Link to Page 2818

 

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ê2009 Statutes of Nevada, Page 2819 (Chapter 485, AB 350)ê

 

      (a) The number or amount of fines imposed against or collected from units’ owners or tenants or guests of units’ owners pursuant to this chapter for violations of the governing documents of the association; or

      (b) Any percentage or proportion of those fines.

      6.  The provisions of this section do not prohibit a community manager from being paid compensation, a fee or other remuneration under the terms of a contract between the community manager and an association if:

      (a) The scope of the respective rights, duties and obligations of the parties under the contract comply with the standards of practice for community managers set forth in sections 19.5 and 19.6 of this act and any additional standards of practice adopted by the Commission by regulation pursuant to NRS 116A.400;

      (b) The compensation, fee or other remuneration is being paid to the community manager for providing management of the association of the condominium hotel; and

      (c) The compensation, fee or other remuneration is not structured in a way that would violate the provisions of subsection 1 or 5.

      Secs. 20 and 21.  (Deleted by amendment.)

      Sec. 21.3.  NRS 444.065 is hereby amended to read as follows:

      444.065  1.  Except as otherwise provided in subsection 2, as used in NRS 444.065 to 444.120, inclusive, “public swimming pool” means any structure containing an artificial body of water that is intended to be used collectively by persons for swimming or bathing, regardless of whether a fee is charged for its use.

      2.  The term does not include any such structure at:

      (a) A private residence if the structure is controlled by the owner or other authorized occupant of the residence and the use of the structure is limited to members of the family of the owner or authorized occupant of the residence or invited guests of the owner or authorized occupant of the residence.

      (b) A family foster home as defined in NRS 424.013.

      (c) A child care facility, as defined in NRS 432A.024, furnishing care to 12 children or less.

      (d) Any other residence or facility as determined by the State Board of Health.

      (e) Any location if the structure is a privately-owned pool used by members of a private club or invited guests of the members.

      Sec. 21.7.  Senate Bill No. 253 of this session is hereby amended by adding thereto a new section to read as follows:

      Sec. 10.  1.  This section and section 8 of this act become effective upon passage and approval.

      2.  Sections 1 to 7, inclusive, and 9 of this act become effective on October 1, 2009.

      Sec. 22.  1.  This section and sections 21.3 and 21.7 of this act become effective upon passage and approval.

      2.  Section 1.7 of this act becomes effective upon passage and approval for the purpose of adopting regulations and on January 1, 2010, for all other purposes.

      3.  Sections 2.5 to 21, inclusive, of this act become effective on July 1, 2009.

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ê2009 Statutes of Nevada, Page 2820ê

 

CHAPTER 486, AB 385

Assembly Bill No. 385–Assemblyman Horne

 

CHAPTER 486

 

AN ACT relating to prisons; requiring the Board of State Prison Commissioners to adopt regulations pertaining to a facility or institution operated by a private organization; requiring the monitoring of certain private facilities and institutions; providing that certain provisions relating to a prisoner confined in a facility or institution also apply to a prisoner confined in a private facility or institution operated by a private organization; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Existing law requires the Board of State Prison Commissioners to adopt regulations for carrying out the business of the Board and of the Department of Corrections. (NRS 209.111) Section 1.4 of this bill requires the Board to adopt additional regulations establishing the maximum number of prisoners that may be incarcerated in a private facility or institution. Those regulations must be based upon the standards adopted by the American Correctional Association.

      Section 1.5 of this bill requires the Department to monitor private facilities or institutions which house prisoners incarcerated pursuant to the authority of another state to ensure that the care and custody of the prisoners comply with the Nevada Constitution and the United States Constitution.

      Existing law makes it a crime for: (1) a prisoner to escape from prison or to manufacture or possess certain items used in an escape; (2) a person to aid a prisoner in escaping from prison; (3) a person who has custody of a prisoner to allow the prisoner to escape; and (4) a person to conceal an escaped prisoner. (NRS 212.080, 212.090, 212.093, 212.100-212.130) Existing law also provides certain procedures for issuing a warrant for the arrest of an escaped prisoner and the manner in which expenses for recapturing the prisoner must be paid. (NRS 212.030-212.080) Further, existing law makes it a crime to: (1) provide certain items to a prisoner, including certain weapons, an intoxicant or a controlled substance and certain communications devices; or (2) engage in certain behavior concerning a prisoner, such as engaging in sexual conduct or certain unlawful acts relating to human excrement or bodily fluid. (NRS 212.160-212.189) Section 1.7 of this bill provides that those provisions also apply to a prisoner incarcerated in a private prison operated by a private organization as well as to certain other persons. Section 1.7 also provides that the private organization which operates a private facility or institution must: (1) reimburse the State for expenses incurred by the State in recapturing a prisoner who escapes from the private facility or institution; and (2) provide training to its employees that is equivalent to the training provided to a correctional officer in this State.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  (Deleted by amendment.)

      Sec. 1.3.  Chapter 209 of NRS is hereby amended by adding thereto the provisions set forth as sections 1.35 to 1.6, inclusive, of this act.

      Sec. 1.35.  “Private facility or institution” means a facility or institution operated by a private organization to house prisoners.

      Sec. 1.4.  1.  To ensure the safety of the residents of the State of Nevada, the Board shall adopt regulations establishing the maximum number of prisoners who may be incarcerated in a private facility or institution.

 


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ê2009 Statutes of Nevada, Page 2821 (Chapter 486, AB 385)ê

 

number of prisoners who may be incarcerated in a private facility or institution. The regulations must be based upon the standards adopted by the American Correctional Association or its successor organization.

      2.  As used in this section, “prisoner” has the meaning ascribed to it in section 1.7 of this act.

      Sec. 1.5.  1.  The Department shall monitor each private facility or institution which houses prisoners who are incarcerated pursuant to the authority of another state to ensure that the custody and care of the prisoners comply with the requirements of the Nevada Constitution and the Constitution of the United States.

      2.  A private facility or institution which is monitored by the Department pursuant to subsection 1 shall reimburse the Department for the costs of such monitoring. The Department shall determine the cost of the monitoring required by subsection 1 on a per-prisoner basis.

      Sec. 1.6.  (Deleted by amendment.)

      Sec. 1.63.  NRS 209.011 is hereby amended to read as follows:

      209.011  As used in this chapter, unless the context otherwise requires, the terms defined in NRS 209.021 to 209.085, inclusive, and section 1.35 of this act have the meanings ascribed to them in those sections.

      Sec. 1.67.  (Deleted by amendment.)

      Sec. 1.7.  Chapter 212 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The provisions of this section and NRS 212.030 to 212.130, inclusive, and 212.160 to 212.189, inclusive, apply to:

      (a) A person who has custody of a prisoner assigned to a private facility or institution in this State; and

      (b) A prisoner assigned to a private facility or institution in this State,

Ê to the same extent that those provisions would apply if the prisoner had been assigned to a facility or institution operated by the Department.

      2.  A private organization that operates a private facility or institution must provide training to any person employed by the private facility or institution to perform the duties of a correctional officer described in subsection 5 of NRS 209.131. The training must be equivalent to the training provided to a correctional officer in this State.

      3.  The private organization that operates a private facility or institution must reimburse the State for any expenses charged against the State or paid by the State pursuant to NRS 212.040, 212.050 or 212.070 concerning a prisoner who escapes from the private facility or institution.

      4.  As used in this section:

      (a) “Prisoner” means any person who is:

            (1) Convicted of a crime under the laws of this State and sentenced to imprisonment in the state prison; or

            (2) Convicted of a crime under the laws of another jurisdiction and sentenced to imprisonment by that jurisdiction.

      (b) “Private facility or institution” has the meaning ascribed to it in section 1.35 of this act.

      Secs. 2 and 3.  (Deleted by amendment.)

      Sec. 4.  This act becomes effective on July 1, 2009.

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ê2009 Statutes of Nevada, Page 2822ê

 

CHAPTER 487, AB 521

Assembly Bill No. 521–Committee on Commerce and Labor

 

CHAPTER 487

 

AN ACT relating to occupational diseases; expanding the list of substances which are deemed to be known carcinogens that are reasonably associated with specific disabling cancers for the purposes of the provisions governing coverage for cancer as an occupational disease; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Under existing law, cancer which results in temporary disability, permanent disability or death is an occupational disease and compensable as such under the provisions of chapter 617 of NRS if the cancer develops or manifests itself out of and in the course of employment of a person who, for 5 years or more, has been employed as a full-time firefighter or has been acting as a volunteer firefighter and who, during the course of the employment, was exposed to a known carcinogen that is reasonably associated with the disabling cancer. Existing law also sets forth a list of substances that shall be deemed to be known carcinogens that are reasonably associated with specific disabling cancers. (NRS 617.453) This bill expands the list of substances which are deemed to be known carcinogens that are reasonably associated with specific disabling cancers.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 617.453 is hereby amended to read as follows:

      617.453  1.  Notwithstanding any other provision of this chapter, cancer, resulting in either temporary or permanent disability, or death, is an occupational disease and compensable as such under the provisions of this chapter if:

      (a) The cancer develops or manifests itself out of and in the course of the employment of a person who, for 5 years or more, has been:

            (1) Employed in this State in a full-time salaried occupation of fire fighting for the benefit or safety of the public; or

            (2) Acting as a volunteer firefighter in this State and is entitled to the benefits of chapters 616A to 616D, inclusive, of NRS pursuant to the provisions of NRS 616A.145; and

      (b) It is demonstrated that:

            (1) He was exposed, while in the course of the employment, to a known carcinogen as defined by the International Agency for Research on Cancer or the National Toxicology Program; and

            (2) The carcinogen is reasonably associated with the disabling cancer.

      2.  With respect to a person who, for 5 years or more, has been employed in this State in a full-time salaried occupation of fire fighting for the benefit or safety of the public, the following substances shall be deemed, for the purposes of paragraph (b) of subsection 1, to be known carcinogens that are reasonably associated with the following disabling cancers:

 


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ê2009 Statutes of Nevada, Page 2823 (Chapter 487, AB 521)ê

 

      (a) Diesel exhaust, formaldehyde and polycyclic aromatic hydrocarbon shall be deemed to be known carcinogens that are reasonably associated with bladder cancer.

      (b) Acrylonitrile, formaldehyde and vinyl chloride shall be deemed to be known carcinogens that are reasonably associated with brain cancer.

      (c) Diesel exhaust and formaldehyde shall be deemed to be known carcinogens that are reasonably associated with colon cancer.

      (d) Formaldehyde shall be deemed to be a known carcinogen that is reasonably associated with Hodgkin’s lymphoma.

      (e) Formaldehyde and polycyclic aromatic hydrocarbon shall be deemed to be known carcinogens that are reasonably associated with kidney cancer.

      (f) Chloroform, soot and vinyl chloride shall be deemed to be known carcinogens that are reasonably associated with liver cancer.

      (g) Acrylonitrile, benzene, formaldehyde, polycyclic aromatic hydrocarbon, soot and vinyl chloride shall be deemed to be known carcinogens that are reasonably associated with lymphatic or haemotopoietic cancer.

      (h) Diesel exhaust, soot, aldehydes and polycyclic aromatic hydrocarbon shall be deemed to be known carcinogens that are reasonably associated with basal cell carcinoma, squamous cell carcinoma and malignant melanoma.

      (i) Acrylonitrile, benzene and formaldehyde shall be deemed to be known carcinogens that are reasonably associated with prostate cancer.

      (j) Diesel exhaust, soot and polychlorinated biphenyls shall be deemed to be known carcinogens that are reasonably associated with testicular cancer.

      (k) Diesel exhaust, benzene and X-ray radiation shall be deemed to be known carcinogens that are reasonably associated with thyroid cancer.

      3.  The provisions of subsection 2 do not create an exclusive list and do not preclude any person from demonstrating, on a case-by-case basis for the purposes of paragraph (b) of subsection 1, that a substance is a known carcinogen that is reasonably associated with a disabling cancer.

      4.  Compensation awarded to the employee or his dependents for disabling cancer pursuant to this section must include:

      (a) Full reimbursement for related expenses incurred for medical treatments, surgery and hospitalization in accordance with the schedule of fees and charges established pursuant to NRS 616C.260 or, if the insurer has contracted with an organization for managed care or with providers of health care pursuant to NRS 616B.527, the amount that is allowed for the treatment or other services under that contract; and

      (b) The compensation provided in chapters 616A to 616D, inclusive, of NRS for the disability or death.

      5.  Disabling cancer is presumed to have developed or manifested itself out of and in the course of the employment of any firefighter described in this section. This rebuttable presumption applies to disabling cancer diagnosed after the termination of the person’s employment if the diagnosis occurs within a period, not to exceed 60 months, which begins with the last date the employee actually worked in the qualifying capacity and extends for a period calculated by multiplying 3 months by the number of full years of his employment. This rebuttable presumption must control the awarding of benefits pursuant to this section unless evidence to rebut the presumption is presented.

 


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ê2009 Statutes of Nevada, Page 2824 (Chapter 487, AB 521)ê

 

      6.  The provisions of this section do not create a conclusive presumption.

      Sec. 2.  This act becomes effective on July 1, 2009.

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CHAPTER 488, SB 55

Senate Bill No. 55–Committee on Judiciary

 

CHAPTER 488

 

AN ACT relating to business entities; providing that business entities may cancel filings made with the Secretary of State under certain circumstances; revising the provisions relating to the resignation of a registered agent; revising the provisions relating to the filing of certain lists by business entities; revising provisions relating to the payment of dividends or distributions of stock to a judgment creditor; revising provisions relating to domestication of an undomesticated organization; making various other changes pertaining to business entities; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Sections 1, 3, 7, 8, 11, 14, 16, 22, 29, 31, 39, 50 and 53 of this bill authorize certain business entities that have made a filing with the Secretary of State to cancel the filing if: (1) the Secretary of State has not processed the filing and placed the filing into the public record; and (2) the business entity pays the required fee. (NRS 78.0295, 80.007, 81.006, 82.534, 84.009, 86.568, 87.547, 87A.275, 88.339, 88A.930)

      Section 2.5 of this bill amends existing law, which requires a registered agent who wishes to resign with respect to a represented entity to file with the Secretary of State a statement of resignation which includes the name and address of the person to which the agent will send the notice of resignation, to require such registered agent to file with the Secretary of State an affidavit stating that written notice was provided to each represented entity and to keep a copy of such notice on file for 1 year from the date of filing the statement of resignation and to make any such copy available to the Secretary of State upon request. (NRS 77.370)

      Sections 4, 9, 13, 18, 20, 24, 26, 32, 34, 40, 42, 47 and 48 of this bill amend existing law, which requires the Secretary of State to mail certain notices and blank forms to certain business entities, to authorize the Secretary of State to provide instead, by any means, notice to those business entities of the applicable statutory obligations to file certain lists. (NRS 78.150, 80.110, 82.523, 86.263, 86.5461, 87.510, 87.541, 87A.290, 87A.560, 88.395, 88.591, 88A.600, 88A.732)

      Sections 5, 10, 12, 17, 21, 25, 27, 30, 35, 37, 38, 43, 45, 46, 49, 51 and 52 of this bill provide that a business entity is required to provide the Secretary of State certain information concerning its owners of record only upon the request of the Secretary of State. (NRS 78.152, 80.113, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251)

      Under existing law, a corporation sole may be formed for acquiring, holding or disposing of church or religious society property, for the benefit of religion, for works of charity and for public worship. Existing law provides the procedures for forming a corporation sole, the powers of a corporation sole and the process of default, reinstatement or revocation of a charter of a corporation sole. (Chapter 84 of NRS)

 


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ê2009 Statutes of Nevada, Page 2825 (Chapter 488, SB 55)ê

 

      Sections 15.5 and 16.2-16.8 of this bill provide that: (1) existing corporations sole may continue in existence; and (2) no new corporations sole may be formed in the future, except that certain subordinate corporations sole may be formed until July 1, 2011.

      Sections 23 and 28 of this bill make technical corrections: (1) to an incorrect reference concerning a registered limited-liability partnership; and (2) to include a reference to the requirement to provide information concerning a registered agent when a foreign registered limited-liability partnership is seeking reinstatement. (NRS 87.480, 87.5435)

      Section 6.5 of this bill amends existing law to: (1) define the rights of a judgment creditor who, by court order, receives the distribution or dividend of shares of stock from a stockholder who is the judgment debtor; (2) expand the applicability of the court order to corporations with more than 1 but fewer than 100 shareholders; and (3) provide that the court order does not supersede a private agreement between the stockholder and the creditor if the agreement does not conflict with the corporation’s articles of incorporation, bylaws or a shareholder agreement to which the stockholder is a party. (NRS 78.746)

      Sections 36 and 44 of this bill authorize a partnership to register as a limited-liability limited partnership by filing a combined certificate with the Secretary of State and paying the appropriate fee. (NRS 87A.630, 88.606)

      Section 53.5 of this bill amends existing law to provide that an undomesticated organization seeking domestication in this State must provide a certified copy of the charter document and a certificate of good standing, or the equivalent, from the jurisdiction where the organization was chartered immediately preceding the application for domestication. Additionally, section 53.5 addresses the liability of a shareholder or other type of owner of the organization before and after domestication of the organization in this State. Finally, section 53.5 expands the availability of domestication in this State from only organizations governed by the laws of a foreign country or jurisdiction outside the United States to include organizations governed by the laws of any state other than this State, including those of other states within the United States. (NRS 92A.270)

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 77 of NRS is hereby amended by adding thereto a new section to read as follows:

      If an entity has made a filing with the Secretary of State pursuant to this chapter and the Secretary of State has not processed the filing and placed the filing into the public record, the entity may cancel the filing by:

      1.  Filing a statement of cancellation with the Secretary of State; and

      2.  Paying a fee of $50.

      Sec. 1.5.  NRS 77.300 is hereby amended to read as follows:

      77.300  Whenever a provision of this chapter [other than paragraph (d) of subsection 1 of NRS 77.370] requires that a filing state an address, the filing must state:

      1.  An actual street address or rural route box number in this State; and

      2.  A mailing address in this State, if different from the address under subsection 1.

      Sec. 2.  (Deleted by amendment.)

      Sec. 2.5.  NRS 77.370 is hereby amended to read as follows:

      77.370  1.  A registered agent may resign at any time with respect to a represented entity by filing with the Secretary of State a statement of resignation signed by or on behalf of the agent which states:

 


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ê2009 Statutes of Nevada, Page 2826 (Chapter 488, SB 55)ê

 

      (a) The name of the entity;

      (b) The name of the agent; and

      (c) That the agent resigns from serving as agent for service of process for the entity . [; and

      (d) The name and address of the person to which the agent will send the notice required by subsection 3.]

      2.  A statement of resignation takes effect on the earlier of the 31st day after the day on which it is filed or the appointment of a new registered agent for the represented entity.

      3.  The registered agent shall promptly furnish the represented entity with notice in a record of the date on which a statement of resignation was filed [.] and shall file with the Secretary of State an affidavit stating that written notice of the resignation has been provided to each represented entity. The affidavit must include the name of each represented entity that was provided notice, but is not required to include the contact information of the represented entity or the names of the interest holders of the represented entity. The registered agent shall keep a copy of each notice provided to a represented entity on file for 1 year after the date of filing the statement of resignation and shall make any such copy available to the Secretary of State upon request.

      4.  When a statement of resignation takes effect, the registered agent ceases to have responsibility for any matter tendered to it as agent for the represented entity. A resignation under this section does not affect any contractual rights the entity may have against the agent or that the agent may have against the entity.

      5.  A registered agent may resign with respect to a represented entity whether or not the entity is in good standing.

      Sec. 3.  NRS 78.0295 is hereby amended to read as follows:

      78.0295  1.  A corporation may correct a record filed in the Office of the Secretary of State with respect to the corporation if the record contains an inaccurate description of a corporate action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the corporation must:

      (a) Prepare a certificate of correction which:

            (1) States the name of the corporation;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by an officer of the corporation or, if no stock has been issued by the corporation, by the incorporator or a director of the corporation.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a corporation has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the corporation may cancel the filing by:

 


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ê2009 Statutes of Nevada, Page 2827 (Chapter 488, SB 55)ê

 

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying the required fee pursuant to subsection 7 of NRS 78.785.

      Sec. 4.  NRS 78.150 is hereby amended to read as follows:

      78.150  1.  A corporation organized pursuant to the laws of this State shall, on or before the last day of the first month after the filing of its articles of incorporation with the Secretary of State, file with the Secretary of State a list, on a form furnished by him, containing:

      (a) The name of the corporation;

      (b) The file number of the corporation, if known;

      (c) The names and titles of the president, secretary and treasurer, or the equivalent thereof, and of all the directors of the corporation;

      (d) The address, either residence or business, of each officer and director listed, following the name of the officer or director;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of an officer of the corporation certifying that the list is true, complete and accurate.

      2.  The corporation shall annually thereafter, on or before the last day of the month in which the anniversary date of incorporation occurs in each year, file with the Secretary of State, on a form furnished by him, an annual list containing all of the information required in subsection 1.

      3.  Each list required by subsection 1 or 2 must be accompanied by:

      (a) A declaration under penalty of perjury that the corporation:

            (1) Has complied with the provisions of NRS 360.780; and

            (2) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.

      (b) A statement as to whether the corporation is a publicly traded company. If the corporation is a publicly traded company, the corporation must list its Central Index Key. The Secretary of State shall include on his Internet website the Central Index Key of a corporation provided pursuant to this paragraph and instructions describing the manner in which a member of the public may obtain information concerning the corporation from the Securities and Exchange Commission.

      4.  Upon filing the list required by:

      (a) Subsection 1, the corporation shall pay to the Secretary of State a fee of $125.

      (b) Subsection 2, the corporation shall pay to the Secretary of State, if the amount represented by the total number of shares provided for in the articles is:

 

$75,000 or less................................................................................ $125

Over $75,000 and not over $200,000............................................ 175

Over $200,000 and not over $500,000.......................................... 275

Over $500,000 and not over $1,000,000....................................... 375

Over $1,000,000:

      For the first $1,000,000.............................................................. 375

      For each additional $500,000 or fraction thereof.................. 275

Ê The maximum fee which may be charged pursuant to paragraph (b) for filing the annual list is $11,100.

