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Senate Committee Holds
Hearing On S.B. 241

Surprising Twist As Townsend
Resurrects Previous Bill

by Joe Wheeler

More than 300 contractors crammed into a hearing room in the Grant Sawyer Building on March 19 and 20 to hear testimony on SB 241, the Coalition for Fairness in Construction’s "Right to Repair" bill. They were joined by about 25 "Safe Homes Nevada" folks and representatives of various law firms.

Testimony went as expected, with the entire pro-SB 241 testimony coming in at just over an hour.


"Protestors" marched in front of the Grant Sawyer Building in Las Vegas to urge passage of SB 241,
the Coalition for Fairness in Construction's
"Right to Repair" bill. 

Steve Hill, chairman of the Coalition, briefly outlined the need for changes to Chapter 40, the section of Nevada law that deals with construction defects. He was followed by Robert Lewis of Lewis Homes, and Bruce King of Pete King Corporation. All echoed that defect lawsuits are unnecessary, that contractors want the responsibility to repair defects.

Jim Wadhams, SNHBA’ lobbyist, discussed the major provisions of SB 241. The Coalition’s prepared testimony concluded with several homeowners who had their construction problems resolved without a lawsuit.

Attorney Scott Canepa spoke on behalf of the Nevada Trial Lawyers Association, and presented a detailed Powerpoint presentation on the Contractor’s Liability Task Force hearings and recommendations. At one point Mr. Canepa referred to an article in a 2000 issue of Plumbing & Mechanical Magazine about hurricane damage as proof that Nevada contractors aren’t building up to code. As of this writing, there have been no reports of hurricanes in Clark County.


Yellow Shirt Convention
Contractors in favor of the bill and homeowners
against it both wore yellow T-shirts at the hearing. 

Canepa testified that SB 241 should not be passed, and used the phrase, "Morally repugnant" to describe sections that, according to his take on the bill, would force homeowners to actually suffer damage or injury prior to claiming a construction defect.

The only real surprise came at the end of the hearing when Randolph Townsend (R-Reno), chairman of the Senate Commerce & Labor Committee, said he wanted to look at a bill from the 2001 session that dealt with the right to repair. A bill that had been the subject of long and intense debate. A bill that did not pass.

That bill was SB 516.

"The Right to Repair" bill was drafted by the Nevada Subcontractors Association. The bill made it out of Townsend’s Senate committee after several long and intense hearings, and got the nod of the Senate before being buried in the Assembly Judiciary Committee.

Judiciary Committee Chairman Bernie Anderson (D- Sparks) didn’t have much choice in the decision not to do anything with SB 516 since the 120 day deadline was fast approaching and there existed conflicting views from the construction industry on exactly what they wanted to leave in or take out. That’s the kiss of death for a bill as the legislature rushes toward the end of the session, especially a hotly contested bill like SB 516 had been.

One of the most vocal critics of SB 516 was the Nevada State Contractor’s Board. Executive Director Margi Grein testified that board could find itself overwhelmed if SB 516 passed as written. Grein estimated that it would cost $5 million dollars a year for the board to implement the requirements of SB 516.

In the final days of the 2001 session, the text of SB 516 was replaced with different language. Since no agreement could be reached on construction defects, SB 516 was used as a vehicle to pass a bill dealing with design professionals.

On Thursday, March 20, the committee again took up testimony on SB 241, this time with appearances by representatives of the Nevada State Contractor’s Board and Clark County.


Senator Randolph Townsend

SB 516, a bill introduced in 2001 that failed to pass, was mentioned in connection to the role that soils play in the construction defect discussion.

Clark County Building Official Ron Lynn discussed soils analysis and the county’s process for determining suitability for construction.

Margie Grein, executive director of the State Contractor’s Board, questioned whether SB 241's requirement that board investigators examine defect repairs would expose her people to liability beyond the $50,000 cap on municipalities.

On Friday, March 21, the committee passed SB 241. The bill now goes to the full Senate for a vote. If it passes there, it will be referred to the Assembly.

 


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