SB371

requires two-thirds majority vote (§§ 11, 15, 21)

S.B. 371

Senate Bill No. 371–Senator Schneider

March 17, 2003

____________

Referred to Committee on Commerce and Labor

SUMMARY—Creates Constructional Defect Commission and revises various provisions governing actions resulting from constructional defects. (BDR 54‑251)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State: 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; creating the Constructional Defect Commission; providing for its membership; setting forth the duties of the Commission; conferring exclusive jurisdiction upon the Commission to determine claims or causes of action for constructional defects; providing exceptions; requiring a claimant to provide certain notices and allow a contractor a reasonable opportunity to repair a constructional defect before presenting a claim involving the constructional defect to the Commission; setting forth the manner in which a complaint must be presented to the Commission; requiring the Commission to hear a claim of a constructional defect within a certain period; authorizing the Commission to require a contractor to repair a constructional defect under certain circumstances; limiting the period during which an action for the recovery of damages for a constructional defect may be commenced; requiring certain persons to complete a course of instruction in constructional defects as a condition for the renewal or reinstatement of a license or certificate; prohibiting the exclusion of a public officer from a meeting of a unit-owners’ association under certain circumstances; and providing other matters properly relating thereto.

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

1-2 thereto the provisions set forth as sections 2 to 20, inclusive, of this

1-3 act.

1-4 Sec. 2. As used in sections 2 to 20, inclusive, of this act,

1-5 unless the context otherwise requires, the words and terms defined

1-6 in sections 3, 4 and 5 of this act have the meanings ascribed to

1-7 them in those sections.

1-8 Sec. 3. “Commission” means the Constructional Defect

1-9 Commission created pursuant to section 6 of this act.

1-10 Sec. 4. “Construction record” means a document received or

1-11 produced by a contractor, or any person employed by the

1-12 contractor, that contains information relating to the construction

1-13 of a residence or appurtenance, including, without limitation, any

1-14 report, record, plan, permit, contract, subcontract, invoice, work

1-15 order or other document.

1-16 Sec. 5. “Constructional defect” includes a defect in the

1-17 design, construction, manufacture, repair or landscaping of a new

1-18 residence, of an alteration of or addition to an existing residence,

1-19 or of an appurtenance. The term includes physical damage to the

1-20 residence, an appurtenance or the real property to which the

1-21 residence or appurtenance is affixed that is proximately caused by

1-22 a constructional defect.

1-23 Sec. 6. 1. The Board shall create the Constructional Defect

1-24 Commission consisting of seven members appointed by the

1-25 Governor.

1-26 2. Each member who is appointed to the Commission serves

1-27 for a term of 4 years. A member may be reappointed to the

1-28 Commission.

1-29 3. The Governor shall appoint to the Commission:

1-30 (a) Three members who are contractors recommended by the

1-31 Board, each of whom:

1-32 (1) Holds a license issued pursuant to this chapter;

1-33 (2) Is actively engaged in the contracting business and has

1-34 been so engaged for not less than 5 years preceding the date of his

1-35 appointment; and

1-36 (3) Has been a resident of this state for at least 5 years

1-37 immediately preceding his appointment; and

1-38 (b) Four members who are representatives of the general

1-39 public.

1-40 4. The Governor shall appoint a Chairman of the

1-41 Commission.

2-1 Sec. 7. 1. The members of the Commission:

2-2 (a) Serve without compensation; and

2-3 (b) Upon written request to the Board, are entitled to receive

2-4 the per diem allowance and travel expenses provided for state

2-5 officers and employees generally while engaged in the business of

2-6 the Commission. A claim submitted pursuant to this paragraph

2-7 must be paid from the account established by NRS 624.470.

2-8 2. The Governor may remove a member of the Commission

2-9 before the expiration of his term for misconduct in office,

2-10 incompetence or neglect of duty.

2-11 3. If a vacancy occurs in the membership of the Commission,

2-12 the Governor shall appoint a person to fill the vacancy for the

2-13 remainder of the unexpired term. A vacancy on the Commission

2-14 must be filled in the same manner as the original appointment.

2-15 4. Four members, at least one of whom must be a contractor,

2-16 constitute a quorum.

2-17 5. Notwithstanding any other provision of law, a member of

2-18 the Commission:

2-19 (a) Is not disqualified from public employment or holding a

2-20 public office because of his membership on the Commission; and

2-21 (b) Does not forfeit his public office or public employment

2-22 because of his membership on the Commission.

2-23 Sec. 8. 1. The Board shall arrange for courses of

2-24 instruction in the rules of procedure and substantive law

2-25 appropriate for members of the Commission.

2-26 2. Each person appointed to serve on the Commission shall

2-27 attend the instruction provided pursuant to subsection 1 before

2-28 serving on the Commission.

2-29 Sec. 9. 1. Except as otherwise provided in sections 2 to 20,

2-30 inclusive, of this act, the Commission has exclusive jurisdiction to

2-31 determine claims or causes of action for the recovery of damages

2-32 based on constructional defects, and no person may bring or

2-33 maintain such a claim or cause of action in a manner other than

2-34 that prescribed in sections 2 to 20, inclusive, of this act.

2-35 2. A final decision of the Commission concerning a claim or

2-36 cause of action specified in subsection 1 is subject to judicial

2-37 review in accordance with chapter 233B of NRS.

2-38 3. The provisions of chapter 241 of NRS do not apply to any

2-39 meeting or hearing of the Commission held to carry out the

2-40 provisions of sections 2 to 20, inclusive, of this act or to the

2-41 deliberations of the Commission on any information or evidence

2-42 pursuant to sections 2 to 20, inclusive, of this act.

2-43 Sec. 10. The Commission and its members acting pursuant to

2-44 sections 2 to 20, inclusive, of this act are immune from any civil

2-45 liability for any decision or action taken in good faith and without

3-1 malicious intent in response to a complaint filed with the

3-2 Commission.

3-3 Sec. 11. 1. The Board:

3-4 (a) Shall develop and maintain a list of alternate members who

3-5 satisfy the requirements of sections 6 and 8 of this act;

3-6 (b) Shall schedule the hearings for the Commission;

3-7 (c) Shall obtain, before or after the filing of a complaint with

3-8 the Commission, such construction records and other materials as

3-9 may be required by the parties or the Commission in connection

3-10 with the claim of a constructional defect;

3-11 (d) Shall charge and collect a reasonable fee for copying

3-12 materials produced under subpoena;

3-13 (e) For good cause shown, may authorize a continuance for

3-14 the proceedings involving the Commission;

3-15 (f) To the extent necessary for the Commission to carry out its

3-16 duties, shall provide the Commission with administrative support,

3-17 equipment and office space; and

3-18 (g) May adopt such rules of practice and procedure as are

3-19 necessary to carry out the provisions of sections 2 to 20, inclusive,

3-20 of this act.

3-21 2. The Attorney General shall serve as legal counsel for the

3-22 Commission.

3-23 Sec. 12. 1. A member of the Commission may disqualify

3-24 himself from acting in any matter upon the ground of actual or

3-25 implied bias.

