SB336_EN

Senate Bill No. 336–Committee on Judiciary

CHAPTER..........

AN ACT relating to arbitration; adopting the revision of the Uniform Arbitration Act that was adopted in 2000; providing for the transition from the present act to the act as revised; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 38 of NRS is hereby amended by adding thereto

the provisions set forth as sections 2 to 38, inclusive, of this act.

Sec. 2. This act may be cited as the Uniform Arbitration Act of 2000.

Sec. 3. As used in sections 2 to 37, inclusive, of this act, the words

and terms defined in sections 4 to 8, inclusive, of this act have the

meanings ascribed to them in those sections.

Sec. 4. “Arbitral organization” means an association, agency,

board, commission or other entity that is neutral and initiates, sponsors

or administers an arbitral proceeding or is involved in the appointment

of an arbitrator.

Sec. 5. “Arbitrator” means an individual appointed to render an

award, alone or with others, in a controversy that is subject to an

agreement to arbitrate.

Sec. 6. “Court” means the district court.

Sec. 7. “Knowledge” means actual knowledge.

Sec. 8. “Record” means information that is inscribed on a tangible

medium or that is stored in an electronic or other medium and is

retrievable in perceivable form.

Sec. 9. 1. Except as otherwise provided in sections 2 to 37,

inclusive, of this act, a person gives notice to another person by taking

action that is reasonably necessary to inform the other person in

ordinary course, whether or not the other person acquires knowledge of

the notice.

2. A person has notice if he has knowledge of the notice or has

received notice.

3. A person receives notice when it comes to his attention or the

notice is delivered at his place of residence or place of business, or at

another location held out by him as a place of delivery of such

communications.

Sec. 10. 1. Sections 2 to 37, inclusive, of this act govern an

agreement to arbitrate made on or after October 1, 2001.

2. Sections 2 to 37, inclusive, of this act govern an agreement to

arbitrate made before October 1, 2001, if all the parties to the agreement

or to the arbitral proceeding so agree in a record.

3. On or after October 1, 2003, sections 2 to 37, inclusive, of this act

govern an agreement to arbitrate whenever made.

Sec. 11. 1. Except as otherwise provided in subsections 2 and 3, a

party to an agreement to arbitrate or to an arbitral proceeding may

waive, or the parties may vary the effect of, the requirements of sections

2 to 37, inclusive, of this act to the extent permitted by law.

2. Before a controversy arises that is subject to an agreement to

arbitrate, a party to the agreement may not:

(a) Waive or agree to vary the effect of the requirements of subsection

1 of section 12, subsection 1 of section 13, section 15, subsection 1 or 2 of

section 24, section 33, or section 35 of this act;

(b) Agree to unreasonably restrict the right under section 16 of this

act to notice of the initiation of an arbitral proceeding;

to disclosure of any facts by a neutral arbitrator; or

(d) Waive the right under section 23 of this act of a party to an

agreement to arbitrate to be represented by a lawyer at any proceeding

or hearing under sections 2 to 37, inclusive, of this act, but an employer

and a labor organization may waive the right to representation by a

lawyer in a labor arbitration.

3. A party to an agreement to arbitrate or arbitral proceeding may

not waive, or the parties may not vary the effect of, the requirements of

this section or subsection 1 or 3 of section 10, section 14, 21, 25,

subsection 3 or 4 of section 27, section 29, 30, 31, subsection 1 or 2 of

section 32, section 36, 37, 38 or 39 of this act.

Sec. 12. 1. Except as otherwise provided in section 35 of this act,

an application for judicial relief under sections 2 to 37, inclusive, of this

act must be made by motion to the court and heard in the manner

provided by rule of court for making and hearing motions.

2. Unless a civil action involving the agreement to arbitrate is

pending, notice of an initial motion to the court under sections 2 to 37,

inclusive, of this act must be served in the manner provided by rule of

court for the service of a summons in a civil action. Otherwise, notice of

the motion must be given in the manner provided by rule of court for

serving motions in pending cases.

Sec. 13. 1. An agreement contained in a record to submit to

arbitration any existing or subsequent controversy arising between the

parties to the agreement is valid, enforceable and irrevocable except

upon a ground that exists at law or in equity for the revocation of a

contract.

2. The court shall decide whether an agreement to arbitrate exists or

a controversy is subject to an agreement to arbitrate.

