Nevada 2019 Regular Session Status: Enacted

AB 421 — Revises provisions relating to construction. (BDR 3-841)

Last action — Chapter 361.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 25, 2019. Enacted.

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Advancing 50% · moderate confidence

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High

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  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

AN ACT relating to construction; revising provisions relating to the information required to be included in a notice of a constructional defect; removing provisions requiring the presence of an expert during an inspection of an alleged constructional defect; establishing provisions relating to a claimant pursuing a claim under a builder's warranty; removing certain provisions governing the tolling of statutes of limitation and repose regarding actions for constructional defects; revising provisions relating to the recovery of damages proximately caused by a constructional defect; increasing the period during which an action for the recovery of certain damages may be commenced; revising the prohibition against a unit-owners' association pursuing an action for a constructional defect unless the action pertains exclusively to the common elements of the association; and providing other matters properly relating thereto.

Bill Text

What changed in the latest version

608 added · 619 removed

608 line(s) added, 619 removed.

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(Reprinted with amendments adopted on May 24, 2019) THIRD REPRINT A.B.
Assembly Bill No.
421 ASSEMBLY B ILLN O.
421–Committee on Judiciary CHAPTER..........
421–C OMMITTEE ON JUDICIARY M ARCH 25, 2019 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to construction.
(BDR 3-841) 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.
revising the prohibition against a unit- owners’ association pursuing an action for a constructional defect unless the action pertains exclusively to the common elements of the association;
revising the prohibition against a unit-owners’ association pursuing an action for a constructional defect unless the action pertains exclusively to the common elements of the association;
complaint to add a cause of action for a constructional defect against a contractor, subcontractor, supplier or design professional, the claimant:
Existing law provides that before a claimant commences an action or amends a complaint to add a cause of action for a constructional defect against a contractor, written notice to the contractor;
(1) is required to give written notice to the contractor;
and (2) if the contractor is no longer licensed ore acting as a contractor in this State, is authorized to give notice to any subcontractor, supplier or design professional known to the claimant who may be responsible for the constructional defect.
and (2) if the contractor is no longer licensed or acting as a contractor in this State, is authorized to give notice to any subcontractor, supplier or design professional known to the claimant who may be responsible for specific detail each defect, damage and injury to each residence or appurtenancey in that is the subject of the claim.
Existing law also requires that such a notice identify in specific detail each defect, damage and injury to each residence or appurtenance that is the subject of the claim.
(NRS 40.645) Section 2 of this bill instead requires - *AB421_R3* – 2 – that such a notice specify in reasonable detail the defects or any damages or injuries to each residence or appurtenance that is the subject of the claim.
(NRS 40.645) Section 2 of this bill instead requires to each residence or appurtenance that is the subject of the claim.damages or injuries Existing law requires that after notice of a constructional defect is given by a claimant to a contractor, subcontractor, supplier or design professional, the claimant and, if the notice includes an expert opinion concerning the alleged constructional defect, the expert or his or her representative with knowledge of the alleged defect must:
Existing law requires that after notice of a constructional defect is given by a claimant to a contractor, subcontractor, supplier or design professional, the claimant and, if the notice includes an expert opinion concerning the alleged constructional defect, the expert or his or her representative with knowledge of the alleged defect must:
Existing law provides that if a residence or appurtenance that is the subject of a claim is covered by a homeowner’s warranty purchased by or on behalf of the claimant:
Existing law provides that if a residence or appurtenance that is the subject of a claim is covered by a homeowner’s warranty purchased by or on behalf of the defect or pursuing a claim for a constructional defect unless the claimant hasal submitted a claim under the homeowner’s warranty and the insurer has denied the claim;
(1) the claimant is prohibited from sending notice of a constructional defect or pursuing a claim for a constructional defect unless the claimant has submitted a claim under the homeowner’s warranty and the insurer has denied the claim;
and (2) notice of a constructional defect may only include claims that were denied by the insurer.
and (2) notice of a constructional defect may only include claims that were and section 1.5 of this bill replaces the term “homeowner’s warranty” withovisions, “builder’s warranty” and clarifies that such a warranty is not a type of insurance.
