(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINT S.B. 516
Senate Bill No. 516–Committee on Commerce and Labor
March 26, 2001
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes concerning contractors and constructional defects. (BDR 54‑1452)
FISCAL NOTE: Effect on Local Government: Yes.
~
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).
AN ACT relating to real property; requiring a claimant to present a claim of a constructional defect to the state contractors’ board for review and investigation before commencing an action based upon the claim; revising provisions governing the duties of the state contractors’ board to require the board to review and investigate a claim of a constructional defect; requiring a contractor to disclose certain information to the purchaser of a new residence; revising the definition of a constructional defect; eliminating mandatory mediation and revising procedures in cases involving a constructional defect; revising provisions concerning common-interest communities; requiring the governing body of each city and county to require a geotechnical report as a condition to obtaining a building permit and additional information concerning a completed project; requiring certain information to be provided to a purchaser of a construction project; providing a penalty; and providing other matters properly relating thereto.
Whereas, The State of Nevada is the fastest growing state in the nation; and
Whereas, As a result, Nevada is experiencing an increase in new home construction to meet the demands of its increasing population; and
Whereas, Every resident of this state deserves to live in a safe home that is free from hazardous defects; and
Whereas, On occasion, during the course of new home construction, mistakes may be made resulting in construction defects; and
Whereas, The legislature wishes to encourage builders to repair identified construction defects in a timely and responsible manner; and
Whereas, To accomplish this goal, homeowners and builders need to cooperate with each other and allow builders an opportunity to repair identified defects; and
Whereas, The legislature further wishes to encourage homeowners and builders to resolve allegations of construction defects in a manner which avoids litigating in an overburdened court system; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 624 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. As used in sections 2 to 10, inclusive, of this act, unless the
1-4 context otherwise requires, the words and terms defined in section 3 to 6,
1-5 inclusive, of this act have the meanings ascribed to them in those
1-6 sections.
1-7 Sec. 3. “Claimant” has the meaning ascribed to it in NRS 40.610.
1-8 Sec. 4. “Constructional defect” has the meaning ascribed to it in
1-9 NRS 40.615.
1-10 Sec. 5. “Contractor” has the meaning ascribed to it in NRS 40.620.
1-11 Sec. 6. “Subcontractor” has the meaning ascribed to it in section 20
1-12 of this act.
1-13 Sec. 7. 1. The board shall review each claim of a constructional
1-14 defect submitted to it pursuant to NRS 40.680.
1-15 2. A claim of a constructional defect is properly presented to the
1-16 board by submitting a copy of the written notice of constructional defects
1-17 provided to a contractor by a claimant pursuant to subsection 1 of NRS
1-18 40.645 or subsection 1 of NRS 40.682.
1-19 3. After a claimant has presented a claim to the board pursuant to
1-20 subsection 2, a contractor shall immediately provide:
1-21 (a) A copy of his response to the claimant’s written notice of
1-22 constructional defects that he prepared pursuant to NRS 40.645 or
1-23 40.682, as applicable, to the board;
1-24 (b) A written summary identifying each subcontractor who the
1-25 contractor reasonably believes performed the original construction which
1-26 is alleged to be a constructional defect; and
1-27 (c) A written notice that a claimant has submitted a claim to the board
1-28 for review pursuant to subsection 2 to each subcontractor who the
1-29 contractor has identified as having performed the original construction
1-30 which is alleged to be a constructional defect.
1-31 4. The board shall investigate each claim submitted to the board
1-32 pursuant to subsection 1. The investigation must be completed within 30
1-33 days after the claim is submitted to the board pursuant to subsection 2.
1-34 5. Upon completion of the investigation, the board shall issue an
1-35 advisory opinion concerning the claim of a constructional defect not
1-36 later than 2 weeks after the investigation is completed.
1-37 Sec. 8. As part of the investigation conducted pursuant to section 7
1-38 of this act, the board may hold a hearing on a claim of a constructional
1-39 defect submitted to the board pursuant to section 7 of this act after giving
1-40 notice of the time, place and nature of the hearing:
1-41 1. If the board, in its discretion, determines that a hearing is
1-42 necessary; or
1-43 2. Upon the written request of:
1-44 (a) The claimant;
1-45 (b) The contractor; or
2-1 (c) A subcontractor who the contractor has identified pursuant to
2-2 section 7 of this act as having performed the original construction which
2-3 is alleged to be a constructional defect.
2-4 Sec. 9. 1. If the board issues an advisory opinion pursuant to
2-5 section 7 of this act that is, at least in part, favorable to the claimant, the
2-6 board shall send a written order by certified mail to the contractor and to
2-7 the last known address of each subcontractor, if any, who has been
2-8 notified of the claim pursuant to section 7 of this act and who has been
2-9 identified by the contractor as having performed the original
2-10 construction which, in the opinion of the board, constitutes a
2-11 constructional defect, directing the contractor and subcontractor, if
2-12 applicable, to make repairs consistent with the order of the board
2-13 pursuant to this section.
2-14 2. A subcontractor who receives a written order from the board
2-15 pursuant to subsection 1, shall, within 10 days after receiving the notice,
2-16 provide written notice to the board, the contractor and the claimant
2-17 indicating whether the subcontractor, at the subcontractor’s expense,
2-18 will comply with the order by making the repairs specified in the order. If
2-19 a subcontractor provides a written notice of intent to comply with an
2-20 order pursuant to this section, except as otherwise provided in subsection
2-21 6, the subcontractor must complete the repairs in the time specified by
2-22 the board in the order.
2-23 3. A contractor who receives a written order pursuant to subsection 1
2-24 shall make repairs, at the contractor’s expense, if the contractor is
2-25 licensed to make the repairs, or cause the repairs to be made, at the
2-26 contractor’s expense, by another contractor who is licensed to make the
2-27 repairs, bonded and insured, if a subcontractor who was sent a written
2-28 order pursuant to subsection 1:
2-29 (a) Fails to provide a written notice of intent to comply with the order
2-30 of the board within the time specified in the order pursuant to subsection
2-31 2;
2-32 (b) Provides a timely written response to the order of the board
2-33 indicating a refusal to make the repairs specified in the order; or
2-34 (c) Fails, within the time specified in the order of the board, to make
2-35 repairs or cause repairs to be made after providing a written notice of
2-36 intent to comply with the order of the board.
2-37 4. Except as otherwise provided in subsection 6, any repairs ordered
2-38 pursuant to this section must be completed within the time provided by
2-39 the board in the order.
2-40 5. The order is effective upon such service, unless the board orders
2-41 otherwise.
2-42 6. A contractor or subcontractor may petition the board, by written
2-43 request supported by an affidavit of the contractor or subcontractor, for
2-44 an extension of the time for completion of repairs if completion is
2-45 delayed by:
2-46 (a) The claimant;
2-47 (b) A subcontractor who has failed to make repairs or cause repairs to
2-48 be made after providing a notice of intent to comply with the order of the
2-49 board pursuant to subsection 2; or
3-1 (c) Other events beyond the control of the contractor or subcontractor,
3-2 or if timely completion of the repairs is not reasonably possible.
3-3 7. For the purpose of judicial review, an order of the board pursuant
3-4 to this section is a final order as to the contractor and each subcontractor
3-5 who has received notice that a claim has been submitted to the board for
3-6 review pursuant to section 7 of this act.
3-7 8. If the board orders a contractor or subcontractor to make repairs
3-8 or cause repairs to be made pursuant to this section, the claimant shall,
3-9 upon reasonable notice from the contractor or subcontractor, allow the
3-10 contractor or subcontractor reasonable access to the residence or
3-11 appurtenance to make repairs or cause the repairs to be made.
3-12 9. If a claimant prevents a contractor or subcontractor from making
3-13 repairs which have been ordered by the board pursuant to this section,
3-14 the claimant may not recover damages in any subsequent action filed
3-15 pursuant to NRS 40.680:
3-16 (a) Associated with the defect that the contractor or subcontractor was
3-17 prevented from repairing; or
3-18 (b) For damage to other parts of the residence or appurtenance that is
3-19 the proximate result of the refusal of the claimant to allow a contractor
3-20 or subcontractor to make repairs pursuant to this section.
3-21 10. As used in this section:
3-22 (a) “Appurtenance” has the meaning ascribed to it in NRS 40.605.
3-23 (b) “Residence” has the meaning ascribed to it in NRS 40.630.
3-24 Sec. 10. The board shall adopt regulations to carry out the
3-25 provisions of sections 2 to 10, inclusive, of this act that must include,
3-26 without limitation:
3-27 1. The standards to be used in reviewing a claim of a constructional
3-28 defect;
3-29 2. The form in which the advisory opinion of the board concerning a
3-30 claim will be issued;
3-31 3. The procedures which the parties to a claim and the board must
3-32 follow during the review process, that are consistent with the provisions
3-33 of chapter 233B of NRS; and
3-34 4. Any other rules and procedures reasonably necessary for the
3-35 board to carry out its duties pursuant to sections 2 to 10, inclusive, of this
3-36 act.
3-37 Sec. 11. A contractor who develops, constructs or landscapes a new
3-38 residence shall, not later than 30 days after the close of escrow of the
3-39 initial purchase of the residence, provide in writing to the initial
3-40 purchaser of the residence:
3-41 1. The name, license number, business address and telephone
3-42 number of each subcontractor who performed any work related to such
3-43 development, construction or landscaping of the residence; and
3-44 2. A brief description of the work performed by each subcontractor
3-45 identified in subsection 1.
