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.

 

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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, unless

12-2  the respondent has knowingly and willfully committed a violation,

12-3  if the respondent is a member of an executive board or an officer

12-4  of an association:

12-5      (a) The association is liable for all fines and costs imposed

12-6  against the respondent pursuant to this section; and

12-7      (b) The respondent may not be held personally liable for those

12-8  fines and costs.

12-9      Sec. 36.  If the Commission or a hearing panel, after notice

12-10  and hearing, finds that the executive board of an association or

12-11  any person acting on behalf of the association has committed a

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

12-13  all of the following actions:

12-14     1.  Order an audit of the association.

12-15     2.  Require the executive board to hire a community manager

12-16  who holds a permit or certificate.

12-17     Sec. 37.  1.  If the Commission or the Division has

12-18  reasonable cause to believe, based on evidence satisfactory to it,

12-19  that any person has committed a violation or will continue to

12-20  commit violations, the Commission or the Division may bring an

12-21  action in the district court for the county in which the person

12-22  resides or, if the person does not reside in this state, in any court

12-23  of competent jurisdiction in this state, to enjoin that person from

12-24  continuing to commit the violations or from doing any act in

12-25  furtherance of the violations.

12-26     2.  The action must be brought in the name of the State of

12-27  Nevada.

12-28     3.  The court may issue the injunction without:

12-29     (a) Proof of actual damages sustained by any person.

12-30     (b) The filing of any bond.

12-31     Sec. 38.  1.  Notwithstanding any provision of the governing

12-32  documents to the contrary, and except as otherwise provided in

12-33  this section, a unit’s owner is entitled to display the flag of the

12-34  United States, in a manner that is consistent with the Federal Flag

12-35  Code, from or on:

12-36     (a) A flagpole or staff which is located on exterior property

12-37  within the boundaries of his unit or which is attached to an

12-38  exterior limited common element that forms a part of the

12-39  boundaries of his unit.

12-40     (b) A window, ledge, sill, railing, patio, terrace or balcony of

12-41  his unit or an exterior limited common element that forms a part

12-42  of the boundaries of his unit, whether or not the flag is displayed

12-43  from a flagpole or staff.

12-44     2.  An association may adopt rules that:

13-1      (a) Prohibit the display of the flag of the United States in a

13-2  manner that is inconsistent with the Federal Flag Code.

13-3      (b) Prohibit the display of the flag of the United States if the

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

13-5  horizontal dimension. For the purposes of this paragraph, the

13-6  horizontal dimension of the flag is the dimension that is parallel

13-7  with the horizontal stripes of the flag, regardless of the position in

13-8  which the flay is displayed.

13-9      (c) Establish a maximum number of flags of the United States

13-10  that may be displayed from, on or around the exterior of a unit.

13-11  The maximum number may be one.

13-12     (d) Prohibit the display of the flag of the United States from a

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

13-14     (e) Prohibit the display of the flag of the United States in a

13-15  manner that poses a real and substantial danger to health or

13-16  safety.

13-17     3.  As used in this section:

13-18     (a) “Federal Flag Code” means the rules and customs

13-19  pertaining to the display and use of the flag of the United States

13-20  which are codified in 4 U.S.C. §§ 5 to 10, inclusive, as altered,

13-21  modified or repealed by the President of the United States

13-22  pursuant to 4 U.S.C. § 10, and any additional rules pertaining to

13-23  the display and use of the flag of the United States which are

13-24  prescribed by the President pursuant to 4 U.S.C. § 10.

13-25     (b) “Flag of the United States” does not include a depiction or

13-26  emblem of the flag of the United States that is made of balloons,

13-27  flora, lights, paint, paving materials, roofing, siding or any other

13-28  similar building, decorative or landscaping component or

13-29  material.

13-30     Sec. 39.  1.  If an executive board receives a written

13-31  complaint from a unit’s owner alleging that the executive board

13-32  has violated any provision of this chapter or any provision of the

13-33  governing documents of the association, the executive board shall,

13-34  if action is required by the executive board, place the subject of the

13-35  complaint on the agenda of the next regularly scheduled meeting

13-36  of the executive board.

13-37     2.  Not later than 10 business days after the date that the

13-38  association receives such a complaint, the executive board or an

13-39  authorized representative of the association shall acknowledge the

13-40  receipt of the complaint and notify the unit’s owner that, if action

13-41  is required by the executive board, the subject of the complaint will

13-42  be placed on the agenda of the next regularly scheduled meeting

13-43  of the executive board.

14-1      Sec. 40.  A member of an executive board, an officer of an

14-2  association or a community manager shall not solicit or accept

14-3  any form of compensation, gratuity or other remuneration that:

14-4      1.  Would improperly influence or would appear to a

14-5  reasonable person to improperly influence the decisions made by

14-6  those persons; or

14-7      2.  Would result or would appear to a reasonable person to

14-8  result in a conflict of interest for those persons.

14-9      Sec. 41.  An executive board, a member of an executive board

14-10  or an officer, employee or agent of an association shall not take,

14-11  or direct or encourage another person to take, any retaliatory

14-12  action against a unit’s owner because the unit’s owner has:

14-13     1.  Complained in good faith about any alleged violation of

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

14-15  association; or

14-16     2.  Requested in good faith to review the books, records or

14-17  other papers of the association.

14-18     Sec. 42.  1.  Except as otherwise provided in this section, a

14-19  member of an executive board or an officer of an association shall

14-20  not:

14-21     (a) On or after October 1, 2003, enter into a contract or renew

14-22  a contract with the association to provide goods or services to the

14-23  association; or

14-24     (b) Otherwise accept any commission, personal profit or

14-25  compensation of any kind from the association for providing

14-26  goods or services to the association.

14-27     2.  The provisions of this section do not prohibit a declarant,

14-28  an affiliate of a declarant or an officer, employee or agent of a

14-29  declarant or an affiliate of a declarant from:

14-30     (a) Receiving any commission, personal profit or

14-31  compensation from the association, the declarant or an affiliate of

14-32  the declarant for any goods or services furnished to the

14-33  association;

14-34     (b) Entering into contracts with the association, the declarant

14-35  or affiliate of the declarant; or

14-36     (c) Serving as a member of the executive board or as an officer

14-37  of the association.

14-38     Sec. 43.  1.  If a common-interest community is developed in

14-39  separate phases and any declarant or successor declarant is

14-40  constructing any common elements that will be added to the

14-41  association’s common elements after the date on which the units’

14-42  owners other than the declarant may elect a majority of the

14-43  members of the executive board, the declarant or successor

14-44  declarant who is constructing such additional common elements is

14-45  responsible for:

15-1      (a) Paying all expenses related to the additional common

15-2  elements which are incurred before the conveyance of the

15-3  additional common elements to the association; and

15-4      (b) Except as otherwise provided in NRS 116.31038, delivering

15-5  to the association that declarant’s share of the amount specified in

15-6  the study of the reserves completed pursuant to subsection 2.

15-7      2.  Before conveying the additional common elements to the

15-8  association, the declarant or successor declarant who constructed

15-9  the additional common elements shall deliver to the association a

15-10  study of the reserves for the additional common elements which

15-11  satisfies the requirements of NRS 116.31152.

15-12     3.  As used in this section, “successor declarant” includes,

15-13  without limitation, any successor declarant who does not control

15-14  the association established by the initial declarant.

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

15-16  a county whose population is 400,000 or more, a person who

15-17  owns, or directly or indirectly has an interest in, one or more units

15-18  within a planned community that are restricted to residential use

15-19  by the declaration, may use that unit or one of those units for a

15-20  transient commercial use only if:

15-21     (a) The governing documents of the association and any

15-22  master association do not prohibit such use;

15-23     (b) The executive board of the association and any master

15-24  association approve the transient commercial use of the unit,

15-25  except that such approval is not required if the planned

15-26  community and one or more hotels are subject to the governing

15-27  documents of a master association and those governing documents

15-28  do not prohibit such use; and

15-29     (c) The unit is properly zoned for the transient commercial use

15-30  and any license required by the local government for the transient

15-31  commercial use is obtained.

15-32     2.  In a county whose population is 400,000 or more, a

15-33  declarant who owns, or directly or indirectly has an interest in,

15-34  one or more units within a planned community under the

15-35  governing documents of the association that are restricted to

15-36  residential use by the declaration, may use that unit or those units

15-37  for a transient commercial use during the period that the

15-38  declarant is offering units for sale within the planned community

15-39  if such use complies with the requirements set forth in paragraphs

15-40  (a) and (c) of subsection 1.

15-41     3.  The association and any master association may establish

15-42  requirements for the transient commercial use of a unit pursuant

15-43  to the provisions of this section, including, without limitation, the

15-44  payment of additional fees that are related to any increase in

16-1  services or other costs associated with the transient commercial

16-2  use of the unit.

16-3      4.  As used in this section:

16-4      (a) “Remuneration” means any compensation, money, rent or

16-5  other valuable consideration given in return for the occupancy,

16-6  possession or use of a unit.

16-7      (b) “Transient commercial use” means the use of a unit, for

16-8  remuneration, as a hostel, hotel, inn, motel, resort, vacation rental

16-9  or other form of transient lodging if the term of the occupancy,

16-10  possession or use of the unit is for less than 30 consecutive

16-11  calendar days.

16-12     Sec. 45.  The executive board of a master association of any

16-13  common-interest community that was created before January 1,

16-14  1975, and is located in a county whose population is 400,000 or

16-15  more may record an amendment to the declaration pursuant to

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

16-17  the common elements of the master association among the units of

16-18  the common-interest community uniformly and based upon the

16-19  actual costs associated with each unit.

16-20     Sec. 46.  1.  If the declaration so provides, in a common-

16-21  interest community that consists of at least 1,000 units, the voting

16-22  rights of the units’ owners in the association for that common-

16-23  interest community may be exercised by delegates or

16-24  representatives.

16-25     2.  In addition to a common-interest community identified in

16-26  subsection 1, if the declaration so provides, in a common-interest

16-27  community created before October 1, 1999, the voting rights of the

16-28  units’ owners in the association for that common-interest

16-29  community may be exercised by delegates or representatives.

16-30     3.  For the purposes of subsection 1, each unit that a

16-31  declarant has reserved the right to create pursuant to NRS

16-32  116.2105 and for which developmental rights exist must be

16-33  counted in determining the number of units in a common-interest

16-34  community.

16-35     4.  Notwithstanding any provision in the declaration, the

16-36  election of any delegate or representative must be conducted by

16-37  secret written ballot.

16-38     5.  When an election of a delegate or representative is

16-39  conducted by secret written ballot:

16-40     (a) The secretary or other officer of the association specified in

16-41  the bylaws of the association shall cause a secret written ballot

16-42  and a return envelope to be sent, prepaid by United States mail, to

16-43  the mailing address of each unit within the common-interest

16-44  community or to any other mailing address designated in writing

16-45  by the unit’s owner.

17-1      (b) Each unit’s owner must be provided with at least 15 days

17-2  after the date the secret written ballot is mailed to the unit’s owner

17-3  to return the secret written ballot to the association.

17-4      (c) Only the secret written ballots that are returned to the

17-5  association in the manner prescribed on the ballot may be counted

17-6  to determine the outcome of the election.

17-7      (d) The secret written ballots must be opened and counted at a

17-8  meeting called for the purpose of electing delegates or

17-9  representatives. A quorum is not required to be present when the

17-10  secret written ballots are opened and counted at the meeting.

17-11     (e) A candidate for delegate or representative may not possess,

17-12  be given access to or participate in the opening or counting of the

17-13  secret written ballots that are returned to the association in the

17-14  manner prescribed on the ballot before those secret written ballots

17-15  have been opened and counted at a meeting called for that

17-16  purpose.

17-17     Sec. 47.  1.  A unit’s owner shall adhere to a schedule

17-18  required by the association for:

17-19     (a) The completion of the design of a unit or the design of an

17-20  improvement to a unit;

17-21     (b) The commencement of the construction of a unit or the

17-22  construction of an improvement to a unit;

17-23     (c) The completion of the construction of a unit or the

17-24  construction of an improvement to the unit; or

17-25     (d) The issuance of a permit which is necessary for the

17-26  occupancy of a unit or for the use of an improvement to a unit.

17-27     2.  The association may impose and enforce a construction

17-28  penalty against a unit’s owner who fails to adhere to a schedule as

17-29  required pursuant to subsection 1 if:

17-30     (a) The maximum amount of the construction penalty and the

17-31  schedule are set forth in:

17-32         (1) The declaration;

17-33         (2) Another document related to the common-interest

17-34  community that is recorded before the date on which the unit’s

17-35  owner acquired title to the unit; or

17-36         (3) A contract between the unit’s owner and the

17-37  association; and

17-38     (b) The unit’s owner receives notice of the alleged violation

17-39  which informs him that he has a right to a hearing on the alleged

17-40  violation.

17-41     3.  For the purposes of this chapter, a construction penalty is

17-42  not a fine.

17-43     Sec. 47.5.  In conducting any meetings, a rural agricultural

17-44  residential common-interest community must comply with the

18-1  provisions set forth in chapter 241 of NRS concerning open

18-2  meetings which are generally applicable to public bodies.

18-3      Sec. 48.  If a matter governed by this chapter is also governed

18-4  by chapter 78 of NRS, NRS 81.010 to 81.160, inclusive, or chapter

18-5  82 of NRS and there is a conflict between the provisions of this

18-6  chapter and the provisions of chapter 78 of NRS, NRS 81.010 to

18-7  81.160, inclusive, or chapter 82 of NRS, the provisions of this

18-8  chapter prevail.

18-9      Sec. 49.  NRS 116.1103 is hereby amended to read as follows:

18-10     116.1103  [In] As used in this chapter and in the declaration

18-11  and bylaws [(NRS 116.3106), unless specifically provided otherwise

18-12  or] of an association, unless the context otherwise requires, [and in

18-13  this chapter,] the words and terms defined in NRS 116.110305 to

18-14  116.110393, inclusive, and sections 2 to 12, inclusive, of this act

18-15  have the meanings ascribed to them in those sections.

18-16     Sec. 50.  NRS 116.110305 is hereby amended to read as

18-17  follows:

18-18     116.110305  “Administrator” means the Real Estate

18-19  Administrator . [of the Real Estate Division of the Department of

18-20  Business and Industry.]

18-21     Sec. 51.  NRS 116.11145 is hereby amended to read as

18-22  follows:

18-23     116.11145  1.  To carry out the purposes of this chapter, the

18-24  [Real Estate] Commission, or any member thereof [,] acting on

18-25  behalf of the Commission or acting on behalf of a hearing panel,

18-26  may issue subpoenas to compel the attendance of witnesses and the

18-27  production of books, records and other papers.

18-28     2.  If any person fails to comply with a subpoena issued by the

18-29  Commission or any member thereof pursuant to this section within

18-30  [10] 20 days after [its issuance,] the date of service of the

18-31  subpoena, the Commission may petition the district court for an

18-32  order of the court compelling compliance with the subpoena.