3. An arbitrator shall decide whether a condition precedent to

arbitrability has been fulfilled and whether a contract containing a valid

agreement to arbitrate is enforceable.

4. If a party to a judicial proceeding challenges the existence of, or

claims that a controversy is not subject to, an agreement to arbitrate, the

arbitral proceeding may continue pending final resolution of the issue

by the court, unless the court otherwise orders.

Sec. 14. 1. On motion of a person showing an agreement to

arbitrate and alleging another person’s refusal to arbitrate pursuant to

the agreement:

(a) If the refusing party does not appear or does not oppose the

motion, the court shall order the parties to arbitrate; and

(b) If the refusing party opposes the motion, the court shall proceed

summarily to decide the issue and order the parties to arbitrate unless it

finds that there is no enforceable agreement to arbitrate.

2. On motion of a person alleging that an arbitral proceeding has

been initiated or threatened but that there is no agreement to arbitrate,

the court shall proceed summarily to decide the issue. If the court finds

that there is an enforceable agreement to arbitrate, it shall order the

parties to arbitrate.

3. If the court finds that there is no enforceable agreement, it may

not, pursuant to subsection 1 or 2, order the parties to arbitrate.

4. The court may not refuse to order arbitration because the claim

subject to arbitration lacks merit or grounds for the claim have not been

established.

5. If a proceeding involving a claim referable to arbitration under an

alleged agreement to arbitrate is pending in court, a motion under this

section must be made in that court. Otherwise a motion under this

section may be made in any court as provided in section 34 of this act.

6. If a party makes a motion to the court to order arbitration, the

court on just terms shall stay any judicial proceeding that involves a

claim alleged to be subject to the arbitration until the court renders a

final decision under this section.

7. If the court orders arbitration, the court on just terms shall stay

any judicial proceeding that involves a claim subject to the arbitration. If

a claim subject to the arbitration is severable, the court may limit the

stay to that claim.

Sec. 15. 1. Before an arbitrator is appointed and is authorized and

able to act, the court, upon motion of a party to an arbitral proceeding

and for good cause shown, may enter an order for provisional remedies

to protect the effectiveness of the arbitral proceeding to the same extent

and under the same conditions as if the controversy were the subject of a

civil action.

2. After an arbitrator is appointed and is authorized and able to act:

(a) The arbitrator may issue such orders for provisional remedies,

including interim awards, as he finds necessary to protect the

effectiveness of the arbitral proceeding and to promote the fair and

expeditious resolution of the controversy, to the same extent and under

the same conditions as if the controversy were the subject of a civil

action; and

(b) A party to an arbitral proceeding may move the court for a

provisional remedy only if the matter is urgent and the arbitrator is not

able to act timely or the arbitrator cannot provide an adequate remedy.

3. A party does not waive a right of arbitration by making a motion

under subsection 1 or 2.

Sec. 16. 1. A person initiates an arbitral proceeding by giving

notice in a record to the other parties to the agreement to arbitrate in the

agreed manner between the parties or, in the absence of agreement, by

certified or registered mail, return receipt requested and obtained, or by

service as authorized for the commencement of a civil action. The notice

must describe the nature of the controversy and the remedy sought.

2. Unless a person objects for lack or insufficiency of notice under

subsection 3 of section 22 of this act not later than the beginning of the

arbitration hearing, by appearing at the hearing he waives any objection

to lack of or insufficiency of notice.

Sec. 17. 1. Except as otherwise provided in subsection 3, upon

motion of a party to an agreement to arbitrate or to an arbitral

proceeding, the court may order consolidation of separate arbitral

proceedings as to all or some of the claims if:

(a) There are separate agreements to arbitrate or separate arbitral

proceedings between the same persons or one of them is a party to a

separate agreement to arbitrate or a separate arbitral proceeding with a

third person;

(b) The claims subject to the agreements to arbitrate arise in

substantial part from the same transaction or series of related

transactions;

possibility of conflicting decisions in the separate arbitral proceedings;

and

(d) Prejudice resulting from a failure to consolidate is not outweighed

by the risk of undue delay or prejudice to the rights of or hardship to

parties opposing consolidation.

2. The court may order consolidation of separate arbitral

proceedings as to some claims and allow other claims to be resolved in

separate arbitral proceedings.

3. The court may not order consolidation of the claims of a party to

an agreement to arbitrate if the agreement prohibits consolidation.

