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. Money in the reserve account of an association required by

3-19 paragraph (b) of subsection 2 of NRS 116.3115 may not be withdrawn

3-20 without the signatures of at least two members of the executive board or

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

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

3-23 Sec. 6. 1. A meeting of the executive board of an association must

3-24 be held at least once every 90 days.

3-25 2. Except in an emergency or unless the bylaws of an association

3-26 require a longer period of notice, the secretary or other officer specified

3-27 in the bylaws of the association shall, not less than 10 days before the

3-28 date of a meeting of the executive board, cause notice of the meeting to

3-29 be given to the units’ owners. Such notice must be:

3-30 (a) Sent prepaid by United States mail to the mailing address of each

3-31 unit within the common-interest community or to any other mailing

3-32 address designated in writing by the unit’s owner; or

3-33 (b) Published in a newsletter or other similar publication that is

3-34 circulated to each unit’s owner.

3-35 3. In an emergency, the secretary or other officer specified in the

3-36 bylaws of the association shall, if practicable, cause notice of the meeting

3-37 to be sent prepaid by United States mail to the mailing address of each

3-38 unit within the common-interest community. If delivery of the notice in

3-39 this manner is impracticable, the notice must be hand-delivered to each

3-40 unit within the common-interest community or posted in a prominent

3-41 place or places within the common elements of the association.

3-42 4. The notice of a meeting of the executive board of an association

3-43 must state the time and place of the meeting and include a copy of the

4-1 agenda for the meeting or the date on which and the locations where

4-2 copies of the agenda may be conveniently obtained by the units’ owners

4-3 of the association. The notice must include notification of the right of a

4-4 unit’s owner to:

4-5 (a) Have a copy of the minutes or a summary of the minutes of the

4-6 meeting distributed to him upon request and, if required by the executive

4-7 board, upon payment to the association of the cost of making the

4-8 distribution.

4-9 (b) Speak to the association or executive board, unless the executive

4-10 board is meeting in executive session.

4-11 5. The agenda of the meeting of the executive board of an

4-12 association must comply with the provisions of subsection 3 of NRS

4-13 116.3108. The period required to be devoted to comments by units’

4-14 owners and discussion of those comments must be scheduled for the

4-15 beginning of each meeting. In an emergency, the executive board may

4-16 take action on an item which is not listed on the agenda as an item on

4-17 which action may be taken.

4-18 6. At least once every 90 days, unless the declaration or bylaws of the

4-19 association impose more stringent standards, the executive board shall

4-20 review at one of its meetings:

4-21 (a) A current reconciliation of the operating account of the

4-22 association;

4-23 (b) A current reconciliation of the reserve account of the association;

4-24 (c) The actual revenues and expenses for the reserve account,

4-25 compared to the budget for that account for the current year;

4-26 (d) The latest account statements prepared by the financial institutions

4-27 in which the accounts of the association are maintained;

4-28 (e) An income and expense statement, prepared on at least a quarterly

4-29 basis, for the operating and reserve accounts of the association; and

4-30 (f) The current status of any civil action or claim submitted to

4-31 arbitration or mediation in which the association is a party.

4-32 7. The minutes of a meeting of the executive board of an association

4-33 must be made available to the units’ owners in accordance with the

4-34 provisions of subsection 5 of NRS 116.3108.

4-35 8. As used in this section, "emergency" means any occurrence or

4-36 combination of occurrences that:

4-37 (a) Could not have been reasonably foreseen;

4-38 (b) Affects the health, welfare and safety of the units’ owners of the

4-39 association;

4-40 (c) Requires the immediate attention of, and possible action by, the

4-41 executive board; and

4-42 (d) Makes it impracticable to comply with the provisions of subsection

4-43 2 or 5.

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

5-2 required by NRS 116.31155, register with the ombudsman for owners in

5-3 common-interest communities on a form prescribed by the ombudsman.

5-4 2. The form for registration must include, without limitation, the

5-5 information required to be maintained pursuant to paragraph (d) of

5-6 subsection 4 of NRS 116.1116.

