(REPRINTED WITH ADOPTED AMENDMENTS)
THIRD REPRINT A.B. 133
Assembly Bill No. 133–Assemblyman Dini
February 14, 2001
____________
Referred to Committee on Judiciary
SUMMARY—Makes various changes concerning construction, constructional defects and common-interest communities. (BDR 3‑667)
FISCAL NOTE: Effect on Local Government: No.
~
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).
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 40 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 11, inclusive, of this act.
1-3 Sec. 2. “Design professional” means a person who holds a
1-4 professional license or certificate issued pursuant to chapter 623, 623A
1-5 or 625 of NRS.
1-6 Sec. 3. “Subcontractor” means a contractor who performs work on
1-7 behalf of another contractor in the construction of a residence or
1-8 appurtenance.
1-9 Sec. 4. “Supplier” means a person who provides materials,
1-10 equipment or other supplies for the construction of a residence or
1-11 appurtenance.
2-1 Sec. 5. Except as otherwise provided in NRS 40.670 and subsection
2-2 1 of section 9 of this act:
2-3 1. Before a claimant may commence an action against a contractor
2-4 for damages arising from a constructional defect, the claimant must give
2-5 written notice by certified mail, return receipt requested, to the
2-6 contractor, at the contractor’s last address listed in the records of the
2-7 state contractors’ board, or at the contractor’s last known address if his
2-8 address is not listed in the records of the state contractors’ board,
2-9 specifying in reasonable detail the defects or any damages or injuries to
2-10 each residence or appurtenance that is the subject of the claim. The
2-11 notice must describe in reasonable detail the cause of the defects if the
2-12 cause is known, the nature and extent that is known of the damage or
2-13 injury resulting from the defects and the location of each defect within
2-14 each residence or appurtenance to the extent known.
2-15 2. Within 15 days after receiving a notice pursuant to subsection 1, a
2-16 contractor shall forward a copy of the notice by certified mail, return
2-17 receipt requested, to each subcontractor, supplier and design
2-18 professional who the contractor reasonably believes is responsible for a
2-19 defect specified in the notice and include with the copy of the notice the
2-20 specific defect for which the contractor believes the subcontractor,
2-21 supplier or design professional is responsible.
2-22 3. The claimant shall, upon reasonable notice, allow the contractor
2-23 and a subcontractor, supplier or design professional who received the
2-24 notice pursuant to subsection 2 to access the residence or appurtenance
2-25 that is the subject of the notice to determine the nature and extent of a
2-26 defect and the nature and extent of repairs necessary to remedy the
2-27 defect.
2-28 4. Within 15 days after a subcontractor, supplier or design
2-29 professional receives a copy of a notice pursuant to subsection 2, he shall
2-30 provide the contractor with a statement indicating:
2-31 (a) Whether the subcontractor, supplier or design professional will
2-32 repair the defect for which the contractor believes the subcontractor,
2-33 supplier or design professional is responsible; and
2-34 (b) If the subcontractor, supplier or design professional decides to
2-35 repair the defect, an estimate of the length of time required for the repair,
2-36 and at least two proposed dates on and times at which the subcontractor,
2-37 supplier or design professional can begin making the repair.
2-38 5. An alleged constructional defect which is discovered after an
2-39 action pursuant to NRS 40.600 to 40.695, inclusive, and sections 2 to 11,
2-40 inclusive, of this act, has been commenced may not be alleged in an
2-41 amended pleading until the contractor, subcontractor, supplier or design
2-42 professional who performed the original construction which is alleged to
2-43 be a constructional defect has been given:
2-44 (a) Written notice in the manner required by this section; and
2-45 (b) A reasonable opportunity to repair the alleged constructional
2-46 defect in the manner provided in section 6 of this act.
2-47 6. A court shall dismiss an action commenced against a contractor,
2-48 subcontractor, supplier or design professional by a claimant who has
2-49 failed to comply with the requirements of this section.
3-1 Sec. 6. Except as otherwise provided in NRS 40.670:
3-2 1. Except as otherwise provided in NRS 40.672, a contractor who
3-3 receives notice of a constructional defect pursuant to subsection 1 of
3-4 section 5 of this act may make the repairs necessary to remedy the defects
3-5 and repair any damage or injury to the residence or appurtenance
3-6 described in the notice or arrange to have such repairs made by a
3-7 subcontractor, supplier or design professional to whom the contractor
3-8 forwarded notice of the defect pursuant to subsection 2 of section 5 of
3-9 this act. The contractor shall ensure that any such repairs are completed
3-10 within a reasonable time, but in any event:
3-11 (a) If the constructional defect is not part of a complex matter, not
3-12 later than 45 days after receiving the notice; or
3-13 (b) If the constructional defect is part of a complex matter, not later
3-14 than 90 days after receiving the notice,
3-15 unless the claimant and the contractor negotiate in good faith and agree
3-16 in writing to extend reasonably the time for completing the repairs in
3-17 which case the repairs must be completed not later than the time set forth
3-18 in the agreement.
3-19 2. In making repairs pursuant to subsection 1, the contractor or a
3-20 subcontractor, supplier or design professional who is responsible for
3-21 making the repairs shall:
3-22 (a) Make the repairs at reasonable times that are agreed to in advance
3-23 by the claimant, or by the owner of the residence or appurtenance if the
3-24 claimant is a representative of a homeowner’s association;
3-25 (b) Ensure that all of the work to make the repairs is completed by
3-26 contractors and subcontractors who are properly licensed, bonded and
3-27 insured;
3-28 (c) Take any action necessary to prevent a mechanic’s lien from being
3-29 obtained on the property of the claimant on which the repairs are being
3-30 made, to remove such a mechanic’s lien if one is obtained, and to
3-31 indemnify the claimant against any expenses incurred by the claimant
3-32 concerning such a mechanic’s lien; and
3-33 (d) Provide to the claimant a written report of each repair made, the
3-34 method used to make the repair and the parts replaced in making such
3-35 repairs within 10 days after the repairs are made.
3-36 3. The claimant shall allow the contractor and a subcontractor,
3-37 supplier or design professional who is responsible for making repairs
3-38 pursuant to subsection 1 a reasonable opportunity to make repairs
3-39 pursuant to subsection 1. A court shall dismiss an action commenced
3-40 against a contractor, subcontractor, supplier or design professional by a
3-41 claimant who has failed to comply with the requirements of this
3-42 subsection.
3-43 4. If the claimant is not satisfied with the repairs made pursuant to
3-44 subsection 1 or NRS 40.672 or the contractor does not make the repairs
3-45 or have the repairs made within the time set forth in subsection 1 or
3-46 within the time agreed to in writing by the claimant and the contractor,
3-47 the claimant may commence an action governed by NRS 40.600 to
3-48 40.695, inclusive, and sections 2 to 11, inclusive, of this act against the
3-49 contractor for a constructional defect or any damages or injuries that
4-1 were specified in the notice provided to the contractor pursuant to section
4-2 5 of this act. A claimant who is not satisfied with the repairs is required
4-3 to give additional notice pursuant to NRS 40.645 or 40.682 before
4-4 commencing such an action.
