Senate Amendment to Senate Bill No. 451 (BDR 10-924)
Proposed by: Committee on Commerce and Labor
Amendment Box: Replaces Amendment No. 378.
Amends: Summary: Title: Preamble: Joint Sponsorship:
ASSEMBLY ACTION
Initial and Date | SENATE ACTION Initial and DateAdopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
Amend sec. 2, page 1, by deleting lines 3 through 5 and inserting:
"Sec. 2.
"Administrator" means the administrator of the real estate division of the department of business and industry.".Amend sec. 3, page 2, line 14, by deleting:
"
replace, restore or maintain" and inserting:"
replace or restore".Amend sec. 3, page 2, line 18, by deleting:
"
replace, restore or maintain" and inserting:"
replace or restore".Amend sec. 4, page 2, line 33, by deleting "
3" and inserting "5".Amend sec. 4, page 2, line 34, by deleting:
"
replace, restore and maintain" and inserting:"
replace and restore".Amend sec. 4, page 2, line 41, by deleting "
study and" and inserting:"
study, including a member of the executive board, a unit’s owner or the property manager of the association who is so qualified. The study".Amend sec. 4, page 3, lines 2 and 3, by deleting:
"
replace, restore or maintain;" and inserting:"
replace or restore;".Amend sec. 4, page 3, lines 5 and 6, by deleting:
"
replace, restore or maintain" and inserting:"
replace or restore".Amend sec. 4, page 3, lines 9 and 10, by deleting:
"
replacement, restoration or maintenance" and inserting:"
replacement or restoration".Amend sec. 4, page 3, line 13, by deleting:
"
replacing, restoring or maintaining" and inserting:"
replacing or restoring".Amend sec. 4, page 3, between lines 15 and 16 by inserting:
"
3. The administrator shall adopt by regulation the qualifications required for conducting a study required by subsection 1.".Amend sec. 5, page 3, line 24, by deleting "
unforeseen circumstances" and inserting:"
circumstances that could not have been reasonably foreseen".Amend sec. 6, page 4, line 1, by deleting "
10" and inserting "7".Amend sec. 6, page 4, by deleting lines 3 through 20 and inserting:
"
be given to the units’ owners. Such notice must be:(a) Sent prepaid by United States mail to the mailing address of each unit within the common-interest community; or
(b) Published in a newsletter or other similar publication that is circulated to each unit’s owner.
3. In an emergency, the secretary or other officer specified in the bylaws of the association shall, if practicable, cause notice of the meeting to be sent prepaid by United States mail to the mailing address of each unit within the common-interest community. If delivery of the notice in this manner is impracticable, the notice must be hand-delivered to each unit within the common-interest community or posted in a prominent place or places within the common elements of the association.
4. The notice of a meeting of the executive board of an association must state the time and place of the meeting and include a copy of the agenda for the meeting or the date on which and the locations where copies of the agenda may be conveniently obtained by the units’ owners of the association. The notice must include notification of the right of a unit’s owner to:
(a) Have a copy of the minutes or a summary of the minutes of the meeting distributed to him upon request and, if required by the executive board, upon payment to the association of the cost of making the distribution.
(b) Speak to the association or executive board, unless the executive board is meeting in executive session.
5. The agenda of the meeting of the executive board of an association must comply with the provisions of subsection 3 of NRS 116.3108. The period required to be devoted to comments by units’ owners and discussion of those comments must be scheduled for the beginning of each meeting. In an emergency, the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.
6. At least once every 90 days, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review at one of its meetings:".
Amend sec. 6, page 4, lines 30 and 31, by deleting:
"
before the commission" and inserting:"
submitted to arbitration or mediation".Amend sec. 6, page 4, line 32, by deleting "
6." and inserting "7.".Amend sec. 6, page 4, by deleting lines 35 through 39 and inserting:
"
8. As used in this section, "emergency" means any occurrence or combination of occurrences that:(a) Could not have been reasonably foreseen;
(b) Affects the health, welfare and safety of the units’ owners of the association;
(c) Requires the immediate attention of, and possible action by, the executive board; and
(d) Makes it impracticable to comply with the provisions of subsection 2 or 5.".