5-7 Sec. 8. 1. To carry out the purposes of this chapter, the real estate

5-8 commission, or any member thereof, may issue subpoenas to compel the

5-9 attendance of witnesses and the production of books, records and other

5-10 papers.

5-11 2. If any person fails to comply with a subpoena issued by the

5-12 commission pursuant to this section within 10 days after its issuance, the

5-13 commission may petition the district court for an order of the court

5-14 compelling compliance with the subpoena.

5-15 3. Upon such a petition, the court shall enter an order directing the

5-16 person subpoenaed to appear before the court at a time and place to be

5-17 fixed by the court in its order, the time to be not more than 10 days after

5-18 the date of the order, and show cause why he has not complied with the

5-19 subpoena. A certified copy must be served upon the person subpoenaed.

5-20 4. If it appears to the court that the subpoena was regularly issued by

5-21 the commission, the court shall enter an order compelling compliance

5-22 with the subpoena, and upon failure to obey the order the person shall be

5-23 dealt with as for contempt of court.

5-24 Sec. 9. 1. Except as otherwise provided in this subsection, the

5-25 executive board of an association shall, upon the written request of a

5-26 unit’s owner, make available the books, records and other papers of the

5-27 association for review during the regular working hours of the

5-28 association. The provisions of this subsection do not apply to:

5-29 (a) The personnel records of the employees of the association; and

5-30 (b) The records of the association relating to another unit’s owner.

5-31 2. If the executive board refuses to allow a unit’s owner to review the

5-32 books, records or other papers of the association, the ombudsman for

5-33 owners in common-interest communities may:

5-34 (a) On behalf of the unit’s owner and upon written request, review the

5-35 books, records or other papers of the association during the regular

5-36 working hours of the association; and

5-37 (b) If he is denied access to the books, records or other papers, request

5-38 the commission to issue a subpoena for their production.

5-39 Secs. 10 and 11. (Deleted by amendment.)

5-40 Sec. 12. If any change is made to the governing documents of an

5-41 association, the secretary or other officer specified in the bylaws of the

5-42 association shall, within 30 days after the change is made, prepare and

5-43 cause to be hand-delivered or sent prepaid by United States mail to the

6-1 mailing address of each unit or to any other mailing address designated

6-2 in writing by the unit’s owner, a copy of the change that was made.

6-3 Sec. 13. 1. The executive board of an association shall maintain

6-4 and make available for review at the business office of the association or

6-5 other suitable location:

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

6-7 (b) The budgets of the association required to be prepared pursuant to

6-8 section 3 of this act; and

6-9 (c) The study of the reserves of the association required to be

6-10 conducted pursuant to section 4 of this act.

6-11 2. The executive board shall provide a copy of any of the records

6-12 required to be maintained pursuant to subsection 1 to a unit’s owner or

6-13 the ombudsman for owners in common-interest communities within 14

6-14 days after receiving a written request therefor. The executive board may

6-15 charge a fee to cover the actual costs of preparing a copy, but not to

6-16 exceed 25 cents per page.

6-17 Sec. 14. NRS 116.1116 is hereby amended to read as follows:

6-18 116.1116 1. The office of the ombudsman for owners in common-

6-37 (d) Compile and maintain a registration of each association organized

6-38 within the state which includes, without limitation:

6-39 (1) The name, address and telephone number of the association;

6-40 (2) The name of the person engaged in property management for

6-41 the common-interest community or the name of the person who manages

6-42 the property at the site of the common-interest community;

7-1 (3) The names, mailing addresses and telephone numbers of the

7-2 members of the executive board of the association;

7-3 (4) The name of the declarant;

7-4 (5) The number of units in the common-interest community; and

7-5 (6) The total annual assessment made by the association.

7-6 Sec. 15. NRS 116.1117 is hereby amended to read as follows:

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

7-17 common-interest communities [.] and for the payment of fees for a

7-18 mediator or an arbitrator pursuant to NRS 38.330.