4-5 Sec. 7. 1. Except as otherwise provided in subsection 3, a
4-6 contractor who does not provide a subcontractor, supplier or design
4-7 professional with notice of a constructional defect pursuant to subsection
4-8 2 of section 5 of this act who the contractor reasonably believes is
4-9 responsible for a defect specified in the notice provided to the contractor
4-10 pursuant to subsection 1 of section 5 of this act, may not recover
4-11 attorney’s fees, costs, fees for expert witnesses or fees for consultants
4-12 from the subcontractor, supplier or design professional that are incurred
4-13 by the contractor in defending an action against the contractor for the
4-14 constructional defect pursuant to NRS 40.600 to 40.695, inclusive, and
4-15 sections 2 to 11, inclusive, of this act.
4-16 2. Except as otherwise provided in subsection 3, after a claimant files
4-17 a claim against a contractor that is governed by NRS 40.600 to 40.695,
4-18 inclusive, and sections 2 to 11, inclusive, of this act, a subcontractor,
4-19 supplier or design professional who is responsible for a constructional
4-20 defect involved in the claim and who did not receive notice of the defect
4-21 pursuant to subsection 2 of section 5 of this act or who received notice
4-22 pursuant to subsection 4 may present directly to the claimant an offer to
4-23 repair the defect. If the claimant accepts the offer, the subcontractor,
4-24 supplier or design professional repairs the defect to the satisfaction of the
4-25 claimant and the claimant provides a statement in writing to the
4-26 subcontractor, supplier or design professional indicating that the defect
4-27 was repaired to his satisfaction, the contractor against whom the claim
4-28 was filed may not pursue any claim related to the defect that was repaired
4-29 against the subcontractor, supplier or design professional who repaired
4-30 the defect.
4-31 3. Except as otherwise provided in subsection 4, the provisions of this
4-32 section do not apply to a contractor who did not give notice of the
4-33 constructional defect to the subcontractor, supplier or design
4-34 professional if the contractor could not, after a good faith effort, identify
4-35 the subcontractor, supplier or design professional who may have been
4-36 responsible for the defect within the time set forth for providing a notice
4-37 to the subcontractor, supplier or design professional.
4-38 4. If, after the expiration of the time set forth for a contractor to
4-39 provide a notice to a subcontractor, supplier or design professional
4-40 pursuant to section 5 of this act, a contractor identifies a subcontractor,
4-41 supplier or design professional who the contractor was not, after a good
4-42 faith effort, previously able to identify and who may be responsible for a
4-43 constructional defect alleged by the claimant, the contractor shall, before
4-44 commencing an action against such a subcontractor, supplier or design
4-45 professional:
4-46 (a) Provide notice to the subcontractor, supplier or design
4-47 professional in the manner provided in subsection 2 of section 5 of this
4-48 act; and
5-1 (b) Allow a reasonable opportunity for the subcontractor, supplier or
5-2 design professional to make repairs to the alleged constructional defect.
5-3 5. Subject to the provisions of subsection 2, the claimant shall allow
5-4 a subcontractor, supplier or design professional notified pursuant to
5-5 subsection 4 a reasonable opportunity to make repairs.
5-6 6. A court shall dismiss an action commenced against a
5-7 subcontractor, supplier or design professional by a contractor who has
5-8 failed to comply with the requirements of subsection 4.
5-9 Sec. 8. 1. A contractor, subcontractor, supplier or design
5-10 professional who receives notice of a constructional defect pursuant to
5-11 section 5 or 7 of this act may present the notice to an insurer who issued
5-12 a policy of insurance covering all or part of the conduct or business of
5-13 the contractor, subcontractor, supplier or design professional.
5-14 2. A notice provided to an insurer pursuant to subsection 1:
5-15 (a) Constitutes the making of a claim under the policy by the
5-16 contractor, subcontractor, supplier or design professional; and
5-17 (b) Requires the contractor, subcontractor, supplier or design
5-18 professional and the insurer to perform any obligations or duties
5-19 required by the policy upon the making of a claim.
5-20 Sec. 9. 1. A claimant is not required to provide a contractor with
5-21 notice pursuant to section 5 of this act before commencing an action
5-22 against the contractor for damages arising from a constructional defect
5-23 if:
5-24 (a) The contractor has threatened or initiated legal proceedings
5-25 against the claimant at any time;
5-26 (b) The claimant has been sued by a third party or the contractor in
5-27 connection with or resulting from a constructional defect and the
5-28 claimant is filing a third-party complaint or cross-complaint against the
5-29 contractor concerning that constructional defect; or
5-30 (c) The contractor has threatened to commit or committed an act of
5-31 violence or a criminal offense against the claimant or the property of the
5-32 claimant, or the claimant has a reasonable belief that the contractor
5-33 intends to commit an act of violence or a criminal offense against the
5-34 claimant or the property of the claimant.
5-35 2. Nothing in sections 5 to 9, inclusive, of this act affects the ability
5-36 of a claimant, contractor, subcontractor, supplier or design professional
5-37 to pursue any remedy available through the state contractors’ board
5-38 pursuant to chapter 624 of NRS.
5-39 Sec. 10. 1. Except as otherwise provided in subsection 2, in an
5-40 action pursuant to NRS 40.600 to 40.695, inclusive, and sections 2 to 11,
5-41 inclusive, of this act for the professional negligence of a design
5-42 professional or a person primarily engaged in the practice of
5-43 professional engineering, land surveying, architecture or landscape
5-44 architecture, concurrently with the service of the first pleading in an
5-45 action, the attorney for the complainant shall file an affidavit with the
5-46 court stating that the attorney:
5-47 (a) Has reviewed the facts of the case;
5-48 (b) Has consulted with an expert;
6-1 (c) Reasonably believes the expert who was consulted is
6-2 knowledgeable in the relevant discipline involved in the action; and
6-3 (d) Has concluded on the basis of his review and the consultation with
6-4 the expert that the action has a reasonable basis in law and fact.
6-5 2. The attorney for the complainant may file the affidavit required
6-6 pursuant to subsection 1 at a later time if he could not consult with an
6-7 expert and prepare the affidavit before filing the action without causing
6-8 the action to be impaired or barred by the statute of limitations or repose,
6-9 or other limitations prescribed by law. If the attorney must submit the
6-10 affidavit late, he shall file an affidavit concurrently with the service of
6-11 the first pleading in the action stating his reason for failing to comply
6-12 with subsection 1 and the attorney shall consult with an expert and file
6-13 the affidavit required pursuant to subsection 1 not later than 45 days
6-14 after filing the action.
