EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 116 of NRS is hereby amended by adding thereto

1-3 Sec. 2. "Administrator" means the administrator of the real estate

1-4 division of the department of business and industry.

1-5 Sec. 3. 1. Except as otherwise provided in subsection 2 and unless

1-6 the declaration of a common-interest community imposes more stringent

1-7 standards, the executive board of an association shall, not less than 30

1-8 days or more than 60 days before the beginning of the fiscal year of the

1-9 association, prepare and distribute to each unit’s owner a copy of:

1-10 (a) The budget for the daily operation of the association. The budget

1-11 must include, without limitation, the estimated annual revenue and

2-1 expenditures of the association and any contributions to be made to the

2-2 reserve account of the association.

2-3 (b) The budget to maintain the reserve required by paragraph (b) of

2-4 subsection 2 of NRS 116.3115. The budget must include, without

2-5 limitation:

2-6 (1) The current estimated replacement cost, estimated remaining

2-7 life and estimated useful life of each major component of the common

2-8 elements;

2-9 (2) As of the end of the fiscal year for which the budget is prepared,

2-10 the current estimate of the amount of cash reserves that are necessary,

2-11 and the current amount of accumulated cash reserves that are set aside,

2-12 to repair, replace or restore the major components of the common

2-13 elements;

2-14 (3) A statement as to whether the executive board has determined or

2-15 anticipates that the levy of one or more special assessments will be

2-16 required to repair, replace or restore any major component of the

2-17 common elements or to provide adequate reserves for that purpose; and

2-18 (4) A general statement describing the procedures used for the

2-19 estimation and accumulation of cash reserves pursuant to subparagraph

2-20 (2), including, without limitation, the qualifications of the person

2-21 responsible for the preparation of the study required by section 4 of this

2-22 act.

2-23 2. In lieu of distributing copies of the budgets of the association

2-24 required by subsection 1, the executive board may distribute to each

2-25 unit’s owner a summary of those budgets, accompanied by a written

2-26 notice that the budgets are available for review at the business office of

2-27 the association or other suitable location and that copies of the budgets

2-28 will be provided upon request.

2-29 Sec. 4. 1. The executive board of an association shall:

2-30 (a) Cause to be conducted at least once every 5 years, a study of the

2-31 reserves required to repair, replace and restore the major components of

2-32 the common elements;

2-33 (b) Review the results of that study at least annually to determine if

2-34 those reserves are sufficient; and

2-35 (c) Make any adjustments it deems necessary to maintain the required

2-36 reserves.

2-37 2. The study required by subsection 1 must be conducted by a person

2-38 qualified by training and experience to conduct such a study, including a

2-39 member of the executive board, a unit’s owner or the property manager

2-40 of the association who is so qualified. The study must include, without

2-41 limitation:

3-1 (a) A summary of an inspection of the major components of the

3-2 common elements the association is obligated to repair, replace or

3-3 restore;

3-4 (b) An identification of the major components of the common

3-5 elements that the association is obligated to repair, replace or restore

3-6 which have a remaining useful life of less than 30 years;

3-7 (c) An estimate of the remaining useful life of each major component

3-8 identified pursuant to paragraph (b);

3-9 (d) An estimate of the cost of repair, replacement or restoration of

3-10 each major component identified pursuant to paragraph (b) during and

3-11 at the end of its useful life; and

3-12 (e) An estimate of the total annual assessment that may be required to

3-13 cover the cost of repairing, replacement or restoration the major

3-14 components identified pursuant to paragraph (b), after subtracting the

3-15 reserves of the association as of the date of the study.

3-16 3. The administrator shall adopt by regulation the qualifications

3-17 required for conducting a study required by subsection 1.

3-18 Sec. 5. 1. Except as otherwise provided in subsection 2, money in

3-19 the reserve account of an association may not be withdrawn without the

3-20 signatures of at least two members of the executive board or the

3-21 signatures of at least one member of the executive board and one officer

3-22 of the association who is not a member of the executive board.

3-23 2. The executive board may temporarily transfer money in the

3-24 reserve account of the association to the association’s general operating

3-25 account if the executive board has made and recorded in the minutes of

3-26 one of its meetings a written finding that circumstances that could not

3-27 have been reasonably foreseen exist which require the expenditure of the

3-28 reserves to protect the health, safety and welfare of the units’ owners.

3-29 The finding must indicate how and when the money so transferred will

3-30 be repaid to the reserve account. The money so transferred must be

3-31 repaid to the reserve account within 1 year after the date on which it was

3-32 transferred.

3-33 3. The executive board shall collect a special assessment if required

3-34 to repay the money so transferred within the time required by this

3-35 section, regardless of any provisions to the contrary that may be

3-36 contained in the governing documents of the association prohibiting

3-37 such an assessment. If such a special assessment is collected, the board

3-38 may grant an extension to any unit’s owner who is unable to pay the

3-39 special assessment by the date on which it becomes due. The granting of

3-40 such an extension does not prohibit the executive board from pursuing

3-41 any remedies available to the board to collect the unpaid special

3-42 assessment.