Amend the bill as a whole by deleting sections 8 and 9 and adding new sections designated sections 8 and 9, following sec. 7, to read as follows:
"Sec. 8.
1. To carry out the purposes of this chapter, the real estate commission, or any member thereof, may issue subpoenas to compel the attendance of witnesses and the production of books, records and other papers.2. If any person fails to comply with a subpoena issued by the commission pursuant to this section within 10 days after its issuance, the commission may petition the district court for an order of the court compelling compliance with the subpoena.
3. Upon such a petition, the court shall enter an order directing the person subpoenaed to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order, and show cause why he has not complied with the subpoena. A certified copy must be served upon the person subpoenaed.
4. If it appears to the court that the subpoena was regularly issued by the commission, the court shall enter an order compelling compliance with the subpoena, and upon failure to obey the order the person shall be dealt with as for contempt of court.
Sec. 9.
1. Except as otherwise provided in this subsection, the executive board of an association shall, upon the written request of a unit’s owner, make available the books, records and other papers of the association for review during the regular working hours of the association. The provisions of this subsection do not apply to:(a) The personnel records of the employees of the association; and
(b) The records of the association relating to another unit’s owner.
2. If the executive board refuses to allow a unit’s owner to review the books, records or other papers of the association, the ombudsman for owners in common-interest communities may:
(a) On behalf of the unit’s owner and upon written request, review the books, records or other papers of the association during the regular working hours of the association; and
(b) If he is denied access to the books, records or other papers, request the commission to issue a subpoena for their production.
".Amend the bill as a whole by deleting sections 10 and 11 and inserting:
"Secs. 10 and 11. (Deleted by amendment.).".
Amend sec. 12, page 7, line 8, by deleting "
14" and inserting "30".Amend sec. 13, page 7, by deleting line 22 and inserting:
"
or the ombudsman for owners in common-interest communities within 14 days after receiving a written request therefor. The executive board".Amend sec. 14, page 7, line 29, by deleting:
"of the real estate division" and inserting:
"
Amend sec. 14, page 7, by deleting lines 37 through 39 and inserting:
"(a) Assist in processing claims submitted to mediation or arbitration pursuant to NRS 38.300 to 38.360, inclusive;".
Amend sec. 15, page 8, by deleting lines 15 through 18 and inserting:
"account must be administered by the administrator
.2. The fees collected pursuant to NRS 116.31155 must be credited to the account.".
Amend sec. 15, page 8, by deleting line 21 and inserting "4. The".
Amend sec. 15, page 8, line 24, by deleting "communities." and inserting:
"communities
Amend sec. 16, page 8, line 32, by deleting "
(b) Common-interest" and inserting:"
(b) Associations created for the limited purpose of maintaining a rural agricultural residential common-interest community.(c) A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that the chapter does apply to that planned community. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted, only if the declaration so provides or the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.
(d) Common-interest".
Amend sec. 16, page 8, by deleting lines 36 and 37 and inserting:
"
3. The provisions of this chapter do not:(a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units’ owners of the association;
(b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;
(c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;
(d) Prohibit a common-interest community created before January 1, 1992, from providing for a representative form of government; or
(e) Require a common-interest community created before January 1, 1992, to impose an assessment on or after October 1, 1999, against a vacant lot located within the community that is owned by the declarant.
4.
The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities .5. For the purposes of this section, the administrator shall establish, by regulation, the criteria for determining whether an association is created for the limited purpose of maintaining the landscape of the common elements of a common-interest community or maintaining a rural agricultural residential common-interest community.".
Amend the bill as a whole by adding a new section designated sec. 16.5, following sec. 16, to read as follows:
"Sec. 16.5. NRS 116.1206 is hereby amended to read as follows:
Any declaration, bylaw or other governing document of a common-interest community created before January 1, 1992, that does not conform to the provisions of this chapter shall be deemed to conform with those provisions by operation of law, and any such declaration, bylaw or other governing document is not required to be amended to conform to those provisions.2.
In the case of amendments to the declaration, bylaws or plats and plans of any common-interest community created before January 1, 1992:(a) If the result accomplished by the amendment was permitted by law before January 1, 1992, the amendment may be made either in accordance with that law, in which case that law applies to that amendment, or it may be made under this chapter; and
(b) If the result accomplished by the amendment is permitted by this chapter, and was not permitted by law before January 1, 1992, the amendment may be made under this chapter.