6-15 3. In addition to the statement included in the affidavit pursuant to
6-16 subsection 1, a report must be attached to the affidavit. Except as
6-17 otherwise provided in subsection 4, the report must be prepared by the
6-18 expert consulted by the attorney and include, without limitation:
6-19 (a) The resumé of the expert;
6-20 (b) A statement that the expert is experienced in each discipline which
6-21 is the subject of the report;
6-22 (c) A copy of each nonprivileged document reviewed by the expert in
6-23 preparing his report, including, without limitation, each record, report
6-24 and related document that the expert has determined is relevant to the
6-25 allegations of negligent conduct that are the basis for the action;
6-26 (d) The conclusions of the expert and the basis for the conclusions;
6-27 and
6-28 (e) A statement that the expert has concluded that there is a
6-29 reasonable basis for filing the action.
6-30 4. In an action brought by a claimant in which an affidavit is
6-31 required to be filed pursuant to subsection 1:
6-32 (a) The report required pursuant to subsection 3 is not required to
6-33 include the information set forth in paragraphs (c) and (d) of subsection
6-34 3 if the claimant or his attorney files an affidavit, at the time that the
6-35 affidavit is filed pursuant to subsection 1, stating that he made
6-36 reasonable efforts to obtain the nonprivileged documents described in
6-37 paragraph (c) of subsection 3, but was unable to obtain such documents
6-38 before filing the action;
6-39 (b) The claimant or his attorney shall amend the report required
6-40 pursuant to subsection 3 to include any documents and information
6-41 required pursuant to paragraph (c) or (d) of subsection 3 as soon as
6-42 reasonably practicable after receiving the document or information; and
6-43 (c) The court may dismiss the action if the claimant and his attorney
6-44 fail to comply with the requirements of paragraph (b).
6-45 5. An expert consulted by an attorney to prepare an affidavit
6-46 pursuant to this section must not be a party to the action.
6-47 6. As used in this section, “expert” means a person who is licensed in
6-48 a state to engage in the practice of professional engineering, land
6-49 surveying, architecture or landscape architecture.
7-1 Sec. 11. 1. The court shall dismiss an action filed pursuant to NRS
7-2 40.600 to 40.695, inclusive, and sections 2 to 11, inclusive, of this act for
7-3 the professional negligence of a design professional or a person
7-4 primarily engaged in the practice of professional engineering, land
7-5 surveying, architecture or landscape architecture if the attorney for a
7-6 complainant fails to:
7-7 (a) File an affidavit required pursuant to section 10 of this act;
7-8 (b) File a report required pursuant to subsection 3 of section 10 of this
7-9 act; or
7-10 (c) Name the expert consulted in the affidavit required pursuant to
7-11 subsection 1 of section 10 of this act.
7-12 2. The fact that an attorney for a complainant has complied or failed
7-13 to comply with the provisions of section 10 of this act is admissible in the
7-14 action.
7-15 Sec. 12. NRS 40.600 is hereby amended to read as follows:
7-16 40.600 As used in NRS 40.600 to 40.695, inclusive, and sections 2 to
7-17 11, inclusive, of this act, unless the context otherwise requires, the words
7-18 and terms defined in NRS 40.605 to 40.630, inclusive, and sections 2 to
7-19 11, inclusive, of this act have the meanings ascribed to them in those
7-20 sections.
7-21 Sec. 13. NRS 40.645 is hereby amended to read as follows:
7-22 40.645 Except as otherwise provided in this section and NRS 40.670:
7-23 1. For a claim that is not a complex matter, if a contractor does not
7-24 take action to make repairs or attempt to make repairs pursuant to
7-25 subsection 1 of section 6 of this act within the time set forth in subsection
7-26 1 of section 6 of this act or within the time agreed to in writing by the
7-27 claimant and the contractor, at least 60 days before a claimant commences
7-28 an action against a contractor for damages arising from a constructional
7-29 defect, the claimant must give written notice by certified mail, return
7-30 receipt requested, to the contractor, at the contractor’s last known address,
7-31 specifying in reasonable detail the defects or any damages or injuries to
7-32 each residence or appurtenance that is the subject of the claim. The notice
7-33 must describe in reasonable detail the cause of the defects if the cause is
7-34 known, the nature and extent that is known of the damage or injury
7-35 resulting from the defects and the location of each defect within each
7-36 residence or appurtenance to the extent known. An expert opinion
7-37 concerning the cause of the defects and the nature and extent of the damage
7-38 or injury resulting from the defects based on a representative sample of the
7-39 components of the residences and appurtenances involved in the action
7-40 satisfies the requirements of this section. During the 45-day period after the
7-41 contractor receives the notice, on his written request, the contractor is
7-42 entitled to inspect the property that is the subject of the claim to determine
7-43 the nature and cause of the defect, damage or injury and the nature and
7-44 extent of repairs necessary to remedy the defect. The contractor shall,
7-45 before making the inspection, provide reasonable notice of the inspection
7-46 and shall make the inspection at a reasonable time. The contractor may
7-47 take reasonable steps to establish the existence of the defect.
7-48 2. If a residence or appurtenance that is the subject of the claim is
7-49 covered by a homeowner’s warranty that is purchased by or on behalf of a
8-1 claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant
8-2 shall diligently pursue a claim under the contract.
8-3 3. Within 60 days after the contractor receives [the notice,] notice
8-4 pursuant to subsection 1, the contractor shall make a written response to
8-5 the claimant. The response:
8-6 (a) Must be served to the claimant by certified mail, return receipt
8-7 requested, at the claimant’s last known address.
8-8 (b) Must respond to each constructional defect set forth in the
8-9 claimant’s notice, and describe in reasonable detail the cause of the defect,
8-10 if known, the nature and extent of the damage or injury resulting from the
8-11 defect, and, unless the response is limited to a proposal for monetary
8-12 compensation, the method, adequacy and estimated cost of any proposed
8-13 repair.
8-14 (c) May include[:
8-15 (1) A] a proposal for monetary compensation, which may include a
8-16 contribution from a subcontractor.
8-17 [(2) If the contractor or his subcontractor is licensed to make the
8-18 repairs, an agreement by the contractor or subcontractor to make the
8-19 repairs.
8-20 (3) An agreement by the contractor to cause the repairs to be made, at
8-21 the contractor’s expense, by another contractor who is licensed to make the
8-22 repairs, bonded and insured.
8-23 The repairs must be made within 45 days after the contractor receives
8-24 written notice of acceptance of the response, unless completion is delayed
8-25 by the claimant or by other events beyond the control of the contractor, or
8-26 timely completion of the repairs is not reasonably possible. The claimant
8-27 and the contractor may agree in writing to extend the periods prescribed by
8-28 this section.]
