Struck = removed from the bill ·
added = the amendment's new text.
AssemblySession Bill(80th) A AB440 604 Amendment No.
440–Committee604 onAssembly JudiciaryAmendment CHAPTER..........to Assembly Bill No.
AN440 ACT(BDR relating3-1108) toProposed construction;by:
requiringAssembly aCommittee licenseeon whoJudiciary buildsAmendment aBox: new, single-family residence to provide to the purchaser of the residence a disclosure containing certain information and a builder’s warranty that meets certain criteria;
Replaces Amendment No.
399.
Amends:
Summary:
Yes Title:
Yes Preamble:
No Joint Sponsorship:
No Digest:
Yes ASSEMBLY ACTION Initial and Dat| SENATE ACTION Initial and Date Adopted Lost | Adopted Lost Concurred In Not | Concurred In Not Receded Not | Receded Not EXPLANATION:
Matter in (1) blue bold italics is new language in the original bill;
(2) variations of green bold underlining is language proposed to be added in this amendment;
(3) red strikethrough is deleted language in the original bill;
(4) purple double strikethrough is language proposed to be deleted in this amendment;
(5) orange double underlining is deleted language in the original bill proposed to be retained in this amendment.
BAW - Date:
4/22/2019 A.B.
No.
440—Revises provisions relating to home warranties.
(BDR 3-1108) Page 1 of 6 *A_AB440_604* Assembly Amendment No.
604 to Assembly Bill No.
440 Page 3 A SSEMBLY B ILLN O.
440–COMMITTEE ON JUDICIARY M ARCH 25,2019 _______________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to [home warranties.] construction.
(BDR [3-1108)] 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.
AN ACT relating to [real property;] construction;
requiring a [contractor] licensee who builds a new , single-family residence to provide to the purchaser of the residence a disclosure containing certain information and a [new home] builder’s warranty that meets certain criteria;
(NRS 624.301, 624.3016) Section 1 of this bill requires a [contractor] licensee who builds a new,new , single-family residence to provide to the purchaser of [a] the new residence a disclosure containing certain billinformation providesand that the failure of a licensee[new tohome] provide a builder’s warranty asfthat thismeets 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.elements of certain actscriteria. that constitute EXPLANATION – Matter in bolded italics is new;
matter[Sections between2-4 bracketsof [omittedthis material]bill ismake materialconforming changes.] Section 1.7 of this bill provides that the failure of a licensee to becomply omitted.with section 1 or with the requirement to notify an owner about the Residential Section 1.3 of this bill revises the elements of certain acts that constitute cause for such disciplinary action by the Board.
Chapter [40] 624 of NRS is hereby amended by adding thereto a new section to read as follows:
A [contractor] licensee who completes construction of a new,new single-family, single- family residence shall provide to the purchaser of the residence:residence [a new home] :
2.Assembly Amendment No.
A604 builder’s warranty provided by a licensee pursuant to thisAssembly sectionBill must:No.
440 Page 4 2.
A [new home] builder’s warranty provided by a [contractor] licensee pursuant to this section must:
(b) Be valid for a period of at least 1 year [after] from the date of [final completion of aconstruction] writtenoccupancy punchof list.the residence [.
As(b) usedOffer incoverage thisfor paragraph,all: - 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 of NRS 624.3017.
(c)(1) ContainDefective terms that include, without limitation, warrantying all home systems, workmanship, materials, plumbing, electrical and mechanical systems, appliancesappliances, installedfixtures by contractors, fixtures, equipment and structuralequipment; components, unless a separate product, component or system.anufacturer or installer of such a (d) Be transferable to a subsequent purchaser of the residence.
and (2) Structural defects.
3.
A contractor who constructs a new residence remains liable to the purchaser of a residence to perform all necessary repairs and corrections to the residence in accordance with the terms of the contract until coverage under the new home warranty begins upon final completion of construction.
4.
As used in this section, “final completion of construction” means the purchaser of the residence has notified the contractor, in writing, that:
(a) There are no items in the residence to be repaired or corrected;
or (b) If the purchaser has provided to the contractor a list or description of all items in the residence to be repaired or corrected, often referred to as a punch list, all items on the list have been repaired or corrected to the satisfaction of the purchaser.] by the purchaser of the residence or the date that title to the residence transfers to the purchaser, whichever is earlier, except that the period of validity of the builder’s warranty must be extended beyond the 1-year period, if necessary, for any claim submitted to the licensee in writing during the 1-year period until the claim has been resolved or the item requiring repair has been reasonably repaired.
For the purposes of this paragraph, “reasonably repaired” means repaired consistent with the performance standards set forth in the builder’s warranty or, if there are no applicable performance standards set forth in the builder’s warranty, commensurate with standards of the trade that are in general effect at the time of completion of construction.
(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 warranty is provided by the manufacturer or installer of such a product, component or system.
(d) Be transferable to a subsequent purchaser of the residence.
3.
A licensee who fails to comply with this section:
(a) Commits an act or omission that constitutes cause for disciplinary action as provided in subsection 12 of NRS 624.3016;
(b) May be subject to a written administrative citation as provided in NRS 624.341;
and (c) If the failure arises out of being nonresponsive to a reasonable claim under the builder’s warranty, in addition to any other disciplinary action imposed by the Board, may be ordered by the Board to reimburse the purchaser for any costs or expenses incurred by the purchaser for hiring another licensee to repair the item at issue or resolve the claim.
[engaged in or undertaken by the licensee as a contractor.] 2.Assembly Amendment No.
604 to Assembly Bill No.
440 Page 5 2.
Failure in a material respect [on the part of a licensee] to complete any construction project or operation for the price stated in contract.actthe contract for the project or operation or any modification of the 4.contract.
4.
- 80th Session (2019) – 3 – 1.
Failure to pay an assessment required pursuant to NRS9.24.FailureNRS to624.470. 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.
Failure to providecomply awith builder’s warranty as required by section 1 of this actact. or to respond reasonably to a claim made under a builder’s warranty.
Secs.Sec.
2-4.2.
(Deleted[NRS by40.600 amendment.)is ~~~~~hereby 19amended -to 80thread Sessionas (2019)follows:
40.600 As used in NRS 40.600 to 40.695, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 40.603 to 40.634, inclusive, have the meanings ascribed to them in those sections.] (Deleted by amendment.) Sec.
3.
[NRS 40.625 is hereby amended to read as follows:
40.625 “Homeowner’s warranty” means a warranty or policy of insurance:
1.
Issued or purchased by or on behalf of a contractor for the protection of a claimant [;] , including, without limitation, a new home warranty provided pursuant to section 1 of this act;
or 2.
Purchased by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive.
Assembly Amendment No.
604 to Assembly Bill No.
440 Page 6 The term includes a warranty contract issued 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.] (Deleted by amendment.) Sec.
4.
[NRS 40.635 is hereby amended to read as follows:
40.635 NRS 40.600 to 40.695, inclusive [:] , and section 1 of this act:
1.
Apply to any claim that arises before, on or after July 1, 1995, as the result of a constructional defect, except a claim for personal injury or wrongful death, if the claim is the subject of an action commenced on or after July 1, 1995.
2.
Prevail over any conflicting law otherwise applicable to the claim or cause of action.
3.
Do not bar or limit any defense otherwise available, except as otherwise provided in those sections.
4.
Do not create a new theory upon which liability may be based, except as otherwise provided in those sections.] (Deleted by amendment.)