Amendment No. 791

Assembly Amendment to Senate Bill No. 32 First Reprint (BDR 3-22)

Proposed by: Committee on Judiciary

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. 2, page 1, line 11, by deleting:

"the defects or" and inserting:

"to the extent known the defects, and".

Amend sec. 2, page 1, line 12, after "residence" by inserting "or appurtenance".

Amend sec. 2, page 1, by deleting lines 13 and 14 and inserting:

"The notice must describe in reasonable detail each defect, the specific location of each defect, and the".

Amend sec. 2, page 2, line 5, after "a" by inserting:

"valid and reliable".

Amend sec. 2, page 2, line 6, after "residences" by inserting "and appurtenances".

Amend sec. 2, page 2, line 18, after "residence" by inserting "or appurtenance".

Amend sec. 2, page 2, by deleting lines 29 and 30 and inserting:

"(a) Establish a schedule for the addition of any additional parties to the complaint or to file any third-party complaint against an".

Amend sec. 2, page 3, line 12, by deleting "If " and inserting:

"Subject to the provisions of NRS 40.680, if ".

Amend sec. 2, page 3, line 22, after "residence" by inserting "or appurtenance".

Amend sec. 2, page 3, line 23, after "by" by inserting:

"or on behalf of ".

Amend sec. 2, page 3, line 26, by deleting "45" and inserting "60".

Amend sec. 2, page 3, line 28, by deleting:

"offer of settlement" and inserting "response".

Amend sec. 2, page 3, line 32, by deleting:

"offer of settlement" and inserting "response".

Amend sec. 2, page 3, line 34, by deleting:

"offer of settlement." and inserting "response.".

Amend sec. 2, page 3, line 35, by deleting:

"offer of settlement" and inserting:

"response of the contractor".

Amend sec. 2, page 3, line 36, by deleting "offer" and inserting:

"response of the contractor".

Amend sec. 5, page 4, by deleting lines 30 and 31 and inserting:

"inclusive, and sections 2, 3, 4 and 6 of this act, a claimant may not commence an action against a subdivider or master developer for a constructional ".

Amend sec. 5, page 4, line 34, after "licensed" by inserting "general".

Amend sec. 5, page 4, line 35, by deleting "unless, after" and inserting:

"unless:

(a) The subdivider or master developer fails to provide to the claimant the name, address and telephone number of each contractor hired by the subdivider or master developer to construct the appurtenance within 30 days of the receipt by the subdivider or master developer of a request from the claimant for such information; or

(b) After".

Amend sec. 5, page 5, line 14, after "4." by inserting:

"Nothing in this section prohibits a person other than the claimant from commencing an action against a subdivider or master developer to enforce his own rights.

5. The provisions of this section do not apply to a subdivider or master developer who acts as a general contractor or uses his license as a general contractor in the course of constructing the appurtenance that is the subject of the action.

6.".

Amend sec. 5, page 5, by deleting lines 15 through 17 and inserting:

"(a) "Master developer" means a person who buys, sells or develops a planned unit development, including, without limitation, a person who enters into a development agreement pursuant to NRS".

Amend sec. 6, page 5, line 22, after "that" by inserting "is or".

Amend sec. 6, page 5, line 36, after "that" by inserting "is or".

Amend sec. 6, page 5, line 40, after "that" by inserting "is or".

Amend the bill as a whole by adding a new section designated sec. 8.5, following sec. 8, to read as follows:

"Sec. 8.5. NRS 40.625 is hereby amended to read as follows:

40.625 "Homeowner’s warranty" means a warranty or policy of insurance:

1. Issued or purchased by or on behalf of a contractor for the protection of a claimant; or

2. Purchased by or on behalf of a claimant pursuant to NRS 690B.100 to 690B.180, inclusive.

The term includes a warranty contract issued by a risk retention group that operates in compliance with chapter 695E of NRS and insures all or any part of the liability of a contractor for the cost to repair a constructional defect in a residence.".

Amend sec. 9, page 6, line 29, by deleting "[or each" and inserting "or [each".

Amend sec. 9, page 6, line 30, after "residence]" by inserting "appurtenance".

Amend sec. 9, page 6, line 34, after "residence" by inserting "or appurtenance".

Amend sec. 9, page 6, by deleting line 37 and inserting:

"components of the residences [or of the units of each multiple unit residence] and appurtenances involved in the".

Amend sec. 9, page 6, line 38, by deleting "35-day" and inserting "[35-day] 45-day".

Amend sec. 9, page 7, line 4, after "residence" by inserting "or appurtenance".

