REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 16, 24, 30, 35)              exempt

   (Reprinted with amendments adopted on April 18, 2003)

 

Senate Bill No. 100–Committee on Commerce and Labor

 

February 12, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions governing common-interest communities. (BDR 10‑29)

 

FISCAL NOTE:                   Effect on Local Government: No.

                   Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to property; making various changes relating to common-interest communities; creating and prescribing the powers and duties of the Commission for Common-Interest Communities; revising provisions relating to the powers and duties of the Ombudsman for Owners in Common-Interest Communities and the Real Estate Division of the Department of Business and Industry; revising provisions governing the regulation of persons who manage common-interest communities; authorizing the Commission to adjudicate certain violations relating to common-interest communities and to impose fines and take other action with regard to such violations; providing that a unit’s owner has the right to display the flag of the United States under certain circumstances; enacting and revising provisions governing the conduct and activities of unit-owners’ associations, the members of executive boards and declarants; enacting provisions relating to the transient commercial use of a unit; authorizing the use of delegates or representatives to exercise voting rights in certain common-interest communities; authorizing an association to impose construction penalties under certain circumstances and to place and foreclose a lien on a unit for failure to pay such penalties; revising provisions relating to the imposition of fines; making various changes relating to meetings, quorums, voting and the election and removal of members of the executive board;

authorizing certain common-interest communities to expend money received as a credit against the residential construction tax for certain purposes; revising provisions relating to the foreclosure of certain liens; making various changes relating to the books, records, reports, studies and other papers of an association; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

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

1-2  thereto the provisions set forth as sections 2 to 48, inclusive, of this

1-3  act.

1-4  Sec. 2. “Certificate” means a certificate for the management

1-5  of a common-interest community issued by the Division.

1-6  Sec. 3. “Commission” means the Commission for Common-

1-7  Interest Communities created by section 13 of this act.

1-8  Sec. 4. “Community manager” means a person who provides

1-9  for or otherwise engages in the management of a common-interest

1-10  community.

1-11      Sec. 5. “Complaint” means a complaint filed by the

1-12  Administrator pursuant to section 31 of this act.

1-13      Sec. 6. “Division” means the Real Estate Division of the

1-14  Department of Business and Industry.

1-15      Sec. 7. “Hearing panel” means a hearing panel appointed by

1-16  the Commission pursuant to section 19 of this act.

1-17      Sec. 8. “Management of a common-interest community”

1-18  means the physical, administrative or financial maintenance and

1-19  management of a common-interest community, or the supervision

1-20  of those activities, for a fee, commission or other valuable

1-21  consideration.

1-22      Sec. 9.  “Ombudsman” means the Ombudsman for Owners in

1-23  Common-Interest Communities.

1-24      Sec. 10.  “Party to the complaint” means the Division and the

1-25  respondent.

1-26      Sec. 11. “Permit” means a permit to engage in property

1-27  management issued pursuant to the provisions of chapter 645 of

1-28  NRS.

1-29      Sec. 12. “Respondent” means a person against whom:

1-30      1.  An affidavit has been filed pursuant to section 30 of this

1-31  act.

1-32      2.  A complaint has been filed pursuant to section 31 of this

1-33  act.

2-1  Sec. 13. 1.  The Commission for Common-Interest

2-2  Communities is hereby created.

2-3  2.  The Commission consists of five members appointed by the

2-4  Governor. The Governor shall appoint to the Commission:

2-5  (a) One member who is a unit’s owner residing in this state

2-6  and who has served as a member of an executive board in this

2-7  state;

2-8  (b) One member who is in the business of developing common-

2-9  interest communities in this state;

2-10      (c) One member who holds a permit or certificate;

2-11      (d) One member who is a certified public accountant licensed

2-12  to practice in this state pursuant to the provisions of chapter 628

2-13  of NRS; and

2-14      (e) One member who is an attorney licensed to practice in this

2-15  state.

2-16      3.  Each member of the Commission must be a resident of this

2-17  state. At least three members of the Commission must be residents

2-18  of a county whose population is 400,000 or more.

2-19      4.  Each member of the Commission must have resided in a

2-20  common-interest community or have been actively engaged in a

2-21  business or profession related to common-interest communities for

2-22  not less than 3 years immediately preceding the date of his

2-23  appointment.

2-24      5.  After the initial terms, each member of the Commission

2-25  serves a term of 3 years. Each member may serve not more than

2-26  two consecutive full terms. If a vacancy occurs during a member’s

2-27  term, the Governor shall appoint a person qualified under this

2-28  section to replace the member for the remainder of the unexpired

2-29  term.

2-30      6.  While engaged in the business of the Commission, each

2-31  member is entitled to receive:

2-32      (a) A salary of not more than $80 per day, as established by the

2-33  Commission; and

2-34      (b) The per diem allowance and travel expenses provided for

2-35  state officers and employees generally.

2-36      Sec. 14. 1.  The Division shall provide or arrange to have

2-37  provided to each member of the Commission courses of

2-38  instruction concerning rules of procedure and substantive law

2-39  appropriate for members of the Commission.

2-40      2.  Each member of the Commission must attend the courses

2-41  of instruction not later than 6 months after the date that the

2-42  member is first appointed to the Commission.

2-43      Sec. 15. 1.  At the first meeting of each fiscal year, the

2-44  Commission shall elect from its members a Chairman, a Vice

2-45  Chairman and a Secretary.

3-1  2.  The Commission shall meet at least once each calendar

3-2  quarter and at other times on the call of the Chairman or a

3-3  majority of its members.

3-4  3.  A majority of the members of the Commission constitutes a

3-5  quorum for the transaction of all business.

3-6  Sec. 16. 1.  The provisions of this chapter shall be

3-7  administered by the Division, subject to the administrative

3-8  supervision of the Commission.

3-9  2.  The Commission and the Division may do all things

3-10  necessary and convenient to carry out the provisions of this

3-11  chapter, including, without limitation, prescribing such forms and

3-12  adopting such procedures as are necessary to carry out the

3-13  provisions of this chapter.

3-14      3.  The Commission or the Administrator, with the approval of

3-15  the Commission, may adopt such regulations as are necessary to

3-16  carry out the provisions of this chapter.

3-17      4.  The Commission may by regulation delegate any authority

3-18  conferred upon it by the provisions of this chapter to the

3-19  Administrator to be exercised pursuant to the regulations adopted

3-20  by the Commission.

3-21      5.  When regulations are proposed by the Administrator, in

3-22  addition to other notices required by law, the Administrator shall

3-23  provide copies of the proposed regulations to the Commission not

3-24  later than 30 days before the next meeting of the Commission. The

3-25  Commission shall approve, amend or disapprove any proposed

3-26  regulations at that meeting.

3-27      6.  All regulations adopted by the Commission, or adopted by

3-28  the Administrator with the approval of the Commission, must be

3-29  published by the Division and offered for sale at a reasonable fee.

3-30      7.  The Division may publish or supply a reference manual or

3-31  study guide for community managers and may offer it for sale at a

3-32  reasonable fee.

3-33      Sec. 17. Any notice or other information that is required to

3-34  be served upon the Commission pursuant to the provisions of this

3-35  chapter may be delivered to the principal office of the Division.

3-36      Sec. 18.  1.  Except as otherwise provided in this section and

3-37  within the limits of legislative appropriations, the Division may

3-38  employ experts, attorneys, investigators, consultants and other

3-39  personnel as are necessary to carry out the provisions of this

3-40  chapter.

3-41      2.  The Attorney General shall act as the attorney for the

3-42  Division in all actions and proceedings brought against or by the

3-43  Division pursuant to the provisions of this chapter.

3-44      3.  The Attorney General shall render to the Commission and

3-45  the Division opinions upon all questions of law relating to the

4-1  construction or interpretation of this chapter, or arising in the

4-2  administration thereof, that may be submitted to him by the

4-3  Commission or the Division.

4-4  Sec. 19. 1.  The Commission may appoint one or more

4-5  hearing panels. Each hearing panel must consist of one or more

4-6  independent hearing officers.

4-7  2.  The Commission may by regulation delegate to one or

4-8  more hearing panels the power of the Commission to conduct

4-9  hearings and other proceedings, determine violations, impose

4-10  fines and penalties and take other disciplinary action authorized

4-11  by the provisions of this chapter.

4-12      3.  While acting under the authority of the Commission, a

4-13  hearing panel and its members are entitled to all privileges and

4-14  immunities and are subject to all duties and requirements of the

4-15  Commission and its members.

4-16      4.  A final order of a hearing panel:

4-17      (a) May be appealed to the Commission if, not later than 20

4-18  days after the date that the final order is issued by the hearing

4-19  panel, any party aggrieved by the final order files a written notice

4-20  of appeal with the Commission.

4-21      (b) Must be reviewed and approved by the Commission if, not

4-22  later than 40 days after the date that the final order is issued by

4-23  the hearing panel, the Division, upon the direction of the

4-24  Chairman of the Commission, provides written notice to all parties

4-25  of the intention of the Commission to review the final order.

4-26      Sec. 20. The Commission or a hearing panel may conduct a

4-27  hearing by means of an audio or video teleconference to one or

4-28  more locations if the audio or video technology used at the

4-29  hearing provides the persons present at each location with the

4-30  ability to hear and communicate with the persons present at each

4-31  other location.

4-32      Sec. 21. The Commission and its members, each hearing

4-33  panel and its members, the Administrator, the Ombudsman, the

4-34  Division, and the experts, attorneys, investigators, consultants and

4-35  other personnel of the Commission and the Division are immune

4-36  from any civil liability for any decision or action taken in good

4-37  faith and without malicious intent in carrying out the provisions of

4-38  this chapter.

4-39      Sec. 22. 1.  The Commission shall conduct such hearings

4-40  and other proceedings as are required by the provisions of this

4-41  chapter.

4-42      2.  The Commission shall collect and maintain or cause to be

4-43  collected and maintained accurate information relating to:

4-44      (a) The number and kind of common-interest communities in

4-45  this state;

5-1  (b) The effect of the provisions of this chapter and any

5-2  regulations adopted pursuant thereto on the development and

5-3  construction of common-interest communities, the residential

5-4  lending market for units within common-interest communities and

5-5  the operation and management of common-interest communities;

5-6  (c) Violations of the provisions of this chapter and any

5-7  regulations adopted pursuant thereto;

5-8  (d) The accessibility and use of, and the costs related to, the

5-9  arbitration and mediation procedures set forth in NRS 38.300 to

5-10  38.360, inclusive, and the decisions rendered and awards made

5-11  pursuant to those arbitration and mediation procedures;

5-12      (e) The number of foreclosures which were completed on units

5-13  within common-interest communities and which were based on

5-14  liens for the failure of the unit’s owner to pay any assessments

5-15  levied against the unit or any fines imposed against the unit’s

5-16  owner;

5-17      (f) The study of the reserves required by NRS 116.31152; and

5-18      (g) Other issues that the Commission determines are of

5-19  concern to units’ owners, associations, community managers,

5-20  developers and other persons affected by common-interest

5-21  communities.

5-22      3.  The Commission shall develop and promote:

5-23      (a) Educational guidelines for conducting the elections of the

5-24  members of an executive board, the meetings of an executive

5-25  board and the meetings of the units’ owners of an association; and

5-26      (b) Educational guidelines for the enforcement of the

5-27  governing documents of an association through liens, penalties

5-28  and fines.

5-29      4.  The Commission shall recommend and approve for

5-30  accreditation programs of education and research relating to

5-31  common-interest communities, including, without limitation:

5-32      (a) The management of common-interest communities;

5-33      (b) The sale and resale of units within common-interest

5-34  communities;

5-35      (c) Alternative methods that may be used to resolve disputes

5-36  relating to common-interest communities; and

5-37      (d) The enforcement, including by foreclosure, of liens on

5-38  units within common-interest communities for the failure of the

5-39  unit’s owner to pay any assessments levied against the unit or any

5-40  fines imposed against the unit’s owner.

5-41      Sec. 23. The Commission may:

5-42      1.  By regulation, establish standards for subsidizing

5-43  proceedings for mediation and arbitration conducted pursuant to

5-44  NRS 38.300 to 38.360, inclusive, to ensure that such proceedings

6-1  are not lengthy and are affordable and readily accessible to all

6-2  parties;

6-3  2.  By regulation, establish standards for subsidizing

6-4  educational programs for the benefit of units’ owners, members of

6-5  executive boards and officers of associations;

6-6  3.  Accept any gifts, grants or donations; and

6-7  4.  Enter into agreements with other entities that are required

6-8  or authorized to carry out similar duties in this state or in other

6-9  jurisdictions and cooperate with such entities to develop uniform

6-10  procedures for carrying out the provisions of this chapter and for

6-11  accumulating information needed to carry out those provisions.

6-12      Sec. 24. 1.  The Commission shall by regulation provide for

6-13  the issuance by the Division of certificates to community

6-14  managers. The regulations:

6-15      (a) Must establish the qualifications for the issuance of such a

6-16  certificate, including, without limitation, the education and

6-17  experience required to obtain such a certificate.

6-18      (b) May require applicants to pass an examination in order to

6-19  obtain a certificate. If the regulations require such an

6-20  examination, the Commission shall by regulation establish fees to

6-21  pay the costs of the examination, including any costs which are

6-22  necessary for the administration of the examination.

6-23      (c) May require an investigation of an applicant’s background.

6-24  If the regulations require such an investigation, the Commission

6-25  shall by regulation establish fees to pay the costs of the

6-26  investigation.

6-27      (d) Must establish the grounds for initiating disciplinary action

6-28  against a person to whom a certificate has been issued, including,

6-29  without limitation, the grounds for placing conditions, limitations

6-30  or restrictions on a certificate and for the suspension or revocation

6-31  of a certificate.

6-32      (e) Must establish rules of practice and procedure for

6-33  conducting disciplinary hearings.

6-34      2.  The Division may collect a fee for the issuance of a

6-35  certificate in an amount not to exceed the administrative costs of

6-36  issuing the certificate.

6-37      Sec. 25.  1.  An applicant for a certificate shall submit to the

6-38  Division:

6-39      (a) The social security number of the applicant; and

6-40      (b) The statement prescribed by the Welfare Division of the

6-41  Department of Human Resources pursuant to NRS 425.520. The

6-42  statement must be completed and signed by the applicant.

6-43      2.  The Division shall include the statement required pursuant

6-44  to subsection 1 in:

7-1  (a) The application or any other forms that must be submitted

7-2  for the issuance of the certificate; or

7-3  (b) A separate form prescribed by the Division.

7-4  3.  A certificate may not be issued if the applicant:

7-5  (a) Fails to submit the statement required pursuant to

7-6  subsection 1; or

7-7  (b) Indicates on the statement submitted pursuant to

7-8  subsection 1 that he is subject to a court order for the support of a

7-9  child and is not in compliance with the order or a plan approved

7-10  by the district attorney or other public agency enforcing the order

7-11  for the repayment of the amount owed pursuant to the order.

7-12      4.  If an applicant indicates on the statement submitted

7-13  pursuant to subsection 1 that he is subject to a court order for the

7-14  support of a child and is not in compliance with the order or a

7-15  plan approved by the district attorney or other public agency

7-16  enforcing the order for the repayment of the amount owed

7-17  pursuant to the order, the Division shall advise the applicant to

7-18  contact the district attorney or other public agency enforcing the

7-19  order to determine the actions that the applicant may take to

7-20  satisfy the arrearage.

7-21      Sec. 26.  1.  If the Division receives a copy of a court order

7-22  issued pursuant to NRS 425.540 that provides for the suspension

7-23  of all professional, occupational and recreational licenses,

7-24  certificates and permits issued to the holder of a certificate, the

7-25  Division shall deem the certificate to be suspended at the end of

7-26  the 30th day after the date the court order was issued unless the

7-27  Division receives a letter issued to the holder of the certificate by

7-28  the district attorney or other public agency pursuant to NRS

7-29  425.550 stating that the holder of the certificate has complied with

7-30  a subpoena or warrant or has satisfied the arrearage pursuant to

7-31  NRS 425.560.

7-32      2.  The Division shall reinstate a certificate that has been

7-33  suspended by a district court pursuant to NRS 425.540 if the

7-34  Division receives a letter issued by the district attorney or other

7-35  public agency pursuant to NRS 425.550 to the holder of the

7-36  certificate that he has complied with the subpoena or warrant or

7-37  has satisfied the arrearage pursuant to NRS 425.560.

7-38      Sec. 27. As used in sections 27 to 37, inclusive, of this act,

7-39  unless the context otherwise requires, “violation” means a

7-40  violation of any provision of this chapter, any regulation adopted

7-41  pursuant thereto or any order of the Commission or a hearing

7-42  panel.

7-43      Sec. 28. 1.  In carrying out the provisions of sections 27 to

7-44  37, inclusive, of this act, the Division and the Ombudsman have

7-45  jurisdiction to investigate and the Commission and each hearing

8-1  panel has jurisdiction to take appropriate action against any

8-2  person who commits a violation, including, without limitation:

8-3  (a) Any association and any officer, employee or agent of an

8-4  association.

8-5  (b) Any member of an executive board.

8-6  (c) Any community manager who holds a permit or certificate

8-7  and any other community manager.

8-8  (d) Any declarant or affiliate of a declarant.

8-9  (e) Any unit’s owner.

8-10      (f) Any tenant of a unit’s owner if the tenant has entered into

8-11  an agreement with the unit’s owner to abide by the governing

8-12  documents of the association and the provisions of this chapter

8-13  and any regulations adopted pursuant thereto.

8-14      2.  The jurisdiction set forth in subsection 1 applies to any

8-15  officer, employee or agent of an association or any member of an

8-16  executive board who commits a violation and who:

8-17      (a) Currently holds his office, employment, agency or position

8-18  or who held his office, employment, agency or position at the

8-19  commencement of proceedings against him.