3-26 2. A party to a matter who seeks to disqualify a member of the

3-27 Commission from acting on a complaint of a constructional defect

3-28 filed pursuant to section 15 of this act shall file a request for

3-29 disqualification in writing with the Board not later than 15 days

3-30 after the expiration of the time in which to answer the complaint,

3-31 specifying the facts upon which such disqualification is sought. A

3-32 party may make a request for the disqualification of any member

3-33 of the Commission for cause on any of the grounds provided

3-34 pursuant to NRS 16.050 for the challenge of jurors.

3-35 3. The Board shall determine whether cause exists to

3-36 disqualify a member of the Commission pursuant to a request filed

3-37 by a party and shall notify each party in writing of its decision not

3-38 later than 15 days after the request is made.

3-39 4. Except as otherwise provided in subsection 5, the

3-40 Commission, less any member who has been disqualified, may

3-41 proceed to review a complaint without designating a person to sit

3-42 in the place of a disqualified member.

3-43 5. If the number of members who are disqualified or whose

3-44 temporary absence prohibits a quorum of the Commission from

3-45 forming, the Board shall, upon the disqualification or temporary

4-1 absence of a member of the Commission, designate an alternate

4-2 member from the list developed pursuant to section 11 of this act

4-3 who is the same class of member as the disqualified or absent

4-4 member to sit in the place of the disqualified or absent member. If

4-5 an alternate member is designated, that member must be identified

4-6 in the notice provided to the parties pursuant to subsection 3.

4-7 Sec. 13. 1. Except as otherwise provided in this section, no

4-8 claim involving a constructional defect may be presented to the

4-9 Commission until the claimant provides:

4-10 (a) Two written notices by certified mail, return receipt

4-11 requested, to the contractor, at the contractor’s last known

4-12 address, of the constructional defect alleged in the complaint

4-13 against the contractor; and

4-14 (b) A reasonable opportunity, following the written notices, for

4-15 the contractor to repair the alleged constructional defect.

4-16 2. The written notices required pursuant to subsection 1

4-17 must:

4-18 (a) Be mailed at least 30 days apart;

4-19 (b) Specify, in reasonable detail, the defect or any damage or

4-20 injury to each residence or appurtenance that is the subject of the

4-21 claim;

4-22 (c) Describe in reasonable detail the cause of the defect, if the

4-23 cause is known, and the nature and extent that is known of the

4-24 damage or injury resulting from the defect; and

4-25 (d) Provide the location of each defect within each residence

4-26 or appurtenance to the extent known.

4-27 3. Within 45 days after the contractor receives the first notice,

4-28 on his written request, the contractor is entitled to inspect the

4-29 property that is the subject of the claim to determine the nature

4-30 and cause of the defect, damage or injury and the nature and

4-31 extent of repairs necessary to remedy the defect. The contractor

4-32 shall, before conducting the inspection, provide reasonable notice

4-33 of the inspection, and shall conduct the inspection at a reasonable

4-34 time. The contractor may take reasonable steps to establish the

4-35 existence of the defect, damage or injury.

4-36 4. Within 15 days after a contractor receives the second

4-37 notice, a claimant may present a claim to the Commission as set

4-38 forth in section 15 of this act if the contractor fails to:

4-39 (a) Make an agreement that is acceptable to the claimant to

4-40 make repairs, if the contractor is licensed to make the repairs, or

4-41 cause the repairs to be made, at the contractor’s expense, by

4-42 another contractor who is bonded, insured and licensed to make

4-43 the repairs; or

4-44 (b) Make the repairs specified in an agreement between the

4-45 claimant and contractor pursuant to paragraph (a):

5-1 (1) Within the time specified in the agreement; and

5-2 (2) In a good and workmanlike manner.

5-3 5. A written waiver or settlement agreement executed by a

5-4 claimant after a contractor has corrected or otherwise repaired a

5-5 constructional defect pursuant to this section does not bar a claim

5-6 for the constructional defect if it is determined that the contractor

5-7 failed to correct or repair the defect properly.

5-8 Sec. 14. A contractor or his representative must be present at

5-9 any inspection at the residence or appurtenance, if any, that is the

5-10 subject of a claim governed by sections 2 to 20, inclusive, of this

5-11 act, which is conducted by the claimant or his representative,

5-12 including, without limitation, an expert hired or retained by the

5-13 claimant to conduct the inspection.

5-14 Sec. 15. 1. A claim of a constructional defect is properly

5-15 presented to the Commission by filing a complaint with the Board.

5-16 2. The complaint must contain a clear and concise statement

5-17 of the facts of the case, including, without limitation, the persons

5-18 involved and the dates and circumstances, so far as they are

5-19 known, of the alleged constructional defect. The Commission may

5-20 dismiss a complaint if the complaint is filed without an affidavit

5-21 supporting the allegations of the complaint submitted by an expert

5-22 concerning the alleged constructional defect.

5-23 3. The person against whom a complaint is made must,

5-24 within 30 days after receipt of the complaint, file an answer with

5-25 the Board, accompanied by a fee of $250. The Board may

5-26 authorize an extension of the time in which an answer must be

5-27 filed only if all parties to the action stipulate to the extension.

5-28 4. Unless otherwise stipulated to by all the parties to the

5-29 action, an answer or response that is not timely filed may not be:

5-30 (a) Accepted by the Board; or

5-31 (b) Considered by the Commission.

5-32 5. The claimant may respond only to the allegations of the

5-33 answer or any accompanying affidavit by filing a written response

5-34 with the Board within 15 days after he receives the answer. The

5-35 Commission shall disregard any portion of the response that does

5-36 not address an allegation raised in the answer or an affidavit

5-37 accompanying the answer. No fee may be charged or collected by

5-38 the Board for the filing of the response. The Board may authorize

5-39 an extension of the time in which a response may be filed only if

5-40 all parties to the action stipulate to the extension.

5-41 6. A copy of any pleading required by this section to be filed

5-42 with the Board must be delivered by the party, by certified or

5-43 registered mail or by personal service, to each opposing party or, if

5-44 an opposing party is represented in the proceedings by counsel, to

5-45 his attorney.

6-1 7. The fees provided by this section must not be charged or

6-2 collected more than once from any party.

6-3 8. If a person fails to pay any fee required by this section, the

6-4 Board may refer the nonpayment to the Office of the Attorney

6-5 General for collection of the fee and any costs incurred.

6-6 Sec. 16. 1. The Board may, by certified or registered mail,

6-7 issue subpoenas as may be required by the Commission, to compel

6-8 the attendance of expert witnesses and, as may be required by the

6-9 parties or the Commission, to compel the production of

6-10 construction records or other materials.

6-11 2. The Board shall keep the material so produced and make it

6-12 available to the parties, upon request, for inspection or copying. If

6-13 the material is reasonably capable of being copied, the Board shall

6-14 provide a copy to the parties, upon request and the receipt of a fee

6-15 for the copying.