4-1 Sec. 6. 1. A meeting of the executive board of an association must

4-2 be held at least once every 90 days.

4-3 2. Except in an emergency or unless the bylaws of an association

4-4 require a longer period of notice, the secretary or other officer specified

4-5 in the bylaws of the association shall, not less than 7 days before the date

4-6 of a meeting of the executive board, cause notice of the meeting to be

4-7 given to the units’ owners. Such notice must be:

4-8 (a) Sent prepaid by United States mail to the mailing address of each

4-9 unit within the common-interest community; or

4-10 (b) Published in a newsletter or other similar publication that is

4-11 circulated to each unit’s owner.

4-12 3. In an emergency, the secretary or other officer specified in the

4-13 bylaws of the association shall, if practicable, cause notice of the meeting

4-14 to be sent prepaid by United States mail to the mailing address of each

4-15 unit within the common-interest community. If delivery of the notice in

4-16 this manner is impracticable, the notice must be hand-delivered to each

4-17 unit within the common-interest community or posted in a prominent

4-18 place or places within the common elements of the association.

4-19 4. The notice of a meeting of the executive board of an association

4-20 must state the time and place of the meeting and include a copy of the

4-21 agenda for the meeting or the date on which and the locations where

4-22 copies of the agenda may be conveniently obtained by the units’ owners

4-23 of the association. The notice must include notification of the right of a

4-24 unit’s owner to:

4-25 (a) Have a copy of the minutes or a summary of the minutes of the

4-26 meeting distributed to him upon request and, if required by the executive

4-27 board, upon payment to the association of the cost of making the

4-28 distribution.

4-29 (b) Speak to the association or executive board, unless the executive

4-30 board is meeting in executive session.

4-31 5. The agenda of the meeting of the executive board of an

4-32 association must comply with the provisions of subsection 3 of NRS

4-33 116.3108. The period required to be devoted to comments by units’

4-34 owners and discussion of those comments must be scheduled for the

4-35 beginning of each meeting. In an emergency, the executive board may

4-36 take action on an item which is not listed on the agenda as an item on

4-37 which action may be taken.

4-38 6. At least once every 90 days, unless the declaration or bylaws of the

4-39 association impose more stringent standards, the executive board shall

4-40 review at one of its meetings:

4-41 (a) A current reconciliation of the operating account of the

4-42 association;

4-43 (b) A current reconciliation of the reserve account of the association;

5-1 (c) The actual revenues and expenses for the reserve account,

5-2 compared to the budget for that account for the current year;

5-3 (d) The latest account statements prepared by the financial institutions

5-4 in which the accounts of the association are maintained;

5-5 (e) An income and expense statement, prepared on at least a quarterly

5-6 basis, for the operating and reserve accounts of the association; and

5-7 (f) The current status of any civil action or claim submitted to

5-8 arbitration or mediation in which the association is a party.

5-9 7. The minutes of a meeting of the executive board of an association

5-10 must be made available to the units’ owners in accordance with the

5-11 provisions of subsection 5 of NRS 116.3108.

5-12 8. As used in this section, "emergency" means any occurrence or

5-13 combination of occurrences that:

5-14 (a) Could not have been reasonably foreseen;

5-15 (b) Affects the health, welfare and safety of the units’ owners of the

5-16 association;

5-17 (c) Requires the immediate attention of, and possible action by, the

5-18 executive board; and

5-19 (d) Makes it impracticable to comply with the provisions of subsection

5-20 2 or 5.

5-21 Sec. 7. 1. Each association shall, at the time it pays the fee

5-22 required by NRS 116.31155, register with the ombudsman for owners in

5-23 common-interest communities on a form prescribed by the ombudsman.

5-24 2. The form for registration must include, without limitation:

5-25 (a) The name of the association;

5-26 (b) The name of the person engaged in property management for the

5-27 common-interest community;

5-28 (c) The date on which the common-interest community was created;

5-29 (d) The names of the members of the executive board of the

5-30 association; and

5-31 (e) The date of the most recent study of the reserves of the association

5-32 required by section 4 of this act.

5-33 Sec. 8. 1. To carry out the purposes of this chapter, the real estate

5-34 commission, or any member thereof, may issue subpoenas to compel the

5-35 attendance of witnesses and the production of books, records and other

5-36 papers.

5-37 2. If any person fails to comply with a subpoena issued by the

5-38 commission pursuant to this section within 10 days after its issuance, the

5-39 commission may petition the district court for an order of the court

5-40 compelling compliance with the subpoena.