 

      5.  If a director or officer of a corporation resigns and the resignation is not reflected on the annual or amended list of directors and officers, the corporation or the resigning director or officer shall pay to the Secretary of State a fee of $75 to file the resignation.

 


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ê2009 Statutes of Nevada, Page 2828 (Chapter 488, SB 55)ê

 

corporation or the resigning director or officer shall pay to the Secretary of State a fee of $75 to file the resignation.

      6.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 2, [cause to be mailed] provide to each corporation which is required to comply with the provisions of NRS 78.150 to 78.185, inclusive, and which has not become delinquent, a notice of the fee due pursuant to subsection 4 and a reminder to file the annual list required by subsection 2. Failure of any corporation to receive a notice [or form] does not excuse it from the penalty imposed by law.

      7.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective in any respect or the fee required by subsection 4 is not paid, the Secretary of State may return the list for correction or payment.

      8.  An annual list for a corporation not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and must be accompanied by the appropriate fee as provided in subsection 4 for filing. A payment submitted pursuant to this subsection does not satisfy the requirements of subsection 2 for the year to which the due date is applicable.

      Sec. 5.  NRS 78.152 is hereby amended to read as follows:

      78.152  1.  In addition to any records required to be kept at the registered office pursuant to NRS 78.105, a corporation that is not a publicly traded corporation shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its owners of record; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the corporation shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a corporation to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a corporation fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the corporate charter.

      5.  The Secretary of State shall not reinstate or revive a charter that was revoked or suspended pursuant to subsection 4 unless:

      (a) The corporation complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the corporate charter.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 6.  (Deleted by amendment.)

 


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ê2009 Statutes of Nevada, Page 2829 (Chapter 488, SB 55)ê

 

      Sec. 6.5.  NRS 78.746 is hereby amended to read as follows:

      78.746  1.  On application to a court of competent jurisdiction by a judgment creditor of a stockholder, the court may charge the stockholder’s stock with payment of the unsatisfied amount of the judgment with interest. To the extent so charged, the judgment creditor has only the rights of an assignee of the stockholder’s stock.

      2.  This section:

      (a) Applies only to a corporation that:

            (1) Has more than 1 but fewer than [75] 100 stockholders of record at any time.

            (2) Is not a subsidiary of a publicly traded corporation, either in whole or in part.

            (3) Is not a professional corporation as defined in NRS 89.020.

      (b) Does not apply to any liability of a stockholder that exists as the result of an action filed before July 1, 2007.

      (c) Provides the exclusive remedy by which a judgment creditor of a stockholder or an assignee of a stockholder may satisfy a judgment out of the stockholder’s stock of the corporation.

      (d) Does not deprive any stockholder of the benefit of any exemption applicable to the stockholder’s stock.

      (e) Does not supersede any private agreement between a stockholder and a creditor [.] if the private agreement does not conflict with the corporation’s articles of incorporation, bylaws or any shareholder agreement to which the stockholder is a party.

      3.  As used in this section, “rights of an assignee” means the rights to receive the share of the distributions or dividends paid by the corporation to which the judgment debtor would otherwise be entitled. The term does not include the rights to participate in the management of the business or affairs of the corporation or to become a director of the corporation.

      Sec. 7.  Chapter 78A of NRS is hereby amended by adding thereto a new section to read as follows:

      If a close corporation has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the close corporation may cancel the filing by:

      1.  Filing a statement of cancellation with the Secretary of State; and

      2.  Paying the required fee pursuant to subsection 7 of NRS 78.785.

      Sec. 8.  NRS 80.007 is hereby amended to read as follows:

      80.007  1.  A foreign corporation may correct a record filed in the Office of the Secretary of State if the record contains an incorrect statement or was defectively signed, attested, sealed or verified.

      2.  To correct a record, the corporation must:

      (a) Prepare a certificate of correction which:

            (1) States the name of the corporation;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by an officer of the corporation or, if no stock has been issued by the corporation, by the incorporator or a director of the corporation.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

 


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ê2009 Statutes of Nevada, Page 2830 (Chapter 488, SB 55)ê

 

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a foreign corporation has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the foreign corporation may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying the required fee pursuant to subsection 7 of NRS 78.785.

      Sec. 9.  NRS 80.110 is hereby amended to read as follows:

      80.110  1.  Each foreign corporation doing business in this State shall, on or before the last day of the first month after the filing of its certificate of corporate existence with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The names and addresses, either residence or business, of its president, secretary and treasurer, or the equivalent thereof, and all of its directors;

      (b) The information required pursuant to NRS 77.310; and

      (c) The signature of an officer of the corporation.

      2.  Each list filed pursuant to subsection 1 must be accompanied by:

      (a) A declaration under penalty of perjury that the foreign corporation has complied with the provisions of NRS 360.780 and which acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.

      (b) A statement as to whether the foreign corporation is a publicly traded company. If the corporation is a publicly traded company, the corporation must list its Central Index Key. The Secretary of State shall include on his Internet website the Central Index Key of a corporation provided pursuant to this subsection and instructions describing the manner in which a member of the public may obtain information concerning the corporation from the Securities and Exchange Commission.

      3.  Upon filing:

      (a) The initial list required by subsection 1, the corporation shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, the corporation shall pay to the Secretary of State, if the amount represented by the total number of shares provided for in the articles is:

 

$75,000 or less................................................................................ $125

Over $75,000 and not over $200,000............................................ 175

Over $200,000 and not over $500,000.......................................... 275

Over $500,000 and not over $1,000,000....................................... 375

Over $1,000,000:

      For the first $1,000,000.............................................................. 375

      For each additional $500,000 or fraction thereof.................. 275

Ê The maximum fee which may be charged pursuant to paragraph (b) for filing the annual list is $11,100.

 


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ê2009 Statutes of Nevada, Page 2831 (Chapter 488, SB 55)ê

 

      4.  If a director or officer of a corporation resigns and the resignation is not reflected on the annual or amended list of directors and officers, the corporation or the resigning director or officer shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each corporation which is required to comply with the provisions of NRS 80.110 to 80.175, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list pursuant to subsection 1. Failure of any corporation to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 80.110 to 80.175, inclusive.

      6.  An annual list for a corporation not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 10.  NRS 80.113 is hereby amended to read as follows:

      80.113  1.  A foreign corporation that is not a publicly traded corporation shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its owners of record; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign corporation shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign corporation to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign corporation fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the foreign corporation to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a foreign corporation to transact business that was revoked or suspended pursuant to subsection 4 unless:

      (a) The foreign corporation complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the foreign corporation to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

 


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ê2009 Statutes of Nevada, Page 2832 (Chapter 488, SB 55)ê

 

      Sec. 11.  NRS 81.006 is hereby amended to read as follows:

      81.006  1.  A nonprofit cooperative corporation, a cooperative association, a charitable organization or any other entity formed under the provisions of this chapter may correct a record filed with the Secretary of State with respect to the entity if the record contains an inaccurate description of an action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the entity must:

      (a) Prepare a certificate of correction which:

            (1) States the name of the entity;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by an officer of the entity or, if the certificate is filed before the first meeting of the board of directors, by an incorporator or director.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $25 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a nonprofit cooperative corporation, a cooperative association, a charitable organization or any other entity formed under the provisions of this chapter has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the nonprofit cooperative corporation, cooperative association, charitable organization or other entity may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 12.  NRS 82.183 is hereby amended to read as follows:

      82.183  1.  A corporation shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its owners of record; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the corporation shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a corporation to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a corporation fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the corporation to transact business in this State.

 


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ê2009 Statutes of Nevada, Page 2833 (Chapter 488, SB 55)ê

 

without limitation, the suspension or revocation of the right of the corporation to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a corporation to transact business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The corporation complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the corporation to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 13.  NRS 82.523 is hereby amended to read as follows:

      82.523  1.  Each foreign nonprofit corporation doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign nonprofit corporation with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The name of the foreign nonprofit corporation;

      (b) The file number of the foreign nonprofit corporation, if known;

      (c) The names and titles of the president, the secretary and the treasurer, or the equivalent thereof, and all the directors of the foreign nonprofit corporation;

      (d) The address, either residence or business, of the president, secretary and treasurer, or the equivalent thereof, and each director of the foreign nonprofit corporation;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of an officer of the foreign nonprofit corporation certifying that the list is true, complete and accurate.

      2.  Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign nonprofit corporation:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.

      3.  Upon filing the initial list and each annual list pursuant to this section, the foreign nonprofit corporation must pay to the Secretary of State a fee of $25.

      4.  The Secretary of State shall, 60 days before the last day for filing each annual list, [cause to be mailed] provide to each foreign nonprofit corporation which is required to comply with the provisions of NRS 82.523 to 82.5239, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign nonprofit corporation to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 82.523 to 82.5239, inclusive.

      5.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

 


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ê2009 Statutes of Nevada, Page 2834 (Chapter 488, SB 55)ê

 

      6.  An annual list for a foreign nonprofit corporation not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 14.  NRS 82.534 is hereby amended to read as follows:

      82.534  1.  A corporation may correct a record filed in the Office of the Secretary of State with respect to the corporation if the record contains an inaccurate description of a corporate action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the corporation must:

      (a) Prepare a certificate of correction which:

            (1) States the name of the corporation;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by an officer of the corporation or, if the certificate is filed before the first meeting of the board of directors, by an incorporator or director.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $25 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a corporation has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the corporation may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 15.  (Deleted by amendment.)

      Sec. 15.5.  Chapter 84 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2, no new corporation sole may be formed in this State on or after the effective date of section 56 of this act. A corporation sole formed pursuant to this chapter before the effective date of section 56 of this act may continue in existence until the corporation is dissolved or its charter is revoked. A corporation sole that has its charter revoked pursuant to NRS 84.140 may be reinstated as provided in NRS 84.150.

      2.  Until July 1, 2011, an archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent, other presiding officer or clergyman of a church or religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church or religious society or denomination, and in whom is vested the legal title to property held for the purposes, use or benefit of the church or religious society or denomination, may form a new corporation sole if such person:

 


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ê2009 Statutes of Nevada, Page 2835 (Chapter 488, SB 55)ê

 

      (a) Is affiliated with and subordinate to the authority of a superior corporation sole which is in good standing under the laws of this State; and

      (b) Provides a statement, executed under penalty of perjury, by the presiding officer of the superior corporation sole attesting to the affiliation and stating the name of the superior corporation sole, the name and title of the presiding officer of the superior corporation sole and the nature of the affiliation between the superior corporation sole and the subordinate corporation sole.

      Sec. 16.  NRS 84.009 is hereby amended to read as follows:

      84.009  1.  A corporation sole may correct a record filed with the Office of the Secretary of State with respect to the corporation sole if the record contains an inaccurate description of an action of the corporation sole or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the corporation sole must:

      (a) Prepare a certificate of correction which:

            (1) States the name of the corporation sole;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by an archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent or other presiding officer or clergyman of a church, religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church, religious society or denomination, and in whom is vested the legal title to the property held for the purpose, use or benefit of the church or religious society or denomination.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $25 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a corporation sole has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the corporation sole may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 16.2.  NRS 84.010 is hereby amended to read as follows:

      84.010  [Corporations] Subject to the provisions of section 15.5 of this act, corporations may be formed for acquiring, holding or disposing of church or religious society property, for the benefit of religion, for works of charity, and for public worship, in the manner provided in this chapter.

      Sec. 16.4.  NRS 84.010 is hereby amended to read as follows:

      84.010  [Subject to the provisions of section 15.5 of this act, corporations may be formed for acquiring, holding or disposing] The purpose of a corporation sole is to acquire, hold or dispose of church or religious society property, for the benefit of religion, for works of charity, and for public worship, in the manner provided in this chapter.

 


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ê2009 Statutes of Nevada, Page 2836 (Chapter 488, SB 55)ê

 

      Sec. 16.6.  NRS 84.020 is hereby amended to read as follows:

      84.020  [An] Subject to the provisions of section 15.5 of this act, an archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent, other presiding officer or clergyman of a church or religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church or religious society or denomination, and in whom is vested the legal title to property held for the purposes, use or benefit of the church or religious society or denomination, may make and sign written articles of incorporation [,] or amended articles of incorporation, in duplicate, and file one copy of the articles or amended articles in the Office of the Secretary of State and retain possession of the other.

      Sec. 16.8.  NRS 84.020 is hereby amended to read as follows:

      84.020  [Subject to the provisions of section 15.5 of this act, an] An archbishop, bishop, president, trustee in trust, president of stake, president of congregation, overseer, presiding elder, district superintendent, other presiding officer or clergyman of a church or religious society or denomination, who has been chosen, elected or appointed in conformity with the constitution, canons, rites, regulations or discipline of the church or religious society or denomination, and in whom is vested the legal title to property held for the purposes, use or benefit of the church or religious society or denomination, may [make and sign written articles of incorporation or amended] amend articles of incorporation, in [duplicate,] writing, and file one copy of the [articles or] amended articles in the Office of the Secretary of State and retain possession of the other.

      Sec. 17.  NRS 86.246 is hereby amended to read as follows:

      86.246  1.  In addition to any records required to be kept pursuant to NRS 86.241, a limited-liability company shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each member and manager; or

      (b) A statement indicating where such a list is maintained.

      2.  [A] Upon the request of the Secretary of State, the limited-liability company shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a limited-liability company to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a limited-liability company fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the charter of the limited-liability company.

 


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ê2009 Statutes of Nevada, Page 2837 (Chapter 488, SB 55)ê

 

      5.  The Secretary of State shall not reinstate or revive a charter that was revoked or suspended pursuant to subsection 4 unless:

      (a) The limited-liability company complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the charter.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 18.  NRS 86.263 is hereby amended to read as follows:

      86.263  1.  A limited-liability company shall, on or before the last day of the first month after the filing of its articles of organization with the Secretary of State, file with the Secretary of State, on a form furnished by him, a list that contains:

      (a) The name of the limited-liability company;

      (b) The file number of the limited-liability company, if known;

      (c) The names and titles of all of its managers or, if there is no manager, all of its managing members;

      (d) The address, either residence or business, of each manager or managing member listed, following the name of the manager or managing member;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a manager or managing member of the limited-liability company certifying that the list is true, complete and accurate.

      2.  The limited-liability company shall thereafter, on or before the last day of the month in which the anniversary date of its organization occurs, file with the Secretary of State, on a form furnished by him, an annual list containing all of the information required in subsection 1.

      3.  Each list required by subsections 1 and 2 must be accompanied by a declaration under penalty of perjury that the limited-liability company:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      4.  Upon filing:

      (a) The initial list required by subsection 1, the limited-liability company shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 2, the limited-liability company shall pay to the Secretary of State a fee of $125.

      5.  If a manager or managing member of a limited-liability company resigns and the resignation is not reflected on the annual or amended list of managers and managing members, the limited-liability company or the resigning manager or managing member shall pay to the Secretary of State a fee of $75 to file the resignation.

      6.  The Secretary of State shall, 90 days before the last day for filing each list required by subsection 2, [cause to be mailed] provide to each limited-liability company which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due under subsection 4 and a reminder to file [a] the list required by subsection 2. Failure of any company to receive a notice [or form] does not excuse it from the penalty imposed by law.

 


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ê2009 Statutes of Nevada, Page 2838 (Chapter 488, SB 55)ê

 

      7.  If the list to be filed pursuant to the provisions of subsection 1 or 2 is defective or the fee required by subsection 4 is not paid, the Secretary of State may return the list for correction or payment.

      8.  An annual list for a limited-liability company not in default received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year.

      Sec. 19.  (Deleted by amendment.)

      Sec. 20.  NRS 86.5461 is hereby amended to read as follows:

      86.5461  1.  Each foreign limited-liability company doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited-liability company with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list on a form furnished by him that contains:

      (a) The name of the foreign limited-liability company;

      (b) The file number of the foreign limited-liability company, if known;

      (c) The names and titles of all its managers or, if there is no manager, all its managing members;

      (d) The address, either residence or business, of each manager or managing member listed pursuant to paragraph (c);

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a manager or managing member of the foreign limited-liability company certifying that the list is true, complete and accurate.

      2.  Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited-liability company:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing with the Office of the Secretary of State.

      3.  Upon filing:

      (a) The initial list required by this section, the foreign limited-liability company shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by this section, the foreign limited-liability company shall pay to the Secretary of State a fee of $125.

      4.  If a manager or managing member of a foreign limited-liability company resigns and the resignation is not reflected on the annual or amended list of managers and managing members, the foreign limited-liability company or the resigning manager or managing member shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by this section, [cause to be mailed] provide to each foreign limited-liability company which is required to comply with the provisions of NRS 86.5461 to 86.5468, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign limited-liability company to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 86.5461 to 86.5468, inclusive.

 


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ê2009 Statutes of Nevada, Page 2839 (Chapter 488, SB 55)ê

 

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a foreign limited-liability company not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of this section for the year to which the due date is applicable.

      Sec. 21.  NRS 86.54615 is hereby amended to read as follows:

      86.54615  1.  A foreign limited-liability company shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each member and manager; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign limited-liability company shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign limited-liability company to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign limited-liability company fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the registration of the foreign limited-liability company.

      5.  The Secretary of State shall not reinstate or revive a registration that was revoked or suspended pursuant to subsection 4 unless:

      (a) The foreign limited-liability company complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the registration.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 22.  NRS 86.568 is hereby amended to read as follows:

      86.568  1.  A limited-liability company may correct a record filed in the Office of the Secretary of State with respect to the limited-liability company if the record contains an inaccurate description of a company action or was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the limited-liability company must:

      (a) Prepare a certificate of correction that:

            (1) States the name of the limited-liability company;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

 


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            (5) Is signed by a manager of the company or, if management is not vested in a manager, by a member of the company.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a limited-liability company has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the limited-liability company may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 23.  NRS 87.480 is hereby amended to read as follows:

      87.480  A registered limited-liability partnership must have a registered agent who resides or is located in this State. A registered agent must have a street address for the service of process that is the principal office of the registered limited-liability [company] partnership in this State, and may have a separate mailing address that is different from his street address.

      Sec. 24.  NRS 87.510 is hereby amended to read as follows:

      87.510  1.  A registered limited-liability partnership shall, on or before the last day of the first month after the filing of its certificate of registration with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of registration with the Secretary of State occurs, file with the Secretary of State, on a form furnished by him, a list that contains:

      (a) The name of the registered limited-liability partnership;

      (b) The file number of the registered limited-liability partnership, if known;

      (c) The names of all of its managing partners;

      (d) The address, either residence or business, of each managing partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a managing partner of the registered limited-liability partnership certifying that the list is true, complete and accurate.

Ê Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the registered limited-liability partnership has complied with the provisions of NRS 360.780, an acknowledgment that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      2.  Upon filing:

      (a) The initial list required by subsection 1, the registered limited-liability partnership shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, the registered limited-liability partnership shall pay to the Secretary of State a fee of $125.

      3.  If a managing partner of a registered limited-liability partnership resigns and the resignation is not reflected on the annual or amended list of managing partners, the registered limited-liability partnership or the resigning managing partner shall pay to the Secretary of State a fee of $75 to file the resignation.

 


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      4.  The Secretary of State shall, at least 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to the registered limited-liability partnership a notice of the fee due pursuant to subsection 2 and a reminder to file the annual list required by subsection 1. The failure of any registered limited-liability partnership to receive a notice [or form] does not excuse it from complying with the provisions of this section.

      5.  If the list to be filed pursuant to the provisions of subsection 1 is defective, or the fee required by subsection 2 is not paid, the Secretary of State may return the list for correction or payment.

      6.  An annual list that is filed by a registered limited-liability partnership which is not in default more than 90 days before it is due shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 25.  NRS 87.515 is hereby amended to read as follows:

      87.515  1.  A registered limited-liability partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its managing partners; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the registered limited-liability partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a registered limited-liability partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a registered limited-liability partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate of registration.

      5.  The Secretary of State shall not reinstate or revive a certificate of registration that was revoked or suspended pursuant to subsection 4 unless:

      (a) The registered limited-liability partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the certificate of registration.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 26.  NRS 87.541 is hereby amended to read as follows:

      87.541  1.  Each foreign registered limited-liability partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign registered limited-liability partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

 


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ê2009 Statutes of Nevada, Page 2842 (Chapter 488, SB 55)ê

 

qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The name of the foreign registered limited-liability partnership;

      (b) The file number of the foreign registered limited-liability partnership, if known;

      (c) The names of all its managing partners;

      (d) The address, either residence or business, of each managing partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a managing partner of the foreign registered limited-liability partnership certifying that the list is true, complete and accurate.

      2.  Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign registered limited-liability partnership:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      3.  Upon filing:

      (a) The initial list required by this section, the foreign registered limited-liability partnership shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by this section, the foreign registered limited-liability partnership shall pay to the Secretary of State a fee of $125.

      4.  If a managing partner of a foreign registered limited-liability partnership resigns and the resignation is not reflected on the annual or amended list of managing partners, the foreign registered limited-liability partnership or the managing partner shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each foreign registered limited-liability partnership which is required to comply with the provisions of NRS 87.541 to 87.544, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign registered limited-liability partnership to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 87.541 to 87.544, inclusive.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a foreign registered limited-liability partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 27.  NRS 87.5413 is hereby amended to read as follows:

      87.5413  1.  A foreign registered limited-liability partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its managing partners; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign registered limited-liability partnership shall:

 


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ê2009 Statutes of Nevada, Page 2843 (Chapter 488, SB 55)ê

 

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign registered limited-liability partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign registered limited-liability partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the foreign registered limited-liability partnership to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a foreign registered limited-liability partnership to transact business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The registered limited-liability partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the foreign registered limited-liability partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 28.  NRS 87.5435 is hereby amended to read as follows:

      87.5435  1.  Except as otherwise provided in subsections 3 and 4 and NRS 87.5413, the Secretary of State shall reinstate a foreign registered limited-liability partnership which has forfeited or which forfeits its right to transact business under the provisions of this chapter and shall restore to the foreign registered limited-liability partnership its right to transact business in this State, and to exercise its privileges and immunities, if it:

      (a) Files with the Secretary of State [the] :

            (1) The list required by NRS 87.541; and

            (2) The information required pursuant to NRS 77.310; and

      (b) Pays to the Secretary of State:

            (1) The filing fee and penalty set forth in NRS 87.541 and 87.5425 for each year or portion thereof that its right to transact business was forfeited; and

            (2) A fee of $300 for reinstatement.

