Amendment No. 1094

Assembly Amendment to Assembly Bill No. 673 First Reprint (BDR 57-1673)

Proposed by: Committee on Ways and Means

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 10, page 2, line 36, by deleting "or".

Amend sec. 10, page 2, line 38, by deleting "$350." and inserting:

"$250; or

(f) A service contract issued, sold or offered for sale by a vehicle dealer on vehicles sold by the dealer, if the dealer is licensed pursuant to NRS 482.325 and the service contract obligates either the dealer or the manufacturer of the vehicle, or an affiliate of the dealer or manufacturer, to provide all services under the service contract.".

Amend sec. 12, page 3, line 24, by deleting "$500." and inserting "$1,000.".

Amend sec. 15, page 4, line 34, by deleting "except for" and inserting:

"except, when applicable,".

Amend sec. 18, page 6, by deleting lines 3 and 4 and inserting:

"(d) Include the name and address of the provider and, if applicable:

(1) The name and address of the administrator; and

(2) The name of the holder, if provided by the holder.

The names".

Amend sec. 18, page 6, line 10, after "provider." by inserting:

"The purchase price is not required to be preprinted on the service contract and may be negotiated with the holder and added to the service contract at the time of sale.".

Amend sec. 18, page 6, line 23, by deleting "NRS 687B.320." and inserting:

"section 19.5 of this act.".

Amend the bill as a whole by adding a new section designated sec. 19.5, following sec. 19, to read as follows:

"Sec. 19.5. 1. No service contract that has been in effect for at least 70 days may be canceled by the provider before the expiration of the agreed term or 1 year after the effective date of the service contract, whichever occurs first, except on any of the following grounds:

(a) Failure by the holder to pay an amount when due;

(b) Conviction of the holder of a crime which results in an increase in the service required under the service contract;

(c) Discovery of fraud or material misrepresentation by the holder in obtaining the service contract, or in presenting a claim for service thereunder;

(d) Discovery of:

(1) An act or omission by the holder; or

(2) A violation by the holder of any condition of the service contract,

which occurred after the effective date of the service contract and which substantially and materially increases the service required under the service contract; or

(e) A material change in the nature or extent of the required service or repair which occurs after the effective date of the service contract and which causes the required service or repair to be substantially and materially increased beyond that contemplated at the time that the service contract was issued or sold.

2. No cancellation of a service contract may become effective until at least 15 days after the notice of cancellation is mailed to the holder.".