Amendment No. 908

Assembly Amendment to Senate Bill No. 451 First Reprint (BDR 10-924)

Proposed by: Committee on Commerce and Labor

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 5, page 3, by deleting lines 18 and 19 and inserting:

"Sec. 5. Money in the reserve account of an association required by paragraph (b) of subsection 2 of NRS 116.3115 may not be withdrawn without the".

Amend sec. 5, page 3, by deleting lines 23 through 42.

Amend sec. 6, page 4, line 5, by deleting "7" and inserting "10".

Amend sec. 6, page 4, line 9, by deleting "community;" and inserting:

"community or to any other mailing address designated in writing by the unit’s owner;".

Amend sec. 7, page 5, by deleting lines 24 through 32 and inserting:

"2. The form for registration must include, without limitation, the information required to be maintained pursuant to paragraph (d) of subsection 4 of NRS 116.1116.".

Amend sec. 14, page 7, by deleting lines 21 through 29 and inserting:

"(d) Compile and maintain a registration of each association organized within the state which includes, without limitation:

(1) The name, address and telephone number of the association;

(2) The name of the person engaged in property management for the common-interest community or the name of the person who manages the property at the site of the common-interest community;

(3) The names, mailing addresses and telephone numbers of the members of the executive board of the association;

(4) The name of the declarant;

(5) The number of units in the common-interest community; and

(6) The total annual assessment made by the association.".

Amend sec. 16, page 8, by deleting lines 2 and 3 and inserting:

"116.1201 1. Except as otherwise provided in this section and NRS [116.1202 and] 116.1203, this chapter applies to all common-interest".

Amend sec. 16, page 8, by deleting lines 6 through 9 and inserting:

"(a) Associations created for the limited purpose of maintaining:

(1) The landscape of the common elements of a common-interest community;

(2) Facilities for flood control; or

(3) A rural agricultural residential common-interest community.".

Amend sec. 16, page 8, line 10, by deleting "(c)" and inserting "(b)".

Amend sec. 16, page 8, line 18, by deleting "(d)" and inserting "(c)".

Amend sec. 16, page 8, by deleting line 31 and inserting "1992; or".

Amend sec. 16, page 8, by deleting lines 33 through 36 and inserting:

"1992, from providing for a representative form of government.".

Amend sec. 16, page 8, line 42, after "community" by inserting:

", maintaining facilities for flood control".

Amend the bill as a whole by adding a new section designated sec. 16.2, following sec. 16, to read as follows:

"Sec. 16.2. NRS 116.1203 is hereby amended to read as follows:

116.1203 1. Except as otherwise provided in subsection 2, if a planned community [:

(a) Contains] contains no more than 12 units and is not subject to any developmental rights , [; or

(b) Provides, in its declaration, that the annual average liability for common expenses of all units restricted to residential purposes, exclusive of optional users’ fees and any insurance premiums paid by the association, may not exceed $500 per unit,] it is subject only to NRS 116.1105, 116.1106 and 116.1107 unless the declaration provides that this entire chapter is applicable.

2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138, NRS 116.3101 to 116.3119, inclusive, and 116.11031 to 116.110393, inclusive, to the extent necessary in construing any of those sections, apply to a residential planned community containing more than six units.".

Amend sec. 19, page 11, by deleting lines 27 through 32 and inserting:

"at least a majority of whom must be units’ owners. The executive board shall elect the officers. The members and".

Amend sec. 19, page 12, by deleting lines 8 and 9 and inserting:

"unit may be an officer or member of the executive board. In all events where the person serving".

Amend sec. 21, page 13, by deleting lines 6 and 7 and inserting:

"amounts then due, and control of the account. If the declaration was recorded before October 1, 1999, and, at the time the control of the declarant ends, he has failed to pay his share of the amounts due, the executive".

Amend sec. 21, page 13, between lines 12 and 13, by inserting:

"The provisions of this subsection do not apply to a time share or time-share project governed by the provisions of chapter 119A of NRS.".

Amend sec. 22, page 14, by deleting lines 14 and 15 and inserting:

"against all units’ owners. Any rule that is not so uniformly enforced may not be enforced against any unit’s owner.".

Amend the bill as a whole by adding a new section designated sec. 24.5, following sec. 24, to read as follows:

"Sec. 24.5. NRS 116.3109 is hereby amended to read as follows:

116.3109 1. [Unless] Except as otherwise provided in this section and unless the bylaws provide otherwise, a quorum is present throughout any meeting of the association if persons entitled to cast 20 percent of the votes that may be cast for election of the executive board are present in person or by proxy at the beginning of the meeting.

2. Unless the bylaws specify a larger percentage, a quorum is deemed present throughout any meeting of the executive board if persons entitled to cast 50 percent of the votes on that board are present at the beginning of the meeting.