      2.  When the Secretary of State reinstates the foreign registered limited-liability partnership, he shall issue to the foreign registered limited-liability partnership a certificate of reinstatement if the foreign registered limited-liability partnership:

      (a) Requests a certificate of reinstatement; and

      (b) Pays the required fees pursuant to NRS 87.550.

 


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ê2009 Statutes of Nevada, Page 2844 (Chapter 488, SB 55)ê

 

      3.  The Secretary of State shall not order a reinstatement unless all delinquent fees and penalties have been paid and the revocation of the right to transact business occurred only by reason of failure to pay the fees and penalties.

      4.  If the right of a foreign registered limited-liability partnership to transact business in this State has been forfeited pursuant to the provisions of this chapter and has remained forfeited for a period of 5 consecutive years, the right to transact business must not be reinstated.

      5.  Except as otherwise provided in NRS 87.544, a reinstatement pursuant to this section relates back to the date on which the foreign registered limited-liability partnership forfeited its right to transact business under the provisions of this chapter and reinstates the foreign registered limited-liability partnership’s right to transact business as if such right had at all times remained in full force and effect.

      Sec. 29.  NRS 87.547 is hereby amended to read as follows:

      87.547  1.  A registered limited-liability partnership may correct a record filed in the Office of the Secretary of State with respect to the registered limited-liability partnership if the record contains an inaccurate description of a partnership action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the registered limited-liability partnership must:

      (a) Prepare a certificate of correction that:

            (1) States the name of the registered limited-liability partnership;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by a managing partner of the registered limited-liability partnership.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a registered limited-liability partnership has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the registered limited-liability partnership may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 30.  NRS 87A.200 is hereby amended to read as follows:

      87A.200  1.  A limited partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

 


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ê2009 Statutes of Nevada, Page 2845 (Chapter 488, SB 55)ê

 

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the limited partnership to transact any business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a limited partnership to transact any business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the limited partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 31.  NRS 87A.275 is hereby amended to read as follows:

      87A.275  1.  A limited partnership or foreign limited partnership may correct a record filed in the Office of the Secretary of State with respect to the limited partnership or foreign limited partnership if the record contains false or erroneous information or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the limited partnership or foreign limited partnership must:

      (a) Prepare a certificate of correction that:

            (1) States the name of the limited partnership or foreign limited partnership;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the false or erroneous information or the defect;

            (4) Sets forth the false or erroneous information or the defective portion of the record in an accurate or corrected form; and

            (5) Is signed by a general partner of the limited partnership or foreign limited partnership.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction must not state a delayed effective date and is effective on the effective date of the record it corrects, except that the certificate is effective when filed:

      (a) For the purposes of subsections 3 and 4 of NRS 87A.150; and

      (b) As to persons relying on the uncorrected record and adversely affected by the correction.

      4.  If a limited partnership or foreign limited partnership has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the limited partnership or foreign limited partnership may cancel the filing by:

 


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ê2009 Statutes of Nevada, Page 2846 (Chapter 488, SB 55)ê

 

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

      Sec. 32.  NRS 87A.290 is hereby amended to read as follows:

      87A.290  1.  A limited partnership shall, on or before the last day of the first month after the filing of its certificate of limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs, file with the Secretary of State, on a form furnished by him, a list that contains:

      (a) The name of the limited partnership;

      (b) The file number of the limited partnership, if known;

      (c) The names of all of its general partners;

      (d) The address, either residence or business, of each general partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.

Ê Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the limited partnership has complied with the provisions of NRS 360.780 and which acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      2.  Except as otherwise provided in subsection 3, a limited partnership shall, upon filing:

      (a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.

      3.  A registered limited-liability limited partnership shall, upon filing:

      (a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.

      4.  If a general partner of a limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each limited partnership which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due pursuant to the provisions of subsection 2 or 3, as appropriate, and a reminder to file the annual list [.] required pursuant to subsection 1. Failure of any limited partnership to receive a notice [or form] does not excuse it from the penalty imposed by NRS 87A.300.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 2 or 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a limited partnership not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

 


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ê2009 Statutes of Nevada, Page 2847 (Chapter 488, SB 55)ê

 

      8.  A filing made pursuant to this section does not satisfy the provisions of NRS 87A.240 and may not be substituted for filings submitted pursuant to NRS 87A.240.

      Sec. 33.  (Deleted by amendment.)

      Sec. 34.  NRS 87A.560 is hereby amended to read as follows:

      87A.560  1.  Each foreign limited partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The name of the foreign limited partnership;

      (b) The file number of the foreign limited partnership, if known;

      (c) The names of all its general partners;

      (d) The address, either residence or business, of each general partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a general partner of the foreign limited partnership certifying that the list is true, complete and accurate.

      2.  Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited partnership:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      3.  Upon filing:

      (a) The initial list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.

      4.  If a general partner of a foreign limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the foreign limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation of the general partner.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each foreign limited partnership, which is required to comply with the provisions of NRS 87A.560 to 87A.600, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign limited partnership to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 87A.560 to 87A.600, inclusive.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a foreign limited partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

 


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ê2009 Statutes of Nevada, Page 2848 (Chapter 488, SB 55)ê

 

      Sec. 35.  NRS 87A.580 is hereby amended to read as follows:

      87A.580  1.  A foreign limited partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate authorizing the foreign limited partnership to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive a certificate authorizing a foreign limited partnership to transact business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The foreign limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the certificate authorizing the foreign limited partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 36.  NRS 87A.630 is hereby amended to read as follows:

      87A.630  1.  To become a registered limited-liability limited partnership, a limited partnership shall file with the Secretary of State a certificate of registration stating each of the following:

      (a) The name of the limited partnership.

      (b) The street address of its principal office.

      (c) The information required pursuant to NRS 77.310.

      (d) The name and business address of each organizer signing the certificate.

      (e) The name and business address of each initial general partner.

      (f) That the limited partnership thereafter will be a registered limited-liability limited partnership.

      (g) Any other information that the limited partnership wishes to include.

      2.  The certificate of registration must be signed by the vote necessary to amend the partnership agreement or, in the case of a partnership agreement that expressly considers contribution obligations, the vote necessary to amend those provisions.

 


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ê2009 Statutes of Nevada, Page 2849 (Chapter 488, SB 55)ê

 

      3.  The Secretary of State shall register as a registered limited-liability limited partnership any limited partnership that submits a completed certificate of registration with the required fee.

      4.  A partnership may register as a registered limited-liability limited partnership at the time it files a certificate of limited partnership by filing a combined certificate of limited partnership and limited-liability limited partnership with the Secretary of State and paying the fees prescribed in subsections 1 and 2 of NRS 87A.315.

      5.  The registration of a registered limited-liability limited partnership is effective on the later of the filing of the certificate of registration or a date specified in the certificate of registration.

      Sec. 37.  NRS 87A.640 is hereby amended to read as follows:

      87A.640  1.  A registered limited-liability limited partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the registered limited-liability limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a registered limited-liability limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a registered limited-liability limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate of registration.

      5.  The Secretary of State shall not reinstate or revive a certificate of registration that was revoked or suspended pursuant to subsection 4 unless:

      (a) The registered limited-liability limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the certificate of registration.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 38.  NRS 88.3355 is hereby amended to read as follows:

      88.3355  1.  A limited partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the limited partnership shall:

 


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      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the limited partnership to transact any business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a limited partnership to transact any business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the limited partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 39.  NRS 88.339 is hereby amended to read as follows:

      88.339  1.  A limited partnership may correct a record filed in the Office of the Secretary of State with respect to the limited partnership if the record contains an inaccurate description of a partnership action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the limited partnership must:

      (a) Prepare a certificate of correction that:

            (1) States the name of the limited partnership;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by a general partner of the limited partnership.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a limited partnership has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the limited partnership may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

 


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ê2009 Statutes of Nevada, Page 2851 (Chapter 488, SB 55)ê

 

      Sec. 40.  NRS 88.395 is hereby amended to read as follows:

      88.395  1.  A limited partnership shall, on or before the last day of the first month after the filing of its certificate of limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of limited partnership occurs, file with the Secretary of State, on a form furnished by him, a list that contains:

      (a) The name of the limited partnership;

      (b) The file number of the limited partnership, if known;

      (c) The names of all of its general partners;

      (d) The address, either residence or business, of each general partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a general partner of the limited partnership certifying that the list is true, complete and accurate.

Ê Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the limited partnership has complied with the provisions of NRS 360.780 and which acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      2.  Except as otherwise provided in subsection 3, a limited partnership shall, upon filing:

      (a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $125.

      3.  A registered limited-liability limited partnership shall, upon filing:

      (a) The initial list required by subsection 1, pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, pay to the Secretary of State a fee of $175.

      4.  If a general partner of a limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each limited partnership which is required to comply with the provisions of this section, and which has not become delinquent, a notice of the fee due pursuant to the provisions of subsection 2 or 3, as appropriate, and a reminder to file the annual list [.] required pursuant to subsection 1. Failure of any limited partnership to receive a notice [or form] does not excuse it from the penalty imposed by NRS 88.400.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 2 or 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a limited partnership not in default that is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      8.  A filing made pursuant to this section does not satisfy the provisions of NRS 88.355 and may not be substituted for filings submitted pursuant to NRS 88.355.

 


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ê2009 Statutes of Nevada, Page 2852 (Chapter 488, SB 55)ê

 

      Sec. 41.  (Deleted by amendment.)

      Sec. 42.  NRS 88.591 is hereby amended to read as follows:

      88.591  1.  Each foreign limited partnership doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign limited partnership with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The name of the foreign limited partnership;

      (b) The file number of the foreign limited partnership, if known;

      (c) The names of all its general partners;

      (d) The address, either residence or business, of each general partner;

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a general partner of the foreign limited partnership certifying that the list is true, complete and accurate.

      2.  Each list filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign limited partnership:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      3.  Upon filing:

      (a) The initial list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by this section, the foreign limited partnership shall pay to the Secretary of State a fee of $125.

      4.  If a general partner of a foreign limited partnership resigns and the resignation is not reflected on the annual or amended list of general partners, the foreign limited partnership or the resigning general partner shall pay to the Secretary of State a fee of $75 to file the resignation of the general partner.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each foreign limited partnership, which is required to comply with the provisions of NRS 88.591 to 88.5945, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign limited partnership to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 88.591 to 88.5945, inclusive.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a foreign limited partnership not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 43.  NRS 88.5927 is hereby amended to read as follows:

      88.5927  1.  A foreign limited partnership shall maintain at its registered office or principal place of business in this State:

 


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ê2009 Statutes of Nevada, Page 2853 (Chapter 488, SB 55)ê

 

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate authorizing the foreign limited partnership to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive a certificate authorizing a foreign limited partnership to transact business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The foreign limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the certificate authorizing the foreign limited partnership to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 44.  NRS 88.606 is hereby amended to read as follows:

      88.606  1.  To become a registered limited-liability limited partnership, a limited partnership shall file with the Secretary of State a certificate of registration stating each of the following:

      (a) The name of the limited partnership.

      (b) The street address of its principal office.

      (c) The information required pursuant to NRS 77.310.

      (d) The name and business address of each organizer signing the certificate.

      (e) The name and business address of each initial general partner.

      (f) That the limited partnership thereafter will be a registered limited-liability limited partnership.

      (g) Any other information that the limited partnership wishes to include.

      2.  The certificate of registration must be signed by the vote necessary to amend the partnership agreement or, in the case of a partnership agreement that expressly considers contribution obligations, the vote necessary to amend those provisions.

      3.  The Secretary of State shall register as a registered limited-liability limited partnership any limited partnership that submits a completed certificate of registration with the required fee.

 


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ê2009 Statutes of Nevada, Page 2854 (Chapter 488, SB 55)ê

 

      4.  A partnership may register as a registered limited-liability limited partnership at the time of filing its certificate of limited partnership by filing a combined certificate of limited partnership and limited-liability limited partnership with the Secretary of State and paying the fees required pursuant to subsections 1 and 2 of NRS 88.415.

      5.  The registration of a registered limited-liability limited partnership is effective at the time of the filing of the certificate of registration.

      Sec. 45.  NRS 88.6067 is hereby amended to read as follows:

      88.6067  1.  A registered limited-liability limited partnership shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each general partner; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the registered limited-liability limited partnership shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a registered limited-liability limited partnership to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a registered limited-liability limited partnership fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate of registration.

      5.  The Secretary of State shall not reinstate or revive a certificate of registration that was revoked or suspended pursuant to subsection 4 unless:

      (a) The registered limited-liability limited partnership complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the certificate of registration.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 46.  NRS 88A.345 is hereby amended to read as follows:

      88A.345  1.  [A] Upon the request of the Secretary of State, a business trust shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the ledger, duplicate ledger or statement described in subsection 1 of NRS 88A.340. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the ledger, duplicate ledger or statement described in subsection 1 of NRS 88A.340.

      2.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a business trust to:

 


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ê2009 Statutes of Nevada, Page 2855 (Chapter 488, SB 55)ê

 

      (a) Submit to the Secretary of State, within 3 business days, a copy of the ledger, duplicate ledger or statement required to be maintained pursuant to subsection 1 of NRS 88A.340; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      3.  If a business trust fails to comply with any requirement pursuant to subsection 2, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the certificate of trust.

      4.  The Secretary of State shall not reinstate or revive a certificate of trust that was revoked or suspended pursuant to subsection 3 unless:

      (a) The business trust complies with the requirements of subsection 2; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the business trust.

      5.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 47.  NRS 88A.600 is hereby amended to read as follows:

      88A.600  1.  A business trust formed pursuant to this chapter shall, on or before the last day of the first month after the filing of its certificate of trust with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of the filing of its certificate of trust with the Secretary of State occurs, file with the Secretary of State, on a form furnished by him, a list signed by at least one trustee that contains the name and street address of at least one trustee and the information required pursuant to NRS 77.310. Each list filed pursuant to this subsection must be accompanied by a declaration under penalty of perjury that the business trust:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330, it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      2.  Upon filing:

      (a) The initial list required by subsection 1, the business trust shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by subsection 1, the business trust shall pay to the Secretary of State a fee of $125.

      3.  If a trustee of a business trust resigns and the resignation is not reflected on the annual or amended list of trustees, the business trust or the resigning trustee shall pay to the Secretary of State a fee of $75 to file the resignation.

      4.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each business trust which is required to comply with the provisions of NRS 88A.600 to 88A.660, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 2 and a reminder to file the list required pursuant to subsection 1. Failure of a business trust to receive [the forms] a notice does not excuse it from the penalty imposed by law.

      5.  An annual list for a business trust not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year.

      Sec. 48.  NRS 88A.732 is hereby amended to read as follows:

      88A.732  1.  Each foreign business trust doing business in this State shall, on or before the last day of the first month after the filing of its application for registration as a foreign business trust with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

 


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ê2009 Statutes of Nevada, Page 2856 (Chapter 488, SB 55)ê

 

application for registration as a foreign business trust with the Secretary of State, and annually thereafter on or before the last day of the month in which the anniversary date of its qualification to do business in this State occurs in each year, file with the Secretary of State a list, on a form furnished by him, that contains:

      (a) The name of the foreign business trust;

      (b) The file number of the foreign business trust, if known;

      (c) The name of at least one of its trustees;

      (d) The address, either residence or business, of the trustee listed pursuant to paragraph (c);

      (e) The information required pursuant to NRS 77.310; and

      (f) The signature of a trustee of the foreign business trust certifying that the list is true, complete and accurate.

      2.  Each list required to be filed pursuant to this section must be accompanied by a declaration under penalty of perjury that the foreign business trust:

      (a) Has complied with the provisions of NRS 360.780; and

      (b) Acknowledges that pursuant to NRS 239.330 , it is a category C felony to knowingly offer any false or forged instrument for filing in the Office of the Secretary of State.

      3.  Upon filing:

      (a) The initial list required by this section, the foreign business trust shall pay to the Secretary of State a fee of $125.

      (b) Each annual list required by this section, the foreign business trust shall pay to the Secretary of State a fee of $125.

      4.  If a trustee of a foreign business trust resigns and the resignation is not reflected on the annual or amended list of trustees, the foreign business trust or the resigning trustee shall pay to the Secretary of State a fee of $75 to file the resignation.

      5.  The Secretary of State shall, 90 days before the last day for filing each annual list required by subsection 1, [cause to be mailed] provide to each foreign business trust which is required to comply with the provisions of NRS 88A.732 to 88A.738, inclusive, and which has not become delinquent, [the blank forms to be completed and filed with him.] a notice of the fee due pursuant to subsection 3 and a reminder to file the list required pursuant to subsection 1. Failure of any foreign business trust to receive [the forms] a notice does not excuse it from the penalty imposed by the provisions of NRS 88A.732 to 88A.738, inclusive.

      6.  If the list to be filed pursuant to the provisions of subsection 1 is defective or the fee required by subsection 3 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a foreign business trust not in default which is received by the Secretary of State more than 90 days before its due date shall be deemed an amended list for the previous year and does not satisfy the requirements of subsection 1 for the year to which the due date is applicable.

      Sec. 49.  NRS 88A.7345 is hereby amended to read as follows:

      88A.7345  1.  A foreign business trust shall maintain at its registered office:

      (a) A current list of its beneficial owners; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the foreign business trust shall:

 


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ê2009 Statutes of Nevada, Page 2857 (Chapter 488, SB 55)ê

 

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a foreign business trust to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a foreign business trust fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the right of the foreign business trust to transact business in this State.

      5.  The Secretary of State shall not reinstate or revive the right of a foreign business trust to transact business in this State that was revoked or suspended pursuant to subsection 4 unless:

      (a) The foreign business trust complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the right of the foreign business trust to transact business in this State.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 50.  NRS 88A.930 is hereby amended to read as follows:

      88A.930  1.  A business trust may correct a record filed in the Office of the Secretary of State with respect to the business trust if the record contains an inaccurate description of a trust action or if the record was defectively signed, attested, sealed, verified or acknowledged.

      2.  To correct a record, the business trust must:

      (a) Prepare a certificate of correction that:

            (1) States the name of the business trust;

            (2) Describes the record, including, without limitation, its filing date;

            (3) Specifies the inaccuracy or defect;

            (4) Sets forth the inaccurate or defective portion of the record in an accurate or corrected form; and

            (5) Is signed by a trustee of the business trust.

      (b) Deliver the certificate to the Secretary of State for filing.

      (c) Pay a filing fee of $175 to the Secretary of State.

      3.  A certificate of correction is effective on the effective date of the record it corrects except as to persons relying on the uncorrected record and adversely affected by the correction. As to those persons, the certificate is effective when filed.

      4.  If a business trust has made a filing with the Secretary of State and the Secretary of State has not processed the filing and placed the filing into the public record, the business trust may cancel the filing by:

      (a) Filing a statement of cancellation with the Secretary of State; and

      (b) Paying a fee of $50.

 


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ê2009 Statutes of Nevada, Page 2858 (Chapter 488, SB 55)ê

 

      Sec. 51.  NRS 89.045 is hereby amended to read as follows:

      89.045  1.  A professional entity shall maintain at its registered office or principal place of business in this State:

      (a) A current list of its owners of record; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the professional entity shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a professional entity to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

      4.  If a professional entity fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the corporate charter.

      5.  The Secretary of State shall not reinstate or revive a charter that was revoked or suspended pursuant to subsection 4 unless:

      (a) The professional entity complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the corporate charter.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 52.  NRS 89.251 is hereby amended to read as follows:

      89.251  1.  A professional association shall maintain at its registered office or principal place of business in this State:

      (a) A current list of each member; or

      (b) A statement indicating where such a list is maintained.

      2.  [The] Upon the request of the Secretary of State, the professional association shall:

      (a) Provide the Secretary of State with the name and contact information of the custodian of the list described in subsection 1. The information required pursuant to this paragraph shall be kept confidential by the Secretary of State.

      (b) Provide written notice to the Secretary of State within 10 days after any change in the information contained in the list described in subsection 1.

      3.  Upon the request of any law enforcement agency in the course of a criminal investigation, the Secretary of State may require a professional association to:

      (a) Submit to the Secretary of State, within 3 business days, a copy of the list required to be maintained pursuant to subsection 1; or

      (b) Answer any interrogatory submitted by the Secretary of State that will assist in the criminal investigation.

 


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ê2009 Statutes of Nevada, Page 2859 (Chapter 488, SB 55)ê

 

      4.  If a professional association fails to comply with any requirement pursuant to subsection 3, the Secretary of State may take any action necessary, including, without limitation, the suspension or revocation of the articles of association.

      5.  The Secretary of State shall not reinstate or revive articles of association that were revoked or suspended pursuant to subsection 4 unless:

      (a) The professional association complies with the requirements of subsection 3; or

      (b) The law enforcement agency conducting the investigation advises the Secretary of State to reinstate or revive the articles of association.

      6.  The Secretary of State may adopt regulations to administer the provisions of this section.

      Sec. 53.  Chapter 92A of NRS is hereby amended by adding thereto a new section to read as follows:

      If an entity has made a filing with the Secretary of State pursuant to this chapter and the Secretary of State has not processed the filing and placed the filing into the public record, the entity may cancel the filing by:

      1.  Filing a statement of cancellation with the Secretary of State; and

      2.  Paying a fee of $50.

      Sec. 53.5.  NRS 92A.270 is hereby amended to read as follows:

      92A.270  1.  Any undomesticated organization may become domesticated in this State as a domestic entity by:

      (a) Paying to the Secretary of State the fees required pursuant to this title for filing the charter document; and

      (b) Filing with the Secretary of State:

            (1) Articles of domestication which must be signed by an authorized representative of the undomesticated organization approved in compliance with subsection 6;

            (2) The appropriate charter document for the type of domestic entity; [and]

            (3) The information required pursuant to NRS 77.310 [.] ;

            (4) A certified copy of the charter document of the undomesticated organization; and

            (5) A certificate of good standing, or the equivalent, from the jurisdiction where the undomesticated organization was chartered immediately before filing the articles of domestication pursuant to subparagraph (1).

