Assembly Bill No. 297-Assemblymen Buckley, Ohrenschall, Collins, Manendo, Perkins, Nolan, Evans, Krenzer, Price, Lambert, Parks, Koivisto, Lee, Chowning, Ernaut, Hettrick, Williams, Berman, de Braga, Neighbors, Marvel, Von Tobel, Humke, Close, Goldwater, Giunchigliani, Arberry, Anderson, Bache, Freeman and Segerblom
March 24, 1997
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Referred to Committee on Commerce
SUMMARY--Makes various changes concerning manufactured housing. (BDR 43-806)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to manufactured housing; imposing liability on certain unlicensed persons who cause damage to mobile homes, manufactured homes and commercial coaches; placing conditions on the withdrawal of money from a dealer's trust account; clarifying that a contractor's license does not authorize a contractor to construct or repair such manufactured housing; providing that the construction or repair of manufactured housing by a contractor is a ground for disciplinary action under certain circumstances; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 489.291 is hereby amended to read as follows:
489.291 1. [Whenever] If the administrator finds a violation of this chapter or of the prohibition in NRS 118B.140 against charging or receiving [any] an entrance or exit fee, or of any regulation adopted pursuant to this chapter, he may issue a notice of violation to the person who he alleges has violated the provision. The notice of violation must set forth the violation which the administrator alleges with particularity and specify the corrective action which is to be taken and the time within which the action must be taken. If the person is alleged to have violated the prohibition in NRS 118B.140 against charging or receiving [any] an entrance or exit fee, the notice of violation must specify that the fee be repaid in full, and may specify any other corrective action which the administrator deems necessary.
2. Any person who fails to take the corrective action required in a notice of violation is guilty of a misdemeanor and the administrator may:
(a) Apply to the district court for the judicial district in which the violation is alleged to have occurred for an injunction and any other relief which the court may grant to compel compliance;
(b) Request that the district attorney of the county in which the violation is alleged to have occurred [to] prosecute the person for the violation; [or]
(c) If the person is alleged to have violated the prohibition in NRS 118B.140 against charging or receiving [any] an entrance or exit fee, assess a penalty against the person equal to three times the amount of the fee which was charged or received [. The assessment of a penalty pursuant to this paragraph is a contested case.] ; or
(d) If the person is alleged to have violated NRS 489.311 and while acting without a license is alleged to have caused damage to a mobile home, manufactured home or commercial coach, require that the person reimburse the owner of the mobile home, manufactured home or commercial coach for the cost of repairing such damage and assess a penalty against that person equal to the estimated cost of such repairs.
3. The assessment of a penalty pursuant to paragraph (c) or (d) of subsection 2 is a contested case.
4. Any person who is found to have violated a provision of this chapter, the prohibition in NRS 118B.140 against charging or receiving [any] an entrance or exit fee, or a regulation adopted pursuant to this chapter, is liable for the cost incurred by the division in enforcing the provision [.] or regulation.
Sec. 2 NRS 489.724 is hereby amended to read as follows:
489.724 1. All down payments, deposits of earnest money, proceeds of loans or other money which a dealer receives, on behalf of his principal or any other person, must be deposited in a separate checking account, which must be designated a trust account, in a financial institution in this state whose deposits are insured by an agency of the Federal Government.
2. Every dealer required to maintain a separate or trust account shall keep records of all money deposited therein. The records must clearly indicate the date and from whom he received money, the date deposited, the dates of withdrawals, and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. All such records and money are subject to inspection and audit by the division and its authorized representatives. All such separate trust accounts must designate the dealer as trustee and provide for the withdrawal of money without previous notice.
3. All money deposited in a separate trust account from down payments, deposits of earnest money, proceeds of loans or other money received by a dealer from any person who has entered into a contract with the dealer must not be withdrawn from the account until the dealer's duties as set forth in the contract have been completed and all liabilities have been satisfied.
4. Each dealer shall notify the division of the names of the financial institutions in which he maintains trust accounts and specify the names of the accounts on forms provided by the division.
Sec. 3 Chapter 624 of NRS is hereby amended by adding thereto a new section to read as follows:
A contractor's license issued pursuant to this chapter does not authorize a contractor to construct or repair a mobile home, manufactured home or commercial coach.
Sec. 4 NRS 624.215 is hereby amended to read as follows:
624.215 1. For the purpose of classification, the contracting business includes [any or all of] the following branches:
(a) General engineering contracting.
(b) General building contracting.
(c) Specialty contracting.
General engineering contracting and general building contracting are mutually exclusive branches.
2. A general engineering contractor is a contractor whose principal contracting business is in connection with fixed works, including irrigation, drainage, water supply, water power, flood control, harbors, railroads, highways, tunnels, airports and airways, sewers and sewage disposal systems, bridges, inland waterways, pipelines for transmission of petroleum and other liquid or gaseous substances, refineries, chemical plants and industrial plants requiring a specialized engineering knowledge and skill, power plants, piers and foundations and structures or work incidental thereto.
3. A general building contractor is a contractor whose principal contracting business is in connection with any structures built, being built, or to be built, for the support, shelter and enclosure of persons, animals, chattels or movable property of any kind, requiring in its construction the use of more than two unrelated building trades or crafts, or to do or superintend the whole or any part thereof. A person who exclusively constructs or repairs mobile homes, manufactured homes or commercial coaches is not a general building contractor.
4. A specialty contractor is a contractor whose operations as such are the performance of construction work requiring special skill and whose principal contracting business involves the use of specialized building trades or crafts.
5. Nothing in this section prevents the board from establishing, broadening, limiting or otherwise effectuating classifications in a manner consistent with established custom usage and procedure found in the construction business. The board is specifically prohibited from establishing classifications in such a manner as to determine or limit craft jurisdictions. Sec. 5.NRS 624.3015 is hereby amended to read as follows:
624.3015 The following acts, among others, constitute cause for disciplinary action under NRS 624.300:
1. Acting in the capacity of a contractor beyond the scope of the license.
2. Bidding to contract or contracting for a sum for one construction contract or project in excess of the limit placed on the license by the board.
3. Knowingly entering into a contract with a contractor while that contractor is not licensed, or bidding to contract or entering into a contract with a contractor for work in excess of his limit or beyond the scope of his license.
4. Constructing or repairing a mobile home, manufactured home or commercial coach, unless the contractor:
(a) Is licensed pursuant to NRS 489.311; or
(b) Owns, leases or rents the mobile home, manufactured home or commercial coach.