Assembly Bill No. 449–Committee on Judiciary

 

March 21, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises various provisions governing contractors and claims and transactions relating to real property. (BDR 10‑870)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to real property; requiring disclosures of certain information by the seller of a previously unsold residence; tolling the statutes of limitation and repose for certain actions relating to real property; increasing the amount of damages that a claimant may recover for a constructional defect; requiring an applicant for a contractor’s license to pass a practical examination administered by the State Contractors’ Board; requiring the Board to adopt regulations setting forth the requirements for continuing education for licensees; providing that certain claims or actions relating to constructional defects do not preclude the Board from taking disciplinary action against a licensee; 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 113 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  At the time the initial purchaser signs a contract for the

1-4  purchase and sale of a previously unsold residence, the seller shall

1-5  disclose to the purchaser in writing:

1-6  (a) The terms of any settlement, order or judgment relating to

1-7  a claim or action for a constructional defect pursuant to NRS

2-1  40.600 to 40.695, inclusive, or concerning a sale of real property

2-2  pursuant to this chapter which has been asserted against a person

2-3  who participated in any manner in the development, construction

2-4  or sale of the residence;

2-5  (b) A description of any complaint filed with the State

2-6  Contractors’ Board relating to a constructional defect pursuant to

2-7  NRS 40.600 to 40.695, inclusive, or concerning a sale of real

2-8  property pursuant to this chapter which has been asserted against

2-9  a person who participated in any manner in the development,

2-10  construction or sale of the residence and the disposition of the

2-11  complaint;

2-12      (c) A summary of any policy of insurance carried by the seller

2-13  that provides coverage for the repair of a constructional defect in

2-14  the residence;

2-15      (d) To the extent that the information is not otherwise provided

2-16  to a purchaser pursuant to NRS 624.600, the name, license

2-17  number, business address and telephone number of each person

2-18  who participated in any manner in the development, construction

2-19  or sale of the residence; and

2-20      (e) A statement describing any deviation from any applicable

2-21  building code in effect at the time of the development or

2-22  construction of the residence. As used in this paragraph, “building

2-23  code” means an ordinance, plan, regulation or ruling adopted by a

2-24  governmental body to regulate and specify the soundness of

2-25  construction of a structure.

2-26      2.  A seller who fails substantially to comply with the

2-27  requirements of subsection 1 is liable for a civil penalty of $1,000

2-28  which is payable to the State Contractors’ Board for deposit in the

2-29  account established pursuant to NRS 624.470.

2-30      3.  The civil penalty provided for in this section is in addition

2-31  to any other remedy or penalty provided by law.

2-32      4.  As used in this section, “constructional defect” has the

2-33  meaning ascribed to it in NRS 40.615.

2-34      Sec. 2.  Chapter 11 of NRS is hereby amended by adding

2-35  thereto a new section to read as follows:

2-36      1.  The statutes of limitation or repose set forth in this chapter

2-37  which are applicable to an action specified in NRS 11.203, 11.204

2-38  or 11.205 are tolled during any period after the substantial

2-39  completion of an improvement to real property in which the

2-40  person who performed or furnished the design, planning,

2-41  supervision or observation of the construction, or the construction

2-42  of an improvement, including, without limitation, a residence or

2-43  an improvement within a common-interest community:

2-44      (a) Owned or otherwise controlled the improvement or the

2-45  common-interest community;

3-1  (b) Performed or furnished repairs to the improvement; or

3-2  (c) Agreed to perform or furnish repairs to the improvement,

3-3  regardless of whether the person:

3-4       (1) Actually performed or furnished the repairs; or

3-5       (2) Owned or otherwise controlled the improvement or the

3-6  common-interest community at the time he agreed to perform or

3-7  furnish the repairs.

3-8  2.  The provisions of this section do not apply to a cause of

3-9  action against an owner or occupier of real property who did not

3-10  perform or furnish the design, planning, supervision or

3-11  observation of the construction, or the construction of an

3-12  improvement to real property.

3-13      3.  As used in this section:

3-14      (a) “Common-interest community” means any real property

3-15  that is subject to the provisions of chapter 116 or 117 of NRS.

3-16      (b) “Residence” means any real property that is subject to the

3-17  provisions of NRS 40.600 to 40.695, inclusive.