7-19 Sec. 16. NRS 116.1201 is hereby amended to read as follows:

7-20 116.1201 1. Except as otherwise provided in this section and NRS

7-41 3. The provisions of this chapter do not:

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

8-2 1992, from providing for separate classes of voting for the units’ owners

8-3 of the association;

8-4 (b) Require a common-interest community created before January 1,

8-5 1992, to comply with the provisions of NRS 116.2101 to 116.2122,

8-6 inclusive;

8-7 (c) Invalidate any assessments that were imposed on or before
8-8 October 1, 1999, by a common-interest community created before

8-9 January 1, 1992; or

8-10 (d) Prohibit a common-interest community created before January 1,

8-11 1992, from providing for a representative form of government.

8-12 4. The provisions of chapters 117 and 278A of NRS do not apply to

8-13 common-interest communities . [created on or after January 1, 1992.]

8-14 5. For the purposes of this section, the administrator shall establish,

8-15 by regulation, the criteria for determining whether an association is

8-16 created for the limited purpose of maintaining the landscape of the

8-17 common elements of a common-interest community, maintaining

8-18 facilities for flood control or maintaining a rural agricultural residential

8-19 common-interest community.

8-20 Sec. 16.2. NRS 116.1203 is hereby amended to read as follows:

8-21 116.1203 1. Except as otherwise provided in subsection 2, if a

8-22 planned community [:

8-23 (a) Contains] contains no more than 12 units and is not subject to any

8-24 developmental rights , [; or

8-25 (b) Provides, in its declaration, that the annual average liability for

8-26 common expenses of all units restricted to residential purposes, exclusive

8-27 of optional users’ fees and any insurance premiums paid by the association,

8-28 may not exceed $500 per unit,] it is subject only to NRS 116.1105,

8-29 116.1106 and 116.1107 unless the declaration provides that this entire

8-30 chapter is applicable.

8-31 2. Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138,

8-32 NRS 116.3101 to 116.3119, inclusive, and 116.11031 to 116.110393,

8-33 inclusive, to the extent necessary in construing any of those sections, apply

8-34 to a residential planned community containing more than six units.

8-35 Sec. 16.5. NRS 116.1206 is hereby amended to read as follows:

8-36 116.1206 1. Any declaration, bylaw or other governing document

8-37 of a common-interest community created before January 1, 1992, that

8-38 does not conform to the provisions of this chapter shall be deemed to

8-39 conform with those provisions by operation of law, and any such

8-40 declaration, bylaw or other governing document is not required to be

8-41 amended to conform to those provisions.

8-42 2. In the case of amendments to the declaration, bylaws or plats and

8-43 plans of any common-interest community created before January 1, 1992:

9-1 (a) If the result accomplished by the amendment was permitted by law

9-2 before January 1, 1992, the amendment may be made either in accordance

9-3 with that law, in which case that law applies to that amendment, or it may

9-4 be made under this chapter; and

9-5 (b) If the result accomplished by the amendment is permitted by this

9-6 chapter, and was not permitted by law before January 1, 1992, the

9-7 amendment may be made under this chapter.

9-8 [2.] 3. An amendment to the declaration, bylaws or plats and plans

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

9-10 conformity with the applicable provisions of chapter 117 or 278A of NRS

9-11 and with the procedures and requirements specified by those instruments. If

9-12 an amendment grants to any person any rights, powers or privileges

9-13 permitted by this chapter, all correlative obligations, liabilities and

9-14 restrictions in this chapter also apply to that person.