(NRS 40.650) Section 4 of this bill removes such provisions, and section 1.5 of this bill replaces the term “homeowner’s warranty” with - 80th Session (2019) – 2 – “builder’s warranty” and clarifies that such a warranty is not a type of insurance.
Section 4 provides that if a residence or appurtenance that is the subject of a claim is covered by a builder’s warranty, the claimant is required to diligently pursue a claim under the builder’s warranty.
is covered by a builder’s warranty, the claimant is required to diligently pursue aim claim under the builder’s warranty.
Existing law also provides that if a residence or appurtenance that is the subject of a claim is covered by a homeowner’s warranty purchased by or on behalf of the claimant, statutes of limitation or repose are tolled from the time the claimant submits a claim under the homeowner’s warranty until 30 days after the insurer provision.e claim, in whole or in part.
Existing law also provides that if a residence or appurtenance that is the subject of a claim is covered by a homeowner’s warranty purchased by or on behalf of the claimant, statutes of limitation or repose are tolled from the time the claimant submits a claim under the homeowner’s warranty until 30 days after the insurer rejects the claim, in whole or in part.
(NRS 40.650) Section 4 removes this Existing law establishes the damages proximately caused by a constructional defect that a claimant is authorized to recover, including additional costs reasonably incurred by the claimant for constructional defects proven by the claimant.
(NRS 40.650) Section 4 removes this provision.
(NRS 40.655) Section 5 of this bill removes the requirement that such costs be limited to constructional defects proven by the claimant.
Existing law establishes the damages proximately caused by a constructional defect that a claimant is authorized to recover, including additional costs reasonably incurred by the claimant for constructional defects proven by the claimant.
Existing law prohibits an action for the recovery of certain damages against the owner, occupier or any person performing or furnishing the design, planning, supervision or observation of construction, or the construction of an improvement completion of such an improvement.
(NRS 40.655) Section 5 of this bill removes the requirement that such costs be limited to consExisting law prohibits an action for the recovery of certain damages against the owner, occupier or any person performing or furnishing the design, planning, supervision or observation of construction, or the construction of an improvement to real property, from being commenced more than 6 years after the substantial completion of such an improvement.
Existing law prohibits a unit-owners’ association from instituting, defending or intervening in litigation or in arbitration, mediation or administrative proceedings in its own name on behalf of itself or units’ owners relating to an action for a (NRS 116.3102) Section 8 of this bill requires that such an action for alements.
Existing law prohibits a unit-owners’ association from instituting, defending or intervening in litigation or in arbitration, mediation or administrative proceedings in constructional defect unless the action pertains exclusively to common elements.
constructional defect pertain to:
(NRS 116.3102) Section 8 of this bill requires that such an action for a constructional defect pertain to:
or (3) any portion of the common-interest community that the association does not own but has an obligation to maintain, repair, insure or replace because the governing documents - *AB421_R3* – 3 – of the association expressly make such an obligation the responsibility of the association.
or (3) any portion of the common-interest community that the association does not own but has an obligation to maintain, repair, insure or replace because the governing documents of the association expressly make such an obligation the responsibility of the association.
Existing law authorizes a unit-owners’ association to enter the grounds of a unit to conduct certain maintenance or remove or abate a public nuisance, or to enter the grounds or interior of a unit to abate a water or sewage leak or take certain other provides that such provisions do not give rise to any rights or standing for a claim for a constructional defect.
Existing law authorizes a unit-owners’ association to enter the grounds of a unit to conduct certain maintenance or remove or abate a public nuisance, or to enter the grounds or interior of a unit to abate a water or sewage leak or take certain other actions in certain circumstances.
(NRS 116.310312) Section 8.5 of this bill provides that such provisions do not give rise to any rights or standing for a claim for a constructional defect.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
(Deleted by amendment.) Sec.
(Deleted by amendment.) - 80th Session (2019) – 3 – Sec.
Includes a warranty contract issued by or on behalf of a contractor whose liability pursuant to the warranty contract is subsequently insured by a risk retention group that operates in compliance with chapter 695E of NRS and insures all or any part of the liability of a contractor for the cost to repair a constructional defect in a residence.