8-20      (b) Resigns his office, employment, agency or position:

8-21          (1) After the commencement of proceedings against him; or

8-22          (2) Within 1 year after the violation is discovered or

8-23  reasonably should have been discovered.

8-24      Sec. 29. 1.  The rights, remedies and penalties provided by

8-25  sections 27 to 37, inclusive, of this act are cumulative and do not

8-26  abrogate and are in addition to any other rights, remedies and

8-27  penalties that may exist at law or in equity.

8-28      2.  If the Commission, a hearing panel or another agency or

8-29  officer elects to take a particular action or pursue a particular

8-30  remedy or penalty authorized by sections 27 to 37, inclusive, of

8-31  this act or another specific statute, that election is not exclusive

8-32  and does not preclude the Commission, the hearing panel or

8-33  another agency or officer from taking any other actions or

8-34  pursuing any other remedies or penalties authorized by sections 27

8-35  to 37, inclusive, of this act or another specific statute.

8-36      3.  In carrying out the provisions of sections 27 to 37,

8-37  inclusive, of this act, the Commission or a hearing panel shall not

8-38  intervene in any internal activities of an association except to the

8-39  extent necessary to prevent or remedy a violation.

8-40      Sec. 30. 1.  Except as otherwise provided in this section, a

8-41  person who is aggrieved by an alleged violation may, not later

8-42  than 1 year after the person discovers or reasonably should have

8-43  discovered the alleged violation, file with the Division a written

8-44  affidavit that sets forth the facts constituting the alleged violation.

9-1  The affidavit may allege any actual damages suffered by the

9-2  aggrieved person as a result of the alleged violation.

9-3  2.  An aggrieved person may not file such an affidavit unless

9-4  the aggrieved person has, on at least two separate occasions,

9-5  provided the respondent by certified mail, return receipt requested,

9-6  with written notices of the alleged violation set forth in the

9-7  affidavit. The notices must:

9-8  (a) Be mailed to the respondent’s last known address.

9-9  (b) Be mailed at least 15 days apart.

9-10      (c) Specify, in reasonable detail, the alleged violation, any

9-11  actual damages suffered by the aggrieved person as a result of the

9-12  alleged violation, and any corrective action proposed by the

9-13  aggrieved person.

9-14      3.  A written affidavit filed with the Division pursuant to this

9-15  section must be:

9-16      (a) On a form prescribed by the Division.

9-17      (b) Be accompanied by evidence that:

9-18          (1) The respondent has been given a reasonable

9-19  opportunity after receiving the written notices to correct the

9-20  alleged violation; and

9-21          (2) Reasonable efforts to resolve the alleged violation have

9-22  failed.

9-23      4.  The Commission or a hearing panel may impose an

9-24  administrative fine of not more than $1,000 against any person

9-25  who knowingly files a false or fraudulent affidavit with the

9-26  Division.

9-27      Sec. 31.  1.  Upon receipt of an affidavit that complies with

9-28  the provisions of section 30 of this act, the Division shall refer the

9-29  affidavit to the Ombudsman.

9-30      2.  The Ombudsman shall give such guidance to the parties as

9-31  the Ombudsman deems necessary to assist the parties to resolve

9-32  the alleged violation.

9-33      3.  If the parties are unable to resolve the alleged violation

9-34  with the assistance of the Ombudsman, the Ombudsman shall

9-35  provide to the Division a report concerning the alleged violation

9-36  and any information collected by the Ombudsman during his

9-37  efforts to assist the parties to resolve the alleged violation.

9-38      4.  Upon receipt of the report from the Ombudsman, the

9-39  Division shall conduct an investigation to determine whether good

9-40  cause exists to proceed with a hearing on the alleged violation.

9-41      5.  If, after investigating the alleged violation, the Division

9-42  determines that the allegations in the affidavit are not frivolous,

9-43  false or fraudulent and that good cause exists to proceed with a

9-44  hearing on the alleged violation, the Administrator shall file a

10-1  formal complaint with the Commission and schedule a hearing on

10-2  the complaint before the Commission or a hearing panel.

10-3      Sec. 32. 1.  Except as otherwise provided in subsection 2, if

10-4  the Administrator files a formal complaint with the Commission,

10-5  the Commission or a hearing panel shall hold a hearing on the

10-6  complaint not later than 90 days after the date that the complaint

10-7  is filed.

10-8      2.  The Commission or the hearing panel may continue the

10-9  hearing upon its own motion or upon the written request of a party

10-10  to the complaint, for good cause shown, including, without

10-11  limitation, the existence of proceedings for mediation or

10-12  arbitration or a civil action involving the facts that constitute the

10-13  basis of the complaint.

10-14     3.  The Division shall give the respondent written notice of the

10-15  date, time and place of the hearing on the complaint at least 30

10-16  days before the date of the hearing. The notice must be:

10-17     (a) Delivered personally to the respondent or mailed to the

10-18  respondent by certified mail, return receipt requested, to his last

10-19  known address.

10-20     (b) Accompanied by:

10-21         (1) A copy of the complaint; and

10-22         (2) Copies of all communications, reports, affidavits and

10-23  depositions in the possession of the Division that are relevant to

10-24  the complaint.

10-25     4.  At any hearing on the complaint, the Division may not

10-26  present evidence that was obtained after the notice was given to

10-27  the respondent pursuant to this section, unless the Division proves

10-28  to the satisfaction of the Commission or the hearing panel that:

10-29     (a) The evidence was not available, after diligent investigation

10-30  by the Division, before such notice was given to the respondent;

10-31  and

10-32     (b) The evidence was given or communicated to the respondent

10-33  immediately after it was obtained by the Division.

10-34     5.  The respondent must file an answer not later than 30 days

10-35  after the date that notice of the complaint is delivered or mailed by

10-36  the Division. The answer must:

10-37     (a) Contain an admission or a denial of the allegations

10-38  contained in the complaint and any defenses upon which the

10-39  respondent will rely; and

10-40     (b) Be delivered personally to the Division or mailed to the

10-41  Division by certified mail, return receipt requested.

10-42     6.  If the respondent does not file an answer within the time

10-43  required by subsection 5, the Division may, after giving the

10-44  respondent written notice of the default, request the Commission

10-45  or the hearing panel to enter a finding of default against the

11-1  respondent. The notice of the default must be delivered personally

11-2  to the respondent or mailed to the respondent by certified mail,

11-3  return receipt requested, to his last known address.

11-4      Sec. 33. Any party to the complaint may be represented by an

11-5  attorney at any hearing on the complaint.

11-6      Sec. 34. 1.  After conducting its hearings on the complaint,

11-7  the Commission or the hearing panel shall render a final decision

11-8  on the merits of the complaint not later than 20 days after the date

11-9  of the final hearing.

11-10     2.  The Commission or the hearing panel shall notify all

11-11  parties to the complaint of its decision in writing by certified mail,

11-12  return receipt requested, not later than 60 days after the date of

11-13  the final hearing. The written decision must include findings of

11-14  fact and conclusions of law.

11-15     Sec. 35. 1.  If the Commission or the hearing panel, after

11-16  notice and hearing, finds that the respondent has committed a

11-17  violation, the Commission or the hearing panel may take any or

11-18  all of the following actions:

11-19     (a) Issue an order directing the respondent to cease and desist

11-20  from continuing to engage in the unlawful conduct that resulted

11-21  in the violation.

11-22     (b) Issue an order directing the respondent to take affirmative

11-23  action to correct any conditions resulting from the violation.

11-24     (c) Impose an administrative fine of not more than $1,000 for

11-25  each violation.

11-26     2.  If the respondent is a member of an executive board or an

11-27  officer of an association, the Commission or the hearing panel

11-28  may order the respondent removed from his office or position if

11-29  the Commission or the hearing panel, after notice and hearing,

11-30  finds that:

11-31     (a) The respondent has knowingly and willfully committed a

11-32  violation; and

11-33     (b) The removal is in the best interest of the association.

11-34     3.  If the respondent violates any order issued by the

11-35  Commission or the hearing panel pursuant to this section, the

11-36  Commission or the hearing panel, after notice and hearing, may

11-37  impose an administrative fine of not more than $1,000 for each

11-38  violation.

11-39     4.  If the Commission or the hearing panel takes any

11-40  disciplinary action pursuant to this section, the Commission or the

11-41  hearing panel may order the respondent to pay the costs of the

11-42  proceedings incurred by the Division, including, without

11-43  limitation, the cost of the investigation and reasonable attorney’s

11-44  fees.

12-1      5.  Notwithstanding any other provision of this section, if the

12-2  respondent is a member of an executive board or an officer of an

12-3  association:

12-4      (a) The association is liable for all fines and costs imposed

12-5  against the respondent pursuant to this section; and

12-6      (b) The respondent may not be held personally liable for those

12-7  fines and costs.

12-8      Sec. 36. If the Commission or a hearing panel, after notice

12-9  and hearing, finds that the executive board of an association or

12-10  any person acting on behalf of the association has committed a

12-11  violation, the Commission or the hearing panel may take any or

12-12  all of the following actions:

12-13     1.  Order an audit of the association.

12-14     2.  Require the executive board to hire a community manager

12-15  who holds a permit or certificate.

12-16     Sec. 37.  1.  If the Commission or the Division has

12-17  reasonable cause to believe, based on evidence satisfactory to it,

12-18  that any person has committed a violation or will continue to

12-19  commit violations, the Commission or the Division may bring an

12-20  action in the district court for the county in which the person

12-21  resides or, if the person does not reside in this state, in any court

12-22  of competent jurisdiction in this state, to enjoin that person from

12-23  continuing to commit the violations or from doing any act in

12-24  furtherance of the violations.

12-25     2.  The action must be brought in the name of the State of

12-26  Nevada.

12-27     3.  The court may issue the injunction without:

12-28     (a) Proof of actual damages sustained by any person.

12-29     (b) The filing of any bond.

12-30     Sec. 38.  1.  Notwithstanding any provision of the governing

12-31  documents to the contrary, and except as otherwise provided in

12-32  this section, a unit’s owner is entitled to display the flag of the

12-33  United States, in a manner that is consistent with the Federal Flag

12-34  Code, from or on:

12-35     (a) A flagpole or staff which is located on exterior property

12-36  within the boundaries of his unit or which is attached to an

12-37  exterior limited common element that forms a part of the

12-38  boundaries of his unit.

12-39     (b) A window, ledge, sill, railing, patio, terrace or balcony of

12-40  his unit or an exterior limited common element that forms a part

12-41  of the boundaries of his unit, whether or not the flag is displayed

12-42  from a flagpole or staff.

12-43     2.  An association may adopt rules that:

12-44     (a) Prohibit the display of the flag of the United States in a

12-45  manner that is inconsistent with the Federal Flag Code.

13-1      (b) Prohibit the display of the flag of the United States if the

13-2  flag exceeds 4 feet in its vertical dimension or 6 feet in its

13-3  horizontal dimension. For the purposes of this paragraph, the

13-4  horizontal dimension of the flag is the dimension that is parallel

13-5  with the horizontal stripes of the flag, regardless of the position in

13-6  which the flay is displayed.

13-7      (c) Establish a maximum number of flags of the United States

13-8  that may be displayed from, on or around the exterior of a unit.

13-9  The maximum number may be one.

13-10     (d) Prohibit the display of the flag of the United States from a

13-11  flagpole or staff that exceeds 25 feet in height.

13-12     (e) Prohibit the display of the flag of the United States in a

13-13  manner that poses a real and substantial danger to health or

13-14  safety.

13-15     3.  As used in this section:

13-16     (a) “Federal Flag Code” means the rules and customs

13-17  pertaining to the display and use of the flag of the United States

13-18  which are codified in 4 U.S.C. §§ 5 to 10, inclusive, as altered,

13-19  modified or repealed by the President of the United States

13-20  pursuant to 4 U.S.C. § 10, and any additional rules pertaining to

13-21  the display and use of the flag of the United States which are

13-22  prescribed by the President pursuant to 4 U.S.C. § 10.

13-23     (b) “Flag of the United States” does not include a depiction or

13-24  emblem of the flag of the United States that is made of balloons,

13-25  flora, lights, paint, paving materials, roofing, siding or any other

13-26  similar building, decorative or landscaping component or

13-27  material.

13-28     Sec. 39.  1.  If an executive board receives a written

13-29  complaint from a unit’s owner alleging that the executive board

13-30  has violated any provision of this chapter or any provision of the

13-31  governing documents of the association, the executive board shall,

13-32  if action is required by the executive board, place the subject of the

13-33  complaint on the agenda of the next regularly scheduled meeting

13-34  of the executive board.

13-35     2.  Not later than 10 business days after the date that the

13-36  association receives such a complaint, the executive board or an

13-37  authorized representative of the association shall acknowledge the

13-38  receipt of the complaint and notify the unit’s owner that, if action

13-39  is required by the executive board, the subject of the complaint will

13-40  be placed on the agenda of the next regularly scheduled meeting

13-41  of the executive board.

13-42     Sec. 40.  A member of an executive board, an officer of an

13-43  association or a community manager shall not solicit or accept

13-44  any form of compensation, gratuity or other remuneration that:

14-1      1.  Would improperly influence or would appear to a

14-2  reasonable person to improperly influence the decisions made by

14-3  those persons; or

14-4      2.  Would result or would appear to a reasonable person to

14-5  result in a conflict of interest for those persons.

14-6      Sec. 41.  An executive board, a member of an executive board

14-7  or an officer, employee or agent of an association shall not take,

14-8  or direct or encourage another person to take, any retaliatory

14-9  action against a unit’s owner because the unit’s owner has:

14-10     1.  Complained in good faith about any alleged violation of

14-11  any provision of this chapter or the governing documents of the

14-12  association; or

14-13     2.  Requested in good faith to review the books, records or

14-14  other papers of the association.

14-15     Sec. 42.  1.  Except as otherwise provided in this section, a

14-16  member of an executive board or an officer of an association shall

14-17  not:

14-18     (a) On or after October 1, 2003, enter into a contract or renew

14-19  a contract with the association to provide goods or services to the

14-20  association; or

14-21     (b) Otherwise accept any commission, personal profit or

14-22  compensation of any kind from the association for providing

14-23  goods or services to the association.

14-24     2.  The provisions of this section do not prohibit a declarant,

14-25  an affiliate of a declarant or an officer, employee or agent of a

14-26  declarant or an affiliate of a declarant from:

14-27     (a) Receiving any commission, personal profit or

14-28  compensation from the association, the declarant or an affiliate of

14-29  the declarant for any goods or services furnished to the

14-30  association;

14-31     (b) Entering into contracts with the association, the declarant

14-32  or affiliate of the declarant; or

14-33     (c) Serving as a member of the executive board or as an officer

14-34  of the association.

14-35     Sec. 43.  1.  If a common-interest community is developed in

14-36  separate phases and any declarant or successor declarant is

14-37  constructing any common elements that will be added to the

14-38  association’s common elements after the date on which the units’

14-39  owners other than the declarant may elect a majority of the

14-40  members of the executive board, the declarant or successor

14-41  declarant who is constructing such additional common elements is

14-42  responsible for:

14-43     (a) Paying all expenses related to the additional common

14-44  elements which are incurred before the conveyance of the

14-45  additional common elements to the association; and

15-1      (b) Except as otherwise provided in NRS 116.31038, delivering

15-2  to the association that declarant’s share of the amount specified in

15-3  the study of the reserves completed pursuant to subsection 2.

15-4      2.  Before conveying the additional common elements to the

15-5  association, the declarant or successor declarant who constructed

15-6  the additional common elements shall deliver to the association a

15-7  study of the reserves for the additional common elements which

15-8  satisfies the requirements of NRS 116.31152.

15-9      3.  As used in this section, “successor declarant” includes,

15-10  without limitation, any successor declarant who does not control

15-11  the association established by the initial declarant.

15-12     Sec. 44.  1.  Except as otherwise provided in subsection 2, in

15-13  a county whose population is 400,000 or more, a person who

15-14  owns, or directly or indirectly has an interest in, one or more units

15-15  within a planned community that are restricted to residential use

15-16  by the declaration, may use that unit or one of those units for a

15-17  transient commercial use only if:

15-18     (a) The governing documents of the association and any

15-19  master association do not prohibit such use;

15-20     (b) The executive board of the association and any master

15-21  association approve the transient commercial use of the unit,

15-22  except that such approval is not required if the planned

15-23  community and one or more hotels are subject to the governing

15-24  documents of a master association and those governing documents

15-25  do not prohibit such use; and

15-26     (c) The unit is properly zoned for the transient commercial use

15-27  and any license required by the local government for the transient

15-28  commercial use is obtained.

15-29     2.  In a county whose population is 400,000 or more, a

15-30  declarant who owns, or directly or indirectly has an interest in,

15-31  one or more units within a planned community under the

15-32  governing documents of the association that are restricted to

15-33  residential use by the declaration, may use that unit or those units

15-34  for a transient commercial use during the period that the

15-35  declarant is offering units for sale within the planned community

15-36  if such use complies with the requirements set forth in paragraphs

15-37  (a) and (c) of subsection 1.

15-38     3.  The association and any master association may establish

15-39  requirements for the transient commercial use of a unit pursuant

15-40  to the provisions of this section, including, without limitation, the

15-41  payment of additional fees that are related to any increase in

15-42  services or other costs associated with the transient commercial

15-43  use of the unit.

15-44     4.  As used in this section:

16-1      (a) “Remuneration” means any compensation, money, rent or

16-2  other valuable consideration given in return for the occupancy,

16-3  possession or use of a unit.

16-4      (b) “Transient commercial use” means the use of a unit, for

16-5  remuneration, as a hostel, hotel, inn, motel, resort, vacation rental

16-6  or other form of transient lodging if the term of the occupancy,

16-7  possession or use of the unit is for less than 30 consecutive

16-8  calendar days.

16-9      Sec. 45.  The executive board of a master association of any

16-10  common-interest community that was created before January 1,

16-11  1975, and is located in a county whose population is 400,000 or

16-12  more may record an amendment to the declaration pursuant to

16-13  which the master association reallocates the costs of administering

16-14  the common elements of the master association among the units of

16-15  the common-interest community uniformly and based upon the

16-16  actual costs associated with each unit.