      2.  The articles of domestication must set forth the:

      (a) Date when and the jurisdiction where the undomesticated organization was first formed, incorporated, organized or otherwise created [;] and, if applicable, any date when and jurisdiction where the undomesticated organization was chartered after its formation;

      (b) Name of the undomesticated organization immediately before filing the articles of domestication;

      (c) Name and type of domestic entity as set forth in its charter document pursuant to subsection 1; and

      (d) Jurisdiction that constituted the principal place of business or central administration of the undomesticated organization, or any other equivalent thereto pursuant to applicable law [,

Ê] immediately before filing the articles of domestication.

      3.  Upon filing the articles of domestication and the charter document with the Secretary of State, and the payment of the requisite fee for filing the charter document of the domestic entity, the undomesticated organization is domesticated in this State as the domestic entity described in the charter document filed pursuant to subsection 1.

 


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ê2009 Statutes of Nevada, Page 2860 (Chapter 488, SB 55)ê

 

charter document of the domestic entity, the undomesticated organization is domesticated in this State as the domestic entity described in the charter document filed pursuant to subsection 1. The existence of the domestic entity begins on the date the undomesticated organization began its existence in the jurisdiction in which the undomesticated organization was first formed, incorporated, organized or otherwise created.

      4.  The domestication of any undomesticated organization does not affect any obligations or liabilities of the undomesticated organization incurred before its domestication.

      5.  The filing of the charter document of the domestic entity pursuant to subsection 1 does not affect the choice of law applicable to the undomesticated organization. From the date the charter document of the domestic entity is filed, the law of this State applies to the domestic entity to the same extent as if the undomesticated organization was organized and created as a domestic entity on that date.

      6.  Before filing articles of domestication, the domestication must be approved in the manner required by:

      (a) The document, instrument, agreement or other writing governing the internal affairs of the undomesticated organization and the conduct of its business; and

      (b) Applicable foreign law.

      7.  When a domestication becomes effective, all rights, privileges and powers of the undomesticated organization, all property owned by the undomesticated organization, all debts due to the undomesticated organization, and all causes of action belonging to the undomesticated organization are vested in the domestic entity and become the property of the domestic entity to the same extent as vested in the undomesticated organization immediately before domestication. The title to any real property vested by deed or otherwise in the undomesticated organization is not reverted or impaired by the domestication. All rights of creditors and all liens upon any property of the undomesticated organization are preserved unimpaired and all debts, liabilities and duties of an undomesticated organization that has been domesticated attach to the domestic entity resulting from the domestication and may be enforced against it to the same extent as if the debts, liability and duties had been incurred or contracted by the domestic entity.

      8.  When an undomesticated organization is domesticated, the domestic entity resulting from the domestication is for all purposes deemed to be the same entity as the undomesticated organization. Unless otherwise agreed by the owners of the undomesticated organization or as required pursuant to applicable foreign law, the domestic entity resulting from the domestication is not required to wind up its affairs, pay its liabilities or distribute its assets. The domestication of an undomesticated organization does not constitute the dissolution of the undomesticated organization. The domestication constitutes a continuation of the existence of the undomesticated organization in the form of a domestic entity. If, following domestication, an undomesticated organization that has become domesticated pursuant to this section continues its existence in the foreign country or foreign jurisdiction in which it was existing immediately before the domestication, the domestic entity and the undomesticated organization are for all purposes a single entity formed, incorporated, organized or otherwise created and existing pursuant to the laws of this State and the laws of the foreign country or other foreign jurisdiction.

 


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ê2009 Statutes of Nevada, Page 2861 (Chapter 488, SB 55)ê

 

formed, incorporated, organized or otherwise created and existing pursuant to the laws of this State and the laws of the foreign country or other foreign jurisdiction.

      9.  The owner liability of an undomesticated organization that is domesticated in this State:

      (a) Is not discharged, pursuant to the laws of the previous jurisdiction of the organization, to the extent the owner liability arose before the effective date of the articles of domestication;

      (b) Does not attach, pursuant to the laws of the previous jurisdiction of the organization, to any debt, obligation or liability of the organization that arises after the effective date of the articles of domestication;

      (c) Is governed by the law of the previous jurisdiction of the organization, as if the domestication has not occurred, for the collection or discharge of owner liability not discharged pursuant to paragraph (a);

      (d) Is subject to the right of contribution from any other shareholder, member, trustee, partner, limited partner or other owner of the undomesticated organization pursuant to the laws of the previous jurisdiction of the organization, as if the domestication has not occurred, for the collection or discharge of owner liability not discharged pursuant to paragraph (a); and

      (e) Applies only to the debts, obligations or liabilities of the organization that arise after the effective date of the articles of domestication if the owner becomes subject to owner liability or some or all of the debts, obligations or liabilities of the undomesticated entity as a result of its domestication in this State.

      10.  As used in this section [, “undomesticated] :

      (a) “Owner liability” means the liability of a shareholder, member, trustee, partner, limited partner or other owner of an organization for debts of the organization, including the responsibility to make additional capital contributions to cover such debts.

      (b) “Undomesticated organization” means any incorporated organization, private law corporation, whether or not organized for business purposes, public law corporation, general partnership, registered limited-liability partnership, limited partnership or registered limited-liability limited partnership, proprietorship, joint venture, foundation, business trust, real estate investment trust, common-law trust or any other unincorporated business formed, organized, created or the internal affairs of which are governed by the laws of any foreign country or jurisdiction other than [the United States, the District of Columbia or another state, territory, possession, commonwealth or dependency of the United States.] this State.

      Secs. 54 and 55.  (Deleted by amendment.)

      Sec. 55.5.  NRS 84.006 is hereby repealed.

      Sec. 56.  1.  This section and sections 15.5, 16.2, 16.6 and 55.5 of this act become effective upon passage and approval.

      2.  Sections 1 to 14, inclusive, 16 and 17 to 53.5, inclusive, of this act become effective on July 1, 2009.

      3.  Sections 16.4 and 16.8 of this act become effective on July 1, 2011.

      4.  Sections 16.2 and 16.6 of this act expire by limitation on June 30, 2011.

________

 


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ê2009 Statutes of Nevada, Page 2862ê

 

CHAPTER 489, SB 68

Senate Bill No. 68–Senator Schneider

 

CHAPTER 489

 

AN ACT relating to real property; establishing the responsibility for the maintenance of certain security walls within certain common-interest communities; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Section 1 of this bill revises the responsibilities of unit-owners’ associations of certain common-interest communities to provide that each such association is responsible for the maintenance, repair, restoration and replacement of any security wall which is located within the common-interest community, unless the governing documents provide otherwise. Section 2 of this bill similarly revises the law with respect to such security walls located in such common-interest communities which are governed by certain limited-purpose associations. (NRS 116.1201) Section 6 of this bill provides that if a common-interest community was created before October 1, 2009, the requirements of the bill do not apply to the common-interest community until January 1, 2013, unless the governing documents provide that the association is responsible for the maintenance, repair, restoration and replacement of the security wall.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 116 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except as otherwise provided in subsection 2 and NRS 116.31135, the association is responsible for the maintenance, repair, restoration and replacement of any security wall which is located within the common-interest community.

      2.  The provisions of this section do not apply if the governing documents provide that a unit’s owner or an entity other than the association is responsible for the maintenance, repair, restoration and replacement of the security wall.

      3.  For the purpose of carrying out the maintenance, repair, restoration and replacement of a security wall pursuant to this section:

      (a) The association, the members of its executive board and its officers, employees, agents and community manager may enter the grounds of a unit after providing written notice and, notwithstanding any other provision of law, are not liable for trespass.

      (b) Any such maintenance, repair, restoration and replacement of a security wall must be performed:

            (1) During normal business hours;

            (2) Within a reasonable length of time; and

            (3) In a manner that does not adversely affect access to a unit or the legal rights of a unit’s owner to enjoy the use of his unit.

      (c) Notwithstanding any other provision of law, the executive board is prohibited from imposing an assessment without obtaining prior approval of the units’ owners unless the total amount of the assessment is less than 5 percent of the annual budget of the association.

 


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ê2009 Statutes of Nevada, Page 2863 (Chapter 489, SB 68)ê

 

      4.  As used in this section, “security wall” means any wall composed of stone, brick, concrete, concrete blocks, masonry or similar building material, including, without limitation, ornamental iron or other fencing material, together with footings, pilasters, outriggers, grillwork, gates and other appurtenances, constructed around the perimeter of a residential subdivision with respect to which a final map has been recorded pursuant to NRS 278.360 to 278.460, inclusive, to protect the several tracts in the subdivision and their occupants from vandalism.

      Sec. 2.  NRS 116.1201 is hereby amended to read as follows:

      116.1201  1.  Except as otherwise provided in this section and NRS 116.1203, this chapter applies to all common-interest communities created within this State.

      2.  This chapter does not apply to:

      (a) A limited-purpose association, except that a limited-purpose association:

            (1) Shall pay the fees required pursuant to NRS 116.31155;

            (2) Shall register with the Ombudsman pursuant to NRS 116.31158;

            (3) Shall comply with the provisions of:

                  (I) NRS 116.31038, 116.31083 and 116.31152; [and]

                  (II) Section 1 of this act, if the limited-purpose association is created for maintaining the landscape of the common elements of the common-interest community; and

                  (III) NRS 116.31075, if the limited-purpose association is created for a rural agricultural residential common-interest community;

            (4) Shall comply with the provisions of NRS 116.4101 to 116.412, inclusive, as required by the regulations adopted by the Commission pursuant to paragraph (b) of subsection 5; and

            (5) Shall not enforce any restrictions concerning the use of units by the units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

      (b) A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter does apply to that planned community. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted only if the declaration so provides or if the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.

      (c) Common-interest communities or units located outside of this State, but the provisions of NRS 116.4102 to 116.4108, inclusive, apply to all contracts for the disposition thereof signed in this State by any party unless exempt under subsection 2 of NRS 116.4101.

      (d) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than 50,000, and has less than 50 percent of the units within the community put to residential use, unless a majority of the units’ owners otherwise elect in writing.

      (e) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.

      3.  The provisions of this chapter do not:

      (a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units’ owners;

 


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ê2009 Statutes of Nevada, Page 2864 (Chapter 489, SB 68)ê

 

      (b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;

      (c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992; or

      (d) Prohibit a common-interest community created before January 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of government.

      4.  The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities.

      5.  The Commission shall establish, by regulation:

      (a) The criteria for determining whether an association, a limited-purpose association or a common-interest community satisfies the requirements for an exemption or limited exemption from any provision of this chapter; and

      (b) The extent to which a limited-purpose association must comply with the provisions of NRS 116.4101 to 116.412, inclusive.

      6.  As used in this section, “limited-purpose association” means an association that:

      (a) Is created for the limited purpose of maintaining:

            (1) The landscape of the common elements of a common-interest community;

            (2) Facilities for flood control; or

            (3) A rural agricultural residential common-interest community; and

      (b) Is not authorized by its governing documents to enforce any restrictions concerning the use of units by units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

      Sec. 3.  NRS 116.1203 is hereby amended to read as follows:

      116.1203  1.  Except as otherwise provided in subsection 2, if a planned community contains no more than 12 units and is not subject to any developmental rights, it is subject only to NRS 116.1106 and 116.1107 unless the declaration provides that this entire chapter is applicable.

      2.  Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138, the provisions of NRS 116.3101 to 116.350, inclusive, and section 1 of this act, and the definitions set forth in NRS 116.005 to 116.095, inclusive, to the extent that such definitions are necessary in construing any of those provisions, apply to a residential planned community containing more than six units.

      Secs. 4 and 5.  (Deleted by amendment.)

      Sec. 6.  Notwithstanding the amendatory provisions of this act, if a common-interest community was created before October 1, 2009, the amendatory provisions of this act do not apply to the common-interest community until January 1, 2013, unless the governing documents provide that the association is responsible for the maintenance, repair, restoration and replacement of the security wall.

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ê2009 Statutes of Nevada, Page 2865ê

 

CHAPTER 490, SB 152

Senate Bill No. 152–Senators Horsford, Schneider, Carlton, Breeden, Wiener; Copening and Woodhouse

 

Joint Sponsors: Assemblymen Buckley, Oceguera, Conklin, Kirkpatrick, Bobzien; and Leslie

 

CHAPTER 490

 

AN ACT relating to energy; providing for the training of persons to perform jobs which promote energy efficiency; requiring governmental entities to perform certain functions to promote energy efficiency; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      This bill provides for the use of the incentives contained in the recently signed federal American Recovery and Reinvestment Act of 2009 to provide job training, the promotion of energy efficiency and the promotion of the use of renewable energy in Nevada. Sections 9 and 10 of this bill seek to take advantage of those incentives by providing specific training to persons in this State, establishing projects that will require the skills for which those persons are trained and providing for the employment of those persons. Section 9 requires the Department of Employment, Training and Rehabilitation and the Housing Division of the Department of Business and Industry to establish contractual relationships with nonprofit collaboratives to provide training in the fields of energy efficiency and renewable energy, including training in the areas of weatherization, energy retrofit applications and performing energy audits. Within the limits of available money, the collaboratives will carry out programs for job training and provide apprenticeship programs in specific energy-related fields. Within the limits of money available, the Housing Division is required to contract with the nonprofit collaboratives, governmental entities, community action agencies and other nonprofit corporations to identify neighborhoods that will qualify for funding for residential weatherization projects and award contracts for projects to promote energy efficiency through residential weatherization. Such contracts awarded must provide for employing the persons trained by the nonprofit collaborative for this purpose, paying those employees prevailing wages and offering the employees and their dependents health care insurance.

      Section 10 of this bill requires the State Public Works Board, the board of trustees of each school district and the Board of Regents of the University of Nevada, within 90 days after the effective date of this bill, to each establish projects to weatherize and retrofit public buildings, facilities and structures in this State, including without limitation, traffic-control systems, and to otherwise use sources of renewable energy to serve those buildings, facilities and structures. Section 10 further sets forth criteria for prioritizing those projects. Those entities are further required to enter into contracts for the projects as soon as practicable. Such contracts are required to provide that employees of the contractors and subcontractors on the project be paid prevailing wages, that the contractor or subcontractor employ a certain number of employees trained by a nonprofit cooperative and pay them prevailing wages and that the contractor offer employees on the project and their dependents health care insurance.

      Section 11 of this bill provides that within the limits of money available, the State Public Works Board and the Division of State Parks of the State Department of Conservation and Natural Resources shall conduct studies to determine the feasibility of carrying out certain projects for providing alternative sources of energy in this State.

 


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ê2009 Statutes of Nevada, Page 2866 (Chapter 490, SB 152)ê

 

      Section 12 of this bill requires the Labor Commissioner to adopt the job classifications and wage rates established by the Federal Government for certain jobs relating to residential weatherization and to enforce those job classifications and wage rates in the same manner that he enforces the labor laws and regulations of this State generally.

      Section 13 of this bill requires the Office of Energy within the Office of the Governor, the Department of Employment, Training and Rehabilitation and the Housing Division of the Department of Business and Industry to report to the Interim Finance Committee concerning the application for and acceptance and expenditure of any money available to the State to carry out the purposes of this bill pursuant to the American Recovery and Reinvestment Act of 2009, Public Law 111-5.

 

 

      Whereas, The unemployment rate in the State of Nevada is currently 9.1 percent and is expected to reach 11.4 percent sometime during 2009; and

      Whereas, Many of Nevada’s 128,000 unemployed residents have lost jobs in the construction and service sectors as the construction industry has faltered as a result of the mortgage foreclosure crisis and as the service industry, including gaming and tourism, has faltered as a result of the curtailment of discretionary spending on a national level; and

      Whereas, One of the most effective methods of returning unemployed Nevadans to work is to create “green jobs” by developing new industries in this State in a manner that takes advantage of incentives offered by the Federal Government for job training, the promotion of energy efficiency and the promotion of the use of renewable energy; and

      Whereas, An immediate step which may be taken to put Nevadans back to work is to coordinate job training with programs for weatherization and energy efficiency that are part of the recently enacted federal economic stimulus package; and

      Whereas, In such a manner, unemployed Nevadans may learn new skills in fields such as energy auditing and the installation of energy efficient equipment and improvements, and then go to work performing such tasks as performing energy audits, weatherizing homes, retrofitting public buildings, helping lower-income Nevadans to save on their utility bills, and reducing energy costs for schools, government buildings and other public facilities; and

      Whereas, The performance of energy audits is a critical component of ensuring that the weatherization of homes results in meaningful reductions in energy costs to Nevadans; and

      Whereas, The average energy auditor can perform 500 energy audits of residences per year; and

      Whereas, The money available through the recently enacted federal economic stimulus package can be used to ensure that many Nevadans are trained in the skills necessary to perform energy audits thereby resulting in the performance of many thousands of energy audits of residences in Nevada; and

      Whereas, The Green Jobs Initiative can be accomplished through a public-private partnership that combines the resources of state agencies, local housing authorities, institutions of higher education, joint labor-management partnerships, apprenticeship programs and private contractors under the “umbrella” of a nonprofit collaborative; and

 


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ê2009 Statutes of Nevada, Page 2867 (Chapter 490, SB 152)ê

 

      Whereas, The Green Jobs Initiative would function to establish programs to provide job training and outreach for the weatherization and retrofitting of buildings and facilities in northern Nevada, southern Nevada and rural Nevada; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 701B of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.

      Sec. 2.  Sections 2 to 10, inclusive, of this act may be cited as the Green Jobs Initiative.

      Sec. 3.  As used in sections 2 to 10, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4 to 8, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 4.  “Department” means the Department of Employment, Training and Rehabilitation.

      Sec. 5.  “Division” means the Housing Division of the Department of Business and Industry.

      Sec. 6.  1.  “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation:

      (a) Biomass;

      (b) Fuel cells;

      (c) Geothermal energy;

      (d) Solar energy;

      (e) Waste heat;

      (f) Waterpower; and

      (g) Wind.

      2.  The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

      Sec. 7.  “Retrofitting” means the alteration, improvement, modification, remodeling or renovation of a building, facility, residence or structure to make that building, facility, residence or structure more energy efficient.

      Sec. 8.  “Weatherization” means materials or measures, and their installation, that are used to improve the thermal efficiency of a building, facility, residence or structure.

      Sec. 9.  1.  The Department of Employment, Training and Rehabilitation and the Housing Division of the Department of Business and Industry shall establish contractual relationships with one or more nonprofit collaboratives to carry out the State’s mission of creating new jobs in the fields of energy efficiency and renewable energy by combining job training with weatherization, energy retrofit applications or the development of renewable energy plants.

      2.  To qualify as a nonprofit collaborative for the purposes of this section, a nonprofit entity:

      (a) Must enter into a written agreement relating to job training and career development activities with:

            (1) A labor management agency or other affiliated agency which has established an apprenticeship program that is registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS; and

            (2) A community college or another institution of higher education; and

 


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ê2009 Statutes of Nevada, Page 2868 (Chapter 490, SB 152)ê

 

      (b) Must conduct or have the ability to conduct training programs in at least one of the three geographic regions of this State, including southern Nevada, northern Nevada and rural Nevada.

Ê Such a nonprofit entity may also enter into a written agreement relating to job training and career development activities with a trade association which has an accredited job skills training program.

      3.  Within the limits of money available to the Department for this purpose, the Department shall contract with one or more qualified nonprofit collaboratives to:

      (a) Carry out programs for job training in fields relating to energy efficiency and the use of renewable energy.

      (b) In concert with a labor management agency or other affiliated agency which has established an apprenticeship program that is registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS, develop apprenticeship programs to train laborers in skills related to:

            (1) The implementation of energy efficiency measures.

            (2) The use of renewable energy.

            (3) Performing audits of the energy efficiency of buildings, facilities, residences and structures.

            (4) The weatherization of buildings, facilities, residences and structures.

            (5) The retrofitting of buildings, facilities, residences and structures.

            (6) The construction and operation of centralized renewable energy plants.

            (7) The manufacturing of components relating to work performed pursuant to subparagraphs (1) to (6), inclusive.

      4.  The job training described in subsection 3 must be sufficiently detailed to allow workers, as applicable, to perform:

      (a) The services set forth in NRS 702.270.

      (b) The services set forth in NRS 618.910 to 618.936, inclusive.

      (c) Such other vocational or professional services, or both, as the Department deems appropriate.

      5.  Funding provided for the job training described in subsection 3:

      (a) Must, to the extent money is available for the purpose, include the cost of tuition and supplies.

      (b) May include a cost-of-living stipend which may or may not be in addition to any available unemployment compensation.

      6.  Within the limits of money available to the Division for the purpose, the Division shall contract with one or more governmental entities, community action agencies or nonprofit organizations, including, without limitation, qualified nonprofit collaboratives, to:

      (a) Identify, in different regions of the State, neighborhoods that will qualify for funding for residential weatherization projects pursuant to federal programs focusing on residential weatherization; and

      (b) Issue requests for proposals for contractors and award contracts for projects to promote energy efficiency through weatherization. Any such requests for proposals and contracts must include, without limitation:

            (1) Provisions stipulating that all employees of the outside contractors who work on the project must be paid prevailing wages;

            (2) Provisions requiring that each outside contractor:

 


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ê2009 Statutes of Nevada, Page 2869 (Chapter 490, SB 152)ê

 

                  (I) Employ on each such project a number of persons trained as described in paragraph (b) of subsection 3 that is equal to or greater than 50 percent of the total workforce the contractor employs on the project; or

                  (II) If the Director of the Department determines in writing, pursuant to a request submitted by the contractor, that the contractor cannot reasonably comply with the provisions of sub-subparagraph (I) because there are not available a sufficient number of such trained persons, employ a number of persons trained as described in paragraph (b) of subsection 3 or trained through any apprenticeship program that is registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS that is equal to or greater than 50 percent of the total workforce the contractor employs on the project;

            (3) A component pursuant to which persons trained as described in paragraph (b) of subsection 3 must be classified and paid prevailing wages depending upon the classification of the skill in which they are trained; and

            (4) A component that requires each contractor to offer to employees working on the project, and to their dependents, health care in the same manner as a policy of insurance pursuant to chapters 689A and 689B of NRS or the Employee Retirement Income Security Act of 1974.