Includes a warranty contract issued by or on behalf of a subsequently insured by a risk retention group that operates in compliance with chapter 695E of NRS and insures all or any part of the liability of a contractor for the cost to repair a constructional defect in a residence.
and (b) May give written notice by certified mail, return receipt requested, to any subcontractor, supplier or design professional known to the claimant who may be responsible for the constructional defect, if the claimant knows that the contractor is no - *AB421_R3* – 4 – longer licensed in this State or that the contractor no longer acts as a contractor in this State.
and (b) May give written notice by certified mail, return receipt known to the claimant who may be responsible for theprofessional constructional defect, if the claimant knows that the contractor is no longer licensed in this State or that the contractor no longer acts as a contractor in this State.
[, including, without limitation, the exact location of each such defect, damage and injury;] (c) Describe in reasonable detail the cause of the defects if the cause is known and the nature and extent that is known of the damage or injury resulting from the defects;
[, including, without limitation, the exact location of each such defect, damage and injury;] - 80th Session (2019) – 4 – (c) Describe in reasonable detail the cause of the defects if the cause is known and the nature and extent that is known of the damage or injury resulting from the defects;
If a notice is sent on behalf of a homeowners’ association, the statement required by this paragraph must be signed under penalty of perjury by a member of the executive board or an officer of the homeowners’ association.
If a notice is sent on behalf of a homeowners’ association, the statement required by this paragraph must be signed under penalty homeowners’ association.f the executive board or an officer of the 3.
3.
A representative of a homeowners’ association may send notice pursuant to this section on behalf of an association if the representative is acting within the scope of the representative’s duties pursuant to chapter 116 or 117 of NRS.
A representative of a homeowners’ association may send notice pursuant to this section on behalf of an association if the duties pursuant to chapter 116 or 117 of NRS.the representative’s 4.
4.
Notice is not required pursuant to this section before com(a) The contractor, subcontractor, supplier or design professional has filed an action against the claimant;
Notice is not required pursuant to this section before commencing an action if:
(a) The contractor, subcontractor, supplier or design professional has filed an action against the claimant;
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After notice of a constructional defect is given pursuant to NRS 40.645, before a claimant may commence an action or amend a complaint to add a cause of action for a constructional defect against a contractor, subcontractor, supplier or design professional, the claimant must:
After notice of a constructional defect is given pursuant to NRS 40.645, before a claimant may commence an action or amend a complaint to add a cause of action for a constructional defect against a contractor, subcontractor, supplier or des(a) Allow an inspection of the alleged constructional defect to be conducted pursuant to NRS 40.6462;
(a) Allow an inspection of the alleged constructional defect to be conducted pursuant to NRS 40.6462;
(b) Be present or have a representative of the claimant present at an inspection conducted pursuant to NRS 40.6462 and , to the extent possible, reasonably identify the [exact location of each alleged constructional defect] proximate locations of the defects, damages or injuries specified in the notice ;
(b) Be present or have a representative of the claimant present at an inspection conducted pursuant to NRS 40.6462 and , to the extent possible, reasonably identify the [exact location of each - *AB421_R3* – 5 – alleged constructional defect] proximate locations of the defects, damages or injuries specified in the notice ;
[and, if the notice includes an expert opinion concerning the alleged constructional defect, the expert, or a representative of the expert who has knowledge of the alleged constructional defect, must also be present at the inspection and identify the exact location of each alleged constructional defect for which the expert provided an opinion;] and - 80th Session (2019) – 5 – (c) Allow the contractor, subcontractor, supplier or design professional a reasonable opportunity to repair the constructional defect or cause the defect to be repaired if an election to repair is made pursuant to NRS 40.6472.
[and, if the notice includes an expert opinion concerning the alleged constructional defect, the expert, or a representative of the expert who has knowledge of the alleged constructional defect, must also be present at the inspection and identify the exact location of each alleged constructional defect for which the expert provided an opinion;] and (c) Allow the contractor, subcontractor, supplier or design professional a reasonable opportunity to repair the constructional defect or cause the defect to be repaired if an election to repair is made pursuant to NRS 40.6472.
or (b) If dismissal of the action would prevent the claimant from filing another action because the action would be procedurally barred by the statute of limitations or statute of repose, the court shall stay the proceeding pending compliance with those provisions by the claimant.
or filing another action because the action would be procedurallyrom barred by the statute of limitations or statute of repose, the court shall stay the proceeding pending compliance with those provisions by the claimant.