5-41 3. Upon such a petition, the court shall enter an order directing the

5-42 person subpoenaed to appear before the court at a time and place to be

5-43 fixed by the court in its order, the time to be not more than 10 days after

6-1 the date of the order, and show cause why he has not complied with the

6-2 subpoena. A certified copy must be served upon the person subpoenaed.

6-3 4. If it appears to the court that the subpoena was regularly issued by

6-4 the commission, the court shall enter an order compelling compliance

6-5 with the subpoena, and upon failure to obey the order the person shall be

6-6 dealt with as for contempt of court.

6-7 Sec. 9. 1. Except as otherwise provided in this subsection, the

6-8 executive board of an association shall, upon the written request of a

6-9 unit’s owner, make available the books, records and other papers of the

6-10 association for review during the regular working hours of the

6-11 association. The provisions of this subsection do not apply to:

6-12 (a) The personnel records of the employees of the association; and

6-13 (b) The records of the association relating to another unit’s owner.

6-14 2. If the executive board refuses to allow a unit’s owner to review the

6-15 books, records or other papers of the association, the ombudsman for

6-16 owners in common-interest communities may:

6-17 (a) On behalf of the unit’s owner and upon written request, review the

6-18 books, records or other papers of the association during the regular

6-19 working hours of the association; and

6-20 (b) If he is denied access to the books, records or other papers, request

6-21 the commission to issue a subpoena for their production.

6-22 Sec. 10 and 11. (Deleted by amendment.)

6-23 Sec. 12. If any change is made to the governing documents of an

6-24 association, the secretary or other officer specified in the bylaws of the

6-25 association shall, within 30 days after the change is made, prepare and

6-26 cause to be hand-delivered or sent prepaid by United States mail to the

6-27 mailing address of each unit or to any other mailing address designated

6-28 in writing by the unit’s owner, a copy of the change that was made.

6-29 Sec. 13. 1. The executive board of an association shall maintain

6-30 and make available for review at the business office of the association or

6-31 other suitable location:

6-32 (a) The financial statement of the association;

6-33 (b) The budgets of the association required to be prepared pursuant to

6-34 section 3 of this act; and

6-35 (c) The study of the reserves of the association required to be

6-36 conducted pursuant to section 4 of this act.

6-37 2. The executive board shall provide a copy of any of the records

6-38 required to be maintained pursuant to subsection 1 to a unit’s owner or

6-39 the ombudsman for owners in common-interest communities within 14

6-40 days after receiving a written request therefor. The executive board may

6-41 charge a fee to cover the actual costs of preparing a copy, but not to

6-42 exceed 25 cents per page.

7-1 Sec. 14. NRS 116.1116 is hereby amended to read as follows:

7-2 116.1146 1. The office of the ombudsman for owners in common-

7-29 (3) Available for use by members of the general public.

7-30 Sec. 15. NRS 116.1117 is hereby amended to read as follows:

7-31 116.1117 1. There is hereby created the account for the ombudsman

7-41 common-interest communities [.] and for the payment of fees for a

7-42 mediator or an arbitrator pursuant to NRS 38.330.

8-1 Sec. 16. NRS 116.1201 is hereby amended to read as follows:

8-2 116.1201 1. Except as otherwise provided in [NRS 116.1202 and

8-22 3. The provisions of this chapter do not:

8-23 (a) Prohibit a common-interest community created before January 1,

8-24 1992, from providing for separate classes of voting for the units’ owners

8-25 of the association;

8-26 (b) Require a common-interest community created before January 1,

8-27 1992, to comply with the provisions of NRS 116.2101 to 116.2122,

8-28 inclusive;

8-29 (c) Invalidate any assessments that were imposed on or before October

8-30 1, 1999, by a common-interest community created before January 1,

8-31 1992;

8-32 (d) Prohibit a common-interest community created before January 1,

8-33 1992, from providing for a representative form of government; or

8-34 (e) Require a common-interest community created before January 1,

8-35 1992, to impose an assessment on or after October 1, 1999, against a

8-36 vacant lot located within the community that is owned by the declarant.

8-37 4. The provisions of chapters 117 and 278A of NRS do not apply to

8-38 common-interest communities . [created on or after January 1, 1992.]

8-39 5. For the purposes of this section, the administrator shall establish,

8-40 by regulation, the criteria for determining whether an association is

8-41 created for the limited purpose of maintaining the landscape of the

8-42 common elements of a common-interest community or maintaining a

8-43 rural agricultural residential common-interest community.

9-1 Sec. 16.5. NRS 116.1206 is hereby amended to read as follows:

9-2 116.1206 1. Any declaration, bylaw or other governing document

9-3 of a common-interest community created before January 1, 1992, that

9-4 does not conform to the provisions of this chapter shall be deemed to

9-5 conform with those provisions by operation of law, and any such

9-6 declaration, bylaw or other governing document is not required to be

9-7 amended to conform to those provisions.