8-29 4. Not later than 15 days before the mediation required pursuant to
8-30 NRS 40.680 and upon providing 15 days’ notice, each party shall provide
8-31 the other party, or shall make a reasonable effort to assist the other party to
8-32 obtain, all relevant reports, photos, correspondence, plans, specifications,
8-33 warranties, contracts, subcontracts, work orders for repair, videotapes,
8-34 technical reports, soil and other engineering reports and other documents or
8-35 materials relating to the claim that are not privileged.
8-36 5. If the claimant is a representative of a homeowner’s association, the
8-37 association shall submit any response made by the contractor to each
8-38 member of the association.
8-39 [6. As used in this section, “subcontractor” means a contractor who
8-40 performs work on behalf of another contractor in the construction of a
8-41 residence or appurtenance.]
8-42 Sec. 14. NRS 40.650 is hereby amended to read as follows:
8-43 40.650 1. If a claimant unreasonably rejects a reasonable written
8-44 offer of settlement made as part of a response made pursuant to NRS
8-45 40.645 or 40.682 or does not permit the contractor or independent
8-46 contractor a reasonable opportunity to repair the defect pursuant to [an
8-47 accepted offer of settlement] section 6 of this act and thereafter
8-48 commences an action governed by NRS 40.600 to 40.695, inclusive, and
9-1 sections 2 to 11, inclusive, of this act, the court in which the action is
9-2 commenced may:
9-3 (a) Deny the claimant’s attorney’s fees and costs; and
9-4 (b) Award attorney’s fees and costs to the contractor.
9-5 Any sums paid under a homeowner’s warranty, other than sums paid in
9-6 satisfaction of claims that are collateral to any coverage issued to or by the
9-7 contractor, must be deducted from any recovery.
9-8 2. If a contractor fails to:
9-9 (a) Make an offer of settlement;
9-10 (b) Make a good faith response to the claim asserting no liability;
9-11 (c) Complete, in a good and workmanlike manner, the repairs [specified
9-12 in an accepted offer;] he makes pursuant to section 6 of this act;
9-13 (d) Agree to a mediator or accept the appointment of a mediator
9-14 pursuant to NRS 40.680 or subsection 4 of NRS 40.682; or
9-15 (e) Participate in mediation,
9-16 the limitations on damages and defenses to liability provided in NRS
9-17 40.600 to 40.695, inclusive, and sections 2 to 11, inclusive, of this act do
9-18 not apply and the claimant may commence an action without satisfying any
9-19 other requirement of NRS 40.600 to 40.695, inclusive [.] , and sections 2
9-20 to 11, inclusive, of this act.
9-21 3. If coverage under a homeowner’s warranty is denied by an insurer
9-22 in bad faith, the homeowner and the contractor have a right of action for
9-23 the sums that would have been paid if coverage had been provided, plus
9-24 reasonable attorney’s fees and costs.
9-25 Sec. 15. NRS 40.667 is hereby amended to read as follows:
9-26 40.667 1. Except as otherwise provided in subsection 2, a written
9-27 waiver or settlement agreement executed by a claimant after a contractor
9-28 has corrected or otherwise repaired a constructional defect does not bar a
9-29 claim for the constructional defect if it is determined that the contractor
9-30 failed to correct or repair the defect properly.
9-31 2. The provisions of subsection 1 do not apply to any written waiver or
9-32 settlement agreement described in subsection 1, unless:
9-33 (a) The claimant has obtained the opinion of an expert concerning the
9-34 constructional defect;
9-35 (b) The claimant has provided the contractor with a written notice of the
9-36 defect pursuant to NRS 40.645 [or 40.682] , 40.682 or section 5 of this act
9-37 and a copy of the expert’s opinion; and
9-38 (c) The claimant and the contractor have complied with the
9-39 requirements for inspection and repair as provided in NRS 40.600 to
9-40 40.695, inclusive [.] , and sections 2 to 11, inclusive, of this act.
9-41 3. If a claimant does not prevail in any action which is not barred
9-42 pursuant to this section, the court may:
9-43 (a) Deny the claimant’s attorney’s fees, fees for an expert witness or
9-44 costs; and
9-45 (b) Award attorney’s fees and costs to the contractor.
9-46 Sec. 16. NRS 40.682 is hereby amended to read as follows:
9-47 40.682 Except as otherwise provided in this section and NRS 40.670:
10-1 1. Notwithstanding the provisions of subsection 1 of NRS 40.680, a
10-2 claimant may commence an action in district court in a complex matter. If
10-3 the claimant commences an action in district court he shall:
10-4 (a) File and serve the summons and complaint as required by law; and
10-5 (b) [At] If a contractor does not take action to make repairs or attempt
10-6 to make repairs pursuant to subsection 1 of section 6 of this act within
10-7 the time set forth in subsection 1 of section 6 of this act or within the time
10-8 agreed to in writing by the claimant and the contractor, at the same time
10-9 and in the same manner as the claimant serves the summons and complaint
10-10 upon the contractor, serve upon the contractor a written notice specifying
10-11 in reasonable detail, to the extent known, the defects and any damages or
10-12 injuries to each residence or appurtenance that is the subject of the claim.
10-13 The notice must describe in reasonable detail each defect, the specific
10-14 location of each defect, and the nature and extent that is known of the
10-15 damage or injury resulting from each defect. If an expert opinion has been
10-16 rendered concerning the existence or extent of the defects, a written copy
10-17 of the opinion must accompany the notice. An expert opinion that specifies
10-18 each defect to the extent known, the specific location of each defect to the
10-19 extent known, and the nature and extent that is known of the damage or
10-20 injury resulting from each defect, based on a valid and reliable
10-21 representative sample of the residences and appurtenances involved in the
10-22 action, satisfies the requirements of this section.
10-23 2. The contractor shall file and serve an answer to the complaint as
10-24 required by law.
10-25 3. Not later than 30 days after the date of service of the answer to the
10-26 complaint, the contractor and claimant shall meet to establish a schedule
10-27 for:
10-28 (a) The exchange of or reasonable access for the other party to all
10-29 relevant reports, photos, correspondence, plans, specifications, warranties,
10-30 contracts, subcontracts, work orders for repair, videotapes, technical
10-31 reports, soil and other engineering reports and other documents or
10-32 materials relating to the claim that are not privileged;
10-33 (b) The inspection of the residence or appurtenance that is the subject of
10-34 the claim to evaluate the defects set forth in the notice served pursuant to
10-35 subsection 1; and
10-36 (c) The conduct of any tests that are reasonably necessary to determine
10-37 the nature and cause of a defect or any damage or injury, and the nature
10-38 and extent of repairs necessary to remedy a defect or any damage or injury.
10-39 The party conducting the test shall provide reasonable notice of the test to
10-40 all other parties and conduct the test at a reasonable time.