Amend sec. 18, page 10, by deleting lines 18 through 23 and inserting:
"owner, to pay a fine
Amend sec. 19, page 10, line 38, after "owners." by inserting:
"
Each member of the executive board who is elected after the termination of any period of the declarant’s control must be a resident of this state and reside within the common-interest community, unless a sufficient number of persons who are so qualified are not available to serve as members of the executive board.".Amend sec. 19, pages 10 and 11, by deleting lines 41 and 42 on page 10 and lines 1 through 3 on page 11, and inserting:
"2.
The term of office of a member of the executive board may not exceed 2 years. A member of the executive board may be elected to succeed himself. The governing documents of the association must set forth the month during which elections for the members of the executive board must be held after the termination of any period of the declarant’s control.3. Not less than 30 days before the preparation of a ballot for the election of members of the executive board, the secretary or other officer specified in the bylaws of the association shall cause notice to be given to each unit’s owner of his eligibility to serve as a member of the executive board. Each unit’s owner who is qualified to serve as a member of the executive board may have his name placed on the ballot along with the names of the nominees selected by the members of the executive board or a nominating committee established by the association.
4. An officer, employee, agent or director of a corporate owner of a".
Amend sec. 19, page 11, line 6, by deleting "board." and inserting:
"board
Amend sec. 19, page 11, line 15, by deleting "
4." and inserting "5.".Amend sec. 19, page 11, by deleting lines 20 through 23 and inserting:
"
by the unit’s owner, a secret ballot and a return envelope.6. Each member of the executive board shall,
Amend the bill as a whole by deleting sec. 20 and inserting:
"Sec. 20. (Deleted by amendment.)".
Amend sec. 21, page 12, by deleting lines 23 and 24 and inserting:
"
(a) Except as otherwise provided in this paragraph, deliver to the association a reserve account that contains the declarant’s share of the amounts then due, and control of the account. If, at that time, the declarant has failed to pay his share of the amounts due, the executive board shall authorize the declarant to pay the deficiency in installments for a period of 3 years, unless the declarant and the executive board agree to a shorter period.".Amend sec. 23, page 13, line 40, by deleting "Special" and inserting:
"
If the governing documents of a common-interest community do not designate an annual meeting date of the units’ owners, a meeting of the units’ owners must be held 1 year after the date of the last meeting of the units’ owners. If the units’ owners have not held a meeting for 1 year, a meeting of the units’ owners must be held on the following March 1. Special".Amend sec. 23, page 15, by deleting lines 2 through 5 and inserting:
"
combination of occurrences that:(a) Could not have been reasonably foreseen;
(b) Affects the health, welfare and safety of the units’ owners of the association;
(c) Requires the immediate attention of, and possible action by, the executive board; and
(d) Makes it impracticable to comply with the provisions of subsection 2 or 3.".
Amend sec. 24, page 15, lines 25 and 26, by deleting:
"
meeting the units’ owners of the association." and inserting "meeting.".Amend sec. 25, page 16, line 10, by deleting "
subsection," and inserting "section,".Amend sec. 25, page 16, line 12, after "owner." by inserting:
"
A unit’s owner may give a proxy only to a member of his immediate family, a tenant of the unit’s owner who resides in the common-interest community or another unit’s owner who resides in the common-interest community.".Amend sec. 25, page 16, by deleting lines 16 through 22 and inserting:
"person presiding over a meeting of the association. A proxy is void if
(a) It is not dated or purports to be revocable without notice
(b) It does not designate the votes that must be cast on behalf of the unit’s owner who executed the proxy; or
(c) The holder of the proxy does not disclose at the beginning of the meeting for which the proxy is executed the number of proxies pursuant to which he will be casting votes and the voting instructions received for each proxy.
