Lobbyist calls construction defects reform inadequate

The legislation intended to start cleaning up Nevada's construction defects law hit a snag Friday when the lobbyist for the Nevada Associated General Contractors said Assembly Bill 401 is "inadequate."

"In my opinion this will impede efforts to get something meaningful in 2013," John Madole told members of the Assembly Ways and Means Committee. "People will come forward and say we fixed this problem. This will not fix the problem. This is window dressing."

The bill makes incremental changes to existing law to try limit meritless claims. Speaker John Oceguera, D-Las Vegas, who sponsored the bill, said the measure makes it clear the court has the power to determine and approve attorney fees in construction defect cases.

"It's not automatic," he said. "It makes crystal clear attorney's fees are only awarded to the prevailing party."

It also changes the statute of limitations, reducing the time someone has to file a claim to three years in the case of a willful deficiency, six years for a nonwillful deficiency in construction. He said that clock starts running upon substantial completion of a house or other building.

Madole, however, said the bill doesn't meet the test of meaningful reform because there are "about 15 things wrong with construction defects."

"The language in this bill would not even make the top five," he said adding that it amounts to "rearranging the deck furniture on the Titanic."

Oceguera said that testimony was "disingenuous." He said he met with Madole and asked for a list of the five most important changes to collective bargaining law.

"The three in this list are the top three you gave to me," Oceguera said. "These are the issues you told me you wanted to work on."

Assembly Minority Leader Pete Goicoechea, R-Eureka, said Madole's testimony had turned him against the bill.

"Given the concerns raised here today, I will have to oppose it," he said.

Goicoechea said after the meeting he hopes when the bill reaches the Senate in the next day or two, they can find a way to strengthen it.

The committee took no action on AB401.