6-16 3. If an expert witness refuses to attend or testify or if a

6-17 person refuses to produce any construction records or other

6-18 materials as required by the subpoena, the Board may petition the

6-19 district court for an order compelling the expert witness to attend

6-20 and testify or the other person to produce the construction records

6-21 or other materials. The petition must include a statement

6-22 indicating that:

6-23 (a) Notice has been given of the time and place of attendance

6-24 of the expert witness or for the production of the construction

6-25 records or other materials;

6-26 (b) The expert witness or the person required to produce the

6-27 construction records or other materials has been subpoenaed by

6-28 the Board pursuant to this section; and

6-29 (c) The expert witness has failed or refused to attend or testify,

6-30 to produce the construction records or other materials required by

6-31 the subpoena, or to answer questions propounded to him.

6-32 4. Upon receiving a petition pursuant to subsection 3, the

6-33 court shall enter an order directing the expert witness or other

6-34 person to appear before the court at a time and place to be fixed by

6-35 the court in its order, which is not more than 10 days after the date

6-36 of the order, and show cause why he has not attended, testified, or

6-37 produced the construction records or other materials. A certified

6-38 copy of the order must be served upon the expert witness or other

6-39 person.

6-40 5. If it appears to the court that the subpoena was regularly

6-41 issued by the Board, the court shall enter an order that the expert

6-42 witness or other person appear at the time and place fixed in the

6-43 order and testify or produce the required construction records or

6-44 other materials, and upon his failure to obey the order, the expert

7-1 witness or other person must be dealt with as for contempt of

7-2 court.

7-3 Sec. 17. 1. A claim of a constructional defect must be heard

7-4 by the Commission within 45 days after the expiration of the time

7-5 in which to answer the complaint filed pursuant to section 15 of

7-6 this act.

7-7 2. The Commission shall consider all the construction

7-8 records or other materials, including, without limitation, the

7-9 complaint, answer and response, construction records and the

7-10 testimony of an expert witness the Commission considers

7-11 necessary, and shall, based on the evidence submitted, determine

7-12 only whether there is a reasonable probability that a

7-13 constructional defect exists and that the claimant was damaged

7-14 thereby.

7-15 3. Copies of the original complaint and of the findings of the

7-16 Commission with regard to each matter considered by the

7-17 Commission must be forwarded to the city or county building

7-18 department where the alleged constructional defect occurred, as

7-19 appropriate.

7-20 4. The Board shall promptly mail to each party to the claim a

7-21 copy of the findings of the Commission concerning the complaint.

7-22 5. The findings must be based upon a vote of the members of

7-23 the Commission made by a written ballot, must be rendered within

7-24 5 days after the hearing on the claim and must be in substantially

7-25 the following form:

7-26 (a) Based upon a review of the materials submitted by the

7-27 parties and the testimony of expert witnesses, if any, the

7-28 Commission finds that there is a reasonable probability that a

7-29 constructional defect exists and that the claimant was damaged

7-30 thereby; or

7-31 (b) Based upon a review of the materials submitted by the

7-32 parties and the testimony of expert witnesses, if any, the

7-33 Commission finds that there is no reasonable probability that a

7-34 constructional defect exists.

7-35 6. A finding made pursuant to paragraph (a) of subsection 5

7-36 must also include the findings of the Commission concerning each

7-37 claim of constructional defect alleged by the claimant.

7-38 Sec. 18. 1. If the Commission issues a finding in favor of

7-39 the claimant pursuant to paragraph (a) of subsection 5 of section

7-40 17 of this act, the Commission may order the contractor to:

7-41 (a) Make repairs at the contractor’s expense, if the contractor

7-42 is licensed to make the repairs; or

7-43 (b) Cause the repairs to be made, at the contractor’s expense

7-44 and, if insured, his insurer’s expense, by another contractor who

7-45 is bonded, insured and licensed to make the repairs.

8-1 2. Any repairs ordered pursuant to this section must be

8-2 completed within 90 days after the contractor is served with a

8-3 written notice of the order.

8-4 3. A copy of the order must be served on each party to the

8-5 claim personally, or by registered or certified mail. The order is

8-6 effective upon such service, unless the Commission orders

8-7 otherwise.

8-8 4. A contractor may petition the Board, by written request

8-9 supported by an affidavit of the contractor, for an extension of

8-10 the time for completion of repairs if completion is delayed by the

8-11 claimant or by any other event beyond the control of the

8-12 contractor, or if timely completion of the repairs is not reasonably

8-13 possible.

8-14 5. The Board may grant one extension of time not to exceed

8-15 45 days for a contractor to complete the repairs required by the

8-16 order of the Commission if the extension is timely requested and

8-17 supported by an affidavit of the contractor. The Board shall

8-18 provide written notice of any grant or denial of an extension of

8-19 time to each party to the claim within 10 days after receipt of the

8-20 request.

8-21 6. If the contractor fails to comply with an order issued

8-22 pursuant to this section, upon the written request of the claimant

8-23 made within 10 days after the expiration of the period for making

8-24 the repairs or causing the repairs to be made as described in the

8-25 order, or any authorized extension for the contractor to make the

8-26 repairs or cause the repairs to be made, the Commission:

8-27 (a) May cause the repairs to be made, at the constructor’s

8-28 expense and, if insured, at his insurer’s expense, by another

8-29 contractor who is bonded, insured and licensed to make the

8-30 repairs; and

8-31 (b) Shall notify the Board in writing of the failure of the

8-32 contractor to comply with the order. As soon as practicable after

8-33 receiving a written notice pursuant to this paragraph, the Board

8-34 shall revoke the license of the contractor.

8-35 Sec. 19. If the Commission issues a finding that there is no

8-36 reasonable probability that a constructional defect exists, the

8-37 Commission shall dismiss the complaint filed in the action

8-38 pursuant to section 15 of this act.

8-39 Sec. 20. 1. No action may be commenced for the recovery

8-40 of damages for a constructional defect more than 2 years after the

8-41 alleged constructional defect is discovered or should have been

8-42 discovered through the use of reasonable diligence.

8-43 2. The period of limitation set forth in subsection 1 is tolled

8-44 for any period during which the person against whom the recovery

8-45 of damages is sought conceals the constructional defect upon

9-1 which the action is based and which is known or through the use

9-2 of reasonable diligence should have been known to him.

9-3 Sec. 21. NRS 624.470 is hereby amended to read as follows:

9-4 624.470 1. Except as otherwise provided in subsection 3, in

9-5 addition to the annual fee for a license required pursuant to NRS

9-6 624.280, a residential contractor shall pay to the Board an annual

9-7 assessment in the following amount, if the monetary limit on his

9-8 license is:

9-9 Not more than $1,000,000............... $100

9-10 More than $1,000,000 but limited..... 250

9-11 Unlimited............................................. 500

9-12 2. The Board shall administer and account separately for the

9-13 money received from the annual assessments collected pursuant to

9-14 subsection 1. The Board may refer to the money in the account as

9-15 the “Recovery Fund.”