10-41 4. At the meeting held pursuant to subsection 3, the claimant and
10-42 contractor shall:
10-43 (a) Establish a schedule for the addition of any additional parties to the
10-44 complaint or to file any third-party complaint against an additional party
10-45 who may be responsible for all or a portion of the defects set forth in the
10-46 notice served pursuant to subsection 1;
10-47 (b) Unless the claimant and contractor agree otherwise in writing, select
10-48 a mediator and proceed with mediation as provided in subsections 2 to 6,
10-49 inclusive, of NRS 40.680; and
11-1 (c) If the claimant and contractor agree, select a special master and
11-2 jointly petition the court for his appointment pursuant to subsection 7.
11-3 5. Each party added to the complaint or against whom a third-party
11-4 complaint is filed pursuant to subsection 4 shall file and serve an answer as
11-5 required by law.
11-6 6. If the claimant or contractor adds a party to the complaint or files a
11-7 third-party complaint, then not later than 60 days after the date determined
11-8 pursuant to paragraph (a) of subsection 4, the contractor, claimant and each
11-9 party added to the complaint or against whom a third-party complaint is
11-10 filed shall meet to establish a schedule for the activities set forth in
11-11 paragraphs (a), (b) and (c) of subsection 3.
11-12 7. If a special master has not been appointed, the contractor, claimant
11-13 or a party added to the complaint or against whom a third-party complaint
11-14 is filed may petition the court for the appointment of a special master at
11-15 any time after the meeting held pursuant to subsection 3. The special
11-16 master may:
11-17 (a) Take any action set forth in subsection 4 of NRS 40.680;
11-18 (b) Exercise any power set forth in Rule 53 of the Nevada Rules of Civil
11-19 Procedure; and
11-20 (c) Subject to the provisions of NRS 40.680, if the parties fail to
11-21 establish a schedule or determine a date as required in subsection 3, 4 or 6,
11-22 establish the schedule or determine the date.
11-23 8. Unless the mediation required pursuant to paragraph (b) of
11-24 subsection 4 is completed or the contractor and claimant have agreed in
11-25 writing not to mediate the claim pursuant to paragraph (b) of subsection 4,
11-26 a party shall not propound interrogatories or requests for admission, take a
11-27 deposition or file a motion that is dispositive of the action except:
11-28 (a) Upon agreement of the parties; or
11-29 (b) With the prior approval of the court or special master.
11-30 9. If a residence or appurtenance that is the subject of the claim is
11-31 covered by a homeowner’s warranty that is purchased by or on behalf of a
11-32 claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant
11-33 shall diligently pursue a claim under the contract.
11-34 10. Unless the parties agree otherwise, not less than 60 days before the
11-35 date of the mediation pursuant to paragraph (b) of subsection 4 is
11-36 convened, the contractor shall make a written response to the claimant that
11-37 meets the requirements set forth in subsection 3 of NRS 40.645.
11-38 11. If the claimant is a representative of a homeowner’s association,
11-39 the association shall submit any response made by the contractor to each
11-40 member of the association in writing not more than 30 days after the date
11-41 the claimant receives the response.
11-42 12. The claimant shall respond to the written response of the contractor
11-43 within 45 days after the response of the contractor is mailed to the
11-44 claimant.
11-45 Sec. 17. NRS 40.688 is hereby amended to read as follows:
11-46 40.688 1. If a claimant attempts to sell a residence that is or has been
11-47 the subject of a claim governed by NRS 40.600 to 40.695, inclusive, and
11-48 sections 2 to 11, inclusive, of this act or the subject of a notice given
11-49 pursuant to section 5 of this act, he shall disclose, in writing, to any
12-1 prospective purchaser of the residence, not less than 30 days before the
12-2 close of escrow for the sale of the residence or, if escrow is to close less
12-3 than 30 days after the execution of the sales agreement, then immediately
12-4 upon the execution of the sales agreement or, if a claim is initiated or a
12-5 notice is given less than 30 days before the close of escrow, within 24
12-6 hours after giving written notice to the contractor pursuant to section 5 of
12-7 this act, subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682:
12-8 (a) All notices given by the claimant to the contractor pursuant to NRS
12-9 40.600 to 40.695, inclusive, and sections 2 to 11, inclusive, of this act that
12-10 are related to the residence;
12-11 (b) All opinions the claimant has obtained from experts regarding a
12-12 constructional defect that is or has been the subject of the claim;
12-13 (c) The terms of any settlement, order or judgment relating to the claim;
12-14 and
12-15 (d) A detailed report of all repairs made to the residence by or on behalf
12-16 of the claimant as a result of a constructional defect that is or has been the
12-17 subject of the claim.
12-18 2. Before taking any action on a claim pursuant to NRS 40.600 to
12-19 40.695, inclusive, and sections 2 to 11, inclusive, of this act or giving
12-20 notice pursuant to section 5 of this act, the attorney for a claimant shall
12-21 notify the claimant in writing of the provisions of this section.
12-22 Sec. 18. NRS 40.692 is hereby amended to read as follows:
12-23 40.692 [If,] Except as otherwise provided in sections 5 and 7 of this
12-24 act, if after complying with the procedural requirements of sections 5 and
12-25 7 of this act and NRS 40.645 and 40.680, or NRS 40.682, a claimant
12-26 proceeds with an action for damages arising from a constructional defect:
12-27 1. The claimant and each contractor who is named in the original
12-28 complaint when the action is commenced are not required, while the action
12-29 is pending, to comply with the requirements of sections 5 and 7 of this act,
12-30 NRS 40.645 or 40.680, or NRS 40.682, for any constructional defect that
12-31 the claimant includes in an amended complaint, if the constructional
12-32 defect:
12-33 (a) Is attributable, in whole or in part, to such a contractor;
12-34 (b) Is located on the same property described in the original complaint;
12-35 and
12-36 (c) Was not discovered before the action was commenced provided that
12-37 a good faith effort had been undertaken by the claimant.
12-38 2. The claimant is not required to give written notice of a defect
12-39 pursuant to subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682 to
12-40 any person who is joined to or intervenes in the action as a party after it is
12-41 commenced. If such a person becomes a party to the action:
12-42 (a) For the purposes of subsection 1 of NRS 40.645 or subsection 1 of
12-43 NRS 40.682, the person shall be deemed to have been given notice of the
12-44 defect by the claimant on the date on which the person becomes a party to
12-45 the action; and
12-46 (b) The provisions of NRS 40.600 to 40.695, inclusive, apply to the
12-47 person after that date.
13-1 Sec. 19. NRS 40.695 is hereby amended to read as follows:
13-2 40.695 1. Except as otherwise provided in subsection 2, statutes of
13-3 limitation or repose applicable to a claim based on a constructional defect
13-4 governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 11,
13-5 inclusive, of this act are tolled from the time notice of the claim is given[,]
13-6 or notice of a defect, damage or injury is given pursuant to section 5 of
13-7 this act, until 30 days after mediation is concluded or waived in writing
13-8 pursuant to NRS 40.680 or subsection 4 of NRS 40.682.