Sec. 18. 1. If the parties to an agreement to arbitrate agree on a

method for appointing an arbitrator, that method must be followed,

unless the method fails. If the parties have not agreed on a method, the

agreed method fails, or an arbitrator appointed fails or is unable to act

and a successor has not been appointed, the court, on motion of a party

to the arbitral proceeding, shall appoint the arbitrator. An arbitrator so

appointed has all the powers of an arbitrator designated in the

agreement to arbitrate or appointed pursuant to the agreed method.

2. An individual who has a known, direct and material interest in the

outcome of the arbitral proceeding or a known, existing and substantial

relationship with a party may not serve as an arbitrator required by an

agreement to be neutral.

Sec. 19. 1. Before accepting appointment, an individual who is

requested to serve as an arbitrator, after making a reasonable inquiry,

shall disclose to all parties to the agreement to arbitrate and arbitral

proceeding and to any other arbitrators any known facts that a

reasonable person would consider likely to affect the impartiality of the

arbitrator in the proceeding, including:

(a) A financial or personal interest in the outcome of the arbitral

proceeding; and

(b) An existing or past relationship with any of the parties to the

agreement to arbitrate or the arbitral proceeding, their counsel or

representatives, a witness or another arbitrators.

2. An arbitrator has a continuing obligation to disclose to all parties

to the agreement to arbitrate and arbitral proceeding and to any other

arbitrators any facts that he learns after accepting appointment which a

reasonable person would consider likely to affect the impartiality of the

arbitrator.

3. If an arbitrator discloses a fact required by subsection 1 or 2 to be

disclosed and a party timely objects to the appointment or continued

service of the arbitrator based upon the fact disclosed, the objection may

be a ground under paragraph (b) of subsection 1 of section 30 of this act

for vacating an award made by the arbitrator.

4. If the arbitrator did not disclose a fact as required by subsection 1

or 2, upon timely objection by a party, the court under paragraph (b) of

subsection 1 of section 30 of this act may vacate an award.

5. An arbitrator appointed as a neutral arbitrator who does not

disclose a known, direct and material interest in the outcome of the

arbitral proceeding or a known, existing and substantial relationship

with a party is presumed to act with evident partiality for the purposes of

paragraph (b) of subsection 1 of section 30 of this act.

6. If the parties to an arbitral proceeding agree to the procedures of

an arbitral organization or any other procedures for challenges to

arbitrators before an award is made, substantial compliance with those

procedures is a condition precedent to a motion to vacate an award on

that ground under paragraph (b) of subsection 1 of section 30 of this act.

Sec. 20. If there are two or more arbitrators, the powers of an

arbitrator must be exercised by a majority of the arbitrators, but all of

them shall conduct the hearing under subsection 3 of section 22 of this

act.

Sec. 21. 1. An arbitrator or an arbitral organization acting in that

capacity is immune from civil liability to the same extent as a judge of a

court of this state acting in a judicial capacity.

2. The immunity afforded by this section supplements any immunity

under other law.

3. The failure of an arbitrator to make a disclosure required by

section 19 of this act does not cause any loss of immunity under this

section.

4. In a judicial, administrative or similar proceeding, an arbitrator or

representative of an arbitral organization is not competent to testify, and

may not be required to produce records as to any statement, conduct,

decision or ruling occurring during the arbitral proceeding, to the same

extent as a judge of a court of this state acting in a judicial capacity.

This subsection does not apply:

(a) To the extent necessary to determine the claim of an arbitrator,

arbitral organization or representative of the arbitral organization

against a party to the arbitral proceeding; or

(b) To a hearing on a motion to vacate an award under paragraph (a)

or (b) of subsection 1 of section 30 of this act if the movant establishes

prima facie that a ground for vacating the award exists.

5. If a person commences a civil action against an arbitrator, arbitral

organization or representative of an arbitral organization arising from

the services of the arbitrator, organization or representative or if a

person seeks to compel an arbitrator or a representative of an arbitral

organization to testify or produce records in violation of subsection 4,

and the court decides that the arbitrator, arbitral organization or

representative is immune from civil liability or that the arbitrator or

representative is not competent to testify, the court shall award to the

arbitrator, organization or representative reasonable attorney’s fees and

other reasonable expenses of litigation.