3-46 Sec. 12. NRS 624.020 is hereby amended to read as follows:
3-47 624.020 1. [For the purpose of] As used in this chapter, [“contractor”
3-48 is synonymous with “builder.”
4-1 2. Within the meaning of this chapter, a contractor is] unless the
4-2 context otherwise requires, “contractor”:
4-3 (a) Means any person, except a registered architect or a licensed
4-4 professional engineer, acting solely in his professional capacity, who in any
4-5 capacity other than as the employee of another with wages as the sole
4-6 compensation, undertakes to, or offers to undertake to, or purports to have
4-7 the capacity to undertake to, or submits a bid to, or does himself or by or
4-8 through others, construct, alter, repair, add to, subtract from, improve,
4-9 move, wreck or demolish any building, highway, road, railroad, excavation
4-10 or other structure, project, development or improvement, or to do any part
4-11 thereof, including the erection of scaffolding or other structures or works in
4-12 connection therewith.
4-13 (b) Is synonymous with “builder.”
4-14 2. Evidence of the securing of any permit from a governmental agency
4-15 or the employment of any person on a construction project must be
4-16 accepted by the board or any court of this state as prima facie evidence that
4-17 the person securing that permit or employing any person on a construction
4-18 project is acting in the capacity of a contractor pursuant to the provisions of
4-19 this chapter.
4-20 3. A contractor [within the meaning of this chapter] includes :
4-21 (a) A subcontractor or specialty contractor, but does not include anyone
4-22 who merely furnishes materials or supplies without fabricating them into,
4-23 or consuming them in the performance of, the work of a contractor.
4-24 [4. A contractor within the meaning of this chapter includes a]
4-25 (b) A construction manager who performs management and counseling
4-26 services on a construction project for a professional fee.
4-27 Sec. 13. NRS 624.270 is hereby amended to read as follows:
4-28 624.270 1. Before issuing a contractor’s license to any applicant, the
4-29 board shall require that the applicant:
4-30 (a) File with the board a surety bond in a form acceptable to the board
4-31 executed by the contractor as principal with a corporation authorized to
4-32 transact surety business in the State of Nevada as surety; or
4-33 (b) In lieu of such a bond, establish with the board a cash deposit as
4-34 provided in this section.
4-35 2. Before granting renewal of a contractor’s license to any applicant,
4-36 the board shall require that the applicant file with the board satisfactory
4-37 evidence that his surety bond or cash deposit is in full force, unless the
4-38 applicant has been relieved of the requirement as provided in this section.
4-39 3. Failure of an applicant or licensee to file or maintain in full force the
4-40 required bond or to establish the required cash deposit constitutes cause for
4-41 the board to deny, revoke, suspend or refuse to renew a license.
4-42 4. Except as otherwise provided in subsection 6, the amount of each
4-43 bond or cash deposit required by this section must be fixed by the board
4-44 with reference to the contractor’s financial and professional responsibility
4-45 and the magnitude of his operations, but must be not less than $1,000 or
4-46 more than [$100,000.] $500,000. The bond must be continuous in form ,
4-47 issued by a bonding company with a rating not lower than “A” or its
4-48 equivalent as determined by a nationally recognized rating service, and
4-49 must be conditioned that the total aggregate liability of the surety for all
5-1 claims is limited to the face amount of the bond irrespective of the number
5-2 of years the bond is in force. The board may increase or reduce the amount
5-3 of any bond or cash deposit if evidence supporting such a change in the
5-4 amount is presented to the board at the time application is made for
5-5 renewal of a license or at any hearing conducted pursuant to NRS 624.291.
5-6 Unless released earlier pursuant to subsection 5, any cash deposit may be
5-7 withdrawn 2 years after termination of the license in connection with
5-8 which it was established, or 2 years after completion of all work authorized
5-9 by the board after termination of the license, whichever occurs later, if
5-10 there is no outstanding claim against it. The board shall fix the amount of
5-11 the bond for a licensee who has acted in the capacity of a licensed
5-12 contractor in the State of Nevada for less than 5 consecutive years at the
5-13 maximum amount reasonable with reference to the contractor’s
5-14 financial and professional responsibility and the magnitude of his
5-15 operations until the contractor establishes a reliable record of
5-16 performance with the board.
5-17 5. [After] The board shall require a licensee who has acted in the
5-18 capacity of a licensed contractor in the State of Nevada for less than 5
5-19 consecutive years and any contractor who has been disciplined by the
5-20 board to provide a performance bond for each new contract in an
5-21 amount equal to a percentage of the contract price as determined by the
5-22 board. Except as otherwise provided in this subsection, after a licensee
5-23 has acted in the capacity of a licensed contractor in the State of Nevada for
5-24 not less than 5 consecutive years, the board may relieve the licensee of the
5-25 requirement of filing a bond or establishing a cash deposit if evidence
5-26 supporting such relief is presented to the board. The board may at any time
5-27 thereafter require the licensee to file a new bond or establish a new cash
5-28 deposit as provided in subsection 4 if evidence is presented to the board
5-29 supporting this requirement or, pursuant to subsection 6, after notification
5-30 of a final written decision by the labor commissioner. If a licensee is
5-31 relieved of the requirement of establishing a cash deposit, the deposit may
5-32 be withdrawn 2 years after such relief is granted, if there is no outstanding
5-33 claim against it.
5-34 6. If the board is notified by the labor commissioner pursuant to NRS
5-35 607.165 that three substantiated claims for wages have been filed against a
5-36 contractor within a 2-year period, the board shall require the contractor to
5-37 file a bond or establish a cash deposit in an amount fixed by the board. The
5-38 contractor shall maintain the bond or cash deposit for the period required
5-39 by the board.
5-40 7. As used in this section, “substantiated claims for wages” has the
5-41 meaning ascribed to it in NRS 607.165.
5-42 Sec. 14. NRS 624.302 is hereby amended to read as follows:
5-43 624.302 The following acts or omissions, among others, constitute
5-44 cause for disciplinary action pursuant to NRS 624.300:
5-45 1. Contracting, offering to contract or submitting a bid as a contractor
5-46 if the contractor’s license:
5-47 (a) Has been suspended or revoked pursuant to NRS 624.300; or
5-48 (b) Is inactive.
6-1 2. Failure to comply with a written citation issued pursuant to NRS
6-2 624.341 within the time permitted for compliance set forth in the citation
6-3 [,] or, if a hearing is held pursuant to NRS 624.291, within 15 business
6-4 days after the hearing.
6-5 3. Except as otherwise provided in subsection 2, failure to pay an
6-6 administrative fine imposed pursuant to this chapter within 30 days after:
6-7 (a) Receiving notice of the imposition of the fine; or
6-8 (b) The final administrative or judicial decision affirming the imposition
6-9 of the fine,
6-10 whichever occurs later.
6-11 4. The suspension, revocation or other disciplinary action taken by
6-12 another state against a contractor based on a license issued by that state if
6-13 the contractor is licensed in this state or applies for a license in this state. A
6-14 certified copy of the suspension, revocation or other disciplinary action
6-15 taken by another state against a contractor based on a license issued by that
6-16 state is conclusive evidence of that action.
6-17 5. Failure or refusal to respond to a written request from the board or
6-18 its designee to cooperate in the investigation of a complaint.
6-19 6. Failure or refusal to comply with a written request by the board or
6-20 its designee for information or records, or obstructing or delaying the
6-21 providing of such information or records.
6-22 7. Failure or refusal to comply with a written order issued pursuant
6-23 to section 9 of this act within the time required for completion of repairs
6-24 set forth in the order.
6-25 Sec. 15. NRS 645.6052 is hereby amended to read as follows:
6-26 645.6052 1. A person who is licensed pursuant to this chapter as a
6-27 real estate broker, real estate broker-salesman or real estate salesman may
6-28 apply to the real estate division for a permit to engage in property
6-29 management.
6-30 2. An applicant for a permit must:
6-31 (a) Furnish proof satisfactory to the division that he has successfully
6-32 completed at least 24 classroom hours of instruction in property
6-33 management; and
6-34 (b) Comply with all other requirements established by the commission
6-35 for the issuance of a permit.
6-36 3. A permit expires, and may be renewed, at the same time as the
6-37 license of the holder of the permit.
6-38 4. An applicant for the renewal of a permit must:
6-39 (a) Furnish proof satisfactory to the division that he has successfully
6-40 completed at least 3 of the hours of the continuing education required for
6-41 the renewal of his license pursuant to NRS 645.575 in an approved
6-42 educational course, seminar or conference concerning property
6-43 management; and
6-44 (b) Comply with all other requirements established by the commission
6-45 for the renewal of a permit.
6-46 5. The commission may adopt such regulations as it determines are
6-47 necessary to carry out the provisions of this section[.] and section 37 of
6-48 this act. The regulations may, without limitation:
7-1 (a) Establish additional requirements for the issuance or renewal of a
7-2 permit.
7-3 (b) Establish a fee for the issuance and renewal of a permit.
7-4 (c) Set forth standards of education for the approval of a course of
7-5 instruction to qualify a person for a permit pursuant to this section.
7-6 Sec. 16. Chapter 40 of NRS is hereby amended by adding thereto the
7-7 provisions set forth as sections 17 to 20, inclusive, of this act.
7-8 Sec. 17. “Design professional” means a person with a professional
7-9 license or certificate issued pursuant to chapter 623, 623A or 625 of
7-10 NRS.