3-18      Sec. 3.  NRS 11.202 is hereby amended to read as follows:

3-19      11.202  1.  An action may be commenced against the owner,

3-20  occupier or any person performing or furnishing the design,

3-21  planning, supervision or observation of the construction[,] of, or

3-22  performing or furnishing the construction of , an improvement to

3-23  real property at any time after the substantial completion of [such

3-24  an] the improvement, for the recovery of damages for:

3-25      (a) Any deficiency in the design, planning, supervision or

3-26  observation of the construction of, or in the construction of [such

3-27  an] , the improvement which is the result of his willful misconduct

3-28  or which he fraudulently concealed;

3-29      (b) Injury to real or personal property caused by [any such] the

3-30  deficiency; or

3-31      (c) Injury to or the wrongful death of a person caused by [any

3-32  such] the deficiency.

3-33      2.  The provisions of this section do not apply in an action

3-34  brought against:

3-35      (a) The owner or keeper of any hotel, inn, motel, motor court,

3-36  boardinghouse or lodginghouse in this state on account of his

3-37  liability as an innkeeper.

3-38      (b) Any person on account of a defect in a product.

3-39      Sec. 4.  NRS 11.203 is hereby amended to read as follows:

3-40      11.203  1.  Except as otherwise provided in this section and

3-41  NRS [11.202 and] 11.206, and section 2 of this act, no action may

3-42  be commenced against the owner, occupier or any person

3-43  performing or furnishing the design, planning, supervision or

3-44  observation of the construction[,] of, or performing or furnishing

3-45  the construction of , an improvement to real property more than 10

4-1  years after the substantial completion of [such an] the improvement,

4-2  for the recovery of damages for:

4-3  (a) Any deficiency in the design, planning, supervision or

4-4  observation of the construction of, or in the construction of [such

4-5  an] , the improvement which is known or through the use of

4-6  reasonable diligence should have been known to him;

4-7  (b) Injury to real or personal property caused by [any such] the

4-8  deficiency; or

4-9  (c) Injury to or the wrongful death of a person caused by [any

4-10  such] the deficiency.

4-11      2.  [Notwithstanding the provisions of NRS 11.190 and

4-12  subsection 1 of this section, if] If an injury occurs in the 10th year

4-13  after the substantial completion of [such an] the improvement, an

4-14  action for damages for injury to property or person, damages for

4-15  wrongful death resulting from [such] the injury or damages for

4-16  breach of contract may be commenced within 2 years after the date

4-17  of [such] the injury, irrespective of the date of death, but in no event

4-18  may an action be commenced more than 12 years after the

4-19  substantial completion of the improvement.

4-20      3.  If the provisions of this section apply to an action:

4-21      (a) The action is subject only to the period of repose set forth

4-22  in this section; and

4-23      (b) No other period of limitation or repose set forth in this

4-24  chapter applies to the action.

4-25      4.  The provisions of this section do not apply to [a] :

4-26      (a) An action that is based upon any deficiency specified in

4-27  subsection 1 if the provisions of NRS 11.202 otherwise apply to the

4-28  deficiency; or

4-29      (b) A claim for indemnity or contribution.

4-30      Sec. 5.  NRS 11.204 is hereby amended to read as follows:

4-31      11.204  1.  Except as otherwise provided in this section and

4-32  NRS [11.202, 11.203 and] 11.206, and section 2 of this act, no

4-33  action may be commenced against the owner, occupier or any

4-34  person performing or furnishing the design, planning, supervision or

4-35  observation of the construction[,] of, or performing or furnishing

4-36  the construction[,] of , an improvement to real property more than 8

4-37  years after the substantial completion of [such an] the improvement,

4-38  for the recovery of damages for:

4-39      (a) Any latent deficiency in the design, planning, supervision or

4-40  observation of the construction of, or in the construction of [such

4-41  an] , the improvement;

4-42      (b) Injury to real or personal property caused by [any such] the

4-43  latent deficiency; or

4-44      (c) Injury to or the wrongful death of a person caused by [any

4-45  such] the latent deficiency.

5-1  2.  [Notwithstanding the provisions of NRS 11.190 and

5-2  subsection 1 of this section, if] If an injury occurs in the eighth year

5-3  after the substantial completion of [such an] the improvement, an

5-4  action for damages for injury to property or person, damages for

5-5  wrongful death resulting from [such] the injury or damages for

5-6  breach of contract may be commenced within 2 years after the date

5-7  of [such] the injury, irrespective of the date of death, but in no event

5-8  may an action be commenced more than 10 years after the

5-9  substantial completion of the improvement.

5-10      3.  If the provisions of this section apply to an action:

5-11      (a) The action is subject only to the period of repose set forth

5-12  in this section; and

5-13      (b) No other period of limitation or repose set forth in this

5-14  chapter applies to the action.

5-15      4.  The provisions of this section do not apply to [a] :

5-16      (a) An action that is based upon any latent deficiency specified

5-17  in subsection 1 if the provisions of NRS 11.202 or 11.203

5-18  otherwise apply to the latent deficiency; or

5-19      (b) A claim for indemnity or contribution.