13-9 2. Tolling under this section applies [:
13-10 (a) Only to a claim that is not a complex matter.
13-11 (b) To] to a third party regardless of whether the party is required to
13-12 appear in the proceeding.
13-13 Sec. 20. Chapter 113 of NRS is hereby amended by adding thereto a
13-14 new section to read as follows:
13-15 1. Each contractor who develops, constructs or landscapes a new
13-16 residence shall, within 30 days after the close of escrow of the initial
13-17 purchase of the residence, provide in writing to the initial purchaser of
13-18 the residence:
13-19 (a) The name, license number, business address and telephone
13-20 number of each subcontractor who performed any work related to the
13-21 development, construction or landscaping of the residence; and
13-22 (b) A brief description so the work performed by each subcontractor
13-23 identified pursuant to paragraph (a).
13-24 2. As used in this section, “subcontractor” has the meaning ascribed
13-25 to it in section 3 of this act.
13-26 Sec. 21. Chapter 116 of NRS is hereby amended by adding thereto the
13-27 provisions set forth as sections 22 to 25, inclusive, of this act.
13-28 Sec. 22. 1. A person shall not provide or offer to provide anything
13-29 of monetary value to a property manager of an association or to a
13-30 member or officer of an executive board to induce the property manager,
13-31 member or officer to encourage or discourage the association to file a
13-32 claim for damages arising from a constructional defect.
13-33 2. A property manager shall not accept anything of value given to
13-34 him in exchange for encouraging or discouraging the association that he
13-35 manages to file a claim for damages arising from a constructional defect.
13-36 3. A member or officer of an executive board shall not accept
13-37 anything of value given to him in exchange for encouraging or
13-38 discouraging the association of which he is a member or officer of the
13-39 executive board to file a claim for damages arising from a constructional
13-40 defect.
13-41 4. If a property manager violates the provisions of this section:
13-42 (a) The real estate division of the department of business and industry
13-43 shall suspend or revoke his permit to engage in property management
13-44 issued pursuant to chapter 645 of NRS, if he has been issued such a
13-45 permit; and
13-46 (b) The real estate commission shall suspend or revoke his certificate
13-47 issued pursuant to NRS 116.31139, if he has been issued such a
13-48 certificate.
14-1 5. If a member or officer of an executive board violates the
14-2 provisions of this section, the executive board shall remove the officer or
14-3 member from the board.
14-4 6. Any person who willfully violates the provisions of this section is
14-5 guilty of a misdemeanor.
14-6 7. As used in this section, “constructional defect” has the meaning
14-7 ascribed to it in NRS 40.615.
14-8 Sec. 23. 1. An association may bring an action to recover damages
14-9 resulting from constructional defects in any of the units, common
14-10 elements or limited common elements of the common-interest
14-11 community, or submit such a claim to mediation pursuant to NRS
14-12 40.680, only:
14-13 (a) If the association first obtains the written approval of each unit’s
14-14 owner whose unit or interest in the common elements or limited common
14-15 elements will be the subject of the action or claim;
14-16 (b) Upon a vote of the units’ owners to which at least a majority of the
14-17 votes of the members of the association are allocated; and
14-18 (c) Upon a vote of the executive board of the association.
14-19 2. If an action is brought by an association to recover damages
14-20 resulting from constructional defects in any of the units, common
14-21 elements or limited common elements of the common-interest
14-22 community, or such a claim is submitted to mediation pursuant to NRS
14-23 40.680, the attorney representing the association shall provide to the
14-24 executive board of the association and to each unit’s owner a statement
14-25 that includes, in reasonable detail:
14-26 (a) The defects and damages or injuries to the units, common
14-27 elements or limited common elements;
14-28 (b) The cause of the defects, if the cause is known;
14-29 (c) The nature and the extent that is known of the damage or injury
14-30 resulting from the defects;
14-31 (d) The location of each defect within the units, common elements or
14-32 limited common elements, if known;
14-33 (e) A reasonable estimate of the cost of the action or mediation,
14-34 including reasonable attorney’s fees;
14-35 (f) An explanation of the potential benefits of the action or mediation
14-36 and the potential adverse consequences if the association does not
14-37 commence the action or submit the claim to mediation or if the outcome
14-38 is not favorable to the association; and
14-39 (g) All disclosures that are required to be made upon the sale of the
14-40 property.
14-41 3. An association or an attorney for an association shall not employ
14-42 a person to perform destructive tests to determine any damage or injury
14-43 to a unit, common element or limited common element caused by a
14-44 constructional defect unless:
14-45 (a) The person is licensed as a contractor pursuant to chapter 624 of
14-46 NRS;
14-47 (b) The association has obtained the prior written approval of each
14-48 unit’s owner whose unit or interest in the common element or limited
14-49 common element will be affected by such testing;
15-1 (c) The person has provided a written schedule for repairs;
15-2 (d) The person is required to repair all damage resulting from such
15-3 tests in accordance with state laws and local ordinances relating thereto;
15-4 and
15-5 (e) The association or the person so employed obtains all permits
15-6 required to conduct such tests and to repair any damage resulting from
15-7 such tests.
15-8 4. As used in this section, “constructional defect” has the meaning
15-9 ascribed to it in NRS 40.615.
15-10 Sec. 24. 1. Except as otherwise provided in subsection 2 and
15-11 section 23 of this act, an association may commence a civil action only
15-12 upon a vote or written agreement of the owners of the units to which at
15-13 least a majority of the votes of the members of the association are
15-14 allocated. In such a case, the association shall provide written notice to
15-15 the owner of each unit of the meeting at which the commencement of a
15-16 civil action is to be considered or action is to be taken within 21 calendar
15-17 days before the meeting.
15-18 2. The provisions of subsection 1 do not apply to a civil action that is
15-19 commenced:
15-20 (a) By an association for a time-share project governed by the
15-21 provisions of chapter 119A of NRS;
15-22 (b) To enforce the payment of an assessment;
15-23 (c) To enforce the declaration, bylaws or rules of the association;
15-24 (d) To proceed with a counterclaim; or
15-25 (e) To enforce or rescind a contract to which the association is a
15-26 party.
15-27 Sec. 25. 1. Notwithstanding any other provision of this chapter, the
15-28 executive board of an association may, without giving notice to the units’
15-29 owners, employ a contractor licensed pursuant to the provisions of
15-30 chapter 624 of NRS and such other persons as are necessary to make
15-31 such repairs to a unit or common element within the common-interest
15-32 community as are required to protect the health, safety and welfare of the
15-33 units’ owners.
15-34 2. If the governing documents of the association require such action
15-35 to be taken at a meeting of the executive board of the association, the
15-36 executive board shall, within 90 days after employing any person
15-37 pursuant to subsection 1, provide written notice to the units’ owners of its
15-38 action and include the action on the agenda of its next regularly
15-39 scheduled meeting.