9-8 2. In the case of amendments to the declaration, bylaws or plats and

9-9 plans of any common-interest community created before January 1, 1992:

9-10 (a) If the result accomplished by the amendment was permitted by law

9-11 before January 1, 1992, the amendment may be made either in accordance

9-12 with that law, in which case that law applies to that amendment, or it may

9-13 be made under this chapter; and

9-14 (b) If the result accomplished by the amendment is permitted by this

9-15 chapter, and was not permitted by law before January 1, 1992, the

9-16 amendment may be made under this chapter.

9-17 [2.] 3. An amendment to the declaration, bylaws or plats and plans

9-18 authorized by this section to be made under this chapter must be adopted in

9-19 conformity with the applicable provisions of chapter 117 or 278A of NRS

9-20 and with the procedures and requirements specified by those instruments. If

9-21 an amendment grants to any person any rights, powers or privileges

9-22 permitted by this chapter, all correlative obligations, liabilities and

9-23 restrictions in this chapter also apply to that person.

9-24 Sec. 17. NRS 116.3102 is hereby amended to read as follows:

9-25 116.3102 1. Except as otherwise provided in subsection 2, and

9-41 or interest to real estate or personal property, but:

10-1 (1) Common elements in a condominium or planned community may

10-2 be conveyed or subjected to a security interest only pursuant to NRS

10-3 116.3112; and

10-4 (2) Part of a cooperative may be conveyed, or all or part of a

10-5 cooperative may be subjected to a security interest, only pursuant to NRS

10-6 116.3112;

10-7 (i) Grant easements, leases, licenses and concessions through or over the

10-8 common elements;

10-9 (j) Impose and receive any payments, fees or charges for the use, rental

10-10 or operation of the common elements, other than limited common elements

10-11 described in subsections 2 and 4 of NRS 116.2102, and for services

10-12 provided to units’ owners;

10-13 (k) Impose charges for late payment of assessments and, except as

10-14 otherwise provided in NRS 116.31031, after notice and an opportunity to

10-15 be heard, levy reasonable fines for violations of the declaration, bylaws,

10-16 rules and regulations of the association;

10-17 (l) Impose reasonable charges for the preparation and recordation of

10-18 amendments to the declaration, the information required by NRS 116.4109

10-19 or statements of unpaid assessments;

10-20 (m) Provide for the indemnification of its officers and executive board

10-21 and maintain directors’ and officers’ liability insurance;

10-22 (n) Assign its right to future income, including the right to receive

10-23 assessments for common expenses, but only to the extent the declaration

10-24 expressly so provides;

10-25 (o) Exercise any other powers conferred by the declaration or bylaws;

10-26 (p) Exercise all other powers that may be exercised in this state by legal

10-27 entities of the same type as the association;

10-28 (q) Direct the removal of vehicles improperly parked on property owned

10-29 or leased by the association, pursuant to NRS 487.038; and

10-30 (r) Exercise any other powers necessary and proper for the governance

10-31 and operation of the association.

10-32 2. The declaration may not impose limitations on the power of the

10-33 association to deal with the declarant which are more restrictive than the

10-34 limitations imposed on the power of the association to deal with other

10-35 persons.

10-36 Sec. 18. NRS 116.31031 is hereby amended to read as follows:

10-37 116.31031 1. If a unit’s owner, or a tenant or guest of a unit’s owner,

10-43 [(a)] (1) Voting on matters related to the common-interest community.

11-1 [(b)] (2) Using the common elements. The provisions of this paragraph

11-2 do not prohibit the unit’s owner, or the tenant or guest of the unit’s owner,

11-3 from using any vehicular or pedestrian ingress or egress to go to or from

11-4 the unit, including any area used for parking.

11-5 [2.] (b) Require the unit’s owner, or the tenant or guest of the unit’s

11-6 owner, to pay a fine [not to exceed $50 for each failure to comply, unless

11-7 the violation is of a type that threatens the health and welfare of the

11-8 common-interest community. The] for each failure to comply that does

11-9 not threaten the health and welfare of the common-interest community.

11-10 The fine must be commensurate with the severity of the violation, but

11-11 must not exceed $100 for each violation or a total amount of $500,

11-12 whichever is less.

11-13 2. If a fine is imposed pursuant to subsection 1 and the violation is

11-14 not cured within 14 days or a longer period as may be established by the

11-15 executive board, the violation shall be deemed a continuing violation.

11-16 Thereafter, the executive board may impose an additional fine for the

11-17 violation for each 7-day period or portion thereof that the violation is not

11-18 cured. Any additional fine may be imposed without notice and an

11-19 opportunity to be heard.

11-20 3. Except as otherwise provided in subsection 2, the imposition of

11-21 [such] a fine pursuant to this section must comply with the requirements of

11-22 subsection 6 of NRS 116.31065.

