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SENATE FLOOR VERSION
April 10, 2023
ENGROSSED HOUSE
BILL NO. 1597 By: Martinez and Dollens of the
House
and
Newhouse of the Senate
An Act relating to contracts; amending 15 O.S. 2021,
Section 765.6, which relates to Notice of Opportunity
to Repair Act; subjecting requirements to certain
contractual agreements; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 15 O.S. 2021, Section 765.6, is
amended to read as follows:
Section 765.6 A. For the purposes of this section:
1. "Construction defect" means a deficiency in or a deficiency
arising out of the design, specifications, surveying, pl anning,
supervision or observation of construction or co nstruction of
residential improvements that results from any of the following:
a. defective material, products or components used in the
construction of residential improvements,
b. violation of the applicable codes in effect at the
time of construction of residential improvements,
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c. failure of the design of residential improvements to
meet the applicable professional standards of care at
the time of governmental approval of the design of
residential improvements, or
d. failure to construct residential imp rovements in
accordance with accepted trade standards for good and
workmanlike construction at the time of construction;
2. "Contractor" means a person or entity providing labor,
services or material s in the construction of a new residence or
alteration of, repair of, or addition to an existing residence; and
3. "Residence" means any structure designed and used only for
residential purposes, together with all attached and unattached
structures, constructed by the contractor, regardless of whether the
real property upon which the residence is located was purchased from
the contractor. Such term also includes a residence upon which
alterations or repairs were performed by the contractor at the
direction of the homeowner.
B. A contract for the construction of a new residence or for an
alteration of, repair of, or addition to an existing residence may
include provisions which:
1. Require a homeowner, prior to filing a lawsuit for
construction defects, t o present to the contractor a written notice
of construction defects; and
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2. Allow the contractor to inspect any construction defects and
present to the homeowner a written response which shall include the
contractor's offer to repair defects or compensat e homeowner for
such defects within thirty (30) days aft er receipt of the notice of
defects.
If Regardless of whether such provisions are included in a
contract, the homeowner shall not file a lawsuit against the
contractor until the conditions precedent as set forth in parag raphs
1 and 2 of this subsection have been fulfilled. In the event the
homeowner files a lawsuit against the contractor without fulfilling
the conditions precedent, the contractor shall be entitled to a stay
of proceedings until such c onditions have been fulfilled. If the
conditions precedent have been fulfilled, the homeowner may seek
remedies against the contractor as provided by law. The provisions
of this section shall not be subject to, and nothing herein is
intended to alter, co ntradict or otherwise diminish the application
of, the terms of a separate express contractual warranty agreed upon
by a contractor or homeowner. This section does not create a cause
of action or derivative liability or extend a limitations period.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE
April 10, 2023 - DO PASS