5-20      [4.] 5. For the purposes of this section, “latent deficiency”

5-21  means a deficiency which is not apparent by reasonable inspection.

5-22      Sec. 6.  NRS 11.205 is hereby amended to read as follows:

5-23      11.205  1.  Except as otherwise provided in this section and

5-24  NRS [11.202, 11.203 and] 11.206, and section 2 of this act, no

5-25  action may be commenced against the owner, occupier or any

5-26  person performing or furnishing the design, planning, supervision or

5-27  observation of the construction[,] of, or performing or furnishing

5-28  the construction of , an improvement to real property more than 6

5-29  years after the substantial completion of [such an] the improvement,

5-30  for the recovery of damages for:

5-31      (a) Any patent deficiency in the design, planning, supervision or

5-32  observation of the construction of, or in the construction of [such

5-33  an] , the improvement;

5-34      (b) Injury to real or personal property caused by [any such] the

5-35  patent deficiency; or

5-36      (c) Injury to or the wrongful death of a person caused by [any

5-37  such] the patent deficiency.

5-38      2.  [Notwithstanding the provisions of NRS 11.190 and

5-39  subsection 1 of this section, if] If an injury occurs in the sixth year

5-40  after the substantial completion of [such an] the improvement, an

5-41  action for damages for injury to property or person, damages for

5-42  wrongful death resulting from [such] the injury or damages for

5-43  breach of contract may be commenced within 2 years after the date

5-44  of [such] the injury, irrespective of the date of death, but in no event

6-1  may an action be commenced more than 8 years after the substantial

6-2  completion of the improvement.

6-3  3.  If the provisions of this section apply to an action:

6-4  (a) The action is subject only to the period of repose set forth

6-5  in this section; and

6-6  (b) No other period of limitation or repose set forth in this

6-7  chapter applies to the action.

6-8  4.  The provisions of this section do not apply to [a] :

6-9  (a) An action that is based upon any patent deficiency

6-10  specified in subsection 1 if the provisions of NRS 11.202 or 11.203

6-11  otherwise apply to the patent deficiency; or

6-12      (b) A claim for indemnity or contribution.

6-13      [4.] 5. For the purposes of this section, “patent deficiency”

6-14  means a deficiency which is apparent by reasonable inspection.

6-15      Sec. 7.  NRS 11.2055 is hereby amended to read as follows:

6-16      11.2055  1.  Except as otherwise provided in subsection 2, for

6-17  the purposes of NRS 11.202 to 11.206, inclusive, and section 2 of

6-18  this act, the date of substantial completion of an improvement to

6-19  real property shall be deemed to be the date on which:

6-20      (a) The final building inspection of the improvement is

6-21  conducted;

6-22      (b) A notice of completion is issued for the improvement; or

6-23      (c) A certificate of occupancy is issued for the

6-24  improvement,

6-25  whichever occurs later.

6-26      2.  If none of the events described in subsection 1 occurs, the

6-27  date of substantial completion of an improvement to real property

6-28  must be determined by the rules of the common law.

6-29      Sec. 8.  NRS 11.206 is hereby amended to read as follows:

6-30      11.206  The [limitations respectively prescribed by] periods of

6-31  repose set forth in NRS 11.203, 11.204 and 11.205 are not a

6-32  defense in an action brought against:

6-33      1.  The owner or keeper of any hotel, inn, motel, motor court,

6-34  boardinghouse or lodginghouse in this state on account of his

6-35  liability as an innkeeper.

6-36      2.  Any person on account of a defect in a product.

6-37      Sec. 9.  NRS 40.635 is hereby amended to read as follows:

6-38      40.635  NRS 40.600 to 40.695, inclusive:

6-39      1.  Apply to any claim that arises before, on or after July 1,

6-40  1995, as the result of a constructional defect, except a claim for

6-41  personal injury or wrongful death, if the claim is the subject of an

6-42  action commenced on or after July 1, 1995.

6-43      2.  Prevail over any conflicting law otherwise applicable to the

6-44  claim or cause of action.

7-1  3.  Do not bar or limit any defense otherwise available except as

7-2  otherwise provided in those sections.

7-3  4.  Do not create a new theory upon which liability may be

7-4  based.

7-5  5.  Do not limit, preclude or abate a disciplinary proceeding

7-6  against a contractor pursuant to chapter 624 of NRS.