18-33     3.  Upon such a petition, the court shall enter an order directing

18-34  the person subpoenaed to appear before the court at a time and place

18-35  to be fixed by the court in its order, the time to be not more than

18-36  [10] 20 days after the date of service of the order, and show cause

18-37  why he has not complied with the subpoena. A certified copy must

18-38  be served upon the person subpoenaed.

18-39     4.  If it appears to the court that the subpoena was regularly

18-40  issued by the Commission [,] or any member thereof pursuant to

18-41  this section, the court shall enter an order compelling compliance

18-42  with the subpoena, and upon failure to obey the order the person

18-43  shall be dealt with as for contempt of court.

 

 

19-1      Sec. 52.  NRS 116.1116 is hereby amended to read as follows:

19-2      116.1116  1.  The Office of the Ombudsman for Owners in

19-3  Common-Interest Communities is hereby created within the [Real

19-4  Estate Division of the Department of Business and Industry.]

19-5  Division.

19-6      2.  The Administrator shall appoint the Ombudsman . [for

19-7  Owners in Common-Interest Communities.] The Ombudsman [for

19-8  Owners in Common-Interest Communities] is in the unclassified

19-9  service of the State.

19-10     3.  The Ombudsman [for Owners in Common-Interest

19-11  Communities] must be qualified by training and experience to

19-12  perform the duties and functions of his office.

19-13     4.  [The Ombudsman for Owners in Common-Interest

19-14  Communities] In addition to any other duties set forth in this

19-15  chapter, the Ombudsman shall:

19-16     (a) Assist in processing claims submitted to mediation or

19-17  arbitration pursuant to NRS 38.300 to 38.360, inclusive;

19-18     (b) Assist owners in common-interest communities to

19-19  understand their rights and responsibilities as set forth in this

19-20  chapter and the governing documents of their associations,

19-21  including, without limitation, publishing materials related to those

19-22  rights and responsibilities;

19-23     (c) Assist [persons appointed or elected to serve on] members of

19-24  executive boards and officers of associations to carry out their

19-25  duties; [and]

19-26     (d) When appropriate, investigate disputes involving the

19-27  provisions of this chapter or the governing documents of an

19-28  association and assist in resolving such disputes; and

19-29     (e) Compile and maintain a registration of each association

19-30  organized within the State which includes, without limitation [:] ,

19-31  the following information:

19-32         (1) The name, address and telephone number of the

19-33  association;

19-34         (2) The name of [the person engaged in property

19-35  management] each community manager for the common-interest

19-36  community [or] and the name of [the] any other person who

19-37  [manages] is authorized to manage the property at the site of the

19-38  common-interest community;

19-39         (3) The names, mailing addresses and telephone numbers of

19-40  the members of the executive board of the association;

19-41         (4) The name of the declarant;

19-42         (5) The number of units in the common-interest community;

19-43  [and]

19-44         (6) The total annual assessment made by the association[.] ;

20-1          (7) The number of foreclosures which were completed on

20-2  units within the common-interest community and which were

20-3  based on liens for the failure of the unit’s owner to pay any

20-4  assessments levied against the unit or any fines imposed against

20-5  the unit’s owner; and

20-6          (8) Whether the study of the reserves of the association has

20-7  been conducted pursuant to NRS 116.31152 and, if so, the date on

20-8  which it was completed.

20-9      Sec. 53.  NRS 116.1117 is hereby amended to read as follows:

20-10     116.1117  1.  There is hereby created the Account for [the

20-11  Ombudsman for Owners in] Common-Interest Communities in

20-12  the State General Fund. The Account must be administered by the

20-13  Administrator.

20-14     2.  [The] Except as otherwise provided in subsection 3, all

20-15  money received by the Commission, a hearing panel or the

20-16  Division pursuant to this chapter, including, without limitation,

20-17  the fees collected pursuant to NRS 116.31155 , must be [credited to]

20-18  deposited into the Account.

20-19     3.  If the Commission imposes a fine or penalty, the

20-20  Commission shall deposit the money collected from the imposition

20-21  of the fine or penalty with the State Treasurer for credit to the

20-22  State General Fund. If the money is so deposited, the Commission

20-23  may present a claim to the State Board of Examiners for

20-24  recommendation to the Interim Finance Committee if money is

20-25  required to pay attorney’s fees or the costs of an investigation, or

20-26  both.

20-27     4.  The interest and income earned on the money in the

20-28  Account, after deducting any applicable charges, must be credited to

20-29  the Account.

20-30     [4.] 5. The money in the Account must be used solely to defray

20-31  [the] :

20-32     (a) The costs and expenses of [administering] the Commission

20-33  and the Office of the Ombudsman [for Owners in Common -Interest

20-34  Communities and for the payment of fees for a mediator or an

20-35  arbitrator] ; and

20-36     (b) If authorized by the Commission or any regulations

20-37  adopted by the Commission, the costs and expenses of subsidizing

20-38  proceedings for mediation and arbitration conducted pursuant to

20-39  NRS [38.330.] 38.300 to 38.360, inclusive.

20-40     Sec. 54.  NRS 116.1201 is hereby amended to read as follows:

20-41     116.1201  1.  Except as otherwise provided in this section and

20-42  NRS 116.1203, this chapter applies to all common-interest

20-43  communities created within this state.

20-44     2.  This chapter does not apply to:

20-45     (a) Associations created for the limited purpose of maintaining:

21-1          (1) The landscape of the common elements of a common-

21-2  interest community;

21-3          (2) Facilities for flood control; or

21-4          (3) [A] Except as otherwise provided in section 47.5 of this

21-5  act, a rural agricultural residential common-interest community.

21-6      (b) A planned community in which all units are restricted

21-7  exclusively to nonresidential use unless the declaration provides that

21-8  [the] this chapter does apply to that planned community. This

21-9  chapter applies to a planned community containing both units that

21-10  are restricted exclusively to nonresidential use and other units that

21-11  are not so restricted[,] only if the declaration so provides or if the

21-12  real estate comprising the units that may be used for residential

21-13  purposes would be a planned community in the absence of the units

21-14  that may not be used for residential purposes.

21-15     (c) Common-interest communities or units located outside of

21-16  this state, but the provisions of NRS 116.4102 to 116.4108,

21-17  inclusive, apply to all contracts for the disposition thereof signed in

21-18  this state by any party unless exempt under subsection 2 of

21-19  NRS 116.4101.

21-20     (d) A common-interest community that was created before

21-21  January 1, 1992, is located in a county whose population is less

21-22  than 50,000, and has less than 50 percent of the units within the

21-23  community put to residential use, unless a majority of the units’

21-24  owners otherwise elect in writing.

21-25     (e) Except as otherwise provided in this chapter, time shares

21-26  governed by the provisions of chapter 119A of NRS.

21-27     3.  The provisions of this chapter do not:

21-28     (a) Prohibit a common-interest community created before

21-29  January 1, 1992, from providing for separate classes of voting for

21-30  the units’ owners of the association;

21-31     (b) Require a common-interest community created before

21-32  January 1, 1992, to comply with the provisions of NRS 116.2101 to

21-33  116.2122, inclusive;

21-34     (c) Invalidate any assessments that were imposed on or before

21-35  October 1, 1999, by a common-interest community created before

21-36  January 1, 1992; or

21-37     (d) Prohibit a common-interest community created before

21-38  January 1, 1992, or a common-interest community described in

21-39  section 46 of this act from providing for a representative form of

21-40  government.

21-41     4.  The provisions of chapters 117 and 278A of NRS do not

21-42  apply to common-interest communities.

21-43     5.  [For the purposes of this section, the Administrator] The

21-44  Commission shall establish, by regulation, the criteria for

21-45  determining whether an association [is created for the limited

22-1  purpose of maintaining the landscape of the common elements of a

22-2  common-interest community, maintaining facilities for flood control

22-3  or maintaining a rural agricultural residential] or a common-interest

22-4  community [.] satisfies the requirements for an exemption from

22-5  any provision of this chapter.

22-6      Sec. 55.  NRS 116.1203 is hereby amended to read as follows:

22-7      116.1203  1.  Except as otherwise provided in subsection 2, if

22-8  a planned community contains no more than 12 units and is not

22-9  subject to any developmental rights, it is subject only to NRS

22-10  116.1105, 116.1106 and 116.1107 unless the declaration provides

22-11  that this entire chapter is applicable.

22-12     2.  Except for NRS 116.3104, 116.31043, 116.31046 and

22-13  116.31138, the provisions of NRS 116.3101 to 116.3119, inclusive,

22-14  and section 47 of this act and the definitions set forth in NRS

22-15  116.110305 to 116.110393, inclusive, and sections 2 to 12,

22-16  inclusive, of this act, to the extent that such definitions are

22-17  necessary in construing any of those [sections,] provisions, apply to

22-18  a residential planned community containing more than six units.

22-19     Sec. 56.  NRS 116.1206 is hereby amended to read as follows:

22-20     116.1206  1.  Any provision contained in a declaration, bylaw

22-21  or other governing document of a common-interest community

22-22  [created before January 1, 1992, that does not conform to] that

22-23  violates the provisions of this chapter shall be deemed to conform

22-24  with those provisions by operation of law, and any such declaration,

22-25  bylaw or other governing document is not required to be amended to

22-26  conform to those provisions.

22-27     2.  In the case of amendments to the declaration, bylaws or plats

22-28  and plans of any common-interest community created before

22-29  January 1, 1992:

22-30     (a) If the result accomplished by the amendment was permitted

22-31  by law before January 1, 1992, the amendment may be made either

22-32  in accordance with that law, in which case that law applies to that

22-33  amendment, or it may be made under this chapter; and

22-34     (b) If the result accomplished by the amendment is permitted by

22-35  this chapter, and was not permitted by law before January 1, 1992,

22-36  the amendment may be made under this chapter.

22-37     3.  An amendment to the declaration, bylaws or plats and plans

22-38  authorized by this section to be made under this chapter must be

22-39  adopted in conformity with the applicable provisions of chapter 117

22-40  or 278A of NRS and with the procedures and requirements specified

22-41  by those instruments. If an amendment grants to any person any

22-42  rights, powers or privileges permitted by this chapter, all correlative

22-43  obligations, liabilities and restrictions in this chapter also apply to

22-44  that person.

 

23-1      Sec. 57.  NRS 116.2103 is hereby amended to read as follows:

23-2      116.2103  1.  [All provisions of the declaration and bylaws are

23-3  severable.] The inclusion in a governing document of an

23-4  association of a provision that violates any provision of this

23-5  chapter does not render any other provisions of the governing

23-6  document invalid or otherwise unenforceable if the other

23-7  provisions can be given effect in accordance with their original

23-8  intent and the provisions of this chapter.

23-9      2.  The rule against perpetuities and NRS 111.103 to 111.1039,

23-10  inclusive, do not apply to defeat any provision of the declaration,

23-11  bylaws, rules or regulations adopted pursuant to NRS 116.3102.

23-12     3.  In the event of a conflict between the provisions of the

23-13  declaration and the bylaws, the declaration prevails except to the

23-14  extent the declaration is inconsistent with this chapter.

23-15     4.  Title to a unit and common elements is not rendered

23-16  unmarketable or otherwise affected by reason of an insubstantial

23-17  failure of the declaration to comply with this chapter. Whether a

23-18  substantial failure impairs marketability is not affected by this

23-19  chapter.

23-20     Sec. 58.  NRS 116.2111 is hereby amended to read as follows:

23-21     116.2111  [Subject]

23-22     1.  Except as otherwise provided in this section and subject to

23-23  the provisions of the declaration and other provisions of law, a

23-24  unit’s owner:

23-25     [1.] (a) May make any improvements or alterations to his unit

23-26  that do not impair the structural integrity or mechanical systems or

23-27  lessen the support of any portion of the common-interest

23-28  community;

23-29     [2.] (b) May not change the appearance of the common

23-30  elements, or the exterior appearance of a unit or any other portion of

23-31  the common-interest community, without permission of the

23-32  association; and

23-33     [3.] (c) After acquiring an adjoining unit or an adjoining part of

23-34  an adjoining unit, may remove or alter any intervening partition or

23-35  create apertures therein, even if the partition in whole or in part is a

23-36  common element, if those acts do not impair the structural integrity

23-37  or mechanical systems or lessen the support of any portion of the

23-38  common-interest community. Removal of partitions or creation of

23-39  apertures under this [subsection] paragraph is not an alteration of

23-40  boundaries.

23-41     2.  An association may not:

23-42     (a) Unreasonably restrict, prohibit or otherwise impede the

23-43  lawful rights of a unit’s owner to have reasonable access to his

23-44  unit.

24-1      (b) Unreasonably restrict, prohibit or withhold approval for a

24-2  unit’s owner to add to a unit:

24-3          (1) Improvements such as ramps, railings or elevators that

24-4  are necessary to improve access to the unit for any occupant of the

24-5  unit who has a disability;

24-6          (2) Additional locks to improve the security of the unit; or

24-7          (3) Shutters to improve the security of the unit or to aid in

24-8  reducing the costs of energy for the unit.

24-9      (c) With regard to approving or disapproving any improvement

24-10  or alteration made to a unit, act in violation of any state or federal

24-11  law.

24-12     3.  Any improvement or alteration made pursuant to

24-13  subsection 2 that is visible from any other portion of the common-

24-14  interest community must be installed, constructed or added in

24-15  accordance with the procedures set forth in the governing

24-16  documents of the association and must be selected or designed to

24-17  the maximum extent practicable to be compatible with the style of

24-18  the common-interest community.

24-19     Sec. 59.  NRS 116.212 is hereby amended to read as follows:

24-20     116.212  1.  If the declaration provides that any of the powers

24-21  described in NRS 116.3102 are to be exercised by or may be

24-22  delegated to a profit or nonprofit corporation that exercises those or

24-23  other powers on behalf of one or more common-interest

24-24  communities or for the benefit of the units’ owners of one or more

24-25  common-interest communities, or on behalf of a common-interest

24-26  community and a time-share plan created pursuant to chapter 119A

24-27  of NRS, all provisions of this chapter applicable to unit-owners’

24-28  associations apply to any such corporation, except as modified by

24-29  this section.

24-30     2.  Unless it is acting in the capacity of an association described

24-31  in NRS 116.3101, a master association may exercise the powers set

24-32  forth in paragraph (b) of subsection 1 of NRS 116.3102 only to the

24-33  extent expressly permitted in:

24-34     (a) The declarations of common-interest communities which are

24-35  part of the master association or expressly described in the

24-36  delegations of power from those common-interest communities to

24-37  the master association; or

24-38     (b) The declaration of the common-interest community which is

24-39  a part of the master association and the time-share instrument

24-40  creating the time-share plan governed by the master association.

24-41     3.  If the declaration of any common-interest community

24-42  provides that the executive board may delegate certain powers to a

24-43  master association, the members of the executive board have no

24-44  liability for the acts or omissions of the master association with

24-45  respect to those powers following delegation.

