Panel approves help for homeowners Assembly to vote on construction-defects bill

CARSON CITY -- A bill that would help homeowners get contractors to fix construction defects has been approved by the Assembly Judiciary Committee.

Senate Bill 37, which now moves to the floor of the Assembly, is part of a package that cracks down on errant home builders and gives the buyer more protection.

Committee Chairman Bernie Anderson, D-Sparks, said a compromise between insurance companies, contractors, subcontractors and trial attorneys was reached. This was one of the most heavily lobbied bills of the session.

But doubts remained as to whether the bill would work the way it is touted for the homeowner. Assemblyman John Carpenter, R-Elko, said Thursday he is concerned the bill might "not do what the witnesses said it would do."

"I hope everybody keeps the faith so we don't have to come back," he said, referring to a possible reworking of the bill at the 2001 session of the Legislature.

Anderson also expressed the same concern, and Assemblywoman Sharron Angle, R-Reno, voted against the measure, saying she is not happy about a section that would require disclosures of defects to a new owner.

Under the bill, a homeowner must reveal to a prospective buyer any claims that were filed against a contractor to fix defects. The disclosure is required, even if the defects were repaired.

The bill says that a contractor who receives a complaint from the owner of a home that is less than 1 year old must have it repaired within 45 days. If the builder refuses, mediation is authorized under the current law.

If there is no resolution, the homeowner can file suit against the contractor. In a case where five or more homeowners in a development experience construction problems, they can go immediately to court, bypassing mediation. Deadlines are set for handling the case, and a special master is appointed to preside over the suit.

The complaining homeowners would be required to sue only the general contractor, who could bring in subcontractors who might be responsible. There would be a prompt exchange of information to speed up the processing of the case.

In the last two years, numerous homeowners, particularly in Southern Nevada, have complained that contractors are not making satisfactory repairs.

The Senate Commerce and Labor Committee this week approved three bills that would increase the powers of the state Contractors Board and set up a fund to help homeowners. The bills moved to the full Senate for a vote.

Assembly Bill 636 establishes a fund allowing a homeowner to receive up to $30,000 to repair construction defects the contractor will not fix. The dissatisfied resident would have to file a complaint with the Contractors Board, which would decide if an award is warranted.

Homebuilders would be assessed a yearly fee to finance the home repair fund.

Assembly Bill 633 upgrades the requirements for receiving a contractor's license. The bill would require at least four years' experience as a journeyman, foreman or supervising employee. The law now requires only that the person must have worked in the industry for four years.

Assembly Bill 634 allows the Contractors Board to set up a special investigations unit to look into alleged misconduct by builders. This permits the investigators to have access to criminal history records of other agencies. This information is used in looking into the background of applicants for a contractor's license.

Additional powers are given to the board in AB634 to take disciplinary action, including imposing a fine of up to $20,000 for a contractor who is operating without a license.

"I hope everybody keeps the faith so we don't have to come back."Assemblyman John Carpenter, R-ElkoURGING CARE ON CONSTRUCTION BILL

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