16-17     Sec. 46. 1.  If the declaration so provides, in a common-

16-18  interest community that consists of at least 1,000 units, the voting

16-19  rights of the units’ owners in the association for that common-

16-20  interest community may be exercised by delegates or

16-21  representatives.

16-22     2.  In addition to a common-interest community identified in

16-23  subsection 1, if the declaration so provides, in a common-interest

16-24  community created before October 1, 1999, the voting rights of the

16-25  units’ owners in the association for that common-interest

16-26  community may be exercised by delegates or representatives.

16-27     3.  For the purposes of subsection 1, each unit that a

16-28  declarant has reserved the right to create pursuant to NRS

16-29  116.2105 and for which developmental rights exist must be

16-30  counted in determining the number of units in a common-interest

16-31  community.

16-32     Sec. 47. 1.  A unit’s owner shall adhere to a schedule

16-33  required by the association for:

16-34     (a) The completion of the design of a unit or the design of an

16-35  improvement to a unit;

16-36     (b) The commencement of the construction of a unit or the

16-37  construction of an improvement to a unit;

16-38     (c) The completion of the construction of a unit or the

16-39  construction of an improvement to the unit; or

16-40     (d) The issuance of a permit which is necessary for the

16-41  occupancy of a unit or for the use of an improvement to a unit.

16-42     2.  The association may impose and enforce a construction

16-43  penalty against a unit’s owner who fails to adhere to a schedule as

16-44  required pursuant to subsection 1 if:

17-1      (a) The maximum amount of the construction penalty and the

17-2  schedule are set forth in:

17-3          (1) The declaration;

17-4          (2) Another document related to the common-interest

17-5  community that is recorded before the date on which the unit’s

17-6  owner acquired title to the unit; or

17-7          (3) A contract between the unit’s owner and the

17-8  association; and

17-9      (b) The unit’s owner receives notice of the alleged violation

17-10  which informs him that he has a right to a hearing on the alleged

17-11  violation.

17-12     3.  For the purposes of this chapter, a construction penalty is

17-13  not a fine.

17-14     Sec. 48. If a matter governed by this chapter is also governed

17-15  by chapter 82 of NRS and there is a conflict between the

17-16  provisions of this chapter and the provisions of chapter 82 of NRS,

17-17  the provisions of this chapter prevail.

17-18     Sec. 49.  NRS 116.1103 is hereby amended to read as follows:

17-19      116.1103  [In] As used in this chapter and in the declaration

17-20  and bylaws [(NRS 116.3106), unless specifically provided otherwise

17-21  or] of an association, unless the context otherwise requires, [and in

17-22  this chapter,] the words and terms defined in NRS 116.110305 to

17-23  116.110393, inclusive, and sections 2 to 12, inclusive, of this act

17-24  have the meanings ascribed to them in those sections.

17-25     Sec. 50.  NRS 116.110305 is hereby amended to read as

17-26  follows:

17-27      116.110305  “Administrator” means the Real Estate

17-28  Administrator . [of the Real Estate Division of the Department of

17-29  Business and Industry.]

17-30     Sec. 51. NRS 116.11145 is hereby amended to read as

17-31  follows:

17-32      116.11145  1.  To carry out the purposes of this chapter, the

17-33  [Real Estate] Commission, or any member thereof [,] acting on

17-34  behalf of the Commission or acting on behalf of a hearing panel,

17-35  may issue subpoenas to compel the attendance of witnesses and the

17-36  production of books, records and other papers.

17-37     2.  If any person fails to comply with a subpoena issued by the

17-38  Commission or any member thereof pursuant to this section within

17-39  [10] 20 days after [its issuance,] the date of service of the

17-40  subpoena, the Commission may petition the district court for an

17-41  order of the court compelling compliance with the subpoena.

17-42     3.  Upon such a petition, the court shall enter an order directing

17-43  the person subpoenaed to appear before the court at a time and place

17-44  to be fixed by the court in its order, the time to be not more than

17-45  [10] 20 days after the date of service of the order, and show cause

18-1  why he has not complied with the subpoena. A certified copy must

18-2  be served upon the person subpoenaed.

18-3      4.  If it appears to the court that the subpoena was regularly

18-4  issued by the Commission [,] or any member thereof pursuant to

18-5  this section, the court shall enter an order compelling compliance

18-6  with the subpoena, and upon failure to obey the order the person

18-7  shall be dealt with as for contempt of court.

18-8      Sec. 52.  NRS 116.1116 is hereby amended to read as follows:

18-9      116.1116  1.  The Office of the Ombudsman for Owners in

18-10  Common-Interest Communities is hereby created within the [Real

18-11  Estate Division of the Department of Business and Industry.]

18-12  Division.

18-13     2.  The Administrator shall appoint the Ombudsman . [for

18-14  Owners in Common-Interest Communities.] The Ombudsman [for

18-15  Owners in Common-Interest Communities] is in the unclassified

18-16  service of the State.

18-17     3.  The Ombudsman [for Owners in Common-Interest

18-18  Communities] must be qualified by training and experience to

18-19  perform the duties and functions of his office.

18-20     4.  [The Ombudsman for Owners in Common-Interest

18-21  Communities] In addition to any other duties set forth in this

18-22  chapter, the Ombudsman shall:

18-23     (a) Assist in processing claims submitted to mediation or

18-24  arbitration pursuant to NRS 38.300 to 38.360, inclusive;

18-25     (b) Assist owners in common-interest communities to

18-26  understand their rights and responsibilities as set forth in this

18-27  chapter and the governing documents of their associations,

18-28  including, without limitation, publishing materials related to those

18-29  rights and responsibilities;

18-30     (c) Assist [persons appointed or elected to serve on] members of

18-31  executive boards and officers of associations to carry out their

18-32  duties; [and]

18-33     (d) When appropriate, investigate disputes involving the

18-34  provisions of this chapter or the governing documents of an

18-35  association and assist in resolving such disputes; and

18-36     (e) Compile and maintain a registration of each association

18-37  organized within the State which includes, without limitation [:] ,

18-38  the following information:

18-39         (1) The name, address and telephone number of the

18-40  association;

18-41         (2) The name of [the person engaged in property

18-42  management] each community manager for the common-interest

18-43  community [or] and the name of [the] any other person who

18-44  [manages] is authorized to manage the property at the site of the

18-45  common-interest community;

19-1          (3) The names, mailing addresses and telephone numbers of

19-2  the members of the executive board of the association;

19-3          (4) The name of the declarant;

19-4          (5) The number of units in the common-interest community;

19-5  [and]

19-6          (6) The total annual assessment made by the association[.] ;

19-7          (7) The number of foreclosures which were completed on

19-8  units within the common-interest community and which were

19-9  based on liens for the failure of the unit’s owner to pay any

19-10  assessments levied against the unit or any fines imposed against

19-11  the unit’s owner; and

19-12         (8) Whether the study of the reserves of the association has

19-13  been conducted pursuant to NRS 116.31152 and, if so, the date on

19-14  which it was completed.

19-15     Sec. 53.  NRS 116.1117 is hereby amended to read as follows:

19-16      116.1117  1.  There is hereby created the Account for [the

19-17  Ombudsman for Owners in] Common-Interest Communities in

19-18  the State General Fund. The Account must be administered by the

19-19  Administrator.

19-20     2.  [The] Except as otherwise provided in subsection 3, all

19-21  money received by the Commission, a hearing panel or the

19-22  Division pursuant to this chapter, including, without limitation,

19-23  the fees collected pursuant to NRS 116.31155 , must be [credited to]

19-24  deposited into the Account.

19-25     3.  If the Commission imposes a fine or penalty, the

19-26  Commission shall deposit the money collected from the imposition

19-27  of the fine or penalty with the State Treasurer for credit to the

19-28  State General Fund. If the money is so deposited, the Commission

19-29  may present a claim to the State Board of Examiners for

19-30  recommendation to the Interim Finance Committee if money is

19-31  required to pay attorney’s fees or the costs of an investigation, or

19-32  both.

19-33     4.  The interest and income earned on the money in the

19-34  Account, after deducting any applicable charges, must be credited to

19-35  the Account.

19-36     [4.] 5. The money in the Account must be used solely to defray

19-37  [the] :

19-38     (a) The costs and expenses of [administering] the Commission

19-39  and the Office of the Ombudsman [for Owners in Common -Interest

19-40  Communities and for the payment of fees for a mediator or an

19-41  arbitrator] ; and

19-42     (b) If authorized by the Commission or any regulations

19-43  adopted by the Commission, the costs and expenses of subsidizing

19-44  proceedings for mediation and arbitration conducted pursuant to

19-45  NRS [38.330.] 38.300 to 38.360, inclusive.

20-1      Sec. 54.  NRS 116.1201 is hereby amended to read as follows:

20-2      116.1201  1.  Except as otherwise provided in this section and

20-3  NRS 116.1203, this chapter applies to all common-interest

20-4  communities created within this state.

20-5      2.  This chapter does not apply to:

20-6      (a) Associations created for the limited purpose of maintaining:

20-7          (1) The landscape of the common elements of a common-

20-8  interest community;

20-9          (2) Facilities for flood control; or

20-10         (3) A rural agricultural residential common-interest

20-11  community.

20-12     (b) A planned community in which all units are restricted

20-13  exclusively to nonresidential use unless the declaration provides that

20-14  [the] this chapter does apply to that planned community. This

20-15  chapter applies to a planned community containing both units that

20-16  are restricted exclusively to nonresidential use and other units that

20-17  are not so restricted[,] only if the declaration so provides or if the

20-18  real estate comprising the units that may be used for residential

20-19  purposes would be a planned community in the absence of the units

20-20  that may not be used for residential purposes.

20-21     (c) Common-interest communities or units located outside of

20-22  this state, but the provisions of NRS 116.4102 to 116.4108,

20-23  inclusive, apply to all contracts for the disposition thereof signed in

20-24  this state by any party unless exempt under subsection 2 of

20-25  NRS 116.4101.

20-26     (d) A common-interest community that was created before

20-27  January 1, 1992, is located in a county whose population is less

20-28  than 50,000, and has less than 50 percent of the units within the

20-29  community put to residential use, unless a majority of the units’

20-30  owners otherwise elect in writing.

20-31     (e) Except as otherwise provided in this chapter, time shares

20-32  governed by the provisions of chapter 119A of NRS.

20-33     3.  The provisions of this chapter do not:

20-34     (a) Prohibit a common-interest community created before

20-35  January 1, 1992, from providing for separate classes of voting for

20-36  the units’ owners of the association;

20-37     (b) Require a common-interest community created before

20-38  January 1, 1992, to comply with the provisions of NRS 116.2101 to

20-39  116.2122, inclusive;

20-40     (c) Invalidate any assessments that were imposed on or before

20-41  October 1, 1999, by a common-interest community created before

20-42  January 1, 1992; or

20-43     (d) Prohibit a common-interest community created before

20-44  January 1, 1992, or a common-interest community described in

21-1  section 46 of this act from providing for a representative form of

21-2  government.

21-3      4.  The provisions of chapters 117 and 278A of NRS do not

21-4  apply to common-interest communities.

21-5      5.  [For the purposes of this section, the Administrator] The

21-6  Commission shall establish, by regulation, the criteria for

21-7  determining whether an association [is created for the limited

21-8  purpose of maintaining the landscape of the common elements of a

21-9  common-interest community, maintaining facilities for flood control

21-10  or maintaining a rural agricultural residential] or a common-interest

21-11  community [.] satisfies the requirements for an exemption from

21-12  any provision of this chapter.

21-13     Sec. 55. NRS 116.1203 is hereby amended to read as follows:

21-14      116.1203  1.  Except as otherwise provided in subsection 2, if

21-15  a planned community contains no more than 12 units and is not

21-16  subject to any developmental rights, it is subject only to NRS

21-17  116.1105, 116.1106 and 116.1107 unless the declaration provides

21-18  that this entire chapter is applicable.

21-19     2.  Except for NRS 116.3104, 116.31043, 116.31046 and

21-20  116.31138, the provisions of NRS 116.3101 to 116.3119, inclusive,

21-21  and section 47 of this act and the definitions set forth in NRS

21-22  116.110305 to 116.110393, inclusive, and sections 2 to 12,

21-23  inclusive, of this act, to the extent that such definitions are

21-24  necessary in construing any of those [sections,] provisions, apply to

21-25  a residential planned community containing more than six units.

21-26     Sec. 56.  NRS 116.1206 is hereby amended to read as follows:

21-27      116.1206  1.  Any provision contained in a declaration, bylaw

21-28  or other governing document of a common-interest community

21-29  [created before January 1, 1992, that does not conform to] that

21-30  violates the provisions of this chapter shall be deemed to conform

21-31  with those provisions by operation of law, and any such declaration,

21-32  bylaw or other governing document is not required to be amended to

21-33  conform to those provisions.

21-34     2.  In the case of amendments to the declaration, bylaws or plats

21-35  and plans of any common-interest community created before

21-36  January 1, 1992:

21-37     (a) If the result accomplished by the amendment was permitted

21-38  by law before January 1, 1992, the amendment may be made either

21-39  in accordance with that law, in which case that law applies to that

21-40  amendment, or it may be made under this chapter; and

21-41     (b) If the result accomplished by the amendment is permitted by

21-42  this chapter, and was not permitted by law before January 1, 1992,

21-43  the amendment may be made under this chapter.

21-44     3.  An amendment to the declaration, bylaws or plats and plans

21-45  authorized by this section to be made under this chapter must be

22-1  adopted in conformity with the applicable provisions of chapter 117

22-2  or 278A of NRS and with the procedures and requirements specified

22-3  by those instruments. If an amendment grants to any person any

22-4  rights, powers or privileges permitted by this chapter, all correlative

22-5  obligations, liabilities and restrictions in this chapter also apply to

22-6  that person.

22-7      Sec. 57.  NRS 116.2103 is hereby amended to read as follows:

22-8      116.2103  1.  [All provisions of the declaration and bylaws are

22-9  severable.] The inclusion in a governing document of an

22-10  association of a provision that violates any provision of this

22-11  chapter does not render any other provisions of the governing

22-12  document invalid or otherwise unenforceable if the other

22-13  provisions can be given effect in accordance with their original

22-14  intent and the provisions of this chapter.

22-15     2.  The rule against perpetuities and NRS 111.103 to 111.1039,

22-16  inclusive, do not apply to defeat any provision of the declaration,

22-17  bylaws, rules or regulations adopted pursuant to NRS 116.3102.

22-18     3.  In the event of a conflict between the provisions of the

22-19  declaration and the bylaws, the declaration prevails except to the

22-20  extent the declaration is inconsistent with this chapter.

22-21     4.  Title to a unit and common elements is not rendered

22-22  unmarketable or otherwise affected by reason of an insubstantial

22-23  failure of the declaration to comply with this chapter. Whether a

22-24  substantial failure impairs marketability is not affected by this

22-25  chapter.

22-26     Sec. 58. NRS 116.2111 is hereby amended to read as follows:

22-27      116.2111  [Subject]

22-28     1.  Except as otherwise provided in this section and subject to

22-29  the provisions of the declaration and other provisions of law, a

22-30  unit’s owner:

22-31     [1.] (a) May make any improvements or alterations to his unit

22-32  that do not impair the structural integrity or mechanical systems or

22-33  lessen the support of any portion of the common-interest

22-34  community;

22-35     [2.] (b) May not change the appearance of the common

22-36  elements, or the exterior appearance of a unit or any other portion of

22-37  the common-interest community, without permission of the

22-38  association; and

22-39     [3.] (c) After acquiring an adjoining unit or an adjoining part of

22-40  an adjoining unit, may remove or alter any intervening partition or

22-41  create apertures therein, even if the partition in whole or in part is a

22-42  common element, if those acts do not impair the structural integrity

22-43  or mechanical systems or lessen the support of any portion of the

22-44  common-interest community. Removal of partitions or creation of

23-1  apertures under this [subsection] paragraph is not an alteration of

23-2  boundaries.

23-3      2.  An association may not:

23-4      (a) Unreasonably restrict, prohibit or otherwise impede the

23-5  lawful rights of a unit’s owner to have reasonable access to his

23-6  unit.

23-7      (b) Unreasonably restrict, prohibit or withhold approval for a

23-8  unit’s owner to add to a unit:

23-9          (1) Improvements such as ramps, railings or elevators that

23-10  are necessary to improve access to the unit for any occupant of the

23-11  unit who has a disability;

23-12         (2) Additional locks to improve the security of the unit; or

23-13         (3) Shutters to improve the security of the unit or to aid in

23-14  reducing the costs of energy for the unit.

23-15     3.  Any improvement or alteration made pursuant to

23-16  subsection 2 that is visible from any other portion of the common-

23-17  interest community must be installed, constructed or added in

23-18  accordance with the procedures set forth in the governing

23-19  documents of the association and must be selected or designed to

23-20  the maximum extent practicable to be compatible with the style of

23-21  the common-interest community.

23-22     Sec. 59. NRS 116.212 is hereby amended to read as follows:

23-23      116.212  1.  If the declaration provides that any of the powers

23-24  described in NRS 116.3102 are to be exercised by or may be

23-25  delegated to a profit or nonprofit corporation that exercises those or

23-26  other powers on behalf of one or more common-interest

23-27  communities or for the benefit of the units’ owners of one or more

23-28  common-interest communities, or on behalf of a common-interest

23-29  community and a time-share plan created pursuant to chapter 119A

23-30  of NRS, all provisions of this chapter applicable to unit-owners’

23-31  associations apply to any such corporation, except as modified by

23-32  this section.