25-1      4.  The rights and responsibilities of units’ owners with respect

25-2  to the unit-owners’ association set forth in NRS 116.3103 [to

25-3  116.31038, inclusive,] , 116.31032, 116.31034, 116.31036,

25-4  116.3108, 116.31085, 116.3109, 116.311 and 116.3112 and section

25-5  46 of this act apply in the conduct of the affairs of a master

25-6  association only to persons who elect the board of a master

25-7  association, whether or not those persons are otherwise units’

25-8  owners within the meaning of this chapter.

25-9      5.  Even if a master association is also an association described

25-10  in NRS 116.3101, the certificate of incorporation or other

25-11  instrument creating the master association and the declaration of

25-12  each common-interest community, the powers of which are assigned

25-13  by the declaration or delegated to the master association, may

25-14  provide that the executive board of the master association must be

25-15  elected after the period of the declarant’s control in any of the

25-16  following ways:

25-17     (a) All units’ owners of all common-interest communities

25-18  subject to the master association may elect all members of the

25-19  master association’s executive board.

25-20     (b) All members of the executive boards of all common-interest

25-21  communities subject to the master association may elect all

25-22  members of the master association’s executive board.

25-23     (c) All units’ owners of each common-interest community

25-24  subject to the master association may elect specified members of the

25-25  master association’s executive board.

25-26     (d) All members of the executive board of each common-interest

25-27  community subject to the master association may elect specified

25-28  members of the master association’s executive board.

25-29     Sec. 60.  NRS 116.3102 is hereby amended to read as follows:

25-30     116.3102  1.  Except as otherwise provided in subsection 2,

25-31  and subject to the provisions of the declaration, the association may:

25-32     (a) Adopt and amend bylaws, rules and regulations;

25-33     (b) Adopt and amend budgets for revenues, expenditures and

25-34  reserves and collect assessments for common expenses from units’

25-35  owners;

25-36     (c) Hire and discharge managing agents and other employees,

25-37  agents and independent contractors;

25-38     (d) Institute, defend or intervene in litigation or administrative

25-39  proceedings in its own name on behalf of itself or two or more units’

25-40  owners on matters affecting the common-interest community;

25-41     (e) Make contracts and incur liabilities;

25-42     (f) Regulate the use, maintenance, repair, replacement and

25-43  modification of common elements;

25-44     (g) Cause additional improvements to be made as a part of the

25-45  common elements;

26-1      (h) Acquire, hold, encumber and convey in its own name any

26-2  right, title or interest to real estate or personal property, but:

26-3          (1) Common elements in a condominium or planned

26-4  community may be conveyed or subjected to a security interest only

26-5  pursuant to NRS 116.3112; and

26-6          (2) Part of a cooperative may be conveyed, or all or part of a

26-7  cooperative may be subjected to a security interest, only pursuant to

26-8  NRS 116.3112;

26-9      (i) Grant easements, leases, licenses and concessions through or

26-10  over the common elements;

26-11     (j) Impose and receive any payments, fees or charges for the use,

26-12  rental or operation of the common elements, other than limited

26-13  common elements described in subsections 2 and 4 of NRS

26-14  116.2102, and for services provided to units’ owners;

26-15     (k) Impose charges for late payment of assessments , impose

26-16  construction penalties when authorized pursuant to section 47 of

26-17  this act and, except as otherwise provided in NRS 116.31031, after

26-18  notice and an opportunity to be heard, levy reasonable fines for

26-19  violations of the [declaration, bylaws, rules and regulations]

26-20  governing documents of the association;

26-21     (l) Impose reasonable charges for the preparation and

26-22  recordation of amendments to the declaration, the information

26-23  required by NRS 116.4109 or statements of unpaid assessments;

26-24     (m) Provide for the indemnification of its officers and executive

26-25  board and maintain directors’ and officers’ liability insurance;

26-26     (n) Assign its right to future income, including the right to

26-27  receive assessments for common expenses, but only to the extent the

26-28  declaration expressly so provides;

26-29     (o) Exercise any other powers conferred by the declaration or

26-30  bylaws;

26-31     (p) Exercise all other powers that may be exercised in this state

26-32  by legal entities of the same type as the association;

26-33     (q) Direct the removal of vehicles improperly parked on

26-34  property owned or leased by the association, pursuant to NRS

26-35  487.038; and

26-36     (r) Exercise any other powers necessary and proper for the

26-37  governance and operation of the association.

26-38     2.  The declaration may not impose limitations on the power of

26-39  the association to deal with the declarant which are more restrictive

26-40  than the limitations imposed on the power of the association to deal

26-41  with other persons.

26-42     Sec. 61.  NRS 116.31031 is hereby amended to read as

26-43  follows:

26-44     116.31031  1.  If a unit’s owner [,] or a tenant or guest of a

26-45  unit’s owner [, does not comply with a] violates any provision of the

27-1  governing documents of an association, the executive board of the

27-2  association may, if the governing documents so provide:

27-3      (a) Prohibit, for a reasonable time, the unit’s owner [,] or the

27-4  tenant or guest of the unit’s owner [,] from:

27-5          (1) Voting on matters related to the common-interest

27-6  community.

27-7          (2) Using the common elements. The provisions of this

27-8  subparagraph do not prohibit the unit’s owner [,] or the tenant or

27-9  guest of the unit’s owner [,] from using any vehicular or pedestrian

27-10  ingress or egress to go to or from the unit, including any area used

27-11  for parking.

27-12     (b) [Require] Impose a fine against the unit’s owner [,] or the

27-13  tenant or guest of the unit’s owner [, to pay a fine] for each [failure

27-14  to comply that does not threaten the health and welfare of the

27-15  common-interest community.] violation, except that a fine may not

27-16  be imposed for a violation that is the subject of a construction

27-17  penalty pursuant to section 47 of this act. The fine must be

27-18  commensurate with the severity of the violation, but must not

27-19  exceed $100 for each violation or a total amount of $500, whichever

27-20  is less. The limitations on the amount of the fine do not apply to

27-21  any interest, charges or costs that may be collected by the

27-22  association pursuant to this section if the fine becomes past due.

27-23     2.  If a fine is imposed pursuant to subsection 1 and the

27-24  violation is not cured within 14 days , or [a] within any longer

27-25  period [as] that may be established by the executive board, the

27-26  violation shall be deemed a continuing violation. Thereafter, the

27-27  executive board may impose an additional fine for the violation for

27-28  each 7‑day period or portion thereof that the violation is not cured.

27-29  Any additional fine may be imposed without notice and an

27-30  opportunity to be heard.

27-31     3.  Except as otherwise provided in subsection 2, the imposition

27-32  of a fine pursuant to this section must comply with the requirements

27-33  of subsection 6 of NRS 116.31065.

27-34     4.  Any past due fine:

27-35     (a) Bears interest at the rate established by the association, not

27-36  to exceed the legal rate per annum.

27-37     (b) May include any costs of collecting the past due fine at a

27-38  rate established by the association. If the past due fine is for a

27-39  violation that does not threaten the health, safety or welfare of the

27-40  residents of the common-interest community, the rate established

27-41  by the association for the costs of collecting the past due fine:

27-42         (1) May not exceed $20, if the outstanding balance is less

27-43  than $200.

27-44         (2) May not exceed $50, if the outstanding balance is $200

27-45  or more, but is less than $500.

28-1          (3) May not exceed $100, if the outstanding balance is $500

28-2  or more, but is less than $1,000.

28-3          (4) May not exceed $250, if the outstanding balance is

28-4  $1,000 or more, but is less than $5,000.

28-5          (5) May not exceed $500, if the outstanding balance is

28-6  $5,000 or more.

28-7      (c) May include any costs incurred by the association during a

28-8  civil action to enforce the payment of the past due fine.

28-9      5.  As used in this section:

28-10     (a) “Costs of collecting” includes, without limitation, any

28-11  collection fee, filing fee, recording fee, referral fee, fee for postage

28-12  or delivery, and any other fee or cost that an association may

28-13  reasonably charge to the unit’s owner for the collection of a past

28-14  due fine. The term does not include any costs incurred by an

28-15  association during a civil action to enforce the payment of a past

28-16  due fine.

28-17     (b) “Outstanding balance” means the amount of a past due

28-18  fine that remains unpaid before any interest, charges for late

28-19  payment or costs of collecting the past due fine are added.

28-20     Sec. 62.  NRS 116.31034 is hereby amended to read as

28-21  follows:

28-22     116.31034  1.  Except as otherwise provided in subsection 5 of

28-23  NRS 116.212, not later than the termination of any period of

28-24  declarant’s control, the units’ owners shall elect an executive board

28-25  of at least three members, at least a majority of whom must be units’

28-26  owners. The executive board shall elect the officers [.] of the

28-27  association. The members [and officers] of the executive board and

28-28  the officers of the association shall take office upon election.

28-29     2.  The term of office of a member of the executive board may

28-30  not exceed 2 years [. A] , except for members who are appointed by

28-31  the declarant. Unless the governing documents provide otherwise,

28-32  there is no limitation on the number of terms that a person may

28-33  serve as a member of the executive board . [may be elected to

28-34  succeed himself.]

28-35     3.  The governing documents of the association must [set forth

28-36  the month during which elections for the members of the executive

28-37  board must be held after the termination of any period of the

28-38  declarant’s control.

28-39     3.] provide for terms of office that are staggered in such a

28-40  manner that, to the extent possible, an equal number of members

28-41  of the executive board are elected at each election. The provisions

28-42  of this subsection do not apply to:

28-43     (a) Members of the executive board who are appointed by the

28-44  declarant; and

29-1      (b) Members of the executive board who serve a term of 1 year

29-2  or less.

29-3      4.  Not less than 30 days before the preparation of a ballot for

29-4  the election of members of the executive board, the secretary or

29-5  other officer specified in the bylaws of the association shall cause

29-6  notice to be given to each unit’s owner of his eligibility to serve as a

29-7  member of the executive board. Each unit’s owner who is qualified

29-8  to serve as a member of the executive board may have his name

29-9  placed on the ballot along with the names of the nominees selected

29-10  by the members of the executive board or a nominating committee

29-11  established by the association.

29-12     [4.] 5.  Each person whose name is placed on the ballot as a

29-13  candidate for a member of the executive board must make a good

29-14  faith effort to disclose any financial, business, professional or

29-15  personal relationship or interest that would result or would appear

29-16  to a reasonable person to result in a potential conflict of interest

29-17  for the candidate if the candidate were to be elected to serve as a

29-18  member of the executive board. The candidate must make the

29-19  disclosure, in writing, to each member of the association in the

29-20  manner established in the bylaws of the association.

29-21     6.  Unless a person is appointed by the declarant:

29-22     (a) A person may not be a member of the executive board of an

29-23  association or an officer of that association if the person, his

29-24  spouse or his parent or child, by blood, marriage or adoption,

29-25  performs the duties of a community manager for that association.

29-26     (b) A person may not be a member of the executive board of a

29-27  master association or an officer of that master association if the

29-28  person, his spouse or his parent or child, by blood, marriage or

29-29  adoption, performs the duties of a community manager for:

29-30         (1) That master association; or

29-31         (2) Any association that is subject to the governing

29-32  documents of that master association.

29-33     7.  An officer, employee, agent or director of a corporate owner

29-34  of a unit, a trustee or designated beneficiary of a trust that owns a

29-35  unit, a partner of a partnership that owns a unit, a member or

29-36  manager of a limited-liability company that owns a unit, and a

29-37  fiduciary of an estate that owns a unit may be an officer of the

29-38  association or a member of the executive board. In all events where

29-39  the person serving or offering to serve as an officer of the

29-40  association or a member of the executive board is not the record

29-41  owner, he shall file proof in the records of the association that:

29-42     (a) He is associated with the corporate owner, trust, partnership ,

29-43  limited-liability company or estate as required by this subsection;

29-44  and

30-1      (b) Identifies the unit or units owned by the corporate owner,

30-2  trust, partnership , limited-liability company or estate.

30-3      [5.] 8. The election of any member of the executive board must

30-4  be conducted by secret written ballot [. The] unless the declaration

30-5  of the association provides that voting rights may be exercised by

30-6  delegates or representatives as set forth in section 46 of this act. If

30-7  the election of any member of the executive board is conducted by

30-8  secret written ballot:

30-9      (a) The secretary or other officer specified in the bylaws of the

30-10  association shall cause a secret ballot and a return envelope to be

30-11  sent , prepaid by United States mail , to the mailing address of each

30-12  unit within the common-interest community or to any other mailing

30-13  address designated in writing by the unit’s owner . [, a secret ballot

30-14  and a return envelope.

30-15     6.] (b) Each unit’s owner must be provided with at least 15

30-16  days after the date the secret written ballot is mailed to the unit’s

30-17  owner to return the secret written ballot to the association.

30-18     (c) A quorum is not required for the election of any member of

30-19  the executive board.

30-20     (d) Only the secret written ballots that are returned to the

30-21  association may be counted to determine the outcome of the

30-22  election.

30-23     (e) The secret written ballots must be opened and counted at a

30-24  meeting of the association. A quorum is not required to be present

30-25  when the secret written ballots are opened and counted at the

30-26  meeting.

30-27     (f) The incumbent members of the executive board and each

30-28  person whose name is placed on the ballot as a candidate for a

30-29  member of the executive board may not possess, be given access to

30-30  or participate in the opening or counting of the secret written

30-31  ballots that are returned to the association before those secret

30-32  written ballots have been opened and counted at a meeting of the

30-33  association.

30-34     10. Each member of the executive board shall, within [30] 90

30-35  days after his appointment or election, certify in writing to the

30-36  association, on a form prescribed by the Administrator, that he has

30-37  read and understands the governing documents of the association

30-38  and the provisions of this chapter to the best of his ability. The

30-39  Administrator may require the association to submit a copy of the

30-40  certification of each member of the executive board of that

30-41  association at the time the association registers with the

30-42  Ombudsman pursuant to NRS 116.31158.

 

 

31-1      Sec. 63.  NRS 116.31036 is hereby amended to read as

31-2  follows:

31-3      116.31036  1.  Notwithstanding any provision of the

31-4  declaration or bylaws to the contrary, the units’ owners, by a two-

31-5  thirds vote of all persons [present and] entitled to vote at any

31-6  meeting of the units’ owners at which a quorum is present, may

31-7  remove any member of the executive board with or without cause,

31-8  other than a member appointed by the declarant.

31-9      2.  The removal of any member of the executive board must be

31-10  conducted by secret written ballot unless the declaration of the

31-11  association provides that voting rights may be exercised by

31-12  delegates or representatives as set forth in section 46 of this act. If

31-13  the removal of a member of the executive board is conducted by

31-14  secret written ballot:

31-15     (a) The secretary or other officer specified in the bylaws of the

31-16  association shall cause a secret ballot and a return envelope to be

31-17  sent, prepaid by United States mail, to the mailing address of each

31-18  unit within the common-interest community or to any other

31-19  mailing address designated in writing by the unit’s owner.

