SB 50 — RIGHT TO REPAIR ACT

SENATEAN JUDICIARYACT COMMITTEERELATING SUBSTITUTETO FORCONSTRUCTION; SENATE BILL 50 56TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2023 This document may incorporate amendments proposed by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

The document is a tool to show amendments in context and cannot be used for the purpose of adding amendments to legislation.

h AN ACT g o RELATING TO CONSTRUCTION;

t4 hr g e i k h r i s BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

h , t, SECTION 1.

[NEW MATERIAL ] SHORT TITLE.--This act may be e u g e b l e e h cited as the "Right to Repair Act".

n d d i = = o h SECTION 2.

[NEW MATERIAL] DEFINITIONS.--As used in the l ] b ,d i a º e Right to Repair Act:

r i = r t e w d m a n o A.

"construction defect" means a deficiency in the dconstruction mof :a dwelling that is the result of a failure to exercise that degree of skill a reasonably prudent person skilled in such work would exercise in such circumstances;

b e d s º o t n = .225207.4AIC March 17, 2023 (1:37pm) s k m e e a n e d r e l u [ A d SJC/SB 50 construction of a dwelling that is the result of a failure to exercise that degree of skill a reasonably prudent person skilled in such work would exercise in such circumstances;

"dwelling" means a HJCº newly constructed»HJCconstructed single family housing unit designed for residential use.

hSJC/SB 50 Page 1 E.

"purchaser" means a person or entity who was the g o original purchaser or subsequent owner of a dwelling;

t hr g e i k F.

"reasonable detail" includes all of the h r i s following:

h5 , t, (1) an itemized list that describes each e u g e b l e e h alleged construction defect;

and n d d i = = o h (2) the street address of the dwelling where l ] b ,d i a º e the alleged construction defect is observed and the location in r i = r t e w d m a n o the dwelling that is the subject of the notice;

and dG. m :

b e d s º o t n = .225207.4AIC March 17, 2023 (1:37pm) s k m e - 2 - e a n e d r e l u [ A d SJC/SB 50 G.

[NEW MATERIAL ] NOTICE AND RIGHT TO REPAIR.-- A.

HJCºA»HJCExcept HJCºExcept with respect to claims for alleged construction defects involving an immediate threat to the life or safety of persons occupying a dwelling, rendering a dwelling uninhabitable or in which the seller, after notice from the purchaser pursuant to this subsection, refused to make a repair under any applicable express warranty, a»HJCa purchaser shall first comply with the provisions of this section before filing a dwelling action.

A purchaser shall give written notice by HJCºcertified mail, return receipt requested,»HJC HJCº the United States postal service with delivery confirmation or electronic means»HJCmeans, to the seller specifying the reasonable detail of each alleged defect.

A seller who receives notice pursuant to this subsection shall promptly forward a copy of h the notice to the last known SJC/SB 50 Page 2 address of each construction g o professional that the seller reasonably believes is responsible t hr g e i k for an alleged defect specified in the notice.

The seller's h r i s notice to each construction professional may be delivered by h , t, electronic 5 means.

e u g e b l B.

Once a seller receives notice pursuant to this e e h n d d i = = o h section, the notice does not constitute notice of a claim or l ] b ,d i a º e occurrence as defined by the New Mexico Insurance Code or an rinsurance ipolicy =to rtrigger tnotice erequirements wto dthe insuranceseller's policyliability tocarrier, triggeras the notice requirementsis intended to allow the seller'spurchaser mand aseller nan oopportunity dto mamicably :resolve any claimed defect issues without the need for formal arbitration or legal proceedings.

b e d s º o t n = .225207.4AIC March 17, 2023 (1:37pm) s k m e - 3 - e a n e d r e l u [ A d SJC/SB 50 liability carrier, as the notice is intended to allow the purchaser and seller an opportunity to amicably resolve any claimed defect issues without the need for formal arbitration or legal proceedings.

The seller and the seller's construction professional shall provide reasonable notice to the purchaser SJC/SB 50 Page 3 before conducting the inspection.

The h inspection shall be conducted at a reasonable time.

The seller g o and the seller's construction professional may use reasonable t hr g e i k measures, including testing, to determine the nature and cause h r i s of each 5 alleged construction defect and the nature and extent h , t, of any repairs or replacements necessary to remedy each alleged e u g e b l e e h construction defect.

The seller's construction professional n d d i = = o h shall restore the dwelling within sixty days of the testing.

l ] b ,d i a º e D.

Within sixty days after receipt of the notice r i = r t e w d provided for in Subsection A of this section, the seller shall msend to the purchaser, by certified mail, return receipt requested, a nwritten oresponse dto mthe :purchaser's notice.

b e d s º o t n = .225207.4AIC March 17, 2023 (1:37pm) s k m e - 4 - e a n e d r e l u [ A d SJC/SB 50 send to the purchaser, by certified mail, return receipt requested, a written response to the purchaser's notice.

A written offer to repair or replace pursuant to Paragraph (1) of Subsection D of this section shall describe in reasonable detail all repairs or replacements SJC/SB 50 Page 4 that the seller and the seller's construction professional intend to make or h provide to the dwelling and a reasonable estimate of the date g o by which the repairs or replacements will be made.

This t hr g e subsection does not prohibit the seller 5 from offering monetary i k h r i s compensation or other consideration instead of or in addition h , t, to a repair or replacement.

e u g e b l F.

The purchaser shall allow the seller or the e e h n d d i seller's construction professional the opportunity to make =repairs =or oreplacements hof leach ]alleged bconstruction ,ddefect iunless athe ºpurchaser ehas repairsrejected in writing or replacementsby ofelectronic eachmeans allegedthe constructionseller's defect.offer to repair or replace.

rIf ithe =purchaser rreasonably trejects ethe wseller's doffer, G.the purchaser has complied with the requirements of this section and may initiate a dwelling action.