7-11 Sec. 18. “Subcontractor” means a contractor who performs work on
7-12 behalf of another contractor in the construction of a residence or
7-13 appurtenance.
7-14 Sec. 19. A person rendering an expert opinion or professional
7-15 opinion in a matter governed by NRS 40.600 to 40.695, inclusive, and
7-16 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
7-17 this act must:
7-18 1. Have a license issued pursuant to chapter 624 of NRS in the
7-19 appropriate classification established by the provisions of NRS 624.215,
7-20 624.218 and 624.220 for the trade or skill for which he is rendering an
7-21 opinion; or
7-22 2. Have an appropriate occupational or professional license issued
7-23 by a board, commission or agency of the State of Nevada for the trade or
7-24 skill upon which he is rendering an opinion.
7-25 Sec. 20. 1. An attorney representing a person in a matter governed
7-26 by the provisions of NRS 40.600 to 40.695, inclusive, and sections 17 to
7-27 20, inclusive, of this act, and sections 2 to 10, inclusive, of this act shall
7-28 not employ an expert witness with whom the attorney, a person employed
7-29 by the same firm or company as the attorney, a relative of the attorney or
7-30 a relative of a person employed by the same firm or company as the
7-31 attorney has a fiduciary relationship.
7-32 2. An attorney representing a person in a matter governed by the
7-33 provisions of NRS 40.600 to 40.695, inclusive, and sections 17 to 20,
7-34 inclusive, of this act, and sections 2 to 10, inclusive, of this act shall not
7-35 employ a consulting firm in which the attorney, a person employed by the
7-36 same firm or company as the attorney, a relative of the attorney or a
7-37 relative of a person employed by the same firm or company as the
7-38 attorney has a financial interest.
7-39 3. As used in this section, “relative” means a spouse or any other
7-40 person who is related within the second degree by blood or marriage.
7-41 Sec. 21. NRS 40.600 is hereby amended to read as follows:
7-42 40.600 As used in NRS 40.600 to 40.695, inclusive, and sections 17 to
7-43 20, inclusive, of this act, unless the context otherwise requires, the words
7-44 and terms defined in NRS 40.605 to 40.630, inclusive, and sections 17 and
7-45 18 of this act have the meanings ascribed to them in those sections.
7-46 Sec. 22. NRS 40.615 is hereby amended to read as follows:
7-47 40.615 “Constructional defect” [includes a defect in the design,
7-48 construction, manufacture, repair or landscaping of a new residence, of an
7-49 alteration of or addition to an existing residence, or of an appurtenance.
8-1 The term includes physical damage to the] means a condition that
8-2 materially affects the value or use of a residence, an appurtenance or the
8-3 real property to which the residence or appurtenance is affixed . [that is
8-4 proximately caused by a constructional defect.] in an adverse manner.
8-5 Sec. 23. NRS 40.635 is hereby amended to read as follows:
8-6 40.635 NRS 40.600 to 40.695, inclusive[:] , and sections 17 to 20,
8-7 inclusive, of this act, and sections 2 to 10, inclusive, of this act:
8-8 1. Apply to any claim that arises before, on or after July 1, 1995, as the
8-9 result of a constructional defect, except a claim for personal injury or
8-10 wrongful death, if the claim is the subject of an action commenced on or
8-11 after July 1, 1995.
8-12 2. Prevail over any conflicting law otherwise applicable to the claim or
8-13 cause of action.
8-14 3. Do not bar or limit any defense otherwise available except as
8-15 otherwise provided in those sections.
8-16 4. Do not create a new theory upon which liability may be based.
8-17 Sec. 24. NRS 40.645 is hereby amended to read as follows:
8-18 40.645 Except as otherwise provided in this section and NRS 40.670:
8-19 1. For a claim that is not a complex matter, [at least 60 days] before a
8-20 claimant submits a claim of a constructional defect to the state
8-21 contractors’ board for review pursuant to NRS 40.680 and sections 2 to
8-22 10, inclusive, of this act and before a claimant commences an action
8-23 against a contractor for damages arising from a constructional defect, the
8-24 claimant must give written notice by certified mail, return receipt
8-25 requested, to the contractor, at the contractor’s last known address,
8-26 specifying in reasonable detail the defects or any damages or injuries to
8-27 each residence or appurtenance that is the subject of the claim. The notice
8-28 must describe in reasonable detail the cause of the defects if the cause is
8-29 known, the nature and extent that is known of the damage or injury
8-30 resulting from the defects and the location of each defect within each
8-31 residence or appurtenance to the extent known. An expert opinion
8-32 concerning the cause of the defects and the nature and extent of the damage
8-33 or injury resulting from the defects based on a representative sample of the
8-34 components of the residences and appurtenances involved in the action
8-35 satisfies the requirements of this section. During the 45-day period after the
8-36 contractor receives the notice, on his written request, the contractor [is
8-37 entitled to] may inspect the property that is the subject of the claim to
8-38 determine the nature and cause of the defect, damage or injury and the
8-39 nature and extent of repairs necessary to remedy the defect. The contractor
8-40 shall, before making the inspection, provide reasonable notice of the
8-41 inspection to all other parties and shall make the inspection at a reasonable
8-42 time. The contractor may take reasonable steps to establish the existence of
8-43 the defect.
8-44 2. If a residence or appurtenance that is the subject of the claim is
8-45 covered by a homeowner’s warranty that is purchased by or on behalf of a
8-46 claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant
8-47 shall diligently pursue a claim under the contract.
8-48 3. Within 10 days after the contractor receives the notice, the
8-49 contractor shall provide a copy of the notice of defects to each
9-1 subcontractor and each design professional who the contractor
9-2 reasonably believes performed the original construction or design work
9-3 which is alleged to be a constructional defect.
9-4 4. During the 45 days after the contractor receives the notice from
9-5 the claimant, the contractor shall:
9-6 (a) Before conducting any inspection or test of the residence or
9-7 appurtenance, provide notice of the inspection or test in writing by
9-8 certified mail to each subcontractor and design professional to whom
9-9 notice was provided pursuant to subsection 3 of his last known address;
9-10 and
9-11 (b) Allow each subcontractor and design professional to whom notice
9-12 was provided pursuant to subsection 3 to jointly and severally conduct
9-13 any testing of the residence or appurtenance at the time the contractor is
9-14 allowed to conduct such testing.
9-15 5. Within 60 days after the contractor receives the notice, the
9-16 contractor shall make a written response to the claimant. The response:
9-17 (a) Must be served to the claimant by certified mail, return receipt
9-18 requested, at the claimant’s last known address.
9-19 (b) Must respond to each constructional defect set forth in the
9-20 claimant’s notice, and describe in reasonable detail the cause of the defect,
9-21 if known, the nature and extent of the damage or injury resulting from the
9-22 defect, and, unless the response is limited to a proposal for monetary
9-23 compensation, the method, adequacy and estimated cost of any proposed
9-24 repair.
9-25 (c) May include:
9-26 (1) A proposal for monetary compensation, which may include a
9-27 contribution from a subcontractor.
9-28 (2) If the contractor or his subcontractor is licensed to make the
9-29 repairs, an agreement by the contractor or subcontractor to make the
9-30 repairs.
9-31 (3) An agreement by the contractor to cause the repairs to be made, at
9-32 the contractor’s expense, by another contractor who is licensed to make the
9-33 repairs, bonded and insured.
9-34 The repairs must be made within 45 days after the contractor receives
9-35 written notice of acceptance of the response, unless completion is delayed
9-36 by the claimant or by other events beyond the control of the contractor, or
9-37 timely completion of the repairs is not reasonably possible. The claimant
9-38 and the contractor may agree in writing to extend the periods prescribed by
9-39 this section.
9-40 [4. Not later than 15 days before the mediation required pursuant to
9-41 NRS 40.680 and upon providing 15 days’ notice, each party shall provide
9-42 the other party, or shall make a reasonable effort to assist the other party to
9-43 obtain, all relevant reports, photos, correspondence, plans, specifications,
9-44 warranties, contracts, subcontracts, work orders for repair, videotapes,
9-45 technical reports, soil and other engineering reports and other documents or
9-46 materials relating to the claim that are not privileged.
9-47 5.] 6. If the claimant is a representative of a homeowner’s association,
9-48 the association shall submit any response made by the contractor to each
9-49 member of the association.
10-1 [6. As used in this section, “subcontractor” means a contractor who
10-2 performs work on behalf of another contractor in the construction of a
10-3 residence or appurtenance.]
10-4 Sec. 25. NRS 40.650 is hereby amended to read as follows:
10-5 40.650 1. If a claimant unreasonably rejects a reasonable written
10-6 offer of settlement made as part of a response made pursuant to NRS
10-7 40.645 or 40.682 or does not permit the contractor or independent
10-8 contractor a reasonable opportunity to repair the defect pursuant to an
10-9 accepted offer of settlement and thereafter commences an action governed
10-10 by NRS 40.600 to 40.695, inclusive, and sections 17 to 20, inclusive, of
10-11 this act, and sections 2 to 10, inclusive, of this act, the court in which the
10-12 action is commenced may:
10-13 (a) Deny the claimant’s attorney’s fees and costs; and
10-14 (b) Award attorney’s fees and costs to the contractor.
10-15 Any sums paid under a homeowner’s warranty, other than sums paid in
10-16 satisfaction of claims that are collateral to any coverage issued to or by the
10-17 contractor, must be deducted from any recovery.