31-20     (b) Each unit’s owner must be provided with at least 15 days

31-21  after the date the secret written ballot is mailed to the unit’s owner

31-22  to return the secret written ballot to the association.

31-23     (c) Only the secret written ballots that are returned to the

31-24  association may be counted to determine the outcome.

31-25     (d) The secret written ballots must be opened and counted at a

31-26  meeting of the association. A quorum is not required to be present

31-27  when the secret written ballots are opened and counted at the

31-28  meeting.

31-29     (e) The incumbent members of the executive board, including,

31-30  without limitation, the member who is subject to the removal, may

31-31  not possess, be given access to or participate in the opening or

31-32  counting of the secret written ballots that are returned to the

31-33  association before those secret written ballots have been opened

31-34  and counted at a meeting of the association.

31-35     3.  If a member of an executive board is named as a respondent

31-36  or sued for liability for actions undertaken in his role as a member

31-37  of the board, the association shall indemnify him for his losses or

31-38  claims, and undertake all costs of defense, unless it is proven that he

31-39  acted with willful or wanton misfeasance or with gross negligence.

31-40  After such proof , the association is no longer liable for the cost of

31-41  defense, and may recover costs already expended from the member

31-42  of the executive board who so acted. Members of the executive

31-43  board are not personally liable to the victims of crimes occurring on

31-44  the property. Punitive damages may not be recovered against the

32-1  association, but may be recovered from persons whose activity gave

32-2  rise to the damages.

32-3      4.  The provisions of this section do not prohibit the

32-4  Commission from taking any disciplinary action against a member

32-5  of an executive board pursuant to sections 27 to 37, inclusive, of

32-6  this act.

32-7      Sec. 64.  NRS 116.3106 is hereby amended to read as follows:

32-8      116.3106  1.  The bylaws of the association must provide:

32-9      (a) The number of members of the executive board and the titles

32-10  of the officers of the association;

32-11     (b) For election by the executive board of a president, treasurer,

32-12  secretary and any other officers of the association the bylaws

32-13  specify;

32-14     (c) The qualifications, powers and duties, terms of office and

32-15  manner of electing and removing officers of the association and

32-16  members of the executive board and filling vacancies;

32-17     (d) Which [,] powers, if any, [of its powers] that the executive

32-18  board or the officers of the association may delegate to other

32-19  persons or to a [managing agent;] community manager;

32-20     (e) Which of its officers may prepare, execute, certify and

32-21  record amendments to the declaration on behalf of the association;

32-22     (f) Procedural rules for conducting meetings of the association;

32-23  [and]

32-24     (g) A method for amending the bylaws[.] ; and

32-25     (h) Procedural rules for conducting elections.

32-26     2.  Except as otherwise provided in the declaration, the bylaws

32-27  may provide for any other matters the association deems necessary

32-28  and appropriate.

32-29     3.  The bylaws must be written in plain English.

32-30     Sec. 65.  NRS 116.3108 is hereby amended to read as follows:

32-31     116.3108  1.  A meeting of the units’ owners of an association

32-32  must be held at least once each year. If the governing documents of

32-33  a common‑interest community do not designate an annual meeting

32-34  date of the units’ owners, a meeting of the units’ owners must be

32-35  held 1 year after the date of the last meeting of the units’ owners. If

32-36  the units’ owners have not held a meeting for 1 year, a meeting of

32-37  the units’ owners must be held on the following March 1. Special

32-38  meetings of the units’ owners of an association may be called by the

32-39  president, a majority of the executive board or by units’ owners

32-40  having 10 percent, or any lower percentage specified in the bylaws,

32-41  of the votes in the association.

32-42     2.  Not less than 10 nor more than 60 days in advance of any

32-43  meeting of the units’ owners of an association, the secretary or other

32-44  officer specified in the bylaws shall cause notice of the meeting to

32-45  be hand‑delivered, sent prepaid by United States mail to the mailing

33-1  address of each unit or to any other mailing address designated in

33-2  writing by the unit’s owner or, if the association offers to send

33-3  notice by electronic mail, sent by electronic mail at the request of

33-4  the unit’s owner to an electronic mail address designated in writing

33-5  by the unit’s owner. The notice of the meeting must state the time

33-6  and place of the meeting and include a copy of the agenda for the

33-7  meeting. The notice must include notification of the right of a unit’s

33-8  owner to:

33-9      (a) Have a copy of the minutes or a summary of the minutes of

33-10  the meeting [distributed to him] provided to the unit’s owner upon

33-11  request and, if required by the executive board, upon payment to the

33-12  association of the cost of [making the distribution.] providing the

33-13  copy to the unit’s owner.

33-14     (b) Speak to the association or executive board, unless the

33-15  executive board is meeting in executive session.

33-16     3.  The agenda for a meeting of the units’ owners must consist

33-17  of:

33-18     (a) A clear and complete statement of the topics scheduled to be

33-19  considered during the meeting, including, without limitation, any

33-20  proposed amendment to the declaration or bylaws, any fees or

33-21  assessments to be imposed or increased by the association, any

33-22  budgetary changes and any proposal to remove an officer of the

33-23  association or member of the executive board.

33-24     (b) A list describing the items on which action may be taken and

33-25  clearly denoting that action may be taken on those items. In an

33-26  emergency, the units’ owners may take action on an item which is

33-27  not listed on the agenda as an item on which action may be taken.

33-28     (c) A period devoted to comments by units’ owners and

33-29  discussion of those comments. Except in emergencies, no action

33-30  may be taken upon a matter raised under this item of the agenda

33-31  until the matter itself has been specifically included on an agenda as

33-32  an item upon which action may be taken pursuant to paragraph (b).

33-33     4.  If the association adopts a policy imposing [a fine on a unit’s

33-34  owner for the violation of the declaration, bylaws or other rules

33-35  established by] fines for any violations of the governing documents

33-36  of the association, the secretary or other officer specified in the

33-37  bylaws shall prepare and cause to be hand‑delivered or sent prepaid

33-38  by United States mail to the mailing address of each unit or to any

33-39  other mailing address designated in writing by the unit’s owner, a

33-40  schedule of the fines that may be imposed for those violations.

33-41     5.  The secretary or other officer specified in the bylaws shall

33-42  cause minutes to be recorded or otherwise taken at each meeting

33-43  of the units’ owners. Not more than 30 days after [any meeting of

33-44  the units’ owners,] each such meeting, the secretary or other officer

33-45  specified in the bylaws shall cause the minutes or a summary of the

34-1  minutes of the meeting to be made available to the units’ owners. A

34-2  copy of the minutes or a summary of the minutes must be provided

34-3  to any unit’s owner [who pays] upon request and, if required by the

34-4  executive board, upon payment to the association of the cost of

34-5  providing the copy to [him.] the unit’s owner.

34-6      6.  Except as otherwise provided in subsection 7, the minutes

34-7  of each meeting of the units’ owners must include:

34-8      (a) The date, time and place of the meeting;

34-9      (b) The substance of all matters proposed, discussed or decided

34-10  at the meeting; and

34-11     (c) The substance of remarks made by any unit’s owner at the

34-12  meeting if he requests that the minutes reflect his remarks or, if he

34-13  has prepared written remarks, a copy of his prepared remarks if he

34-14  submits a copy for inclusion.

34-15     7.  The executive board may establish reasonable limitations

34-16  on materials, remarks or other information to be included in the

34-17  minutes of a meeting of the units’ owners.

34-18     8.  The association shall maintain the minutes of each

34-19  meeting of the units’ owners until the common-interest community

34-20  is terminated.

34-21     9.  A unit’s owner may record on audiotape or any other

34-22  means of sound reproduction a meeting of the units’ owners if the

34-23  unit’s owner, before recording the meeting, provides notice of his

34-24  intent to record the meeting to the other units’ owners who are in

34-25  attendance at the meeting.

34-26     10.  As used in this section, “emergency” means any occurrence

34-27  or combination of occurrences that:

34-28     (a) Could not have been reasonably foreseen;

34-29     (b) Affects the health, welfare and safety of the units’ owners of

34-30  the association;

34-31     (c) Requires the immediate attention of, and possible action by,

34-32  the executive board; and

34-33     (d) Makes it impracticable to comply with the provisions of

34-34  subsection 2 or 3.

34-35     Sec. 66.  NRS 116.31083 is hereby amended to read as

34-36  follows:

34-37     116.31083  1.  A meeting of the executive board of an

34-38  association must be held at least once every 90 days.

34-39     2.  Except in an emergency or unless the bylaws of an

34-40  association require a longer period of notice, the secretary or other

34-41  officer specified in the bylaws of the association shall, not less than

34-42  10 days before the date of a meeting of the executive board, cause

34-43  notice of the meeting to be given to the units’ owners. Such notice

34-44  must be:

35-1      (a) Sent prepaid by United States mail to the mailing address of

35-2  each unit within the common-interest community or to any other

35-3  mailing address designated in writing by the unit’s owner;

35-4      (b) If the association offers to send notice by electronic mail,

35-5  sent by electronic mail at the request of the unit’s owner to an

35-6  electronic mail address designated in writing by the unit’s owner; or

35-7      (c) Published in a newsletter or other similar publication that is

35-8  circulated to each unit’s owner.

35-9      3.  In an emergency, the secretary or other officer specified in

35-10  the bylaws of the association shall, if practicable, cause notice of the

35-11  meeting to be sent prepaid by United States mail to the mailing

35-12  address of each unit within the common-interest community. If

35-13  delivery of the notice in this manner is impracticable, the notice

35-14  must be hand-delivered to each unit within the common-interest

35-15  community or posted in a prominent place or places within the

35-16  common elements of the association.

35-17     4.  The notice of a meeting of the executive board of an

35-18  association must state the time and place of the meeting and include

35-19  a copy of the agenda for the meeting or the date on which and the

35-20  locations where copies of the agenda may be conveniently obtained

35-21  by the units’ owners of the association. The notice must include

35-22  notification of the right of a unit’s owner to:

35-23     (a) Have a copy of the minutes or a summary of the minutes of

35-24  the meeting [distributed to him] provided to the unit’s owner upon

35-25  request and, if required by the executive board, upon payment to the

35-26  association of the cost of [making the distribution.] providing the

35-27  copy to the unit’s owner.

35-28     (b) Speak to the association or executive board, unless the

35-29  executive board is meeting in executive session.

35-30     5.  The agenda of the meeting of the executive board of an

35-31  association must comply with the provisions of subsection 3 of NRS

35-32  116.3108. The period required to be devoted to comments by units’

35-33  owners and discussion of those comments must be scheduled for the

35-34  beginning of each meeting. In an emergency, the executive board

35-35  may take action on an item which is not listed on the agenda as an

35-36  item on which action may be taken.

35-37     6.  At least once every 90 days, unless the declaration or bylaws

35-38  of the association impose more stringent standards, the executive

35-39  board shall review at one of its meetings:

35-40     (a) A current reconciliation of the operating account of the

35-41  association;

35-42     (b) A current reconciliation of the reserve account of the

35-43  association;

35-44     (c) The actual revenues and expenses for the reserve account,

35-45  compared to the budget for that account for the current year;

36-1      (d) The latest account statements prepared by the financial

36-2  institutions in which the accounts of the association are maintained;

36-3      (e) An income and expense statement, prepared on at least a

36-4  quarterly basis, for the operating and reserve accounts of the

36-5  association; and

36-6      (f) The current status of any civil action or claim submitted to

36-7  arbitration or mediation in which the association is a party.

36-8      7.  The secretary or other officer specified in the bylaws shall

36-9  cause minutes [of a] to be recorded or otherwise taken at each

36-10  meeting of the executive board . [of an association must be] Not

36-11  more than 30 days after each such meeting, the secretary or other

36-12  officer specified in the bylaws shall cause the minutes or a

36-13  summary of the minutes of the meeting to be made available to the

36-14  units’ owners . [in accordance with the provisions of subsection 5 of

36-15  NRS 116.3108.] A copy of the minutes or a summary of the

36-16  minutes must be provided to any unit’s owner upon request and, if

36-17  required by the executive board, upon payment to the association

36-18  of the cost of providing the copy to the unit’s owner.

36-19     8.  Except as otherwise provided in subsection 9 and NRS

36-20  116.31085, the minutes of each meeting of the executive board

36-21  must include:

36-22     (a) The date, time and place of the meeting;

36-23     (b) Those members of the executive board who were present

36-24  and those members who were absent at the meeting;

36-25     (c) The substance of all matters proposed, discussed or decided

36-26  at the meeting;

36-27     (d) A record of each member’s vote on any matter decided by

36-28  vote at the meeting; and

36-29     (e) The substance of remarks made by any unit’s owner who

36-30  addresses the executive board at the meeting if he requests that the

36-31  minutes reflect his remarks or, if he has prepared written remarks,

36-32  a copy of his prepared remarks if he submits a copy for inclusion.

36-33     9.  The executive board may establish reasonable limitations

36-34  on materials, remarks or other information to be included in the

36-35  minutes of its meetings.

36-36     10.  The association shall maintain the minutes of each

36-37  meeting of the executive board until the common-interest

36-38  community is terminated.

36-39     11.  A unit’s owner may record on audiotape or any other

36-40  means of sound reproduction a meeting of the executive board,

36-41  unless the executive board is meeting in executive session, if the

36-42  unit’s owner, before recording the meeting, provides notice of his

36-43  intent to record the meeting to the members of the executive board

36-44  and the other units’ owners who are in attendance at the meeting.

37-1      12.  As used in this section, “emergency” means any occurrence

37-2  or combination of occurrences that:

37-3      (a) Could not have been reasonably foreseen;

37-4      (b) Affects the health, welfare and safety of the units’ owners of

37-5  the association;

37-6      (c) Requires the immediate attention of, and possible action by,

37-7  the executive board; and

37-8      (d) Makes it impracticable to comply with the provisions of

37-9  subsection 2 or 5.

37-10     Sec. 67.  NRS 116.31085 is hereby amended to read as

37-11  follows:

37-12     116.31085  1.  Except as otherwise provided in this section, a

37-13  unit’s owner may attend any meeting of the units’ owners of the

37-14  association or of the executive board and speak at any such meeting.

37-15  The executive board may establish reasonable limitations on the

37-16  time a unit’s owner may speak at such a meeting.

37-17     2.  An executive board may not meet in executive session to

37-18  enter into, renew, modify, terminate or take any other action

37-19  regarding a contract, unless it is a contract between the

37-20  association and an attorney.

37-21     3.  An executive board may meet in executive session only to:

37-22     (a) Consult with the attorney for the association on matters

37-23  relating to proposed or pending litigation if the contents of the

37-24  discussion would otherwise be governed by the privilege set forth in

37-25  NRS 49.035 to 49.115, inclusive [;] , or to enter into, renew,

37-26  modify, terminate or take any other action regarding a contract

37-27  between the association and the attorney.

37-28     (b) Discuss [matters relating to personnel; or

37-29     (c) Discuss] the character, alleged misconduct, professional

37-30  competence, or physical or mental health of a community

37-31  manager or an employee of the association.

