AB 440 — Revises provisions relating to construction. (BDR 54-1108)

(ReprintedAssembly withBill amendmentsNo. adopted on May 22, 2019) SECOND REPRINT A.B.

440440–Committee Aon SSEMBLYJudiciary BILLCHAPTER.......... N O.

440–C OMMITTEE ON JUDICIARY M ARCH 25, 2019 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to construction.

(BDR 54-1108) 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.

LegExistingLegislative lawCounsel’s providesDigest: that certain acts or omissions constitute cause for disciplinary action by the State Contractors’ Board.

(NRSExisting 624.301,law 624.3016)provides Sectionthat 1certain ofacts thisor billomissions requiresconstitute acause licenseefor whodisciplinary buildsaction aby new, single-family residence to provide to the purchaserState ofContractors’ theBoard. new residence a disclosure containing certain information and a builder’s warranty that meets certain criteria.

(NRS 624.301, 624.3016) Section 1.71 of this bill requires a licensee who builds a new, single-family residence to provide to the purchaser of the new residence a disclosure containing certain bill provides that the failure of a licensee to provide a builder’s warranty asf this required by section 1, to respond reasonably to a claim made under the builder’s warranty or to comply with the requirement to notify an owner about the Residential Construction Recovery Fund constitutes cause for disciplinary action by cause for such disciplinary action by the Board.Board.elements of certain acts that constitute EXPLANATION – Matter in bolded italics is new;

Sectionmatter 1.3between ofbrackets this[omitted billmaterial] revisesis thematerial elementsto ofbe certainomitted. acts that constitute cause for such disciplinary action by the Board.

- *AB440_R2* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

A licensee who completes construction of a new, single-single-family family residence shall provide to the purchaser of the residence:

As used in this paragraph, - 80th Session (2019) – 2 – “punch list” means a list of any materials or work describing incomplete or incorrect installations or incidental damage to existing finishes, material and structures that do not conform to the specifications of the contract or the requirements of subsection 1 of NRS 624.3017.

(c) Contain terms that include, without limitation, warrantying all home systems, workmanship, materials, plumbing, electrical and mechanical systems, appliances installed by contractors, fixtures, equipment and structural components, unless a separate warrantyproduct, iscomponent providedor bysystem.anufacturer the manufacturer or installer of such a product,(d) componentBe ortransferable system.to a subsequent purchaser of the residence.

(d)(e) BeNot transferablebe deemed, construed or interpreted to constitute a subsequentwaiver purchaseror release of any other warranty from the residence.licensee provided by contract or otherwise available under the laws of this State.

waiver or release of any other warranty from the licensee provided by contract or otherwise available under the laws of this State.

Abandonment of a construction project when the percentage of the project completed is less than the percentage of the total price of the contract paid to the contractor at the time of abandonment, unless the contractor is entitled to retain the amount paid pursuant to - *AB440_R2* – 3 – the terms of the contract or the contractor refunds the excessive amount paid within 30 days after the abandonment of the project.

Failure in a material respect [on the part of a licensee] to complete any construction project or operation for the price stated in thecontract.act contract for the project or operation or any modification of the contract.4.

4.

- 80th Session (2019) – 3 – 1.

Failure to pay an assessment required pursuant to NRSNRS9.24.Failure 624.470.to file a certified payroll report that is required for a contract for a public work.

9.

Failure to file a certified payroll report that is required for a contract for a public work.

- *AB440_R2* – 4 – 12.

Failure to provide a builder’s warranty as required by section 1 of this act or to respond reasonably to a claim made undSec.under a builder’s warranty.

2.Secs.

(Deleted2-4. by amendment.) Sec.

3.(Deleted by amendment.) ~~~~~ 19 - 80th Session (2019)

(Deleted by amendment.) Sec.

4.

(Deleted by amendment.) H - *AB440_R2*