Assembly Bill No. 512-Assemblymen Lee, Hickey, Tiffany, Parks, Amodei, Mortenson, Braunlin, Williams, Neighbors, Perkins, Bache, Humke, Von Tobel, Carpenter, Sandoval, Gustavson, de Braga, Marvel, Evans, Koivisto, Hettrick, Price, Chowning, Cegavske, Manendo, Freeman, Goldwater, Giunchigliani, Ohrenschall, Krenzer, Lambert, Herrera and Buckley
May 20, 1997
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Referred to Committee on Commerce
SUMMARY--Revises provisions relating to contractors who construct residential swimming pools or repair residential buildings. (BDR 54-1029)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to contractors; providing for the regulation of contracts for the construction of residential swimming pools; prohibiting certain acts and omissions by contractors regarding the construction of residential swimming pools; requiring specific disclosures by certain contractors; requiring the state contractors' board to adopt certain informational statement; providing a penalty; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 624 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.
Sec. 2 As used in sections 2 to 5, inclusive, of this act, unless the context otherwise requires, "contract for the construction of a residential pool" means a contract between a contractor and the owner of a single-family residence, or the land adjacent thereto, for the construction or alteration of a residential pool or spa to be used for swimming, therapy or decoration at the residence or on the land adjacent thereto, including, without limitation, all appurtenant equipment, where the aggregate price of all such contracts between the contractor and the owner, including labor, services and materials to be furnished by the contractor, exceeds $1,000.
Sec. 3 1. A contract for the construction of a residential pool must be in writing. Such a contract must include, but is not limited to:
(a) An agreement by the contractor to take such actions as are necessary to ensure that a professional engineer registered pursuant to chapter 625 of NRS conducts, before any work on the pool or spa is begun, an analysis of the soil at the site of the proposed construction to ascertain the properties of the soil and determine whether the soil is suitable for such construction. The contractor shall not begin construction of a pool or spa until:
(1) The results of such an analysis have been reported in writing by the professional engineer to the contractor; and
(2) A copy of the report has been provided by the contractor to the owner or his designated agent;
(b) An agreement by the contractor to provide to the owner or his designated agent, before each stage of construction is begun, a written schedule for the completion of the particular stage or phase of the construction. Such a schedule must not set a schedule for the completion of a stage or phase that exceeds 30 days, except for delay caused by an act of God, unless the owner agrees in writing to a longer period for the completion of the particular stage or phase; and
(c) Any other provision required by the board to be included in such a contract.
2. The following acts, among others, constitute cause for disciplinary action under NRS 624.300:
(a) The failure of a contractor to provide a written schedule for the completion of each stage or phase of the construction in accordance with subsection 1 or to fail to complete each stage or phase of construction within the time set forth in the applicable schedule.
(b) The commencement by a contractor of construction of a pool or spa before the results of a soil analysis conducted in accordance with subsection 1 have been reported by the professional engineer to the contractor, unless the owner specifically agreed in writing to waive this provision of the contract.
Sec. 4 It is unlawful for a contractor, with regard to a contract for the construction of a residential pool:
1. To require a cash deposit or a down payment that:
(a) Exceeds $200 or 2 percent of the price stated in the contract, excluding finance charges, whichever is less, for a residential pool or spa.
(b) Exceeds the amount set forth in paragraph (a) of this subsection plus 50 percent of the actual cost of a custom-made item or material for an improvement which includes the installation of a custom-made item or material specifically requested by the owner that is available from only one source of supply or that could not reasonably be used by the contractor in another project.
2. If the contract for the construction of a residential pool includes construction or alteration that is phased, staged or sequential and includes, without limitation, work involving excavation, iron, plumbing, gas, electricity, concrete, gunite, tile or plaster:
(a) Except for a down payment authorized by subsection 1, to receive or establish a schedule of payments that provides for the contractor to receive a payment which, excluding finance charges, exceeds the contracted amount or the fair market value of the work actually performed as of the date of the payment.
(b) To establish a schedule of payments which does not specifically reference the amount of work or services to be performed and the amount of materials and equipment to be provided as of the date of each payment.
Sec. 5 1. The board shall adopt an informational statement to be distributed to potential customers by contractors who offer contracts for the construction of residential pools or home-improvement contracts. The informational statement must be entitled a "Notice to the Owner" and must include, without limitation:
(a) An explanation in easily understandable language of the laws in this state regarding mechanics' and materialmen's liens; and
(b) A list of actions that knowledgeable and prudent residential owners consider at the time they enter into a contract for the construction of a residential pool or a home-improvement contract to protect themselves and their property during the course of such a business transaction.
2. A contractor who is engaging in preliminary discussions with a potential customer regarding a contract for the construction of a residential pool or a home-improvement contract shall, before entering such a contract:
(a) Provide the owner of the residence or his designated agent with a copy of the notice adopted for this purpose by the board pursuant to subsection 1; and
(b) Encourage the customer to read the notice before entering into any such contract.
3. As used in this section, "home-improvement contract" means a contract between a contractor and an owner or tenant of real property for work upon a single-family residence, or the land adjacent thereto, for repairing, remodeling, altering, converting, modernizing or adding to the residence or land, including, without limitation, construction, erection, replacement or improvement of driveways, terraces, patios, hot tubs, awnings, storm windows, landscaping, fences, porches, garages, fallout shelters and basements, where the aggregate price of all such contracts between the contractor and the owner or tenant, including labor, services and materials to be furnished by the contractor, exceeds $1,000.
Sec. 6 The amendatory provisions of this act do not apply to offenses that are committed before October 1, 1997.
Sec. 7 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.