37-32     (c) Except as otherwise provided in subsection 4, discuss a

37-33  violation of the governing documents , [alleged to have been

37-34  committed by a unit’s owner,] including, without limitation, the

37-35  failure to pay an assessment . [, except as otherwise provided in

37-36  subsection 3.

37-37     3.] (d) Discuss the alleged failure of a unit’s owner to adhere

37-38  to a schedule required pursuant to section 47 of this act if the

37-39  alleged failure may subject the unit’s owner to a construction

37-40  penalty.

37-41     4.  An executive board shall meet in executive session to hold a

37-42  hearing on an alleged violation of the governing documents unless

37-43  the [unit’s owner who allegedly committed] person who may be

37-44  sanctioned for the alleged violation requests in writing that the

37-45  hearing be conducted by the executive board at an open meeting.

38-1  The [unit’s owner who is alleged to have committed] person who

38-2  may be sanctioned for the alleged violation [may] is entitled to

38-3  attend the hearing and testify concerning the alleged violation, but

38-4  the person may be excluded by the executive board from any other

38-5  portion of the hearing, including, without limitation, the

38-6  deliberations of the executive board.

38-7      [4.] 5. Except as otherwise provided in this subsection, any

38-8  matter discussed by the executive board when it meets in executive

38-9  session must be generally noted in the minutes of the meeting of the

38-10  executive board. The executive board shall maintain minutes of any

38-11  decision made pursuant to subsection [3] 4 concerning an alleged

38-12  violation and, upon request, provide a copy of the decision to the

38-13  [unit’s owner who was the subject of the hearing] person who was

38-14  subject to being sanctioned at the hearing or to his designated

38-15  representative.

38-16     [5.] 6. Except as otherwise provided in subsection [3,] 4, a

38-17  unit’s owner is not entitled to attend or speak at a meeting of the

38-18  executive board held in executive session.

38-19     Sec. 68.  NRS 116.3109 is hereby amended to read as follows:

38-20     116.3109  1.  Except as otherwise provided in this section and

38-21  [unless the bylaws] NRS 116.31034, and except when the

38-22  governing documents provide otherwise, a quorum is present

38-23  throughout any meeting of the association if [persons entitled to cast

38-24  20 percent of the votes that may be cast for election of the executive

38-25  board] the number of members of the association who are present

38-26  in person or by proxy at the beginning of the meeting [.] equals or

38-27  exceeds 20 percent of the total number of voting members of the

38-28  association.

38-29     2.  If the governing documents of an association contain a

38-30  quorum requirement for a meeting of the association that is

38-31  greater than the 20 percent required by subsection 1 and, after

38-32  proper notice has been given for a meeting, the members of the

38-33  association who are present in person or by proxy at the meeting

38-34  are unable to hold the meeting because a quorum is not present at

38-35  the beginning of the meeting, the members who are present in

38-36  person at the meeting may adjourn the meeting to a time that is

38-37  not less than 48 hours or more than 30 days from the date of the

38-38  meeting. At the subsequent meeting:

38-39     (a) A quorum shall be deemed to be present if the number of

38-40  members of the association who are present in person or by proxy

38-41  at the beginning of the subsequent meeting equals or exceeds 20

38-42  percent of the total number of voting members of the association;

38-43  and

38-44     (b) If such a quorum is deemed to be present but the actual

38-45  number of members who are present in person or by proxy at the

39-1  beginning of the subsequent meeting is less than the number of

39-2  members who are required for a quorum under the governing

39-3  documents, the members who are present in person or by proxy at

39-4  the subsequent meeting may take action only on those matters that

39-5  were included as items on the agenda of the original

39-6  meeting.

39-7  The provisions of this subsection do not change the actual number

39-8  of votes that are required under the governing documents for

39-9  taking action on any particular matter.

39-10     3.  Unless the [bylaws] governing documents specify a larger

39-11  percentage, a quorum is deemed present throughout any meeting of

39-12  the executive board if persons entitled to cast 50 percent of the votes

39-13  on that board are present at the beginning of the meeting.

39-14     [3.  For the purposes of determining whether a quorum is

39-15  present for the election of any member of the executive board, only

39-16  the secret written ballots that are returned to the association may be

39-17  counted.]

39-18     Sec. 69.  NRS 116.311 is hereby amended to read as follows:

39-19     116.311  1.  If only one of several owners of a unit is present

39-20  at a meeting of the association, that owner is entitled to cast all the

39-21  votes allocated to that unit. If more than one of the owners are

39-22  present, the votes allocated to that unit may be cast only in

39-23  accordance with the agreement of a majority in interest of the

39-24  owners, unless the declaration expressly provides otherwise. There

39-25  is majority agreement if any one of the owners cast the votes

39-26  allocated to that unit without protest made promptly to the person

39-27  presiding over the meeting by any of the other owners of the unit.

39-28     2.  Except as otherwise provided in this section, votes allocated

39-29  to a unit may be cast pursuant to a proxy executed by a unit’s owner.

39-30  A unit’s owner may give a proxy only to a member of his immediate

39-31  family, a tenant of the unit’s owner who resides in the common-

39-32  interest community , [or] another unit’s owner who resides in the

39-33  common-interest community[.] , or to a delegate or representative

39-34  when authorized pursuant to section 46 of this act. If a unit is

39-35  owned by more than one person, each owner of the unit may vote or

39-36  register protest to the casting of votes by the other owners of the unit

39-37  through an executed proxy. A unit’s owner may revoke a proxy

39-38  given pursuant to this section only by actual notice of revocation to

39-39  the person presiding over a meeting of the association. [A proxy is

39-40  void if:

39-41     (a) It is not dated or purports]

39-42     3.  Before a vote may be cast pursuant to a proxy:

39-43     (a) The proxy must be dated.

39-44     (b) The proxy must not purport to be revocable without notice .

39-45  [;

40-1      (b) It does not]

40-2      (c) The proxy must designate the meeting for which it is

40-3  executed.

40-4      (d) The proxy must designate [the votes that must be cast on

40-5  behalf of] each specific item on the agenda of the meeting for

40-6  which the unit’s owner [who] has executed the proxy [; or

40-7      (c)] , except that the unit’s owner may execute the proxy

40-8  without designating any specific items on the agenda of the

40-9  meeting if the proxy is to be used solely for determining whether a

40-10  quorum is present for the meeting. If the proxy designates one or

40-11  more specific items on the agenda of the meeting for which the

40-12  unit’s owner has executed the proxy, the proxy must indicate, for

40-13  each specific item designated in the proxy, whether the holder of

40-14  the proxy must cast a vote in the affirmative or the negative on

40-15  behalf of the unit’s owner. If the proxy does not indicate whether

40-16  the holder of the proxy must cast a vote in the affirmative or the

40-17  negative for a particular item on the agenda of the meeting, the

40-18  proxy must be treated, with regard to that particular item, as if

40-19  the unit’s owner were present but not voting on that particular

40-20  item.

40-21     (e) The holder of the proxy [does not] must disclose at the

40-22  beginning of the meeting for which the proxy is executed the

40-23  number of proxies pursuant to which [he] the holder will be casting

40-24  votes . [and the voting instructions received for each proxy.]

40-25     4.  A proxy terminates immediately after the conclusion of the

40-26  meeting for which it [was] is executed.

40-27     5.  A vote may not be cast pursuant to a proxy for the election

40-28  or removal of a member of the executive board of an association[.

40-29     3.  Only a vote cast in person, by secret ballot or by proxy, may

40-30  be counted.

40-31     4.] unless the proxy is exercised through a delegate or

40-32  representative authorized pursuant to section 46 of this act.

40-33     6.  The holder of a proxy may not cast a vote on behalf of the

40-34  unit’s owner who executed the proxy in a manner that is contrary

40-35  to the proxy.

40-36     7.  A proxy is void if the proxy or the holder of the proxy

40-37  violates any provision of subsections 1 to 6, inclusive.

40-38     8. If the declaration requires that votes on specified matters

40-39  affecting the common-interest community must be cast by the

40-40  lessees of leased units rather than the units’ owners [of] who have

40-41  leased the units:

40-42     (a) The provisions of subsections 1 [and 2] to 7, inclusive, apply

40-43  to the lessees as if they were the units’ owners;

41-1      (b) [Units’] The units’ owners who have leased their units to

41-2  [other persons] the lessees may not cast votes on those specified

41-3  matters; [and]

41-4      (c) [Lessees] The lessees are entitled to notice of meetings,

41-5  access to records[,] and other rights respecting those matters as if

41-6  they were the units’ owners [.

41-7  Units’] ; and

41-8      (d) The units’ owners must [also] be given notice, in the manner

41-9  provided in NRS 116.3108, of all meetings at which the lessees are

41-10  entitled to vote.

41-11     [5.  No]

41-12     9.  If any votes are allocated to a unit that is owned by the

41-13  association , those votes may not be cast [.

41-14     6.  Votes cast for the election of a member of the executive

41-15  board of an association must be counted in public.] , by proxy or

41-16  otherwise, for any purpose.

41-17     Sec. 70.  NRS 116.31139 is hereby amended to read as

41-18  follows:

41-19     116.31139  1.  [An association may employ a person engaged

41-20  in property management for the common-interest community.

41-21     2.] Except as otherwise provided in this section, a person

41-22  [engaged in property management for a common-interest

41-23  community must:

41-24     (a) Hold] shall not act as a community manager unless the

41-25  person holds a permit [to engage in property management that is

41-26  issued pursuant to the provisions of chapter 645 of NRS; or

41-27     (b) Hold] or a certificate . [issued by the Real Estate

41-28  Commission pursuant to subsection 3.

41-29     3.  The Real Estate]

41-30     2.  The Commission shall [provide] by regulation provide for

41-31  the [issuance of certificates for the management of common-interest

41-32  communities to persons who are not otherwise authorized to engage

41-33  in property management pursuant to the provisions of chapter 645 of

41-34  NRS. The regulations:

41-35     (a) Must establish the qualifications for the issuance of such a

41-36  certificate, including the education and experience required to obtain

41-37  such a certificate;

41-38     (b) May require applicants to pass an examination in order to

41-39  obtain a certificate;

41-40     (c) Must establish] standards of practice for [persons engaged in

41-41  property management for a common-interest community;

41-42     (d) Must establish the grounds for initiating disciplinary action

41-43  against a person to whom a certificate has been issued, including,

41-44  without limitation, the grounds for placing conditions, limitations or

42-1  restrictions on a certificate and for the suspension or revocation of a

42-2  certificate; and

42-3      (e) Must establish rules of practice and procedure for conducting

42-4  disciplinary hearings.

42-5  The Real Estate Division of the Department of Business and

42-6  Industry] community managers who hold permits or certificates.

42-7      3.  The Division may investigate [the property managers to

42-8  whom certificates have been issued] any community manager who

42-9  holds a permit or certificate to ensure [their compliance] that the

42-10  community manager is complying with the standards of practice

42-11  adopted [pursuant to this subsection and collect a fee for the

42-12  issuance of a certificate] by the Commission . [in an amount not to

42-13  exceed the administrative costs of issuing the certificate.]

42-14     4.  In addition to any other remedy or penalty, if the

42-15  Commission or a hearing panel, after notice and hearing, finds

42-16  that a community manager who holds a permit or certificate has

42-17  violated any provision of this chapter or any of the standards of

42-18  practice adopted by the Commission, the Commission or the

42-19  hearing panel may take appropriate disciplinary action against the

42-20  community manager.

42-21     5.  The provisions of [subsection 2] this section do not apply to:

42-22     (a) [A person who is engaged in property management for a

42-23  common-interest community on October 1, 1999, and is granted an

42-24  exemption from the requirements of subsection 2 by the

42-25  Administrator upon demonstration that he is qualified and

42-26  competent to engage in property management for a common-interest

42-27  community.

42-28     (b)] A financial institution[.

42-29     (c)] that is engaging in an activity permitted by law.

42-30     (b) An attorney who is licensed to practice in this state[.

42-31     (d)] and who is acting in that capacity.

42-32     (c) A trustee[.

42-33     (e) An employee of a corporation who manages only] with

42-34  respect to the property of the [corporation.

42-35     (f)] trust.

42-36     (d) A declarant[.

42-37     (g)] , an affiliate of the declarant and any officers or

42-38  employees of the declarant or an affiliate of the declarant when

42-39  engaging in the management of a common-interest community

42-40  during the period in which the declarant controls that common-

42-41  interest community.

42-42     (e) A receiver[.

42-43     5.  As used in this section, “property management” means the

42-44  physical, administrative or financial maintenance and management

42-45  of real property, or the supervision of those activities for a fee,

43-1  commission or other compensation or valuable consideration.] with

43-2  respect to property subject to the receivership.

43-3      (f) A member of an executive board or an officer of an

43-4  association who is acting solely within the scope of his duties as a

43-5  member of the executive board or an officer of the association.

43-6      Sec. 71.  NRS 116.311391 is hereby amended to read as

43-7  follows:

43-8      116.311391  The expiration or revocation of a permit or

43-9  certificate [for the management of a common-interest community]

43-10  by operation of law or by order or decision of [the Real Estate

43-11  Commission or a] any agency or court of competent jurisdiction, or

43-12  the voluntary surrender of such a permit or certificate by the holder

43-13  of the permit or certificate does not:

43-14     1.  Prohibit the [Real Estate Division of the Department of

43-15  Business and Industry or Real Estate] Commission or the Division

43-16  from initiating or continuing an investigation of, or action or

43-17  disciplinary proceeding against, the holder of the permit or

43-18  certificate as authorized pursuant to the provisions of this chapter or

43-19  the regulations adopted pursuant thereto; or

43-20     2.  Prevent the imposition or collection of any fine or penalty

43-21  authorized pursuant to the provisions of this chapter or the

43-22  regulations adopted pursuant thereto against the holder of the permit

43-23  or certificate.

43-24     Sec. 72.  NRS 116.31151 is hereby amended to read as

43-25  follows:

43-26     116.31151  1.  Except as otherwise provided in subsection 2

43-27  and unless the declaration of a common‑interest community imposes

43-28  more stringent standards, the executive board of an association shall,

43-29  not less than 30 days or more than 60 days before the beginning of

43-30  the fiscal year of the association, prepare and distribute to each

43-31  unit’s owner a copy of:

43-32     (a) The budget for the daily operation of the association. The

43-33  budget must include, without limitation, the estimated annual

43-34  revenue and expenditures of the association and any contributions to

43-35  be made to the reserve account of the association.