9-16 3. The Board[shall] :

9-17 (a) Shall suspend the collection of assessments pursuant to

9-18 subsection 1 when the balance in the account reaches 150 percent of

9-19 the largest balance in the account during the previous fiscal year[.] ;

9-20 and

9-21 (b) May increase the annual assessment imposed pursuant to

9-22 subsection 1 in an amount that, as determined by the Board, is

9-23 required to pay any claims for per diem allowances and travel

9-24 expenses of the Constructional Defect Commission pursuant to

9-25 section 7 of this act.

9-26 4. Except as otherwise provided in NRS 624.540, the money in

9-27 the account must be used to pay claims[made:] :

9-28 (a) Made by owners who are damaged by the failure of a

9-29 residential contractor to perform qualified services adequately, as

9-30 provided in[NRS 624.400 to 624.560, inclusive.] sections 2 to 20,

9-31 inclusive, of this act; or

9-32 (b) Submitted pursuant to section 7 of this act.

9-33 Sec. 22. Chapter 645 of NRS is hereby amended by adding

9-34 thereto a new section to read as follows:

9-35 “Constructional defect” has the meaning ascribed to it in

9-36 section 5 of this act.

9-37 Sec. 23. NRS 645.0005 is hereby amended to read as follows:

9-38 645.0005 As used in this chapter, unless the context otherwise

9-39 requires, the words and terms defined in NRS 645.001 to 645.040,

9-40 inclusive, and section 22 of this act have the meanings ascribed to

9-41 them in those sections.

10-1 Sec. 24. NRS 645.285 is hereby amended to read as follows:

10-2 645.285 1. Application for original registration as an owner-

10-3 developer [shall] must be made on a form provided by the Division,

10-4 and [shall] must set forth:

10-5 (a) The limits of the area within which the applicant owns the

10-6 residences proposed to be sold;

10-7 (b) The location of the applicant’s principal place of business;

10-8 and

10-9 (c) Any further information required by regulations of the

10-10 Commission.

10-11 2. An application to enlarge the area covered by a registration

10-12 shall set forth the limits of the area to be added.

10-13 3. The Division shall not approve an application for original

10-14 registration as an owner-developer unless the owner-developer

10-15 submits evidence satisfactory to the Division that he has, before

10-16 the date of his application, completed a course of instruction in

10-17 constructional defects approved by the State Contractors’ Board.

10-18 Sec. 25. NRS 645.575 is hereby amended to read as follows:

10-19 645.575 1. The Commission shall prescribe standards for the

10-20 continuing education of persons licensed pursuant to this chapter by

10-21 adopting regulations which include:

10-22 (a) For renewal of a license which is on active status, a

10-23 requirement for the hours of attendance at any approved educational

10-24 course, seminar or conference of:

10-25 (1) Thirty hours within the first year immediately after initial

10-26 licensing; and

10-27 (2) Fifteen hours within each subsequent 2-year period

10-28 before renewal.

10-29 For each period, at least 6 of the hours must be devoted to ethics,

10-30 professional conduct or the legal aspects of real estate.

10-31 (b) For reinstatement of a license which has been placed on

10-32 inactive status, a requirement for total attendance at any approved

10-33 educational course, seminar or conference of:

10-34 (1) Thirty hours if the license was on inactive status for 2

10-35 years or less during the initial license period;

10-36 (2) Fifteen hours if the license was on inactive status for a

10-37 period of 2 years or less, no part of which was during the initial

10-38 license period;

10-39 (3) Forty-five hours if the license was on inactive status for a

10-40 period of more than 2 years, part of which was during the initial

10-41 license period; or

10-42 (4) Thirty hours if the license was on inactive status for a

10-43 period of more than 2 years, no part of which was during the initial

10-44 license period.

11-1 For each period, at least 6 of the hours must be devoted to ethics,

11-2 professional conduct or the legal aspects of real estate.

11-3 (c) A basis and method of qualifying educational programs and

11-4 certifying attendance which will satisfy the requirements of this

11-5 section.

11-6 (d) A procedure for the evaluation of petitions based on a claim

11-7 of equivalency with the requirements of paragraph (a) or (b).

11-8 (e) A system of controlling and reporting qualifying attendance.

11-9 (f) A statement of the conditions for which an extension of time

11-10 may be granted to comply with the continuing education

11-11 requirements as well as a method of applying and qualifying for an

11-12 extension.

11-13 2. The standards prescribed in subsection 1 must permit

11-14 alternatives of subject material, taking cognizance of specialized

11-15 areas of practice and alternatives in sources of programs considering

11-16 availability in area and time. The standards must include, where

11-17 qualified, generally accredited educational institutions, private

11-18 vocational schools, educational programs and seminars of

11-19 professional societies and organizations, other organized educational

11-20 programs on technical subjects, or equivalent offerings. The

11-21 Commission shall qualify only those educational courses that it

11-22 determines address the appropriate subject matter and are given by

11-23 an accredited university or community college. Subject to the

11-24 provisions of this section, the Commission has exclusive authority

11-25 to determine what is an appropriate subject matter for qualification

11-26 as a continuing education course.

11-27 3. Except as otherwise provided in this subsection, the license

11-28 of a broker, broker-salesman or salesman must not be renewed or

11-29 reinstated unless the Administrator finds that the applicant for the

11-30 renewal license or for reinstatement to active status has completed

11-31 the continuing education required by this chapter. Any amendment

11-32 or repeal of a regulation does not operate to prevent an applicant

11-33 from complying with this section for the next licensing period

11-34 following the amendment or repeal.

11-35 4. In addition to any other requirement for the renewal or

11-36 reinstatement of a license pursuant to this chapter, a broker,

11-37 broker-salesman or salesman must, as a condition for the renewal

11-38 or reinstatement of his license, complete a course of instruction in

11-39 constructional defects approved by the State Contractors’ Board.

11-40 The course of instruction must be completed:

11-41 (a) For the renewal of a license that is on active status, during

11-42 each of the 2 years immediately preceding the application for

11-43 renewal; or

12-1 (b) For the reinstatement of a license that has been placed on

12-2 inactive status, during the year immediately preceding the

12-3 application for reinstatement.

12-4 Sec. 26. NRS 645.6052 is hereby amended to read as follows:

12-5 645.6052 1. A person who is licensed pursuant to this chapter

12-6 as a real estate broker, real estate broker-salesman or real estate

12-7 salesman may apply to the Real Estate Division for a permit to

12-8 engage in property management.

12-9 2. An applicant for a permit must:

12-10 (a) Furnish proof satisfactory to the Division that he has

12-11 successfully completed at least 24 classroom hours of instruction in

12-12 property management; and

12-13 (b) Comply with all other requirements established by the

12-14 Commission for the issuance of a permit.

12-15 3. A permit expires, and may be renewed, at the same time as

12-16 the license of the holder of the permit.