A proxy terminates
Amend sec. 25, page 16, between lines 38 and 39 by inserting:
"
6. Votes cast for the election of a member of the executive board of an association must be counted in public.".Amend sec. 26, page 16, line 40, by deleting "
shall" and inserting "may".Amend sec. 26, page 17, by deleting lines 14 through 18 and inserting:
"certificate
(c) Must establish standards of practice for persons engaged in property management for a common-interest community;
(d) Must establish the grounds for initiating disciplinary action against a person to whom a certificate has been issued, including, without limitation, the grounds for placing conditions, limitations or restrictions on a certificate and for the suspension or revocation of a certificate; and
(e) Must establish rules of practice and procedure for conducting disciplinary hearings.
The real estate division of the department of business and industry may
investigate the property managers to whom certificates have been issued to ensure their compliance with the standards of practice adopted pursuant to this subsection and".Amend sec. 26, page 17, line 31, by deleting "
"
5.".
Amend sec. 27, page 18, lines 9 and 10, by deleting:
"replacement
, restoration and maintenance" and inserting:"replacement
and restoration".Amend sec. 27, page 18, line 14, by deleting:
"replacing
, restoring and maintaining" and inserting:"replacing
and restoring".Amend sec. 27, page 19, line 2, by deleting:
"
regularly scheduled meeting." and inserting:"
meeting of the units’ owners of the association.".Amend sec. 27, page 19, between lines 17 and 18 by inserting:
"
9. A vote taken to approve or ratify the commencement of a civil action is void unless the notice of the meeting at which the vote is to be taken includes an explanation prepared by an attorney who is authorized to practice law in this state of:(a) The estimated costs of the civil action, including reasonable attorney’s fees;
(b) The potential benefits of the civil action and the potential adverse consequences if the decision is not favorable to the association, including, without limitation, the potential liability of the association for the payment of attorney’s fees and costs;
(c) The possible effects of the civil action on the value of property located within the common-interest community; and
(d) Such other information as may be required by the administrator including, without limitation, disclosures that are required to be made upon the sale of the property.".
Amend sec. 28, page 19, by deleting lines 25 through 27 and inserting:
"administrator
Amend sec. 28, page 19, by deleting lines 29 and 30 and inserting:
"administrator
Amend sec. 28, page 19, line 38, after "office." by inserting:
"
In no event may the fees required to be paid pursuant to this section exceed $3 per unit.".Amend sec. 28, page 19, line 40, by deleting:
"
more than one association." and inserting:"
a master association and to an association organized pursuant to NRS 116.3101.".Amend the bill as a whole by adding a new section designated sec. 28.5, following sec. 28, to read as follows:
"Sec. 28.5. NRS 116.31155 is hereby amended to read as follows:
116.31155 1. An association shall:(a) If the association is required to pay the fee imposed by NRS 78.150 or 82.193, pay to the
(b) If the association is organized as a trust or partnership, pay to the administrator a fee established by regulation of the administrator for each unit in the association.
2. The fees required to be paid pursuant to this section must be:
(a)
Paid at such times as are established by the administrator.(b)
Deposited with the state treasurer for credit to the account for the ombudsman for owners in common-interest communities created pursuant to NRS 116.1117.
3. A unit’s owner may not be required to pay any portion of the fees required to be paid pursuant to this section to a master association and to an association organized pursuant to NRS 116.3101.
4. Upon the payment of the fees required by this section, the administrator shall provide to the association evidence that it paid the fees in compliance with this section.
".Amend sec. 31, page 21, line 39, by deleting:
"
replacement, restoration and maintenance;" and inserting:"
replacement and restoration;".Amend sec. 31, page 22, between lines 18 and 19 by inserting:
"
(l) The information statement set forth in NRS 116.41095.".Amend sec. 32, page 22, line 27, after "NRS" by inserting "
116.4103 and".Amend sec. 32, page 23, line 22, by deleting:
"replace
, restore and maintain" and inserting:"replace
and restore".Amend sec. 32, page 24, by deleting lines 26 through 31 and inserting:
"typically to seek to mediate or arbitrate the dispute and, if mediation or arbitration is unsuccessful, file a lawsuit and ask a court to resolve the dispute. In addition to your personal cost in mediation or arbitration,".
