SB 436 — Revises provisions relating to service contracts. (BDR 57-873)

(ReprintedSenate withBill amendmentsNo. adopted on April 21, 2023) FIRST REPRINT S.B.

436436–Committee Son ENATECommerce Band ILLNLabor O.CHAPTER..........

436–C OMMITTEE ON C OMMERCE AND L ABOR M ARCH 27, 2023 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions relating to service contracts.

(BDR 57-873) 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.

requiring the provider of a service contract to maintain or contract for an adequate network or workforce of employees or contractors to carry out its obligations under the service contract in a timely and reasonable manner;

providing that the holder of a service contract is entitled to reimbursement of costs incurred as the result of the failure by the provider to comply with such a requirement;

(Chapter 690C of NRS) Existing law defines a service statedcontract consideration,as is obligated for a specifiedcontract periodpursuant to which a holderprovider, toin repair,exchange replacefor orseparately performstated maintenanceconsideration, on,is orobligated indemnifyfor ora reimbursespecified theperiod holderto fora theholder coststo ofrepair, replace repairing, replacing or performing maintenance on, goods that are described in the service contract and which have an operational or structural failure as a result of a defect in materials, workmanship or normal wear and tear.

(1) pay reimbursement for towing, rental and ofemergency goodsroad forservice; damages that result from power surges or accidental damage fromenance handling.

and (2) provide for the repair, replacement or maintenance handling.

(NRS 690C.330) SectionThis 1 of this bill requires a provider to ensure that the providerCommissioner maintains or contracts for an adequate network or workforce of employeesInsurance or contractors to -submit *SB436_R1* – 2 – carry out its obligations to the holderJoint ofInterim aStanding serviceCommittee contracton inCommerce a timely and reasonableLabor manner,an including,annual withoutreport limitation,that theprovides dutycertain toinformation repair,concerning replacethe orservice performcontract maintenanceindustry on goods that are described in thethis serviceState. contract.

SectionEXPLANATION 1– orMatter contract for such an adequate network or workforce of employees or contractors,n then, in additionbolded toitalics any other remedies available to the holder, a holder is entitlednew; to reimbursement from the provider for any reasonable and necessary costs incurred by the holder to repair, replace or perform maintenance on the goods.

Sectionmatter 2between ofbrackets this[omitted billmaterial] requiresis thematerial Commissioner of Insurance to submitbe toomitted. the provides certain information concerning the service contract industry in this State.

1.(Deleted by amendment.) Sec.

A provider shall maintain or contract for an adequate network or workforce of employees or contractors that is sufficient to carry out its obligations to a holder under a service contract in a timely and reasonable manner, including, without limitation, the duty to repair, replace or perform maintenance on goods that are described in the service contract.

If a provider fails to comply with the provisions of subsection 1, in addition to any other remedy available to a holder, a holder is entitled to reimbursement from the provider for any reasonable and necessary costs incurred by the holder to repair, replace or perform maintenance on the goods.

Sec.

2.

On or before DecemberMarch 31, 2023,2024, and on or before DecemberMarch 31 of each year thereafter, the Commissioner shall submit a report to the Joint Interim Standing Committee on Commerce and Labor concerning the service contract industry in this State.

- 82nd Session (2023) – 2 – (d) The number of complaints concerning providers received by the Division, by type of complaint;complaint and information concerning the resolution of such complaints;

and (e) Any other matter relating to the service contract industry in thisthi3.StaTo Statethe thatextent reasonably practicable, the Commissionerinformation deemsspecified appropriate.in paragraph (a) of subsection 2 must be disaggregated in the report.

3.4.

- *SB436_R1* – 3 – (a) “Provider” has the meaning ascribed to it in NRS 690C.070.

H~~~~~ 23 - *SB436_R1*82nd Session (2023)