7-7  Sec. 10.  NRS 40.655 is hereby amended to read as follows:

7-8  40.655  1.  Except as otherwise provided in NRS 40.650[,]

7-9  and 40.670, in a claim governed by NRS 40.600 to 40.695,

7-10  inclusive, the claimant may recover only the following damages to

7-11  the extent proximately caused by a constructional defect:

7-12      (a) Any reasonable attorney’s fees;

7-13      (b) The reasonable cost of any repairs already made that were

7-14  necessary and of any repairs yet to be made that are necessary to

7-15  cure any constructional defect that the contractor failed to cure and

7-16  the reasonable expenses of temporary housing reasonably necessary

7-17  during the repair;

7-18      (c) The reduction in market value of the residence or accessory

7-19  structure, if any, to the extent the reduction is because of structural

7-20  failure;

7-21      (d) The reduction in market value of the residence or accessory

7-22  structure, if any, to the extent the reduction is the result of a

7-23  disclosure required pursuant to NRS 40.688;

7-24      (e) The loss of the use of all or any part of the residence;

7-25      [(e)] (f) The reasonable value of any other property damaged by

7-26  the constructional defect;

7-27      [(f)] (g) Any additional costs reasonably incurred by the

7-28  claimant, including, but not limited to, any costs and fees incurred

7-29  for the retention of experts to:

7-30          (1) Ascertain the nature and extent of the constructional

7-31  defects;

7-32          (2) Evaluate appropriate corrective measures to estimate the

7-33  value of loss of use; and

7-34          (3) Estimate the value of loss of use, the cost of temporary

7-35  housing and the reduction of market value of the residence; and

7-36      [(g)] (h) Any interest provided by statute.

7-37      2.  The amount of any attorney’s fees awarded pursuant to this

7-38  section must be approved by the court.

7-39      3.  [If] Except as otherwise provided in NRS 11.202 and

7-40  chapter 116 of NRS, if a contractor complies with the provisions of

7-41  NRS 40.600 to 40.695, inclusive, the claimant may not recover from

7-42  the contractor, as a result of the constructional defect, anything other

7-43  than that which is provided pursuant to NRS 40.600 to 40.695,

7-44  inclusive.

8-1  4.  As used in this section, “structural failure” means physical

8-2  damage to the load-bearing portion of a residence or appurtenance

8-3  caused by a failure of the load-bearing portion of the residence or

8-4  appurtenance.

8-5  Sec. 11.  NRS 40.670 is hereby amended to read as follows:

8-6  40.670  1.  A contractor who receives written notice of a

8-7  constructional defect resulting from work performed by the

8-8  contractor or his agent, employee or subcontractor which creates an

8-9  imminent threat to the health or safety of the inhabitants of the

8-10  residence shall take reasonable steps to cure the defect as soon as

8-11  practicable. The contractor shall not cure the defect by making any

8-12  repairs for which he is not licensed or by causing any repairs to be

8-13  made by a person who is not licensed to make those repairs. [If]

8-14      2.  Except as otherwise provided in subsection 3, if the

8-15  contractor fails to cure the defect in a reasonable time, the owner of

8-16  the residence may have the defect cured and may recover from the

8-17  contractor the reasonable cost of the repairs plus reasonable

8-18  attorney’s fees and costs in addition to any other damages

8-19  recoverable under any other law.

8-20      [2.] 3.  A contractor who does not cure a defect pursuant to this

8-21  section because he has determined, in good faith and after a

8-22  reasonable inspection, that there is not an imminent threat to the

8-23  health or safety of the inhabitants is not liable for the cost of

8-24  repairs, attorney’s fees and costs , or other damages relating to the

8-25  defect pursuant to [this section, except that if a building inspector,

8-26  building official or other similar authority employed by a

8-27  governmental body with jurisdiction certifies that there is an

8-28  imminent threat to the health and safety of the inhabitants of the

8-29  residence, the contractor is subject to the provisions of subsection

8-30  1.] subsection 2.

8-31      4.  If an architect or residential designer registered pursuant

8-32  to chapter 623 of NRS, or a professional engineer licensed

8-33  pursuant to chapter 625 of NRS, certifies that the defect creates an

8-34  imminent threat to the health or safety of the inhabitants of the

8-35  residence, and if the trier of fact determines that the contractor

8-36  refused to correct the defect in a timely manner and was not acting

8-37  in good faith:

8-38      (a) The limitation on damages provided in NRS 40.655 does

8-39  not apply and the owner of the residence may recover the damages

8-40  specified in NRS 40.655 in addition to any other damages to which

8-41  he may be entitled;

8-42      (b) The trier of fact shall revoke the license of the contractor

8-43  and notify the State Contractors’ Board of the revocation; and

8-44      (c) The contractor is liable to the owner of the residence for

8-45  damages in an amount equal to three times the reasonable cost of

9-1  repairs necessary to cure the constructional defect that the

9-2  contractor failed to correct or repair properly.

