in the company, corporation or business entity.

3-5  Sec. 3.  This act becomes effective upon passage and approval.

 

3-6  H