23-33     2.  Unless it is acting in the capacity of an association described

23-34  in NRS 116.3101, a master association may exercise the powers set

23-35  forth in paragraph (b) of subsection 1 of NRS 116.3102 only to the

23-36  extent expressly permitted in:

23-37     (a) The declarations of common-interest communities which are

23-38  part of the master association or expressly described in the

23-39  delegations of power from those common-interest communities to

23-40  the master association; or

23-41     (b) The declaration of the common-interest community which is

23-42  a part of the master association and the time-share instrument

23-43  creating the time-share plan governed by the master association.

23-44     3.  If the declaration of any common-interest community

23-45  provides that the executive board may delegate certain powers to a

24-1  master association, the members of the executive board have no

24-2  liability for the acts or omissions of the master association with

24-3  respect to those powers following delegation.

24-4      4.  The rights and responsibilities of units’ owners with respect

24-5  to the unit-owners’ association set forth in NRS 116.3103 [to

24-6  116.31038, inclusive,] , 116.31032, 116.31034, 116.31036,

24-7  116.3108, 116.31085, 116.3109, 116.311 and 116.3112 and section

24-8  46 of this act apply in the conduct of the affairs of a master

24-9  association only to persons who elect the board of a master

24-10  association, whether or not those persons are otherwise units’

24-11  owners within the meaning of this chapter.

24-12     5.  Even if a master association is also an association described

24-13  in NRS 116.3101, the certificate of incorporation or other

24-14  instrument creating the master association and the declaration of

24-15  each common-interest community, the powers of which are assigned

24-16  by the declaration or delegated to the master association, may

24-17  provide that the executive board of the master association must be

24-18  elected after the period of the declarant’s control in any of the

24-19  following ways:

24-20     (a) All units’ owners of all common-interest communities

24-21  subject to the master association may elect all members of the

24-22  master association’s executive board.

24-23     (b) All members of the executive boards of all common-interest

24-24  communities subject to the master association may elect all

24-25  members of the master association’s executive board.

24-26     (c) All units’ owners of each common-interest community

24-27  subject to the master association may elect specified members of the

24-28  master association’s executive board.

24-29     (d) All members of the executive board of each common-interest

24-30  community subject to the master association may elect specified

24-31  members of the master association’s executive board.

24-32     Sec. 60. NRS 116.3102 is hereby amended to read as follows:

24-33      116.3102  1.  Except as otherwise provided in subsection 2,

24-34  and subject to the provisions of the declaration, the association may:

24-35     (a) Adopt and amend bylaws, rules and regulations;

24-36     (b) Adopt and amend budgets for revenues, expenditures and

24-37  reserves and collect assessments for common expenses from units’

24-38  owners;

24-39     (c) Hire and discharge managing agents and other employees,

24-40  agents and independent contractors;

24-41     (d) Institute, defend or intervene in litigation or administrative

24-42  proceedings in its own name on behalf of itself or two or more units’

24-43  owners on matters affecting the common-interest community;

24-44     (e) Make contracts and incur liabilities;

25-1      (f) Regulate the use, maintenance, repair, replacement and

25-2  modification of common elements;

25-3      (g) Cause additional improvements to be made as a part of the

25-4  common elements;

25-5      (h) Acquire, hold, encumber and convey in its own name any

25-6  right, title or interest to real estate or personal property, but:

25-7          (1) Common elements in a condominium or planned

25-8  community may be conveyed or subjected to a security interest only

25-9  pursuant to NRS 116.3112; and

25-10         (2) Part of a cooperative may be conveyed, or all or part of a

25-11  cooperative may be subjected to a security interest, only pursuant to

25-12  NRS 116.3112;

25-13     (i) Grant easements, leases, licenses and concessions through or

25-14  over the common elements;

25-15     (j) Impose and receive any payments, fees or charges for the use,

25-16  rental or operation of the common elements, other than limited

25-17  common elements described in subsections 2 and 4 of NRS

25-18  116.2102, and for services provided to units’ owners;

25-19     (k) Impose charges for late payment of assessments , impose

25-20  construction penalties when authorized pursuant to section 47 of

25-21  this act and, except as otherwise provided in NRS 116.31031, after

25-22  notice and an opportunity to be heard, levy reasonable fines for

25-23  violations of the [declaration, bylaws, rules and regulations]

25-24  governing documents of the association;

25-25     (l) Impose reasonable charges for the preparation and

25-26  recordation of amendments to the declaration, the information

25-27  required by NRS 116.4109 or statements of unpaid assessments;

25-28     (m) Provide for the indemnification of its officers and executive

25-29  board and maintain directors’ and officers’ liability insurance;

25-30     (n) Assign its right to future income, including the right to

25-31  receive assessments for common expenses, but only to the extent the

25-32  declaration expressly so provides;

25-33     (o) Exercise any other powers conferred by the declaration or

25-34  bylaws;

25-35     (p) Exercise all other powers that may be exercised in this state

25-36  by legal entities of the same type as the association;

25-37     (q) Direct the removal of vehicles improperly parked on

25-38  property owned or leased by the association, pursuant to NRS

25-39  487.038; and

25-40     (r) Exercise any other powers necessary and proper for the

25-41  governance and operation of the association.

25-42     2.  The declaration may not impose limitations on the power of

25-43  the association to deal with the declarant which are more restrictive

25-44  than the limitations imposed on the power of the association to deal

25-45  with other persons.

26-1      Sec. 61. NRS 116.31031 is hereby amended to read as

26-2  follows:

26-3      116.31031  1.  If a unit’s owner [,] or a tenant or guest of a

26-4  unit’s owner [, does not comply with a] violates any provision of the

26-5  governing documents of an association, the executive board of the

26-6  association may, if the governing documents so provide:

26-7      (a) Prohibit, for a reasonable time, the unit’s owner [,] or the

26-8  tenant or guest of the unit’s owner [,] from:

26-9          (1) Voting on matters related to the common-interest

26-10  community.

26-11         (2) Using the common elements. The provisions of this

26-12  subparagraph do not prohibit the unit’s owner [,] or the tenant or

26-13  guest of the unit’s owner [,] from using any vehicular or pedestrian

26-14  ingress or egress to go to or from the unit, including any area used

26-15  for parking.

26-16     (b) [Require] Impose a fine against the unit’s owner [,] or the

26-17  tenant or guest of the unit’s owner [, to pay a fine] for each [failure

26-18  to comply that does not threaten the health and welfare of the

26-19  common-interest community.] violation, except that a fine may not

26-20  be imposed for a violation that is the subject of a construction

26-21  penalty pursuant to section 47 of this act. The fine must be

26-22  commensurate with the severity of the violation, but must not

26-23  exceed $100 for each violation or a total amount of $500, whichever

26-24  is less. The limitations on the amount of the fine do not apply to

26-25  any interest, charges or costs that may be collected by the

26-26  association pursuant to this section if the fine becomes past due.

26-27     2.  If a fine is imposed pursuant to subsection 1 and the

26-28  violation is not cured within 14 days , or [a] within any longer

26-29  period [as] that may be established by the executive board, the

26-30  violation shall be deemed a continuing violation. Thereafter, the

26-31  executive board may impose an additional fine for the violation for

26-32  each 7‑day period or portion thereof that the violation is not cured.

26-33  Any additional fine may be imposed without notice and an

26-34  opportunity to be heard.

26-35     3.  Except as otherwise provided in subsection 2, the imposition

26-36  of a fine pursuant to this section must comply with the requirements

26-37  of subsection 6 of NRS 116.31065.

26-38     4.  Any past due fine:

26-39     (a) Bears interest at the rate established by the association, not

26-40  to exceed 18 percent per year.

26-41     (b) May include any charges for late payment of the past due

26-42  fine at a rate established by the association, not to exceed 5

26-43  percent of the outstanding balance.

26-44     (c) May include any costs of collecting the past due fine at a

26-45  rate established by the association:

27-1          (1) Not to exceed $20, if the outstanding balance is less

27-2  than $200.

27-3          (2) Not to exceed $50, if the outstanding balance is $200 or

27-4  more, but is less than $500.

27-5          (3) Not to exceed $100, if the outstanding balance is $500

27-6  or more, but is less than $1,000.

27-7          (4) Not to exceed $250, if the outstanding balance is $1,000

27-8  or more, but is less than $5,000.

27-9          (5) Not to exceed $500, if the outstanding balance is $5,000

27-10  or more.

27-11     (d) May include any costs incurred by the association during a

27-12  civil action to enforce the payment of the past due fine.

27-13     5.  As used in this section:

27-14     (a) “Costs of collecting” includes, without limitation, any

27-15  collection fee, filing fee, recording fee, referral fee, fee for postage

27-16  or delivery, and any other fee or cost that an association, a

27-17  collection agency, a community manager and any other person or

27-18  entity engaged to collect a past due fine may reasonably incur for

27-19  the collection of a past due fine. The term does not include any

27-20  costs incurred by an association during a civil action to enforce

27-21  the payment of a past due fine.

27-22     (b) “Outstanding balance” means the amount of a past due

27-23  fine that remains unpaid before any interest, charges for late

27-24  payment or costs of collecting the past due fine are added.

27-25     Sec. 62.  NRS 116.31034 is hereby amended to read as

27-26  follows:

27-27      116.31034  1.  Except as otherwise provided in subsection 5 of

27-28  NRS 116.212, not later than the termination of any period of

27-29  declarant’s control, the units’ owners shall elect an executive board

27-30  of at least three members, at least a majority of whom must be units’

27-31  owners. The executive board shall elect the officers [.] of the

27-32  association. The members [and officers] of the executive board and

27-33  the officers of the association shall take office upon election.

27-34     2.  The term of office of a member of the executive board may

27-35  not exceed 2 years [. A] , except for members who are appointed by

27-36  the declarant. Unless the governing documents provide otherwise,

27-37  there is no limitation on the number of terms that a person may

27-38  serve as a member of the executive board . [may be elected to

27-39  succeed himself.]

27-40     3.  The governing documents of the association must [set forth

27-41  the month during which elections for the members of the executive

27-42  board must be held after the termination of any period of the

27-43  declarant’s control.

27-44     3.] provide for terms of office that are staggered in such a

27-45  manner that, to the extent possible, an equal number of members

28-1  of the executive board are elected at each election. The provisions

28-2  of this subsection do not apply to:

28-3      (a) Members of the executive board who are appointed by the

28-4  declarant; and

28-5      (b) Members of the executive board who serve a term of 1 year

28-6  or less.

28-7      4.  Not less than 30 days before the preparation of a ballot for

28-8  the election of members of the executive board, the secretary or

28-9  other officer specified in the bylaws of the association shall cause

28-10  notice to be given to each unit’s owner of his eligibility to serve as a

28-11  member of the executive board. Each unit’s owner who is qualified

28-12  to serve as a member of the executive board may have his name

28-13  placed on the ballot along with the names of the nominees selected

28-14  by the members of the executive board or a nominating committee

28-15  established by the association.

28-16     [4.] 5.  Each person whose name is placed on the ballot as a

28-17  candidate for a member of the executive board must make a good

28-18  faith effort to disclose any financial, business, professional or

28-19  personal relationship or interest that would result or would appear

28-20  to a reasonable person to result in a potential conflict of interest

28-21  for the candidate if the candidate were to be elected to serve as a

28-22  member of the executive board. The candidate must make the

28-23  disclosure, in writing, to each member of the association in the

28-24  manner established in the bylaws of the association.

28-25     6.  Unless a person is appointed by the declarant:

28-26     (a) A person may not be a member of the executive board of an

28-27  association or an officer of that association if the person, his

28-28  spouse or his parent or child, by blood, marriage or adoption,

28-29  performs the duties of a community manager for that association.

28-30     (b) A person may not be a member of the executive board of a

28-31  master association or an officer of that master association if the

28-32  person, his spouse or his parent or child, by blood, marriage or

28-33  adoption, performs the duties of a community manager for:

28-34         (1) That master association; or

28-35         (2) Any association that is subject to the governing

28-36  documents of that master association.

28-37     7.  An officer, employee, agent or director of a corporate owner

28-38  of a unit, a trustee or designated beneficiary of a trust that owns a

28-39  unit, a partner of a partnership that owns a unit, a member or

28-40  manager of a limited-liability company that owns a unit, and a

28-41  fiduciary of an estate that owns a unit may be an officer of the

28-42  association or a member of the executive board. In all events where

28-43  the person serving or offering to serve as an officer of the

28-44  association or a member of the executive board is not the record

28-45  owner, he shall file proof in the records of the association that:

29-1      (a) He is associated with the corporate owner, trust, partnership ,

29-2  limited-liability company or estate as required by this subsection;

29-3  and

29-4      (b) Identifies the unit or units owned by the corporate owner,

29-5  trust, partnership , limited-liability company or estate.

29-6      [5.] 8. The election of any member of the executive board must

29-7  be conducted by secret written ballot [. The] unless the declaration

29-8  of the association provides that voting rights may be exercised by

29-9  delegates or representatives as set forth in section 46 of this act. If

29-10  the election is conducted by secret written ballot, the secretary or

29-11  other officer specified in the bylaws of the association shall cause a

29-12  secret ballot and a return envelope to be sent , prepaid by United

29-13  States mail , to the mailing address of each unit within the common-

29-14  interest community or to any other mailing address designated in

29-15  writing by the unit’s owner . [, a secret ballot and a return envelope.

29-16     6.] 9.  A quorum is not required for the election of any

29-17  member of the executive board. If the election is conducted by

29-18  secret written ballot:

29-19     (a) Only the secret written ballots that are returned to the

29-20  association may be counted to determine the outcome of the

29-21  election.

29-22     (b) The secret written ballots must be opened and counted at a

29-23  meeting of the association. A quorum is not required to be present

29-24  when the secret written ballots are opened and counted at the

29-25  meeting.

29-26     (c) The incumbent members of the executive board and each

29-27  person whose name is placed on the ballot as a candidate for a

29-28  member of the executive board may not possess, be given access to

29-29  or participate in the opening or counting of the secret written

29-30  ballots that are returned to the association before those secret

29-31  written ballots have been opened and counted at a meeting of the

29-32  association.

29-33     10. Each member of the executive board shall, within [30] 90

29-34  days after his appointment or election, certify in writing to the

29-35  association, on a form prescribed by the Administrator, that he has

29-36  read and understands the governing documents of the association

29-37  and the provisions of this chapter to the best of his ability. The

29-38  Administrator may require the association to submit a copy of the

29-39  certification of each member of the executive board of that

29-40  association at the time the association registers with the

29-41  Ombudsman pursuant to NRS 116.31158.

29-42     Sec. 63.  NRS 116.31036 is hereby amended to read as

29-43  follows:

29-44      116.31036  1.  Notwithstanding any provision of the

29-45  declaration or bylaws to the contrary, the units’ owners, by a two-

30-1  thirds vote of all persons [present and] entitled to vote at any

30-2  meeting of the units’ owners at which a quorum is present, may

30-3  remove any member of the executive board with or without cause,

30-4  other than a member appointed by the declarant.

30-5      2.  The removal of any member of the executive board must be

30-6  conducted by secret written ballot unless the declaration of the

30-7  association provides that voting rights may be exercised by

30-8  delegates or representatives as set forth in section 46 of this act. If

30-9  the removal of a member of the executive board is conducted by

30-10  secret written ballot, the secretary or other officer specified in the

30-11  bylaws of the association shall cause a secret ballot and a return

30-12  envelope to be sent, prepaid by United States mail, to the mailing

30-13  address of each unit within the common-interest community or to

30-14  any other mailing address designated in writing by the unit’s

30-15  owner.

30-16     3.  If the removal of a member of the executive board is

30-17  conducted by secret written ballot:

30-18     (a) Only the secret written ballots that are returned to the

30-19  association may be counted to determine the outcome.

30-20     (b) The secret written ballots must be opened and counted at a

30-21  meeting of the association. A quorum is not required to be present

30-22  when the secret written ballots are opened and counted at the

30-23  meeting.

30-24     (c) The incumbent members of the executive board, including,

30-25  without limitation, the member who is subject to the removal, may

30-26  not possess, be given access to or participate in the opening or

30-27  counting of the secret written ballots that are returned to the

30-28  association before those secret written ballots have been opened

30-29  and counted at a meeting of the association.

30-30     4.  If a member of an executive board is named as a respondent

30-31  or sued for liability for actions undertaken in his role as a member

30-32  of the board, the association shall indemnify him for his losses or

30-33  claims, and undertake all costs of defense, unless it is proven that he

30-34  acted with willful or wanton misfeasance or with gross negligence.

30-35  After such proof , the association is no longer liable for the cost of

30-36  defense, and may recover costs already expended from the member

30-37  of the executive board who so acted. Members of the executive

30-38  board are not personally liable to the victims of crimes occurring on

30-39  the property. Punitive damages may not be recovered against the

30-40  association, but may be recovered from persons whose activity gave

30-41  rise to the damages.

30-42     5.  The provisions of this section do not prohibit the

30-43  Commission from taking any disciplinary action against a member

30-44  of an executive board pursuant to sections 27 to 37, inclusive, of

30-45  this act.

31-1      Sec. 64.  NRS 116.3106 is hereby amended to read as follows:

31-2      116.3106  1.  The bylaws of the association must provide:

31-3      (a) The number of members of the executive board and the titles

31-4  of the officers of the association;

31-5      (b) For election by the executive board of a president, treasurer,

31-6  secretary and any other officers of the association the bylaws

31-7  specify;

31-8      (c) The qualifications, powers and duties, terms of office and

31-9  manner of electing and removing officers of the association and

31-10  members of the executive board and filling vacancies;

31-11     (d) Which [,] powers, if any, [of its powers] that the executive

31-12  board or the officers of the association may delegate to other

31-13  persons or to a [managing agent;] community manager;

31-14     (e) Which of its officers may prepare, execute, certify and

31-15  record amendments to the declaration on behalf of the association;

31-16     (f) Procedural rules for conducting meetings of the association;

31-17  [and]

31-18     (g) A method for amending the bylaws[.] ; and

31-19     (h) Procedural rules for conducting elections.

31-20     2.  Except as otherwise provided in the declaration, the bylaws

31-21  may provide for any other matters the association deems necessary

31-22  and appropriate.