10-18 2. If a contractor fails to:
10-19 (a) Make an offer of settlement;
10-20 (b) Make a good faith response to the claim asserting no liability; or
10-21 (c) Complete, in a good and workmanlike manner, the repairs specified
10-22 in an accepted offer , [;
10-23 (d) Agree to a mediator or accept the appointment of a mediator
10-24 pursuant to NRS 40.680 or subsection 4 of NRS 40.682; or
10-25 (e) Participate in mediation,]
10-26 the limitations on damages and defenses to liability provided in NRS
10-27 40.600 to 40.695, inclusive, and sections 17 to 20, inclusive, of this act,
10-28 and sections 2 to 10, inclusive, of this act do not apply . [and the claimant
10-29 may commence an action without satisfying any other requirement of NRS
10-30 40.600 to 40.695, inclusive.]
10-31 3. If coverage under a homeowner’s warranty is denied by an insurer
10-32 in bad faith, the homeowner and the contractor have a right of action for
10-33 the sums that would have been paid if coverage had been provided, plus
10-34 reasonable attorney’s fees and costs.
10-35 Sec. 26. NRS 40.655 is hereby amended to read as follows:
10-36 40.655 1. Except as otherwise provided in NRS 40.650[,] and
10-37 section 9 of this act, in a claim governed by NRS 40.600 to 40.695,
10-38 inclusive, and sections 17 to 20, inclusive, of this act, and sections 2 to
10-39 10, inclusive, of this act, the claimant may recover only the following
10-40 damages to the extent proximately caused by a constructional defect:
10-41 (a) Any reasonable attorney’s fees;
10-42 (b) The reasonable cost of any repairs already made that were necessary
10-43 and of any repairs yet to be made that are necessary to cure any
10-44 constructional defect that the contractor failed to cure and the reasonable
10-45 expenses of temporary housing reasonably necessary during the repair;
10-46 (c) The reduction in market value of the residence or accessory
10-47 structure, if any, to the extent the reduction is because of structural failure;
10-48 (d) The loss of the use of all or any part of the residence;
11-1 (e) The reasonable value of any other property damaged by the
11-2 constructional defect;
11-3 (f) Any additional costs reasonably incurred by the claimant, including,
11-4 but not limited to, any costs and fees incurred for the retention of experts
11-5 to:
11-6 (1) Ascertain the nature and extent of the constructional defects;
11-7 (2) Evaluate appropriate corrective measures to estimate the value of
11-8 loss of use; and
11-9 (3) Estimate the value of loss of use, the cost of temporary housing
11-10 and the reduction of market value of the residence; and
11-11 (g) Any interest provided by statute.
11-12 2. The amount of any attorney’s fees awarded pursuant to this section
11-13 must be approved by the court.
11-14 3. If a contractor complies with the provisions of NRS 40.600 to
11-15 40.695, inclusive, and sections 17 to 20, inclusive, of this act, the claimant
11-16 may not recover from the contractor, as a result of the constructional
11-17 defect, anything other than that which is provided pursuant to NRS 40.600
11-18 to 40.695, inclusive[.] , and sections 17 to 20, inclusive, of this act.
11-19 4. As used in this section, “structural failure” means physical damage
11-20 to the load-bearing portion of a residence or appurtenance caused by a
11-21 failure of the load-bearing portion of the residence or appurtenance.
11-22 Sec. 27. NRS 40.668 is hereby amended to read as follows:
11-23 40.668 1. Notwithstanding the provisions of NRS 40.600 to 40.695,
11-24 inclusive, and sections 17 to 20, inclusive, of this act, and sections 2 to
11-25 10, inclusive, of this act, a claimant may not commence an action against a
11-26 subdivider or master developer for a constructional defect in an
11-27 appurtenance constructed on behalf of the subdivider or master developer
11-28 in a planned unit development, to the extent that the appurtenance was
11-29 constructed by or through a licensed general contractor, unless:
11-30 (a) The subdivider or master developer fails to provide to the claimant
11-31 the name, address and telephone number of each contractor hired by the
11-32 subdivider or master developer to construct the appurtenance within 30
11-33 days of the receipt by the subdivider or master developer of a request from
11-34 the claimant for such information; or
11-35 (b) After the claimant has made a good faith effort to obtain full
11-36 recovery from the contractors hired by the subdivider or master developer
11-37 to construct the appurtenance, the claimant has not obtained a full
11-38 recovery.
11-39 2. All statutes of limitation or repose applicable to a claim governed by
11-40 this section are tolled from the time the claimant notifies a contractor hired
11-41 by the subdivider or master developer of the claim until the earlier of the
11-42 date:
11-43 (a) A court determines that the claimant cannot obtain a full recovery
11-44 against those contractors; or
11-45 (b) The claimant receives notice that those contractors are bankrupt,
11-46 insolvent or dissolved.
11-47 Tolling pursuant to this subsection applies only to the subdivider or master
11-48 developer. Notwithstanding any applicable statute of limitation or repose,
11-49 the claimant may commence an action against the subdivider or master
12-1 developer for the claim within 1 year after the end of the tolling described
12-2 in this subsection.
12-3 3. [Nothing in this section prohibits] This section does not prohibit the
12-4 commencement of an action against a subdivider or master developer for a
12-5 constructional defect in a residence sold, designed or constructed by or on
12-6 behalf of the subdivider or master developer.
12-7 4. [Nothing in this section prohibits] This section does not prohibit a
12-8 person other than the claimant from commencing an action against a
12-9 subdivider or master developer to enforce his own rights.
12-10 5. The provisions of this section do not apply to a subdivider or master
12-11 developer who acts as a general contractor or uses his license as a general
12-12 contractor in the course of constructing the appurtenance that is the subject
12-13 of the action.
12-14 6. As used in this section:
12-15 (a) “Master developer” means a person who buys, sells or develops a
12-16 planned unit development, including, without limitation, a person who
12-17 enters into a development agreement pursuant to NRS 278.0201.
12-18 (b) “Planned unit development” has the meaning ascribed to it in NRS
12-19 278A.065.
12-20 (c) “Subdivider” has the meaning ascribed to it in NRS 278.0185.
12-21 Sec. 28. NRS 40.675 is hereby amended to read as follows:
12-22 40.675 1. A contractor or subcontractor who makes or provides for
12-23 repairs under NRS 40.600 to 40.695, inclusive, and sections 17 to 20,
12-24 inclusive, of this act, and sections 2 to 10, inclusive, of this act may take
12-25 reasonable steps to prove that the repairs were made and to have them
12-26 inspected.
12-27 2. The provisions of NRS 40.600 to 40.695, inclusive, and sections 17
12-28 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of this act
12-29 regarding inspection and repair are in addition to any rights of inspection
12-30 and settlement provided by common law or by another statute.
12-31 Sec. 29. NRS 40.680 is hereby amended to read as follows:
12-32 40.680 1. Except as otherwise provided in this chapter, before an
12-33 action based on a claim governed by NRS 40.600 to 40.695, inclusive, and
12-34 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
12-35 this act may be commenced in court, the matter must be submitted to
12-36 [mediation, unless mediation is waived in writing by the contractor and the
12-37 claimant.
12-38 2. The claimant and contractor must select a mediator by agreement. If
12-39 the claimant and contractor fail to agree upon a mediator within 45 days
12-40 after a mediator is first selected by the claimant, either party may petition
12-41 the American Arbitration Association, the Nevada Arbitration Association,
12-42 Nevada Dispute Resolution Services or any other mediation service
12-43 acceptable to the parties for the appointment of a mediator. A mediator so
12-44 appointed may discover only those documents or records which are
12-45 necessary to conduct the mediation. The mediator shall convene the
12-46 mediation within 60 days after the matter is submitted to him, unless the
12-47 parties agree to extend the time. Except in a complex matter, the claimant
12-48 shall, before the mediation begins, deposit $50 with the mediation service
12-49 and the contractor shall deposit with the mediation service the remaining
13-1 amount estimated by the mediation service as necessary to pay the fees and
13-2 expenses of the mediator for the first session of mediation, and the
13-3 contractor shall deposit additional amounts demanded by the mediation
13-4 service as incurred for that purpose. In a complex matter, each party shall
13-5 share equally in the deposits estimated by the mediation service. Unless
13-6 otherwise agreed, the total fees for each day of mediation and the mediator
13-7 must not exceed $750 per day.
13-8 3. If the parties do not reach an agreement concerning the matter
13-9 during mediation or if the contractor fails to pay the required fees and
13-10 appear, the claimant may commence his action in court and:
13-11 (a) The reasonable costs and fees of the mediation are recoverable by
13-12 the prevailing party as costs of the action.
13-13 (b) Either party may petition the court in which the action is
13-14 commenced for the appointment of a special master.
13-15 4. A special master appointed pursuant to subsection 3 may:
13-16 (a) Review all pleadings, papers or documents filed with the court
13-17 concerning the action.
13-18 (b) Coordinate the discovery of any books, records, papers or other
13-19 documents by the parties, including the disclosure of witnesses and the
13-20 taking of the deposition of any party.
13-21 (c) Order any inspections on the site of the property by a party and any
13-22 consultants or experts of a party.
13-23 (d) Order settlement conferences and attendance at those conferences by
13-24 any representative of the insurer of a party.
13-25 (e) Require any attorney representing a party to provide statements of
13-26 legal and factual issues concerning the action.