15-40 Sec. 26. NRS 116.1203 is hereby amended to read as follows:
15-41 116.1203 1. Except as otherwise provided in subsection 2, if a
15-42 planned community contains no more than 12 units and is not subject to
15-43 any developmental rights, it is subject only to NRS 116.1105, 116.1106
15-44 and 116.1107 unless the declaration provides that this entire chapter is
15-45 applicable.
15-46 2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,
15-47 NRS 116.3101 to 116.3119, inclusive, and section 14 of Assembly Bill No.
15-48 621 of this session and sections 22 to 25, inclusive, of this act and
15-49 116.110305 to 116.110393, inclusive, to the extent necessary in construing
16-1 any of those sections, apply to a residential planned community containing
16-2 more than six units.
16-3 Sec. 27. NRS 116.31139 is hereby amended to read as follows:
16-4 116.31139 1. An association may employ a person engaged in
16-5 property management for the common-interest community.
16-6 2. Except as otherwise provided in this section, a person engaged in
16-7 property management for a common-interest community must:
16-8 (a) Hold a permit to engage in property management that is issued
16-9 pursuant to the provisions of chapter 645 of NRS; or
16-10 (b) Hold a certificate issued by the real estate commission pursuant to
16-11 subsection 3.
16-12 3. The real estate commission shall provide by regulation for the
16-13 issuance of certificates for the management of common-interest
16-14 communities to persons who are not otherwise authorized to engage in
16-15 property management pursuant to the provisions of chapter 645 of NRS.
16-16 The regulations:
16-17 (a) Must establish the qualifications for the issuance of such a
16-18 certificate, including the education and experience required to obtain such
16-19 a certificate;
16-20 (b) May require applicants to pass an examination in order to obtain a
16-21 certificate;
16-22 (c) Must establish standards of practice for persons engaged in property
16-23 management for a common-interest community;
16-24 (d) Must establish the grounds for initiating disciplinary action against a
16-25 person to whom a certificate has been issued, including, without limitation,
16-26 the grounds for placing conditions, limitations or restrictions on a
16-27 certificate and for the suspension or revocation of a certificate; and
16-28 (e) Must establish rules of practice and procedure for conducting
16-29 disciplinary hearings.
16-30 The real estate division of the department of business and industry may
16-31 investigate the property managers to whom certificates have been issued to
16-32 ensure their compliance with section 22 of this act and the standards of
16-33 practice adopted pursuant to this subsection and collect a fee for the
16-34 issuance of a certificate by the commission in an amount not to exceed the
16-35 administrative costs of issuing the certificate.
16-36 4. The provisions of subsection 2 do not apply to:
16-37 (a) A person who is engaged in property management for a common-
16-38 interest community on October 1, 1999, and is granted an exemption from
16-39 the requirements of subsection 2 by the administrator upon demonstration
16-40 that he is qualified and competent to engage in property management for a
16-41 common-interest community.
16-42 (b) A financial institution.
16-43 (c) An attorney licensed to practice in this state.
16-44 (d) A trustee.
16-45 (e) An employee of a corporation who manages only the property of the
16-46 corporation.
16-47 (f) A declarant.
16-48 (g) A receiver.
17-1 5. As used in this section, “property management” means the physical,
17-2 administrative or financial maintenance and management of real property,
17-3 or the supervision of those activities for a fee, commission or other
17-4 compensation or valuable consideration.
17-5 Sec. 28. NRS 116.3115 is hereby amended to read as follows:
17-6 116.3115 1. Until the association makes an assessment for common
17-7 expenses, the declarant shall pay all common expenses. After an
17-8 assessment has been made by the association, assessments must be made at
17-9 least annually, based on a budget adopted at least annually by the
17-10 association in accordance with the requirements set forth in NRS
17-11 116.31151. Except for an association for a time-share project governed by
17-12 the provisions of chapter 119A of NRS, and unless the declaration imposes
17-13 more stringent standards, the budget must include a budget for the daily
17-14 operation of the association and the money for the reserve required by
17-15 paragraph (b) of subsection 2.
17-16 2. Except for assessments under subsections 4 to 7, inclusive:
17-17 (a) All common expenses, including a reserve, must be assessed against
17-18 all the units in accordance with the allocations set forth in the declaration
17-19 pursuant to subsections 1 and 2 of NRS 116.2107.
17-20 (b) The association shall establish an adequate reserve, funded on a
17-21 reasonable basis, for the repair, replacement and restoration of the major
17-22 components of the common elements. The reserve may be used only for
17-23 those purposes, including, without limitation, repairing, replacing and
17-24 restoring roofs, roads and sidewalks, and must not be used for daily
17-25 maintenance.
17-26 3. Any past due assessment for common expenses or installment
17-27 thereof bears interest at the rate established by the association not
17-28 exceeding 18 percent per year.
17-29 4. To the extent required by the declaration:
17-30 (a) Any common expense associated with the maintenance, repair,
17-31 restoration or replacement of a limited common element must be assessed
17-32 against the units to which that limited common element is assigned,
17-33 equally, or in any other proportion the declaration provides;
17-34 (b) Any common expense or portion thereof benefiting fewer than all of
17-35 the units must be assessed exclusively against the units benefited; and
17-36 (c) The costs of insurance must be assessed in proportion to risk and the
17-37 costs of utilities must be assessed in proportion to usage.
17-38 5. Assessments to pay a judgment against the association may be made
17-39 only against the units in the common-interest community at the time the
17-40 judgment was entered, in proportion to their liabilities for common
17-41 expenses.
17-42 6. If any common expense is caused by the misconduct of any unit’s
17-43 owner, the association may assess that expense exclusively against his unit.
17-44 7. The association of a common-interest community created before
17-45 January 1, 1992, is not required to make an assessment against a vacant lot
17-46 located within the community that is owned by the declarant.
17-47 8. If liabilities for common expenses are reallocated, assessments for
17-48 common expenses and any installment thereof not yet due must be
17-49 recalculated in accordance with the reallocated liabilities.
18-1 9. The association shall provide written notice to the owner of each
18-2 unit of a meeting at which an assessment for a capital improvement [or the
18-3 commencement of a civil action] is to be considered or action is to be taken
18-4 on such an assessment at least 21 calendar days before the meeting.
18-5 [Except as otherwise provided in this subsection, the association may
18-6 commence a civil action only upon a vote or written agreement of the
18-7 owners of units to which at least a majority of the votes of the members of
18-8 the association are allocated. The provisions of this subsection do not apply
18-9 to a civil action that is commenced:
18-10 (a) By an association for a time-share project governed by the
18-11 provisions of chapter 119A of NRS;
18-12 (b) To enforce the payment of an assessment;
18-13 (c) To enforce the declaration, bylaws or rules of the association;
18-14 (d) To proceed with a counterclaim; or
18-15 (e) To protect the health, safety and welfare of the members of the
18-16 association. If a civil action is commenced pursuant to this paragraph
18-17 without the required vote or agreement, the action must be ratified within
18-18 90 days after the commencement of the action by a vote or written
18-19 agreement of the owners of the units to which at least a majority of votes of
18-20 the members of the association are allocated. If the association, after
18-21 making a good faith effort, cannot obtain the required vote or agreement to
18-22 commence or ratify such a civil action, the association may thereafter seek
18-23 to dismiss the action without prejudice for that reason only if a vote or
18-24 written agreement of the owners of the units to which at least a majority of
18-25 votes of the members of the association are allocated was obtained at the
18-26 time the approval to commence or ratify the action was sought.