      7.  The Department and the Division:

      (a) Shall apply for and accept any grant, appropriation, allocation or other money available pursuant to:

            (1) The Green Jobs Act of 2007, 29 U.S.C. § 2916(e); and

            (2) The American Recovery and Reinvestment Act of 2009, Public Law 111-5; and

      (b) May apply for and accept any other available gift, grant, appropriation or donation from any public or private source,

Ê to assist the Department and the Division in carrying out the provisions of this section.

      8.  The Department and the Division shall each report to the Interim Finance Committee at each meeting held by the Interim Finance Committee with respect to the activities in which they have engaged pursuant to this section.

      9.  As used in this section, “community action agencies” means private corporations or public agencies established pursuant to the Economic Opportunity Act of 1964, Public Law 88-452, which are authorized to administer money received from federal, state, local or private funding entities to assess, design, operate, finance and oversee antipoverty programs.

      Sec. 10.  1.  The State Public Works Board shall, within 90 days after the effective date of this act, determine the specific projects to weatherize and retrofit public buildings, facilities and structures, including, without limitation, traffic-control systems, and to otherwise use sources of renewable energy to serve those buildings, facilities and structures pursuant to the provisions of this section and section 9 of this act. The projects must be prioritized and selected on the basis of the following criteria:

      (a) The length of time necessary to commence the project.

      (b) The number of workers estimated to be employed on the project.

      (c) The effectiveness of the project in reducing energy consumption.

      (d) The estimated cost of the project.

 


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ê2009 Statutes of Nevada, Page 2870 (Chapter 490, SB 152)ê

 

      (e) Whether the project is able to be powered by or to otherwise use sources of renewable energy.

      (f) Whether the project has qualified for participation in one or more of the following programs:

            (1) The Solar Energy Systems Incentive Program created by NRS 701B.240;

            (2) The Renewable Energy School Pilot Program created by NRS 701B.350;

            (3) The Wind Energy Systems Demonstration Program created by NRS 701B.580;

            (4) The Waterpower Energy Systems Demonstration Program created by NRS 701B.820; or

            (5) An energy efficiency or energy conservation program offered by a public utility, as defined in NRS 704.020, pursuant to a plan approved by the Public Utilities Commission of Nevada pursuant to NRS 704.741.

      2.  The board of trustees of each school district shall, within 90 days after the effective date of this act, determine the specific projects to weatherize and retrofit public buildings, facilities and structures, including, without limitation, traffic-control systems, and to otherwise use sources of renewable energy to serve those buildings, facilities and structures pursuant to the provisions of this section and section 9 of this act. The projects must be prioritized and selected on the basis of the following criteria:

      (a) The length of time necessary to commence the project.

      (b) The number of workers estimated to be employed on the project.

      (c) The effectiveness of the project in reducing energy consumption.

      (d) The estimated cost of the project.

      (e) Whether the project is able to be powered by or to otherwise use sources of renewable energy.

      (f) Whether the project has qualified for participation in one or more of the following programs:

            (1) The Solar Energy Systems Incentive Program created by NRS 701B.240;

            (2) The Renewable Energy School Pilot Program created by NRS 701B.350;

            (3) The Wind Energy Systems Demonstration Program created by NRS 701B.580;

            (4) The Waterpower Energy Systems Demonstration Program created by NRS 701B.820; or

            (5) An energy efficiency or energy conservation program offered by a public utility, as defined in NRS 704.020, pursuant to a plan approved by the Public Utilities Commission of Nevada pursuant to NRS 704.741.

      3.  The Board of Regents of the University of Nevada shall, within 90 days after the effective date of this act, determine the specific projects to weatherize and retrofit public buildings, facilities and structures, including, without limitation, traffic-control systems, and to otherwise use sources of renewable energy to serve those buildings, facilities and structures pursuant to the provisions of this section and section 9 of this act. The projects must be prioritized and selected on the basis of the following criteria:

      (a) The length of time necessary to commence the project.

      (b) The number of workers estimated to be employed on the project.

 


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      (c) The effectiveness of the project in reducing energy consumption.

      (d) The estimated cost of the project.

      (e) Whether the project is able to be powered by or to otherwise use sources of renewable energy.

      (f) Whether the project has qualified for participation in one or more of the following programs:

            (1) The Solar Energy Systems Incentive Program created by NRS 701B.240;

            (2) The Renewable Energy School Pilot Program created by NRS 701B.350;

            (3) The Wind Energy Systems Demonstration Program created by NRS 701B.580;

            (4) The Waterpower Energy Systems Demonstration Program created by NRS 701B.820; or

            (5) An energy efficiency or energy conservation program offered by a public utility, as defined in NRS 704.020, pursuant to a plan approved by the Public Utilities Commission of Nevada pursuant to NRS 704.741.

      4.  As soon as practicable after an entity described in subsections 1, 2 and 3 selects a project, the entity shall proceed to enter into a contract with one or more contractors to perform the work on the project. The request for proposals and all contracts for each project must include, without limitation:

      (a) Provisions stipulating that all employees of the contractors and subcontractors who work on the project must be paid prevailing wages pursuant to the requirements of chapter 338 of NRS;

      (b) Provisions requiring that each contractor and subcontractor employed on each such project:

            (1) Employ a number of persons trained as described in paragraph (b) of subsection 3 of section 9 of this act that is equal to or greater than 50 percent of the total workforce the contractor or subcontractor employs on the project; or

            (2) If the Director of the Department determines in writing, pursuant to a request submitted by the contractor or subcontractor, that the contractor or subcontractor cannot reasonably comply with the provisions of subparagraph (1) because there are not available a sufficient number of such trained persons, employ a number of persons trained as described in paragraph (b) of subsection 3 of section 9 of this act or trained through any apprenticeship program that is registered and approved by the State Apprenticeship Council pursuant to chapter 610 of NRS that is equal to or greater than 50 percent of the total workforce the contractor or subcontractor employs on the project;

      (c) A component pursuant to which persons trained as described in paragraph (b) of subsection 3 of section 9 of this act must be classified and paid prevailing wages depending upon the classification of the skill in which they are trained; and

      (d) A component that requires each contractor or subcontractor to offer to employees working on the project, and to their dependents, health care in the same manner as a policy of insurance pursuant to chapters 689A and 689B of NRS or the Employee Retirement Income Security Act of 1974.

      5.  The State Public Works Board, each of the school districts and the Board of Regents of the University of Nevada shall each provide a report to the Interim Finance Committee which describes the projects selected pursuant to this section and a report of the dates on which those projects are scheduled to be completed.

 


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the Interim Finance Committee which describes the projects selected pursuant to this section and a report of the dates on which those projects are scheduled to be completed.

      Sec. 11.  Within limits of money available for the purpose:

      1.  The State Public Works Board shall conduct a study to determine the feasibility of using geothermal resources to provide heating to all or a portion of the Lovelock Correctional Center.

      2.  The Division of State Parks of the State Department of Conservation and Natural Resources shall conduct a study to determine the feasibility of:

      (a) Constructing a hydroelectric generation unit at the existing dam on the South Fork Reservoir near Elko, Nevada.

      (b) Constructing wind turbines in the vicinity of the South Fork Reservoir near Elko, Nevada.

      Sec. 11.5.  Upon the approval of any contract entered into by the Housing Division of the Department of Business and Industry pursuant to section 9 of this act, the State Board of Examiners shall immediately transmit a copy of the contract to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission.

      Sec. 12.  For the purposes of the State in carrying out the provisions of section 9 of this act governing residential weatherization in compliance with section 1606 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and notwithstanding any other provision of state law:

      1.  The Labor Commissioner shall, on the effective date of this act, for each locality in this State for which the Labor Commissioner has not already established job classifications and wage rates pursuant to state law, adopt the job classifications and wage rates relating to residential weatherization established for that locality pursuant to the most current provisions of federal law or, if such job classifications and wage rates have not been established for that locality, the job classifications and wage rates for the closest locality, whether or not in Nevada, for which such job classifications and wage rates have been established, which are necessary to carry out the provisions of section 9 of this act;

      2.  The Labor Commissioner shall enforce the job classifications and wage rates adopted pursuant to subsection 1 in the same manner as the Labor Commissioner is authorized to enforce the labor laws and regulations of this State generally; and

      3.  The provisions of NRS 233B.040 to 233B.120, inclusive, do not apply to the adoption by the Labor Commissioner of the job classifications and wage rates required pursuant to subsection 1.

      Sec. 13.  1.  The Office of Energy within the Office of the Governor, the Department of Employment, Training and Rehabilitation and the Housing Division of the Department of Business and Industry shall report to the Interim Finance Committee as required by the Committee concerning the application for and acceptance and expenditure of any money available to the State to carry out the purposes of this act pursuant to the American Recovery and Reinvestment Act of 2009, Public Law 111-5.

      2.  As part of each report required pursuant to subsection 1, the Housing Division of the Department of Business and Industry shall provide a written statement to the Interim Finance Committee concerning:

      (a) The number of energy audits of residences performed pursuant to section 9 of this act for the period since the previous such report;

 


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      (b) The energy savings for residences resulting from the weatherization projects carried out pursuant to section 9 of this act; and

      (c) Any other information required by the Interim Finance Committee.

      Sec. 14.  This act becomes effective upon passage and approval.

________

 

CHAPTER 491, SB 182

Senate Bill No. 182–Senator Schneider

 

CHAPTER 491

 

AN ACT relating to common-interest communities; clarifying various provisions of existing law relating to certain provisions of governing documents that violate statutory provisions, elections and the authority of an association to levy certain assessments under certain circumstances; revising certain provisions governing the authority of an association to impose fines under certain circumstances; making various other changes to the provisions governing common-interest communities; providing penalties; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Section 3 of this bill provides that a person who knowingly, willfully and with the intent to fraudulently alter the outcome of the election of a member to the executive board of an association or other votes of the units’ owners engages in certain acts pertaining to the ballot or the casting of votes in such election is guilty of a category D felony. (NRS 116.31034) Existing law prohibits a community manager, an officer or a member of the executive board from accepting or soliciting compensation that would influence him or appear to be a conflict of interest. (NRS 116.31185) Section 4 of this bill provides that a community manager or member of the executive board who asks for or receives compensation to influence his vote, opinion or action upon any official matter is guilty of a category D felony. Section 4 also provides that a person who offers or gives any gratuity, compensation or reward, or makes a promise thereof, to a community manager or member of the executive board in exchange for a vote, opinion or action on any official matter is guilty of a category D felony.

      Existing law requires each agency to provide by regulation for the filing and prompt disposition of petitions for declaratory orders and advisory opinions as to the applicability of any statutory provision, agency regulation or decision of the agency, and the Department of Business and Industry, which includes the Real Estate Division, has accordingly adopted regulations for such petitions. (NRS 233B.120; NAC 232.020) However, the Real Estate Division has not adopted any regulations pertaining to such petitions. Section 5 of this bill enacts a specific statutory provision requiring the Real Estate Division to adopt regulations pertaining to such petitions.

      Existing law contains provisions concerning units or common elements of an association that are acquired by eminent domain. (NRS 116.1107) Section 7 of this bill clarifies that existing law does not authorize an association to exercise the power of eminent domain. Section 8 of this bill clarifies that any provision contained in a declaration, bylaw or other governing document of a common-interest community that violates the provisions of chapter 116 of NRS is superseded by the provisions of chapter 116 of NRS, regardless of whether the provision became effective before the enactment of the statutory provision being violated. (NRS 116.1206)

 


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      Section 8.5 of this bill provides that an association may not charge a fee for entry into the common-interest community against a person providing services to a unit, a unit’s owner or a tenant of a unit’s owner or against a visitor, guest or invitee of a unit’s owner or a tenant of a unit’s owner. (NRS 116.2111)

      Section 9 of this bill revises existing law to limit an association’s power to include certain provisions in certain contracts involving the association. (NRS 116.3102)

      Existing law authorizes an executive board to impose fines under certain circumstances. (NRS 116.31031) Section 12 of this bill limits the imposition of fines against a unit’s owner for violations of the governing documents by a tenant or an invitee of the unit’s owner or the tenant.

      Sections 13, 14 and 16 of this bill revise provisions relating to certain elections and meetings of an association by: (1) requiring members of the executive board to be units’ owners; (2) providing that officers of an association are not required to be units’ owners, unless the governing documents provide otherwise; (3) providing certain rights for candidates for election to an executive board; (4) reducing the votes necessary for removal of a member of an executive board; (5) prohibiting an association from interfering with the collection of signatures for a special meeting or removal election; and (6) providing immunity from criminal or civil liability for an association, its officers, employees and agents for the disclosure or publication of certain information pursuant to certain duties required of the association or its officers, employees and agents. Section 14 also provides that punitive damages may not be recovered against the members of the executive board or the officers of an association for acts or omissions that occur in their capacity as members or officers. (NRS 116.31034, 116.31036, 116.3108)

      Section 15 of this bill clarifies existing law concerning the respective duties of an association and the units’ owners regarding the maintenance, repair and replacement of the common elements and the units. (NRS 116.3107)

      Sections 17-19 of this bill revise provisions relating to board meetings and hearings by: (1) requiring that meetings of the executive board be audio recorded and available in a certain manner; (2) requiring that certain written complaints be placed on the agenda; and (3) providing due process protections to units’ owners at certain hearings. (NRS 116.31083, 116.31085, 116.31087) Section 17 also revises existing law to allow public comments to be made at both the beginning and the end of a meeting. (NRS 116.31083)

      Existing law provides that an association has the statutory obligation to: (1) fund adequately its reserves; (2) include in its annual budget a statement concerning its reserves and whether it will be necessary to impose any special assessments; and (3) review its study of the reserves on an annual basis and make any appropriate adjustments necessary to ensure that the reserves are always funded adequately. (NRS 116.3115, 116.31151, 116.31152) Section 21 of this bill clarifies existing law by explicitly stating that notwithstanding any provision of the governing documents to the contrary, the executive board may, without seeking or obtaining the approval of units’ owners, impose any necessary and reasonable assessments to establish adequate reserves. This section also provides that any such assessments imposed must be based on the study of the reserves of the association conducted pursuant to NRS 116.31152.

      Section 22 of this bill authorizes the filing of a civil action to recover certain fees, administrative penalties and interest that were imposed erroneously. (NRS 116.31155)

      Existing law provides that an executive board of an association must, upon written request of a unit’s owner, make available certain records and papers of the association, except for certain personnel records, records of other units’ owners or contracts between the association and an attorney. (NRS 116.31175) Section 23.5 of this bill removes from the exemptions for the production of records those records which pertain to a contract between the association and an attorney.

 


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      Sections 24, 26 and 28 of this bill provide certain additional rights to units’ owners by: (1) increasing the scope and definition of prohibited retaliatory action; (2) authorizing the exhibition of certain political signs in certain areas; and (3) mandating notice before interruption of utility service to a unit’s owner. (NRS 116.31183, 116.325, 116.345)

      Section 25 of this bill expands the prohibition against certain contracts between an association and a member of the executive board or officer to include contracts involving financing. (NRS 116.31187) Section 27 of this bill: (1) provides that existing law concerning drought tolerant landscaping must be construed broadly; and (2) clarifies the definition of “drought tolerant landscaping.” (NRS 116.330) Section 29 of this bill provides that if a community manager fails or refuses to comply with the governing documents of the association or the provisions of chapter 116 of NRS, any person or class of persons may bring a civil action for damages or other relief. (NRS 116.4117)

      Section 30 of this bill increases the membership of the Commission by adding two members who are units’ owners but who are not required to have served as members of an executive board. (NRS 116.600) Section 31 of this bill revises provisions relating to the Commission’s duties by providing for the use of training officers to perform certain duties. (NRS 116.605)

      Section 36 of this bill clarifies that if the Commission or hearing officer orders an audit of an association, the audit is conducted at the expense of the association. (NRS 116.790)

      Existing law provides that a written affidavit, supporting documentation and information compiled as the result of an investigation of an alleged violation are confidential unless and until a formal complaint is filed. (NRS 116.757, 116A.270) Sections 33 and 37 of this bill clarify existing law to provide that such confidential information must not be disclosed to any person, including a person who is the subject of an investigation or complaint, unless and until a formal complaint is filed.

      Section 39 of this bill provides that the Commission must adopt regulations requiring an applicant for a certificate as a community manager or the applicant’s employer to post a bond. Section 39 also provides for the issuance of temporary certificates for community managers for a period of 1 year under certain circumstances. (NRS 116A.410)

      Section 40 of this bill revises existing law to provide that upon selection or appointment of an arbitrator, the arbitrator must provide certain information concerning the procedures of the arbitration and applicable law to each party to the arbitration, and each party must return to the arbitrator an acknowledgment of the information provided by the arbitrator. (NRS 38.330)

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 116 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 5, inclusive, of this act.

      Sec. 2.  (Deleted by amendment.)

      Sec. 3.  1.  A person shall not knowingly, willfully and with the intent to fraudulently alter the true outcome of an election of a member of the executive board or any other vote of the units’ owners engage in, attempt to engage in, or conspire with another person to engage in, any of the following acts:

      (a) Changing or falsifying a voter’s ballot so that the ballot does not reflect the voter’s true ballot.

      (b) Forging or falsely signing a voter’s ballot.

      (c) Fraudulently casting a vote for himself or for another person that the person is not authorized to cast.

 


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      (d) Rejecting, failing to count, destroying, defacing or otherwise invalidating the valid ballot of another voter.

      (e) Submitting a counterfeit ballot.

      2.  A person who violates this section is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      Sec. 4.  1.  Except as otherwise provided in subsection 3, a community manager or member of the executive board who asks for or receives, directly or indirectly, any compensation, gratuity or reward, or any promise thereof, upon an agreement or understanding that his vote, opinion or action upon any matter then pending or which may be brought before him in his capacity as a community manager or member of the executive board, will be influenced thereby, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      2.  Except as otherwise provided in subsection 3, a person who offers or gives, directly or indirectly, any compensation, gratuity or reward, or any promise thereof, upon an agreement or understanding that the vote, opinion or action of a community manager or member of the executive board upon any matter then pending or which may be brought before the community manager or member of the executive board in his capacity as a community manager or member of the executive board will be influenced thereby, is guilty of a category D felony and shall be punished as provided in NRS 193.130.

      3.  The provisions of this section do not prohibit:

      (a) An employee of a declarant or an affiliate of a declarant who is a member of an executive board from asking for or receiving, directly or indirectly, any compensation, gratuity or reward, or any promise thereof, from the declarant or affiliate.

      (b) A declarant or an affiliate of a declarant whose employee is a member of an executive board from offering or giving, directly or indirectly, any compensation, gratuity or reward, or any promise thereof, to the employee who is a member of the executive board.

      (c) A community manager from asking for or receiving, directly or indirectly, or an employer of a community manager from offering or giving, directly or indirectly, any compensation for work performed by the community manager pursuant to the laws of this State.

      Sec. 5.  1.  The Division shall provide by regulation for the filing and prompt disposition of petitions for declaratory orders and advisory opinions as to the applicability or interpretation of:

      (a) Any provision of this chapter or chapter 116A or 116B of NRS;

      (b) Any regulation adopted by the Commission, the Administrator or the Division; or

      (c) Any decision of the Commission, the Administrator or the Division or any of its sections.

      2.  Declaratory orders disposing of petitions filed pursuant to this section have the same status as agency decisions.

      3.  A petition filed pursuant to this section must:

      (a) Set forth the name and address of the petitioner; and

      (b) Contain a clear and concise statement of the issues to be decided by the Division in its declaratory order or advisory opinion.

      4.  A petition filed pursuant to this section is submitted for consideration by the Division when it is filed with the Administrator.

      5.  The Division shall:

 


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      (a) Respond to a petition filed pursuant to this section within 60 days after the date on which the petition is submitted for consideration; and

      (b) Upon issuing its declaratory order or advisory opinion, mail a copy of the declaratory order or advisory opinion to the petitioner.

      Sec. 6.  (Deleted by amendment.)

      Sec. 7.  NRS 116.1107 is hereby amended to read as follows:

      116.1107  1.  If a unit is acquired by eminent domain or part of a unit is acquired by eminent domain leaving the unit’s owner with a remnant that may not practically or lawfully be used for any purpose permitted by the declaration, the award must include compensation to the unit’s owner for that unit and its allocated interests, whether or not any common elements are acquired. Upon acquisition, unless the decree otherwise provides, that unit’s allocated interests are automatically reallocated to the remaining units in proportion to the respective allocated interests of those units before the taking, and the association shall promptly prepare, execute and record an amendment to the declaration reflecting the reallocations. Any remnant of a unit remaining after part of a unit is taken under this subsection is thereafter a common element.

      2.  Except as otherwise provided in subsection 1, if part of a unit is acquired by eminent domain, the award must compensate the unit’s owner for the reduction in value of the unit and its interest in the common elements, whether or not any common elements are acquired. Upon acquisition, unless the decree otherwise provides:

      (a) That unit’s allocated interests are reduced in proportion to the reduction in the size of the unit, or on any other basis specified in the declaration; and

      (b) The portion of the allocated interests divested from the partially acquired unit are automatically reallocated to that unit and to the remaining units in proportion to the respective allocated interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced allocated interests.

      3.  If part of the common elements is acquired by eminent domain, the portion of the award attributable to the common elements taken must be paid to the association. Unless the declaration provides otherwise, any portion of the award attributable to the acquisition of a limited common element must be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition.

      4.  The judicial decree must be recorded in every county in which any portion of the common-interest community is located.

      5.  The provisions of this section do not authorize an association to exercise the power of eminent domain pursuant to chapter 37 of NRS, and an association may not exercise the power of eminent domain, as provided in NRS 37.0097.