13-27 (f) Refer to the judge who appointed him or to the presiding judge of the
13-28 court in which the action is commenced any matter requiring assistance
13-29 from the court.
13-30 The special master shall not, unless otherwise agreed by the parties,
13-31 personally conduct any settlement conferences or engage in any ex parte
13-32 meetings regarding the action.
13-33 5. Upon application by a party to the court in which the action is
13-34 commenced, any decision or other action taken by a special master
13-35 appointed pursuant to this section may be appealed to the court for a
13-36 decision.
13-37 6. A report issued by a mediator or special master that indicates that
13-38 either party has failed to appear before him or to mediate in good faith is
13-39 admissible in the action, but a statement or admission made by either party
13-40 in the course of mediation is not admissible.] the state contractors’ board
13-41 for review pursuant to sections 2 to 10, inclusive, of this act within 30
13-42 days after the expiration of the time for the:
13-43 (a) Contractor to provide a written response to the claimant’s written
13-44 notice of defects pursuant to NRS 40.645 or 40.682, which response may
13-45 include, without limitation, an agreement of a subcontractor to repair or
13-46 to contribute to a proposal for monetary compensation pursuant to NRS
13-47 40.645 or 40.682;
14-1 (b) Claimant to accept an offer made as part of a written response by
14-2 the contractor or subcontractor to the claimant’s written notice of defects
14-3 pursuant to NRS 40.645 or 40.682, if such an offer is made; or
14-4 (c) Contractor or subcontractor to complete repairs made as part of a
14-5 written response by the contractor to the claimant’s written notice of
14-6 defects pursuant to NRS 40.645 or 40.682 that is accepted by the
14-7 claimant, including, without limitation, any extension of the period for
14-8 completing repairs which has been agreed to in writing by the claimant
14-9 and contractor,
14-10 whichever is later.
14-11 2. Any action involving a constructional defect that is filed without
14-12 satisfying the requirements of NRS 40.600 to 40.695, inclusive, and
14-13 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
14-14 this act must be dismissed without prejudice for failure to comply with
14-15 this section.
14-16 3. After the state contractors’ board has issued an advisory opinion
14-17 concerning a claim of a constructional defect pursuant to the provisions
14-18 of section 7 of this act, a claimant may proceed to file an action based on
14-19 a claim governed by NRS 40.600 to 40.695, inclusive, and sections 17 to
14-20 20, inclusive, of this act, and sections 2 to 10, inclusive, of this act.
14-21 4. A contractor who is served with a summons and complaint by a
14-22 claimant for a claim governed by the provisions of NRS 40.600 to 40.695,
14-23 inclusive, and sections 17 to 20, inclusive, of this act, and sections 2 to
14-24 10, inclusive, of this act and who files a third party complaint against a
14-25 subcontractor or design professional shall, not later than 60 days after
14-26 the date of service of the answer to the complaint, add any additional
14-27 parties to the third party complaint or file any third party complaint
14-28 against a subcontractor, design professional or additional party who may
14-29 be responsible for all or a portion of the constructional defects set forth
14-30 in the notice served pursuant to NRS 40.645 or 40.682, as applicable,
14-31 unless, upon a showing of diligent effort and good cause, the court
14-32 allows a later addition of such parties.
14-33 5. The provisions of this section do not prohibit the parties to a claim
14-34 involving a constructional defect governed by NRS 40.600 to 40.695,
14-35 inclusive, and sections 17 to 20, inclusive, of this act, and sections 2 to
14-36 10, inclusive, of this act from voluntary agreeing in writing to submit a
14-37 matter to mediation.
14-38 Sec. 30. NRS 40.682 is hereby amended to read as follows:
14-39 40.682 Except as otherwise provided in this section and NRS 40.670:
14-40 1. [Notwithstanding the provisions of subsection 1 of NRS 40.680, a
14-41 claimant may commence an action in district court in a complex matter. If
14-42 the claimant commences an action in district court he shall:
14-43 (a) File and serve the summons and complaint as required by law; and
14-44 (b) At the same time and in the same manner as the claimant serves the
14-45 summons and complaint upon the contractor, serve upon the contractor]
14-46 For a claim that is a complex matter, before a claimant submits a claim
14-47 of a constructional defect to the state contractors’ board for review
14-48 pursuant to sections 2 to 10, inclusive, of this act and before a claimant
14-49 commences an action against a contractor for damages arising from a
15-1 constructional defect, the claimant must give a written notice by certified
15-2 mail, return receipt requested, to the contractor, at the contractor’s last
15-3 known address, specifying in reasonable detail, to the extent known, the
15-4 defects and any damages or injuries to each residence or appurtenance that
15-5 is the subject of the claim. The notice must describe in reasonable detail
15-6 each defect, the specific location of each defect, and the nature and extent
15-7 that is known of the damage or injury resulting from each defect. If an
15-8 expert opinion has been rendered concerning the existence or extent of the
15-9 defects, a written copy of the opinion must accompany the notice. An
15-10 expert opinion that specifies each defect to the extent known, the specific
15-11 location of each defect to the extent known, and the nature and extent that
15-12 is known of the damage or injury resulting from each defect, based on a
15-13 valid and reliable representative sample of the residences and
15-14 appurtenances involved in the action, satisfies the requirements of this
15-15 section.
15-16 2. [The contractor shall file and serve an answer to the complaint as
15-17 required by law.
15-18 3. Not later than 30 days after the date of service of the answer to the
15-19 complaint, the contractor and claimant shall meet to establish a schedule
15-20 for:
15-21 (a) The exchange of or reasonable access for the other party to all
15-22 relevant reports, photos, correspondence, plans, specifications, warranties,
15-23 contracts, subcontracts, work orders for repair, videotapes, technical
15-24 reports, soil and other engineering reports and other documents or
15-25 materials relating to the claim that are not privileged;
15-26 (b) The inspection of] Within 10 days after the contractor receives the
15-27 notice, the contractor shall provide a copy of the notice of defects to each
15-28 subcontractor and each design professional who the contractor
15-29 reasonably believes performed the original construction or design work
15-30 which is alleged to be a constructional defect.
15-31 3. During the 60 days after the contractor receives the notice, on his
15-32 written request, the contractor may:
15-33 (a) Inspect the residence or appurtenance that is the subject of the
15-34 claim to evaluate the defects set forth in the notice served pursuant to
15-35 subsection 1; and
15-36 [(c) The conduct of]
15-37 (b) Conduct any tests that are reasonably necessary to determine the
15-38 nature and cause of a defect or any damage or injury, and the nature and
15-39 extent of repairs necessary to remedy a defect or any damage or injury. The
15-40 party conducting the test shall provide reasonable notice of the test to all
15-41 other parties and conduct the test at a reasonable time.
15-42 4. [At the meeting held pursuant to subsection 3, the claimant and
15-43 contractor shall:
15-44 (a) Establish a schedule for the addition of any additional parties to the
15-45 complaint or to file any third-party complaint against an additional party
15-46 who may be responsible for all or a portion of the defects set forth in the
15-47 notice served pursuant to subsection 1;
16-1 (b) Unless the claimant and contractor agree otherwise in writing, select
16-2 a mediator and proceed with mediation as provided in subsections 2 to 6,
16-3 inclusive, of NRS 40.680; and
16-4 (c) If the claimant and contractor agree, select a special master and
16-5 jointly petition the court for his appointment pursuant to subsection 7.
16-6 5. Each party added to the complaint or against whom a third-party
16-7 complaint is filed pursuant to subsection 4 shall file and serve an answer as
16-8 required by law.
16-9 6. If the claimant or contractor adds a party to the complaint or files a
16-10 third-party complaint, then not later than 60 days after the date determined
16-11 pursuant to paragraph (a) of subsection 4, the contractor, claimant and each
16-12 party added to the complaint or against whom a third-party complaint is
16-13 filed shall meet to establish a schedule for the activities set forth in
16-14 paragraphs (a), (b) and (c) of subsection 3.
16-15 7. If a special master has not been appointed, the contractor, claimant
16-16 or a party added to the complaint or against whom a third-party complaint
16-17 is filed may petition the court for the appointment of a special master at
16-18 any time after the meeting held pursuant to subsection 3. The special
16-19 master may:
16-20 (a) Take any action set forth in subsection 4 of NRS 40.680;
16-21 (b) Exercise any power set forth in Rule 53 of the Nevada Rules of Civil
16-22 Procedure; and
16-23 (c) Subject to the provisions of NRS 40.680, if the parties fail to
16-24 establish a schedule or determine a date as required in subsection 3, 4 or 6,
16-25 establish the schedule or determine the date.
16-26 8. Unless the mediation required pursuant to paragraph (b) of
16-27 subsection 4 is completed or the contractor and claimant have agreed in
16-28 writing not to mediate the claim pursuant to paragraph (b) of subsection 4,
16-29 a party shall not propound interrogatories or requests for admission, take a
16-30 deposition or file a motion that is dispositive of the action except:
16-31 (a) Upon agreement of the parties; or
16-32 (b) With the prior approval of the court or special master.
16-33 9.] During the 60 days after the contractor receives the notice from
16-34 the claimant, the contractor shall:
16-35 (a) Before conducting any inspection or test of the residence or
16-36 appurtenance, provide notice of the inspection or test in writing by
16-37 certified mail to each subcontractor and design professional to whom
16-38 notice was provided pursuant to subsection 2 at his last known address;
16-39 and
16-40 (b) Allow each subcontractor and design professional to whom notice
16-41 was provided pursuant to subsection 2 to jointly and severally conduct
16-42 any testing of the residence or appurtenance at the time the contractor is
16-43 allowed to conduct such testing.