43-36     (b) The budget to maintain the reserve required by paragraph (b)

43-37  of subsection 2 of NRS 116.3115. The budget must include, without

43-38  limitation:

43-39         (1) The current estimated replacement cost, estimated

43-40  remaining life and estimated useful life of each major component of

43-41  the common elements;

43-42         (2) As of the end of the fiscal year for which the budget is

43-43  prepared, the current estimate of the amount of cash reserves that

43-44  are necessary, and the current amount of accumulated cash reserves

44-1  that are set aside, to repair, replace or restore the major components

44-2  of the common elements;

44-3          (3) A statement as to whether the executive board has

44-4  determined or anticipates that the levy of one or more special

44-5  assessments will be required to repair, replace or restore any major

44-6  component of the common elements or to provide adequate reserves

44-7  for that purpose; and

44-8          (4) A general statement describing the procedures used for

44-9  the estimation and accumulation of cash reserves pursuant to

44-10  subparagraph (2), including, without limitation, the qualifications of

44-11  the person responsible for the preparation of the study of the

44-12  reserves required by NRS 116.31152.

44-13     2.  In lieu of distributing copies of the budgets of the

44-14  association required by subsection 1, the executive board may

44-15  distribute to each unit’s owner a summary of those budgets,

44-16  accompanied by a written notice that [the] :

44-17     (a) The budgets are available for review at the business office of

44-18  the association or some other suitable location within the county

44-19  where the common‑interest community is situated or, if it is

44-20  situated in more than one county, within one of those counties;

44-21  and [that copies]

44-22     (b) Copies of the budgets will be provided upon request.

44-23     Sec. 73.  NRS 116.31152 is hereby amended to read as

44-24  follows:

44-25     116.31152  1.  The executive board of an association shall:

44-26     (a) Cause to be conducted , at least once every 5 years, a study

44-27  of the reserves required to repair, replace and restore the major

44-28  components of the common elements;

44-29     (b) Review the results of that study at least annually to

44-30  determine if those reserves are sufficient; and

44-31     (c) Make any adjustments it deems necessary to maintain the

44-32  required reserves.

44-33     2.  The study of the reserves required by subsection 1 must be

44-34  conducted by a person who is qualified by training and experience

44-35  to conduct such a study, including , without limitation, a member of

44-36  the executive board, a unit’s owner or [the property manager of the

44-37  association] a community manager who is so qualified. The study

44-38  of the reserves must include, without limitation:

44-39     (a) A summary of an inspection of the major components of the

44-40  common elements that the association is obligated to repair, replace

44-41  or restore;

44-42     (b) An identification of the major components of the common

44-43  elements that the association is obligated to repair, replace or restore

44-44  which have a remaining useful life of less than 30 years;

45-1      (c) An estimate of the remaining useful life of each major

45-2  component identified pursuant to paragraph (b);

45-3      (d) An estimate of the cost of repair, replacement or restoration

45-4  of each major component identified pursuant to paragraph (b) during

45-5  and at the end of its useful life; and

45-6      (e) An estimate of the total annual assessment that may be

45-7  required to cover the cost of repairing, replacement or restoration of

45-8  the major components identified pursuant to paragraph (b), after

45-9  subtracting the reserves of the association as of the date of the study.

45-10     3.  The results of the study of the reserves required by

45-11  subsection 1 must be submitted to the Commission not later than

45-12  45 days after the date that the executive board of the association

45-13  adopts the results of the study.

45-14     4.  The [Administrator] Commission shall adopt by regulation

45-15  the qualifications required for conducting [a] the study of the

45-16  reserves required by subsection 1.

45-17     5.  If a common-interest community was developed as part of

45-18  a planned unit development pursuant to chapter 278A of NRS and

45-19  is subject to an agreement with a city or county to receive credit

45-20  against the amount of the residential construction tax that is

45-21  imposed pursuant to NRS 278.4983 and 278.4985, the association

45-22  that is organized for the common-interest community may use the

45-23  money from that credit for the repair, replacement or restoration

45-24  of park facilities and related improvements if:

45-25     (a) The park facilities and related improvements are identified

45-26  as major components of the common elements of the association;

45-27  and

45-28     (b) The association is obligated to repair, replace or restore the

45-29  park facilities and related improvements in accordance with the

45-30  study of the reserves required by subsection 1.

45-31     Sec. 74.  NRS 116.31155 is hereby amended to read as

45-32  follows:

45-33     116.31155  1.  An association shall:

45-34     (a) If the association is required to pay the fee imposed by NRS

45-35  78.150 , 82.193 or [82.193,] 86.263, pay to the Administrator a fee

45-36  established by regulation of the Administrator for every unit in the

45-37  association used for residential use.

45-38     (b) If the association is organized as a trust or partnership, pay

45-39  to the Administrator a fee established by regulation of the

45-40  Administrator for each unit in the association.

45-41     2.  The fees required to be paid pursuant to this section must be:

45-42     (a) Paid at such times as are established by the [Administrator.]

45-43  Division.

46-1      (b) Deposited with the State Treasurer for credit to the Account

46-2  for [the Ombudsman for Owners in] Common-Interest Communities

46-3  created [pursuant to] by NRS 116.1117.

46-4      (c) Established on the basis of the actual [cost] costs of

46-5  administering the Office of the Ombudsman [for Owners in

46-6  Common-Interest Communities] and the Commission and not on a

46-7  basis which includes any subsidy [for the Office.] beyond those

46-8  actual costs. In no event may the fees required to be paid pursuant

46-9  to this section exceed $3 per unit.

46-10     3.  The Administrator may by regulation establish an

46-11  administrative penalty to be imposed against an association that

46-12  violates the provisions of this section by failing to pay the fees

46-13  owed by the association within the times established by the

46-14  Division. The administrative penalty that is imposed for each

46-15  violation may not exceed 10 percent of the amount of the fees

46-16  owed by the association or $500, whichever amount is less.

46-17     4.  A unit’s owner may not be required to pay any portion of the

46-18  fees or any administrative penalties required to be paid pursuant to

46-19  this section to a master association and to an association organized

46-20  pursuant to NRS 116.3101.

46-21     [4.] 5. Upon the payment of the fees and any administrative

46-22  penalties required by this section, the Administrator shall provide to

46-23  the association evidence that it paid the fees and the administrative

46-24  penalties in compliance with this section.

46-25     Sec. 75.  NRS 116.31158 is hereby amended to read as

46-26  follows:

46-27     116.31158  1.  Each association shall, at the time it pays the

46-28  fee required by NRS 116.31155, register with the Ombudsman [for

46-29  Owners in Common-Interest Communities] on a form prescribed by

46-30  the Ombudsman.

46-31     2.  The form for registration must include, without limitation,

46-32  the information required to be maintained pursuant to paragraph

46-33  [(d)] (e) of subsection 4 of NRS 116.1116.

46-34     Sec. 76.  NRS 116.3116 is hereby amended to read as follows:

46-35     116.3116  1.  The association has a lien on a unit for any

46-36  construction penalty that is imposed against the unit’s owner

46-37  pursuant to section 47 of this act, any assessment levied against

46-38  that unit or any fines imposed against the unit’s owner from the time

46-39  the construction penalty, assessment or fine becomes due. Unless

46-40  the declaration otherwise provides, any penalties, fees, charges, late

46-41  charges, fines and interest charged pursuant to paragraphs (j), (k)

46-42  and (l) of subsection 1 of NRS 116.3102 are enforceable as

46-43  assessments under this section. If an assessment is payable in

46-44  installments, the full amount of the assessment is a lien from the

46-45  time the first installment thereof becomes due.

47-1      2.  A lien under this section is prior to all other liens and

47-2  encumbrances on a unit except:

47-3      (a) Liens and encumbrances recorded before the recordation of

47-4  the declaration and, in a cooperative, liens and encumbrances which

47-5  the association creates, assumes or takes subject to;

47-6      (b) A first security interest on the unit recorded before the date

47-7  on which the assessment sought to be enforced became delinquent

47-8  [,] or, in a cooperative, the first security interest encumbering only

47-9  the unit’s owner’s interest and perfected before the date on which

47-10  the assessment sought to be enforced became delinquent; and

47-11     (c) Liens for real estate taxes and other governmental

47-12  assessments or charges against the unit or cooperative.

47-13  The lien is also prior to all security interests described in paragraph

47-14  (b) to the extent of the assessments for common expenses based on

47-15  the periodic budget adopted by the association pursuant to NRS

47-16  116.3115 which would have become due in the absence of

47-17  acceleration during the 6 months immediately preceding institution

47-18  of an action to enforce the lien. This subsection does not affect the

47-19  priority of mechanics’ or materialmen’s liens, or the priority of liens

47-20  for other assessments made by the association.

47-21     3.  Unless the declaration otherwise provides, if two or more

47-22  associations have liens for assessments created at any time on the

47-23  same property, those liens have equal priority.

47-24     4.  Recording of the declaration constitutes record notice and

47-25  perfection of the lien. No further recordation of any claim of lien for

47-26  assessment under this section is required.

47-27     5.  A lien for unpaid assessments is extinguished unless

47-28  proceedings to enforce the lien are instituted within 3 years after the

47-29  full amount of the assessments becomes due.

47-30     6.  This section does not prohibit actions to recover sums for

47-31  which subsection 1 creates a lien or prohibit an association from

47-32  taking a deed in lieu of foreclosure.

47-33     7.  A judgment or decree in any action brought under this

47-34  section must include costs and reasonable attorney’s fees for the

47-35  prevailing party.

47-36     8.  The association , upon written request , shall furnish to a

47-37  unit’s owner a statement setting forth the amount of unpaid

47-38  assessments against the unit. If the interest of the unit’s owner is real

47-39  estate [,] or if a lien for the unpaid assessments may be foreclosed

47-40  under NRS 116.31162 to 116.31168, inclusive, the statement must

47-41  be in recordable form. The statement must be furnished within 10

47-42  business days after receipt of the request and is binding on the

47-43  association, the executive board and every unit’s owner.

47-44     9.  In a cooperative, upon nonpayment of an assessment on a

47-45  unit, the unit’s owner may be evicted in the same manner as

48-1  provided by law in the case of an unlawful holdover by a

48-2  commercial tenant, and :

48-3      (a) In a cooperative where the owner’s interest in a unit is real

48-4  estate under NRS 116.1105, the association’s lien may be

48-5  foreclosed [as provided by this section or by] under NRS 116.31162

48-6  to 116.31168, inclusive.

48-7      [10.] (b) In a cooperative where the owner’s interest in a unit is

48-8  personal property [(] under NRS 116.1105 , [),] the association’s

48-9  lien [may] :

48-10         (1) May be foreclosed [in like manner] as a security interest

48-11  under NRS 104.9101 to 104.9709, inclusive [.] ; or

48-12         (2) If the declaration so provides, may be foreclosed under

48-13  NRS 116.31162 to 116.31168, inclusive.

48-14     Sec. 77.  NRS 116.31162 is hereby amended to read as

48-15  follows:

48-16     116.31162  1.  Except as otherwise provided in subsection 4,

48-17  in a condominium, in a planned community, in a cooperative where

48-18  the owner’s interest in a unit is real estate [as determined pursuant

48-19  to] under NRS 116.1105, or [a planned community,] in a

48-20  cooperative where the owner’s interest in a unit is personal

48-21  property under NRS 116.1105 and the declaration provides that a

48-22  lien may be foreclosed under NRS 116.31162 to 116.31168,

48-23  inclusive, the association may foreclose its lien by sale after:

48-24     (a) The association has mailed by certified or registered mail,

48-25  return receipt requested, to the unit’s owner or his successor in

48-26  interest, at his address if known[,] and at the address of the unit, a

48-27  notice of delinquent assessment which states the amount of the

48-28  assessments and other sums which are due in accordance with

48-29  subsection 1 of NRS 116.3116, a description of the unit against

48-30  which the lien is imposed[,] and the name of the record owner of

48-31  the unit;

48-32     (b) [The] Not less than 30 days after mailing the notice of

48-33  delinquent assessment pursuant to paragraph (a), the association

48-34  or other person conducting the sale has executed and caused to be

48-35  recorded, with the county recorder of the county in which the

48-36  common-interest community or any part of it is situated, a notice of

48-37  default and election to sell the unit to satisfy the lien, which contains

48-38  the same information as the notice of delinquent assessment, but

48-39  must also describe the deficiency in payment and the name and

48-40  address of the person authorized by the association to enforce the

48-41  lien by sale; and

48-42     (c) The unit’s owner or his successor in interest has failed to pay

48-43  the amount of the lien, including costs, fees and expenses incident to

48-44  its enforcement, for [60] 90 days following the recording of the

48-45  notice of default and election to sell.

49-1      2.  The notice of default and election to sell must be signed by

49-2  the person designated in the declaration or by the association for that

49-3  purpose[,] or , if no one is designated, by the president of the

49-4  association.

49-5      3.  The period of [60] 90 days begins on the first day following

49-6  the later of:

49-7      (a) The day on which the notice of default is recorded; or

49-8      (b) The day on which a copy of the notice of default is mailed

49-9  by certified or registered mail, return receipt requested, to the unit’s

49-10  owner or his successor in interest at his address , if known, and at

49-11  the address of the unit.

49-12     4.  The association may not foreclose a lien by sale [for the

49-13  assessment of] based on a fine or penalty for a violation of the

49-14  [declaration, bylaws, rules or regulations] governing documents of

49-15  the association [, unless the violation is of a type that threatens]

49-16  unless:

49-17     (a) The violation threatens the health, safety or welfare of the

49-18  residents of the common-interest community [.] ; or

49-19     (b) The penalty is imposed for failure to adhere to a schedule

49-20  required pursuant to section 47 of this act.

49-21     Sec. 78.  NRS 116.311635 is hereby amended to read as

49-22  follows:

49-23     116.311635  The association or other person conducting the

49-24  sale shall also, after the expiration of the [60] 90 days and before

49-25  selling the unit:

49-26     1.  Give notice of the time and place of the sale in the manner

49-27  and for a time not less than that required by law for the sale of real

49-28  property upon execution, except that a copy of the notice of sale

49-29  must be mailed, on or before the date of first publication or posting,

49-30  by certified or registered mail, return receipt requested, to the unit’s

49-31  owner or his successor in interest at his address , if known, and to

49-32  the address of the unit.

49-33     2.  Mail, on or before the date of first publication or posting, a

49-34  copy of the notice by first-class mail to:

49-35     (a) Each person entitled to receive a copy of the notice of default

49-36  and election to sell notice under NRS 116.31163; [and]

49-37     (b) The holder of a recorded security interest or the purchaser of

49-38  the unit, if either of them has notified the association, before the

49-39  mailing of the notice of sale, of the existence of the security interest,

49-40  lease or contract of sale, as applicable [.] ; and

49-41     (c) The Ombudsman.

49-42     Sec. 79.  NRS 116.31175 is hereby amended to read as

49-43  follows:

49-44     116.31175  1.  Except as otherwise provided in this

49-45  subsection, the executive board of an association shall, upon the

50-1  written request of a unit’s owner, make available the books, records

50-2  and other papers of the association for review during the regular

50-3  working hours of the association[.] , including, without limitation,

50-4  all contracts to which the association is a party and all records

50-5  filed with a court relating to a civil or criminal action to which the

50-6  association is a party. The provisions of this subsection do not

50-7  apply to:

50-8      (a) The personnel records of the employees of the association [;

50-9  and] , except for those records relating to the number of hours

50-10  worked and the salaries and benefits of those employees;

50-11     (b) The records of the association relating to another unit’s

50-12  owner [.] , except for those records described in subsection 2; and

50-13     (c) A contract between the association and an attorney.