31-23     3.  The bylaws must be written in plain English.

31-24     Sec. 65. NRS 116.3108 is hereby amended to read as follows:

31-25      116.3108  1.  A meeting of the units’ owners of an association

31-26  must be held at least once each year. If the governing documents of

31-27  a common‑interest community do not designate an annual meeting

31-28  date of the units’ owners, a meeting of the units’ owners must be

31-29  held 1 year after the date of the last meeting of the units’ owners. If

31-30  the units’ owners have not held a meeting for 1 year, a meeting of

31-31  the units’ owners must be held on the following March 1. Special

31-32  meetings of the units’ owners of an association may be called by the

31-33  president, a majority of the executive board or by units’ owners

31-34  having 10 percent, or any lower percentage specified in the bylaws,

31-35  of the votes in the association.

31-36     2.  Not less than 10 nor more than 60 days in advance of any

31-37  meeting of the units’ owners of an association, the secretary or other

31-38  officer specified in the bylaws shall cause notice of the meeting to

31-39  be hand‑delivered, sent prepaid by United States mail to the mailing

31-40  address of each unit or to any other mailing address designated in

31-41  writing by the unit’s owner or, if the association offers to send

31-42  notice by electronic mail, sent by electronic mail at the request of

31-43  the unit’s owner to an electronic mail address designated in writing

31-44  by the unit’s owner. The notice of the meeting must state the time

31-45  and place of the meeting and include a copy of the agenda for the

32-1  meeting. The notice must include notification of the right of a unit’s

32-2  owner to:

32-3      (a) Have a copy of the minutes or a summary of the minutes of

32-4  the meeting [distributed to him] provided to the unit’s owner upon

32-5  request and, if required by the executive board, upon payment to the

32-6  association of the cost of [making the distribution.] providing the

32-7  copy to the unit’s owner.

32-8      (b) Speak to the association or executive board, unless the

32-9  executive board is meeting in executive session.

32-10     3.  The agenda for a meeting of the units’ owners must consist

32-11  of:

32-12     (a) A clear and complete statement of the topics scheduled to be

32-13  considered during the meeting, including, without limitation, any

32-14  proposed amendment to the declaration or bylaws, any fees or

32-15  assessments to be imposed or increased by the association, any

32-16  budgetary changes and any proposal to remove an officer of the

32-17  association or member of the executive board.

32-18     (b) A list describing the items on which action may be taken and

32-19  clearly denoting that action may be taken on those items. In an

32-20  emergency, the units’ owners may take action on an item which is

32-21  not listed on the agenda as an item on which action may be taken.

32-22     (c) A period devoted to comments by units’ owners and

32-23  discussion of those comments. Except in emergencies, no action

32-24  may be taken upon a matter raised under this item of the agenda

32-25  until the matter itself has been specifically included on an agenda as

32-26  an item upon which action may be taken pursuant to paragraph (b).

32-27     4.  If the association adopts a policy imposing [a fine on a unit’s

32-28  owner for the violation of the declaration, bylaws or other rules

32-29  established by] fines for any violations of the governing documents

32-30  of the association, the secretary or other officer specified in the

32-31  bylaws shall prepare and cause to be hand‑delivered or sent prepaid

32-32  by United States mail to the mailing address of each unit or to any

32-33  other mailing address designated in writing by the unit’s owner, a

32-34  schedule of the fines that may be imposed for those violations.

32-35     5.  The secretary or other officer specified in the bylaws shall

32-36  cause minutes to be recorded or otherwise taken at each meeting

32-37  of the units’ owners. Not more than 30 days after [any meeting of

32-38  the units’ owners,] each such meeting, the secretary or other officer

32-39  specified in the bylaws shall cause the minutes or a summary of the

32-40  minutes of the meeting to be made available to the units’ owners. A

32-41  copy of the minutes or a summary of the minutes must be provided

32-42  to any unit’s owner [who pays] upon request and, if required by the

32-43  executive board, upon payment to the association of the cost of

32-44  providing the copy to [him.] the unit’s owner.

33-1      6.  Except as otherwise provided in subsection 7, the minutes

33-2  of each meeting of the units’ owners must include:

33-3      (a) The date, time and place of the meeting;

33-4      (b) The substance of all matters proposed, discussed or decided

33-5  at the meeting; and

33-6      (c) The substance of remarks made by any unit’s owner at the

33-7  meeting if he requests that the minutes reflect his remarks or, if he

33-8  has prepared written remarks, a copy of his prepared remarks if he

33-9  submits a copy for inclusion.

33-10     7.  The executive board may establish reasonable limitations

33-11  on materials, remarks or other information to be included in the

33-12  minutes of a meeting of the units’ owners.

33-13     8.  The association shall maintain the minutes of each

33-14  meeting of the units’ owners until the common-interest community

33-15  is terminated.

33-16     9.  A unit’s owner may record on audiotape or any other

33-17  means of sound reproduction a meeting of the units’ owners if the

33-18  unit’s owner, before recording the meeting, provides notice of his

33-19  intent to record the meeting to the other units’ owners who are in

33-20  attendance at the meeting.

33-21     10.  As used in this section, “emergency” means any occurrence

33-22  or combination of occurrences that:

33-23     (a) Could not have been reasonably foreseen;

33-24     (b) Affects the health, welfare and safety of the units’ owners of

33-25  the association;

33-26     (c) Requires the immediate attention of, and possible action by,

33-27  the executive board; and

33-28     (d) Makes it impracticable to comply with the provisions of

33-29  subsection 2 or 3.

33-30     Sec. 66.  NRS 116.31083 is hereby amended to read as

33-31  follows:

33-32      116.31083  1.  A meeting of the executive board of an

33-33  association must be held at least once every 90 days.

33-34     2.  Except in an emergency or unless the bylaws of an

33-35  association require a longer period of notice, the secretary or other

33-36  officer specified in the bylaws of the association shall, not less than

33-37  10 days before the date of a meeting of the executive board, cause

33-38  notice of the meeting to be given to the units’ owners. Such notice

33-39  must be:

33-40     (a) Sent prepaid by United States mail to the mailing address of

33-41  each unit within the common-interest community or to any other

33-42  mailing address designated in writing by the unit’s owner;

33-43     (b) If the association offers to send notice by electronic mail,

33-44  sent by electronic mail at the request of the unit’s owner to an

33-45  electronic mail address designated in writing by the unit’s owner; or

34-1      (c) Published in a newsletter or other similar publication that is

34-2  circulated to each unit’s owner.

34-3      3.  In an emergency, the secretary or other officer specified in

34-4  the bylaws of the association shall, if practicable, cause notice of the

34-5  meeting to be sent prepaid by United States mail to the mailing

34-6  address of each unit within the common-interest community. If

34-7  delivery of the notice in this manner is impracticable, the notice

34-8  must be hand-delivered to each unit within the common-interest

34-9  community or posted in a prominent place or places within the

34-10  common elements of the association.

34-11     4.  The notice of a meeting of the executive board of an

34-12  association must state the time and place of the meeting and include

34-13  a copy of the agenda for the meeting or the date on which and the

34-14  locations where copies of the agenda may be conveniently obtained

34-15  by the units’ owners of the association. The notice must include

34-16  notification of the right of a unit’s owner to:

34-17     (a) Have a copy of the minutes or a summary of the minutes of

34-18  the meeting [distributed to him] provided to the unit’s owner upon

34-19  request and, if required by the executive board, upon payment to the

34-20  association of the cost of [making the distribution.] providing the

34-21  copy to the unit’s owner.

34-22     (b) Speak to the association or executive board, unless the

34-23  executive board is meeting in executive session.

34-24     5.  The agenda of the meeting of the executive board of an

34-25  association must comply with the provisions of subsection 3 of NRS

34-26  116.3108. The period required to be devoted to comments by units’

34-27  owners and discussion of those comments must be scheduled for the

34-28  beginning of each meeting. In an emergency, the executive board

34-29  may take action on an item which is not listed on the agenda as an

34-30  item on which action may be taken.

34-31     6.  At least once every 90 days, unless the declaration or bylaws

34-32  of the association impose more stringent standards, the executive

34-33  board shall review at one of its meetings:

34-34     (a) A current reconciliation of the operating account of the

34-35  association;

34-36     (b) A current reconciliation of the reserve account of the

34-37  association;

34-38     (c) The actual revenues and expenses for the reserve account,

34-39  compared to the budget for that account for the current year;

34-40     (d) The latest account statements prepared by the financial

34-41  institutions in which the accounts of the association are maintained;

34-42     (e) An income and expense statement, prepared on at least a

34-43  quarterly basis, for the operating and reserve accounts of the

34-44  association; and

35-1      (f) The current status of any civil action or claim submitted to

35-2  arbitration or mediation in which the association is a party.

35-3      7.  The secretary or other officer specified in the bylaws shall

35-4  cause minutes [of a] to be recorded or otherwise taken at each

35-5  meeting of the executive board . [of an association must be] Not

35-6  more than 30 days after each such meeting, the secretary or other

35-7  officer specified in the bylaws shall cause the minutes or a

35-8  summary of the minutes of the meeting to be made available to the

35-9  units’ owners . [in accordance with the provisions of subsection 5 of

35-10  NRS 116.3108.] A copy of the minutes or a summary of the

35-11  minutes must be provided to any unit’s owner upon request and, if

35-12  required by the executive board, upon payment to the association

35-13  of the cost of providing the copy to the unit’s owner.

35-14     8.  Except as otherwise provided in subsection 9 and NRS

35-15  116.31085, the minutes of each meeting of the executive board

35-16  must include:

35-17     (a) The date, time and place of the meeting;

35-18     (b) Those members of the executive board who were present

35-19  and those members who were absent at the meeting;

35-20     (c) The substance of all matters proposed, discussed or decided

35-21  at the meeting and, at the request of any member of the executive

35-22  board, a record of each member’s vote on any matter decided by

35-23  vote at the meeting; and

35-24     (d) The substance of remarks made by any unit’s owner who

35-25  addresses the executive board at the meeting if he requests that the

35-26  minutes reflect his remarks or, if he has prepared written remarks,

35-27  a copy of his prepared remarks if he submits a copy for inclusion.

35-28     9.  The executive board may establish reasonable limitations

35-29  on materials, remarks or other information to be included in the

35-30  minutes of its meetings.

35-31     10.  The association shall maintain the minutes of each

35-32  meeting of the executive board until the common-interest

35-33  community is terminated.

35-34     11.  A unit’s owner may record on audiotape or any other

35-35  means of sound reproduction a meeting of the executive board,

35-36  unless the executive board is meeting in executive session, if the

35-37  unit’s owner, before recording the meeting, provides notice of his

35-38  intent to record the meeting to the members of the executive board

35-39  and the other units’ owners who are in attendance at the meeting.

35-40     12.  As used in this section, “emergency” means any occurrence

35-41  or combination of occurrences that:

35-42     (a) Could not have been reasonably foreseen;

35-43     (b) Affects the health, welfare and safety of the units’ owners of

35-44  the association;

36-1      (c) Requires the immediate attention of, and possible action by,

36-2  the executive board; and

36-3      (d) Makes it impracticable to comply with the provisions of

36-4  subsection 2 or 5.

36-5      Sec. 67. NRS 116.31085 is hereby amended to read as

36-6  follows:

36-7      116.31085  1.  Except as otherwise provided in this section, a

36-8  unit’s owner may attend any meeting of the units’ owners of the

36-9  association or of the executive board and speak at any such meeting.

36-10  The executive board may establish reasonable limitations on the

36-11  time a unit’s owner may speak at such a meeting.

36-12     2.  An executive board may not meet in executive session to

36-13  enter into, renew, modify, terminate or take any other action

36-14  regarding a contract, including, without limitation, a contract with

36-15  the attorney for the association. If the executive board takes any

36-16  action regarding a contract, the contract must be made reasonably

36-17  available for review by the units’ owners of the association.

36-18     3.  An executive board may meet in executive session only to:

36-19     (a) Consult with the attorney for the association on matters

36-20  relating to proposed or pending litigation if the contents of the

36-21  discussion would otherwise be governed by the privilege set forth in

36-22  NRS 49.035 to 49.115, inclusive . [;] The provisions of this

36-23  paragraph do not permit the executive board to meet in executive

36-24  session to take any action regarding a contract with the attorney

36-25  for the association.

36-26     (b) Discuss [matters relating to personnel; or

36-27     (c) Discuss] the character, alleged misconduct, professional

36-28  competence, or physical or mental health of a community

36-29  manager or an employee of the association.

36-30     (c) Except as otherwise provided in subsection 4, discuss a

36-31  violation of the governing documents , [alleged to have been

36-32  committed by a unit’s owner,] including, without limitation, the

36-33  failure to pay an assessment . [, except as otherwise provided in

36-34  subsection 3.

36-35     3.] (d) Discuss the alleged failure of a unit’s owner to adhere

36-36  to a schedule required pursuant to section 47 of this act if the

36-37  alleged failure may subject the unit’s owner to a construction

36-38  penalty.

36-39     4.  An executive board shall meet in executive session to hold a

36-40  hearing on an alleged violation of the governing documents unless

36-41  the [unit’s owner who allegedly committed] person who may be

36-42  sanctioned for the alleged violation requests in writing that the

36-43  hearing be conducted by the executive board at an open meeting.

36-44  The [unit’s owner who is alleged to have committed] person who

36-45  may be sanctioned for the alleged violation [may] is entitled to

37-1  attend the hearing and testify concerning the alleged violation, but

37-2  the person may be excluded by the executive board from any other

37-3  portion of the hearing, including, without limitation, the

37-4  deliberations of the executive board.

37-5      [4.] 5. Except as otherwise provided in this subsection, any

37-6  matter discussed by the executive board when it meets in executive

37-7  session must be generally noted in the minutes of the meeting of the

37-8  executive board. The executive board shall maintain minutes of any

37-9  decision made pursuant to subsection [3] 4 concerning an alleged

37-10  violation and, upon request, provide a copy of the decision to the

37-11  [unit’s owner who was the subject of the hearing] person who was

37-12  subject to being sanctioned at the hearing or to his designated

37-13  representative.

37-14     [5.] 6. Except as otherwise provided in subsection [3,] 4, a

37-15  unit’s owner is not entitled to attend or speak at a meeting of the

37-16  executive board held in executive session.

37-17     Sec. 68.  NRS 116.3109 is hereby amended to read as follows:

37-18      116.3109  1.  Except as otherwise provided in this section and

37-19  [unless the bylaws] NRS 116.31034, and except when the

37-20  governing documents provide otherwise, a quorum is present

37-21  throughout any meeting of the association if [persons entitled to cast

37-22  20 percent of the votes that may be cast for election of the executive

37-23  board] the number of members of the association who are present

37-24  in person or by proxy at the beginning of the meeting [.] equals or

37-25  exceeds 20 percent of the total number of voting members of the

37-26  association.

37-27     2.  If the governing documents of an association contain a

37-28  quorum requirement for a meeting of the association that is

37-29  greater than the 20 percent required by subsection 1 and, after

37-30  proper notice has been given for a meeting, the members of the

37-31  association who are present in person or by proxy at the meeting

37-32  are unable to hold the meeting because a quorum is not present at

37-33  the beginning of the meeting, the members who are present in

37-34  person at the meeting may adjourn the meeting to a time that is

37-35  not less than 48 hours or more than 30 days from the date of the

37-36  meeting. At the subsequent meeting:

37-37     (a) A quorum shall be deemed to be present if the number of

37-38  members of the association who are present in person or by proxy

37-39  at the beginning of the subsequent meeting equals or exceeds 20

37-40  percent of the total number of voting members of the association;

37-41  and

37-42     (b) If such a quorum is deemed to be present but the actual

37-43  number of members who are present in person or by proxy at the

37-44  beginning of the subsequent meeting is less than the number of

37-45  members who are required for a quorum under the governing

38-1  documents, the members who are present in person or by proxy at

38-2  the subsequent meeting may take action only on those matters that

38-3  were included as items on the agenda of the original

38-4  meeting.

38-5  The provisions of this subsection do not change the actual number

38-6  of votes that are required under the governing documents for

38-7  taking action on any particular matter.

38-8      3.  Unless the [bylaws] governing documents specify a larger

38-9  percentage, a quorum is deemed present throughout any meeting of

38-10  the executive board if persons entitled to cast 50 percent of the votes

38-11  on that board are present at the beginning of the meeting.

38-12     [3.  For the purposes of determining whether a quorum is

38-13  present for the election of any member of the executive board, only

38-14  the secret written ballots that are returned to the association may be

38-15  counted.]

38-16     Sec. 69. NRS 116.311 is hereby amended to read as follows:

38-17      116.311  1.  If only one of several owners of a unit is present

38-18  at a meeting of the association, that owner is entitled to cast all the

38-19  votes allocated to that unit. If more than one of the owners are

38-20  present, the votes allocated to that unit may be cast only in

38-21  accordance with the agreement of a majority in interest of the

38-22  owners, unless the declaration expressly provides otherwise. There

38-23  is majority agreement if any one of the owners cast the votes

38-24  allocated to that unit without protest made promptly to the person

38-25  presiding over the meeting by any of the other owners of the unit.

38-26     2.  Except as otherwise provided in this section, votes allocated

38-27  to a unit may be cast pursuant to a proxy executed by a unit’s owner.

38-28  A unit’s owner may give a proxy only to a member of his immediate

38-29  family, a tenant of the unit’s owner who resides in the common-

38-30  interest community , [or] another unit’s owner who resides in the

38-31  common-interest community[.] , or to a delegate or representative

38-32  when authorized pursuant to section 46 of this act. If a unit is

38-33  owned by more than one person, each owner of the unit may vote or

38-34  register protest to the casting of votes by the other owners of the unit

38-35  through an executed proxy. A unit’s owner may revoke a proxy

38-36  given pursuant to this section only by actual notice of revocation to

38-37  the person presiding over a meeting of the association. [A proxy is

38-38  void if:

38-39     (a) It is not dated or purports]

38-40     3.  Before a vote may be cast pursuant to a proxy:

38-41     (a) The proxy must be dated.