If a claimant unreasonably rejects a reasonable paragraph (b) of subsection 2 of NRS 40.6472 and thereafteruant to commences an action governed by NRS 40.600 to 40.695, inclusive, the(a) Deny the claimant’s attorney’s fees and costs;
If a claimant unreasonably rejects a reasonable written offer of settlement made as part of a response pursuant to paragraph (b) of subsection 2 of NRS 40.6472 and thereafter commences an action governed by NRS 40.600 to 40.695, inclusive, the court in which the action is commenced may:
(a) Deny the claimant’s attorney’s fees and costs;
(b) Make an offer of settlement;
or (e) Participate in mediation, the limitations on damages and defenses to liability provided in NRS 40.600 to 40.695, inclusive, do not apply and the claimant may commence an action or amend a complaint to add a cause of action - *AB421_R3* – 6 – for a constructional defect without satisfying any other requirement of NRS 40.600 to 40.695, inclusive.
or (e) Participate in mediation, the limitations on damages and defenses to liability provided in NRS 40.600 to 40.695, inclusive, do not apply and the claimant may commence an action or amend a complaint to add a cause of action for a constructional defect without satisfying any other requirement of NRS 40.600 to 40.695, inclusive.
If a residence or appurtenance that is the subject of the claim is covered by a [homeowner’s] builder’s warranty [that is purchased by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive:
If a residence or appurtenance that is the subject of the claim is covered by a [homeowner’s] builder’s warranty [that is purchased - 80th Session (2019) – 6 – by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive:
(c) If coverage under a homeowner’s warranty is denied by an insurer in bad faith, the homeowner and the contractor, subcontractor, supplier or design professional have a right of action for the sums that would have been paid if coverage had been provided, plus reasonable attorney’s fees and costs.
insurer in bad faith, the homeowner and the contractor,ed by an subcontractor, supplier or design professional have a right of action for the sums that would have been paid if coverage had been provided, plus reasonable attorney’s fees and costs.
(d) Statutes of limitation or repose applicable to a claim based on a constructional defect governed by NRS 40.600 to 40.695, inclusive, are tolled from the time notice of the claim under the homeowner’s warranty is submitted to the insurer until 30 days after the insurer rejects the claim, in whole or in part, in writing.] , a warranty.shall diligently pursue a claim under the builder’s 4.
(d) Statutes of limitation or repose applicable to a claim based on a constructional defect governed by NRS 40.600 to 40.695, inclusive, are tolled from the time notice of the claim under the homeowner’s warranty is submitted to the insurer until 30 days after the insurer rejects the claim, in whole or in part, in writing.] , a claimant shall diligently pursue a claim under the builder’s warranty.
Nothing in this section prohibits an offer of judgment NRS 40.652.
4.
Rule 68 of the Nevada Rules of Civil Procedure or Sec.
Nothing in this section prohibits an offer of judgment pursuant to Rule 68 of the Nevada Rules of Civil Procedure or NRS 40.652.
Sec.
(a) The reasonable cost of any repairs already made that were necessary and of any repairs yet to be made that are necessary to cure any constructional defect that the contractor failed to cure and the reasonable expenses of temporary housing reasonably necessary during the repair;
necessary and of any repairs yet to be made that are necessary to cure any constructional defect that the contractor failed to cure and the reasonable expenses of temporary housing reasonably necessary during the repair;
- *AB421_R3* – 7 – (e) Any additional costs reasonably incurred by the claimant , [for constructional defects proven by the claimant,] including, but not limited to, any costs and fees incurred for the retention of experts to:
(e) Any additional costs reasonably incurred by the claimant , [for constructional defects proven by the claimant,] including, but - 80th Session (2019) – 7 – not limited to, any costs and fees incurred for the retention of experts to:
2.
to 40.695, inclusive, the claimant may not recover from the 40.600 contractor, as a result of the constructional defect, any damages other than damages authorized pursuant to NRS 40.600 to 40.695, inclusive.