Sec. 22. 1. An arbitrator may conduct an arbitration in such

manner as he considers appropriate for a fair and expeditious

disposition of the proceeding. The authority conferred upon the

arbitrator includes the power to hold conferences with the parties to the

arbitral proceeding before the hearing and, among other matters,

determine the admissibility, relevance, materiality and weight of any

evidence.

2. An arbitrator may decide a request for summary disposition of a

claim or particular issue:

(a) If all interested parties agree; or

(b) Upon request of one party to the arbitral proceeding if that party

gives notice to all other parties to the proceeding, and the other parties

have a reasonable opportunity to respond.

3. If an arbitrator orders a hearing, he shall set a time and place and

give notice of the hearing not less than 5 days before the hearing begins.

Unless a party to the arbitral proceeding makes an objection to lack or

insufficiency of notice not later than the beginning of the hearing, his

appearance at the hearing waives the objection. Upon request of a party

to the arbitral proceeding and for good cause shown, or upon his own

initiative, the arbitrator may adjourn the hearing from time to time as

necessary but may not postpone the hearing to a time later than that

fixed by the agreement to arbitrate for making the award unless the

parties to the arbitral proceeding consent to a later date. The arbitrator

may hear and decide the controversy upon the evidence produced

although a party who was duly notified of the arbitral proceeding did not

appear. The court, on request, may direct the arbitrator to conduct the

hearing promptly and render a timely decision.

4. At a hearing held under subsection 3, a party to the arbitral

proceeding has a right to be heard, to present evidence material to the

controversy and to cross-examine witnesses appearing at the hearing.

5. If an arbitrator ceases or is unable to act during an arbitral

proceeding, a replacement arbitrator must be appointed in accordance

with section 18 of this act to continue the proceeding and to resolve the

controversy.

Sec. 23. A party to an arbitral proceeding may be represented by a

lawyer.

Sec. 24. 1. An arbitrator may issue a subpoena for the attendance

of a witness and for the production of records and other evidence at any

hearing and may administer oaths. A subpoena must be served in the

manner for service of subpoenas in a civil action and, upon motion to

the court by a party to the arbitral proceeding or the arbitrator, enforced

in the manner for enforcement of subpoenas in a civil action.

2. To make the proceedings fair, expeditious and cost effective, upon

request of a party to or a witness in an arbitral proceeding, an arbitrator

may permit a deposition of any witness to be taken for use as evidence at

the hearing, including a witness who cannot be subpoenaed for or is

unable to attend a hearing. The arbitrator shall determine the conditions

under which the deposition is taken.

3. An arbitrator may permit such discovery as he decides is

appropriate in the circumstances, taking into account the needs of the

parties to the arbitral proceeding and other affected persons and the

desirability of making the proceeding fair, expeditious and cost effective.

4. If an arbitrator permits discovery under subsection 3, he may

order a party to the arbitral proceeding to comply with the arbitrator’s

orders related to discovery, issue subpoenas for the attendance of a

witness and for the production of records and other evidence at a

proceeding for discovery, and take action against a noncomplying party

to the extent a court could if the controversy were the subject of a civil

action in this state.

5. An arbitrator may issue a protective order to prevent the disclosure

of privileged information, confidential information, trade secrets and

other information protected from disclosure to the extent a court could if

the controversy were the subject of a civil action in this state.

6. All laws compelling a person under subpoena to testify and all fees

for attending a judicial proceeding, a deposition or a proceeding for

discovery as a witness apply to an arbitral proceeding as if the

controversy were the subject of a civil action in this state.

7. The court may enforce a subpoena or order related to discovery

for the attendance of a witness within this state and for the production of

records and other evidence issued by an arbitrator in connection with an

arbitral proceeding in another state upon conditions determined by the

court so as to make the arbitral proceeding fair, expeditious and cost

effective. A subpoena or order related to discovery issued by an

arbitrator in another state must be served in the manner provided by rule

of court for service of subpoenas in a civil action in this state and, upon

motion to the court by a party to the arbitral proceeding or the

arbitrator, enforced in the manner provided by rule of court for

enforcement of subpoenas in a civil action in this state.

Sec. 25. If an arbitrator makes a pre-award ruling in favor of a

party to an arbitral proceeding, the party may request the arbitrator to

incorporate the ruling into an award under section 26 of this act. A

prevailing party may make a motion to the court for an expedited order

to confirm the award under section 29 of this act, in which case the

court shall summarily decide the motion. The court shall issue an order

to confirm the award unless the court vacates, modifies or corrects the

award under section 30 or 31 of this act.