38-42     (b) The proxy must not purport to be revocable without notice .

38-43  [;

38-44     (b) It does not]

39-1      (c) The proxy must designate the meeting for which it is

39-2  executed.

39-3      (d) The proxy must designate [the votes that must be cast on

39-4  behalf of] each specific item on the agenda of the meeting for

39-5  which the unit’s owner [who] has executed the proxy [; or

39-6      (c)] , except that the unit’s owner may execute the proxy

39-7  without designating any specific items on the agenda of the

39-8  meeting if the proxy is to be used solely for determining whether a

39-9  quorum is present for the meeting. If the proxy designates one or

39-10  more specific items on the agenda of the meeting for which the

39-11  unit’s owner has executed the proxy, the proxy must indicate, for

39-12  each specific item designated in the proxy, whether the holder of

39-13  the proxy must cast a vote in the affirmative or the negative on

39-14  behalf of the unit’s owner. If the proxy does not indicate whether

39-15  the holder of the proxy must cast a vote in the affirmative or the

39-16  negative for a particular item on the agenda of the meeting,

39-17  the proxy must be treated, with regard to that particular item, as if

39-18  the unit’s owner were present but not voting on that particular

39-19  item.

39-20     (e) The holder of the proxy [does not] must disclose at the

39-21  beginning of the meeting for which the proxy is executed the

39-22  number of proxies pursuant to which [he] the holder will be casting

39-23  votes . [and the voting instructions received for each proxy.]

39-24     4.  A proxy terminates immediately after the conclusion of the

39-25  meeting for which it [was] is executed.

39-26     5.  A vote may not be cast pursuant to a proxy for the election

39-27  or removal of a member of the executive board of an association[.

39-28     3.  Only a vote cast in person, by secret ballot or by proxy, may

39-29  be counted.

39-30     4.] unless the proxy is exercised through a delegate or

39-31  representative authorized pursuant to section 46 of this act.

39-32     6.  The holder of a proxy may not cast a vote on behalf of the

39-33  unit’s owner who executed the proxy in a manner that is contrary

39-34  to the proxy.

39-35     7.  A proxy is void if the proxy or the holder of the proxy

39-36  violates any provision of subsections 1 to 6, inclusive.

39-37     8. If the declaration requires that votes on specified matters

39-38  affecting the common-interest community must be cast by the

39-39  lessees of leased units rather than the units’ owners [of] who have

39-40  leased the units:

39-41     (a) The provisions of subsections 1 [and 2] to 7, inclusive, apply

39-42  to the lessees as if they were the units’ owners;

39-43     (b) [Units’] The units’ owners who have leased their units to

39-44  [other persons] the lessees may not cast votes on those specified

39-45  matters; [and]

40-1      (c) [Lessees] The lessees are entitled to notice of meetings,

40-2  access to records[,] and other rights respecting those matters as if

40-3  they were the units’ owners [.

40-4  Units’] ; and

40-5      (d) The units’ owners must [also] be given notice, in the manner

40-6  provided in NRS 116.3108, of all meetings at which the lessees are

40-7  entitled to vote.

40-8      [5.  No]

40-9      9.  If any votes are allocated to a unit that is owned by the

40-10  association , those votes may not be cast [.

40-11     6.  Votes cast for the election of a member of the executive

40-12  board of an association must be counted in public.] , by proxy or

40-13  otherwise, for any purpose.

40-14     Sec. 70.  NRS 116.31139 is hereby amended to read as

40-15  follows:

40-16      116.31139  1.  [An association may employ a person engaged

40-17  in property management for the common-interest community.

40-18     2.] Except as otherwise provided in this section, a person

40-19  [engaged in property management for a common-interest

40-20  community must:

40-21     (a) Hold] shall not act as a community manager unless the

40-22  person holds a permit [to engage in property management that is

40-23  issued pursuant to the provisions of chapter 645 of NRS; or

40-24     (b) Hold] or a certificate . [issued by the Real Estate

40-25  Commission pursuant to subsection 3.

40-26     3.  The Real Estate]

40-27     2.  The Commission shall [provide] by regulation provide for

40-28  the [issuance of certificates for the management of common-interest

40-29  communities to persons who are not otherwise authorized to engage

40-30  in property management pursuant to the provisions of chapter 645 of

40-31  NRS. The regulations:

40-32     (a) Must establish the qualifications for the issuance of such a

40-33  certificate, including the education and experience required to obtain

40-34  such a certificate;

40-35     (b) May require applicants to pass an examination in order to

40-36  obtain a certificate;

40-37     (c) Must establish] standards of practice for [persons engaged in

40-38  property management for a common-interest community;

40-39     (d) Must establish the grounds for initiating disciplinary action

40-40  against a person to whom a certificate has been issued, including,

40-41  without limitation, the grounds for placing conditions, limitations or

40-42  restrictions on a certificate and for the suspension or revocation of a

40-43  certificate; and

40-44     (e) Must establish rules of practice and procedure for conducting

40-45  disciplinary hearings.

41-1  The Real Estate Division of the Department of Business and

41-2  Industry] community managers who hold permits or certificates.

41-3      3.  The Division may investigate [the property managers to

41-4  whom certificates have been issued] any community manager who

41-5  holds a permit or certificate to ensure [their compliance] that the

41-6  community manager is complying with the standards of practice

41-7  adopted [pursuant to this subsection and collect a fee for the

41-8  issuance of a certificate] by the Commission . [in an amount not to

41-9  exceed the administrative costs of issuing the certificate.]

41-10     4.  In addition to any other remedy or penalty, if the

41-11  Commission or a hearing panel, after notice and hearing, finds

41-12  that a community manager who holds a permit or certificate has

41-13  violated any provision of this chapter or any of the standards of

41-14  practice adopted by the Commission, the Commission or the

41-15  hearing panel may take appropriate disciplinary action against the

41-16  community manager.

41-17     5.  The provisions of [subsection 2] this section do not apply to:

41-18     (a) [A person who is engaged in property management for a

41-19  common-interest community on October 1, 1999, and is granted an

41-20  exemption from the requirements of subsection 2 by the

41-21  Administrator upon demonstration that he is qualified and

41-22  competent to engage in property management for a common-interest

41-23  community.

41-24     (b)] A financial institution[.

41-25     (c)] that is engaging in an activity permitted by law.

41-26     (b) An attorney who is licensed to practice in this state[.

41-27     (d)] and who is acting in that capacity.

41-28     (c) A trustee[.

41-29     (e) An employee of a corporation who manages only] with

41-30  respect to the property of the [corporation.

41-31     (f)] trust.

41-32     (d) A declarant[.

41-33     (g)] , an affiliate of the declarant and any officers or

41-34  employees of the declarant or an affiliate of the declarant when

41-35  engaging in the management of a common-interest community

41-36  during the period in which the declarant controls that common-

41-37  interest community.

41-38     (e) A receiver[.

41-39     5.  As used in this section, “property management” means the

41-40  physical, administrative or financial maintenance and management

41-41  of real property, or the supervision of those activities for a fee,

41-42  commission or other compensation or valuable consideration.] with

41-43  respect to property subject to the receivership.

42-1      (f) A member of an executive board or an officer of an

42-2  association who is acting solely within the scope of his duties as a

42-3  member of the executive board or an officer of the association.

42-4      Sec. 71. NRS 116.311391 is hereby amended to read as

42-5  follows:

42-6      116.311391  The expiration or revocation of a permit or

42-7  certificate [for the management of a common-interest community]

42-8  by operation of law or by order or decision of [the Real Estate

42-9  Commission or a] any agency or court of competent jurisdiction, or

42-10  the voluntary surrender of such a permit or certificate by the holder

42-11  of the permit or certificate does not:

42-12     1.  Prohibit the [Real Estate Division of the Department of

42-13  Business and Industry or Real Estate] Commission or the Division

42-14  from initiating or continuing an investigation of, or action or

42-15  disciplinary proceeding against, the holder of the permit or

42-16  certificate as authorized pursuant to the provisions of this chapter or

42-17  the regulations adopted pursuant thereto; or

42-18     2.  Prevent the imposition or collection of any fine or penalty

42-19  authorized pursuant to the provisions of this chapter or the

42-20  regulations adopted pursuant thereto against the holder of the permit

42-21  or certificate.

42-22     Sec. 72. NRS 116.31151 is hereby amended to read as

42-23  follows:

42-24      116.31151  1.  Except as otherwise provided in subsection 2

42-25  and unless the declaration of a common‑interest community imposes

42-26  more stringent standards, the executive board of an association shall,

42-27  not less than 30 days or more than 60 days before the beginning of

42-28  the fiscal year of the association, prepare and distribute to each

42-29  unit’s owner a copy of:

42-30     (a) The budget for the daily operation of the association. The

42-31  budget must include, without limitation, the estimated annual

42-32  revenue and expenditures of the association and any contributions to

42-33  be made to the reserve account of the association.

42-34     (b) The budget to maintain the reserve required by paragraph (b)

42-35  of subsection 2 of NRS 116.3115. The budget must include, without

42-36  limitation:

42-37         (1) The current estimated replacement cost, estimated

42-38  remaining life and estimated useful life of each major component of

42-39  the common elements;

42-40         (2) As of the end of the fiscal year for which the budget is

42-41  prepared, the current estimate of the amount of cash reserves that

42-42  are necessary, and the current amount of accumulated cash reserves

42-43  that are set aside, to repair, replace or restore the major components

42-44  of the common elements;

43-1          (3) A statement as to whether the executive board has

43-2  determined or anticipates that the levy of one or more special

43-3  assessments will be required to repair, replace or restore any major

43-4  component of the common elements or to provide adequate reserves

43-5  for that purpose; and

43-6          (4) A general statement describing the procedures used for

43-7  the estimation and accumulation of cash reserves pursuant to

43-8  subparagraph (2), including, without limitation, the qualifications of

43-9  the person responsible for the preparation of the study of the

43-10  reserves required by NRS 116.31152.

43-11     2.  In lieu of distributing copies of the budgets of the

43-12  association required by subsection 1, the executive board may

43-13  distribute to each unit’s owner a summary of those budgets,

43-14  accompanied by a written notice that [the] :

43-15     (a) The budgets are available for review at the business office of

43-16  the association or some other suitable location within the county

43-17  where the common‑interest community is situated or, if it is

43-18  situated in more than one county, within one of those counties;

43-19  and [that copies]

43-20     (b) Copies of the budgets will be provided upon request.

43-21     Sec. 73.  NRS 116.31152 is hereby amended to read as

43-22  follows:

43-23      116.31152  1.  The executive board of an association shall:

43-24     (a) Cause to be conducted , at least once every 5 years, a study

43-25  of the reserves required to repair, replace and restore the major

43-26  components of the common elements;

43-27     (b) Review the results of that study at least annually to

43-28  determine if those reserves are sufficient; and

43-29     (c) Make any adjustments it deems necessary to maintain the

43-30  required reserves.

43-31     2.  The study of the reserves required by subsection 1 must be

43-32  conducted by a person who is qualified by training and experience

43-33  to conduct such a study, including , without limitation, a member of

43-34  the executive board, a unit’s owner or [the property manager of the

43-35  association] a community manager who is so qualified. The study

43-36  of the reserves must include, without limitation:

43-37     (a) A summary of an inspection of the major components of the

43-38  common elements that the association is obligated to repair, replace

43-39  or restore;

43-40     (b) An identification of the major components of the common

43-41  elements that the association is obligated to repair, replace or restore

43-42  which have a remaining useful life of less than 30 years;

43-43     (c) An estimate of the remaining useful life of each major

43-44  component identified pursuant to paragraph (b);

44-1      (d) An estimate of the cost of repair, replacement or restoration

44-2  of each major component identified pursuant to paragraph (b) during

44-3  and at the end of its useful life; and

44-4      (e) An estimate of the total annual assessment that may be

44-5  required to cover the cost of repairing, replacement or restoration of

44-6  the major components identified pursuant to paragraph (b), after

44-7  subtracting the reserves of the association as of the date of the study.

44-8      3.  The results of the study of the reserves required by

44-9  subsection 1 must be submitted to the Commission not later than

44-10  45 days after the date that the executive board of the association

44-11  adopts the results of the study.

44-12     4.  The [Administrator] Commission shall adopt by regulation

44-13  the qualifications required for conducting [a] the study of the

44-14  reserves required by subsection 1.

44-15     5.  If a common-interest community was developed as part of

44-16  a planned unit development pursuant to chapter 278A of NRS and

44-17  is subject to an agreement with a city or county to receive credit

44-18  against the amount of the residential construction tax that is

44-19  imposed pursuant to NRS 278.4983 and 278.4985, the association

44-20  that is organized for the common-interest community may use the

44-21  money from that credit for the repair, replacement or restoration

44-22  of park facilities and related improvements if:

44-23     (a) The park facilities and related improvements are identified

44-24  as major components of the common elements of the association;

44-25  and

44-26     (b) The association is obligated to repair, replace or restore the

44-27  park facilities and related improvements in accordance with the

44-28  study of the reserves required by subsection 1.

44-29     Sec. 74.  NRS 116.31155 is hereby amended to read as

44-30  follows:

44-31      116.31155  1.  An association shall:

44-32     (a) If the association is required to pay the fee imposed by NRS

44-33  78.150 , 82.193 or [82.193,] 86.263, pay to the Administrator a fee

44-34  established by regulation of the Administrator for every unit in the

44-35  association used for residential use.

44-36     (b) If the association is organized as a trust or partnership, pay

44-37  to the Administrator a fee established by regulation of the

44-38  Administrator for each unit in the association.

44-39     2.  The fees required to be paid pursuant to this section must be:

44-40     (a) Paid at such times as are established by the [Administrator.]

44-41  Division.

44-42     (b) Deposited with the State Treasurer for credit to the Account

44-43  for [the Ombudsman for Owners in] Common-Interest Communities

44-44  created [pursuant to] by NRS 116.1117.

45-1      (c) Established on the basis of the actual [cost] costs of

45-2  administering the Office of the Ombudsman [for Owners in

45-3  Common-Interest Communities] and the Commission and not on a

45-4  basis which includes any subsidy [for the Office.] beyond those

45-5  actual costs. In no event may the fees required to be paid pursuant

45-6  to this section exceed $3 per unit.

45-7      3.  The Administrator may by regulation establish an

45-8  administrative penalty to be imposed against an association that

45-9  violates the provisions of this section by failing to pay the fees

45-10  owed by the association within the times established by the

45-11  Division. The administrative penalty that is imposed for each

45-12  violation may not exceed 10 percent of the amount of the fees

45-13  owed by the association or $500, whichever amount is less.

45-14     4.  A unit’s owner may not be required to pay any portion of the

45-15  fees or any administrative penalties required to be paid pursuant to

45-16  this section to a master association and to an association organized

45-17  pursuant to NRS 116.3101.

45-18     [4.] 5. Upon the payment of the fees and any administrative

45-19  penalties required by this section, the Administrator shall provide to

45-20  the association evidence that it paid the fees and the administrative

45-21  penalties in compliance with this section.

45-22     Sec. 75.  NRS 116.31158 is hereby amended to read as

45-23  follows:

45-24      116.31158  1.  Each association shall, at the time it pays the

45-25  fee required by NRS 116.31155, register with the Ombudsman [for

45-26  Owners in Common-Interest Communities] on a form prescribed by

45-27  the Ombudsman.

45-28     2.  The form for registration must include, without limitation,

45-29  the information required to be maintained pursuant to paragraph

45-30  [(d)] (e) of subsection 4 of NRS 116.1116.

45-31     Sec. 76. NRS 116.3116 is hereby amended to read as follows:

45-32      116.3116  1.  The association has a lien on a unit for any

45-33  construction penalty that is imposed against the unit’s owner

45-34  pursuant to section 47 of this act, any assessment levied against

45-35  that unit or any fines imposed against the unit’s owner from the time

45-36  the construction penalty, assessment or fine becomes due. Unless

45-37  the declaration otherwise provides, any penalties, fees, charges, late

45-38  charges, fines and interest charged pursuant to paragraphs (j), (k)

45-39  and (l) of subsection 1 of NRS 116.3102 are enforceable as

45-40  assessments under this section. If an assessment is payable in

45-41  installments, the full amount of the assessment is a lien from the

45-42  time the first installment thereof becomes due.

45-43     2.  A lien under this section is prior to all other liens and

45-44  encumbrances on a unit except:

46-1      (a) Liens and encumbrances recorded before the recordation of

46-2  the declaration and, in a cooperative, liens and encumbrances which

46-3  the association creates, assumes or takes subject to;

46-4      (b) A first security interest on the unit recorded before the date

46-5  on which the assessment sought to be enforced became delinquent

46-6  [,] or, in a cooperative, the first security interest encumbering only

46-7  the unit’s owner’s interest and perfected before the date on which

46-8  the assessment sought to be enforced became delinquent; and

46-9      (c) Liens for real estate taxes and other governmental

46-10  assessments or charges against the unit or cooperative.

46-11  The lien is also prior to all security interests described in paragraph

46-12  (b) to the extent of the assessments for common expenses based on

46-13  the periodic budget adopted by the association pursuant to NRS

46-14  116.3115 which would have become due in the absence of

46-15  acceleration during the 6 months immediately preceding institution

46-16  of an action to enforce the lien. This subsection does not affect the

46-17  priority of mechanics’ or materialmen’s liens, or the priority of liens

46-18  for other assessments made by the association.

46-19     3.  Unless the declaration otherwise provides, if two or more

46-20  associations have liens for assessments created at any time on the

46-21  same property, those liens have equal priority.

46-22     4.  Recording of the declaration constitutes record notice and

46-23  perfection of the lien. No further recordation of any claim of lien for

46-24  assessment under this section is required.