If a contractor complies with the provisions of NRS 40.600 to 40.695, inclusive, the claimant may not recover from the contractor, as a result of the constructional defect, any damages other than damages authorized pursuant to NRS 40.600 to 40.695, inclusive.
40.687.5.Notwithstanding any other provision of law:llows:
Sec.
5.5.
NRS 40.687 is hereby amended to read as follows:
40.687 Notwithstanding any other provision of law:
A [claimant shall, within 10 days after commencing an about any homeowner’s warranty that is applicable to the claim.ormation 2.
A [claimant shall, within 10 days after commencing an action against a contractor, disclose to the contractor all information about any homeowner’s warranty that is applicable to the claim.
The] contractor shall, no later than 10 days after a response is made pursuant to this chapter, disclose to the claimant any information about insurance agreements that may be obtained by discovery pursuant to rule 26(b)(2) of the Nevada Rules of Civil Procedure.
2.
The] contractor shall, no later than 10 days after a response is made pursuant to this chapter, disclose to the claimant any information about insurance agreements that may be obtained by Procedure.
- *AB421_R3* – 8 – [4.] 3.
- 80th Session (2019) – 8 – [4.] 3.
For the purposes of this section, “information about insurance agreements” is limited to any declaration sheets, endorsements and contracts of insurance issued to the contractor from the commencement of construction of the residence of the claimant to the date on which the request for the information is made and does not include information concerning any disputes between the contractor and an insurer or information concerning any reservation of rights by an insurer.
For the purposes of this section, “information about insurance agreements” is limited to any declaration sheets, endorsements and contracts of insurance issued to the contractor from the commencement of construction of the residence of the claimant to the date on which the request for the information is made and does not include information concerning any disputes reservation of rights by an insurer.r or information concerning any Sec.
Sec.
(b) Injury to real or personal property caused by any such def(c) Injury to or the wrongful death of a person caused by any such deficiency.
(b) Injury to real or personal property caused by any such deficiency;
may be commenced against the owner, occupier or any personn action performing or furnishing the design, planning, supervision or observation of construction, or the construction of an improvement to real property at any time after the substantial completion of such an improvement, for the recovery of damages for any act of fraud in causing a deficiency in the design, planning, supervision or observation of construction or the construction of such an improvement.
or (c) Injury to or the wrongful death of a person caused by any such deficiency.
2.
Except as otherwise provided in this subsection, an action may be commenced against the owner, occupier or any person performing or furnishing the design, planning, supervision or improvement to real property at any time after the substantial an completion of such an improvement, for the recovery of damages for any act of fraud in causing a deficiency in the design, planning, supervision or observation of construction or the construction of such an improvement.
(a) To a claim for indemnity or contribution.
- 80th Session (2019) – 9 – (a) To a claim for indemnity or contribution.
- *AB421_R3* – 9 – (1) The owner or keeper of any hotel, inn, motel, motor court, boardinghouse or lodging house in this State on account of his or her liability as an innkeeper.
(1) The owner or keeper of any hotel, inn, motel, motor court, boardinghouse or lodging house in this State on account of his or her liability as an innkeeper.
(a) Shall adopt and, except as otherwise provided in the bylaws, may amend bylaws and may adopt and amend rules and regulations.
may amend bylaws and may adopt and amend rules and regulations.aws, (b) Shall adopt and may amend budgets in accordance with the requirements set forth in NRS 116.31151, may collect assessments for common expenses from the units’ owners and may invest funds of the association in accordance with the requirements set forth in NRS 116.311395.
(b) Shall adopt and may amend budgets in accordance with the requirements set forth in NRS 116.31151, may collect assessments for common expenses from the units’ owners and may invest funds of the association in accordance with the requirements set forth in NRS 116.311395.