9-3  Sec. 12.  Chapter 278 of NRS is hereby amended by adding

9-4  thereto the provisions set forth as sections 13, 14 and 15 of this act.

9-5  Sec. 13.  1.  No certificate of occupancy for a residential

9-6  dwelling within a subdivision may be issued by a city or county

9-7  building department unless there has been filed with the building

9-8  department a certification that the finish grading of the lot on

9-9  which the dwelling is situated, including, without limitation, the

9-10  drainage swales and drainage inlets for the lot, is consistent with

9-11  the approved plans for the construction of the dwelling.

9-12      2.  The certification required pursuant to subsection 1 must be

9-13  issued by a professional engineer who:

9-14      (a) Is licensed pursuant to chapter 625 of NRS;

9-15      (b) Is qualified to practice as a civil engineer; and

9-16      (c) Carries professional liability insurance of not less than

9-17  $1,000,000.

9-18      Sec. 14.  1.  No building permit for the construction of a

9-19  residential dwelling within a subdivision may be issued by a city or

9-20  county building department unless a professional engineer who is

9-21  licensed pursuant to chapter 625 of NRS and is qualified to

9-22  practice as a geotechnical engineer has approved the

9-23  recommendations for soil preparation and foundation design set

9-24  forth in the soil report prepared for the subdivision in which the

9-25  real property on which the residential dwelling will be constructed

9-26  is located.

9-27      2.  The professional engineer must be selected by the city or

9-28  county building department and his fee must be paid by the

9-29  developer of the subdivision as part of the application for a

9-30  grading permit.

9-31      3.  The professional engineer may require additional analyses

9-32  of soil samples and more stringent standards for foundation

9-33  design than those specified by the engineer of the developer.

9-34      Sec. 15.  1.  No building permit for the construction of a

9-35  residential dwelling within a subdivision may be issued by a city or

9-36  county building department unless a professional engineer who is

9-37  licensed pursuant to chapter 625 of NRS and is qualified to

9-38  practice as a structural engineer certifies the structural design of

9-39  the residential dwelling.

9-40      2.  No certificate of occupancy for a residential dwelling

9-41  within a subdivision may be issued by a city or county building

9-42  department unless all the major structural components of the

9-43  residential dwelling have been reviewed and approved by a

9-44  professional engineer who is licensed pursuant to chapter 625 of

9-45  NRS and is qualified to practice as a structural engineer.

10-1      3.  The professional engineer must be selected by the city or

10-2  county building department, and his fee must be paid by the

10-3  developer of the subdivision as part of the application for the

10-4  building permit.

10-5      4.  As used in this section, “major structural components”

10-6  includes, without limitation:

10-7      (a) The foundation, including the placement of reinforcing

10-8  steel and posttension reinforcing rods, the dimensions of footings

10-9  and other components of the foundation, and the compressive

10-10  strength of the concrete used to pour the foundation;

10-11     (b) The insulation of shear walls, including the use of anchor

10-12  bolts and hold-downs, and the nailing of panels; and

10-13     (c) The installation of roof trusses, including the attachment of

10-14  the trusses to other parts of the frame of the building.

10-15     Sec. 16.  NRS 278.010 is hereby amended to read as follows:

10-16     278.010  As used in NRS 278.010 to 278.630, inclusive, and

10-17  sections 13, 14 and 15 of this act, unless the context otherwise

10-18  requires, the words and terms defined in NRS 278.0105 to

10-19  278.0195, inclusive, have the meanings ascribed to them in those

10-20  sections.

10-21     Sec. 17.  Chapter 624 of NRS is hereby amended by adding

10-22  thereto the provisions set forth as sections 18 and 19 of this act.

10-23     Sec. 18.  In addition to any other requirement for the

10-24  issuance of a license pursuant to this chapter, the Board shall

10-25  require each applicant for a license to pass a practical

10-26  examination administered by the Board upon such subjects as the

10-27  Board determines necessary to ensure the competency of the

10-28  applicant for each classification for which the applicant wishes to

10-29  be licensed. If the applicant is a natural person qualifying by the

10-30  appearance of a responsible managing employee pursuant to

10-31  paragraph (a) of subsection 2 of NRS 624.260, or is a

10-32  copartnership, corporation or other combination or organization

10-33  qualifying by the appearance of a responsible managing officer or

10-34  member of the personnel of the applicant firm pursuant to

10-35  paragraph (b) of subsection 2 of NRS 624.260, the responsible

10-36  managing employee, officer or member must pass the practical

10-37  examination required by this section.