46-25     5.  A lien for unpaid assessments is extinguished unless

46-26  proceedings to enforce the lien are instituted within 3 years after the

46-27  full amount of the assessments becomes due.

46-28     6.  This section does not prohibit actions to recover sums for

46-29  which subsection 1 creates a lien or prohibit an association from

46-30  taking a deed in lieu of foreclosure.

46-31     7.  A judgment or decree in any action brought under this

46-32  section must include costs and reasonable attorney’s fees for the

46-33  prevailing party.

46-34     8.  The association , upon written request , shall furnish to a

46-35  unit’s owner a statement setting forth the amount of unpaid

46-36  assessments against the unit. If the interest of the unit’s owner is real

46-37  estate [,] or if a lien for the unpaid assessments may be foreclosed

46-38  under NRS 116.31162 to 116.31168, inclusive, the statement must

46-39  be in recordable form. The statement must be furnished within 10

46-40  business days after receipt of the request and is binding on the

46-41  association, the executive board and every unit’s owner.

46-42     9.  In a cooperative, upon nonpayment of an assessment on a

46-43  unit, the unit’s owner may be evicted in the same manner as

46-44  provided by law in the case of an unlawful holdover by a

46-45  commercial tenant, and :

47-1      (a) In a cooperative where the owner’s interest in a unit is real

47-2  estate under NRS 116.1105, the association’s lien may be

47-3  foreclosed [as provided by this section or by] under NRS 116.31162

47-4  to 116.31168, inclusive.

47-5      [10.] (b) In a cooperative where the owner’s interest in a unit is

47-6  personal property [(] under NRS 116.1105 , [),] the association’s

47-7  lien [may] :

47-8          (1) May be foreclosed [in like manner] as a security interest

47-9  under NRS 104.9101 to 104.9709, inclusive [.] ; or

47-10         (2) If the declaration so provides, may be foreclosed under

47-11  NRS 116.31162 to 116.31168, inclusive.

47-12     Sec. 77.  NRS 116.31162 is hereby amended to read as

47-13  follows:

47-14      116.31162  1.  Except as otherwise provided in subsection 4,

47-15  in a condominium, in a planned community, in a cooperative where

47-16  the owner’s interest in a unit is real estate [as determined pursuant

47-17  to] under NRS 116.1105, or [a planned community,] in a

47-18  cooperative where the owner’s interest in a unit is personal

47-19  property under NRS 116.1105 and the declaration provides that a

47-20  lien may be foreclosed under NRS 116.31162 to 116.31168,

47-21  inclusive, the association may foreclose its lien by sale after:

47-22     (a) The association has mailed by certified or registered mail,

47-23  return receipt requested, to the unit’s owner or his successor in

47-24  interest, at his address if known[,] and at the address of the unit, a

47-25  notice of delinquent assessment which states the amount of the

47-26  assessments and other sums which are due in accordance with

47-27  subsection 1 of NRS 116.3116, a description of the unit against

47-28  which the lien is imposed[,] and the name of the record owner of

47-29  the unit;

47-30     (b) [The] Not less than 30 days after mailing the notice of

47-31  delinquent assessment pursuant to paragraph (a), the association

47-32  or other person conducting the sale has executed and caused to be

47-33  recorded, with the county recorder of the county in which the

47-34  common-interest community or any part of it is situated, a notice of

47-35  default and election to sell the unit to satisfy the lien, which contains

47-36  the same information as the notice of delinquent assessment, but

47-37  must also describe the deficiency in payment and the name and

47-38  address of the person authorized by the association to enforce the

47-39  lien by sale; and

47-40     (c) The unit’s owner or his successor in interest has failed to pay

47-41  the amount of the lien, including costs, fees and expenses incident to

47-42  its enforcement, for [60] 90 days following the recording of the

47-43  notice of default and election to sell.

47-44     2.  The notice of default and election to sell must be signed by

47-45  the person designated in the declaration or by the association for that

48-1  purpose[,] or , if no one is designated, by the president of the

48-2  association.

48-3      3.  The period of [60] 90 days begins on the first day following

48-4  the later of:

48-5      (a) The day on which the notice of default is recorded; or

48-6      (b) The day on which a copy of the notice of default is mailed

48-7  by certified or registered mail, return receipt requested, to the unit’s

48-8  owner or his successor in interest at his address , if known, and at

48-9  the address of the unit.

48-10     4.  The association may not foreclose a lien by sale [for the

48-11  assessment of] based on a fine or penalty for a violation of the

48-12  [declaration, bylaws, rules or regulations] governing documents of

48-13  the association [, unless the violation is of a type that threatens]

48-14  unless:

48-15     (a) The violation threatens the health, safety or welfare of the

48-16  residents of the common-interest community [.] ; or

48-17     (b) The penalty is imposed for failure to adhere to a schedule

48-18  required pursuant to section 47 of this act.

48-19     Sec. 78. NRS 116.311635 is hereby amended to read as

48-20  follows:

48-21      116.311635  The association or other person conducting the

48-22  sale shall also, after the expiration of the [60] 90 days and before

48-23  selling the unit:

48-24     1.  Give notice of the time and place of the sale in the manner

48-25  and for a time not less than that required by law for the sale of real

48-26  property upon execution, except that a copy of the notice of sale

48-27  must be mailed, on or before the date of first publication or posting,

48-28  by certified or registered mail, return receipt requested, to the unit’s

48-29  owner or his successor in interest at his address , if known, and to

48-30  the address of the unit.

48-31     2.  Mail, on or before the date of first publication or posting, a

48-32  copy of the notice by first-class mail to:

48-33     (a) Each person entitled to receive a copy of the notice of default

48-34  and election to sell notice under NRS 116.31163; [and]

48-35     (b) The holder of a recorded security interest or the purchaser of

48-36  the unit, if either of them has notified the association, before the

48-37  mailing of the notice of sale, of the existence of the security interest,

48-38  lease or contract of sale, as applicable [.] ; and

48-39     (c) The Ombudsman.

48-40     Sec. 79. NRS 116.31175 is hereby amended to read as

48-41  follows:

48-42      116.31175  1.  Except as otherwise provided in this

48-43  subsection, the executive board of an association shall, upon the

48-44  written request of a unit’s owner, make available the books, records

48-45  and other papers of the association for review during the regular

49-1  working hours of the association[.] , including, without limitation,

49-2  all records filed with a court relating to a civil or criminal action

49-3  to which the association is a party. The provisions of this

49-4  subsection do not apply to:

49-5      (a) The personnel records of the employees of the association[;]

49-6  , except for those records relating to the salaries and benefits of

49-7  those employees; and

49-8      (b) The records of the association relating to another unit’s

49-9  owner [.] , except for those records described in subsection 2.

49-10     2.  The executive board of an association shall maintain a

49-11  general record concerning each violation of the governing

49-12  documents, other than a violation involving a failure to pay an

49-13  assessment, for which the executive board has imposed a fine, a

49-14  construction penalty or any other sanction. The general record:

49-15     (a) Must contain a general description of the nature of the

49-16  violation and the type of the sanction imposed. If the sanction

49-17  imposed was a fine or construction penalty, the general record

49-18  must specify the amount of the fine or construction penalty.

49-19     (b) Must not contain the name or address of the person against

49-20  whom the sanction was imposed or any other personal

49-21  information which may be used to identify the person or the

49-22  location of the unit, if any, that is associated with the violation.

49-23     (c) Must be maintained in an organized and convenient filing

49-24  system or data system that allows a unit’s owner to search and

49-25  review the general records concerning violations of the governing

49-26  documents.

49-27     3.  If the executive board refuses to allow a unit’s owner to

49-28  review the books, records or other papers of the association, the

49-29  Ombudsman [for Owners in Common-Interest Communities] may:

49-30     (a) On behalf of the unit’s owner and upon written request,

49-31  review the books, records or other papers of the association during

49-32  the regular working hours of the association; and

49-33     (b) If he is denied access to the books, records or other papers,

49-34  request the Commission , or any member thereof acting on behalf

49-35  of the Commission, to issue a subpoena for their production.

49-36     4.  The books, records and other papers of an association

49-37  must be maintained for at least 10 years. The provisions of this

49-38  subsection do not apply to:

49-39     (a) The minutes of a meeting of the units’ owners which must

49-40  be maintained in accordance with NRS 116.3108; or

49-41     (b) The minutes of a meeting of the executive board which

49-42  must be maintained in accordance with NRS 116.31083.

 

 

50-1      Sec. 80. NRS 116.31177 is hereby amended to read as

50-2  follows:

50-3      116.31177  1.  The executive board of an association shall

50-4  maintain and make available for review at the business office of the

50-5  association or some other suitable location [:] within the county

50-6  where the common‑interest community is situated or, if it is

50-7  situated in more than one county, within one of those counties:

50-8      (a) The financial statement of the association;

50-9      (b) The budgets of the association required to be prepared

50-10  pursuant to NRS 116.31151; and

50-11     (c) The study of the reserves of the association required to be

50-12  conducted pursuant to NRS 116.31152.

50-13     2.  The executive board shall provide a copy of any of the

50-14  records required to be maintained pursuant to subsection 1 to a

50-15  unit’s owner or the Ombudsman [for Owners in Common-Interest

50-16  Communities] within 14 days after receiving a written request

50-17  therefor. The executive board may charge a fee to cover the actual

50-18  costs of preparing a copy, but not to exceed 25 cents per page.

50-19     Sec. 81. NRS 116.3118 is hereby amended to read as follows:

50-20      116.3118  1.  The association shall keep financial records

50-21  sufficiently detailed to enable the association to comply with NRS

50-22  116.4109.

50-23     2.  All financial and other records of the association must be :

50-24     (a) Maintained and made available for review at the business

50-25  office of the association or some other suitable location within the

50-26  county where the common‑interest community is situated or, if it is

50-27  situated in more than one county, within one of those counties;

50-28  and

50-29     (b) Made reasonably available for any unit’s owner and his

50-30  authorized agents to inspect, examine, photocopy and audit.

50-31     Sec. 82.  NRS 116.4108 is hereby amended to read as follows:

50-32      116.4108  1.  A person required to deliver a public offering

50-33  statement pursuant to subsection 3 of NRS 116.4102 shall provide a

50-34  purchaser with a copy of the current public offering statement not

50-35  later than the date [of any contract of sale.] on which an offer to

50-36  purchase becomes binding on the purchaser. Unless the purchaser

50-37  has personally inspected the unit, the purchaser may cancel, by

50-38  written notice, the contract of purchase until midnight of the fifth

50-39  calendar day following the date of execution of the contract, and the

50-40  contract for purchase must contain a provision to that effect.

50-41     2.  If a purchaser elects to cancel a contract pursuant to

50-42  subsection 1, he may do so by hand delivering notice thereof to the

50-43  offeror or by mailing notice thereof by prepaid United States mail to

50-44  the offeror or to his agent for service of process. Cancellation is

51-1  without penalty, and all payments made by the purchaser before

51-2  cancellation must be refunded promptly.

51-3      3.  If a person required to deliver a public offering statement

51-4  pursuant to subsection 3 of NRS 116.4102 fails to provide a

51-5  purchaser to whom a unit is conveyed with a current public offering

51-6  statement, the purchaser is entitled to actual damages, rescission or

51-7  other relief, but if the purchaser has accepted a conveyance of the

51-8  unit, he is not entitled to rescission.

51-9      Sec. 83.  NRS 116.4109 is hereby amended to read as follows:

51-10      116.4109  1.  Except in the case of a sale in which delivery of

51-11  a public offering statement is required, or unless exempt under

51-12  subsection 2 of NRS 116.4101, a unit’s owner shall furnish to a

51-13  purchaser before [execution of any contract for sale of a unit, or

51-14  otherwise before conveyance:] an offer to purchase a unit becomes

51-15  binding on the purchaser:

51-16     (a) A copy of the declaration, other than any plats and plans, the

51-17  bylaws, the rules or regulations of the association and the

51-18  information statement required by NRS 116.41095;

51-19     (b) A statement setting forth the amount of the monthly

51-20  assessment for common expenses and any unpaid assessment of any

51-21  kind currently due from the selling unit’s owner;

51-22     (c) The current operating budget of the association and a

51-23  financial statement for the association [;] , which must include a

51-24  summary of the financial components of the study of the reserves

51-25  of the association required by NRS 116.31152; and

51-26     (d) A statement of any unsatisfied judgments or pending legal

51-27  actions against the association and the status of any pending legal

51-28  actions relating to the common-interest community of which the

51-29  unit’s owner has actual knowledge.

51-30     2.  The association, within 10 days after a request by a unit’s

51-31  owner, shall furnish a certificate containing the information

51-32  necessary to enable the unit’s owner to comply with [this section.]

51-33  subsection 1. A unit’s owner providing a certificate pursuant to

51-34  subsection 1 is not liable to the purchaser for any erroneous

51-35  information provided by the association and included in the

51-36  certificate.

51-37     3.  Neither a purchaser nor the purchaser’s interest in a unit is

51-38  liable for any unpaid assessment or fee greater than the amount set

51-39  forth in the certificate prepared by the association. If the association

51-40  fails to furnish the certificate within the 10 days allowed by

51-41  subsection 2, the seller is not liable for the delinquent assessment.

51-42     4.  Upon the request of a unit’s owner, a purchaser to whom

51-43  the unit’s owner has provided a certificate pursuant to subsection

51-44  1 or an authorized agent of the unit’s owner or the purchaser, the

51-45  association shall make the entire study of the reserves of the

52-1  association which is required by NRS 116.31152 reasonably

52-2  available for the unit’s owner, purchaser or authorized agent to

52-3  inspect, examine, photocopy and audit. The study must be made

52-4  available at the business office of the association or some other

52-5  suitable location within the county where the common‑interest

52-6  community is situated or, if it is situated in more than one county,

52-7  within one of those counties.

52-8      Sec. 84. NRS 116.41095 is hereby amended to read as

52-9  follows:

52-10      116.41095  The information statement required by NRS

52-11  116.4103 and 116.4109 must be in substantially the following form:

 

52-12  BEFORE YOU PURCHASE PROPERTY IN A

52-13  COMMON-INTEREST COMMUNITY

52-14  DID YOU KNOW . . .

52-15     1.  YOU ARE AGREEING TO RESTRICTIONS ON HOW

52-16  YOU CAN USE YOUR PROPERTY?

52-17  These restrictions are contained in a document known as the

52-18  Declaration of Covenants, Conditions and Restrictions (C, C & R’s)

52-19  that should be provided for your review before making your

52-20  purchase. The C, C & R’s become a part of the title to your

52-21  property. They bind you and every future owner of the property

52-22  whether or not you have read them or had them explained to you.

52-23  The C, C & R’s, together with other “governing documents” (such

52-24  as association bylaws and rules and regulations), are intended to

52-25  preserve the character and value of properties in the community, but

52-26  may also restrict what you can do to improve or change your

52-27  property and limit how you use and enjoy your property. By

52-28  purchasing a property encumbered by C, C & R’s, you are agreeing

52-29  to limitations that could affect your lifestyle and freedom of choice.

52-30  You should review the C, C & R’s and other governing documents

52-31  before purchasing to make sure that these limitations and controls

52-32  are acceptable to you.

52-33     2.  YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS

52-34  FOR AS LONG AS YOU OWN YOUR PROPERTY?

52-35  As an owner in a common-interest community, you are responsible

52-36  for paying your share of expenses relating to the common elements,

52-37  such as landscaping, shared amenities and the operation of any

52-38  homeowner’s association. The obligation to pay these assessments

52-39  binds you and every future owner of the property. Owners’ fees are

52-40  usually assessed by the homeowner’s association and due monthly.

52-41  You have to pay dues whether or not you agree with the way the

52-42  association is managing the property or spending the assessments.

52-43  The executive board of the association may have the power to

52-44  change and increase the amount of the assessment and to levy

53-1  special assessments against your property to meet extraordinary

53-2  expenses. In some communities, major components of the

53-3  community such as roofs and private roads must be maintained and

53-4  replaced by the association. If the association is not well managed or

53-5  fails to maintain adequate reserves to repair, replace and restore

53-6  common elements, you may be required to pay large, special

53-7  assessments to accomplish these tasks.

53-8      3.  IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU

53-9  COULD LOSE YOUR HOME?

53-10  If you do not pay these assessments when due, the association

53-11  usually has the power to collect them by selling your property in a

53-12  nonjudicial foreclosure sale. If fees become delinquent, you may

53-13  also be required to pay penalties and the association’s costs and

53-14  attorney’s fees to become current. If you dispute the obligation or its

53-15  amount, your only remedy to avoid the loss of your home may be to

53-16  file a lawsuit and ask a court to intervene in the dispute.

53-17     4.  YOU MAY BECOME A MEMBER OF A

53-18  HOMEOWNER’S ASSOCIATION THAT HAS THE POWER TO

53-19  AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?

53-20  Many common-interest communities have a homeowner’s

53-21  association. In a new development, the association will usually be

53-22  controlled by the developer until a certain number of units have

53-23  been sold. After the period of developer control, the association may

53-24  be controlled by property owners like yourself who are elected by

53-25  homeowners to sit on an executive board and other boards and

53-26  committees formed by the association. The association, and its

53-27  executive board, are responsible for assessing homeowners for the

53-28  cost of operating the association and the common or shared

53-29  elements of the community and for the day to day operation and

53-30  management of the community. Because homeowners sitting on the

53-31  executive board and other boards and committees of the association

53-32  may not have the experience or professional background required to

53-33  understand and carry out the responsibilities of the association

53-34  properly, the association may hire professional managers to carry

53-35  out these responsibilities.