12-17 4. An applicant for the renewal of a permit must:

12-18 (a) Furnish proof satisfactory to the Division that he has

12-19 successfully completed at least 3 of the hours of the continuing

12-20 education required for the renewal of his license pursuant to NRS

12-21 645.575 in a course of instruction in constructional defects

12-22 specified in subsection 4 of NRS 645.575 and an approved

12-23 educational course, seminar or conference concerning property

12-24 management; and

12-25 (b) Comply with all other requirements established by the

12-26 Commission for the renewal of a permit.

12-27 5. The Commission may adopt such regulations as it

12-28 determines are necessary to carry out the provisions of this section.

12-29 The regulations may, without limitation:

12-30 (a) Establish additional requirements for the issuance or renewal

12-31 of a permit.

12-32 (b) Establish a fee for the issuance and renewal of a permit.

12-33 (c) Set forth standards of education for the approval of a course

12-34 of instruction to qualify a person for a permit pursuant to this

12-35 section.

12-36 Sec. 27. Chapter 645C of NRS is hereby amended by adding

12-37 thereto a new section to read as follows:

12-38 “Constructional defect” has the meaning ascribed to it in

12-39 section 5 of this act.

12-40 Sec. 28. NRS 645C.010 is hereby amended to read as follows:

12-41 645C.010 As used in this chapter, unless the context otherwise

12-42 requires, the words and terms defined in NRS 645C.020 to

12-43 645C.130, inclusive, and section 27 of this act have the meanings

12-44 ascribed to them in those sections.

13-1 Sec. 29. NRS 645C.420 is hereby amended to read as follows:

13-2 645C.420 1. The Division may place a certificate or license

13-3 on inactive status:

13-4 (a) At the request of the appraiser;

13-5 (b) For failure of the appraiser to notify the Division pursuant to

13-6 NRS 645C.400 of any change in the name or location of his

13-7 business, or of the location or any change in the location where his

13-8 records are stored;

13-9 (c) For failure to apply and pay the fee for renewal before the

13-10 expiration of the certificate or license; or

13-11 (d) As a result of a disciplinary proceeding against the appraiser.

13-12 2. An appraiser whose certificate or license has been placed on

13-13 inactive status shall not prepare or communicate appraisals until he

13-14 meets all the requirements for the reinstatement of his certificate or

13-15 license.

13-16 3. A certificate or license may be reinstated upon submission

13-17 of the required fee and proof of completion of the required hours of

13-18 continuing education[,] and the course of instruction in

13-19 constructional defects specified in subsection 2 of NRS 645C.430,

13-20 and upon approval by the Division.

13-21 Sec. 30. NRS 645C.430 is hereby amended to read as follows:

13-22 645C.430 1. An appraiser must complete the following

13-23 number of hours of continuing education in courses approved by the

13-24 Commission as a condition to the renewal of an active certificate or

13-25 license or the reinstatement of an inactive certificate or license:

13-26 (a) For the renewal of an active certificate or license, not less

13-27 than 30 hours of instruction within the 2 years immediately

13-28 preceding the application for renewal.

13-29 (b) For the reinstatement of a certificate or license which has

13-30 been on inactive status:

13-31 (1) For not more than 2 years, or for more than 2 years

13-32 including the initial period of certification or licensure, not less than

13-33 30 hours of instruction.

13-34 (2) For more than 2 years, no part of which includes the

13-35 initial period of certification or licensure, not less than 15 hours of

13-36 instruction per year for each year that the certificate or license was

13-37 on inactive status, not to exceed 60 hours of instruction.

13-38 2. In addition to the requirements for renewing or reinstating

13-39 a license or certificate set forth in subsection 1, an appraiser must,

13-40 as a condition for the renewal of an active certificate or license or

13-41 the reinstatement of an inactive certificate or license, complete a

13-42 course of instruction in constructional defects approved by the

13-43 State Contractors’ Board. The course of instruction must be

13-44 completed:

14-1 (a) For the renewal of an active certificate or license, during

14-2 each of the 2 years immediately preceding the application for

14-3 renewal; or

14-4 (b) For the reinstatement of a certificate or license which has

14-5 been on inactive status, during the year immediately preceding the

14-6 application for reinstatement.

14-7 3. As used in this section, an “hour of instruction” means at

14-8 least 50 minutes of actual time spent receiving instruction.

14-9 Sec. 31. Chapter 645D of NRS is hereby amended by adding

14-10 thereto a new section to read as follows:

14-11 “Constructional defect” has the meaning ascribed to it in

14-12 section 5 of this act.

14-13 Sec. 32. NRS 645D.010 is hereby amended to read as follows:

14-14 645D.010 As used in this chapter, unless the context otherwise

14-15 requires, the words and terms defined in NRS 645D.020 to

14-16 645D.080, inclusive, and section 31 of this act have the meanings

14-17 ascribed to them in those sections.

14-18 Sec. 33. NRS 645D.120 is hereby amended to read as follows:

14-19 645D.120 The Division shall adopt:

14-20 1. Regulations prescribing the education and experience

14-21 required to obtain a certificate.

14-22 2. Regulations prescribing a standard of practice and code of

14-23 ethics for certified inspectors. Such regulations must establish a

14-24 degree of care that must be exercised by a reasonably prudent

14-25 certified inspector.

14-26 3. Regulations requiring a certified inspector, as a condition

14-27 for the renewal of his certificate, to complete a course of

14-28 instruction in constructional defects approved by the State

14-29 Contractors’ Board. The regulations must include the

14-30 requirements for submission of proof of attendance at the course.

14-31 4. Such other regulations as are necessary for the

14-32 administration of this chapter.

14-33 Sec. 34. NRS 645D.230 is hereby amended to read as follows:

14-34 645D.230 1. The Division shall issue a certificate to each

14-35 eligible person in the form and size prescribed by the Division. A

14-36 certificate must:

14-37 (a) Indicate the name and address of the inspector and the

14-38 location of each place where he transacts business as an inspector;

14-39 and

14-40 (b) Contain any additional matter prescribed by the Division.

14-41 2. A certificate is valid for 2 years after the first day of the first

14-42 calendar month immediately following the date it is issued.

14-43 3. If an inspector fails to apply for the renewal of his certificate

14-44 and fails to submit proof satisfactory to the Division that he has

14-45 completed a course of instruction in constructional defects during

15-1 each of the 2 years immediately preceding his application and pay

15-2 the fee for renewal before the certificate expires, and applies for

15-3 renewal:

15-4 (a) Not later than 1 year after the date of expiration, he must

15-5 submit to the Division the proof of completion of a course of

15-6 instruction in constructional defects required by this subsection

15-7 and pay a fee equal to 150 percent of the amount otherwise required

15-8 for renewal.

15-9 (b) Later than 1 year after the date of expiration, he must apply

15-10 in the same manner as for an original certificate.

15-11 Sec. 35. NRS 11.202 is hereby amended to read as follows:

15-12 11.202 1. [An] Except as otherwise provided in section 20 of

15-13 this act, an action may be commenced against the owner, occupier

15-14 or any person performing or furnishing the design, planning,

15-15 supervision or observation of construction, or the construction of an

15-16 improvement to real property at any time after the substantial

15-17 completion of such an improvement, for the recovery of damages

15-18 for:

15-19 (a) Any deficiency in the design, planning, supervision or

15-20 observation of construction or the construction of such an

15-21 improvement which is the result of his willful misconduct or which

15-22 he fraudulently concealed;

15-23 (b) Injury to real or personal property caused by any such

15-24 deficiency; or

15-25 (c) Injury to or the wrongful death of a person caused by any

15-26 such deficiency.

