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CSHB 340(JUD) am: "An Act relating to damages in an action for a defect in the design, construction, and remodeling of certain dwellings; and providing for an effective date."

00 CS FOR HOUSE BILL NO. 340(JUD) am 01 "An Act relating to damages in an action for a defect in the design, construction, and 02 remodeling of certain dwellings; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.45.893(c) is amended to read: 05 (c) The notice required by (a) of this section must be conspicuous and must be 06 in substantially the following form: 07 ALASKA LAW AT AS 09.45.881 - 09.45.899 CONTAINS 08 IMPORTANT REQUIREMENTS THAT YOU MUST FOLLOW 09 BEFORE YOU MAY FILE A COURT ACTION FOR DEFECTIVE 10 DESIGN, CONSTRUCTION, OR REMODELING AGAINST THE 11 DESIGNER, BUILDER, OR REMODELER OF YOUR HOME. 12 WITHIN ONE YEAR OF THE DISCOVERY OF A DESIGN, 13 CONSTRUCTION, OR REMODELING DEFECT, BEFORE YOU 14 FILE A COURT ACTION, YOU MUST DELIVER TO THE

01 DESIGNER, BUILDER, OR REMODELER A WRITTEN NOTICE 02 OF ANY DESIGN, CONSTRUCTION, OR REMODELING 03 CONDITIONS YOU ALLEGE ARE DEFECTIVE IN ORDER TO 04 PROVIDE YOUR DESIGNER, BUILDER, OR REMODELER WITH 05 THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY 06 FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT 07 ANY OFFER MADE BY THE DESIGNER, BUILDER, OR 08 REMODELER. THERE ARE STRICT DEADLINES AND 09 PROCEDURES UNDER STATE LAW, AND FAILURE TO 10 FOLLOW THEM MAY AFFECT YOUR RIGHT TO FILE A COURT 11 ACTION. ALASKA LAW AT AS 09.45.895 CONTAINS 12 LIMITATIONS TO THE AMOUNT OF DAMAGES THAT MAY 13 BE RECOVERED IN A COURT ACTION FOR DEFECTIVE 14 DESIGN, CONSTRUCTION, OR REMODELING. 15 * Sec. 2. AS 09.45.895 is repealed and reenacted to read: 16 Sec. 09.45.895. Limitation on damages; collateral sources. (a) Except as 17 provided in (c) of this section, in an action covered under AS 09.45.881 - 09.45.899, a 18 claimant may recover only the following damages caused by a defect: 19 (1) the reasonable cost of repairs necessary to cure a defect, or actual 20 damages that result from the construction defect, including reasonable and necessary 21 engineering or consulting fees required to evaluate and cure the defect, that the 22 construction professional is responsible for repairing; 23 (2) the reasonable expenses of temporary housing reasonably 24 necessary during the repair period; 25 (3) the reduction in market value, if any, to the extent that the 26 reduction is due to the defect; and 27 (4) reasonable and necessary attorney fees and costs. 28 (b) In an action under AS 09.45.881 - 09.45.899, a court shall deduct from the 29 compensation awarded to a claimant any compensation paid to the claimant under a 30 homeowner's warranty contract or a homeowner's insurance policy as compensation 31 for the defects that are the subject of the action. The amount of this deduction does

01 not include any compensation paid by the construction professional to the claimant to 02 satisfy the claim, any compensation paid under an insurance policy issued to the 03 construction professional to satisfy the claim, or any amount the claimant is required 04 to repay under the terms of the homeowner's warranty contract or homeowner's 05 insurance policy. 06 (c) Subsections (a) and (b) of this section do not apply if the defect was caused 07 by gross negligence or reckless or intentional misconduct by the construction 08 professional. 09 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. This Act applies to an action covered under AS 09.45.881 - 12 09.45.899 that accrues on or after the effective date of this Act. 13 * Sec. 4. This Act takes effect July 1, 2004.