18-27 10. At least 10 days before an association commences or seeks to
18-28 ratify the commencement of a civil action, the association shall provide a
18-29 written statement to all units’ owners that includes:
18-30 (a) A reasonable estimate of the costs of the civil action, including
18-31 reasonable attorney’s fees;
18-32 (b) An explanation of the potential benefits of the civil action and the
18-33 potential adverse consequences if the association does not commence the
18-34 action or if the outcome of the action is not favorable to the association;
18-35 and
18-36 (c) All disclosures that are required to be made upon the sale of the
18-37 property.
18-38 11. No person other than a unit’s owner may request the dismissal of a
18-39 civil action commenced by the association on the ground that the
18-40 association failed to comply with any provision of this section.]
18-41 Sec. 29. NRS 119A.165 is hereby amended to read as follows:
18-42 119A.165 1. If a matter governed by this chapter is also governed by
18-43 chapter 116 of NRS, compliance with the provisions of chapter 116 of
18-44 NRS governing the matter which are in addition to or different from the
18-45 provisions in this chapter governing the same matter is not required. In the
18-46 event of a conflict between provisions of this chapter and chapter 116 of
18-47 NRS, the provisions of this chapter prevail.
18-48 2. Without limiting the generality of subsection 1, the provisions of
18-49 NRS 116.11145, 116.12065, 116.3103, 116.31031, 116.31034, 116.3106,
19-1 116.31065, 116.3108 to 116.311, inclusive, 116.31139, 116.31145 to
19-2 116.31158, inclusive, 116.31162, 116.31175, 116.31177, 116.41095 and
19-3 116.4117 and section 22 of this act do not apply to a time share or a time-
19-4 share project.
19-5 Sec. 30. Chapter 278 of NRS is hereby amended by adding thereto the
19-6 provisions set forth as sections 31 and 32 of this act.
19-7 Sec. 31. 1. Except as otherwise provided in this subsection, the
19-8 governing body of each city and county shall not accept an application
19-9 for a building permit for a project that includes the construction of new
19-10 footings or a new foundation for a structure or that requires excavation
19-11 or embankment of more than 5,000 cubic yards of earth, unless the
19-12 application is submitted with a geotechnical report. The governing body
19-13 may waive the requirement of the geotechnical report for any project
19-14 other than a project involving a residential dwelling unit.
19-15 2. The geotechnical report required pursuant to subsection 1 must
19-16 include:
19-17 (a) Information concerning the soil and geology of the site where the
19-18 project will be carried out;
19-19 (b) Information concerning the ground water on the site where the
19-20 project will be carried out and the potential that the ground water may
19-21 adversely affect the foundation of the project;
19-22 (c) A written statement from the architect, civil engineer or structural
19-23 engineer who was responsible for the design of the project verifying that
19-24 the design of the project is compatible with the geotechnical conditions
19-25 described in paragraphs (a) and (b);
19-26 (d) A written statement from a geotechnical engineer who has
19-27 reviewed the plans for the grading and foundation of the project
19-28 verifying that the project is geotechnically in compliance with the
19-29 geotechnical conditions of the site as described in paragraphs (a) and
19-30 (b); and
19-31 (e) Any other information required by the governing body.
19-32 3. The governing body of each city and county shall require by
19-33 ordinance the submission of a final report concerning grading of the
19-34 property, the elevation of the finished floor and the drainage on the
19-35 property for each construction project for which a geotechnical report is
19-36 required pursuant to subsection 1.
19-37 4. The ordinance adopted pursuant to subsection 3 must require:
19-38 (a) The final report concerning grading of the property to include
19-39 certification that the grading and the excavating or embanking work
19-40 complies with the requirements set forth in the geotechnical report
19-41 completed pursuant to subsection 1 and any supplements or addenda to
19-42 the report;
19-43 (b) The final report concerning the elevation of the finished floor to
19-44 include certification that the lowest elevation of the finished floor of the
19-45 project that is habitable complies with the plans for the project that were
19-46 approved by the governing body; and
19-47 (c) The final report concerning the drainage on the property to
19-48 include:
20-1 (1) A statement that the conditions of the drainage system on the
20-2 site of the project at the completion of the project complies with the plan
20-3 for drainage or the plan for the plot and grading that was approved by
20-4 the governing body; and
20-5 (2) If the plans for the project that were approved by the governing
20-6 body required a drainage system or facilities, structures or devices for
20-7 drainage that were designed by an engineer, verification from a civil
20-8 engineer that the drainage system and any facilities, structures or devices
20-9 for drainage were installed and constructed in compliance with those
20-10 plans. Devices for drainage include, without limitation, detention of
20-11 drainage on the site, drainage from one lot to another lot and devices for
20-12 conveying drainage.
20-13 5. The governing body of each city and county shall adopt an
20-14 ordinance that requires a developer to provide a person who purchases a
20-15 completed construction project described in subsection 1 with a written
20-16 report concerning the applicable building codes and regulations and any
20-17 recommendations of a geotechnical engineer and a civil engineer
20-18 concerning the use of the project. The ordinance must provide that this
20-19 report is part of the sales documents that must be acknowledged by the
20-20 buyer.
20-21 6. As used in this section, “residential dwelling unit” has the
20-22 meaning ascribed to it in NRS 278.4977.
20-23 Sec. 32. The governing body of each city and county shall adopt
20-24 ordinances to ensure the prevention and mitigation of harm to a building
20-25 or structure caused by water that is standing under the building or
20-26 structure.
20-27 Sec. 33. NRS 278.010 is hereby amended to read as follows:
20-28 278.010 As used in NRS 278.010 to 278.630, inclusive, and sections
20-29 31 and 32 of this act, unless the context otherwise requires, the words and
20-30 terms defined in NRS 278.0105 to 278.0195, inclusive, have the meanings
20-31 ascribed to them in those sections.
20-32 Sec. 34. The amendatory provisions of this act do not apply to a claim
20-33 initiated or an action commenced pursuant to NRS 40.600 to 40.695,
20-34 inclusive, and sections 2 to 11, inclusive, of this act, unless the claim was
20-35 initiated or the action was commenced on or after the effective date of this
20-36 act.
20-37 Sec. 35. This act becomes effective upon passage and approval.
20-38 H