50-14     2.  The executive board of an association shall maintain a

50-15  general record concerning each violation of the governing

50-16  documents, other than a violation involving a failure to pay an

50-17  assessment, for which the executive board has imposed a fine, a

50-18  construction penalty or any other sanction. The general record:

50-19     (a) Must contain a general description of the nature of the

50-20  violation and the type of the sanction imposed. If the sanction

50-21  imposed was a fine or construction penalty, the general record

50-22  must specify the amount of the fine or construction penalty.

50-23     (b) Must not contain the name or address of the person against

50-24  whom the sanction was imposed or any other personal

50-25  information which may be used to identify the person or the

50-26  location of the unit, if any, that is associated with the violation.

50-27     (c) Must be maintained in an organized and convenient filing

50-28  system or data system that allows a unit’s owner to search and

50-29  review the general records concerning violations of the governing

50-30  documents.

50-31     3.  If the executive board refuses to allow a unit’s owner to

50-32  review the books, records or other papers of the association, the

50-33  Ombudsman [for Owners in Common-Interest Communities] may:

50-34     (a) On behalf of the unit’s owner and upon written request,

50-35  review the books, records or other papers of the association during

50-36  the regular working hours of the association; and

50-37     (b) If he is denied access to the books, records or other papers,

50-38  request the Commission , or any member thereof acting on behalf

50-39  of the Commission, to issue a subpoena for their production.

50-40     4.  The books, records and other papers of an association

50-41  must be maintained for at least 10 years. The provisions of this

50-42  subsection do not apply to:

50-43     (a) The minutes of a meeting of the units’ owners which must

50-44  be maintained in accordance with NRS 116.3108; or

51-1      (b) The minutes of a meeting of the executive board which

51-2  must be maintained in accordance with NRS 116.31083.

51-3      5.  The executive board shall not require a unit’s owner to pay

51-4  an amount in excess of $10 per hour to review any books, records,

51-5  contracts or other papers of the association pursuant to the

51-6  provisions of this section.

51-7      Sec. 80.  NRS 116.31177 is hereby amended to read as

51-8  follows:

51-9      116.31177  1.  The executive board of an association shall

51-10  maintain and make available for review at the business office of the

51-11  association or some other suitable location [:] within the county

51-12  where the common‑interest community is situated or, if it is

51-13  situated in more than one county, within one of those counties:

51-14     (a) The financial statement of the association;

51-15     (b) The budgets of the association required to be prepared

51-16  pursuant to NRS 116.31151; and

51-17     (c) The study of the reserves of the association required to be

51-18  conducted pursuant to NRS 116.31152.

51-19     2.  The executive board shall provide a copy of any of the

51-20  records required to be maintained pursuant to subsection 1 to a

51-21  unit’s owner or the Ombudsman [for Owners in Common-Interest

51-22  Communities] within 14 days after receiving a written request

51-23  therefor. The executive board may charge a fee to cover the actual

51-24  costs of preparing a copy, but not to exceed 25 cents per page.

51-25     Sec. 81.  NRS 116.3118 is hereby amended to read as follows:

51-26     116.3118  1.  The association shall keep financial records

51-27  sufficiently detailed to enable the association to comply with NRS

51-28  116.4109.

51-29     2.  All financial and other records of the association must be :

51-30     (a) Maintained and made available for review at the business

51-31  office of the association or some other suitable location within the

51-32  county where the common‑interest community is situated or, if it is

51-33  situated in more than one county, within one of those counties;

51-34  and

51-35     (b) Made reasonably available for any unit’s owner and his

51-36  authorized agents to inspect, examine, photocopy and audit.

51-37     Sec. 82.  NRS 116.4108 is hereby amended to read as follows:

51-38     116.4108  1.  A person required to deliver a public offering

51-39  statement pursuant to subsection 3 of NRS 116.4102 shall provide a

51-40  purchaser with a copy of the current public offering statement not

51-41  later than the date [of any contract of sale.] on which an offer to

51-42  purchase becomes binding on the purchaser. Unless the purchaser

51-43  has personally inspected the unit, the purchaser may cancel, by

51-44  written notice, the contract of purchase until midnight of the fifth

52-1  calendar day following the date of execution of the contract, and the

52-2  contract for purchase must contain a provision to that effect.

52-3      2.  If a purchaser elects to cancel a contract pursuant to

52-4  subsection 1, he may do so by hand delivering notice thereof to the

52-5  offeror or by mailing notice thereof by prepaid United States mail to

52-6  the offeror or to his agent for service of process. Cancellation is

52-7  without penalty, and all payments made by the purchaser before

52-8  cancellation must be refunded promptly.

52-9      3.  If a person required to deliver a public offering statement

52-10  pursuant to subsection 3 of NRS 116.4102 fails to provide a

52-11  purchaser to whom a unit is conveyed with a current public offering

52-12  statement, the purchaser is entitled to actual damages, rescission or

52-13  other relief, but if the purchaser has accepted a conveyance of the

52-14  unit, he is not entitled to rescission.

52-15     Sec. 83.  NRS 116.4109 is hereby amended to read as follows:

52-16     116.4109  1.  Except in the case of a sale in which delivery of

52-17  a public offering statement is required, or unless exempt under

52-18  subsection 2 of NRS 116.4101, a unit’s owner shall furnish to a

52-19  purchaser before [execution of any contract for sale of a unit, or

52-20  otherwise before conveyance:] an offer to purchase a unit becomes

52-21  binding on the purchaser:

52-22     (a) A copy of the declaration, other than any plats and plans, the

52-23  bylaws, the rules or regulations of the association and the

52-24  information statement required by NRS 116.41095;

52-25     (b) A statement setting forth the amount of the monthly

52-26  assessment for common expenses and any unpaid assessment of any

52-27  kind currently due from the selling unit’s owner;

52-28     (c) The current operating budget of the association and a

52-29  financial statement for the association [;] , which must include a

52-30  summary of the financial components of the study of the reserves

52-31  of the association required by NRS 116.31152; and

52-32     (d) A statement of any unsatisfied judgments or pending legal

52-33  actions against the association and the status of any pending legal

52-34  actions relating to the common-interest community of which the

52-35  unit’s owner has actual knowledge.

52-36     2.  The association, within 10 days after a request by a unit’s

52-37  owner, shall furnish a certificate containing the information

52-38  necessary to enable the unit’s owner to comply with [this section.]

52-39  subsection 1. A unit’s owner providing a certificate pursuant to

52-40  subsection 1 is not liable to the purchaser for any erroneous

52-41  information provided by the association and included in the

52-42  certificate.

52-43     3.  Neither a purchaser nor the purchaser’s interest in a unit is

52-44  liable for any unpaid assessment or fee greater than the amount set

52-45  forth in the certificate prepared by the association. If the association

53-1  fails to furnish the certificate within the 10 days allowed by

53-2  subsection 2, the seller is not liable for the delinquent assessment.

53-3      4.  Upon the request of a unit’s owner, a purchaser to whom

53-4  the unit’s owner has provided a certificate pursuant to subsection

53-5  1 or an authorized agent of the unit’s owner or the purchaser, the

53-6  association shall make the entire study of the reserves of the

53-7  association which is required by NRS 116.31152 reasonably

53-8  available for the unit’s owner, purchaser or authorized agent to

53-9  inspect, examine, photocopy and audit. The study must be made

53-10  available at the business office of the association or some other

53-11  suitable location within the county where the common‑interest

53-12  community is situated or, if it is situated in more than one county,

53-13  within one of those counties.

53-14     Sec. 84.  NRS 116.41095 is hereby amended to read as

53-15  follows:

53-16     116.41095  The information statement required by NRS

53-17  116.4103 and 116.4109 must be in substantially the following form:

 

53-18  BEFORE YOU PURCHASE PROPERTY IN A

53-19  COMMON-INTEREST COMMUNITY

53-20  DID YOU KNOW . . .

53-21     1.  YOU ARE AGREEING TO RESTRICTIONS ON HOW

53-22  YOU CAN USE YOUR PROPERTY?

53-23  These restrictions are contained in a document known as the

53-24  Declaration of Covenants, Conditions and Restrictions (C, C & R’s)

53-25  that should be provided for your review before making your

53-26  purchase. The C, C & R’s become a part of the title to your

53-27  property. They bind you and every future owner of the property

53-28  whether or not you have read them or had them explained to you.

53-29  The C, C & R’s, together with other “governing documents” (such

53-30  as association bylaws and rules and regulations), are intended to

53-31  preserve the character and value of properties in the community, but

53-32  may also restrict what you can do to improve or change your

53-33  property and limit how you use and enjoy your property. By

53-34  purchasing a property encumbered by C, C & R’s, you are agreeing

53-35  to limitations that could affect your lifestyle and freedom of choice.

53-36  You should review the C, C & R’s and other governing documents

53-37  before purchasing to make sure that these limitations and controls

53-38  are acceptable to you.

53-39     2.  YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS

53-40  FOR AS LONG AS YOU OWN YOUR PROPERTY?

53-41  As an owner in a common-interest community, you are responsible

53-42  for paying your share of expenses relating to the common elements,

53-43  such as landscaping, shared amenities and the operation of any

53-44  homeowner’s association. The obligation to pay these assessments

54-1  binds you and every future owner of the property. Owners’ fees are

54-2  usually assessed by the homeowner’s association and due monthly.

54-3  You have to pay dues whether or not you agree with the way the

54-4  association is managing the property or spending the assessments.

54-5  The executive board of the association may have the power to

54-6  change and increase the amount of the assessment and to levy

54-7  special assessments against your property to meet extraordinary

54-8  expenses. In some communities, major components of the

54-9  community such as roofs and private roads must be maintained and

54-10  replaced by the association. If the association is not well managed or

54-11  fails to maintain adequate reserves to repair, replace and restore

54-12  common elements, you may be required to pay large, special

54-13  assessments to accomplish these tasks.

54-14     3.  IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU

54-15  COULD LOSE YOUR HOME?

54-16  If you do not pay these assessments when due, the association

54-17  usually has the power to collect them by selling your property in a

54-18  nonjudicial foreclosure sale. If fees become delinquent, you may

54-19  also be required to pay penalties and the association’s costs and

54-20  attorney’s fees to become current. If you dispute the obligation or its

54-21  amount, your only remedy to avoid the loss of your home may be to

54-22  file a lawsuit and ask a court to intervene in the dispute.

54-23     4.  YOU MAY BECOME A MEMBER OF A

54-24  HOMEOWNER’S ASSOCIATION THAT HAS THE POWER TO

54-25  AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?

54-26  Many common-interest communities have a homeowner’s

54-27  association. In a new development, the association will usually be

54-28  controlled by the developer until a certain number of units have

54-29  been sold. After the period of developer control, the association may

54-30  be controlled by property owners like yourself who are elected by

54-31  homeowners to sit on an executive board and other boards and

54-32  committees formed by the association. The association, and its

54-33  executive board, are responsible for assessing homeowners for the

54-34  cost of operating the association and the common or shared

54-35  elements of the community and for the day to day operation and

54-36  management of the community. Because homeowners sitting on the

54-37  executive board and other boards and committees of the association

54-38  may not have the experience or professional background required to

54-39  understand and carry out the responsibilities of the association

54-40  properly, the association may hire professional managers to carry

54-41  out these responsibilities.

54-42  Homeowner’s associations operate on democratic principles. Some

54-43  decisions require all homeowners to vote, some decisions are made

54-44  by the executive board or other boards or committees established by

54-45  the association or governing documents. Although the actions of the

55-1  association and its executive board are governed by state laws, the

55-2  C, C & R’s and other documents that govern the common-interest

55-3  community, decisions made by these persons will affect your use

55-4  and enjoyment of your property, your lifestyle and freedom of

55-5  choice, and your cost of living in the community. You may not

55-6  agree with decisions made by the association or its governing bodies

55-7  even though the decisions are ones which the association is

55-8  authorized to make. Decisions may be made by a few persons on the

55-9  executive board or governing bodies that do not necessarily reflect

55-10  the view of the majority of homeowners in the community. If you do

55-11  not agree with decisions made by the association, its executive

55-12  board or other governing bodies, your remedy is typically to attempt

55-13  to use the democratic processes of the association to seek the

55-14  election of members of the executive board or other governing

55-15  bodies that are more responsive to your needs. If persons controlling

55-16  the association or its management are not complying with state laws

55-17  or the governing documents, your remedy is typically to seek to

55-18  mediate or arbitrate the dispute and, if mediation or arbitration is

55-19  unsuccessful, file a lawsuit and ask a court to resolve the dispute. In

55-20  addition to your personal cost in mediation or arbitration, or to

55-21  prosecute a lawsuit, you may be responsible for paying your share

55-22  of the association’s cost in defending against your claim. There is no

55-23  government agency in this state that investigates or intervenes to

55-24  resolve disputes in homeowner’s associations.

55-25     5.  YOU ARE REQUIRED TO PROVIDE PROSPECTIVE

55-26  BUYERS OF YOUR PROPERTY WITH INFORMATION

55-27  ABOUT LIVING IN YOUR COMMON-INTEREST

55-28  COMMUNITY?

55-29  The law requires you to provide to a prospective purchaser of your

55-30  property, before you enter into a purchase agreement, a copy of the

55-31  community’s governing documents, including the C, C & R’s,

55-32  association bylaws, and rules and regulations, as well as a copy of

55-33  this document. You are also required to provide a copy of the

55-34  association’s current financial statement, operating budget and

55-35  information regarding the amount of the monthly assessment for

55-36  common expenses, including the amount set aside as reserves for the

55-37  repair, replacement and restoration of common elements. You are

55-38  also required to inform prospective purchasers of any outstanding

55-39  judgments or lawsuits pending against the association of which you

55-40  are aware. You are also required to provide a copy of the minutes

55-41  from the most recent meeting of the homeowner’s association or its

55-42  executive board. For more information regarding these

55-43  requirements, see Nevada Revised Statutes 116.4103[.] and

55-44  116.4109.

56-1      6.  YOU HAVE CERTAIN RIGHTS REGARDING

56-2  OWNERSHIP IN A COMMON-INTEREST COMMUNITY THAT

56-3  ARE GUARANTEED YOU BY THE STATE?

56-4  Pursuant to provisions of chapter 116 of Nevada Revised Statutes,

56-5  you have the right:

56-6      (a) To be notified of all meetings of the association and its

56-7  executive board, except in cases of emergency.

56-8      (b) To attend and speak at all meetings of the association and its

56-9  executive board, except in some cases where the executive board is

56-10  authorized to meet in closed, executive session.

56-11     (c) To request a special meeting of the association upon petition

56-12  of at least 10 percent of the homeowners.