16-44 5. If a residence or appurtenance that is the subject of the claim is
16-45 covered by a homeowner’s warranty that is purchased by or on behalf of a
16-46 claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant
16-47 shall diligently pursue a claim under the contract.
17-1 [10. Unless the parties agree otherwise, not less than 60 days before
17-2 the date of the mediation pursuant to paragraph (b) of subsection 4 is
17-3 convened,]
17-4 6. Within 90 days after the contractor receives the notice, the
17-5 contractor shall make a written response to the claimant that meets the
17-6 requirements set forth in subsection [3] 5 of NRS 40.645.
17-7 [11.] 7. If the claimant is a representative of a homeowner’s
17-8 association, the association shall submit any response made by the
17-9 contractor to each member of the association in writing not more than 30
17-10 days after the date the claimant receives the response.
17-11 [12.] 8. The claimant shall respond to the written response of the
17-12 contractor within 45 days after the response of the contractor is mailed to
17-13 the claimant.
17-14 9. If a claimant accepts an offer to repair made as a part of a written
17-15 response of a contractor or subcontractor pursuant to this section, the
17-16 contractor or subcontractor, as applicable, shall complete the repairs or
17-17 cause the repairs to be completed within 90 days after the contractor
17-18 receives written notice of acceptance of the response, unless completion
17-19 is delayed by the claimant or by other events beyond the control of the
17-20 contractor or subcontractor, or timely completion of the repairs is not
17-21 reasonably possible. The claimant and the contractor may agree in
17-22 writing to extend the periods prescribed by this section.
17-23 Sec. 31. NRS 40.688 is hereby amended to read as follows:
17-24 40.688 1. If a claimant attempts to sell a residence that is or has been
17-25 the subject of a claim governed by NRS 40.600 to 40.695, inclusive, and
17-26 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
17-27 this act, he shall disclose, in writing, to any prospective purchaser of the
17-28 residence, not less than 30 days before the close of escrow for the sale of
17-29 the residence or, if escrow is to close less than 30 days after the execution
17-30 of the sales agreement, then immediately upon the execution of the sales
17-31 agreement or, if a claim is initiated less than 30 days before the close of
17-32 escrow, within 24 hours after giving written notice to the contractor
17-33 pursuant to subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682:
17-34 (a) All notices given by the claimant to the contractor pursuant to NRS
17-35 40.600 to 40.695, inclusive, and sections 17 to 20, inclusive, of this act,
17-36 and sections 2 to 10, inclusive, of this act that are related to the residence;
17-37 (b) All opinions the claimant has obtained from experts regarding a
17-38 constructional defect that is or has been the subject of the claim;
17-39 (c) The terms of any settlement, order or judgment relating to the claim;
17-40 and
17-41 (d) A detailed report of all repairs made to the residence by or on behalf
17-42 of the claimant as a result of a constructional defect that is or has been the
17-43 subject of the claim.
17-44 2. Before taking any action on a claim pursuant to NRS 40.600 to
17-45 40.695, inclusive, and sections 17 to 20, inclusive, of this act, and
17-46 sections 2 to 10, inclusive, of this act, the attorney for a claimant shall
17-47 notify the claimant in writing of the provisions of this section.
17-48 Sec. 32. NRS 40.689 is hereby amended to read as follows:
17-49 40.689 1. Upon petition by a party:
18-1 (a) The court shall give preference in setting a date for the trial of an
18-2 action commenced pursuant to NRS 40.600 to 40.695, inclusive[;] , and
18-3 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
18-4 this act; and
18-5 (b) The court may assign an action commenced pursuant to NRS 40.600
18-6 to 40.695, inclusive, and sections 17 to 20, inclusive, of this act, and
18-7 sections 2 to 10, inclusive, of this act to a senior judge.
18-8 2. If the action is assigned to a senior judge upon petition by a party:
18-9 (a) Any additional expenses caused by the assignment must be borne
18-10 equally by each party involved; or
18-11 (b) The judge may distribute any additional expenses among the parties
18-12 as he deems appropriate.
18-13 Sec. 33. NRS 40.690 is hereby amended to read as follows:
18-14 40.690 1. A claim governed by NRS 40.600 to 40.695, inclusive,
18-15 and sections 17 to 20, inclusive, of this act, and sections 2 to 10,
18-16 inclusive, of this act may not be brought by a claimant or contractor
18-17 against a government, governmental agency or political subdivision of a
18-18 government[,] during the period in which a claim for a constructional
18-19 defect is being settled[, mediated] or otherwise resolved pursuant to NRS
18-20 40.600 to 40.695, inclusive[.] , and sections 17 to 20, inclusive, of this
18-21 act, and sections 2 to 10, inclusive, of this act. The settlement of such a
18-22 claim does not affect the rights or obligations of the claimant or contractor
18-23 in any action brought by the claimant or contractor against a third party.
18-24 2. A contractor or claimant may require a party against whom the
18-25 contractor or claimant asserts a claim governed by NRS 40.600 to 40.695,
18-26 inclusive, and sections 17 to 20, inclusive, of this act, and sections 2 to
18-27 10, inclusive, of this act to appear and participate in proceedings held
18-28 pursuant to those sections as if the party were a contractor and the party
18-29 requiring him to appear were a claimant. The party must receive notice of
18-30 the proceedings from the contractor or claimant.
18-31 Sec. 34. NRS 40.692 is hereby amended to read as follows:
18-32 40.692 If, after complying with the procedural requirements of NRS
18-33 [40.645 and 40.680, or NRS 40.682,] 40.600 to 40.695, inclusive, and
18-34 sections 17 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of
18-35 this act, a claimant proceeds with an action for damages arising from a
18-36 constructional defect:
18-37 1. The claimant and each contractor who is named in the original
18-38 complaint when the action is commenced are not required, while the action
18-39 is pending, to comply with the requirements of NRS [40.645 or 40.680, or
18-40 NRS 40.682,] 40.600 to 40.695, inclusive, and sections 17 to 20, inclusive,
18-41 of this act, and sections 2 to 10, inclusive, of this act for any
18-42 constructional defect that the claimant includes in an amended complaint,
18-43 if the constructional defect:
18-44 (a) Is attributable, in whole or in part, to such a contractor;
18-45 (b) Is located on the same property described in the original complaint;
18-46 and
18-47 (c) Was not discovered before the action was commenced provided that
18-48 a good faith effort had been undertaken by the claimant.
19-1 2. The claimant is not required to give written notice of a defect
19-2 pursuant to subsection 1 of NRS 40.645 or subsection 1 of NRS 40.682 to
19-3 any person who is joined to or intervenes in the action as a party after it is
19-4 commenced. If such a person becomes a party to the action:
19-5 (a) For the purposes of subsection 1 of NRS 40.645 or subsection 1 of
19-6 NRS 40.682, the person shall be deemed to have been given notice of the
19-7 defect by the claimant on the date on which the person becomes a party to
19-8 the action; and
19-9 (b) The provisions of NRS 40.600 to 40.695, inclusive, and sections 17
19-10 to 20, inclusive, of this act, and sections 2 to 10, inclusive, of this act
19-11 apply to the person after that date.
19-12 Sec. 35. NRS 40.695 is hereby amended to read as follows:
19-13 40.695 1. Except as otherwise provided in subsection 2, statutes of
19-14 limitation or repose applicable to a claim based on a constructional defect
19-15 governed by NRS 40.600 to 40.695, inclusive, and sections 17 to 20,
19-16 inclusive, of this act, and sections 2 to 10, inclusive, of this act are tolled
19-17 from the time notice of the claim is given, until [30] :
19-18 (a) Thirty days after [mediation is concluded or waived in writing
19-19 pursuant to NRS 40.680 or subsection 4 of NRS 40.682.] an advisory
19-20 opinion is rendered by the state contractors’ board pursuant to sections 2
19-21 to 10, inclusive, of this act; or
19-22 (b) If the state contractors’ board issues an order requiring a
19-23 contractor to repair a constructional defect pursuant to section 9 of this
19-24 act, 45 days after the expiration of the time provided by the board for the
19-25 completion of repairs,
19-26 whichever is later.
19-27 2. Tolling under this section applies[:
19-28 (a) Only to a claim that is not a complex matter.
19-29 (b) To] to a third party regardless of whether the party is required to
19-30 appear in the proceeding.
19-31 Sec. 36. NRS 113.135 is hereby amended to read as follows:
19-32 113.135 1. Upon signing a sales agreement with the initial purchaser
19-33 of residential property that was not occupied by the purchaser for more
19-34 than 120 days after substantial completion of the construction of the
19-35 residential property, the seller shall:
19-36 (a) Provide to the initial purchaser a copy of NRS 11.202 to 11.206,
19-37 inclusive, and 40.600 to 40.695, inclusive[;] , and sections 17 to 20,
19-38 inclusive, of this act, and sections 2 to 10, inclusive, of this act;
19-39 (b) Notify the initial purchaser of any soil report prepared for the
19-40 residential property or for the subdivision in which the residential property
19-41 is located; and
19-42 (c) If requested in writing by the initial purchaser not later than 5 days
19-43 after signing the sales agreement, provide to the purchaser , without cost ,
19-44 each report described in paragraph (b) not later than 5 days after the seller
19-45 receives the written request.