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

      116.1206  1.  Any provision contained in a declaration, bylaw or other governing document of a common-interest community that violates the provisions of this chapter [shall] :

      (a) Shall be deemed to conform with those provisions by operation of law, and any such declaration, bylaw or other governing document is not required to be amended to conform to those provisions.

      (b) Is superseded by the provisions of this chapter, regardless of whether the provision contained in the declaration, bylaw or other governing document became effective before the enactment of the provision of this chapter that is being violated.

 


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governing document became effective before the enactment of the provision of this chapter that is being violated.

      2.  In the case of amendments to the declaration, bylaws or plats and plans of any common-interest community created before January 1, 1992:

      (a) If the result accomplished by the amendment was permitted by law before January 1, 1992, the amendment may be made either in accordance with that law, in which case that law applies to that amendment, or it may be made under this chapter; and

      (b) If the result accomplished by the amendment is permitted by this chapter, and was not permitted by law before January 1, 1992, the amendment may be made under this chapter.

      3.  An amendment to the declaration, bylaws or plats and plans authorized by this section to be made under this chapter must be adopted in conformity with the applicable provisions of chapter 117 or 278A of NRS and with the procedures and requirements specified by those instruments. If an amendment grants to any person any rights, powers or privileges permitted by this chapter, all correlative obligations, liabilities and restrictions in this chapter also apply to that person.

      Sec. 8.5.  NRS 116.2111 is hereby amended to read as follows:

      116.2111  1.  Except as otherwise provided in this section and subject to the provisions of the declaration and other provisions of law, a unit’s owner:

      (a) May make any improvements or alterations to his unit that do not impair the structural integrity or mechanical systems or lessen the support of any portion of the common-interest community;

      (b) May not change the appearance of the common elements, or the exterior appearance of a unit or any other portion of the common-interest community, without permission of the association; and

      (c) After acquiring an adjoining unit or an adjoining part of an adjoining unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a common element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the common-interest community. Removal of partitions or creation of apertures under this paragraph is not an alteration of boundaries.

      2.  An association may not:

      (a) Unreasonably restrict, prohibit or otherwise impede the lawful rights of a unit’s owner to have reasonable access to his unit.

      (b) Charge any fee for a person to enter the common-interest community to provide services to a unit, a unit’s owner or a tenant of a unit’s owner or for any visitor to the common-interest community or invitee of a unit’s owner or a tenant of a unit’s owner to enter the common-interest community.

      (c) Unreasonably restrict, prohibit or withhold approval for a unit’s owner to add to a unit:

            (1) Improvements such as ramps, railings or elevators that are necessary to improve access to the unit for any occupant of the unit who has a disability;

            (2) Additional locks to improve the security of the unit;

            (3) Shutters to improve the security of the unit or to reduce the costs of energy for the unit; or

 


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            (4) A system that uses wind energy to reduce the costs of energy for the unit if the boundaries of the unit encompass 2 acres or more within the common-interest community.

      [(c)] (d) With regard to approving or disapproving any improvement or alteration made to a unit, act in violation of any state or federal law.

      3.  Any improvement or alteration made pursuant to subsection 2 that is visible from any other portion of the common-interest community must be installed, constructed or added in accordance with the procedures set forth in the governing documents of the association and must be selected or designed to the maximum extent practicable to be compatible with the style of the common-interest community.

      4.  A unit’s owner may not add to the unit a system that uses wind energy as described in subparagraph 4 of paragraph [(b)] (c) of subsection 2 unless he first obtains the written consent of each owner of property within 300 feet of any boundary of the unit.

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

      116.3102  1.  Except as otherwise provided in subsection 2, and subject to the provisions of the declaration, the association may do any or all of the following:

      (a) Adopt and amend bylaws, rules and regulations.

      (b) Adopt and amend budgets for revenues, expenditures and reserves and collect assessments for common expenses from the units’ owners.

      (c) Hire and discharge managing agents and other employees, agents and independent contractors.

      (d) Institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more units’ owners on matters affecting the common-interest community.

      (e) Make contracts and incur liabilities. Any contract between the association and a private entity for the furnishing of goods or services must not include a provision granting the private entity the right of first refusal with respect to extension or renewal of the contract.

      (f) Regulate the use, maintenance, repair, replacement and modification of common elements.

      (g) Cause additional improvements to be made as a part of the common elements.

      (h) Acquire, hold, encumber and convey in its own name any right, title or interest to real estate or personal property, but:

            (1) Common elements in a condominium or planned community may be conveyed or subjected to a security interest only pursuant to NRS 116.3112; and

            (2) Part of a cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only pursuant to NRS 116.3112.

      (i) Grant easements, leases, licenses and concessions through or over the common elements.

      (j) Impose and receive any payments, fees or charges for the use, rental or operation of the common elements, other than limited common elements described in subsections 2 and 4 of NRS 116.2102, and for services provided to the units’ owners.

      (k) Impose charges for late payment of assessments.

      (l) Impose construction penalties when authorized pursuant to NRS 116.310305.

 


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      (m) Impose reasonable fines for violations of the governing documents of the association only if the association complies with the requirements set forth in NRS 116.31031.

      (n) Impose reasonable charges for the preparation and recordation of any amendments to the declaration or any statements of unpaid assessments, and impose reasonable fees, not to exceed the amounts authorized by NRS 116.4109, for preparing and furnishing the documents and certificate required by that section.

      (o) Provide for the indemnification of its officers and executive board and maintain directors’ and officers’ liability insurance.

      (p) Assign its right to future income, including the right to receive assessments for common expenses, but only to the extent the declaration expressly so provides.

      (q) Exercise any other powers conferred by the declaration or bylaws.

      (r) Exercise all other powers that may be exercised in this State by legal entities of the same type as the association.

      (s) Direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or other thoroughfare within the common-interest community in violation of the governing documents. In addition to complying with the requirements of NRS 487.038 and any requirements in the governing documents, if a vehicle is improperly parked as described in this paragraph, the association must post written notice in a conspicuous place on the vehicle or provide oral or written notice to the owner or operator of the vehicle at least 48 hours before the association may direct the removal of the vehicle, unless the vehicle:

            (1) Is blocking a fire hydrant, fire lane or parking space designated for the handicapped; or

            (2) Poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community.

      (t) Exercise any other powers necessary and proper for the governance and operation of the association.

      2.  The declaration may not impose limitations on the power of the association to deal with the declarant which are more restrictive than the limitations imposed on the power of the association to deal with other persons.

      Secs. 10 and 11.  (Deleted by amendment.)

      Sec. 12.  NRS 116.31031 is hereby amended to read as follows:

      116.31031  1.  Except as otherwise provided in this section, if a unit’s owner or a tenant or [guest] an invitee of a unit’s owner or a tenant violates any provision of the governing documents of an association, the executive board may, if the governing documents so provide:

      (a) Prohibit, for a reasonable time, the unit’s owner or the tenant or [guest] the invitee of the unit’s owner or the tenant from:

            (1) Voting on matters related to the common-interest community.

            (2) Using the common elements. The provisions of this subparagraph do not prohibit the unit’s owner or the tenant or [guest] the invitee of the unit’s owner or the tenant from using any vehicular or pedestrian ingress or egress to go to or from the unit, including any area used for parking.

      (b) Impose a fine against the unit’s owner or the tenant or [guest] the invitee of the unit’s owner or the tenant for each violation, except that a fine may not be imposed for a violation that is the subject of a construction penalty pursuant to NRS 116.310305.

 


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ê2009 Statutes of Nevada, Page 2881 (Chapter 491, SB 182)ê

 

may not be imposed for a violation that is the subject of a construction penalty pursuant to NRS 116.310305. If the violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents. If the violation does not pose an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents, but the amount of the fine must not exceed $100 for each violation or a total amount of $1,000, whichever is less. The limitations on the amount of the fine do not apply to any interest, charges or costs that may be collected by the association pursuant to this section if the fine becomes past due.

      2.  The executive board may not impose a fine pursuant to subsection 1 against a unit’s owner for a violation of any provision of the governing documents of an association committed by an invitee of the unit’s owner or the tenant unless the unit’s owner:

      (a) Participated in or authorized the violation;

      (b) Had prior notice of the violation; or

      (c) Had an opportunity to stop the violation and failed to do so.

      3.  The executive board may not impose a fine pursuant to subsection 1 unless:

      (a) Not less than 30 days before the violation, the person against whom the fine will be imposed had been provided with written notice of the applicable provisions of the governing documents that form the basis of the violation; and

      (b) Within a reasonable time after the discovery of the violation, the person against whom the fine will be imposed has been provided with:

            (1) Written notice specifying the details of the violation, the amount of the fine, and the date, time and location for a hearing on the violation; and

            (2) A reasonable opportunity to contest the violation at the hearing.

      [3.] 4.  The executive board must schedule the date, time and location for the hearing on the violation so that the person against whom the fine will be imposed is provided with a reasonable opportunity to prepare for the hearing and to be present at the hearing.

      [4.] 5.  The executive board must hold a hearing before it may impose the fine, unless the person against whom the fine will be imposed:

      (a) Pays the fine;

      (b) Executes a written waiver of the right to the hearing; or

      (c) Fails to appear at the hearing after being provided with proper notice of the hearing.

      [5.] 6.  If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days, or within any longer period that may be established by the executive board, the violation shall be deemed a continuing violation. Thereafter, the executive board may impose an additional fine for the violation for each 7-day period or portion thereof that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard.

 


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ê2009 Statutes of Nevada, Page 2882 (Chapter 491, SB 182)ê

 

      [6.] 7.  If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to conduct hearings on violations and to impose fines pursuant to this section. While acting on behalf of the executive board for those limited purposes, the committee and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the executive board and its members.

      [7.] 8.  The provisions of this section establish the minimum procedural requirements that the executive board must follow before it may impose a fine. The provisions of this section do not preempt any provisions of the governing documents that provide greater procedural protections.

      [8.] 9.  Any past due fine:

      (a) Bears interest at the rate established by the association, not to exceed the legal rate per annum.

      (b) May include any costs of collecting the past due fine at a rate established by the association. If the past due fine is for a violation that does not threaten the health, safety or welfare of the residents of the common-interest community, the rate established by the association for the costs of collecting the past due fine:

            (1) May not exceed $20, if the outstanding balance is less than $200.

            (2) May not exceed $50, if the outstanding balance is $200 or more, but is less than $500.

            (3) May not exceed $100, if the outstanding balance is $500 or more, but is less than $1,000.

            (4) May not exceed $250, if the outstanding balance is $1,000 or more, but is less than $5,000.

            (5) May not exceed $500, if the outstanding balance is $5,000 or more.

      (c) May include any costs incurred by the association during a civil action to enforce the payment of the past due fine.

      [9.] 10.  As used in this section:

      (a) “Costs of collecting” includes, without limitation, any collection fee, filing fee, recording fee, referral fee, fee for postage or delivery, and any other fee or cost that an association may reasonably charge to the unit’s owner for the collection of a past due fine. The term does not include any costs incurred by an association during a civil action to enforce the payment of a past due fine.

      (b) “Outstanding balance” means the amount of a past due fine that remains unpaid before any interest, charges for late payment or costs of collecting the past due fine are added.

      Sec. 12.5.  NRS 116.310315 is hereby amended to read as follows:

      116.310315  If an association has imposed a fine against a unit’s owner or a tenant or [guest] an invitee of a unit’s owner or a tenant pursuant to NRS 116.31031 for violations of the governing documents of the association, the association:

      1.  Shall, in the books and records of the association, account for the fine separately from any assessment, fee or other charge; and

      2.  Shall not apply, in whole or in part, any payment made by the unit’s owner for any assessment, fee or other charge toward the payment of the outstanding balance of the fine or any costs of collecting the fine, unless the unit’s owner provides written authorization which directs the association to apply the payment made by the unit’s owner in such a manner.

 


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ê2009 Statutes of Nevada, Page 2883 (Chapter 491, SB 182)ê

 

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

      116.31034  1.  Except as otherwise provided in subsection 5 of NRS 116.212, not later than the termination of any period of declarant’s control, the units’ owners shall elect an executive board of at least three members, [at least a majority] all of whom must be units’ owners. [Unless the governing documents provide otherwise, the remaining members of the executive board do not have to be units’ owners.] The executive board shall elect the officers of the association. Unless the governing documents provide otherwise, the officers of the association are not required to be units’ owners. The members of the executive board and the officers of the association shall take office upon election.

      2.  The term of office of a member of the executive board may not exceed 2 years, except for members who are appointed by the declarant. Unless the governing documents provide otherwise, there is no limitation on the number of terms that a person may serve as a member of the executive board.

      3.  The governing documents of the association must provide for terms of office that are staggered in such a manner that, to the extent possible, an equal number of members of the executive board are elected at each election. The provisions of this subsection do not apply to:

      (a) Members of the executive board who are appointed by the declarant; and

      (b) Members of the executive board who serve a term of 1 year or less.

      4.  Not less than 30 days before the preparation of a ballot for the election of members of the executive board, the secretary or other officer specified in the bylaws of the association shall cause notice to be given to each unit’s owner of his eligibility to serve as a member of the executive board. Each unit’s owner who is qualified to serve as a member of the executive board may have his name placed on the ballot along with the names of the nominees selected by the members of the executive board or a nominating committee established by the association.

      5.  Each person whose name is placed on the ballot as a candidate for a member of the executive board must:

      (a) Make a good faith effort to disclose any financial, business, professional or personal relationship or interest that would result or would appear to a reasonable person to result in a potential conflict of interest for the candidate if the candidate were to be elected to serve as a member of the executive board; and

      (b) Disclose whether the candidate is a member in good standing. For the purposes of this paragraph, a candidate shall not be deemed to be in “good standing” if the candidate has any unpaid and past due assessments or construction penalties that are required to be paid to the association.

Ê The candidate must make all disclosures required pursuant to this subsection in writing to the association with his candidacy information. The association shall distribute the disclosures to each member of the association with the ballot in the manner established in the bylaws of the association.

      6.  Unless a person is appointed by the declarant:

      (a) A person may not be a member of the executive board or an officer of the association if the person, his spouse or his parent or child, by blood, marriage or adoption, performs the duties of a community manager for that association.

 


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ê2009 Statutes of Nevada, Page 2884 (Chapter 491, SB 182)ê

 

      (b) A person may not be a member of the executive board of a master association or an officer of that master association if the person, his spouse or his parent or child, by blood, marriage or adoption, performs the duties of a community manager for:

            (1) That master association; or

            (2) Any association that is subject to the governing documents of that master association.

      7.  An officer, employee, agent or director of a corporate owner of a unit, a trustee or designated beneficiary of a trust that owns a unit, a partner of a partnership that owns a unit, a member or manager of a limited-liability company that owns a unit, and a fiduciary of an estate that owns a unit may be an officer of the association or a member of the executive board. In all events where the person serving or offering to serve as an officer of the association or a member of the executive board is not the record owner, he shall file proof in the records of the association that:

      (a) He is associated with the corporate owner, trust, partnership, limited-liability company or estate as required by this subsection; and

      (b) Identifies the unit or units owned by the corporate owner, trust, partnership, limited-liability company or estate.

      8.  The election of any member of the executive board must be conducted by secret written ballot unless the declaration of the association provides that voting rights may be exercised by delegates or representatives as set forth in NRS 116.31105. If the election of any member of the executive board is conducted by secret written ballot:

      (a) The secretary or other officer specified in the bylaws of the association shall cause a secret ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) A quorum is not required for the election of any member of the executive board.

      (d) Only the secret written ballots that are returned to the association may be counted to determine the outcome of the election.

      (e) The secret written ballots must be opened and counted at a meeting of the association. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (f) The incumbent members of the executive board and each person whose name is placed on the ballot as a candidate for a member of the executive board may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

      9.  An association shall not adopt any rule or regulation that has the effect of prohibiting or unreasonably interfering with a candidate in his campaign for election as a member of the executive board, except that his campaign may be limited to 90 days before the date that ballots are required to be returned to the association. A candidate may request that the secretary or other officer specified in the bylaws of the association send, 30 days before the date of the election and at the association’s expense, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner a candidate informational statement.

 


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ê2009 Statutes of Nevada, Page 2885 (Chapter 491, SB 182)ê

 

mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner a candidate informational statement. The candidate informational statement:

      (a) Must be no longer than a single, typed page;

      (b) Must not contain any defamatory, libelous or profane information; and

      (c) May be sent with the secret ballot mailed pursuant to subsection 8 or in a separate mailing.

Ê The association and its directors, officers, employees and agents are immune from criminal or civil liability for any act or omission which arises out of the publication or disclosure of any information related to any person and which occurs in the course of carrying out any duties required pursuant to this subsection.

      10.  Each member of the executive board shall, within 90 days after his appointment or election, certify in writing to the association, on a form prescribed by the Administrator, that he has read and understands the governing documents of the association and the provisions of this chapter to the best of his ability. The Administrator may require the association to submit a copy of the certification of each member of the executive board of that association at the time the association registers with the Ombudsman pursuant to NRS 116.31158.

      Sec. 14.  NRS 116.31036 is hereby amended to read as follows:

      116.31036  1.  Notwithstanding any provision of the declaration or bylaws to the contrary, any member of the executive board, other than a member appointed by the declarant, may be removed from the executive board, with or without cause, if at a removal election held pursuant to this section [the] :

      (a) The number of votes cast [in favor of removal] constitutes [:

      (a) At] at least 35 percent of the total number of voting members of the association; and

      (b) At least a majority of all votes cast in that removal election [.] are cast in favor of removal.

      2.  The removal of any member of the executive board must be conducted by secret written ballot unless the declaration of the association provides that voting rights may be exercised by delegates or representatives as set forth in NRS 116.31105. If the removal of a member of the executive board is conducted by secret written ballot:

      (a) The secretary or other officer specified in the bylaws of the association shall cause a secret ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) Only the secret written ballots that are returned to the association may be counted to determine the outcome.

      (d) The secret written ballots must be opened and counted at a meeting of the association. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (e) The incumbent members of the executive board, including, without limitation, the member who is subject to the removal, may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

 


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ê2009 Statutes of Nevada, Page 2886 (Chapter 491, SB 182)ê

 

given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

      3.  If a member of an executive board is named as a respondent or sued for liability for actions undertaken in his role as a member of the board, the association shall indemnify him for his losses or claims, and undertake all costs of defense, unless it is proven that he acted with willful or wanton misfeasance or with gross negligence. After such proof, the association is no longer liable for the cost of defense, and may recover costs already expended from the member of the executive board who so acted. Members of the executive board are not personally liable to the victims of crimes occurring on the property. Punitive damages may not be recovered against [the] :

      (a) The association [, but may be recovered from persons whose activity gave rise to the damages.] ;

      (b) The members of the executive board for acts or omissions that occur in their official capacity as members of the executive board; or

      (c) The officers of the association for acts or omissions that occur in their capacity as officers of the association.

      4.  The provisions of this section do not prohibit the Commission from taking any disciplinary action against a member of an executive board pursuant to NRS 116.745 to 116.795, inclusive.

      Sec. 15.  NRS 116.3107 is hereby amended to read as follows:

      116.3107  1.  Except to the extent provided by the declaration, subsection 2 and NRS 116.31135, the association [is responsible] has the duty to provide for the maintenance, repair and replacement of the common elements, and each unit’s owner [is responsible] has the duty to provide for the maintenance, repair and replacement of his unit. Each unit’s owner shall afford to the association and the other units’ owners, and to their agents or employees, access through his unit reasonably necessary for those purposes. If damage is inflicted on the common elements or on any unit through which access is taken, the unit’s owner responsible for the damage, or the association if it is responsible, is liable for the prompt repair thereof.

      2.  In addition to the liability that a declarant as a unit’s owner has under this chapter, the declarant alone is liable for all expenses in connection with real estate subject to developmental rights. No other unit’s owner and no other portion of the common-interest community is subject to a claim for payment of those expenses. Unless the declaration provides otherwise, any income or proceeds from real estate subject to developmental rights inures to the declarant.

      3.  In a planned community, if all developmental rights have expired with respect to any real estate, the declarant remains liable for all expenses of that real estate unless, upon expiration, the declaration provides that the real estate becomes common elements or units.

      Sec. 16.  NRS 116.3108 is hereby amended to read as follows:

      116.3108  1.  A meeting of the units’ owners must be held at least once each year. If the governing documents do not designate an annual meeting date of the units’ owners, a meeting of the units’ owners must be held 1 year after the date of the last meeting of the units’ owners. If the units’ owners have not held a meeting for 1 year, a meeting of the units’ owners must be held on the following March 1.

      2.  Special meetings of the units’ owners may be called by the president, by a majority of the executive board or by units’ owners constituting at least 10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association.

 


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ê2009 Statutes of Nevada, Page 2887 (Chapter 491, SB 182)ê

 

10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association. The same number of units’ owners may also call a removal election pursuant to NRS 116.31036. To call a special meeting or a removal election, the units’ owners must submit a written petition which is signed by the required percentage of the total number of voting members of the association pursuant to this section and which is mailed, return receipt requested, or served by a process server to the executive board or the community manager for the association. If the petition calls for a special meeting, the executive board shall set the date for the special meeting so that the special meeting is held not less than 15 days or more than 60 days after the date on which the petition is received. If the petition calls for a removal election and:

      (a) The voting rights of the units’ owners will be exercised by delegates or representatives as set forth in NRS 116.31105, the executive board shall set the date for the removal election so that the removal election is held not less than 15 days or more than 60 days after the date on which the petition is received; or

      (b) The voting rights of the units’ owners will be exercised through the use of secret written ballots pursuant to NRS 116.31036, the secret written ballots for the removal election must be sent in the manner required by NRS 116.31036 not less than 15 days or more than 60 days after the date on which the petition is received, and the executive board shall set the date for the meeting to open and count the secret written ballots so that the meeting is held not more than 15 days after the deadline for returning the secret written ballots.

Ê The association shall not adopt any rule or regulation which prevents or unreasonably interferes with the collection of the required percentage of signatures for a petition pursuant to this subsection.

      3.  Not less than 15 days or more than 60 days in advance of any meeting of the units’ owners, the secretary or other officer specified in the bylaws shall cause notice of the meeting to be hand-delivered, sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner or, if the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the unit’s owner. The notice of the meeting must state the time and place of the meeting and include a copy of the agenda for the meeting. The notice must include notification of the right of a unit’s owner to:

      (a) Have a copy of the minutes or a summary of the minutes of the meeting provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      (b) Speak to the association or executive board, unless the executive board is meeting in executive session.

