AB 231 — Requires certain service contracts to impose certain duties upon the provider of the service contract. (BDR 57-655)

(Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT A.B.

ENATOR N EAL ____________ Referred to Committee on Commerce and Labor SUMMARY—Requires acertain service contractcontracts to impose certain duties onupon the provider of the service contract.

requiring acertain service contractcontracts to impose certain duties upon the provider of the service contract;

(NRS 690C.260) This bill requiressets thoseforth certain duties of a provider of a home warranty service contract, which this bill defines to include,mean withouta limitation,service contract that covers only the dutystructural tocomponents, ensureappliances that:or home systems of a residence.

(1)This anybill goods,requires otherthe thanduties anof aira conditionerprovider inof a home orwarranty service contract set forth in the contract to include, without limitation, the duty to ensure dwelling, covered under the service contract are restored to sound working home or condition within 14 business days after receiving notice that the goods are defective;

and (2) any goods which are restored and become defective within 14 business days after the date on which the goods were restored are restored within 2 business days after receiving notice that the goods are defective.

With respect to an air conditionerconditioner, furnace or heater in a home or dwelling that is covered under a service contract, this bill requires a service contract to provide that the provider has the duty to:

(1) ensure that the air conditionerconditioner, furnace or heater is restored to sound working condition within 5 business days after receiving notice that the air conditionerconditioner, furnace or heater is defective;

and (2) if the provider fails to do so, - *AB231_R1* – 2 – provide the holder with sleepinga accommodationsper indiem aallowance hotelfor lodging until the air conditionerconditioner, furnace or heater is restored.

- *AB231* – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

TheIf duties of the provider must include, withou(1) Except as otherwise provided in subparagraphs (2) and (3), ensure that any goods described in the service contract that the provider is obligateda tohome repairwarranty orservice replacecontract, in the eventduties of the goodsprovider becomemust defectiveinclude, arewithout restoredlimitation, within 14 business days after receiving notice from the holderduty thatto: the goods are defective.

(2)(1) Except as otherwise provided in subparagraphsubparagraphs (2) and (3), ensure that any airgoods conditionerdescribed in athe homeservice orcontract dwelling that the provider is obligated to repair or replace in the event that the airgoods conditionerbecome becomes defective isare restored within 514 business days after receiving notice from the holder that the airgoods conditionerare is defective.

If(2) theExcept provideras failsotherwise toprovided restorein thesubparagraph (3), ensure that any air conditionerconditioner, withinfurnace thator period,heater in a home or dwelling that the provider shallis provideobligated theto holder,repair ator noreplace costin tothe event that the air conditioner, furnace or heater becomes defective - *AB231**AB231_R1* – 3 – holder,is withrestored sleepingwithin accommodations5 inbusiness adays hotelafter untilreceiving notice from the holder that the air conditionerconditioner, furnace or heater is restored.defective.

If the provider fails to restore the air conditioner, furnace or heater within that period, the provider shall provide to the holder a per diem allowance for lodging at the same rate as the comparable rate established for employees of the Federal Government by the Administrator of General Services pursuant to 5 U.S.C.

§ 5707 until the air conditioner, furnace or heater is restored.

As used in this section,section: “restored” means restoration to a sound working condition by replacing the goods or any part thereof, or by correcting what is inoperative.

Sec.(a) “Home warranty service contract” means a service contract that covers only the structural components, appliances or home systems of a residence, including, without limitation, the electrical, heating, cooling and plumbing systems and other similar systems of a residence.

- *AB231_R1* – 4 – (b) “Restored” means restoration to a sound working correcting what is inoperative.s or any part thereof, or by Sec.

H - *AB231**AB231_R1*