Amend sec. 9, page 7, line 5, after "by" by inserting:

"or on behalf of ".

Amend sec. 9, page 7, line 8, by deleting "45" and inserting "[45] 60".

Amend sec. 9, page 7, by deleting lines 9 and 10 and inserting:

"contractor [may] shall make a written [offer of settlement] response to the claimant. The [offer:] response:".

Amend sec. 9, page 7, line 16, by deleting "offer" and inserting "[offer] response".

Amend sec. 9, page 7, line 17, by deleting "the" and inserting "[the] any".

Amend sec. 9, page 7, line 19, by deleting "compensation." and inserting:

"compensation [.] , which may include a contribution from a subcontractor.".

Amend sec. 9, page 7, line 20, after "contractor" by inserting "or his subcontractor".

Amend sec. 9, page 7, line 21, after "contractor" by inserting "or subcontractor".

Amend sec. 9, page 7, line 26, by deleting "offer," and inserting "[offer,] response,".

Amend sec. 9, page 7, line 27, by deleting "contractor." and inserting:

"contractor [.] , or timely completion of the repairs is not reasonably possible.".

Amend sec. 9, page 7, line 41, by deleting:

"offer of settlement" and inserting:

"[offer of settlement] response".

Amend sec. 9, page 7, after line 42, by inserting:

"6. As used in this section, "subcontractor" means a contractor who performs work on behalf of another contractor in the construction of a residence or appurtenance.".

Amend sec. 10, page 8, line 3, after "settlement" by inserting:

"made as part of a response".

Amend the bill as a whole by adding a new section designated sec. 12.5, following sec. 12, to read as follows:

"Sec. 12.5. NRS 40.687 is hereby amended to read as follows:

40.687 Notwithstanding any other provision of law:

1. A claimant shall, within 10 days after commencing an action against a contractor, disclose to the contractor all information about any homeowner’s warranty that is applicable to the claim.

2. The contractor shall, no later than 10 days after [any settlement offer] a response is made pursuant to this chapter, disclose to the claimant any information about insurance agreements that may be obtained by discovery pursuant to rule 26(b)(2) of the Nevada Rules of Civil Procedure. Such disclosure does not affect the admissibility at trial of the information disclosed.

3. Except as otherwise provided in subsection 4, if either party fails to provide the information required pursuant to subsection 1 or 2 within the time allowed, the other party may petition the court to compel production of the information. Upon receiving such a petition, the court may order the party to produce the required information and may award the petitioning party reasonable attorney’s fees and costs incurred in petitioning the court pursuant to this subsection.

4. The parties may agree to an extension of time to produce the information required pursuant to this section.

5. For the purposes of this section, "information about insurance agreements" is limited to any declaration sheets, endorsements and contracts of insurance issued to the contractor from the commencement of construction of the residence of the claimant to the date on which the request for the information is made and does not include information concerning any disputes between the contractor and an insurer or information concerning any reservation of rights by an insurer.".

Amend sec. 16, page 10, line 21, by deleting:

"this section and".

Amend sec. 16, page 10, lines 33 and 34, by deleting:

"[and subsection 1 of this section, where] ," and inserting:

"and subsection 1 of this section, [where]".

Amend sec. 17, page 11, line 2, by deleting:

"this section and".

Amend sec. 17, page 11, lines 14 and 15, by deleting:

"[and subsection 1 of this section, where] ," and inserting:

"and subsection 1 of this section, [where]".

Amend sec. 18, page 11, line 27, by deleting:

"this section and".

Amend sec. 18, page 11, lines 39 and 40, by deleting:

"[and subsection 1 of this section, where] ," and inserting:

"and subsection 1 of this section, [where]".

Amend sec. 19, page 12, lines 29 and 30, by deleting:

"purchaser and notarized." and inserting "purchaser.".

Amend sec. 23, page 14, line 29, by deleting "50" and inserting "35".

Amend sec. 24, page 15, line 11, after "That" by inserting:

", except in an emergency, including, without limitation, the loss of heating, cooling, plumbing or electrical service by the insured,".

Amend sec. 24, page 15, line 13, after "claim." by inserting:

"Work must commence on an emergency not later than 24 hours after the report of the claim. The commissioner may adopt regulations to define "emergency" for the purposes of this paragraph.".

Amend sec. 25, page 15, by deleting lines 29 through 32 and inserting:

"protection, other than casualty insurance, shall not:

1. Engage in any other business [other than the furnishing] of insurance [for home protection.] or real estate pursuant to chapters 645 to 645D, inclusive, of NRS.

2. Assume reinsurance from any other insurer.".