Amend sec. 32, page 25, lines 3 and 4, by deleting:
"replacement
, restoration and maintenance" and inserting:"replacement
and restoration".Amend the bill as a whole by deleting sections 33 and 34 and adding new sections designated sections 33 and 34, following sec. 32, to read as follows:
"Sec. 33. NRS 38.330 is hereby amended to read as follows:
2. If all the parties named in the claim do not agree to mediation, the parties shall select an arbitrator from the list of arbitrators maintained by the division pursuant to NRS 38.340. Any arbitrator selected must be available within the geographic area. If the parties fail to agree upon an arbitrator, the division shall appoint an arbitrator from the list maintained by the division. Any arbitrator appointed must be available within the geographic area. Upon appointing an arbitrator, the division shall provide the name of the arbitrator to each party.
3.
The division may provide for the payment of the fees for a mediator or an arbitrator selected or appointed pursuant to this section from the account for the ombudsman for owners in common-interest communities created pursuant to NRS 116.1117, to the extent that money is available in the account for this purpose.4.
Except as otherwise provided in this section and except where inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the arbitration of a claim pursuant to this section must be conducted in accordance with the provisions of NRS 38.075 to 38.105, inclusive, 38.115
(a) Applies to have an award vacated and a rehearing granted pursuant to NRS 38.145; or
(b) Commences a civil action based upon any claim which was the subject of arbitration,
the party shall, if he fails to obtain a more favorable award or judgment than that which was obtained in the initial arbitration, pay all costs and reasonable attorney’s fees incurred by the opposing party after the application for a rehearing was made or after the complaint in the civil action was filed.
Sec. 34. NRS 78.150 is hereby amended to read as follows:
(a) The name of the corporation;
(b) The file number of the corporation, if known;
(c) The names and titles of all of its required officers and the names of all of its directors;
(d) The mailing or street address, either residence or business, of each officer and director listed, following the name of the officer or director; and
(e) The signature of an officer of the corporation certifying that the list is true, complete and accurate.
2. The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the secretary of state, on a form furnished by him, an amended list containing all of the information required in subsection 1. If the corporation has had no changes in its required officers and directors since its previous list was filed, no amended list need be filed if an officer of the corporation certifies to the secretary of state as a true and accurate statement that no changes in the required officers or directors has occurred.
3. Upon filing a list of officers and directors, or certifying that no changes have occurred, the corporation shall pay to the secretary of state a fee of $85.
4. The secretary of state shall, 60 days before the last day for filing the annual list required by subsection 2, cause to be mailed to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, a notice of the fee due pursuant to subsection 3 and a reminder to file a list of officers and directors or a certification of no change. Failure of any corporation to receive a notice or form does not excuse it from the penalty imposed by law.
5. If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 3 or 7 is not paid, the secretary of state may return the list for correction or payment.
6. An annual list for a corporation not in default which is received by the secretary of state more than 60 days before its due date shall be deemed an amended list for the previous year.
7. If the corporation is an association as defined in NRS 116.110315, the secretary of state shall not accept the filing required by this section unless it is accompanied by evidence of the payment of the fee required to be paid pursuant to NRS 116.31155 [.] that is provided to the association pursuant to subsection 4 of that section.".
Amend sec. 35, page 26, by deleting lines 26 through 28 and inserting:
"Sec. 35. NRS 116.1102, 116.1115, 116.1202, 116.1203, 116.1204, 116.1205, 116.1207 and 116.1208 are hereby repealed.".
Amend sec. 37, page 26, by deleting lines 37 through 39 and inserting:
"than October 1, 2000, any declaration, bylaw or other governing document of a common-interest community created on or after January 1, 1992, that does not conform to the provisions of chapter 116 of NRS, as amended by this act, must be changed to conform to those provisions, and may be so changed without complying with the".
Amend the bill as a whole by adding a new section designated sec. 38, following sec. 37, to read as follows:
"Sec. 38. 1. This section and sections 1 to 28, inclusive, 29 to 33, inclusive, 35, 36 and 37 of this act become effective on October 1, 1999.
2. Sections 28.5 and 34 of this act become effective on July 1, 2000.".
Amend the leadlines of repealed sections by deleting the leadlines of NRS 38.300, 38.310, 38.320, 38.330, 38.340, 38.350, 38.360 and 116.1206.
Amend the title of the bill by deleting the sixth through eighth lines and inserting:
"documents of each association organized in this state; expanding the authority of the real estate commission to issue subpoenas;".