15-27 2. The provisions of this section do not apply in an action

15-28 brought against:

15-29 (a) The owner or keeper of any hotel, inn, motel, motor court,

15-30 boardinghouse or lodginghouse in this state on account of his

15-31 liability as an innkeeper.

15-32 (b) Any person on account of a defect in a product.

15-33 Sec. 36. NRS 11.203 is hereby amended to read as follows:

15-34 11.203 1. Except as otherwise provided in NRS 11.202 and

15-35 11.206, and section 20 of this act, no action may be commenced

15-36 against the owner, occupier or any person performing or furnishing

15-37 the design, planning, supervision or observation of construction, or

15-38 the construction of an improvement to real property more than 10

15-39 years after the substantial completion of such an improvement, for

15-40 the recovery of damages for:

15-41 (a) Any deficiency in the design, planning, supervision or

15-42 observation of construction or the construction of such an

15-43 improvement which is known or through the use of reasonable

15-44 diligence should have been known to him;

16-1 (b) Injury to real or personal property caused by any such

16-2 deficiency; or

16-3 (c) Injury to or the wrongful death of a person caused by any

16-4 such deficiency.

16-5 2. Notwithstanding the provisions of NRS 11.190 and

16-6 subsection 1 of this section, if an injury occurs in the 10th year after

16-7 the substantial completion of such an improvement, an action for

16-8 damages for injury to property or person, damages for wrongful

16-9 death resulting from such injury or damages for breach of contract

16-10 may be commenced within 2 years after the date of such injury,

16-11 irrespective of the date of death, but in no event may an action be

16-12 commenced more than 12 years after the substantial completion of

16-13 the improvement.

16-14 3. The provisions of this section do not apply to a claim for

16-15 indemnity or contribution.

16-16 Sec. 37. NRS 11.204 is hereby amended to read as follows:

16-17 11.204 1. Except as otherwise provided in NRS 11.202,

16-18 11.203 and 11.206, and section 20 of this act, no action may be

16-19 commenced against the owner, occupier or any person performing

16-20 or furnishing the design, planning, supervision or observation of

16-21 construction, or the construction, of an improvement to real property

16-22 more than 8 years after the substantial completion of such an

16-23 improvement, for the recovery of damages for:

16-24 (a) Any latent deficiency in the design, planning, supervision or

16-25 observation of construction or the construction of such an

16-26 improvement;

16-27 (b) Injury to real or personal property caused by any such

16-28 deficiency; or

16-29 (c) Injury to or the wrongful death of a person caused by any

16-30 such deficiency.

16-31 2. Notwithstanding the provisions of NRS 11.190 and

16-32 subsection 1 of this section, if an injury occurs in the eighth year

16-33 after the substantial completion of such an improvement, an action

16-34 for damages for injury to property or person, damages for wrongful

16-35 death resulting from such injury or damages for breach of contract

16-36 may be commenced within 2 years after the date of such injury,

16-37 irrespective of the date of death, but in no event may an action be

16-38 commenced more than 10 years after the substantial completion of

16-39 the improvement.

16-40 3. The provisions of this section do not apply to a claim for

16-41 indemnity or contribution.

16-42 4. For the purposes of this section, “latent deficiency” means a

16-43 deficiency which is not apparent by reasonable inspection.

17-1 Sec. 38. NRS 11.205 is hereby amended to read as follows:

17-2 11.205 1. Except as otherwise provided in NRS 11.202,

17-3 11.203 and 11.206, and section 20 of this act, no action may be

17-4 commenced against the owner, occupier or any person performing

17-5 or furnishing the design, planning, supervision or observation of

17-6 construction, or the construction of an improvement to real property

17-7 more than 6 years after the substantial completion of such an

17-8 improvement, for the recovery of damages for:

17-9 (a) Any patent deficiency in the design, planning, supervision or

17-10 observation of construction or the construction of such an

17-11 improvement;

17-12 (b) Injury to real or personal property caused by any such

17-13 deficiency; or

17-14 (c) Injury to or the wrongful death of a person caused by any

17-15 such deficiency.

17-16 2. Notwithstanding the provisions of NRS 11.190 and

17-17 subsection 1 of this section, if an injury occurs in the sixth year after

17-18 the substantial completion of such an improvement, an action for

17-19 damages for injury to property or person, damages for wrongful

17-20 death resulting from such injury or damages for breach of contract

17-21 may be commenced within 2 years after the date of such injury,

17-22 irrespective of the date of death, but in no event may an action be

17-23 commenced more than 8 years after the substantial completion of

17-24 the improvement.

17-25 3. The provisions of this section do not apply to a claim for

17-26 indemnity or contribution.

17-27 4. For the purposes of this section, “patent deficiency” means a

17-28 deficiency which is apparent by reasonable inspection.

17-29 Sec. 39. NRS 113.135 is hereby amended to read as follows:

17-30 113.135 1. Upon signing a sales agreement with the initial

17-31 purchaser of residential property that was not occupied by the

17-32 purchaser for more than 120 days after substantial completion of the

17-33 construction of the residential property, the seller shall:

17-34 (a) Provide to the initial purchaser a copy of NRS 11.202 to

17-35 11.206, inclusive, and [40.600 to 40.695, inclusive;] sections 2 to

17-36 20, inclusive, of this act;

17-37 (b) Notify the initial purchaser of any soil report prepared for the

17-38 residential property or for the subdivision in which the residential

17-39 property is located; and

17-40 (c) If requested in writing by the initial purchaser not later than

17-41 5 days after signing the sales agreement, provide to the purchaser

17-42 without cost each report described in paragraph (b) not later than 5

17-43 days after the seller receives the written request.

18-1 2. Not later than 20 days after receipt of all reports pursuant to

18-2 paragraph (c) of subsection 1, the initial purchaser may rescind the

18-3 sales agreement.

18-4 3. The initial purchaser may waive his right to rescind the sales

18-5 agreement pursuant to subsection 2. Such a waiver is effective only

18-6 if it is made in a written document that is signed by the purchaser.

18-7 Sec. 40. NRS 116.3115 is hereby amended to read as follows:

18-8 116.3115 1. Until the association makes an assessment for

18-9 common expenses, the declarant shall pay all common expenses.

18-10 After an assessment has been made by the association, assessments

18-11 must be made at least annually, based on a budget adopted at least

18-12 annually by the association in accordance with the requirements set

18-13 forth in NRS 116.31151. Unless the declaration imposes more

18-14 stringent standards, the budget must include a budget for the daily

18-15 operation of the association and the money for the reserve required

18-16 by paragraph (b) of subsection 2.

