AB 51 — Revises provisions governing the Recovery Fund administered by the State Contractors' Board. (BDR 54-324)

(ReprintedAssembly withBill amendmentsNo. adopted on April 14, 2021) FIRST REPRINT A.B.

5151–Committee ASSEMBLYon BILLCommerce NOand .Labor CHAPTER..........

51–COMMITTEE ON C OMMERCE AND LABOR (ON B EHALF OF THE STATE CONTRACTORS ’ BOARD ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing the Recovery Fund administered by the State Contractors’ Board.

(BDR 54-324) 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.

Existing law provides that, subject to certain exceptions, an owner of a single- family residence who suffers actual damages as a result of the acts or omissions of aeligible residentialto contractorrecover whodamages isfrom licensedthe Recovery Fund administered by the StateBoard.be Contractors’(NRS Board624.400-624.560) maySection be1 eligibleof tothis recoverbill damagesdefines from“single-family residence” for the Recoverypurpose Fundof administeredestablishing byeligibility to recover damages from the Board.Recovery Fund.

(NRSectionExisting 1law ofprovides thisthat billan definesinjured “single-familyperson residence”who forhas theobtained purposea ofjudgment establishingsatisfaction eligibilityof to recover damages from the Recoveryjudgment; Fund.

Existingand law(2) providesupon thatobtaining anpayment injuredfrom personthe whoRecoveryoard hasfor obtainedFund, aassigns judgmentto againstthe aBoard residentialhis contractoror forher anrights eligibleto claim:enforce the judgment.

(1)(NRS may624.490) applySection to4 theof Boardthis forbill satisfactionprovides ofthat: the judgment;

and(1) (2)such uponan obtainingassignment paymentis fromlimited to the Recoveryamount Sectionof 4the ofinjured thisperson’s billpayment providesfrom that:the Recovery Fund;

(1) such an assignment is limited to the amount - *AB51_R1* – 2 – of the injured person’s payment from the Recovery Fund;

BoardSection may5 imposeof uponthis abill residentialincreases contractorthe foramount failureof toan notifyadministrative anfine ownerwhich withthe whom the contractor contracts of the rights of the owner relating to the RecoveryRecoveryh Fund.

EXPLANATION – Matter in bolded italics is new;

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

- 81st Session (2021) – 2 – (a) A detached, stand-alone dwelling which is built upon a foundation and situated on its own real property parcel;

or (b) An individual condominium unit, townhouse unit or duplex unit,  thatt2.t servessExcept as theotherwise residenceprovided forin itssubsection owner.3, the term includes:

2.

Except as otherwise provided in subsection 3, the term includes:

-624.400 *AB51_R1*NAs –used 3in –NRS Sec.624.400 to 624.560, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 624.410 to 624.460, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.

2.

NRS 624.400 is hereby amended to read as follows:

624.400 As used in NRS 624.400 to 624.560, inclusive, and section 1 of this act, unless the context otherwise requires, the words and terms defined in NRS 624.410 to 624.460, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.

Not more than $1,000,000..........................$200 per biennium More than $1,000,000 but limited................500 per biennium Unlimited...................................................1,000 per biennium - 81st Session (2021) – 3 – 2.

624.490 Within 2 years after an injured person has obtained a judgment in any court of competent jurisdiction for recovery of damages against a residential contractor for an act or omission of the residential contractor that is in violation of this chapter or the regulations adopted pursuant thereto, the injured person may apply to the Board for satisfaction of the judgment from the account if:

Upon obtaining payment from the account, the injured person assigns to the Board his or her rights to enforce the judgment [to the Board.] up to the amount of his or her payment from the - *AB51_R1* – 4 – account.

A residential contractor shall notify an owner with whom he or she contracts of the rights of the owner pursuant to NRS 624.400 to 624.560, inclusive, and section 1 of this act, including, without limitation, providing a written statement explaining those rights in any agreement or contract for qualified services.

RESIDENTIAL CONSTRUCTION RECOVERY FUND Payment may be available from the Recovery Fund if you are damaged financially by a project performed on your residence pursuant- to81st aSession contract,(2021) including– construction,4 remodeling,– repair or other improvements, and the damage resulted fromfrom, certain specified violations of Nevada law by a contractor licensed in this State.

624.530inclusive, 1.and section 1 of this act do not limit the authority of the Board to take disciplinary action against a residential contractor.

The provisions of NRS 624.400 to 624.560, inclusive, and section 1 of this act do not limit the authority of the Board to take disciplinary action against a residential contractor.

and (b) Prohibit the issuance, reinstatement or renewal of a license to the residential contractor and any officer, director, associate or -partner *AB51_R1*thereof, –unless 5the –residential contractor or any officer, director, associate or partner thereof repays to the account or the owner, or both, as appropriate, any amount paid out of the account or by the owner as a result of the act or omission of the residential contractor.

and - 81st Session (2021) – 5 – 2.

H~~~~~ 21 - *AB51_R1*81st Session (2021)