10-38     Sec. 19.  The Board shall, by regulation, require each

10-39  licensee to complete a course of continuing education as a

10-40  condition for the renewal of his license. The regulations must

10-41  include:

10-42     1.  The number of hours of credit required for the renewal;

10-43  and

10-44     2.  The requirements for submission of proof of attendance at

10-45  the course.

11-1      Sec. 20.  NRS 624.283 is hereby amended to read as follows:

11-2      624.283  1.  Each license issued under the provisions of this

11-3  chapter expires 1 year after the date on which it is issued, except

11-4  that the Board may by regulation prescribe shorter or longer periods

11-5  and prorated fees to establish a system of staggered renewals. Any

11-6  license which is not renewed on or before the date for renewal is

11-7  automatically suspended.

11-8      2.  A license may be renewed by submitting to the Board:

11-9      (a) An application for renewal;

11-10     (b) The statement required pursuant to NRS 624.268 if the

11-11  holder of the license is a natural person;

11-12     (c) Proof of compliance with the requirements for continuing

11-13  education established by the Board for the renewal of the license;

11-14     (d) The fee for renewal fixed by the Board; and

11-15     [(d)] (e) Any assessment required pursuant to NRS 624.470 if

11-16  the holder of the license is a residential contractor as defined in

11-17  NRS 624.450.

11-18     3.  The Board may require a licensee to demonstrate his

11-19  financial responsibility at any time through the submission of:

11-20     (a) A financial statement that is prepared by an independent

11-21  certified public accountant; and

11-22     (b) If the licensee performs residential construction, such

11-23  additional documentation as the Board deems appropriate.

11-24     4.  If a license is automatically suspended pursuant to

11-25  subsection 1, the licensee may have his license reinstated upon filing

11-26  an application for renewal within 6 months after the date of

11-27  suspension and paying, in addition to the fee for renewal, a fee for

11-28  reinstatement fixed by the Board, if he is otherwise in good standing

11-29  and there are no complaints pending against him. If he is otherwise

11-30  not in good standing or there is a complaint pending, the Board shall

11-31  require him to provide a current financial statement prepared by an

11-32  independent certified public accountant or establish other conditions

11-33  for reinstatement. If the licensee is a natural person, his application

11-34  for renewal must be accompanied by the statement required

11-35  pursuant to NRS 624.268. A license which is not reinstated within 6

11-36  months after it is automatically suspended may be cancelled by the

11-37  Board, and a new license may be issued only upon application for an

11-38  original contractor’s license.

11-39     5.  Any application for the renewal of a license filed pursuant

11-40  to subsection 4 must include proof of compliance with the

11-41  requirements for continuing education established by the Board

11-42  for the renewal of a license.

11-43     Sec. 21.  NRS 624.283 is hereby amended to read as follows:

11-44     624.283  1.  Each license issued under the provisions of this

11-45  chapter expires 1 year after the date on which it is issued, except

12-1  that the Board may by regulation prescribe shorter or longer periods

12-2  and prorated fees to establish a system of staggered renewals. Any

12-3  license which is not renewed on or before the date for renewal is

12-4  automatically suspended.

12-5      2.  A license may be renewed by submitting to the Board:

12-6      (a) An application for renewal;

12-7      (b) Proof of compliance with the requirements for continuing

12-8  education established by the Board for the renewal of a license;

12-9      (c) The fee for renewal fixed by the Board; and

12-10     [(c)] (d) Any assessment required pursuant to NRS 624.470 if

12-11  the holder of the license is a residential contractor as defined in

12-12  NRS 624.450.

12-13     3.  The Board may require a licensee to demonstrate his

12-14  financial responsibility at any time through the submission of:

12-15     (a) A financial statement that is prepared by an independent

12-16  certified public accountant; and

12-17     (b) If the licensee performs residential construction, such

12-18  additional documentation as the Board deems appropriate.

12-19     4.  If a license is automatically suspended pursuant to

12-20  subsection 1, the licensee may have his license reinstated upon filing

12-21  an application for renewal within 6 months after the date of

12-22  suspension and paying, in addition to the fee for renewal, a fee for

12-23  reinstatement fixed by the Board, if he is otherwise in good standing

12-24  and there are no complaints pending against him. If he is otherwise

12-25  not in good standing or there is a complaint pending, the Board shall

12-26  require him to provide a current financial statement prepared by an

12-27  independent certified public accountant or establish other conditions

12-28  for reinstatement. A license which is not reinstated within 6 months

12-29  after it is automatically suspended may be cancelled by the Board,

12-30  and a new license may be issued only upon application for an

12-31  original contractor’s license.

12-32     5.  Any application for the renewal of a license filed pursuant

12-33  to subsection 4 must include proof of compliance with the

12-34  requirements for continuing education established by the Board

12-35  for the renewal of a license.

