While an agreement entered into pursuant to NRS 353.500 to 353.630, inclusive, is in effect, the property that is the subject of the agreement shall be deemed to be the property of this State or the state agency for the purposes of statutory limits on damages that may be awarded against this State, including, without limitation, the limits in chapter 41 of NRS, with respect to any action or claim, including a claim for civil damages, that arises from or is related to the property and is brought by a person who is not a party to the agreement if:
1. An improvement is being constructed on the property pursuant to the agreement; or
2. This State or a state agency is in possession of the property.
(Added to NRS by 2001, 2481; A 2007, 831)