19-46 2. Not later than 20 days after receipt of all reports pursuant to
19-47 paragraph (c) of subsection 1, the initial purchaser may rescind the sales
19-48 agreement.
20-1 3. The initial purchaser may waive his right to rescind the sales
20-2 agreement pursuant to subsection 2. Such a waiver is effective only if it is
20-3 made in a written document that is signed by the purchaser.
20-4 Sec. 37. Chapter 116 of NRS is hereby amended by adding thereto a
20-5 new section to read as follows:
20-6 1. A person shall not provide or offer to provide anything of value to
20-7 a property manager of an association or to a member or officer of an
20-8 executive board of an association to induce the property manager,
20-9 member or officer to encourage the association to file a claim for
20-10 damages arising from a constructional defect.
20-11 2. A property manager shall not accept anything of value given to
20-12 him in exchange for encouraging the association that he manages to file
20-13 a claim for damages arising from a constructional defect.
20-14 3. A member or officer of an executive board shall not accept
20-15 anything of value given to him in exchange for encouraging the
20-16 association of which he is a member or officer of the executive board to
20-17 file a claim for damages arising from a constructional defect.
20-18 4. If a property manager violates the provisions of this section:
20-19 (a) The real estate division of the department of business and industry
20-20 shall suspend or revoke his permit to engage in property management
20-21 issued pursuant to chapter 645 of NRS, if he has been issued such a
20-22 permit; and
20-23 (b) The real estate commission shall suspend or revoke his certificate
20-24 issued pursuant to NRS 116.31139, if he has been issued such a
20-25 certificate.
20-26 5. If a member or officer of an executive board violates the
20-27 provisions of this section, the executive board shall remove the officer or
20-28 member from the board.
20-29 6. Any person who willfully violates the provisions of this section is
20-30 guilty of a misdemeanor.
20-31 7. As used in this section, “constructional defect” has the meaning
20-32 ascribed to it in NRS 40.615.
20-33 Sec. 38. NRS 116.1203 is hereby amended to read as follows:
20-34 116.1203 1. Except as otherwise provided in subsection 2, if a
20-35 planned community contains no more than 12 units and is not subject to
20-36 any developmental rights, it is subject only to NRS 116.1105, 116.1106
20-37 and 116.1107 unless the declaration provides that this entire chapter is
20-38 applicable.
20-39 2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,
20-40 NRS 116.3101 to 116.3119, inclusive, and section 37 of this act and
20-41 116.110305 to 116.110393, inclusive, to the extent necessary in construing
20-42 any of those sections, apply to a residential planned community containing
20-43 more than six units.
20-44 Sec. 39. NRS 116.311 is hereby amended to read as follows:
20-45 116.311 1. If only one of several owners of a unit is present at a
20-46 meeting of the association, that owner is entitled to cast all the votes
20-47 allocated to that unit. If more than one of the owners are present, the votes
20-48 allocated to that unit may be cast only in accordance with the agreement of
20-49 a majority in interest of the owners, unless the declaration expressly
21-1 provides otherwise. There is majority agreement if any one of the owners
21-2 cast the votes allocated to that unit without protest made promptly to the
21-3 person presiding over the meeting by any of the other owners of the unit.
21-4 2. Except as otherwise provided in this section, votes allocated to a
21-5 unit may be cast pursuant to a proxy executed by a unit’s owner. A unit’s
21-6 owner may give a proxy only to a member of his immediate family, a
21-7 tenant of the unit’s owner who resides in the common-interest community
21-8 or another unit’s owner who resides in the common-interest community. If
21-9 a unit is owned by more than one person, each owner of the unit may vote
21-10 or register protest to the casting of votes by the other owners of the unit
21-11 through an executed proxy. A unit’s owner may revoke a proxy given
21-12 pursuant to this section only by actual notice of revocation to the person
21-13 presiding over a meeting of the association. A proxy is void if:
21-14 (a) It is not dated or purports to be revocable without notice;
21-15 (b) It does not designate the votes that must be cast on behalf of the
21-16 unit’s owner who executed the proxy; or
21-17 (c) The holder of the proxy does not disclose at the beginning of the
21-18 meeting for which the proxy is executed the number of proxies pursuant to
21-19 which he will be casting votes and the voting instructions received for each
21-20 proxy.
21-21 A proxy terminates immediately after the conclusion of the meeting for
21-22 which it was executed. A vote may not be cast pursuant to a proxy for the
21-23 election of a member of the executive board of an association[.] or for the
21-24 ratification of an action pursuant to paragraph (e) of subsection 9 of
21-25 NRS 116.3115.
21-26 3. Only a vote cast in person, by secret ballot or by proxy, may be
21-27 counted.
21-28 4. If the declaration requires that votes on specified matters affecting
21-29 the common-interest community be cast by lessees rather than units’
21-30 owners of leased units:
21-31 (a) The provisions of subsections 1 and 2 apply to lessees as if they
21-32 were units’ owners;
21-33 (b) Units’ owners who have leased their units to other persons may not
21-34 cast votes on those specified matters; and
21-35 (c) Lessees are entitled to notice of meetings, access to records, and
21-36 other rights respecting those matters as if they were units’ owners.
21-37 Units’ owners must also be given notice, in the manner provided in NRS
21-38 116.3108, of all meetings at which lessees are entitled to vote.
21-39 5. No votes allocated to a unit owned by the association may be cast.
21-40 6. Votes cast for the election of a member of the executive board of an
21-41 association must be counted in public.
21-42 Sec. 40. NRS 116.31139 is hereby amended to read as follows:
21-43 116.31139 1. An association may employ a person engaged in
21-44 property management for the common-interest community.
21-45 2. Except as otherwise provided in this section, a person engaged in
21-46 property management for a common-interest community must:
21-47 (a) Hold a permit to engage in property management that is issued
21-48 pursuant to the provisions of chapter 645 of NRS; or
22-1 (b) Hold a certificate issued by the real estate commission pursuant to
22-2 subsection 3.
22-3 3. The real estate commission shall provide by regulation for the
22-4 issuance of certificates for the management of common-interest
22-5 communities to persons who are not otherwise authorized to engage in
22-6 property management pursuant to the provisions of chapter 645 of NRS.
22-7 The regulations:
22-8 (a) Must establish the qualifications for the issuance of such a
22-9 certificate, including the education and experience required to obtain such
22-10 a certificate;
22-11 (b) May require applicants to pass an examination in order to obtain a
22-12 certificate;
22-13 (c) Must establish standards of practice for persons engaged in property
22-14 management for a common-interest community;
22-15 (d) Must establish the grounds for initiating disciplinary action against a
22-16 person to whom a certificate has been issued, including, without limitation,
22-17 the grounds for placing conditions, limitations or restrictions on a
22-18 certificate and for the suspension or revocation of a certificate; and
22-19 (e) Must establish rules of practice and procedure for conducting
22-20 disciplinary hearings.
22-21 The real estate division of the department of business and industry may
22-22 investigate the property managers to whom certificates have been issued to
22-23 ensure their compliance with section 37 of this act and the standards of
22-24 practice adopted pursuant to this subsection and collect a fee for the
22-25 issuance of a certificate by the commission in an amount not to exceed the
22-26 administrative costs of issuing the certificate.
22-27 4. The provisions of subsection 2 do not apply to:
22-28 (a) A person who is engaged in property management for a common-
22-29 interest community on October 1, 1999, and is granted an exemption from
22-30 the requirements of subsection 2 by the administrator upon demonstration
22-31 that he is qualified and competent to engage in property management for a
22-32 common-interest community.
22-33 (b) A financial institution.
22-34 (c) An attorney licensed to practice in this state.
22-35 (d) A trustee.
22-36 (e) An employee of a corporation who manages only the property of the
22-37 corporation.
22-38 (f) A declarant.
22-39 (g) A receiver.
22-40 5. As used in this section, “property management” means the physical,
22-41 administrative or financial maintenance and management of real property,
22-42 or the supervision of those activities for a fee, commission or other
22-43 compensation or valuable consideration.
22-44 Sec. 41. NRS 116.3115 is hereby amended to read as follows:
22-45 116.3115 1. Until the association makes an assessment for common
22-46 expenses, the declarant shall pay all common expenses. After an
22-47 assessment has been made by the association, assessments must be made at
22-48 least annually, based on a budget adopted at least annually by the
22-49 association in accordance with the requirements set forth in NRS
23-1 116.31151. Except for an association for a time-share project governed by
23-2 the provisions of chapter 119A of NRS, and unless the declaration imposes
23-3 more stringent standards, the budget must include a budget for the daily
23-4 operation of the association and the money for the reserve required by
23-5 paragraph (b) of subsection 2.
23-6 2. Except for assessments under subsections 4 to 7, inclusive:
23-7 (a) All common expenses, including a reserve, must be assessed against
23-8 all the units in accordance with the allocations set forth in the declaration
23-9 pursuant to subsections 1 and 2 of NRS 116.2107.
23-10 (b) The association shall establish an adequate reserve, funded on a
23-11 reasonable basis, for the repair, replacement and restoration of the major
23-12 components of the common elements. The reserve may be used only for
23-13 those purposes, including, without limitation, repairing, replacing and
23-14 restoring roofs, roads and sidewalks, and must not be used for daily
23-15 maintenance.