9-15 Sec. 17. NRS 116.3102 is hereby amended to read as follows:

9-16 116.3102 1. Except as otherwise provided in subsection 2, and

9-42 or operation of the common elements, other than limited common elements

10-1 described in subsections 2 and 4 of NRS 116.2102, and for services

10-2 provided to units’ owners;

10-3 (k) Impose charges for late payment of assessments and, except as

10-4 otherwise provided in NRS 116.31031, after notice and an opportunity to

10-5 be heard, levy reasonable fines for violations of the declaration, bylaws,

10-6 rules and regulations of the association;

10-7 (l) Impose reasonable charges for the preparation and recordation of

10-8 amendments to the declaration, the information required by NRS 116.4109

10-9 or statements of unpaid assessments;

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

10-11 and maintain directors’ and officers’ liability insurance;

10-12 (n) Assign its right to future income, including the right to receive

10-13 assessments for common expenses, but only to the extent the declaration

10-14 expressly so provides;

10-15 (o) Exercise any other powers conferred by the declaration or bylaws;

10-16 (p) Exercise all other powers that may be exercised in this state by legal

10-17 entities of the same type as the association;

10-18 (q) Direct the removal of vehicles improperly parked on property owned

10-19 or leased by the association, pursuant to NRS 487.038; and

10-20 (r) Exercise any other powers necessary and proper for the governance

10-21 and operation of the association.

10-22 2. The declaration may not impose limitations on the power of the

10-23 association to deal with the declarant which are more restrictive than the

10-24 limitations imposed on the power of the association to deal with other

10-25 persons.

10-26 Sec. 18. NRS 116.31031 is hereby amended to read as follows:

10-27 116.31031 1. If a unit’s owner, or a tenant or guest of a unit’s owner,

10-43 The fine must be commensurate with the severity of the violation, but

11-1 must not exceed $100 for each violation or a total amount of $500,

11-2 whichever is less.

11-3 2. If a fine is imposed pursuant to subsection 1 and the violation is

11-4 not cured within 14 days or a longer period as may be established by the

11-5 executive board, the violation shall be deemed a continuing violation.

11-6 Thereafter, the executive board may impose an additional fine for the

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

11-8 cured. Any additional fine may be imposed without notice and an

11-9 opportunity to be heard.

11-10 3. Except as otherwise provided in subsection 2, the imposition of

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

11-12 subsection 6 of NRS 116.31065.

11-13 Sec. 19. NRS 116.31034 is hereby amended to read as follows:

11-14 116.31034 1. Except as otherwise provided in subsection 5 of NRS

11-43 estate as required by this subsection; and

12-1 (b) Identifies the unit or units owned by the corporate owner, trust

12-2 partnership or estate.

12-3 5. The election of any member of the executive board must be

12-4 conducted by secret written ballot. The secretary or other officer specified

12-5 in the bylaws of the association shall cause to be sent prepaid by United

12-6 States mail to the mailing address of each unit within the common-

12-7 interest community or to any other mailing address designated in writing

12-8 by the unit’s owner, a secret ballot and a return envelope.

12-9 6. Each member of the executive board shall, [at the time of] within 30

12-10 days after his appointment or election, certify in writing that he has read

12-11 and understands the governing documents of the association and the

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

12-13 Sec. 20. (Deleted by amendment.)

12-14 Sec. 21. NRS 116.31038 is hereby amended to read as follows:

12-15 116.31038 Within 30 days after units’ owners other than the declarant

12-43 4. The association’s money or control thereof.

13-1 [4.] 5. All of the declarant’s tangible personal property that has been

13-2 represented by the declarant as property of the association or, unless the

13-3 declarant has disclosed in the public offering statement that all such

13-4 personal property used in the common-interest community will remain the

13-5 declarant’s property, all of the declarant’s tangible personal property that is

13-6 necessary for, and has been used exclusively in, the operation and

13-7 enjoyment of the common elements, and inventories of these properties.

13-8 [5.] 6. A copy of any plans and specifications used in the construction

13-9 of the improvements in the common-interest community which were

13-10 completed within 2 years before the declaration was recorded.

13-11 [6.] 7. All insurance policies then in force, in which the units’ owners,

13-12 the association, or its directors and officers are named as insured persons.

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

13-14 issued with respect to any improvements comprising the common-interest

13-15 community other than units in a planned community.