12-36     Sec. 22.  NRS 624.300 is hereby amended to read as follows:

12-37     624.300  1.  Except as otherwise provided in subsection 3, the

12-38  Board may:

12-39     (a) Suspend or revoke licenses already issued;

12-40     (b) Refuse renewals of licenses;

12-41     (c) Impose limits on the field, scope and monetary limit of the

12-42  license;

12-43     (d) Impose an administrative fine of not more than $10,000;

13-1      (e) Order a licensee to repay to the account established pursuant

13-2  to NRS 624.470, any amount paid out of the account pursuant to

13-3  NRS 624.510 as a result of an act or omission of that licensee;

13-4      (f) Order the licensee to take action to correct a condition

13-5  resulting from an act which constitutes a cause for disciplinary

13-6  action, at the licensee’s cost, that may consist of requiring the

13-7  licensee to:

13-8          (1) Perform the corrective work himself;

13-9          (2) Hire and pay another licensee to perform the corrective

13-10  work; or

13-11         (3) Pay to the owner of the construction project a specified

13-12  sum to correct the condition; or

13-13     (g) Reprimand or take other less severe disciplinary action,

13-14  including, without limitation, increasing the amount of the surety

13-15  bond or cash deposit of the licensee,

13-16  if the licensee commits any act which constitutes a cause for

13-17  disciplinary action.

13-18     2.  If the Board suspends or revokes the license of a contractor

13-19  for failure to establish financial responsibility, the Board may, in

13-20  addition to any other conditions for reinstating or renewing the

13-21  license, require that each contract undertaken by the licensee for a

13-22  period to be designated by the Board, not to exceed 12 months, be

13-23  separately covered by a bond or bonds approved by the Board and

13-24  conditioned upon the performance of and the payment of labor and

13-25  materials required by the contract.

13-26     3.  If a licensee violates the provisions of NRS 624.3014 or

13-27  subsection 3 of NRS 624.3015, the Board may impose an

13-28  administrative fine of not more than $20,000.

13-29     4.  If a licensee commits a fraudulent act which is a cause for

13-30  disciplinary action under NRS 624.3016, the correction of any

13-31  condition resulting from the act does not preclude the Board from

13-32  taking disciplinary action.

13-33     5.  If the Board finds that a licensee has engaged in repeated

13-34  acts that would be cause for disciplinary action, the correction of

13-35  any resulting conditions does not preclude the Board from taking

13-36  disciplinary action pursuant to this section.

13-37     6.  The expiration of a license by operation of law or by order

13-38  or decision of the Board or a court, or the voluntary surrender of a

13-39  license by a licensee, does not deprive the Board of jurisdiction to

13-40  proceed with any investigation of, or action or disciplinary

13-41  proceeding against, the licensee or to render a decision suspending

13-42  or revoking the license.

13-43     7.  A claim or action pursuant to NRS 40.600 to 40.695,

13-44  inclusive, against a licensee does not:

14-1      (a) Preclude or limit the Board from taking disciplinary action

14-2  pursuant to this section; or

14-3      (b) Deprive the Board of jurisdiction to proceed with any

14-4  investigation of, or action or disciplinary proceeding against, the

14-5  licensee or to issue a decision suspending or revoking the license

14-6  of a licensee.

14-7      8.  A licensee whose license is revoked by an order issued

14-8  pursuant to NRS 40.670 may apply for a reinstatement of his

14-9  license if the order is reversed on appeal.

14-10     9.  If discipline is imposed pursuant to this section, including

14-11  any discipline imposed pursuant to a stipulated settlement, the costs

14-12  of the proceeding, including investigative costs and attorney’s fees,

14-13  may be recovered by the Board.

14-14     [8.] 10. All fines collected pursuant to this section must be

14-15  deposited with the State Treasurer for credit to the Construction

14-16  Education Account created pursuant to NRS 624.580.

14-17     Sec. 23.  NRS 624.3016 is hereby amended to read as follows:

14-18     624.3016  The following acts or omissions, among others,

14-19  constitute cause for disciplinary action [under] pursuant to

14-20  NRS 624.300:

14-21     1.  Any fraudulent or deceitful act committed in the capacity of

14-22  a contractor.

14-23     2.  A conviction of a violation of NRS 624.730 or a felony or a

14-24  crime involving moral turpitude.

14-25     3.  Knowingly making a false statement in or relating to the

14-26  recording of a notice of lien pursuant to the provisions of

14-27  NRS 108.226.

14-28     4.  Failure to give a notice required by NRS 108.245 or

14-29  108.246.