      4.  The agenda for a meeting of the units’ owners must consist of:

      (a) A clear and complete statement of the topics scheduled to be considered during the meeting, including, without limitation, any proposed amendment to the declaration or bylaws, any fees or assessments to be imposed or increased by the association, any budgetary changes and any proposal to remove an officer of the association or member of the executive board.

 


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ê2009 Statutes of Nevada, Page 2888 (Chapter 491, SB 182)ê

 

      (b) A list describing the items on which action may be taken and clearly denoting that action may be taken on those items. In an emergency, the units’ owners may take action on an item which is not listed on the agenda as an item on which action may be taken.

      (c) A period devoted to comments by units’ owners and discussion of those comments. Except in emergencies, no action may be taken upon a matter raised under this item of the agenda until the matter itself has been specifically included on an agenda as an item upon which action may be taken pursuant to paragraph (b).

      5.  If the association adopts a policy imposing fines for any violations of the governing documents of the association, the secretary or other officer specified in the bylaws shall prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner, a schedule of the fines that may be imposed for those violations.

      6.  The secretary or other officer specified in the bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the units’ owners. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the minutes or a summary of the minutes of the meeting to be made available to the units’ owners. A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      7.  Except as otherwise provided in subsection 8, the minutes of each meeting of the units’ owners must include:

      (a) The date, time and place of the meeting;

      (b) The substance of all matters proposed, discussed or decided at the meeting; and

      (c) The substance of remarks made by any unit’s owner at the meeting if he requests that the minutes reflect his remarks or, if he has prepared written remarks, a copy of his prepared remarks if he submits a copy for inclusion.

      8.  The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of a meeting of the units’ owners.

      9.  The association shall maintain the minutes of each meeting of the units’ owners until the common-interest community is terminated.

      10.  A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the units’ owners if the unit’s owner, before recording the meeting, provides notice of his intent to record the meeting to the other units’ owners who are in attendance at the meeting.

      11.  The units’ owners may approve, at the annual meeting of the units’ owners, the minutes of the prior annual meeting of the units’ owners and the minutes of any prior special meetings of the units’ owners. A quorum is not required to be present when the units’ owners approve the minutes.

      12.  As used in this section, “emergency” means any occurrence or combination of occurrences that:

      (a) Could not have been reasonably foreseen;

      (b) Affects the health, welfare and safety of the units’ owners or residents of the common-interest community;

      (c) Requires the immediate attention of, and possible action by, the executive board; and

 


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ê2009 Statutes of Nevada, Page 2889 (Chapter 491, SB 182)ê

 

      (d) Makes it impracticable to comply with the provisions of subsection 3 or 4.

      Sec. 17.  NRS 116.31083 is hereby amended to read as follows:

      116.31083  1.  A meeting of the executive board must be held at least once every 90 days.

      2.  Except in an emergency or unless the bylaws of an association require a longer period of notice, the secretary or other officer specified in the bylaws of the association shall, not less than 10 days before the date of a meeting of the executive board, cause notice of the meeting to be given to the units’ owners. Such notice must be:

      (a) Sent prepaid by United States mail to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner;

      (b) If the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the unit’s owner; or

      (c) Published in a newsletter or other similar publication that is circulated to each unit’s owner.

      3.  In an emergency, the secretary or other officer specified in the bylaws of the association shall, if practicable, cause notice of the meeting to be sent prepaid by United States mail to the mailing address of each unit within the common-interest community. If delivery of the notice in this manner is impracticable, the notice must be hand-delivered to each unit within the common-interest community or posted in a prominent place or places within the common elements of the association.

      4.  The notice of a meeting of the executive board must state the time and place of the meeting and include a copy of the agenda for the meeting or the date on which and the locations where copies of the agenda may be conveniently obtained by the units’ owners. The notice must include notification of the right of a unit’s owner to:

      (a) Have a copy of the audio recording, the minutes or a summary of the minutes of the meeting provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      (b) Speak to the association or executive board, unless the executive board is meeting in executive session.

      5.  The agenda of the meeting of the executive board must comply with the provisions of subsection 4 of NRS 116.3108. [The] A period required to be devoted to comments by the units’ owners and discussion of those comments must be scheduled for both the beginning and the end of each meeting. During the period devoted to comments by the units’ owners and discussion of those comments at the beginning of each meeting, comments by the units’ owners and discussion of those comments must be limited to items listed on the agenda. In an emergency, the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

      6.  At least once every 90 days, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review, at a minimum, the following financial information at one of its meetings:

 


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ê2009 Statutes of Nevada, Page 2890 (Chapter 491, SB 182)ê

 

      (a) A current year-to-date financial statement of the association;

      (b) A current year-to-date schedule of revenues and expenses for the operating account and the reserve account, compared to the budget for those accounts;

      (c) A current reconciliation of the operating account of the association;

      (d) A current reconciliation of the reserve account of the association;

      (e) The latest account statements prepared by the financial institutions in which the accounts of the association are maintained; and

      (f) The current status of any civil action or claim submitted to arbitration or mediation in which the association is a party.

      7.  The secretary or other officer specified in the bylaws shall cause each meeting of the executive board to be audio recorded and the minutes to be recorded or otherwise taken at each meeting of the executive board [.] , but if the executive board is meeting in executive session, the meeting must not be audio recorded. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the audio recording of the meeting, the minutes [or] of the meeting and a summary of the minutes of the [meetings] meeting to be made available to the units’ owners. A copy of the audio recording, the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      8.  Except as otherwise provided in subsection 9 and NRS 116.31085, the minutes of each meeting of the executive board must include:

      (a) The date, time and place of the meeting;

      (b) Those members of the executive board who were present and those members who were absent at the meeting;

      (c) The substance of all matters proposed, discussed or decided at the meeting;

      (d) A record of each member’s vote on any matter decided by vote at the meeting; and

      (e) The substance of remarks made by any unit’s owner who addresses the executive board at the meeting if he requests that the minutes reflect his remarks or, if he has prepared written remarks, a copy of his prepared remarks if he submits a copy for inclusion.

      9.  The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of its meetings.

      10.  The association shall maintain the minutes of each meeting of the executive board until the common-interest community is terminated.

      11.  A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the executive board, unless the executive board is meeting in executive session, if the unit’s owner, before recording the meeting, provides notice of his intent to record the meeting to the members of the executive board and the other units’ owners who are in attendance at the meeting.

      12.  As used in this section, “emergency” means any occurrence or combination of occurrences that:

      (a) Could not have been reasonably foreseen;

      (b) Affects the health, welfare and safety of the units’ owners or residents of the common-interest community;

 


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      (c) Requires the immediate attention of, and possible action by, the executive board; and

      (d) Makes it impracticable to comply with the provisions of subsection 2 or 5.

      Sec. 18.  NRS 116.31085 is hereby amended to read as follows:

      116.31085  1.  Except as otherwise provided in this section, a unit’s owner may attend any meeting of the units’ owners or of the executive board and speak at any such meeting. The executive board may establish reasonable limitations on the time a unit’s owner may speak at such a meeting.

      2.  An executive board may not meet in executive session to enter into, renew, modify, terminate or take any other action regarding a contract . [, unless it is a contract between the association and an attorney.]

      3.  An executive board may meet in executive session only to:

      (a) Consult with the attorney for the association on matters relating to proposed or pending litigation if the contents of the discussion would otherwise be governed by the privilege set forth in NRS 49.035 to 49.115, inclusive . [, or to enter into, renew, modify, terminate or take any other action regarding a contract between the association and the attorney.]

      (b) Discuss the character, alleged misconduct, professional competence, or physical or mental health of a community manager or an employee of the association.

      (c) Except as otherwise provided in subsection 4, discuss a violation of the governing documents, including, without limitation, the failure to pay an assessment.

      (d) Discuss the alleged failure of a unit’s owner to adhere to a schedule required pursuant to NRS 116.310305 if the alleged failure may subject the unit’s owner to a construction penalty.

      4.  An executive board shall meet in executive session to hold a hearing on an alleged violation of the governing documents unless the person who may be sanctioned for the alleged violation requests in writing that an open hearing be conducted by the executive board. If the person who may be sanctioned for the alleged violation requests in writing that an open hearing be conducted, the person:

      (a) Is entitled to attend all portions of the hearing related to the alleged violation, including, without limitation, the presentation of evidence and the testimony of witnesses; [and]

      (b) Is entitled to due process, as set forth in the standards adopted by regulation by the Commission, which must include, without limitation, the right to counsel, the right to present witnesses and the right to present information relating to any conflict of interest of any member of the hearing panel; and

      (c) Is not entitled to attend the deliberations of the executive board.

      5.  The provisions of subsection 4 establish the minimum protections that the executive board must provide before it may make a decision. The provisions of subsection 4 do not preempt any provisions of the governing documents that provide greater protections.

      6.  Except as otherwise provided in this subsection, any matter discussed by the executive board when it meets in executive session must be generally noted in the minutes of the meeting of the executive board. The executive board shall maintain minutes of any decision made pursuant to subsection 4 concerning an alleged violation and, upon request, provide a copy of the decision to the person who was subject to being sanctioned at the hearing or to his designated representative.

 


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concerning an alleged violation and, upon request, provide a copy of the decision to the person who was subject to being sanctioned at the hearing or to his designated representative.

      [6.] 7.  Except as otherwise provided in subsection 4, a unit’s owner is not entitled to attend or speak at a meeting of the executive board held in executive session.

      Sec. 19.  NRS 116.31087 is hereby amended to read as follows:

      116.31087  1.  If an executive board receives a written complaint from a unit’s owner alleging that the executive board has violated any provision of this chapter or any provision of the governing documents of the association, the executive board shall [, if action is required by the executive board,] , upon the written request of the unit’s owner, place the subject of the complaint on the agenda of the next regularly scheduled meeting of the executive board.

      2.  Not later than 10 business days after the date that the association receives such a complaint, the executive board or an authorized representative of the association shall acknowledge the receipt of the complaint and notify the unit’s owner that, if [action is required by the executive board,] the unit’s owner submits a written request that the subject of the complaint be placed on the agenda of the next regularly scheduled meeting of the executive board, the subject of the complaint will be placed on the agenda of the next regularly scheduled meeting of the executive board.

      Sec. 20.  (Deleted by amendment.)

      Sec. 21.  NRS 116.3115 is hereby amended to read as follows:

      116.3115  1.  Until the association makes an assessment for common expenses, the declarant shall pay all common expenses. After an assessment has been made by the association, assessments must be made at least annually, based on a budget adopted at least annually by the association in accordance with the requirements set forth in NRS 116.31151. Unless the declaration imposes more stringent standards, the budget must include a budget for the daily operation of the association and a budget for the reserves required by paragraph (b) of subsection 2.

      2.  Except for assessments under subsections 4 to 7, inclusive:

      (a) All common expenses, including the reserves, must be assessed against all the units in accordance with the allocations set forth in the declaration pursuant to subsections 1 and 2 of NRS 116.2107.

      (b) The association shall establish adequate reserves, funded on a reasonable basis, for the repair, replacement and restoration of the major components of the common elements. The reserves may be used only for those purposes, including, without limitation, repairing, replacing and restoring roofs, roads and sidewalks, and must not be used for daily maintenance. The association may comply with the provisions of this paragraph through a funding plan that is designed to allocate the costs for the repair, replacement and restoration of the major components of the common elements over a period of years if the funding plan is designed in an actuarially sound manner which will ensure that sufficient money is available when the repair, replacement and restoration of the major components of the common elements are necessary. Notwithstanding any provision of the governing documents to the contrary, to establish adequate reserves pursuant to this paragraph, including, without limitation, to establish or carry out a funding plan, the executive board may, without seeking or obtaining the approval of the units’ owners, impose any necessary and reasonable assessments against the units in the common-interest community.

 


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ê2009 Statutes of Nevada, Page 2893 (Chapter 491, SB 182)ê

 

obtaining the approval of the units’ owners, impose any necessary and reasonable assessments against the units in the common-interest community. Any such assessments imposed by the executive board must be based on the study of the reserves of the association conducted pursuant to NRS 116.31152.

      3.  Any past due assessment for common expenses or installment thereof bears interest at the rate established by the association not exceeding 18 percent per year.

      4.  To the extent required by the declaration:

      (a) Any common expense associated with the maintenance, repair, restoration or replacement of a limited common element must be assessed against the units to which that limited common element is assigned, equally, or in any other proportion the declaration provides;

      (b) Any common expense or portion thereof benefiting fewer than all of the units must be assessed exclusively against the units benefited; and

      (c) The costs of insurance must be assessed in proportion to risk and the costs of utilities must be assessed in proportion to usage.

      5.  Assessments to pay a judgment against the association may be made only against the units in the common-interest community at the time the judgment was entered, in proportion to their liabilities for common expenses.

      6.  If any common expense is caused by the misconduct of any unit’s owner, the association may assess that expense exclusively against his unit.

      7.  The association of a common-interest community created before January 1, 1992, is not required to make an assessment against a vacant lot located within the community that is owned by the declarant.

      8.  If liabilities for common expenses are reallocated, assessments for common expenses and any installment thereof not yet due must be recalculated in accordance with the reallocated liabilities.

      9.  The association shall provide written notice to each unit’s owner of a meeting at which an assessment for a capital improvement is to be considered or action is to be taken on such an assessment at least 21 calendar days before the date of the meeting.

      Sec. 22.  NRS 116.31155 is hereby amended to read as follows:

      116.31155  1.  Except as otherwise provided in subsection 2, an association shall:

      (a) If the association is required to pay the fee imposed by NRS 78.150, 82.193, 86.263, 87.541, 87A.560 or 88.591, pay to the Administrator a fee established by regulation of the Administrator for every unit in the association used for residential use.

      (b) If the association is organized as a trust or partnership, or as any other authorized business entity, pay to the Administrator a fee established by regulation of the Administrator for each unit in the association.

      2.  If an association is subject to the governing documents of a master association, the master association shall pay the fees required pursuant to this section for each unit in the association that is subject to the governing documents of the master association, unless the governing documents of the master association provide otherwise. The provisions of this subsection do not relieve any association that is subject to the governing documents of a master association from its ultimate responsibility to pay the fees required pursuant to this section to the Administrator if they are not paid by the master association.

 


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ê2009 Statutes of Nevada, Page 2894 (Chapter 491, SB 182)ê

 

      3.  The fees required to be paid pursuant to this section must be:

      (a) Paid at such times as are established by the Division.

      (b) Deposited with the State Treasurer for credit to the Account for Common-Interest Communities and Condominium Hotels created by NRS 116.630.

      (c) Established on the basis of the actual costs of administering the Office of the Ombudsman and the Commission and not on a basis which includes any subsidy beyond those actual costs. In no event may the fees required to be paid pursuant to this section exceed $3 per unit.

      4.  The Division shall impose an administrative penalty against an association or master association that violates the provisions of this section by failing to pay the fees owed by the association or master association within the times established by the Division. The administrative penalty that is imposed for each violation must equal 10 percent of the amount of the fees owed by the association or master association or $500, whichever amount is less. The amount of the unpaid fees owed by the association or master association bears interest at the rate set forth in NRS 99.040 from the date the fees are due until the date the fees are paid in full.

      5.  A unit’s owner may not be required to pay any portion of the fees or any administrative penalties or interest required to be paid pursuant to this section to both an association and a master association.

      6.  An association that is subject to the governing documents of a master association may not be required to pay any portion of the fees or any administrative penalties or interest required to be paid pursuant to this section to the extent they have already been paid by the master association.

      7.  A master association may not be required to pay any portion of the fees or any administrative penalties or interest required to be paid pursuant to this section to the extent they have already been paid by an association that is subject to the governing documents of the master association.

      8.  Upon the payment of the fees and any administrative penalties and interest required by this section, the Administrator shall provide to the association or master association evidence that it paid the fees and the administrative penalties and interest in compliance with this section.

      9.  Any person, association or master association which has been requested or required to pay any fees, administrative penalties or interest pursuant to this section and which believes that such fees, administrative penalties or interest has been imposed in error may, without exhausting any available administrative remedies, bring an action in a court of competent jurisdiction to recover:

      (a) Any amount paid in error for any fees, administrative penalties or interest during the immediately preceding 3 years;

      (b) Interest on the amount paid in error at the rate set forth in NRS 99.040; and

      (c) Reasonable costs and attorney’s fees.

      Sec. 23.  (Deleted by amendment.)

      Sec. 23.5.  NRS 116.31175 is hereby amended to read as follows:

      116.31175  1.  Except as otherwise provided in this subsection, the executive board of an association shall, upon the written request of a unit’s owner, make available the books, records and other papers of the association for review during the regular working hours of the association, including, without limitation, all contracts to which the association is a party and all records filed with a court relating to a civil or criminal action to which the association is a party.

 


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ê2009 Statutes of Nevada, Page 2895 (Chapter 491, SB 182)ê

 

records filed with a court relating to a civil or criminal action to which the association is a party. The provisions of this subsection do not apply to:

      (a) The personnel records of the employees of the association, except for those records relating to the number of hours worked and the salaries and benefits of those employees; and

      (b) The records of the association relating to another unit’s owner, except for those records described in subsection 2 . [; and

      (c) A contract between the association and an attorney.]

      2.  The executive board of an association shall maintain a general record concerning each violation of the governing documents, other than a violation involving a failure to pay an assessment, for which the executive board has imposed a fine, a construction penalty or any other sanction. The general record:

      (a) Must contain a general description of the nature of the violation and the type of the sanction imposed. If the sanction imposed was a fine or construction penalty, the general record must specify the amount of the fine or construction penalty.

      (b) Must not contain the name or address of the person against whom the sanction was imposed or any other personal information which may be used to identify the person or the location of the unit, if any, that is associated with the violation.

      (c) Must be maintained in an organized and convenient filing system or data system that allows a unit’s owner to search and review the general records concerning violations of the governing documents.

      3.  If the executive board refuses to allow a unit’s owner to review the books, records or other papers of the association, the Ombudsman may:

      (a) On behalf of the unit’s owner and upon written request, review the books, records or other papers of the association during the regular working hours of the association; and

      (b) If he is denied access to the books, records or other papers, request the Commission, or any member thereof acting on behalf of the Commission, to issue a subpoena for their production.

      4.  The books, records and other papers of an association must be maintained for at least 10 years. The provisions of this subsection do not apply to:

      (a) The minutes of a meeting of the units’ owners which must be maintained in accordance with NRS 116.3108; or

      (b) The minutes of a meeting of the executive board which must be maintained in accordance with NRS 116.31083.

      5.  The executive board shall not require a unit’s owner to pay an amount in excess of $10 per hour to review any books, records, contracts or other papers of the association pursuant to the provisions of this section.

      Sec. 24.  NRS 116.31183 is hereby amended to read as follows:

      116.31183  An executive board, a member of an executive board , a community manager or an officer, employee or agent of an association shall not take, or direct or encourage another person to take, any retaliatory action against a unit’s owner because the unit’s owner has:

      1.  Complained in good faith about any alleged violation of any provision of this chapter or the governing documents of the association;

      2.  Recommended the selection or replacement of an attorney, community manager or vendor; or

 


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ê2009 Statutes of Nevada, Page 2896 (Chapter 491, SB 182)ê

 

      [2.]  3.  Requested in good faith to review the books, records or other papers of the association.

      Sec. 25.  NRS 116.31187 is hereby amended to read as follows:

      116.31187  1.  Except as otherwise provided in this section, a member of an executive board or an officer of an association shall not:

      (a) On or after October 1, 2003, enter into a contract or renew a contract with the association to provide financing, goods or services to the association; or

      (b) Otherwise accept any commission, personal profit or compensation of any kind from the association for providing financing, goods or services to the association.

      2.  The provisions of this section do not prohibit a declarant, an affiliate of a declarant or an officer, employee or agent of a declarant or an affiliate of a declarant from:

      (a) Receiving any commission, personal profit or compensation from the association, the declarant or an affiliate of the declarant for any financing, goods or services furnished to the association;

      (b) Entering into contracts with the association, the declarant or affiliate of the declarant; or

      (c) Serving as a member of the executive board or as an officer of the association.

      Sec. 26.  NRS 116.325 is hereby amended to read as follows:

      116.325  1.  The executive board shall not and the governing documents must not prohibit a unit’s owner or an occupant of a unit from exhibiting [a political sign] one or more political signs within such physical portion of the common-interest community as that owner or occupant has a right to occupy and use exclusively [if the political sign is] , subject to the following conditions:

      (a) All political signs exhibited must not be larger than 24 inches by 36 inches.

      (b) If the unit is occupied by a tenant, the unit’s owner may not exhibit any political sign unless the tenant consents, in writing, to the exhibition of the political sign.

      (c) All political signs exhibited are subject to any applicable provisions of law governing the posting of political signs.

      (d) A unit’s owner or an occupant of a unit may exhibit as many political signs as desired, but may not exhibit more than one political sign for each candidate, political party or ballot question.

      2.  The provisions of this section establish the minimum rights of a unit’s owner or an occupant of a unit to exhibit [a] political [sign.] signs. The provisions of this section do not preempt any provisions of the governing documents that provide greater rights and do not require the governing documents or the executive board to impose any restrictions on the exhibition of political signs other than those established by other provisions of law.

      3.  As used in this section, “political sign” means a sign that expresses support for or opposition to a candidate, political party or ballot question [.] in any federal, state or local election or any election of an association.

      Sec. 27.  NRS 116.330 is hereby amended to read as follows:

      116.330  1.  The executive board shall not and the governing documents must not prohibit a unit’s owner from installing or maintaining drought tolerant landscaping within such physical portion of the common-interest community as that owner has a right to occupy and use exclusively, including, without limitation, the front yard or back yard of the unit’s owner, except that:

 


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ê2009 Statutes of Nevada, Page 2897 (Chapter 491, SB 182)ê

 

common-interest community as that owner has a right to occupy and use exclusively, including, without limitation, the front yard or back yard of the unit’s owner, except that:

      (a) Before installing drought tolerant landscaping, the unit’s owner must submit a detailed description or plans for the drought tolerant landscaping for architectural review and approval in accordance with the procedures, if any, set forth in the governing documents of the association; and

      (b) The drought tolerant landscaping must be selected or designed to the maximum extent practicable to be compatible with the style of the common-interest community.