13-16 [8.] 9. Any renewable permits and approvals issued by governmental

13-17 bodies applicable to the common-interest community which are in force

13-18 and any other permits and approvals so issued and applicable which are

13-19 required by law to be kept on the premises of the community.

13-20 [9.] 10. Written warranties of the contractor, subcontractors, suppliers

13-21 and manufacturers that are still effective.

13-22 [10.] 11. A roster of owners and mortgagees of units and their

13-23 addresses and telephone numbers, if known, as shown on the declarant’s

13-24 records.

13-25 [11.] 12. Contracts of employment in which the association is a

13-26 contracting party.

13-27 [12.] 13. Any contract for service in which the association is a

13-28 contracting party or in which the association or the units’ owners have any

13-29 obligation to pay a fee to the persons performing the services.

13-30 Sec. 22. NRS 116.31065 is hereby amended to read as follows:

13-31 116.31065 The rules adopted by an association:

13-41 documents of the association.

14-1 5. Must be uniformly enforced under the same or similar circumstances

14-2 against all units’ owners. Any rule that is not so uniformly enforced may

14-3 not be enforced against any unit’s owner.

14-4 6. May be enforced by the assessment of a fine only if:

14-5 (a) The person alleged to have violated the rule has received notice of

14-6 the alleged violation [and has been given the] that informs him of his

14-7 opportunity to request a hearing on the alleged violation.

14-8 (b) At least 30 days before the alleged violation, the person alleged to

14-9 have violated the rule was given written notice of the rule or any

14-10 amendment to the rule.

14-11 Sec. 23. NRS 116.3108 is hereby amended to read as follows:

14-12 116.3108 1. A meeting of the units’ owners of an association must be

14-42 proposal to remove an officer or member of the executive board.

15-1 (b) A list describing the items on which action may be taken and clearly

15-2 denoting that action may be taken on those items. In an emergency, the

15-3 units’ owners may take action on an item which is not listed on the

15-4 agenda as an item on which action may be taken.

15-5 (c) A period devoted to comments by units’ owners and discussion of

15-6 those comments. Except in emergencies, no action may be taken upon a

15-7 matter raised under this item of the agenda until the matter itself has been

15-8 specifically included on an agenda as an item upon which action may be

15-9 taken pursuant to paragraph (b).

15-10 4. If the association adopts a policy imposing a fine on a unit’s owner

15-11 for the violation of the declaration, bylaws or other rules established by the

15-12 association, the secretary or other officer specified in the bylaws shall

15-13 prepare and cause to be hand-delivered or sent prepaid by United States

15-14 mail to the mailing address of each unit or to any other mailing address

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

15-16 be imposed for those violations.

15-17 5. Not more than 30 days after any meeting [,] of the units’ owners,

15-18 the secretary or other officer specified in the bylaws shall cause the minutes

15-19 or a summary of the minutes of the meeting to be made available to the

15-20 units’ owners. A copy of the minutes or a summary of the minutes must be

15-21 provided to any unit’s owner who pays the association the cost of providing

15-22 the copy to him.

15-23 6. As used in this section, "emergency" means any occurrence or

15-24 combination of occurrences that:

15-25 (a) Could not have been reasonably foreseen;

15-26 (b) Affects the health, welfare and safety of the units’ owners of the

15-27 association;

15-28 (c) Requires the immediate attention of, and possible action by, the

15-29 executive board; and

15-30 (d) Makes it impracticable to comply with the provisions of subsection

15-31 2 or 3.

15-32 Sec. 24. NRS 116.31085 is hereby amended to read as follows:

15-33 116.31085 1. Except as otherwise provided in this section, a unit’s

15-43 (b) Discuss matters relating to personnel; or

16-1 (c) Discuss a violation of the governing documents [of the association]

16-2 alleged to have been committed by a unit’s owner [.] , including, without

16-3 limitation, the failure to pay an assessment, except as otherwise provided

16-4 in subsection 3.