11-23 Sec. 19. NRS 116.31034 is hereby amended to read as follows:

11-24 116.31034 1. Except as otherwise provided in subsection 5 of NRS

11-43 each unit’s owner of his eligibility to serve as a member of the executive

12-1 board. Each unit’s owner who is qualified to serve as a member of the

12-2 executive board may have his name placed on the ballot along with the

12-3 names of the nominees selected by the members of the executive board or

12-4 a nominating committee established by the association.

12-5 4. An officer, employee, agent or director of a corporate owner of a

12-6 unit, a trustee or designated beneficiary of a trust that owns a unit, a partner

12-7 of a partnership that owns a unit, and a fiduciary of an estate that owns a

12-8 unit may be an officer or member of the executive board [.] if he is

12-9 otherwise qualified for that office. In all events where the person serving

12-10 or offering to serve as an officer or member of the executive board is not

12-11 the record owner, he shall file proof [of authority] in the records of the

12-12 association [.

12-13 3.] that:

12-14 (a) He is associated with the corporate owner, trust, partnership or

12-15 estate as required by this subsection; and

12-16 (b) Identifies the unit or units owned by the corporate owner, trust

12-17 partnership or estate.

12-18 5. The election of any member of the executive board must be

12-19 conducted by secret written ballot. The secretary or other officer specified

12-20 in the bylaws of the association shall cause to be sent prepaid by United

12-21 States mail to the mailing address of each unit within the common-

12-22 interest community or to any other mailing address designated in writing

12-23 by the unit’s owner, a secret ballot and a return envelope.

12-24 6. Each member of the executive board shall, [at the time of] within 30

12-25 days after his appointment or election, certify in writing that he has read

12-26 and understands the governing documents of the association and the

12-27 provisions of this chapter [.] to the best of his ability.

12-28 Sec. 20. (Deleted by amendment.)

12-29 Sec. 21. NRS 116.31038 is hereby amended to read as follows:

12-30 116.31038 Within 30 days after units’ owners other than the declarant

12-42 accordance with generally accepted accounting principles.

13-1 3. A complete study of the reserves of the association, conducted by a

13-2 person qualified by training and experience to conduct such a study. At

13-3 the time the control of the declarant ends, he shall:

13-4 (a) Except as otherwise provided in this paragraph, deliver to the

13-5 association a reserve account that contains the declarant’s share of the

13-6 amounts then due, and control of the account. If, at that time, the

13-7 declarant has failed to pay his share of the amounts due, the executive

13-8 board shall authorize the declarant to pay the deficiency in installments

13-9 for a period of 3 years, unless the declarant and the executive board

13-10 agree to a shorter period.

13-11 (b) Disclose, in writing, the amount by which he has subsidized the

13-12 association’s dues on a per unit or per lot basis.

13-13 4. The association’s money or control thereof.

13-14 [4.] 5. All of the declarant’s tangible personal property that has been

13-15 represented by the declarant as property of the association or, unless the

13-16 declarant has disclosed in the public offering statement that all such

13-17 personal property used in the common-interest community will remain the

13-18 declarant’s property, all of the declarant’s tangible personal property that is

13-19 necessary for, and has been used exclusively in, the operation and

13-20 enjoyment of the common elements, and inventories of these properties.

13-21 [5.] 6. A copy of any plans and specifications used in the construction

13-22 of the improvements in the common-interest community which were

13-23 completed within 2 years before the declaration was recorded.

13-24 [6.] 7. All insurance policies then in force, in which the units’ owners,

13-25 the association, or its directors and officers are named as insured persons.

13-26 [7.] 8. Copies of any certificates of occupancy that may have been

13-27 issued with respect to any improvements comprising the common-interest

13-28 community other than units in a planned community.

13-29 [8.] 9. Any renewable permits and approvals issued by governmental

13-30 bodies applicable to the common-interest community which are in force

13-31 and any other permits and approvals so issued and applicable which are

13-32 required by law to be kept on the premises of the community.

13-33 [9.] 10. Written warranties of the contractor, subcontractors, suppliers

13-34 and manufacturers that are still effective.

13-35 [10.] 11. A roster of owners and mortgagees of units and their

13-36 addresses and telephone numbers, if known, as shown on the declarant’s

13-37 records.

13-38 [11.] 12. Contracts of employment in which the association is a

13-39 contracting party.

13-40 [12.] 13. Any contract for service in which the association is a

13-41 contracting party or in which the association or the units’ owners have any

13-42 obligation to pay a fee to the persons performing the services.

14-1 Sec. 22. NRS 116.31065 is hereby amended to read as follows:

14-2 116.31065 The rules adopted by an association:

14-22 amendment to the rule.

14-23 Sec. 23. NRS 116.3108 is hereby amended to read as follows:

14-24 116.3108 1. A meeting of the units’ owners of an association must be

14-42 must include notification of the right of a unit’s owner to:

15-1 (a) Have a copy of the minutes or a summary of the minutes of the

15-2 meeting distributed to him upon request [if he pays] and, if required by the

15-3 executive board, upon payment to the association of the cost of making the

15-4 distribution.