The association may not institute, defend or intervene in litigation or in arbitration, mediation or administrative proceedings in its own name on behalf of itself or units’ owners with respect to an action for a constructional defect pertains [exclusively] to [common] :clusive, unless the action (1) Common elements [.] ;
The association may not institute, defend or intervene in litigation or in arbitration, mediation or administrative proceedings in its own name on behalf of itself or units’ owners with respect to an action for a constructional defect pursuant to NRS 40.600 to 40.695, inclusive, unless the action pertains [exclusively] to [common] :
association owns;
(1) Common elements [.] ;
orn of the common-interest community that the (3) Any portion of the common-interest community that the association does not own but has an obligation to maintain, repair, insure or replace because the governing documents of the association expressly make such an obligation the responsibility of the association.
(2) Any portion of the common-interest community that the associ(3) Any portion of the common-interest community that the association does not own but has an obligation to maintain, repair, insure or replace because the governing documents of the association expressly make such an obligation the responsibility of the association.
(g) May cause additional improvements to be made as a part of the common elements.
- 80th Session (2019) – 10 – (g) May cause additional improvements to be made as a part of the common elements.
- *AB421_R3* – 10 – (1) Common elements in a condominium or planned community may be conveyed or subjected to a security interest only pursuant to NRS 116.3112;
(1) Common elements in a condominium or planned community may be conveyed or subjected to a security interest only pursuant to NRS 116.3112;
and (2) Part of a cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only pursuant to NRS 116.3112.
and (2) Part of a cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only pursuant to NRS(i) May grant easements, leases, licenses and concessions through or over the common elements.
(i) May grant easements, leases, licenses and concessions through or over the common elements.
(n) May impose reasonable charges for the preparation and recordation of any amendments to the declaration or any statements the amounts authorized by NRS 116.4109, for preparing and exceed furnishing the documents and certificate required by that section.
(n) May impose reasonable charges for the preparation and recordation of any amendments to the declaration or any statements of unpaid assessments, and impose reasonable fees, not to exceed the amounts authorized by NRS 116.4109, for preparing and fur(o) May provide for the indemnification of its officers andion.
executive board and maintain directors and officers liabilityd insurance.
executive board and maintain directors and officers liability insurance.
(s) May direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or other thoroughfare within the common-interest community in violation of the governing documents.
(s) May direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or - 80th Session (2019) – 11 – other thoroughfare within the common-interest community in violation of the governing documents.
In addition to complying with the requirements of NRS 487.038 and any requirements in the governing documents, if a vehicle is improperly parked as described in this paragraph, the association must post written notice in a conspicuous place on the vehicle or provide oral or written notice to - *AB421_R3* – 11 – the owner or operator of the vehicle at least 48 hours before the association may direct the removal of the vehicle, unless the vehicle:
In addition to complying with the requirements of NRS 487.038 and any requirements in the governing documents, if a vehicle is improperly parked as described in this paragraph, the association must post written notice in a conspicuous place on the vehicle or provide oral or written notice to the owner or operator of the vehicle at least 48 hours before the association may direct the removal of the vehicle, unless the vehicle:
(1) Is blocking a fire hydrant, fire lane or parking space designated for the handicapped;
(1) Is blocking a fire hydrant, fire lane or parking space designa(2) Poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community.
or (2) Poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community.
or enforcement action.
or (d) It is not in the association’s best interests to pursue an enforcement action.
the association’s best interests to pursue an 4.
4.
Notwithstanding any provision of this chapter or the governing documents to the contrary, an association may not impose any assessment pursuant to this chapter or the governing documents on the owner of any property in the common-interest community that is exempt from taxation pursuant to NRS 361.125.
Notwithstanding any provision of this chapter or the governing documents to the contrary, an association may not impose any assessment pursuant to this chapter or the governing documents on the owner of any property in the common-interest community - 80th Session (2019) – 12 – that is exempt from taxation pursuant to NRS 361.125.
- *AB421_R3* – 12 – Sec.
Sec.
NRS 116.310312 is hereby amended to read as follows:
NRS 116.310312 is hereby amended to read as fol116.310312 1.
116.310312 1.
(a) Maintain the exterior of the unit in accordance with the standards set forth in the governing documents, including, without snow removal.ny provisions governing maintenance, standing water or (b) Remove or abate a public nuisance on the exterior of the unit which:(1) Is visible from any common area of the community or public streets;
standards set forth in the governing documents, including, without limitation, any provisions governing maintenance, standing water or snow removal.