16-5 3. An executive board shall meet in executive session to hold a

16-6 hearing on an alleged violation of the governing documents unless the

16-7 unit’s owner who allegedly committed the violation requests in writing

16-8 that the hearing be conducted by the executive board at an open meeting.

16-9 The unit’s owner who is alleged to have committed the violation may

16-10 attend the hearing and testify concerning the alleged violation, but may

16-11 be excluded by the executive board from any other portion of the

16-12 hearing, including, without limitation, the deliberations of the executive

16-13 board.

16-14 4. Except as otherwise provided in this subsection, any matter

16-15 discussed in executive session must be generally noted in the minutes of the

16-16 meeting of the executive board. The executive board shall maintain

16-17 [detailed] minutes of any [matter discussed] decision made pursuant to

16-18 [paragraph (c) of subsection 2] subsection 3 and, upon request, provide a

16-19 copy of [those minutes] the decision to the unit’s owner who was the

16-20 subject of the [discussion] hearing or to his designated representative.

16-21 [4. A]

16-22 5. Except as otherwise provided in subsection 3, a unit’s owner is not

16-23 entitled to attend or speak at a meeting of the executive board held in

16-24 executive session.

16-25 Sec. 24.5. NRS 116.3109 is hereby amended to read as follows:

16-26 116.3109 1. [Unless] Except as otherwise provided in this section

16-34 meeting.

16-35 3. For the purposes of determining whether a quorum is present for

16-36 the election of any member of the executive board, only the secret written

16-37 ballots that are returned to the association may be counted.

16-38 Sec. 25. NRS 116.311 is hereby amended to read as follows:

16-39 116.311 1. If only one of several owners of a unit is present at a

16-43 a majority in interest of the owners, unless the declaration expressly

17-1 provides otherwise. There is majority agreement if any one of the owners

17-2 cast the votes allocated to that unit without protest made promptly to the

17-3 person presiding over the meeting by any of the other owners of the unit.

17-4 2. [Votes] Except as otherwise provided in this section, votes

17-5 allocated to a unit may be cast pursuant to a proxy executed by a unit’s

17-6 owner. A unit’s owner may give a proxy only to a member of his

17-7 immediate family, a tenant of the unit’s owner who resides in the

17-8 common-interest community or another unit’s owner who resides in the

17-9 common-interest community. If a unit is owned by more than one person,

17-10 each owner of the unit may vote or register protest to the casting of votes

17-11 by the other owners of the unit through an executed proxy. A unit’s owner

17-12 may revoke a proxy given pursuant to this section only by actual notice of

17-13 revocation to the person presiding over a meeting of the association. A

17-14 proxy is void if [it] :

17-15 (a) It is not dated or purports to be revocable without notice [.] ;

17-16 (b) It does not designate the votes that must be cast on behalf of the

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

17-18 (c) The holder of the proxy does not disclose at the beginning of the

17-19 meeting for which the proxy is executed the number of proxies pursuant

17-20 to which he will be casting votes and the voting instructions received for

17-21 each proxy.

17-22 A proxy terminates [one year after its date, unless it specifies a shorter

17-23 term.] immediately after the conclusion of the meeting for which it was

17-24 executed. A vote may not be cast pursuant to a proxy for the election of a

17-25 member of the executive board of an association.

17-26 3. Only a vote cast in person, by secret ballot or by proxy may be

17-27 counted.

17-28 4. If the declaration requires that votes on specified matters affecting

17-29 the common-interest community be cast by lessees rather than units’

17-30 owners of leased units:

17-31 (a) The provisions of subsections 1 and 2 apply to lessees as if they were

17-32 units’ owners;

17-33 (b) Units’ owners who have leased their units to other persons may not

17-34 cast votes on those specified matters; and

17-35 (c) Lessees are entitled to notice of meetings, access to records, and

17-36 other rights respecting those matters as if they were units’ owners.

17-37 Units’ owners must also be given notice, in the manner provided in NRS

17-38 116.3108, of all meetings at which lessees are entitled to vote.

17-39 [4.] 5. No votes allocated to a unit owned by the association may be

17-40 cast.