56-13     (d) To inspect, examine, photocopy and audit financial and other

56-14  records of the association.

56-15     (e) To be notified of all changes in the community’s rules and

56-16  regulations and other actions by the association or board that affect

56-17  you.

56-18     7.  QUESTIONS?

56-19  Although they may be voluminous, you should take the time to read

56-20  and understand the documents that will control your ownership of a

56-21  property in a common-interest community. You may wish to ask

56-22  your real estate professional, lawyer or other person with experience

56-23  to explain anything you do not understand. You may also request

56-24  assistance from the Ombudsman for Owners in Common-Interest

56-25  Communities, Nevada Real Estate Division, at (telephone number).

 

56-26  Buyer or prospective buyer’s initials:_____

56-27  Date:_____

56-28     Sec. 85.  NRS 38.300 is hereby amended to read as follows:

56-29     38.300  As used in NRS 38.300 to 38.360, inclusive, unless the

56-30  context otherwise requires:

56-31     1.  “Assessments” means:

56-32     (a) Any charge which an association may impose against an

56-33  owner of residential property pursuant to a declaration of covenants,

56-34  conditions and restrictions, including any late charges, interest and

56-35  costs of collecting the charges; and

56-36     (b) Any penalties, fines, fees and other charges which may be

56-37  imposed by an association pursuant to paragraphs (j), (k) and (l) of

56-38  subsection 1 of NRS 116.3102.

56-39     2.  “Association” has the meaning ascribed to it in NRS

56-40  116.110315.

56-41     3.  “Civil action” includes an action for money damages or

56-42  equitable relief. The term does not include an action in equity for

56-43  injunctive relief in which there is an immediate threat of irreparable

56-44  harm, or an action relating to the title to residential property.

57-1      4.  “Division” means the Real Estate Division of the

57-2  Department of Business and Industry.

57-3      5.  “Residential property” includes, but is not limited to, real

57-4  estate within a planned community subject to the provisions of

57-5  chapter 116 of NRS. The term does not include commercial property

57-6  if no portion thereof contains property which is used for residential

57-7  purposes.

57-8      Sec. 86.  NRS 38.330 is hereby amended to read as follows:

57-9      38.330  1.  If all parties named in a written claim filed

57-10  pursuant to NRS 38.320 agree to have the claim submitted for

57-11  mediation, the parties shall reduce the agreement to writing and

57-12  shall select a mediator from the list of mediators maintained by the

57-13  Division pursuant to NRS 38.340. Any mediator selected must be

57-14  available within the geographic area. If the parties fail to agree upon

57-15  a mediator, the Division shall appoint a mediator from the list of

57-16  mediators maintained by the Division. Any mediator appointed must

57-17  be available within the geographic area. Unless otherwise provided

57-18  by an agreement of the parties, mediation must be completed within

57-19  60 days after the parties agree to mediation. Any agreement

57-20  obtained through mediation conducted pursuant to this section must,

57-21  within 20 days after the conclusion of mediation, be reduced to

57-22  writing by the mediator and a copy thereof provided to each party.

57-23  The agreement may be enforced as any other written agreement.

57-24  Except as otherwise provided in this section, the parties are

57-25  responsible for all costs of mediation conducted pursuant to this

57-26  section.

57-27     2.  If all the parties named in the claim do not agree to

57-28  mediation, the parties shall select an arbitrator from the list of

57-29  arbitrators maintained by the Division pursuant to NRS 38.340. Any

57-30  arbitrator selected must be available within the geographic area. If

57-31  the parties fail to agree upon an arbitrator, the Division shall appoint

57-32  an arbitrator from the list maintained by the Division. Any arbitrator

57-33  appointed must be available within the geographic area. Upon

57-34  appointing an arbitrator, the Division shall provide the name of the

57-35  arbitrator to each party.

57-36     3.  The Division may provide for the payment of the fees for a

57-37  mediator or an arbitrator selected or appointed pursuant to this

57-38  section from the Account for [the Ombudsman for Owners in]

57-39  Common-Interest Communities created [pursuant to] by NRS

57-40  116.1117, to the extent that :

57-41     (a) The Commission for Common-Interest Communities

57-42  approves the payment; and

57-43     (b) There is money [is] available in the account for this purpose.

57-44     4.  Except as otherwise provided in this section and except

57-45  where inconsistent with the provisions of NRS 38.300 to 38.360,

58-1  inclusive, the arbitration of a claim pursuant to this section must be

58-2  conducted in accordance with the provisions of NRS 38.231,

58-3  38.232, 38.233, 38.236 to 38.239, inclusive, 38.242 and 38.243. At

58-4  any time during the arbitration of a claim relating to the

58-5  interpretation, application or enforcement of any covenants,

58-6  conditions or restrictions applicable to residential property or any

58-7  bylaws, rules or regulations adopted by an association, the arbitrator

58-8  may issue an order prohibiting the action upon which the claim is

58-9  based. An award must be made within 30 days after the conclusion

58-10  of arbitration, unless a shorter period is agreed upon by the parties to

58-11  the arbitration.

58-12     5.  If all the parties have agreed to nonbinding arbitration, any

58-13  party to the arbitration may, within 30 days after a decision and

58-14  award have been served upon the parties, commence a civil action in

58-15  the proper court concerning the claim which was submitted for

58-16  arbitration. Any complaint filed in such an action must contain a

58-17  sworn statement indicating that the issues addressed in the

58-18  complaint have been arbitrated pursuant to the provisions of NRS

58-19  38.300 to 38.360, inclusive. If such an action is not commenced

58-20  within that period, any party to the arbitration may, within 1 year

58-21  after the service of the award, apply to the proper court for a

58-22  confirmation of the award pursuant to NRS 38.239.

58-23     6.  If all the parties agree in writing to binding arbitration, the

58-24  arbitration must be conducted in accordance with the provisions of

58-25  this chapter . [38 of NRS.] An award procured pursuant to such

58-26  arbitration may be vacated and a rehearing granted upon application

58-27  of a party pursuant to the provisions of NRS 38.241.

58-28     7.  If, after the conclusion of arbitration, a party:

58-29     (a) Applies to have an award vacated and a rehearing granted

58-30  pursuant to NRS 38.241; or

58-31     (b) Commences a civil action based upon any claim which was

58-32  the subject of arbitration,

58-33  the party shall, if he fails to obtain a more favorable award or

58-34  judgment than that which was obtained in the initial arbitration, pay

58-35  all costs and reasonable attorney’s fees incurred by the opposing

58-36  party after the application for a rehearing was made or after the

58-37  complaint in the civil action was filed.

58-38     8.  Upon request by a party, the Division shall provide a

58-39  statement to the party indicating the amount of the fees for a

58-40  mediator or an arbitrator selected or appointed pursuant to this

58-41  section.

58-42     9.  As used in this section, “geographic area” means an area

58-43  within 150 miles from any residential property or association which

58-44  is the subject of a written claim submitted pursuant to NRS 38.320.

 

59-1      Sec. 87.  NRS 78.150 is hereby amended to read as follows:

59-2      78.150  1.  A corporation organized pursuant to the laws of

59-3  this state shall, on or before the first day of the second month after

59-4  the filing of its articles of incorporation with the Secretary of State,

59-5  file with the Secretary of State a list, on a form furnished by him,

59-6  containing:

59-7      (a) The name of the corporation;

59-8      (b) The file number of the corporation, if known;

59-9      (c) The names and titles of the president, secretary, treasurer and

59-10  of all the directors of the corporation;

59-11     (d) The mailing or street address, either residence or business, of

59-12  each officer and director listed, following the name of the officer or

59-13  director;

59-14     (e) The name and street address of the resident agent of the

59-15  corporation; and

59-16     (f) The signature of an officer of the corporation certifying that

59-17  the list is true, complete and accurate.

59-18     2.  The corporation shall annually thereafter, on or before the

59-19  last day of the month in which the anniversary date of incorporation

59-20  occurs in each year, file with the Secretary of State, on a form

59-21  furnished by him, an annual list containing all of the information

59-22  required in subsection 1.

59-23     3.  Each list required by subsection 1 or 2 must be accompanied

59-24  by a declaration under penalty of perjury that the corporation has

59-25  complied with the provisions of chapter 364A of NRS.

59-26     4.  Upon filing the list required by:

59-27     (a) Subsection 1, the corporation shall pay to the Secretary of

59-28  State a fee of $165.

59-29     (b) Subsection 2, the corporation shall pay to the Secretary of

59-30  State a fee of $85.

59-31     5.  The Secretary of State shall, 60 days before the last day for

59-32  filing each annual list required by subsection 2, cause to be mailed

59-33  to each corporation which is required to comply with the provisions

59-34  of NRS 78.150 to 78.185, inclusive, and which has not become

59-35  delinquent, a notice of the fee due pursuant to subsection 4 and a

59-36  reminder to file the annual list required by subsection 2. Failure of

59-37  any corporation to receive a notice or form does not excuse it from

59-38  the penalty imposed by law.

59-39     6.  If the list to be filed pursuant to the provisions of subsection

59-40  1 or 2 is defective in any respect or the fee required by subsection 4

59-41  or 8 is not paid, the Secretary of State may return the list for

59-42  correction or payment.

59-43     7.  An annual list for a corporation not in default which is

59-44  received by the Secretary of State more than 60 days before its due

59-45  date shall be deemed an amended list for the previous year and must

60-1  be accompanied by a fee of $85 for filing. A payment submitted

60-2  pursuant to this subsection does not satisfy the requirements of

60-3  subsection 2 for the year to which the due date is applicable.

60-4      8.  If the corporation is an association as defined in NRS

60-5  116.110315, the Secretary of State shall not accept the filing

60-6  required by this section unless it is accompanied by evidence of the

60-7  payment of the fee required to be paid pursuant to NRS 116.31155

60-8  that is provided to the association pursuant to [subsection 4 of] that

60-9  section.

60-10     Sec. 88.  As soon as practicable after July 1, 2003, the

60-11  Governor shall appoint to the Commission for Common-Interest

60-12  Communities:

60-13     1.  One member whose term begins on October 1, 2003, and

60-14  expires on October 1, 2004.

60-15     2.  Two members whose terms begin on October 1, 2003, and

60-16  expire on October 1, 2005.

60-17     3.  Two members whose terms begin on October 1, 2003, and

60-18  expire on October 1, 2006.

60-19     Sec. 89.  1.  Notwithstanding the provisions of this act and

60-20  except as otherwise provided in subsection 2, during the period from

60-21  October 1, 2003, until January 1, 2004, the Real Estate Commission,

60-22  the Real Estate Administrator, the Ombudsman for Owners in

60-23  Common-Interest Communities and the Real Estate Division of the

60-24  Department of Business and Industry shall continue to exercise all

60-25  the powers and perform all the duties that, before October 1, 2003,

60-26  were assigned to them pursuant to the provisions of chapter 116 of

60-27  NRS.

60-28     2.  During the period described in subsection 1, the

60-29  Commission for Common-Interest Communities, the Real Estate

60-30  Administrator, the Ombudsman for Owners in Common-Interest

60-31  Communities and the Real Estate Division of the Department of

60-32  Business and Industry may exercise any power and perform any

60-33  duty assigned to them pursuant to the provisions of chapter 116 of

60-34  NRS, as amended by this act, if the exercise of the power or the

60-35  performance of the duty is necessary as an organizational,

60-36  preparatory or preliminary measure to prepare them to carry out

60-37  those provisions.

60-38     Sec. 90.  1.  The State Treasurer shall transfer any balance

60-39  remaining unexpended on October 1, 2003, in the Account for the

60-40  Ombudsman for Owners in Common-Interest Communities in the

60-41  State General Fund to the Account for Common-Interest

60-42  Communities which is created by NRS 116.1117, as amended by

60-43  this act.

60-44     2.  On and after October 1, 2003, the State Treasurer shall treat

60-45  any outstanding claims against the Account for the Ombudsman for

61-1  Owners in Common-Interest Communities as claims against the

61-2  Account for Common-Interest Communities.

61-3      Sec. 91.  1.  Any administrative regulations adopted by an

61-4  officer or an agency whose name has been changed or whose

61-5  responsibilities have been transferred pursuant to the provisions of

61-6  this act to another officer or agency remain in force until amended

61-7  by the officer or agency to which the responsibility for the adoption

61-8  of the regulations has been transferred.

61-9      2.  Any contracts or other agreements entered into by an officer

61-10  or agency whose name has been changed or whose responsibilities

61-11  have been transferred pursuant to the provisions of this act to

61-12  another officer or agency are binding upon the officer or agency to

61-13  which the responsibility for the administration of the provisions of

61-14  the contract or other agreement has been transferred. Such contracts

61-15  and other agreements may be enforced by the officer or agency to

61-16  which the responsibility for the enforcement of the provisions of the

61-17  contract or other agreement has been transferred.

61-18     3.  Any action taken by an officer or agency whose name has

61-19  been changed or whose responsibilities have been transferred

61-20  pursuant to the provisions of this act to another officer or agency

61-21  remains in effect as if taken by the officer or agency to which the

61-22  responsibility for the enforcement of such actions has been

61-23  transferred.

61-24     Sec. 92.  1.  Not later than July 1, 2005, an association or

61-25  master association of a common-interest community shall have

61-26  conducted elections of members of the executive board so that the

61-27  terms of the members of the executive board are staggered as

61-28  required by the provisions of NRS 116.31034, as amended by

61-29  section 62 of this act.

61-30     2.  As used in this section:

61-31     (a) “Association” has the meaning ascribed to it in

61-32  NRS 116.110315.

61-33     (b) “Common-interest community” has the meaning ascribed to

61-34  it in NRS 116.110323.

61-35     (c) “Executive board” has the meaning ascribed to it in

61-36  NRS 116.110345.

61-37     (d) “Master association” has the meaning ascribed to it in

61-38  NRS 116.110358.

61-39     Sec. 93.  1.  This section and section 88 of this act become

61-40  effective on July 1, 2003.

61-41     2.  Sections 1 to 23, inclusive, 38 to 69, inclusive, 72 to 87,

61-42  inclusive, and 89 to 92, inclusive, of this act become effective on

61-43  October 1, 2003.

62-1      3.  Sections 24 to 37, inclusive, 70 and 71 of this act become

62-2  effective on October 1, 2003, for the purpose of adopting

62-3  regulations and on January 1, 2004, for all other purposes.

62-4      4.  Sections 25 and 26 of this act expire by limitation on the

62-5  date on which the provisions of 42 U.S.C. § 666 requiring each state

62-6  to establish procedures under which the state has authority to

62-7  withhold or suspend, or to restrict the use of professional,

62-8  occupational and recreational licenses of persons who:

62-9      (a) Have failed to comply with a subpoena or warrant relating to

62-10  a proceeding to determine the paternity of a child or to establish or

62-11  enforce an obligation for the support of a child; or

62-12     (b) Are in arrears in the payment for the support of one or more

62-13  children,

62-14  are repealed by the Congress of the United States, whichever is

62-15  earlier.

 

62-16  H