15-5 (b) Speak to the association or executive board, unless the executive

15-6 board is meeting in executive session.

15-7 3. The agenda for [the] a meeting of the units’ owners must consist of:

15-8 (a) A clear and complete statement of the topics scheduled to be

15-9 considered during the meeting, including, without limitation, any proposed

15-10 amendment to the declaration or bylaws, any fees or assessments to be

15-11 imposed or increased by the association, any budgetary changes and any

15-12 proposal to remove an officer or member of the executive board.

15-13 (b) A list describing the items on which action may be taken and clearly

15-14 denoting that action may be taken on those items. In an emergency, the

15-15 units’ owners may take action on an item which is not listed on the

15-16 agenda as an item on which action may be taken.

15-17 (c) A period devoted to comments by units’ owners and discussion of

15-18 those comments. Except in emergencies, no action may be taken upon a

15-19 matter raised under this item of the agenda until the matter itself has been

15-20 specifically included on an agenda as an item upon which action may be

15-21 taken pursuant to paragraph (b).

15-22 4. If the association adopts a policy imposing a fine on a unit’s owner

15-23 for the violation of the declaration, bylaws or other rules established by the

15-24 association, the secretary or other officer specified in the bylaws shall

15-25 prepare and cause to be hand-delivered or sent prepaid by United States

15-26 mail to the mailing address of each unit or to any other mailing address

15-27 designated in writing by the unit’s owner, a schedule of the fines that may

15-28 be imposed for those violations.

15-29 5. Not more than 30 days after any meeting [,] of the units’ owners,

15-30 the secretary or other officer specified in the bylaws shall cause the minutes

15-31 or a summary of the minutes of the meeting to be made available to the

15-32 units’ owners. A copy of the minutes or a summary of the minutes must be

15-33 provided to any unit’s owner who pays the association the cost of providing

15-34 the copy to him.

15-35 6. As used in this section, "emergency" means any occurrence or

15-36 combination of occurrences that:

15-37 (a) Could not have been reasonably foreseen;

15-38 (b) Affects the health, welfare and safety of the units’ owners of the

15-39 association;

15-40 (c) Requires the immediate attention of, and possible action by, the

15-41 executive board; and

15-42 (d) Makes it impracticable to comply with the provisions of subsection

15-43 2 or 3.

16-1 Sec. 24. NRS 116.31085 is hereby amended to read as follows:

16-2 116.31085 1. Except as otherwise provided in this section, a unit’s

16-36 executive session.

16-37 Sec. 25. NRS 116.311 is hereby amended to read as follows:

16-38 116.311 1. If only one of several owners of a unit is present at a

16-43 provides otherwise. There is majority agreement if any one of the owners

17-1 cast the votes allocated to that unit without protest made promptly to the

17-2 person presiding over the meeting by any of the other owners of the unit.

17-3 2. [Votes] Except as otherwise provided in this section, votes

17-4 allocated to a unit may be cast pursuant to a proxy executed by a unit’s

17-5 owner. A unit’s owner may give a proxy only to a member of his

17-6 immediate family, a tenant of the unit’s owner who resides in the

17-7 common-interest community or another unit’s owner who resides in the

17-8 common-interest community. If a unit is owned by more than one person,

17-9 each owner of the unit may vote or register protest to the casting of votes

17-10 by the other owners of the unit through an executed proxy. A unit’s owner

17-11 may revoke a proxy given pursuant to this section only by actual notice of

17-12 revocation to the person presiding over a meeting of the association. A

17-13 proxy is void if [it] :

17-14 (a) It is not dated or purports to be revocable without notice [.] ;

17-15 (b) It does not designate the votes that must be cast on behalf of the

17-16 unit’s owner who executed the proxy; or

17-17 (c) The holder of the proxy does not disclose at the beginning of the

17-18 meeting for which the proxy is executed the number of proxies pursuant

17-19 to which he will be casting votes and the voting instructions received for

17-20 each proxy.

17-21 A proxy terminates [one year after its date, unless it specifies a shorter

17-22 term.] immediately after the conclusion of the meeting for which it was

17-23 executed. A vote may not be cast pursuant to a proxy for the election of a

17-24 member of the executive board of an association.

17-25 3. Only a vote cast in person, by secret ballot or by proxy may be

17-26 counted.

17-27 4. If the declaration requires that votes on specified matters affecting

17-28 the common-interest community be cast by lessees rather than units’

17-29 owners of leased units:

17-30 (a) The provisions of subsections 1 and 2 apply to lessees as if they were

17-31 units’ owners;

17-32 (b) Units’ owners who have leased their units to other persons may not

17-33 cast votes on those specified matters; and

17-34 (c) Lessees are entitled to notice of meetings, access to records, and

17-35 other rights respecting those matters as if they were units’ owners.