18-17 2. Except for assessments under subsections 4 to 7, inclusive:

18-18 (a) All common expenses, including a reserve, must be assessed

18-19 against all the units in accordance with the allocations set forth in

18-20 the declaration pursuant to subsections 1 and 2 of NRS 116.2107.

18-21 (b) The association shall establish an adequate reserve, funded

18-22 on a reasonable basis, for the repair, replacement and restoration of

18-23 the major components of the common elements. The reserve may be

18-24 used only for those purposes, including, without limitation,

18-25 repairing, replacing and restoring roofs, roads and sidewalks, and

18-26 must not be used for daily maintenance.

18-27 3. Any past due assessment for common expenses or

18-28 installment thereof bears interest at the rate established by the

18-29 association not exceeding 18 percent per year.

18-30 4. To the extent required by the declaration:

18-31 (a) Any common expense associated with the maintenance,

18-32 repair, restoration or replacement of a limited common element

18-33 must be assessed against the units to which that limited common

18-34 element is assigned, equally, or in any other proportion the

18-35 declaration provides;

18-36 (b) Any common expense or portion thereof benefiting fewer

18-37 than all of the units must be assessed exclusively against the units

18-38 benefited; and

18-39 (c) The costs of insurance must be assessed in proportion to risk

18-40 and the costs of utilities must be assessed in proportion to usage.

18-41 5. Assessments to pay a judgment against the association may

18-42 be made only against the units in the common-interest community at

18-43 the time the judgment was entered, in proportion to their liabilities

18-44 for common expenses.

19-1 6. If any common expense is caused by the misconduct of any

19-2 unit’s owner, the association may assess that expense exclusively

19-3 against his unit.

19-4 7. The association of a common-interest community created

19-5 before January 1, 1992, is not required to make an assessment

19-6 against a vacant lot located within the community that is owned by

19-7 the declarant.

19-8 8. If liabilities for common expenses are reallocated,

19-9 assessments for common expenses and any installment thereof not

19-10 yet due must be recalculated in accordance with the reallocated

19-11 liabilities.

19-12 9. The association shall provide written notice to the owner of

19-13 each unit of a meeting at which an assessment for a capital

19-14 improvement or the commencement of a civil action is to be

19-15 considered or action is to be taken on such an assessment at least 21

19-16 calendar days before the meeting. Except as otherwise provided in

19-17 this subsection, the association may commence a civil action only

19-18 upon a vote or written agreement of the owners of units to which at

19-19 least a majority of the votes of the members of the association are

19-20 allocated. The provisions of this subsection do not apply to a civil

19-21 action that is commenced:

19-22 (a) To enforce the payment of an assessment;

19-23 (b) To enforce the declaration, bylaws or rules of the

19-24 association;

19-25 (c) To proceed with a counterclaim; or

19-26 (d) To protect the health, safety and welfare of the members of

19-27 the association. If a civil action is commenced pursuant to this

19-28 paragraph without the required vote or agreement, the action must

19-29 be ratified within 90 days after the commencement of the action by

19-30 a vote or written agreement of the owners of the units to which at

19-31 least a majority of votes of the members of the association are

19-32 allocated. If the association, after making a good faith effort, cannot

19-33 obtain the required vote or agreement to commence or ratify such a

19-34 civil action, the association may thereafter seek to dismiss the action

19-35 without prejudice for that reason only if a vote or written agreement

19-36 of the owners of the units to which at least a majority of votes of the

19-37 members of the association are allocated was obtained at the time

19-38 the approval to commence or ratify the action was sought.

19-39 10. At least 10 days before an association commences or seeks

19-40 to ratify the commencement of a civil action, the association shall

19-41 provide a written statement to all units’ owners that includes:

19-42 (a) A reasonable estimate of the costs of the civil action,

19-43 including reasonable attorney’s fees;

19-44 (b) An explanation of the potential benefits of the civil action

19-45 and the potential adverse consequences if the association does not

20-1 commence the action or if the outcome of the action is not favorable

20-2 to the association; and

20-3 (c) All disclosures that are required to be made upon the sale of

20-4 the property.

20-5 11. At any meeting at which the filing of a claim for a

20-6 constructional defect is considered, the executive board shall not

20-7 exclude a public officer from attending the meeting if the public

20-8 officer is invited to attend the meeting by a unit’s owner who is

20-9 authorized to attend the meeting. The authority of the public

20-10 officer to attend a meeting pursuant to this subsection is

20-11 coextensive with the authority of the unit’s owner to attend the

20-12 meeting pursuant to NRS 116.31085. As used in this subsection:

20-13 (a) “Constructional defect” has the meaning ascribed to it in

20-14 section 5 of this act.

20-15 (b) “Public officer” means:

20-16 (1) The Ombudsman for Owners in Common-Interest

20-17 Communities; and

20-18 (2) Any other person who is an elected or appointed public

20-19 officer.

20-20 12. No person other than a unit’s owner may request the

20-21 dismissal of a civil action commenced by the association on the

20-22 ground that the association failed to comply with any provision of

20-23 this section.

20-24 Sec. 41. NRS 278.577 is hereby amended to read as follows:

20-25 278.577 1. Except as otherwise provided in subsection 2, in a

20-26 county whose population is 100,000 or more, or in any city located

20-27 within such a county, if the city or county provides for the

20-28 inspection of structures and the enforcement of building codes

20-29 pursuant to NRS 278.570, 278.573 and 278.575, the city or county

20-30 shall:

20-31 (a) Prepare a list of national and international organizations

20-32 which certify persons who inspect a structure or a portion of a

20-33 structure and which are approved by the city or county, as

20-34 appropriate, for certifying persons pursuant to this subsection;

20-35 (b) Require a person who fills the position of building official,

20-36 reviews plans or inspects a structure or building or a portion of a

20-37 structure or building pursuant to NRS 278.570 or 278.575 to be

20-38 certified by an organization included on the list prepared pursuant to

20-39 paragraph (a);

20-40 (c) Establish requirements for continuing education for a person

20-41 who is required to be certified pursuant to this subsection; and

20-42 (d) Prohibit a person who is not certified or does not fulfill the

20-43 requirements for continuing education pursuant to this subsection

20-44 from filling the position of building official, reviewing plans or

21-1 inspecting a structure or building or a portion of a structure or

21-2 building pursuant to NRS 278.570 or 278.575.

21-3 2. A city or county specified in subsection 1 may authorize an

21-4 employee of the city or county to perform duties for which

21-5 certification is required pursuant to that subsection if those duties

21-6 are performed under the supervision of a person who is certified by

21-7 an organization that is included on the list prepared by the city or

21-8 county pursuant to paragraph (a) of that subsection. The city or

21-9 county may authorize an employee to perform duties pursuant to

21-10 this subsection for not more than 1 year.

21-11 3. The requirements for continuing education established

21-12 pursuant to paragraph (c) of subsection 1 must:

21-13 (a) Include the completion of at least 45 hours of continuing

21-14 education every 3 years; and

21-15 (b) Specify the manner in which a person may complete those

21-16 hours.