17-41 6. Votes cast for the election of a member of the executive board of

17-42 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 (c) An attorney licensed to practice in this state.

19-1 (d) A trustee.

19-2 (e) An employee of a corporation who manages only the property of the

19-3 corporation.

19-4 (f) A declarant.

19-5 (g) A receiver.

19-6 [4.] 5. As used in this section, "property management" means the

19-7 physical, administrative or financial maintenance and management of real

19-8 property, or the supervision of those activities for a fee, commission or

19-9 other compensation or valuable consideration.

19-10 Sec. 27. NRS 116.3115 is hereby amended to read as follows:

19-11 116.3115 1. Until the association makes an assessment for common

19-42 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. The association of a common-interest community created before

20-10 January 1, 1992, is not required to make an assessment against a vacant

20-11 lot located within the community that is owned by the declarant.

20-12 8. If liabilities for common expenses are reallocated, assessments for

20-13 common expenses and any installment thereof not yet due must be

20-14 recalculated in accordance with the reallocated liabilities.

20-15 [8.] 9. The association shall provide written notice to the owner of each

20-16 unit of a meeting at which an assessment for a capital improvement or the

20-17 commencement of a civil action is to be considered or action is to be taken

20-18 on such an assessment at least 21 calendar days before the meeting. Except

20-19 as otherwise provided in this subsection, the association may commence a

20-20 civil action only upon a vote or written agreement of the owners of units to

20-21 which at least a majority of the votes of the members of the association are

20-22 allocated. The provisions of this subsection do not apply to a civil action

20-23 that is commenced:

20-24 (a) By an association for a time-share project governed by the

20-25 provisions of chapter 119A of NRS;

20-26 (b) To enforce the payment of an assessment;

20-27 (c) To enforce the declaration, bylaws or rules of the association;

20-28 (d) To proceed with a counterclaim; or

20-29 (e) To protect the health, safety and welfare of the members of the

20-30 association. If a civil action is commenced pursuant to this paragraph

20-31 without the required vote or agreement, the action must be ratified within

20-32 90 days after the commencement of the action by a vote or written

20-33 agreement of the owners of the units to which at least a majority of votes

20-34 of the members of the association are allocated. If the association, after

20-35 making a good faith effort, cannot obtain the required vote or agreement

20-36 to commence or ratify such a civil action, the association may thereafter

20-37 seek to dismiss the action without prejudice only if a vote or written

20-38 agreement of the owners of the units to which at least a majority of votes

20-39 of the members of the association are allocated was obtained at the time

20-40 the approval to commence or ratify the action was sought.

20-41 10. At least 10 days before an association commences or seeks to

20-42 ratify the commencement of a civil action, the association shall provide a

20-43 written statement to all units’ owners that includes:

21-1 (a) A reasonable estimate of the costs of the civil action, including

21-2 reasonable attorney’s fees;

21-3 (b) An explanation of the potential benefits of the civil action and the

21-4 potential adverse consequences if the association does not commence the

21-5 action or if the outcome of the action is not favorable to the association;

21-6 and

21-7 (c) All disclosures that are required to be made upon the sale of the

21-8 property.

21-9 11. No person other than a unit’s owner may request the dismissal of

21-10 a civil action commenced by the association on the ground that the

21-11 association failed to comply with any provision of this section.

21-12 Sec. 28. NRS 116.31155 is hereby amended to read as follows:

21-13 116.31155 1. An association [that is not a master association and

21-36 an association organized pursuant to NRS 116.3101.

21-37 Sec. 28.5. NRS 116.31155 is hereby amended to read as follows:

21-38 116.31155 1. An association shall:

21-39 (a) If the association is required to pay the fee imposed by NRS 78.150

21-40 or 82.193, pay to the [secretary of state at the time it is required to pay the

21-41 fee imposed by those sections] administrator a fee established by

21-42 regulation of the administrator for every unit in the association used for

21-43 residential use.