Sec. 26. 1. An arbitrator shall make a record of an award. The

record must be signed or otherwise authenticated by an arbitrator who

concurs with the award. The arbitrator or the arbitral organization shall

give notice of the award, including a copy of the award, to each party to

the arbitral proceeding.

2. An award must be made within the time specified by the

agreement to arbitrate or, if not specified therein, within the time

ordered by the court. The court may extend or the parties to the arbitral

proceeding may agree in a record to extend the time. The court or the

parties may do so within or after the time specified or ordered. A party

waives any objection that an award was not timely made unless he gives

notice of the objection to the arbitrator before receiving notice of the

award.

Sec. 27. 1. On motion to an arbitrator by a party to an arbitral

proceeding, the arbitrator may modify or correct an award:

(a) Upon a ground stated in paragraph (a) or (c) of subsection 1 of

section 31 of this act;

(b) Because the arbitrator has not made a final and definite award

upon a claim submitted by the parties to the arbitral proceeding; or

2. A motion under to subsection 1 must be made and notice given to

all parties within 20 days after the movant receives notice of the award.

3. A party to the arbitral proceeding must give notice of any

objection to the motion within 10 days after receipt of the notice.

4. If a motion to the court is pending under section 29, 30 or 31 of

this act, the court may submit the claim to the arbitrator to consider

whether to modify or correct the award:

(a) Upon a ground stated in paragraph (a) or (c) of subsection 1 of

section 31 of this act;

(b) Because the arbitrator has not made a final and definite award

upon a claim submitted by the parties to the arbitral proceeding; or

5. An award modified or corrected pursuant to this section is subject

to subsection 1 of section 26 of this act and to sections 29, 30 and 31 of

this act.

Sec. 28. 1. An arbitrator may award reasonable attorney’s fees and

other reasonable expenses of arbitration if such an award is authorized

by law in a civil action involving the same claim or by the agreement of

the parties to the arbitral proceeding.

2. As to all remedies other than those authorized by subsection 1, an

arbitrator may order such remedies as he considers just and appropriate

under the circumstances of the arbitral proceeding. The fact that such a

remedy could not or would not be granted by the court is not a ground

for refusing to confirm an award under section 29 of this act or for

vacating an award under section 30 of this act.

3. An arbitrator’s expenses and fees, together with other expenses,

must be paid as provided in the award.

Sec. 29. After a party to an arbitral proceeding receives notice of an

award, he may make a motion to the court for an order confirming the

award at which time the court shall issue a confirming order unless the

award is modified or corrected pursuant to section 27 or 31 of this act or

is vacated pursuant to section 30 of this act.

Sec. 30. 1. Upon motion to the court by a party to an arbitral

proceeding, the court shall vacate an award made in the arbitral

proceeding if:

(a) The award was procured by corruption, fraud, or other undue

means;

(b) There was:

(1) Evident partiality by an arbitrator appointed as a neutral

arbitrator;

(2) Corruption by an arbitrator; or

(3) Misconduct by an arbitrator prejudicing the rights of a party to

the arbitral proceeding;

sufficient cause for postponement, refused to consider evidence material

to the controversy, or otherwise conducted the hearing contrary to

section 22 of this act, so as to prejudice substantially the rights of a party

to the arbitral proceeding;

(d) An arbitrator exceeded his powers;

(e) There was no agreement to arbitrate, unless the movant

participated in the arbitral proceeding without raising the objection

under subsection 3 of section 22 of this act not later than the beginning

of the arbitral hearing; or

(f) The arbitration was conducted without proper notice of the

initiation of an arbitration as required in section 16 of this act so as to

prejudice substantially the rights of a party to the arbitral proceeding.

2. A motion under this section must be made within 90 days after the

movant receives notice of the award pursuant to section 26 of this act or

within 90 days after he receives notice of a modified or corrected award

pursuant to section 27 of this act, unless he alleges that the award was

procured by corruption, fraud, or other undue means, in which case the

motion must be made within 90 days after the ground is known or by the

exercise of reasonable care would have been known by the movant.