21-17 4. In a county whose population is less than 100,000, or in any

21-18 city located within such a county, if the city or county provides for

21-19 the inspection of structures and the enforcement of building codes

21-20 pursuant to NRS 278.570, 278.573 and 278.575, the city or county

21-21 shall, by resolution, establish the requirements for certifying and for

21-22 continuing education for a person who, on a full-time basis, fills the

21-23 position of building official, reviews plans or inspects a structure or

21-24 building or a portion of a structure or building pursuant to NRS

21-25 278.570 or 278.575.

21-26 5. In addition to the requirements for continuing education

21-27 established pursuant to this section, each city or county that

21-28 provides for the inspection of structures and the enforcement of

21-29 building codes pursuant to NRS 278.570, 278.573 and 278.575

21-30 shall, by resolution, require each person who:

21-31 (a) Fills the position of building official, reviews plans or

21-32 inspects a structure or building or a portion of a structure or

21-33 building pursuant to NRS 278.570 or 278.575; and

21-34 (b) Is required to attend a course of continuing education

21-35 pursuant to this section,

21-36 to complete a course of instruction in constructional defects

21-37 approved by the State Contractors’ Board. The resolution must

21-38 require the person to complete the course annually and must

21-39 include the requirements for submission of proof of attendance at

21-40 the course. As used in this subsection, “constructional defect” has

21-41 the meaning ascribed to it in section 5 of this act.

21-42 Sec. 42. NRS 40.600, 40.605, 40.610, 40.613, 40.615, 40.620,

21-43 40.625, 40.630, 40.635, 40.640, 40.645, 40.650, 40.655, 40.660,

21-44 40.665, 40.667, 40.668, 40.670, 40.672, 40.675, 40.680, 40.682,

22-1 40.687, 40.688, 40.6881, 40.6882, 40.6883, 40.6884, 40.6885,

22-2 40.689, 40.690, 40.692 and 40.695 are hereby repealed.

22-3 Sec. 43. 1. Each person who, before October 1, 2003,

22-4 submitted a claim to recover damages resulting from a

22-5 constructional defect pursuant to NRS 40.600 to 40.695, inclusive,

22-6 but who has not filed a civil action concerning the claim, may, if the

22-7 claim has not been withdrawn, settled or otherwise resolved in

22-8 accordance with those sections before October 1, 2003, submit the

22-9 claim to the Constructional Defect Commission for disposition in

22-10 accordance with the provisions of sections 2 to 20, inclusive, of this

22-11 act. The claim must be submitted within 1 year after October 1,

22-12 2003.

22-13 2. The clerk of each court in this state in which a civil action

22-14 for damages resulting from a constructional defect has been filed

22-15 before October 1, 2003, and for which a trial has not been

22-16 commenced in that court before October 1, 2003, shall, as soon as

22-17 practicable after October 1, 2003, transmit the file for the civil

22-18 action to the Constructional Defect Commission for disposition in

22-19 accordance with the provisions of sections 2 to 20, inclusive, of this

22-20 act.

22-21 3. Notwithstanding the provisions of section 42 of this act, if:

22-22 (a) A civil action for damages resulting from a constructional

22-23 defect has been filed before October 1, 2003; and

22-24 (b) A trial for the civil action has been commenced before

22-25 October 1, 2003,

22-26 the civil action must be adjudicated in accordance with the

22-27 provisions of NRS 40.600 to 40.695, inclusive, as if those

22-28 provisions had not been repealed.

22-29 LEADLINES OF REPEALED SECTIONS

22-30 40.600 Definitions.

22-31 40.605 “Appurtenance” defined.

22-32 40.610 “Claimant” defined.

22-33 40.613 “Complex matter” defined.

22-34 40.615 “Constructional defect” defined.

22-35 40.620 “Contractor” defined.

22-36 40.625 “Homeowner’s warranty” defined.

22-37 40.630 “Residence” defined.

22-38 40.635 Applicability; effect on other defenses.

22-39 40.640 Liability of contractor.

23-1 40.645 Written notice to contractor required before

23-2 claimant commences certain actions; contents of notice;

23-3 inspection by contractor; pursuit of claim under warranty;

23-4 written response by contractor required; mutual duty to

23-5 disclose documentary evidence.

23-6 40.650 Effect of rejecting reasonable offer of settlement or

23-7 denying opportunity to repair defect; effect of payment under

23-8 warranty; effect of contractor failing to take certain actions;

23-9 effect of bad faith denial of coverage under warranty.

23-10 40.655 Limitation on recovery.

23-11 40.660 Nonacceptance of offer of settlement deemed

23-12 rejection.

23-13 40.665 Settlement by repurchase; certain offers of

23-14 settlement deemed reasonable.

23-15 40.667 Effect of written waiver or settlement agreement

23-16 when contractor fails to correct or repair defect properly;

23-17 conditions to bringing action; effect of failure to prevail in

23-18 action.

23-19 40.668 Action against subdivider or master developer for

23-20 defect in appurtenance in planned unit development:

23-21 Conditions and limitations; tolling of statutes of limitation or

23-22 repose; applicability.

23-23 40.670 Defect which creates imminent threat to health or

23-24 safety: Duty of contractor to cure; effect of failure to cure;

23-25 exceptions.

23-26 40.672 Defect in new residence: Duty of contractor to

23-27 repair; time limits; extensions; disciplinary action for failure to

23-28 comply.

23-29 40.675 Inspection of repairs.

23-30 40.680 Mediation of certain claims required before action

23-31 commenced; procedure; appointment of special master; effect

23-32 of failure to mediate in good faith.

23-33 40.682 Complex matters: Written notice by claimant;

23-34 procedural requirements; additional parties and third-party

23-35 complaints; mediation; appointment of special master;

23-36 limitation on certain pretrial procedures; pursuit of claim

23-37 under warranty; written response by contractor.

23-38 40.687 Disclosure of information concerning warranties

23-39 after action is commenced; disclosure of information

23-40 concerning insurance agreements; compelled production of

23-41 information.

23-42 40.688 Disclosure of defects by claimant to prospective

23-43 purchaser of residence required; timing and contents of

23-44 disclosure; duty of attorney to inform claimant of disclosure

23-45 requirement.

23-46 40.6881 Definitions.

24-1 40.6882 “Complainant” defined.

24-2 40.6883 “Design professional” defined.

24-3 40.6884 Attorney required to consult expert; required

24-4 affidavit of attorney; required report of expert.

24-5 40.6885 Effect of compliance with or failure to comply with

24-6 NRS 40.6884.

24-7 40.689 Preference given to action; action may be assigned

24-8 to senior judge; assessment of additional expenses.

24-9 40.690 Limitation on bringing claim against governmental

24-10 entity during period for resolution; effect of settlement;

24-11 contractor or claimant may require party to appear and

24-12 participate.

24-13 40.692 Procedural requirements waived for certain defects

24-14 included in amended complaint; joinder or intervention of

24-15 party after action is commenced.

24-16 40.695 Tolling of statutes of limitation or repose;

24-17 applicability.

24-18 H