EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 40.645 is hereby amended to read as follows:

1-2 40.645 Except as otherwise provided in this section and NRS 40.670:

1-3 1. At least 60 days before a claimant commences an action against a

1-4 contractor for damages arising from a constructional defect, the claimant

1-5 must [give] :

1-6 (a) Provide written notice by certified mail, return receipt requested, to

1-7 the contractor, at the contractor’s last known address, specifying in

1-8 reasonable detail the defects or any damages or injuries to each residence

1-9 or each unit within a multiple-unit residence that is the subject of the claim.

1-10 The notice must describe in reasonable detail the cause of the defects if the

1-11 cause is known, and the nature and extent that is known of the damage or

1-12 injury resulting from the defects. In a complex matter, an expert opinion

1-13 concerning the cause of the defects and the nature and extent of the

1-14 damage or injury resulting from the defects based on a representative

2-1 sample of the residences or of the units of each multiple-unit residence

2-2 involved in the action satisfies the requirements of this [section.]

2-3 paragraph. During the 35-day period after the contractor receives the

2-4 notice, on his written request, the contractor is entitled to inspect the

2-5 property that is the subject of the claim to determine the nature and cause

2-6 of the defect, damage or injury and the nature and extent of repairs

2-7 necessary to remedy the defect. The contractor shall, before making the

2-8 inspection, provide reasonable notice of the inspection and must make the

2-9 inspection at a reasonable time. The contractor may take reasonable steps

2-10 to establish the existence of the defect.

2-11 (b) Record at the office of the county recorder in the county in which

2-12 the property is situated a copy of the notice required pursuant to

2-13 paragraph (a).

2-14 2. If the residence is covered by a homeowner’s warranty, a claimant

2-15 must diligently pursue a claim under the warranty or contract.

2-16 3. Within 45 days after the contractor receives the notice, the

2-17 contractor may make a written offer of settlement to the claimant. The

2-18 offer:

2-19 (a) Must be served to the claimant by certified mail, return receipt

2-20 requested, at the claimant’s last known address.

2-21 (b) Must respond to each constructional defect set forth in the

2-22 claimant’s notice, and describe in reasonable detail the cause of the defect,

2-23 if known, the nature and extent of the damage or injury resulting from the

2-24 defect, and, unless the offer is limited to a proposal for monetary

2-25 compensation, the method, adequacy and estimated cost of the proposed

2-26 repair.

2-27 (c) May include:

2-28 (1) A proposal for monetary compensation.

2-29 (2) If the contractor is licensed to make the repairs, an agreement by

2-30 the contractor to make the repairs.

2-31 (3) An agreement by the contractor to cause the repairs to be made, at

2-32 the contractor’s expense, by another contractor who is licensed to make the

2-33 repairs, bonded and insured.

2-34 The repairs must be made within 45 days after the contractor receives

2-35 written notice of acceptance of the offer, unless completion is delayed by

2-36 the claimant or by other events beyond the control of the contractor. The

2-37 claimant and the contractor may agree in writing to extend the periods

2-38 prescribed by this section.

2-39 4. The periods provided in subsections 1 and 3 must be extended by 60

2-40 days if the claim is a complex matter. The parties may stipulate to a further

2-41 extension.

2-42 5. Not later than 15 days before the mediation required pursuant to

2-43 NRS 40.680 and upon providing 15 days’ notice, each party shall provide

3-1 the other party, or shall make a reasonable effort to assist the other party to

3-2 obtain, all relevant reports, photos, correspondence, plans, specifications,

3-3 warranties, contracts, subcontracts, work orders for repair, videotapes and

3-4 soil and other engineering reports that are not privileged.

3-5 6. If the claimant is a representative of a homeowner’s association, the

3-6 association shall submit any offer of settlement made by the contractor to

3-7 each member of the association.

3-8 Sec. 2. NRS 40.655 is hereby amended to read as follows:

3-9 40.655 1. Except as otherwise provided in NRS 40.650, in a claim

3-43 provided pursuant to NRS 40.600 to 40.695, inclusive.

4-1 [4.] 5. As used in this section, "structural failure" means physical

4-2 damage to the load-bearing portion of a residence or appurtenance caused

4-3 by a failure of the load-bearing portion of the residence or appurtenance.

4-4 Sec. 3. NRS 41.033 is hereby amended to read as follows:

4-5 41.033 1. No action may be brought under NRS 41.031 or against an

4-6 officer or employee of the state or any of its agencies or political

4-7 subdivisions which is based upon:

4-8 (a) Failure to inspect any building, structure, vehicle, street, public

4-9 highway or other public work, facility or improvement to determine any

4-10 hazards, deficiencies or other matters, whether or not there is a duty to

4-11 inspect; or

4-12 (b) Failure to discover or to act reasonably after discovering such a

4-13 hazard, deficiency or other matter, whether or not an inspection is made.

4-14 2. An inspection conducted with regard to a private building, structure,

4-15 facility or improvement constitutes a public duty and does not warrant or

4-16 ensure the absence of any hazard, deficiency or other matter.

4-17 Sec. 4. The amendatory provisions of this act apply to an action

4-18 brought on or after the effective date of this act.

4-19 Sec. 5. This act becomes effective upon passage and approval.