3. If the court vacates an award on a ground other than that set forth

in paragraph (e) of subsection 1, it may order a rehearing. If the award

is vacated on a ground stated in paragraph (a) or (b) of subsection 1, the

rehearing must be before a new arbitrator. If the award is vacated on a

ground stated in paragraph (c), (d) or (f) of subsection 1, the rehearing

may be before the arbitrator who made the award or his successor. The

arbitrator must render the decision in the rehearing within the same

time as that provided in subsection 2 of section 26 of this act for an

award.

4. If the court denies a motion to vacate an award, it shall confirm

the award unless a motion to modify or correct the award is pending.

Sec. 31. 1. Upon motion made within 90 days after the movant

receives notice of the award pursuant to section 26 of this act or within

90 days after he receives notice of a modified or corrected award

pursuant to section 27 of this act, the court shall modify or correct the

award if:

(a) There was an evident mathematical miscalculation or an evident

mistake in the description of a person, thing or property referred to in

the award;

(b) The arbitrator has made an award on a claim not submitted to him

and the award may be corrected without affecting the merits of the

decision upon the claims submitted; or

of the decision on the claims submitted.

2. If a motion made under subsection 1 is granted, the court shall

modify or correct and confirm the award as modified or corrected.

Otherwise, unless a motion to vacate is pending, the court shall confirm

the award.

3. A motion to modify or correct an award pursuant to this section

may be joined with a motion to vacate the award.

Sec. 32. 1. Upon granting an order confirming, vacating without

directing a rehearing, modifying or correcting an award, the court shall

enter a judgment in conformity therewith. The judgment may be

recorded, docketed and enforced as any other judgment in a civil action.

2. A court may allow reasonable costs of the motion and subsequent

judicial proceedings.

3. On application of a prevailing party to a contested judicial

proceeding under section 29, 30 or 31 of this act, the court may add

reasonable attorney’s fees and other reasonable expenses of litigation

incurred in a judicial proceeding after the award is made to a judgment

confirming, vacating without directing a rehearing, modifying or

correcting an award.

Sec. 33. 1. A court of this state having jurisdiction over the

controversy and the parties may enforce an agreement to arbitrate.

2. An agreement to arbitrate providing for arbitration in this state

confers exclusive jurisdiction on the court to enter judgment on an

award under sections 2 to 37, inclusive, of this act.

Sec. 34. A motion pursuant to section 12 of this act must be made in

the court of the county in which the agreement to arbitrate specifies the

arbitration hearing is to be held or, if the hearing has been held, in the

court of the county in which it was held. Otherwise, the motion may be

made in the court of any county in which an adverse party resides or has

a place of business or, if no adverse party has a residence or place of

business in this state, in the court of any county in this state. All

subsequent motions must be made in the court hearing the initial motion

unless the court otherwise directs.

Sec. 35. 1. An appeal may be taken from:

(a) An order denying a motion to compel arbitration;

(b) An order granting a motion to stay arbitration;

(d) An order modifying or correcting an award;

(e) An order vacating an award without directing a rehearing; or

(f) A final judgment entered pursuant to sections 2 to 37, inclusive, of

this act.

2. An appeal under this section must be taken as from an order or a

judgment in a civil action.

Sec. 36. In applying and construing this Uniform Act, consideration

must be given to the need to promote uniformity of the law with respect

to its subject matter among states that enact it.

Sec. 37. Sections 2 to 36, inclusive, of this act do not affect an action

or proceeding commenced or right accrued before October 1, 2001.

Subject to section 10 of this act, an agreement to arbitrate made before

October 1, 2001, is governed by the provisions of NRS 38.015 to 38.205,

inclusive, as they existed on that date.

Sec. 38. NRS 38.015 to 38.205, inclusive, do not apply to arbitration

under an agreement to arbitrate made on or after October 1, 2001.

Sec. 39. NRS 38.330 is hereby amended to read as follows:

38.330 1. If all parties named in a written claim filed pursuant to

NRS 38.320 agree to have the claim submitted for mediation, the parties

shall reduce the agreement to writing and shall select a mediator from the

list of mediators maintained by the division pursuant to NRS 38.340. Any

mediator selected must be available within the geographic area. If the

parties fail to agree upon a mediator, the division shall appoint a mediator

from the list of mediators maintained by the division. Any mediator

appointed must be available within the geographic area. Unless otherwise

provided by an agreement of the parties, mediation must be completed

within 60 days after the parties agree to mediation. Any agreement

obtained through mediation conducted pursuant to this section must,

within 20 days after the conclusion of mediation, be reduced to writing by

the mediator and a copy thereof provided to each party. The agreement

may be enforced as any other written agreement. Except as otherwise

provided in this section, the parties are responsible for all costs of

mediation conducted pursuant to this section.

