context otherwise requires, the words and terms defined in sections 3 to

8, inclusive, of this act have the meanings ascribed to them in those

sections.

section 9 of this act.

failure of a residential contractor to perform qualified services

adequately.

residence and who contracts with a residential contractor for the

performance of qualified services with respect to the residence. The term

includes a subsequent owner.

repair or improvement performed by a residential contractor on a

single-family residence occupied by the owner of the residence.

pursuant to this chapter and who contracts with the owner of a

single-family residence to perform qualified services.

a single-family residence from the owner of the residence.

to the annual fee for a license required pursuant to NRS 624.280, a

residential contractor shall pay to the board an annual assessment in the

following amount, if the monetary limit on his license is:

1. Unlimited 500

2. The board shall administer and account separately for the money

received from the annual assessments collected pursuant to subsection 1.

The board may refer to the money in the account as the "recovery fund."

subsection 1 when the balance in the account reaches 150 percent of the

largest balance in the account during the previous fiscal year.

4. Except as otherwise provided in section 14 of this act, the money

in the account must be used to pay claims made by owners who are

damaged by the failure of a residential contractor to perform qualified

services adequately, as provided in sections 2 to 17, inclusive, of this act.

enforce the judgment to the board.

1. pursuant thereto.
2. 2. An injured person is not eligible for recovery from the account if:

representative of the spouse of the licensee;

(b) The injured person was associated in a business relationship with

the licensee other than the contract at issue; or

(c) At the time of contracting with the residential contractor, the

license of the residential contractor was suspended or revoked pursuant

to NRS 624.300.

3. If the board or its designee determines that an injured person is

eligible for recovery from the account pursuant to this section or section

11 of this act, the board or its designee may pay out of the account:

(a) The amount of actual damages suffered, but not to exceed

$30,000; or

(b) If a judgment was obtained as set forth in section 11 of this act, the

amount of actual damages included in the judgment and remaining

unpaid, but not to exceed $30,000.

1. 4. The decision of the board or its designee regarding eligibility for

1. recovery and all related issues is final and not subject to judicial review.

sources other than the account, the board shall deduct the amount

recovered from the other sources from the amount payable upon the

claim and direct the difference to be paid from the account.

6. To the extent of payments made from the account, the board is

subrogated to the rights of the injured person, including, without

limitation, the right to collect from a surety bond or a cash bond. The

board and the attorney general shall promptly enforce all subrogation

claims.

made against any single contractor must not exceed $200,000.

1. 8. As used in this section, "actual damages" includes attorney’s fees

1. or costs in contested cases appealed to the supreme court of this state.

1. The term does not include any other attorney’s fees or costs.

(a) On or before February 1 of each year, prepare and submit to the

director of the legislative counsel bureau for transmittal to the

appropriate legislative committee if the legislature is in session, or to the

interim finance committee if the legislature is not in session, a statement

of the condition of the account that is prepared in accordance with

generally accepted accounting principles.

(b) Employ accountants as necessary for the performance of the

duties set forth in this section and pay any related expenses from the

money in the account. Except as otherwise provided in subsection 3, the

expenditures made by the board pursuant to this paragraph must not

exceed $10,000 in any fiscal year.

(c) Employ or contract with persons and procure necessary

equipment, supplies and services to be paid from or purchased with the

money in the account as may be necessary to monitor or process claims

filed by injured persons that may result in a recovery from the account.

2. Any interest earned on the money in the account must be credited

to the account. The board may expend the interest earned on the money

in the account to increase public awareness of the account. Except as

otherwise provided in subsection 3, the expenditures made by the board

for this purpose must not exceed $50,000 in any fiscal year.

must not exceed 10 percent of the account in any fiscal year.

the board shall maintain a minimum balance of $200,000 in the account.

whom he contracts of the rights of the owner pursuant to sections 2 to 17,

inclusive, of this act, including, without limitation, providing a written

statement explaining those rights in any agreement or contract for

qualified services. The written statement must be in substantially the

following form:

1. RESIDENTIAL CONSTRUCTION RECOVERY FUND

1. Payment may be available from the recovery fund if you are damaged

1. financially by a project performed on your residence pursuant to a

1. contract, including construction, remodeling, repair or other

1. improvements, and the damage resulted from certain specified violations

1. of Nevada law by a contractor licensed in this state. To obtain

1. information relating to the recovery fund and filing a claim for recovery

1. from the recovery fund, you may contact the State Contractors’ Board at

1. the following locations:

1. 9670 Gateway Drive, Suite 100 4220 South Maryland Parkway, Suite 800D

1. Reno, Nevada 89509-8953 Las Vegas, Nevada 89119-7533

1. Telephone number: (775) 688-1141 Telephone number: (702) 486-1100

1. 2. The board may impose upon a contractor an administrative fine:

1. (a) Of not more than $100 for the first violation of subsection 1; and

1. (b) Of not more than $250 for a second or subsequent violation of

1. subsection 1.

1. 3. The board shall deposit any money received pursuant to this

1. section in the account established pursuant to section 9 of this act.

1. residential contractor.

carry out the provisions of sections 2 to 17, inclusive, of this act,

including, without limitation, regulations governing:

1. The disbursement of money from the account; and

2. The manner in which a complaint is filed with the board or its

designee pursuant to section 10 of this act.

1. section 9 of this act, any amount paid out of the account pursuant to

1. section 13 of this act as the result of an act or omission of that licensee;

act.