17-36 Units’ owners must also be given notice, in the manner provided in NRS

17-37 116.3108, of all meetings at which lessees are entitled to vote.

17-38 [4.] 5. No votes allocated to a unit owned by the association may be

17-39 cast.

17-40 6. Votes cast for the election of a member of the executive board of

17-41 an association must be counted in public.

18-1 Sec. 26. NRS 116.31139 is hereby amended to read as follows:

18-2 116.31139 1. An association may employ a person engaged in

18-43 (f) A declarant.

19-1 (g) A receiver.

19-2 [4.] (h) A person who is engaged in property management for a

19-3 common-interest community on October 1, 1999, and is granted an

19-4 exemption from the requirements of subsection 2 by the administrator

19-5 upon demonstration that he is qualified and competent to engage in

19-6 property management for a common-interest community.

19-7 5. As used in this section, "property management" means the physical,

19-8 administrative or financial maintenance and management of real property,

19-9 or the supervision of those activities for a fee, commission or other

19-10 compensation or valuable consideration.

19-11 Sec. 27. NRS 116.3115 is hereby amended to read as follows:

19-12 116.3115 1. Until the association makes an assessment for common

19-43 the units must be assessed exclusively against the units benefited; and

20-1 (c) The costs of insurance must be assessed in proportion to risk and the

20-2 costs of utilities must be assessed in proportion to usage.

20-3 5. Assessments to pay a judgment against the association may be made

20-4 only against the units in the common-interest community at the time the

20-5 judgment was entered, in proportion to their liabilities for common

20-6 expenses.

20-7 6. If any common expense is caused by the misconduct of any unit’s

20-8 owner, the association may assess that expense exclusively against his unit.

20-9 7. If liabilities for common expenses are reallocated, assessments for

20-10 common expenses and any installment thereof not yet due must be

20-11 recalculated in accordance with the reallocated liabilities.

20-12 8. The association shall provide written notice to the owner of each

20-13 unit of a meeting at which an assessment for a capital improvement or the

20-14 commencement of a civil action is to be considered or action is to be taken

20-15 on such an assessment at least 21 calendar days before the meeting. Except

20-16 as otherwise provided in this subsection, the association may commence a

20-17 civil action only upon a vote [or agreement] of the owners of units to which

20-18 at least a majority of the votes of the members of the association are

20-19 allocated [.] , taken at a meeting of the units’ owners of the association.

20-20 The provisions of this subsection do not apply to a civil action that is

20-21 commenced:

20-22 (a) By an association for a time-share project governed by the

20-23 provisions of chapter 119A of NRS;

20-24 (b) To enforce the payment of an assessment;

20-25 (c) To enforce the declaration, bylaws or rules of the association;

20-26 (d) To proceed with a counterclaim; or

20-27 (e) To protect the health, safety and welfare of the members of the

20-28 association [.] from an imminent risk of loss of life or serious and

20-29 permanent damage to property. If a civil action is commenced pursuant

20-30 to this paragraph, the action must be ratified within 30 days after the

20-31 commencement of the action upon a vote of the owners of units to which

20-32 at least a majority of the votes of the members of the association are

20-33 allocated. If the action is not so ratified, the association shall file a

20-34 special motion to dismiss the action and the court shall dismiss the action

20-35 without prejudice for failure to comply with this paragraph.

20-36 9. A vote taken to approve or ratify the commencement of a civil

20-37 action is void unless the notice of the meeting at which the vote is to be

20-38 taken includes an explanation prepared by an attorney who is authorized

20-39 to practice law in this state of:

20-40 (a) The estimated costs of the civil action, including reasonable

20-41 attorney’s fees;

20-42 (b) The potential benefits of the civil action and the potential adverse

20-43 consequences if the decision is not favorable to the association,

21-1 including, without limitation, the potential liability of the association for

21-2 the payment of attorney’s fees and costs;

21-3 (c) The possible effects of the civil action on the value of property

21-4 located within the common-interest community; and

21-5 (d) Such other information as may be required by the administrator

21-6 including, without limitation, disclosures that are required to be made

21-7 upon the sale of the property.

21-8 Sec. 28. NRS 116.31155 is hereby amended to read as follows:

21-9 116.31155 1. An association [that is not a master association and

21-32 an association organized pursuant to NRS 116.3101..

21-33 Sec. 28.5. NRS 116.31155 is hereby amended to read as follows:

21-34 116.31155 1. An association shall:

21-35 (a) If the association is required to pay the fee imposed by NRS 78.150

21-36 or 82.193, pay to the [secretary of state at the time it is required to pay the

21-37 fee imposed by those sections] administrator a fee established by

21-38 regulation of the administrator for every unit in the association.

21-39 (b) If the association is organized as a trust or partnership, pay to the

21-40 administrator a fee established by regulation of the administrator for each

21-41 unit in the association. [The fee must be paid on or before January 1 of

21-42 each year.]