2. If all the parties named in the claim do not agree to mediation, the

parties shall select an arbitrator from the list of arbitrators maintained by

the division pursuant to NRS 38.340. Any arbitrator selected must be

available within the geographic area. If the parties fail to agree upon an

arbitrator, the division shall appoint an arbitrator from the list maintained

by the division. Any arbitrator appointed must be available within the

geographic area. Upon appointing an arbitrator, the division shall provide

the name of the arbitrator to each party.

3. The division may provide for the payment of the fees for a mediator

or an arbitrator selected or appointed pursuant to this section from the

account for the ombudsman for owners in common-interest communities

created pursuant to NRS 116.1117, to the extent that money is available in

the account for this purpose.

4. Except as otherwise provided in this section and except where

inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the

arbitration of a claim pursuant to this section must be conducted in

accordance with the provisions of [NRS 38.075 to 38.105, inclusive,

38.115, 38.125, 38.135, 38.155 and 38.165.] sections 22, 23, 24, 26 to 29,

inclusive, 31 and 32 of this act. At any time during the arbitration of a

claim relating to the interpretation, application or enforcement of any

covenants, conditions or restrictions applicable to residential property or

any bylaws, rules or regulations adopted by an association, the arbitrator

may issue an order prohibiting the action upon which the claim is based.

An award must be made within 30 days after the conclusion of arbitration,

unless a shorter period is agreed upon by the parties to the arbitration.

5. If all the parties have agreed to nonbinding arbitration, any party to

the arbitration may, within 30 days after a decision and award have been

served upon the parties, commence a civil action in the proper court

concerning the claim which was submitted for arbitration. Any complaint

filed in such an action must contain a sworn statement indicating that the

issues addressed in the complaint have been arbitrated pursuant to the

provisions of NRS 38.300 to 38.360, inclusive. If such an action is not

commenced within that period, any party to the arbitration may, within 1

year after the service of the award, apply to the proper court for a

confirmation of the award pursuant to [NRS 38.135.] section 29 of this act.

6. If all the parties agree in writing to binding arbitration, the

arbitration must be conducted in accordance with the provisions of chapter

38 of NRS. An award procured pursuant to such arbitration may be

vacated and a rehearing granted upon application of a party pursuant to the

provisions of [NRS 38.145.] section 30 of this act.

7. If, after the conclusion of arbitration, a party:

(a) Applies to have an award vacated and a rehearing granted pursuant

to [NRS 38.145;] section 30 of this act; or

(b) Commences a civil action based upon any claim which was the

subject of arbitration,

the party shall, if he fails to obtain a more favorable award or judgment

than that which was obtained in the initial arbitration, pay all costs and

reasonable attorney’s fees incurred by the opposing party after the

application for a rehearing was made or after the complaint in the civil

action was filed.

8. Upon request by a party, the division shall provide a statement to

the party indicating the amount of the fees for a mediator or an arbitrator

selected or appointed pursuant to this section.

9. As used in this section, “geographic area” means an area within 150

miles from any residential property or association which is the subject of a

written claim submitted pursuant to NRS 38.320.

Sec. 40. NRS 280.190 is hereby amended to read as follows:

280.190 The committee shall:

1. Direct the department to prepare and shall approve an annual

operating budget for the department.

2. Submit the budget to the governing bodies of the participating

political subdivisions before April 1 for funding for the following fiscal

year.

3. Direct the department to prepare and shall adopt the funding

apportionment plan provided for in NRS 280.201 and submit the plan

before February 1 to the governing bodies of the participating political

subdivisions for approval. The governing bodies shall approve or reject the

plan before March 1.

4. If any of the governing bodies fails to approve the apportionment

plan, the plan or any disputed element thereof must be submitted to an

arbitration panel for resolution. The governing body of each participating

political subdivision shall name one arbitrator to the panel, who must

reside within this state. If this results in an even number of arbitrators, the

arbitrators so named shall, by majority vote, select an additional arbitrator,

who must reside within this state and who shall serve as chairman of the

panel. The department shall provide such advice and technical and clerical

assistance as is requested by the panel. The panel must make its decision

and submit it to the participating political subdivisions before April 1.