(b) Remove or abate a public nuisance on the exterior of the unit which:
(1) Is visible from any common area of the community or public streets;
(a) A unit is vacant;
- 80th Session (2019) – 13 – (a) A unit is vacant;
and (c) The association or its employee, agent or community manager mails a notice of the intent of the association, including its employees, agents and community manager, to maintain the exterior of the unit or abate a public nuisance, as described in subsection 2, by certified mail to each holder of a recorded security interest encumbering the interest of the unit’s owner, at the address of the - *AB421_R3* – 13 – holder that is provided pursuant to NRS 657.110 on the Internet website maintained by the Division of Financial Institutions of the Department of Business and Industry, the association, including its employees, agents and community manager, may enter the grounds of the unit to maintain the exterior of the unit or abate a public nuisance, as described in subsection 2, if the unit’s owner refuses or fails to do so.
and (c) The association or its employee, agent or community manager mails a notice of the intent of the association, including its employees, agents and community manager, to maintain the exterior of the unit or abate a public nuisance, as described in subsection 2, by certified mail to each holder of a recorded security interest holder that is provided pursuant to NRS 657.110 on the Internet the website maintained by the Division of Financial Institutions of the Department of Business and Industry, the association, including its employees, agents and community manager, may enter the grounds of the unit to maintain the exterior of the unit or abate a public nuisance, as described in subsection 2, if the unit’s owner refuses or fails to do so.
(b) After providing the unit’s owner with notice but before a hearing in accordance with the provisions of NRS 116.31031:
(b) After providing the unit’s owner with notice but before a hearin(1) Removedanceanyth tfurniture,onfixtures,11appliances and components of the unit, including, without limitation, flooring, baseboards and drywall, that were damaged as a result of water or mold damage resulting from a water or sewage leak to the extent such removal is reasonably necessary because water or mold damage threatens the health or safety of the residents of the common-interest community, results in blighting or deterioration of the unit or the surrounding area and adversely affects the use and enjoyment of nearby units, if the unit’s owner refuses or fails to remediate or remove the water or mold damage.
(1) Remove any furniture, fixtures, appliances and components of the unit, including, without limitation, flooring, baseboards and drywall, that were damaged as a result of water or such removal is reasonably necessary because water or moldxtent damage threatens the health or safety of the residents of the the unit or the surrounding area and adversely affects the use andf enjoyment of nearby units, if the unit’s owner refuses or fails to remediate or remove the water or mold damage.
(2) Remediate or remove any water or mold damage in the unit resulting from the water or sewage leak to the extent such remediation or removal is reasonably necessary because the water or - 80th Session (2019) – 14 – mold damage threatens the health or safety of the residents of the common-interest community, results in blighting or deterioration of the unit or the surrounding area and adversely affects the use and enjoyment of nearby units, if the unit’s owner refuses or fails to remediate or remove the water or mold damage.
(2) Remediate or remove any water or mold damage in the unit resulting from the water or sewage leak to the extent such remediation or removal is reasonably necessary because the water or mold damage threatens the health or safety of the residents of the common-interest community, results in blighting or deterioration of the unit or the surrounding area and adversely affects the use and enjoyment of nearby units, if the unit’s owner refuses or fails to remediate or remove the water or mold damage.
After the association has provided the unit’s owner with notice and an opportunity for a hearing in the manner provided in NRS 116.31031, the association may order that the costs of any maintenance or abatement or the reasonable costs of remediation or removal conducted pursuant to subsection 2, 3 or 4, including, without limitation, reasonable inspection fees, notification and collection costs and interest, be charged against the unit.
After the association has provided the unit’s owner with notice and an opportunity for a hearing in the manner provided in NRS 116.31031, the association may order that the costs of any maintenance or abatement or the reasonable costs of remediation or without limitation, reasonable inspection fees, notification and collection costs and interest, be charged against the unit.
The - *AB421_R3* – 14 – association shall keep a record of such costs and interest charged against the unit and has a lien on the unit for any unpaid amount of the charges.
The association shall keep a record of such costs and interest charged against the unit and has a lien on the unit for any unpaid amount of the charges.
Notwithstanding the federal regulations, the period of priority of the lien must not be less than the 6 months immediately preceding the institution of an action to enforce the lien.