3. For the purposes of determining whether a quorum is present for the election of any member of the executive board, only the secret written ballots that are returned to the association may be counted.".

Amend sec. 26, page 18, by deleting lines 36 and 37 and inserting:

"(a) A [full-time employee of an association who manages only one association.] person who is engaged in property management for a common-interest community on October 1, 1999, and is granted an exemption from the requirements of subsection 2 by the administrator upon demonstration that he is qualified and competent to engage in property management for a common-interest community.".

Amend sec. 26, page 19, by deleting lines 2 through 7 and inserting:

"[4.] 5. As used in this section, "property management" means the physical,".

Amend sec. 27, page 19, line 22, by deleting:

"4, 5 and 6:" and inserting:

"4 [, 5 and 6:] to 7, inclusive:".

Amend sec. 27, page 19, by deleting lines 28 and 29 and inserting:

"major components of the common elements. The reserve may be used only for".

Amend sec. 27, page 20, line 9, after "7." by inserting:

"The association of a common-interest community created before January 1, 1992, is not required to make an assessment against a vacant lot located within the community that is owned by the declarant.

8.".

Amend sec. 27, page 20, line 12, by deleting "8." and inserting "[8.] 9.".

Amend sec. 27, page 20, line 17, by deleting "[or agreement]" and inserting:

"or written agreement".

Amend sec. 27, page 20, by deleting line 19 and inserting "allocated.".

Amend sec. 27, pages 20 and 21, by deleting lines 28 through 43 on page 20 and lines 1 through 7 on page 21 and inserting:

"association. If a civil action is commenced pursuant to this paragraph without the required vote or agreement, the action must be ratified within 90 days after the commencement of the action by a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated. If the association, after making a good faith effort, cannot obtain the required vote or agreement to commence or ratify such a civil action, the association may thereafter seek to dismiss the action without prejudice only if a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated was obtained at the time the approval to commence or ratify the action was sought.

10. At least 10 days before an association commences or seeks to ratify the commencement of a civil action, the association shall provide a written statement to all units’ owners that includes:

(a) A reasonable estimate of the costs of the civil action, including reasonable attorney’s fees;

(b) An explanation of the potential benefits of the civil action and the potential adverse consequences if the association does not commence the action or if the outcome of the action is not favorable to the association; and

(c) All disclosures that are required to be made upon the sale of the property.

11. No person other than a unit’s owner may request the dismissal of a civil action commenced by the association on the ground that the association failed to comply with any provision of this section.".

Amend sec. 28, page 21, line 16, by deleting "association." and inserting:

"association [.] used for residential use.".

Amend sec. 28.5, page 21, line 38, by deleting "association." and inserting:

"association used for residential use.".

Amend sec. 30, page 23, line 21, by deleting "or".

Amend sec. 30, page 23, by deleting lines 23 through 36 and inserting:

"the purchaser without penalty; or

(g) Disposition of a unit in a planned community [in which the declaration limits the average annual assessment of any unit to not more than $500, exclusive of optional users’ fees and any insurance premiums paid by the association, or] which contains no more than 12 units if:

(1) The declarant reasonably believes in good faith that the maximum [stated] assessment stated in the declaration will be sufficient to pay the expenses of the planned community; and

(2) The declaration cannot be amended to increase the assessment during the period of the declarant’s control without the consent of all units’ owners.

3. Except as otherwise provided in subsection 2, the provisions of NRS 116.4101 to 116.412, inclusive, do not apply to a planned community described in NRS 116.1203.".

Amend the bill as a whole by adding a new section designated sec. 32.5, following sec. 32, to read as follows:

"Sec. 32.5. NRS 119A.165 is hereby amended to read as follows:

119A.165 1. If a matter governed by this chapter is also governed by chapter 116 of NRS, compliance with the provisions of chapter 116 of NRS governing the matter which are in addition to or different from the provisions in this chapter governing the same matter is not required. In the event of a conflict between provisions of this chapter and chapter 116 of NRS, the provisions of this chapter prevail.

2. Without limiting the generality of subsection 1, the provisions of sections 3 to 13, inclusive, of his act and NRS 116.3103, 116.31031, 116.31034, 116.3106, 116.31065, 116.3108 to 116.311, inclusive, 116.31139, 116.31145, 116.3115, 116.31155, 116.31162, 116.41095 and 116.4117 do not apply to a time share or a time-share project.".

Amend sec. 35, page 30, line 39, by deleting "116.1203,".

Amend the leadlines of repealed sections by deleting the leadline of NRS 116.1203.

Amend the title of the bill by deleting the fifth and sixth lines and inserting:

"interest communities to maintain a registration of each association organized in this state; expanding the authority of".