When submitted, the decision is final and binding upon the participating

political subdivisions. Except as otherwise provided in this section, the

provisions of [the Uniform Arbitration Act contained in NRS 38.015 to

38.205, inclusive,] sections 2 to 37, inclusive, of this act apply.

Sec. 41. NRS 391.3194 is hereby amended to read as follows:

391.3194 1. Within 5 days after the superintendent receives the

report of the hearing officer he shall either withdraw the recommendation

to demote, dismiss or not reemploy the licensed employee or file his

recommendation with the board.

2. Within 15 days after the receipt of the recommendation of the

superintendent, the board shall either accept or reject the hearing officer’s

recommendation and notify the licensed employee in writing of its

decision.

3. The board may, before making a decision, refer the report back to

the hearing officer for further evidence and recommendations. Within 15

days after the report is referred to him, the hearing officer shall complete

the report and file it with the board and mail a copy to the superintendent

and licensed employee.

4. The licensed employee may appeal the decision to a district court

within the time limits and in the manner provided by law for appeals of

administrative decisions of state agencies. If the report of the hearing

officer is final and binding, the employee or the board may request judicial

review of the report [pursuant to NRS 38.145 or 38.155.] in the manner

provided in sections 30 and 31 of this act.

Sec. 42. NRS 487.563 is hereby amended to read as follows:

487.563 1. Each person who submits an application for registration

pursuant to the provisions of NRS 487.560 must include in the application

a written statement to the department that specifies whether he agrees to

submit to binding arbitration any claims against him arising out of a

contract for repairs made by him to a motor vehicle. If the person fails to

submit the statement to the department or specifies in the statement that he

does not agree to arbitrate those claims, the person shall file with the

department a bond in the amount of $5,000, with a corporate surety for the

bond that is licensed to do business in this state. The form of the bond

must be approved by the attorney general and be conditioned upon

whether the applicant conducts his business as an owner or operator of a

garage without fraud or fraudulent representation and in compliance with

the provisions of NRS 487.035, 487.530 to 487.570, inclusive, and

597.480 to 597.590, inclusive.

2. The bond must be continuous in form and the total aggregate

liability on the bond must be limited to the payment of the total amount of

the bond.

3. In lieu of a bond required to be filed pursuant to the provisions of

subsection 1, a person may deposit with the department, pursuant to the

terms prescribed by the department:

(a) A like amount of money or bonds of the United States or of the State

of Nevada of an actual market value of not less than the amount fixed by

the department; or

(b) A savings certificate of a bank or savings and loan association

located in this state, which must indicate an account of an amount equal to

the amount of the bond that would otherwise be required pursuant to this

section and that the amount is unavailable for withdrawal except upon

order of the department. Interest earned on the certificate accrues to the

account of the applicant.

4. If a claim is arbitrated pursuant to the provisions of this section, the

proceedings for arbitration must be conducted in accordance with the

provisions of [NRS 38.015 to 38.205, inclusive.] sections 2 to 37,

inclusive, of this act.

5. If a person:

(a) Submits the statement to the department specifying that he agrees to

arbitrate a claim pursuant to the provisions of subsection 1; and

(b) Fails to submit to binding arbitration any claim specified in that

subsection,

the person asserting the claim may notify the department of that fact. Upon

receipt of the notice, the department shall, after notice and hearing, revoke

or refuse to renew the certificate of registration of the person who failed to

submit the claim to arbitration.

6. The department may reinstate or renew a certificate of registration

that is revoked pursuant to the provisions of subsection 5 if the person

whose certificate of registration is revoked:

(a) Submits the claim to arbitration pursuant to the provisions of

subsection 4 and notifies the department of that fact; or

(b) Files a bond or makes a deposit with the department pursuant to the

provisions of this section.

Sec. 43. NRS 38.015, 38.025, 38.035, 38.045, 38.055, 38.065, 38.075,

38.085, 38.087, 38.095, 38.105, 38.115, 38.125, 38.135, 38.145, 38.155,

38.165, 38.175, 38.185, 38.195 and 38.205 are hereby repealed.

Sec. 44. 1. This section and sections 1 to 38, inclusive, of this act

become effective on October 1, 2001.

2. Sections 39 to 43, inclusive, of this act become effective on

October 1, 2003.

3. Section 38 of this act expires by limitation on October 1, 2003.

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