14-30     5.  Failure to comply with NRS 597.713, 597.716 or 597.719 or

14-31  any regulations of the Board governing contracts for the

14-32  construction of residential pools and spas.

14-33     6.  Failure to comply with NRS 624.600[.] or section 1 of this

14-34  act.

14-35     7.  Misrepresentation or the omission of a material fact, or the

14-36  commission of any other fraudulent or deceitful act, to obtain a

14-37  license.

14-38     8.  Failure to pay a civil penalty imposed pursuant to section 1

14-39  of this act or an assessment required pursuant to NRS 624.470.

14-40     Sec. 24.  NRS 624.470 is hereby amended to read as follows:

14-41     624.470  1.  Except as otherwise provided in subsection 3, in

14-42  addition to the annual fee for a license required pursuant to NRS

14-43  624.280, a residential contractor shall pay to the Board an annual

14-44  assessment in the following amount, if the monetary limit on his

14-45  license is:

15-1  Not more than $1,000,000............... $100

15-2  More than $1,000,000 but limited..... 250

15-3  Unlimited............................................. 500

 

15-4      2.  The Board shall administer and account separately for the

15-5  money received from the annual assessments collected pursuant to

15-6  subsection 1[.] and from any money collected from civil penalties

15-7  imposed pursuant to section 1 of this act. The Board may refer to

15-8  the money in the account as the “Recovery Fund.”

15-9      3.  The Board shall suspend the collection of assessments

15-10  pursuant to subsection 1 when the balance in the account from

15-11  assessments reaches 150 percent of the largest balance in the

15-12  account from assessments during the previous fiscal year.

15-13     4.  Except as otherwise provided in NRS 624.540, the money in

15-14  the account must be used to pay claims made by owners who are

15-15  damaged by the failure of a residential contractor to perform

15-16  qualified services adequately, as provided in NRS 624.400 to

15-17  624.560, inclusive.

15-18     Sec. 25.  1.  The State Contractors’ Board shall:

15-19     (a) Develop the practical examinations to be administered

15-20  pursuant to section 18 of this act by not later than December 31,

15-21  2003, and begin administering the examinations by not later than

15-22  March 1, 2004; and

15-23     (b) Adopt regulations pursuant to section 19 of this act by not

15-24  later than December 31, 2003.

15-25     2.  The license of a person who holds a valid license pursuant to

15-26  chapter 624 of NRS that was issued before March 1, 2004, remains

15-27  valid regardless of whether the person has successfully completed a

15-28  practical examination pursuant to section 18 of this act until the

15-29  person renews the license, at which time the person must

15-30  demonstrate that he has passed any examination required pursuant to

15-31  section 18 of this act as a condition to the renewal of his license.

15-32     3.  On and after March 1, 2004, the State Contractors’ Board

15-33  shall not renew the license of a person pursuant to chapter 624 of

15-34  NRS who has not successfully completed any examination required

15-35  pursuant to section 18 of this act.

15-36     Sec. 26.  1.  The amendatory provisions of section 1 of this

15-37  act do not apply to a contract or agreement for the purchase and sale

15-38  of a previously unsold residence entered into before October 1,

15-39  2003.

15-40     2.  The amendatory provisions of sections 2, 7, 9, 10 and 11 of

15-41  this act do not apply to a claim that is filed or an action that is

15-42  commenced before October 1, 2003.

15-43     3.  The amendatory provisions of sections 4, 5 and 6 of this act

15-44  do not apply to an action if any period of limitation set forth in

16-1  chapter 11 of NRS that was applicable to the action, other than a

16-2  period of repose set forth in NRS 11.203, 11.204 or 11.205, began

16-3  to run before October 1, 2003.

16-4      Sec. 27.  1.  This section, sections 1 to 16, inclusive, and 22 to

16-5  25, inclusive, of this act become effective on October 1, 2003.

16-6      2.  Sections 17, 18 and 19 of this act become effective on

16-7  October 1, 2003, for the purpose of adopting regulations and on

16-8  March 1, 2004, for all other purposes

16-9      3.  Section 20 of this act becomes effective on March 1, 2003,

16-10  and expires by limitation on the date of the repeal of the federal law

16-11  requiring each state to establish procedures for withholding,

16-12  suspending and restricting the professional, occupational and

16-13  recreational licenses for child support arrearages and for

16-14  noncompliance with certain processes relating to paternity or child

16-15  support proceedings.

16-16     4.  Section 21 of this act becomes effective on the date of the

16-17  repeal of the federal law requiring each state to establish procedures

16-18  for withholding, suspending and restricting the professional,

16-19  occupational and recreational licenses for child support arrearages

16-20  and for noncompliance with certain processes relating to paternity or

16-21  child support proceedings.

 

16-22  H