AB 26 — Revises provisions governing payments from the Recovery Fund by the State Contractors' Board. (BDR 54-237)

A.B.Assembly Bill No.

2626–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

26–COMMITTEE ON C OMMERCE AND LABOR (ON B EHALF OF THE STATE CONTRACTORS ’ BOARD ) PREFILED N OVEMBER 16, 2018 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing payments from the Recovery Fund by the State Contractors’ Board.

(BDR 54-237) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) a residential contractor to pay certain biennial assessments separately in an account referred to as the State“Recovery Contactors’Fund.” Board;Anr the injured person is eligible for recovery from the Recovery Fund if the Board or its designee finds that the injured person suffered actual damages for certain acts or omissions of a residential contractor.

and (2) the Board to account for the injured person is eligible for recovery from the Recovery Fund if the Board or its designee finds that the injured person suffered actual damages for certain acts or omissions of a residential contractor.

Ifqualified aservices, residentialthe contractor entersmust intoprovide a contractwritten withstatement anto ownerthe ofownerfor a residence for notifying the owner of his or her right to recover from the Recovery Fund for any financial damage caused to the owner by the contractor.

The written statement must include certain specific locations in this State at which the owner may contact the - *AB26* – 2 – Board if the owner wishes to obtain information relating to the Recovery Fund.

THEEXPLANATION PEOPLE– OFMatter THEin STATEbolded OFitalics NEVADA,is REPRESENTEDnew; IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sectionmatter 1.between brackets [omitted material] is material to be omitted.

THE PSENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

IN Section 1.

Except as otherwise provided in NRS 624.490 and subsection 2, an injured person is eligible for recovery from the account if the Board or its designee finds that the injured person suffered actual damages as a result of an act or omission of a residential- contractor80th thatSession is(2019) in– violation2 – regulations adopted pursuant thereto.lation of this chapter or the regulations2. adopted pursuant thereto.

2.

(1) Applied for and obtained any building permit for the single-family residence at which the act or omission occurred and for which the injured person wishes to recover actual damages from the account;

orornjured person wishes to recover actual damages from (2) Constructed the residence as the owner-builder of the residence;

- *AB26* – 3 – (f) The injured person is a lien claimant who has not filed a lien in accordance with the provisions of NRS 108.221 to 108.246, inclusive;

or (g) The single-family residence at which the act or omission occurred and for which the injured person wishes to recover actual damages from the account was constructed, remodeled, repaired or improved with the intent of renting, leasing or selling the residence within 1 year after the date of completion of the construction,construction,idence remodeling, repair or improvement.

(a)- The80th amountSession of(2019) actual– damages3 suffered,– but not to exceed [$35,000;] $40,000;

ororctual damages suffered, but not to exceed (b) If a judgment was obtained as set forth in NRS 624.490, the amount of actual damages included in the judgment and remaining unpaid, but not to exceed [$35,000.] $40,000.

7.made against any single contractor must not exceed [$400,000.]s $750,000 or 20 percent of the account balance, as determined on the date the Board approves payment of all the claims, whichever is less.

The amount of recovery from the account based upon claims made against any single contractor must not exceed [$400,000.] $750,000 or 20 percent of the account balance, as determined on the date the Board approves payment of all the claims, whichever is less.

A residential contractor shall notify an owner with whom he or she contracts of the rights of the owner pursuant to - *AB26* – 4 – NRS 624.400 to 624.560, inclusive, including, without limitation, providing a written statement explaining those rights in any agreement or contract for qualified services.

6 RESIDENTIAL CONSTRUCTION RECOVERY FUND 8 Payment may be available from the Recovery Fund if you are damaged financially by a project performed on your residence pursuant to a contract, including construction, remodeling, repair or other improvements, and the damage resulted from certain specified violations of Nevada law by a contractor licensed in this State.

To obtain information relating to the Recovery Fund and filing a claim for recovery from the - 80th Session (2019) – 4 – Recovery Fund, you may contact the State Contractors’ Board .

State Contractors’ Board State Contractors’ Board 9670 Gateway Drive, Suite 100 2310 Corporate Circle, Suite 200 Reno, Nevada 89521 Henderson, Nevada 89074 Telephone num:number:

(775) 688-1Telephone688-1141 Telephone number:

H~~~~~ 19 - *AB26*80th Session (2019)