23-16 3. Any past due assessment for common expenses or installment
23-17 thereof bears interest at the rate established by the association not
23-18 exceeding 18 percent per year.
23-19 4. To the extent required by the declaration:
23-20 (a) Any common expense associated with the maintenance, repair,
23-21 restoration or replacement of a limited common element must be assessed
23-22 against the units to which that limited common element is assigned,
23-23 equally, or in any other proportion the declaration provides;
23-24 (b) Any common expense or portion thereof benefiting fewer than all of
23-25 the units must be assessed exclusively against the units benefited; and
23-26 (c) The costs of insurance must be assessed in proportion to risk and the
23-27 costs of utilities must be assessed in proportion to usage.
23-28 5. Assessments to pay a judgment against the association may be made
23-29 only against the units in the common-interest community at the time the
23-30 judgment was entered, in proportion to their liabilities for common
23-31 expenses.
23-32 6. If any common expense is caused by the misconduct of any unit’s
23-33 owner, the association may assess that expense exclusively against his unit.
23-34 7. The association of a common-interest community created before
23-35 January 1, 1992, is not required to make an assessment against a vacant lot
23-36 located within the community that is owned by the declarant.
23-37 8. If liabilities for common expenses are reallocated, assessments for
23-38 common expenses and any installment thereof not yet due must be
23-39 recalculated in accordance with the reallocated liabilities.
23-40 9. The association shall provide written notice by certified mail, return
23-41 receipt requested, to the owner of each unit of a meeting at which an
23-42 assessment for a capital improvement or the commencement of a civil
23-43 action is to be considered or action is to be taken on such an assessment at
23-44 least 21 calendar days before the meeting. Except as otherwise provided in
23-45 this subsection, the association may commence a civil action only upon a
23-46 vote [or written agreement] of the owners of units to which at least a
23-47 majority of the votes of the members of the association are allocated[.] ,
23-48 taken at a scheduled meeting. The provisions of this subsection do not
23-49 apply to a civil action that is commenced:
24-1 (a) By an association for a time-share project governed by the
24-2 provisions of chapter 119A of NRS;
24-3 (b) To enforce the payment of an assessment;
24-4 (c) To enforce the declaration, bylaws or rules of the association;
24-5 (d) To proceed with a counterclaim; or
24-6 (e) To protect the health, safety and welfare of the members of the
24-7 association[.] from an imminent risk of loss of life or serious and
24-8 permanent damage to property. If a civil action is commenced pursuant to
24-9 this paragraph without the required vote or agreement, the action must be
24-10 ratified within [90] 30 days after the commencement of the action [by]
24-11 upon a vote [or written agreement] of the owners of the units to which at
24-12 least a majority of votes of the members of the association are allocated. If
24-13 the [association, after making a good faith effort, cannot obtain the
24-14 required vote or agreement to commence or ratify such a civil action,]
24-15 action is not so ratified, the association [may thereafter seek] shall file a
24-16 special motion to dismiss the action and the court shall dismiss the action
24-17 without prejudice for [that reason only if a vote or written agreement of the
24-18 owners of the units to which at least a majority of votes of the members of
24-19 the association are allocated was obtained at the time the approval to
24-20 commence or ratify the action was sought.] failure to comply with this
24-21 paragraph.
24-22 10. At least 10 days before an association commences or seeks to
24-23 ratify the commencement of a civil action, the association shall provide a
24-24 written statement by certified mail, return receipt requested, to all units’
24-25 owners that includes:
24-26 (a) A reasonable estimate of the costs of the civil action, including ,
24-27 without limitation, reasonable attorney’s fees[;] and fees for experts and
24-28 other witnesses;
24-29 (b) An explanation that the costs and fees required to be paid in
24-30 connection with the civil action will be paid before the units’ owners
24-31 receive money as a result of the civil action, and an explanation that the
24-32 amount of money paid for such costs and fees may be greater than the
24-33 amount of money available to compensate the units’ owners;
24-34 (c) An explanation of the potential benefits of the civil action and the
24-35 potential adverse consequences if the association does not commence the
24-36 action or if the outcome of the action is not favorable to the association;
24-37 and
24-38 [(c)] (d) All disclosures that are required to be made upon the sale of
24-39 the property.
24-40 11. No person other than a unit’s owner may request the dismissal of a
24-41 civil action commenced by the association on the ground that the
24-42 association failed to comply with any provision of this section.
24-43 Sec. 42. NRS 119A.165 is hereby amended to read as follows:
24-44 119A.165 1. If a matter governed by this chapter is also governed by
24-45 chapter 116 of NRS, compliance with the provisions of chapter 116 of
24-46 NRS governing the matter which are in addition to or different from the
24-47 provisions in this chapter governing the same matter is not required. In the
24-48 event of a conflict between provisions of this chapter and chapter 116 of
24-49 NRS, the provisions of this chapter prevail.
25-1 2. Without limiting the generality of subsection 1, the provisions of
25-2 NRS 116.11145, 116.12065, 116.3103, 116.31031, 116.31034, 116.3106,
25-3 116.31065, 116.3108 to 116.311, inclusive, 116.31139, 116.31145 to
25-4 116.31158, inclusive, 116.31162, 116.31175, 116.31177, 116.41095 and
25-5 116.4117 and section 37 of this act do not apply to a time share or a time-
25-6 share project.
25-7 Sec. 43. Chapter 278 of NRS is hereby amended by adding thereto the
25-8 provisions set forth as sections 44 and 45 of this act.
25-9 Sec. 44. 1. Except as otherwise provided in this subsection, the
25-10 governing body of each city and county shall not accept an application
25-11 for a building permit for a project that includes the construction of new
25-12 footings or a new foundation for a structure or that requires excavation
25-13 or embankment of more than 5,000 cubic yards of earth, unless the
25-14 application is submitted with a geotechnical report. The governing body
25-15 may waive the requirement of the geotechnical report for any project
25-16 other than a project involving a residential dwelling unit.
25-17 2. The geotechnical report required pursuant to subsection 1 must
25-18 include:
25-19 (a) Information concerning the soil and geology of the site where the
25-20 project will be carried out;
25-21 (b) Information concerning the ground water on the site where the
25-22 project will be carried out and the potential that the ground water may
25-23 adversely affect the foundation of the project;
25-24 (c) A written statement from the architect, civil engineer or structural
25-25 engineer who was responsible for the design of the project verifying that
25-26 the design of the project is compatible with the geotechnical conditions
25-27 described in paragraphs (a) and (b);
25-28 (d) A written statement from a geotechnical engineer who has
25-29 reviewed the plans for the grading and foundation of the project
25-30 verifying that the project is geotechnically in compliance with the
25-31 geotechnical conditions of the site as described in paragraphs (a) and
25-32 (b); and
25-33 (e) Any other information required by the governing body.
25-34 3. The governing body of each city and county shall require by
25-35 ordinance the submission of a final report concerning grading of the
25-36 property, the elevation of the finished floor and the drainage on the
25-37 property for each construction project for which a geotechnical report is
25-38 required pursuant to subsection 1.
25-39 4. The ordinance adopted pursuant to subsection 3 must require:
25-40 (a) The final report concerning grading of the property to include
25-41 certification that the grading and the excavating or embanking work
25-42 complies with the requirements set forth in the geotechnical report
25-43 completed pursuant to subsection 1 and any supplements or addenda to
25-44 the report;
25-45 (b) The final report concerning the elevation of the finished floor to
25-46 include certification that the lowest elevation of the finished floor of the
25-47 project that is habitable complies with the plans for the project that were
25-48 approved by the governing body; and
26-1 (c) The final report concerning the drainage on the property to
26-2 include:
26-3 (1) A statement that the conditions of the drainage system on the
26-4 site of the project at the completion of the project complies with the plan
26-5 for drainage or the plan for the plot and grading that was approved by
26-6 the governing body; and
26-7 (2) If the plans for the project that were approved by the governing
26-8 body required a drainage system or facilities, structures or devices for
26-9 drainage that were designed by an engineer, verification from a civil
26-10 engineer that the drainage system and any facilities, structures or devices
26-11 for drainage were installed and constructed in compliance with those
26-12 plans. Devices for drainage include, without limitation, detention of
26-13 drainage on the site, drainage from one lot to another lot and devices for
26-14 conveying drainage.
26-15 5. The governing body of each city and county shall adopt an
26-16 ordinance that requires a developer to provide a person who purchases a
26-17 completed construction project described in subsection 1 with a written
26-18 report concerning the applicable building codes and regulations and any
26-19 recommendations of a geotechnical engineer and a civil engineer
26-20 concerning the use of the project. The ordinance must provide that this
26-21 report is part of the sales documents that must be acknowledged by the
26-22 buyer.
26-23 6. As used in this section, “residential dwelling unit” has the
26-24 meaning ascribed to it in NRS 278.4977.
26-25 Sec. 45. The governing body of each city and county shall adopt
26-26 ordinances to ensure the prevention and mitigation of harm to a building
26-27 or structure caused by water that is standing under the building or
26-28 structure.
26-29 Sec. 46. The amendatory provisions of this act do not apply to a claim
26-30 initiated or an action commenced pursuant to NRS 40.600 to 40.695,
26-31 inclusive, before the effective date of this act.
26-32 Sec. 47. The amendatory provisions of section 37 of this act do not
26-33 apply to offenses committed before the effective date of this act.
26-34 Sec. 48. This act becomes effective upon passage and approval.
26-35 H