Notwithstanding the federal regulations, the period of priority of the lien must not be less than enforce the lien.diately preceding the institution of an action to 8.
8.
A person who purchases or acquires a unit at a foreclosure sale pursuant to NRS 40.430 or a trustee’s sale pursuant to NRS 107.080 is bound by the governing documents of the association and shall maintain the exterior of the unit in accordance with the governing documents of the association.
A person who purchases or acquires a unit at a foreclosure sale pursuant to NRS 40.430 or a trustee’s sale pursuant to NRS 107.080 is bound by the governing documents of the association and shall maintain the exterior of the unit in accordance with the removed from a common-interest community in accordance with the governing documents pursuant to this chapter.
Such a unit may only be removed from a common-interest community in accordance with the governing documents pursuant to this chapter.
its directors or members of the executive board, employees, agents, or community manager who enter the grounds or interior of a unit pursuant to this section are not liable for trespass.
9.
10.
Notwithstanding any other provision of law, an association, its directors or members of the executive board, employees, agents or community manager who enter the grounds or interior of a unit pursuant to this section are not liable for trespass.
- 80th Session (2019) – 15 – 10.
and - *AB421_R3* – 15 – (3) On which the owner has failed to pay assessments for more than 60 days.
and (3) On which the owner has failed to pay assessments for more than 60 days.
Sec.
Secs.
9.
9 and 10.
10.
(Deleted by amendment.) Sec.
The provisions of NRS 40.645 and 40.650, as amended by sections 2 and 4 of this act, respectively, apply to a notice of constructional defect given on or after October 1, 2019.
The provisions of NRS 40.645 and 40.650, as amended by sections 2 and 4 of this act, respectively, apply to a not2.
2.
The provisions of NRS 40.647, as amended by section 3 of019.
The provisions of NRS 40.647, as amended by section 3 of this act, apply to an inspection conducted pursuant to NRS 40.6462 on 3.
this act, apply to an inspection conducted pursuant to NRS 40.6462 on or after October 1, 2019.
3.
H - *AB421_R3*
~~~~~ 19 - 80th Session (2019)
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Amendments

3 amendments

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Action History

  1. Chapter 361.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. Senate Amendment Nos. 808 and 963 concurred in. To enrollment.

  5. In Assembly.

  6. From printer. To re-engrossment. Re-engrossed. Third reprint. To Assembly.

  7. From printer. To re-engrossment. Re-engrossed. Second reprint. Read third time. Amended. (Amend. No. 963.) Reprinting dispensed with. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 20, Nays: None, Excused: 1.) To printer.

  8. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 808.) To printer.

  9. From printer. To engrossment. Engrossed. First reprint. To Senate. In Senate. Read first time. Referred to Committee on Judiciary. To committee.

  10. From committee: Amend, and do pass as amended. Declared an emergency measure under the Constitution. Read third time. Amended. (Amend. No. 640.) Dispensed with reprinting. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 27, Nays: 13, Excused: 2.) To printer.

  11. From printer. To committee.

  12. Read first time. Referred to Committee on Judiciary. To printer.

Sponsors

  • Assembly Committee on Judiciary · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Assembly Committee on Judiciary

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance housing labor
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Frequently asked questions

What does AB 421 do?
AN ACT relating to construction; revising provisions relating to the information required to be included in a notice of a constructional defect; removing provisions requiring the presence of an expert during an inspection of an alleged constructional defect; establishing provisions relating to a claimant pursuing a claim under a builder's warranty; removing certain provisions governing the tolling of statutes of limitation and repose regarding actions for constructional defects; revising provisions relating to the recovery of damages proximately caused by a constructional defect; increasing the period during which an action for the recovery of certain damages may be commenced; revising the prohibition against a unit-owners' association pursuing an action for a constructional defect unless the action pertains exclusively to the common elements of the association; and providing other matters properly relating thereto.
Who sponsors AB 421?
AB 421 is sponsored by Assembly Committee on Judiciary.
What is the current status of AB 421?
This bill has been enacted into law. Introduced March 25, 2019. Enacted.
Where can I track AB 421?
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