21-43 2. The fees required to be paid pursuant to this section must be:

22-1 (a) Paid at such times as are established by the administrator.

22-2 (b) Deposited with the state treasurer for credit to the account for the

22-3 ombudsman for owners in common-interest communities created pursuant

22-4 to NRS 116.1117.

22-5 [(b)] (c) Established on the basis of the actual cost of administering the

22-6 office of the ombudsman for owners in common-interest communities and

22-7 not on a basis which includes any subsidy for the office. In no event may

22-8 the fees required to be paid pursuant to this section exceed $3 per unit.

22-9 3. A unit’s owner may not be required to pay any portion of the fees

22-10 required to be paid pursuant to this section to a master association and to an

22-11 association organized pursuant to NRS 116.3101.

22-12 4. Upon the payment of the fees required by this section, the

22-13 administrator shall provide to the association evidence that it paid the

22-14 fees in compliance with this section.

22-15 Sec. 29. NRS 116.31162 is hereby amended to read as follows:

22-16 116.31162 1. Except as otherwise provided in subsection 4, in a

22-42 (a) The day on which the notice of default is recorded; or

23-1 (b) The day on which a copy of the notice of default is mailed by

23-2 certified or registered mail, return receipt requested, to the unit’s owner or

23-3 his successor in interest at his address if known, [otherwise to] and at the

23-4 address of the unit.

23-5 4. The association may not foreclose a lien by sale for the assessment

23-6 of a fine for a violation of the declaration, bylaws, rules or regulations of

23-7 the association, unless the violation is of a type that threatens the health

23-8 [and] , safety or welfare of the residents of the common-interest

23-9 community.

23-10 Sec. 30. NRS 116.4101 is hereby amended to read as follows:

23-11 116.4101 1. NRS 116.4101 to 116.412, inclusive, apply to all units

23-36 described in NRS 116.1203.]

23-37 Sec. 31. NRS 116.4103 is hereby amended to read as follows:

23-38 116.4103 1. Except as otherwise provided in NRS 116.41035, a

23-43 either a condominium, cooperative or planned community.

24-1 (b) A general description of the common-interest community, including

24-2 to the extent possible, the types, number and declarant’s schedule of

24-3 commencement and completion of construction of buildings, and amenities

24-4 that the declarant anticipates including in the common-interest community.

24-5 (c) The estimated number of units in the common-interest community.

24-6 (d) Copies of the declaration, bylaws, and any rules or regulations of the

24-7 association, but a plat or plan is not required.

24-8 (e) A current financial statement and projected budget for the

24-9 association, either within or as an exhibit to the public offering statement,

24-10 for 1 year after the date of the first conveyance to a purchaser, and

24-11 thereafter the current budget of the association. The budget must include,

24-12 without limitation:

24-13 (1) A statement of the amount included in the budget as a reserve for

24-14 repairs [and replacement;] , replacement and restoration; and

24-15 (2) The projected monthly assessment for common expenses for each

24-16 type of unit, including the amount established as a reserve pursuant to NRS

24-17 116.3115.

24-18 (f) A description of any services or subsidies being provided by the

24-19 declarant or an affiliate of the declarant, not reflected in the budget.

24-20 (g) Any initial or special fee due from the purchaser at closing, together

24-21 with a description of the purpose and method of calculating the fee.

24-22 (h) The terms and significant limitations of any warranties provided by

24-23 the declarant, including statutory warranties and limitations on the

24-24 enforcement thereof or on damages.

24-25 (i) A statement that unless the purchaser or his agent has personally

24-26 inspected the unit, the purchaser may cancel, by written notice, his contract

24-27 for purchase until midnight of the fifth calendar day following the date of

24-28 execution of the contract, and the contract must contain a provision to that

24-29 effect.

24-30 (j) A statement of any unsatisfied judgments or pending suits against the

24-31 association, and the status of any pending suits material to the common-

24-32 interest community of which a declarant has actual knowledge.

24-33 (k) Any current or expected fees or charges to be paid by units’ owners

24-34 for the use of the common elements and other facilities related to the

24-35 common-interest community.

24-36 (l) The information statement set forth in NRS 116.41095.

24-37 2. A declarant is not required to revise a public offering statement

24-38 more than once each calendar quarter, if the following warning is given

24-39 prominence in the statement: "THIS PUBLIC OFFERING STATEMENT

24-40 IS CURRENT AS OF (insert a specified date). RECENT

24-41 DEVELOPMENTS REGARDING (here refer to particular provisions of

24-42 NRS 116.4103 and 116.4105) MAY NOT BE REFLECTED IN THIS

24-43 STATEMENT."

25-1 Sec. 32. NRS 116.41095 is hereby amended to read as follows:

25-2 116.41095 The information statement required by NRS 116.4103 and