Senate Bill No. 437–Committee on Commerce and Labor

 

CHAPTER..........

 

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:

 

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

    597.715  1.  Any contractor or subcontractor who performs

work for the repair, restoration, improvement or construction of a

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

performed under the direction of a builder who is also the owner of

the property being improved:

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

and

    (b) Meet all applicable requirements imposed pursuant to:

        (1) This chapter;

        (2) Chapter 624 of NRS; and

        (3) Any regulations adopted by the Board,

with respect to contracts for the repair, restoration, improvement or

construction of a residential pool or spa.

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

restoration, improvement or construction of a residential pool or spa

and the work is performed under the direction of a builder who is

also the owner of the property being improved, the owner shall

comply with all state and local laws and ordinances for the

submission of names, licenses and information concerning any

required bonds and insurance with respect to the contractors and

subcontractors working on the project.

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

improvement or construction of a residential pool or spa, regardless

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

supervised and controlled directly by the qualified employee or

qualified officer of the contractor.

    4.  If the repair, restoration, improvement or construction of

a residential pool or spa is performed under the direction of a

builder who is exempt from having to obtain a license as a

contractor because the builder is also the owner of the property

being improved, a person shall not, directly or indirectly, perform

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

assistant or aide to the builder for the purposes of the project,

including, without limitation, any act associated with obtaining

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

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

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

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

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

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

fee.

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

    597.7192  1.  Except as otherwise provided in this section and

NRS 597.7194, a contractor who engages in the repair, restoration,

improvement or construction of a residential pool or spa shall not

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

owner of a bonding company, finance company, or any other

corporation or business entity who cosigns, underwrites, obtains a

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

finance the repair, restoration, improvement or construction of a

residential pool or spa.

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

from owning, holding or possessing, either directly or indirectly

through a mutual fund or any other financial arrangement or

investment plan, any stocks or other securities issued by a

company, corporation or business entity described in subsection 1

if:

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

public through a securities exchange; and

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

interest in the company, corporation or business entity.

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

 

²⁰~~~~~⁰³