Req. No. 5257 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 1st Session of the 59th Legislature (2023) HOUSE BILL 1597 By: Martinez AS INTRODUCED 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, planning, supervision or observation of construction or construction of residential improvements that results f rom any of the following: a. defective material, products or components used in the construction of residential improvements, b. violation of the applicable c odes in effect at the time of construction of residential improvements, Req. No. 5257 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 c. failure of the design o f residential improvements to meet the applicable professional standards of care at the time of governmental approval of the design of residential improvemen ts, or d. failure to construct residential improvements 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 materials in the c onstruction of a new residence or alteration of, repair of, or addition to a n existing residence; a nd 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 resid ence is located was pur chased 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, to present to the contractor a written notice of construction defects; and Req. No. 5257 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 compensate homeown er for such defects within thirty (30) days after 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 eve nt 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 conditions 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, contradict or otherwise diminish the application of, the terms of a separate express contractual warranty ag reed 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. 59-1-5257 LRB 01/02/23