Existing law sets forth certain requirements pertaining to contracts used by a contractor and the owner of a single-family residence for work concerning a residential photovoltaic system used to produce electricity or work concerning a residential pool or spa. (NRS 624.875, 624.940) Section 1 of this bill imposes similar requirements pertaining to a contract used by a residential contractor and the owner of a completed single-family residence who occupies the single-family residence for any construction, remodeling, repair or improvement performed by a residential contractor to the single-family residence or any activity for the supervision of such work. Section 1 authorizes the State Contractors' Board to adopt regulations establishing mandatory elements to be included in such a contract. Section 1 also sets forth certain information that is required to be included in such a contract. With certain exceptions, such information includes, without limitation, the amount, not to exceed $1,000 or 10 percent of the aggregate contract price, whichever is less, of any initial down payment or deposit paid or promised to be paid to the residential contractor by the owner before the start of the work. Section 1 further requires a residential contractor to: (1) furnish to the owner with whom the residential contractor has contracted for work concerning a residential improvement a copy of all documents signed and a receipt for any money paid to the residential contractor; and (2) apply for and obtain all necessary permits. If a contract entered into between a residential contractor and the owner for work concerning a residential improvement does not include the information required by the provisions of section 1, other than the information concerning an initial down payment or deposit, and any applicable regulations adopted by the Board, section 1: (1) authorizes the owner to modify the contract to bring the contract into compliance with those provisions; and (2) provides that such a modification is enforceable against the residential contractor if the modification is reasonable. If the contract does not include the information required by the provisions of section 1 concerning an initial down payment or deposit, section 1 provides that the contract is voidable by the owner. Existing law sets forth certain acts and omissions that constitute cause for disciplinary action against a contractor by the Board, including, without limitation, failure to comply with requirements for contracts for work concerning residential pools and spas and for work concerning residential photovoltaic systems used to produce electricity. (NRS 624.3016) Section 2 of this bill makes a contractor's failure to comply with requirements for contracts for work concerning a residential improvement or regulations adopted by the Board governing such contracts cause for such disciplinary action. Section 3 of this bill makes a conforming change as a result of this additional cause for disciplinary action.

Statutes affected:
As Introduced: 624.3016, 624.750
Reprint 1: 624.3016, 624.750
Reprint 2: 624.3016, 624.750
As Enrolled: 624.3016, 624.750
BDR: 624.3016, 624.750