53-36  Homeowner’s associations operate on democratic principles. Some

53-37  decisions require all homeowners to vote, some decisions are made

53-38  by the executive board or other boards or committees established by

53-39  the association or governing documents. Although the actions of the

53-40  association and its executive board are governed by state laws, the

53-41  C, C & R’s and other documents that govern the common-interest

53-42  community, decisions made by these persons will affect your use

53-43  and enjoyment of your property, your lifestyle and freedom of

53-44  choice, and your cost of living in the community. You may not

53-45  agree with decisions made by the association or its governing bodies

54-1  even though the decisions are ones which the association is

54-2  authorized to make. Decisions may be made by a few persons on the

54-3  executive board or governing bodies that do not necessarily reflect

54-4  the view of the majority of homeowners in the community. If you do

54-5  not agree with decisions made by the association, its executive

54-6  board or other governing bodies, your remedy is typically to attempt

54-7  to use the democratic processes of the association to seek the

54-8  election of members of the executive board or other governing

54-9  bodies that are more responsive to your needs. If persons controlling

54-10  the association or its management are not complying with state laws

54-11  or the governing documents, your remedy is typically to seek to

54-12  mediate or arbitrate the dispute and, if mediation or arbitration is

54-13  unsuccessful, file a lawsuit and ask a court to resolve the dispute. In

54-14  addition to your personal cost in mediation or arbitration, or to

54-15  prosecute a lawsuit, you may be responsible for paying your share

54-16  of the association’s cost in defending against your claim. There is no

54-17  government agency in this state that investigates or intervenes to

54-18  resolve disputes in homeowner’s associations.

54-19     5.  YOU ARE REQUIRED TO PROVIDE PROSPECTIVE

54-20  BUYERS OF YOUR PROPERTY WITH INFORMATION

54-21  ABOUT LIVING IN YOUR COMMON-INTEREST

54-22  COMMUNITY?

54-23  The law requires you to provide to a prospective purchaser of your

54-24  property, before you enter into a purchase agreement, a copy of the

54-25  community’s governing documents, including the C, C & R’s,

54-26  association bylaws, and rules and regulations, as well as a copy of

54-27  this document. You are also required to provide a copy of the

54-28  association’s current financial statement, operating budget and

54-29  information regarding the amount of the monthly assessment for

54-30  common expenses, including the amount set aside as reserves for the

54-31  repair, replacement and restoration of common elements. You are

54-32  also required to inform prospective purchasers of any outstanding

54-33  judgments or lawsuits pending against the association of which you

54-34  are aware. You are also required to provide a copy of the minutes

54-35  from the most recent meeting of the homeowner’s association or its

54-36  executive board. For more information regarding these

54-37  requirements, see Nevada Revised Statutes 116.4103[.] and

54-38  116.4109.

54-39     6.  YOU HAVE CERTAIN RIGHTS REGARDING

54-40  OWNERSHIP IN A COMMON-INTEREST COMMUNITY THAT

54-41  ARE GUARANTEED YOU BY THE STATE?

54-42  Pursuant to provisions of chapter 116 of Nevada Revised Statutes,

54-43  you have the right:

54-44     (a) To be notified of all meetings of the association and its

54-45  executive board, except in cases of emergency.

55-1      (b) To attend and speak at all meetings of the association and its

55-2  executive board, except in some cases where the executive board is

55-3  authorized to meet in closed, executive session.

55-4      (c) To request a special meeting of the association upon petition

55-5  of at least 10 percent of the homeowners.

55-6      (d) To inspect, examine, photocopy and audit financial and other

55-7  records of the association.

55-8      (e) To be notified of all changes in the community’s rules and

55-9  regulations and other actions by the association or board that affect

55-10  you.

55-11     7.  QUESTIONS?

55-12  Although they may be voluminous, you should take the time to read

55-13  and understand the documents that will control your ownership of a

55-14  property in a common-interest community. You may wish to ask

55-15  your real estate professional, lawyer or other person with experience

55-16  to explain anything you do not understand. You may also request

55-17  assistance from the Ombudsman for Owners in Common-Interest

55-18  Communities, Nevada Real Estate Division, at (telephone number).

 

55-19  Buyer or prospective buyer’s initials:_____

55-20  Date:_____

55-21     Sec. 85. NRS 38.300 is hereby amended to read as follows:

55-22      38.300  As used in NRS 38.300 to 38.360, inclusive, unless the

55-23  context otherwise requires:

55-24     1.  “Assessments” means:

55-25     (a) Any charge which an association may impose against an

55-26  owner of residential property pursuant to a declaration of covenants,

55-27  conditions and restrictions, including any late charges, interest and

55-28  costs of collecting the charges; and

55-29     (b) Any penalties, fines, fees and other charges which may be

55-30  imposed by an association pursuant to paragraphs (j), (k) and (l) of

55-31  subsection 1 of NRS 116.3102.

55-32     2.  “Association” has the meaning ascribed to it in NRS

55-33  116.110315.

55-34     3.  “Civil action” includes an action for money damages or

55-35  equitable relief. The term does not include an action in equity for

55-36  injunctive relief in which there is an immediate threat of irreparable

55-37  harm, or an action relating to the title to residential property.

55-38     4.  “Division” means the Real Estate Division of the

55-39  Department of Business and Industry.

55-40     5.  “Residential property” includes, but is not limited to, real

55-41  estate within a planned community subject to the provisions of

55-42  chapter 116 of NRS. The term does not include commercial property

55-43  if no portion thereof contains property which is used for residential

55-44  purposes.

56-1      Sec. 86.  NRS 38.330 is hereby amended to read as follows:

56-2      38.330  1.  If all parties named in a written claim filed

56-3  pursuant to NRS 38.320 agree to have the claim submitted for

56-4  mediation, the parties shall reduce the agreement to writing and

56-5  shall select a mediator from the list of mediators maintained by the

56-6  Division pursuant to NRS 38.340. Any mediator selected must be

56-7  available within the geographic area. If the parties fail to agree upon

56-8  a mediator, the Division shall appoint a mediator from the list of

56-9  mediators maintained by the Division. Any mediator appointed must

56-10  be available within the geographic area. Unless otherwise provided

56-11  by an agreement of the parties, mediation must be completed within

56-12  60 days after the parties agree to mediation. Any agreement

56-13  obtained through mediation conducted pursuant to this section must,

56-14  within 20 days after the conclusion of mediation, be reduced to

56-15  writing by the mediator and a copy thereof provided to each party.

56-16  The agreement may be enforced as any other written agreement.

56-17  Except as otherwise provided in this section, the parties are

56-18  responsible for all costs of mediation conducted pursuant to this

56-19  section.

56-20     2.  If all the parties named in the claim do not agree to

56-21  mediation, the parties shall select an arbitrator from the list of

56-22  arbitrators maintained by the Division pursuant to NRS 38.340. Any

56-23  arbitrator selected must be available within the geographic area. If

56-24  the parties fail to agree upon an arbitrator, the Division shall appoint

56-25  an arbitrator from the list maintained by the Division. Any arbitrator

56-26  appointed must be available within the geographic area. Upon

56-27  appointing an arbitrator, the Division shall provide the name of the

56-28  arbitrator to each party.

56-29     3.  The Division may provide for the payment of the fees for a

56-30  mediator or an arbitrator selected or appointed pursuant to this

56-31  section from the Account for [the Ombudsman for Owners in]

56-32  Common-Interest Communities created [pursuant to] by NRS

56-33  116.1117, to the extent that :

56-34     (a) The Commission for Common-Interest Communities

56-35  approves the payment; and

56-36     (b) There is money [is] available in the account for this purpose.

56-37     4.  Except as otherwise provided in this section and except

56-38  where inconsistent with the provisions of NRS 38.300 to 38.360,

56-39  inclusive, the arbitration of a claim pursuant to this section must be

56-40  conducted in accordance with the provisions of NRS 38.231,

56-41  38.232, 38.233, 38.236 to 38.239, inclusive, 38.242 and 38.243. At

56-42  any time during the arbitration of a claim relating to the

56-43  interpretation, application or enforcement of any covenants,

56-44  conditions or restrictions applicable to residential property or any

56-45  bylaws, rules or regulations adopted by an association, the arbitrator

57-1  may issue an order prohibiting the action upon which the claim is

57-2  based. An award must be made within 30 days after the conclusion

57-3  of arbitration, unless a shorter period is agreed upon by the parties to

57-4  the arbitration.

57-5      5.  If all the parties have agreed to nonbinding arbitration, any

57-6  party to the arbitration may, within 30 days after a decision and

57-7  award have been served upon the parties, commence a civil action in

57-8  the proper court concerning the claim which was submitted for

57-9  arbitration. Any complaint filed in such an action must contain a

57-10  sworn statement indicating that the issues addressed in the

57-11  complaint have been arbitrated pursuant to the provisions of NRS

57-12  38.300 to 38.360, inclusive. If such an action is not commenced

57-13  within that period, any party to the arbitration may, within 1 year

57-14  after the service of the award, apply to the proper court for a

57-15  confirmation of the award pursuant to NRS 38.239.

57-16     6.  If all the parties agree in writing to binding arbitration, the

57-17  arbitration must be conducted in accordance with the provisions of

57-18  this chapter . [38 of NRS.] An award procured pursuant to such

57-19  arbitration may be vacated and a rehearing granted upon application

57-20  of a party pursuant to the provisions of NRS 38.241.

57-21     7.  If, after the conclusion of arbitration, a party:

57-22     (a) Applies to have an award vacated and a rehearing granted

57-23  pursuant to NRS 38.241; or

57-24     (b) Commences a civil action based upon any claim which was

57-25  the subject of arbitration,

57-26  the party shall, if he fails to obtain a more favorable award or

57-27  judgment than that which was obtained in the initial arbitration, pay

57-28  all costs and reasonable attorney’s fees incurred by the opposing

57-29  party after the application for a rehearing was made or after the

57-30  complaint in the civil action was filed.

57-31     8.  Upon request by a party, the Division shall provide a

57-32  statement to the party indicating the amount of the fees for a

57-33  mediator or an arbitrator selected or appointed pursuant to this

57-34  section.

57-35     9.  As used in this section, “geographic area” means an area

57-36  within 150 miles from any residential property or association which

57-37  is the subject of a written claim submitted pursuant to NRS 38.320.

57-38     Sec. 87. NRS 78.150 is hereby amended to read as follows:

57-39      78.150  1.  A corporation organized pursuant to the laws of

57-40  this state shall, on or before the first day of the second month after

57-41  the filing of its articles of incorporation with the Secretary of State,

57-42  file with the Secretary of State a list, on a form furnished by him,

57-43  containing:

57-44     (a) The name of the corporation;

57-45     (b) The file number of the corporation, if known;

58-1      (c) The names and titles of the president, secretary, treasurer and

58-2  of all the directors of the corporation;

58-3      (d) The mailing or street address, either residence or business, of

58-4  each officer and director listed, following the name of the officer or

58-5  director;

58-6      (e) The name and street address of the resident agent of the

58-7  corporation; and

58-8      (f) The signature of an officer of the corporation certifying that

58-9  the list is true, complete and accurate.

58-10     2.  The corporation shall annually thereafter, on or before the

58-11  last day of the month in which the anniversary date of incorporation

58-12  occurs in each year, file with the Secretary of State, on a form

58-13  furnished by him, an annual list containing all of the information

58-14  required in subsection 1.

58-15     3.  Each list required by subsection 1 or 2 must be accompanied

58-16  by a declaration under penalty of perjury that the corporation has

58-17  complied with the provisions of chapter 364A of NRS.

58-18     4.  Upon filing the list required by:

58-19     (a) Subsection 1, the corporation shall pay to the Secretary of

58-20  State a fee of $165.

58-21     (b) Subsection 2, the corporation shall pay to the Secretary of

58-22  State a fee of $85.

58-23     5.  The Secretary of State shall, 60 days before the last day for

58-24  filing each annual list required by subsection 2, cause to be mailed

58-25  to each corporation which is required to comply with the provisions

58-26  of NRS 78.150 to 78.185, inclusive, and which has not become

58-27  delinquent, a notice of the fee due pursuant to subsection 4 and a

58-28  reminder to file the annual list required by subsection 2. Failure of

58-29  any corporation to receive a notice or form does not excuse it from

58-30  the penalty imposed by law.

58-31     6.  If the list to be filed pursuant to the provisions of subsection

58-32  1 or 2 is defective in any respect or the fee required by subsection 4

58-33  or 8 is not paid, the Secretary of State may return the list for

58-34  correction or payment.

58-35     7.  An annual list for a corporation not in default which is

58-36  received by the Secretary of State more than 60 days before its due

58-37  date shall be deemed an amended list for the previous year and must

58-38  be accompanied by a fee of $85 for filing. A payment submitted

58-39  pursuant to this subsection does not satisfy the requirements of

58-40  subsection 2 for the year to which the due date is applicable.

58-41     8.  If the corporation is an association as defined in NRS

58-42  116.110315, the Secretary of State shall not accept the filing

58-43  required by this section unless it is accompanied by evidence of the

58-44  payment of the fee required to be paid pursuant to NRS 116.31155

59-1  that is provided to the association pursuant to [subsection 4 of] that

59-2  section.

59-3      Sec. 88.  As soon as practicable after July 1, 2003, the

59-4  Governor shall appoint to the Commission for Common-Interest

59-5  Communities:

59-6      1.  One member whose term begins on October 1, 2003, and

59-7  expires on October 1, 2004.

59-8      2.  Two members whose terms begin on October 1, 2003, and

59-9  expire on October 1, 2005.

59-10     3.  Two members whose terms begin on October 1, 2003, and

59-11  expire on October 1, 2006.

59-12     Sec. 89. 1.  Notwithstanding the provisions of this act and

59-13  except as otherwise provided in subsection 2, during the period from

59-14  October 1, 2003, until January 1, 2004, the Real Estate Commission,

59-15  the Real Estate Administrator, the Ombudsman for Owners in

59-16  Common-Interest Communities and the Real Estate Division of the

59-17  Department of Business and Industry shall continue to exercise all

59-18  the powers and perform all the duties that, before October 1, 2003,

59-19  were assigned to them pursuant to the provisions of chapter 116 of

59-20  NRS.

59-21     2.  During the period described in subsection 1, the

59-22  Commission for Common-Interest Communities, the Real Estate

59-23  Administrator, the Ombudsman for Owners in Common-Interest

59-24  Communities and the Real Estate Division of the Department of

59-25  Business and Industry may exercise any power and perform any

59-26  duty assigned to them pursuant to the provisions of chapter 116 of

59-27  NRS, as amended by this act, if the exercise of the power or the

59-28  performance of the duty is necessary as an organizational,

59-29  preparatory or preliminary measure to prepare them to carry out

59-30  those provisions.

59-31     Sec. 90.  1.  The State Treasurer shall transfer any balance

59-32  remaining unexpended on October 1, 2003, in the Account for the

59-33  Ombudsman for Owners in Common-Interest Communities in the

59-34  State General Fund to the Account for Common-Interest

59-35  Communities which is created by NRS 116.1117, as amended by

59-36  this act.

59-37     2.  On and after October 1, 2003, the State Treasurer shall treat

59-38  any outstanding claims against the Account for the Ombudsman for

59-39  Owners in Common-Interest Communities as claims against the

59-40  Account for Common-Interest Communities.

59-41     Sec. 91. 1.  Any administrative regulations adopted by an

59-42  officer or an agency whose name has been changed or whose

59-43  responsibilities have been transferred pursuant to the provisions of

59-44  this act to another officer or agency remain in force until amended

60-1  by the officer or agency to which the responsibility for the adoption

60-2  of the regulations has been transferred.

60-3      2.  Any contracts or other agreements entered into by an officer

60-4  or agency whose name has been changed or whose responsibilities

60-5  have been transferred pursuant to the provisions of this act to

60-6  another officer or agency are binding upon the officer or agency to

60-7  which the responsibility for the administration of the provisions of

60-8  the contract or other agreement has been transferred. Such contracts

60-9  and other agreements may be enforced by the officer or agency to

60-10  which the responsibility for the enforcement of the provisions of the

60-11  contract or other agreement has been transferred.

60-12     3.  Any action taken by an officer or agency whose name has

60-13  been changed or whose responsibilities have been transferred

60-14  pursuant to the provisions of this act to another officer or agency

60-15  remains in effect as if taken by the officer or agency to which the

60-16  responsibility for the enforcement of such actions has been

60-17  transferred.

60-18     Sec. 92. 1.  Not later than July 1, 2005, an association or

60-19  master association of a common-interest community shall have

60-20  conducted elections of members of the executive board so that the

60-21  terms of the members of the executive board are staggered as

60-22  required by the provisions of NRS 116.31034, as amended by

60-23  section 62 of this act.

60-24     2.  As used in this section:

60-25     (a) “Association” has the meaning ascribed to it in NRS

60-26  116.110315.

60-27     (b) “Common-interest community” has the meaning ascribed to

60-28  it in NRS 116.110323.

60-29     (c) “Executive board” has the meaning ascribed to it in NRS

60-30  116.110345.

60-31     (d) “Master association” has the meaning ascribed to it in NRS

60-32  116.110358.

60-33     Sec. 93.  1.  This section and section 88 of this act become

60-34  effective on July 1, 2003.

60-35     2.  Sections 1 to 23, inclusive, 38 to 69, inclusive, 72 to 87,

60-36  inclusive, and 89 to 92, inclusive, of this act become effective on

60-37  October 1, 2003.

60-38     3.  Sections 24 to 37, inclusive, 70 and 71 of this act become

60-39  effective on October 1, 2003, for the purpose of adopting

60-40  regulations and on January 1, 2004, for all other purposes.

60-41     4.  Sections 25 and 26 of this act expire by limitation on the

60-42  date on which the provisions of 42 U.S.C. § 666 requiring each state

60-43  to establish procedures under which the state has authority to

60-44  withhold or suspend, or to restrict the use of professional,

60-45  occupational and recreational licenses of persons who:

61-1      (a) Have failed to comply with a subpoena or warrant relating to

61-2  a proceeding to determine the paternity of a child or to establish or

61-3  enforce an obligation for the support of a child; or

61-4      (b) Are in arrears in the payment for the support of one or more

61-5  children,

61-6  are repealed by the Congress of the United States, whichever is

61-7  earlier.

 

61-8  H