22-1 (b) If the association is organized as a trust or partnership, pay to the

22-2 administrator a fee established by regulation of the administrator for each

22-3 unit in the association. [The fee must be paid on or before January 1 of

22-4 each year.]

22-5 2. The fees required to be paid pursuant to this section must be:

22-6 (a) Paid at such times as are established by the administrator.

22-7 (b) Deposited with the state treasurer for credit to the account for the

22-8 ombudsman for owners in common-interest communities created pursuant

22-9 to NRS 116.1117.

22-10 [(b)] (c) Established on the basis of the actual cost of administering the

22-11 office of the ombudsman for owners in common-interest communities and

22-12 not on a basis which includes any subsidy for the office. In no event may

22-13 the fees required to be paid pursuant to this section exceed $3 per unit.

22-14 3. A unit’s owner may not be required to pay any portion of the fees

22-15 required to be paid pursuant to this section to a master association and to an

22-16 association organized pursuant to NRS 116.3101.

22-17 4. Upon the payment of the fees required by this section, the

22-18 administrator shall provide to the association evidence that it paid the

22-19 fees in compliance with this section.

22-20 Sec. 29. NRS 116.31162 is hereby amended to read as follows:

22-21 116.31162 1. Except as otherwise provided in subsection 4, in a

22-42 and election to sell.

23-1 2. The notice of default and election to sell must be signed by the

23-2 person designated in the declaration or by the association for that purpose,

23-3 or if no one is designated, by the president of the association.

23-4 3. The period of 60 days begins on the first day following the later of:

23-5 (a) The day on which the notice of default is recorded; or

23-6 (b) The day on which a copy of the notice of default is mailed by

23-7 certified or registered mail, return receipt requested, to the unit’s owner or

23-8 his successor in interest at his address if known, [otherwise to] and at the

23-9 address of the unit.

23-10 4. The association may not foreclose a lien by sale for the assessment

23-11 of a fine for a violation of the declaration, bylaws, rules or regulations of

23-12 the association, unless the violation is of a type that threatens the health

23-13 [and] , safety or welfare of the residents of the common-interest

23-14 community.

23-15 Sec. 30. NRS 116.4101 is hereby amended to read as follows:

23-16 116.4101 1. NRS 116.4101 to 116.412, inclusive, apply to all units

23-27 (f) Disposition that may be canceled at any time and for any reason by

23-28 the purchaser without penalty; or

23-29 (g) Disposition of a unit in a planned community [in which the

23-30 declaration limits the average annual assessment of any unit to not more

23-31 than $500, exclusive of optional users’ fees and any insurance premiums

23-32 paid by the association, or] which contains no more than 12 units if:

23-33 (1) The declarant reasonably believes in good faith that the maximum

23-34 [stated] assessment stated in the declaration will be sufficient to pay the

23-35 expenses of the planned community; and

23-36 (2) The declaration cannot be amended to increase the assessment

23-37 during the period of the declarant’s control without the consent of all units’

23-38 owners.

23-39 3. Except as otherwise provided in subsection 2, the provisions of NRS

23-40 116.4101 to 116.412, inclusive, do not apply to a planned community

23-41 described in NRS 116.1203.

24-1 Sec. 31. NRS 116.4103 is hereby amended to read as follows:

24-2 116.4103 1. Except as otherwise provided in NRS 116.41035, a

24-43 (l) The information statement set forth in NRS 116.41095.

25-1 2. A declarant is not required to revise a public offering statement

25-2 more than once each calendar quarter, if the following warning is given

25-3 prominence in the statement: "THIS PUBLIC OFFERING STATEMENT

25-4 IS CURRENT AS OF (insert a specified date). RECENT

25-5 DEVELOPMENTS REGARDING (here refer to particular provisions of

25-6 NRS 116.4103 and 116.4105) MAY NOT BE REFLECTED IN THIS

25-7 STATEMENT."

25-8 Sec. 32. NRS 116.41095 is hereby amended to read as follows:

25-9 116.41095 The information statement required by NRS 116.4103 and