Ê The provisions of this subsection must be construed liberally in favor of effectuating the purpose of encouraging the use of drought tolerant landscaping, and the executive board shall not and the governing documents must not unreasonably deny or withhold approval for the installation of drought tolerant landscaping or unreasonably determine that the drought tolerant landscaping is not compatible with the style of the common-interest community.

      2.  Installation of drought tolerant landscaping within any common element or conversion of traditional landscaping or cultivated vegetation, such as turf grass, to drought tolerant landscaping within any common element shall not be deemed to be a change of use of the common element unless:

      (a) The common element has been designated as a park, open play space or golf course on a recorded plat map; or

      (b) The traditional landscaping or cultivated vegetation is required by a governing body under the terms of any applicable zoning ordinance, permit or approval or as a condition of approval of any final subdivision map.

      3.  As used in this section, “drought tolerant landscaping” means landscaping which conserves water, protects the environment and is adaptable to local conditions. The term includes, without limitation, the use of mulches such as decorative rock and artificial turf.

      Sec. 28.  NRS 116.345 is hereby amended to read as follows:

      116.345  1.  An association of a planned community may not restrict, prohibit or otherwise impede the lawful residential use of any property that is within or encompassed by the boundaries of the planned community and that is not designated as part of the planned community.

      2.  Except as otherwise provided in this subsection, an association may not restrict the access of a person to any of his property. An association may restrict access to and from a unit within a planned community if the right to restrict such access was included in the declaration or in a separate recorded instrument at the time that the owner of the unit acquired title to the unit. The provisions of this subsection do not prohibit an association from charging the owner of the property a reasonable and nondiscriminatory fee to operate or maintain a gate or other similar device designed to control access to the planned community that would otherwise impede ingress or egress to the property.

      3.  An association may not expand, construct or situate a building or structure that is not part of any plat or plan of the planned community if the expansion, construction or situation of the building or structure was not previously disclosed to the units’ owners of the planned community unless the association obtains the written consent of a majority of the units’ owners and residents of the planned community who own property or reside within 500 feet of the proposed location of the building or structure.

 


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and residents of the planned community who own property or reside within 500 feet of the proposed location of the building or structure.

      4.  An association may not interrupt any utility service furnished to a unit’s owner or a tenant of a unit’s owner except for the nonpayment of utility charges when due. The interruption of any utility service pursuant to this subsection must be performed in a manner which is consistent with all laws, regulations and governing documents relating to the interruption of any utility service. An association shall in every case send a written notice of its intent to interrupt any utility service to the unit’s owner or the tenant of the unit’s owner at least 10 days before the association interrupts any utility service.

      5.  The provisions of this section do not abrogate any easement, restrictive covenant, decision of a court, agreement of a party or any contract, governing document or declaration of covenants, conditions and restrictions, or any other decision, rule or regulation that a local governing body or other entity that makes decisions concerning land use or planning is authorized to make or enact that exists before October 1, 1999, including, without limitation, a zoning ordinance, permit or approval process or any other requirement of a local government or other entity that makes decisions concerning land use or planning.

      Sec. 29.  NRS 116.4117 is hereby amended to read as follows:

      116.4117  1.  [If] Subject to the requirements set forth in subsection 2, if a declarant , community manager or any other person subject to this chapter fails to comply with any of its provisions or any provision of the declaration or bylaws, any person or class of persons suffering actual damages from the failure to comply [has a claim] may bring a civil action for damages or other appropriate relief.

      2.  Subject to the requirements set forth in NRS 38.310 and except as otherwise provided in NRS 116.3111, a civil action for damages [caused by] or other appropriate relief for a failure or refusal to comply with any provision of this chapter or the governing documents of an association may be brought:

      (a) By the association against:

            (1) A declarant; [or]

            (2) A community manager; or

            (3) A unit’s owner.

      (b) By a unit’s owner against:

            (1) The association;

            (2) A declarant; or

            (3) Another unit’s owner of the association.

      (c) By a class of units’ owners constituting at least 10 percent of the total number of voting members of the association against a community manager.

      3.  [Punitive] Except as otherwise provided in NRS 116.31036, punitive damages may be awarded for a willful and material failure to comply with any provision of this chapter if the failure is established by clear and convincing evidence.

      4.  The court may award reasonable attorney’s fees to the prevailing party.

      5.  The civil remedy provided by this section is in addition to, and not exclusive of, any other available remedy or penalty.

 


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ê2009 Statutes of Nevada, Page 2899 (Chapter 491, SB 182)ê

 

      Sec. 30.  NRS 116.600 is hereby amended to read as follows:

      116.600  1.  The Commission for Common-Interest Communities and Condominium Hotels is hereby created.

      2.  The Commission consists of [five] seven members appointed by the Governor. The Governor shall appoint to the Commission:

      (a) One member who is a unit’s owner residing in this State and who has served as a member of an executive board in this State;

      (b) Two members who are units’ owners residing in this State but who are not required to have served as members of an executive board;

      (c) One member who is in the business of developing common-interest communities in this State;

      [(c)] (d) One member who holds a certificate;

      [(d)] (e) One member who is a certified public accountant licensed to practice in this State pursuant to the provisions of chapter 628 of NRS; and

      [(e)] (f) One member who is an attorney licensed to practice in this State.

      3.  Each member of the Commission must be a resident of this State. At least [three] four members of the Commission must be residents of a county whose population is 400,000 or more.

      4.  Each member of the Commission must have resided in a common-interest community or have been actively engaged in a business or profession related to common-interest communities for not less than 3 years immediately preceding the date of his appointment.

      5.  After the initial terms, each member of the Commission serves a term of 3 years. Each member may serve not more than two consecutive full terms. If a vacancy occurs during a member’s term, the Governor shall appoint a person qualified under this section to replace the member for the remainder of the unexpired term.

      6.  While engaged in the business of the Commission, each member is entitled to receive:

      (a) A salary of not more than $80 per day, as established by the Commission; and

      (b) The per diem allowance and travel expenses provided for state officers and employees generally.

      Sec. 31.  NRS 116.605 is hereby amended to read as follows:

      116.605  1.  The Division shall employ one or more training officers who are qualified by training and experience to provide [or arrange to have provided] to each member of the Commission courses of instruction concerning rules of procedure and substantive law appropriate for members of the Commission. Such courses of instruction may be made available to the staff of the Division as well as to community managers.

      2.  The training officer shall:

      (a) Prepare and make available a manual containing the policies and procedures to be followed by executive boards and community managers; and

      (b) Perform any other duties as directed by the Division.

      3.  Each member of the Commission must attend the courses of instruction described in subsection 1 not later than 6 months after the date that the member is first appointed to the Commission.

      Sec. 32.  NRS 116.675 is hereby amended to read as follows:

      116.675  1.  The Commission may appoint one or more hearing panels. Each hearing panel must consist of one or more independent hearing officers.

 


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ê2009 Statutes of Nevada, Page 2900 (Chapter 491, SB 182)ê

 

An independent hearing officer may be, without limitation, a member of the Commission or an employee of the Commission.

      2.  The Commission may by regulation delegate to one or more hearing panels the power of the Commission to conduct hearings and other proceedings, determine violations, impose fines and penalties and take other disciplinary action authorized by the provisions of this chapter.

      3.  While acting under the authority of the Commission, a hearing panel and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the Commission and its members.

      4.  A final order of a hearing panel:

      (a) May be appealed to the Commission if, not later than 20 days after the date that the final order is issued by the hearing panel, any party aggrieved by the final order files a written notice of appeal with the Commission.

      (b) Must be reviewed and approved by the Commission if, not later than 40 days after the date that the final order is issued by the hearing panel, the Division, upon the direction of the Chairman of the Commission, provides written notice to all parties of the intention of the Commission to review the final order.

      Sec. 33.  NRS 116.757 is hereby amended to read as follows:

      116.757  1.  Except as otherwise provided in this section and NRS 239.0115, a written affidavit filed with the Division pursuant to NRS 116.760, all documents and other information filed with the written affidavit and all documents and other information compiled as a result of an investigation conducted to determine whether to file a formal complaint with the Commission are confidential. The Division shall not disclose any information that is confidential pursuant to this subsection, in whole or in part, to any person, including, without limitation, a person who is the subject of an investigation or complaint, unless and until a formal complaint is filed pursuant to subsection 2 and the disclosure is required pursuant to subsection 2.

      2.  A formal complaint filed by the Administrator with the Commission and all documents and other information considered by the Commission or a hearing panel when determining whether to impose discipline or take other administrative action pursuant to NRS 116.745 to 116.795, inclusive, are public records.

      Secs. 34 and 35.  (Deleted by amendment.)

      Sec. 36.  NRS 116.790 is hereby amended to read as follows:

      116.790  1.  If the Commission or a hearing panel, after notice and hearing, finds that the executive board or any person acting on behalf of the association has committed a violation, the Commission or the hearing panel may take any or all of the following actions:

      (a) Order an audit of the association [.] , at the expense of the association.

      (b) Require the executive board to hire a community manager who holds a certificate.

      2.  The Commission, or the Division with the approval of the Commission, may apply to a court of competent jurisdiction for the appointment of a receiver for an association if, after notice and a hearing, the Commission or a hearing officer finds that any of the following violations occurred:

 


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      (a) The executive board, or any member thereof, has been guilty of fraud or collusion or gross mismanagement in the conduct or control of its affairs;

      (b) The executive board, or any member thereof, has been guilty of misfeasance, malfeasance or nonfeasance; or

      (c) The assets of the association are in danger of waste or loss through attachment, foreclosure, litigation or otherwise.

      3.  In any application for the appointment of a receiver pursuant to this section, notice of a temporary appointment of a receiver may be given to the association alone, by process as in the case of an application for a temporary restraining order or injunction. The hearing thereon may be had after 5 days’ notice unless the court directs a longer or different notice and different parties.

      4.  The court may, if good cause exists, appoint one or more receivers pursuant to this section to carry out the business of the association. The members of the executive board who have not been guilty of negligence or active breach of duty must be preferred in making the appointment.

      5.  The powers of any receiver appointed pursuant to this section may be continued as long as the court deems necessary and proper. At any time, for sufficient cause, the court may order the receivership terminated.

      6.  Any receiver appointed pursuant to this section has, among the usual powers, all the functions, powers, tenure and duties to be exercised under the direction of the court as are conferred on receivers and as provided in NRS 78.635, 78.640 and 78.645, whether or not the association is insolvent. Such powers include, without limitation, the powers to:

      (a) Take charge of the estate and effects of the association;

      (b) Appoint an agent or agents;

      (c) Collect any debts and property due and belonging to the association and prosecute and defend, in the name of the association, or otherwise, any civil action as may be necessary or proper for the purposes of collecting debts and property;

      (d) Perform any other act in accordance with the governing documents of the association and this chapter that may be necessary for the association to carry out its obligations; and

      (e) By injunction, restrain the association from exercising any of its powers or doing business in any way except by and through a receiver appointed by the court.

      Sec. 37.  NRS 116A.270 is hereby amended to read as follows:

      116A.270  1.  Except as otherwise provided in this section and NRS 239.0115, a complaint filed with the Division alleging a violation of this chapter or chapter 116 or 116B of NRS, all documents and other information filed with the complaint and all documents and other information compiled as a result of an investigation conducted to determine whether to initiate disciplinary action are confidential . [and may be disclosed]

      2.  The Division shall not disclose any information that is confidential pursuant to subsection 1, in whole or in part [only] , to any person, including, without limitation, a person who is the subject of an investigation or complaint, unless and until a formal complaint is filed pursuant to subsection 3 and the disclosure is required pursuant to subsection 3, except that the Division may disclose the information described in subsection 1 as necessary in the course of administering this chapter or to a licensing board or agency or any other governmental agency, including, without limitation, a law enforcement agency, that is investigating a person who holds a certificate or permit issued pursuant to this chapter.

 


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      [2.] 3.  The formal complaint or other charging documents filed by the Administrator with the Commission to initiate disciplinary action and all documents and other information considered by the Commission or a hearing panel when determining whether to impose discipline are public records.

      Sec. 38.  NRS 116A.300 is hereby amended to read as follows:

      116A.300  1.  The Commission may appoint one or more hearing panels. Each hearing panel must consist of one or more independent hearing officers. An independent hearing officer may be, without limitation, a member of the Commission or an employee of the Commission.

      2.  The Commission may by regulation delegate to one or more hearing panels the power of the Commission to conduct hearings and other proceedings, determine violations, impose fines and penalties and take other disciplinary action authorized by the provisions of this chapter.

      3.  While acting under the authority of the Commission, a hearing panel and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the Commission and its members.

      4.  A final order of a hearing panel:

      (a) May be appealed to the Commission if, not later than 20 days after the date that the final order is issued by the hearing panel, any party aggrieved by the final order files a written notice of appeal with the Commission.

      (b) Must be reviewed and approved by the Commission if, not later than 40 days after the date that the final order is issued by the hearing panel, the Division, upon the direction of the Chairman of the Commission, provides written notice to all parties of the intention of the Commission to review the final order.

      Sec. 39.  NRS 116A.410 is hereby amended to read as follows:

      116A.410  1.  The Commission shall by regulation provide for the issuance by the Division of certificates. The regulations:

      (a) Must establish the qualifications for the issuance of such a certificate, including, without limitation, the education and experience required to obtain such a certificate. The regulations must include, without limitation, provisions that:

            (1) Provide for the issuance of a temporary certificate for a 1-year period to a person who:

                  (I) Holds a professional designation in the field of management of a common-interest community from a nationally recognized organization;

                  (II) Provides evidence that the person has been engaged in the management of a common-interest community for at least 5 years; and

                  (III) Has not been the subject of any disciplinary action in another state in connection with the management of a common-interest community.

            (2) Except as otherwise provided in subparagraph (3), provide for the issuance of a temporary certificate for a 1-year period to a person who:

                  (I) Receives an offer of employment as a community manager from an association or its agent; and

                  (II) Has management experience determined to be sufficient by the executive board of the association or its agent making the offer in sub-subparagraph (I). The executive board or its agent must have sole discretion to make the determination required in this sub-subparagraph.

 


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            (3) Require a temporary certificate described in subparagraph (2) to expire before the end of the 1-year period if the certificate holder ceases to be employed by the association, or its agent, which offered him employment as described in subparagraph (2).

            (4) Require a person who is issued a temporary certificate as described in subparagraph (1) or (2) to successfully complete not less than 18 hours of instruction relating to the Uniform Common-Interest Ownership Act within the 1-year period.

            (5) Provide for the issuance of a certificate at the conclusion of the 1-year period if the person:

                  (I) Has successfully completed not less than 18 hours of instruction relating to the Uniform Common-Interest Ownership Act; and

                  (II) Has not been the subject of any disciplinary action pursuant to this chapter or chapter 116 of NRS or any regulations adopted pursuant thereto.

            (6) Provide that a temporary certificate described in subparagraph (1) or (2), and a certificate described in subparagraph (5):

                  (I) Must authorize the person who is issued a temporary certificate described in subparagraph (1) or (2) or certificate described in subparagraph (5) to act in all respects as a community manager and exercise all powers available to any other community manager without regard to experience; and

                  (II) Must not be treated as a limited, restricted or provisional form of a certificate.

      (b) Must require an applicant or the employer of the applicant to post a bond in a form and in an amount established by regulation. The Commission shall, by regulation, adopt a sliding scale for the amount of the bond that is based upon the amount of money that applicants are expected to control. In adopting the regulations establishing the form and sliding scale for the amount of a bond required to be posted pursuant to this paragraph, the Commission shall consider the availability and cost of such bonds.

      (c) May require applicants to pass an examination in order to obtain a certificate [.] other than a temporary certificate described in paragraph (a). If the regulations require such an examination, the Commission shall by regulation establish fees to pay the costs of the examination, including any costs which are necessary for the administration of the examination.

      [(c)] (d) May require an investigation of an applicant’s background. If the regulations require such an investigation, the Commission shall by regulation establish fees to pay the costs of the investigation.

      [(d)] (e) Must establish the grounds for initiating disciplinary action against a person to whom a certificate has been issued, including, without limitation, the grounds for placing conditions, limitations or restrictions on a certificate and for the suspension or revocation of a certificate.

      [(e)] (f) Must establish rules of practice and procedure for conducting disciplinary hearings.

      2.  The Division may collect a fee for the issuance of a certificate in an amount not to exceed the administrative costs of issuing the certificate.

      3.  As used in this section, “management experience” means experience in a position in business or government, including, without limitation, in the military:

 


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      (a) In which the person holding the position was required, as part of holding the position, to engage in one or more management activities, including, without limitation, supervision of personnel, development of budgets or financial plans, protection of assets, logistics, management of human resources, development or training of personnel, public relations, or protection or maintenance of facilities; and

      (b) Without regard to whether the person holding the position has any experience managing or otherwise working for an association.

      Sec. 40.  NRS 38.330 is hereby amended to read as follows:

      38.330  1.  If all parties named in a written claim filed pursuant to NRS 38.320 agree to have the claim submitted for mediation, the parties shall reduce the agreement to writing and shall select a mediator from the list of mediators maintained by the Division pursuant to NRS 38.340. Any mediator selected must be available within the geographic area. If the parties fail to agree upon a mediator, the Division shall appoint a mediator from the list of mediators maintained by the Division. Any mediator appointed must be available within the geographic area. Unless otherwise provided by an agreement of the parties, mediation must be completed within 60 days after the parties agree to mediation. Any agreement obtained through mediation conducted pursuant to this section must, within 20 days after the conclusion of mediation, be reduced to writing by the mediator and a copy thereof provided to each party. The agreement may be enforced as any other written agreement. Except as otherwise provided in this section, the parties are responsible for all costs of mediation conducted pursuant to this section.

      2.  If all the parties named in the claim do not agree to mediation, the parties shall select an arbitrator from the list of arbitrators maintained by the Division pursuant to NRS 38.340. Any arbitrator selected must be available within the geographic area. If the parties fail to agree upon an arbitrator, the Division shall appoint an arbitrator from the list maintained by the Division. Any arbitrator appointed must be available within the geographic area. Upon appointing an arbitrator, the Division shall provide the name of the arbitrator to each party. An arbitrator shall, not later than 5 days after his selection or appointment pursuant to this subsection, provide to the parties an informational statement relating to the arbitration of a claim pursuant to this section. The written informational statement:

      (a) Must be written in plain English;

      (b) Must explain the procedures and applicable law relating to the arbitration of a claim conducted pursuant to this section, including, without limitation, the procedures, timelines and applicable law relating to confirmation of an award pursuant to NRS 38.239, vacation of an award pursuant to NRS 38.241, judgment on an award pursuant to NRS 38.243, and any applicable statute or court rule governing the award of attorney’s fees or costs to any party; and

      (c) Must be accompanied by a separate form acknowledging that the party has received and read the informational statement, which must be returned to the arbitrator by the party not later than 10 days after receipt of the informational statement.

      3.  The Division may provide for the payment of the fees for a mediator or an arbitrator selected or appointed pursuant to this section from the Account for Common-Interest Communities and Condominium Hotels created by NRS 116.630, to the extent that:

 


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      (a) The Commission for Common-Interest Communities and Condominium Hotels approves the payment; and

      (b) There is money available in the account for this purpose.

      4.  Except as otherwise provided in this section and except where inconsistent with the provisions of NRS 38.300 to 38.360, inclusive, the arbitration of a claim pursuant to this section must be conducted in accordance with the provisions of NRS 38.231, 38.232, 38.233, 38.236 to 38.239, inclusive, 38.242 and 38.243. At any time during the arbitration of a claim relating to the interpretation, application or enforcement of any covenants, conditions or restrictions applicable to residential property or any bylaws, rules or regulations adopted by an association, the arbitrator may issue an order prohibiting the action upon which the claim is based. An award must be made within 30 days after the conclusion of arbitration, unless a shorter period is agreed upon by the parties to the arbitration.

      5.  If all the parties have agreed to nonbinding arbitration, any party to the nonbinding arbitration may, within 30 days after a decision and award have been served upon the parties, commence a civil action in the proper court concerning the claim which was submitted for arbitration. Any complaint filed in such an action must contain a sworn statement indicating that the issues addressed in the complaint have been arbitrated pursuant to the provisions of NRS 38.300 to 38.360, inclusive. If such an action is not commenced within that period, any party to the arbitration may, within 1 year after the service of the award, apply to the proper court for a confirmation of the award pursuant to NRS 38.239.

      6.  If all the parties agree in writing to binding arbitration, the arbitration must be conducted in accordance with the provisions of this chapter. An award procured pursuant to such binding arbitration may be vacated and a rehearing granted upon application of a party pursuant to the provisions of NRS 38.241.

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

      (a) Applies to have an award vacated and a rehearing granted pursuant to NRS 38.241; or

      (b) Commences a civil action based upon any claim which was the subject of arbitration,

Ê the party shall, if he fails to obtain a more favorable award or judgment than that which was obtained in the initial binding arbitration, pay all costs and reasonable attorney’s fees incurred by the opposing party after the application for a rehearing was made or after the complaint in the civil action was filed.

      8.  Upon request by a party, the Division shall provide a statement to the party indicating the amount of the fees for a mediator or an arbitrator selected or appointed pursuant to this section.

      9.  As used in this section, “geographic area” means an area within 150 miles from any residential property or association which is the subject of a written claim submitted pursuant to NRS 38.320.

      Sec. 41.  The Governor shall appoint to the Commission for Common-Interest Communities and Condominium Hotels pursuant to NRS 116.600, as amended by section 30 of this act:

      1.  One member who is a unit’s owner residing in this State whose term begins on October 1, 2009, and expires on October 1, 2010; and

      2.  One member who is a unit’s owner residing in this State whose term begins on October 1, 2009, and expires on October 1, 2011.

 


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      Sec. 42.  The manual described in subsection 2 of NRS 116.605, as amended by section 31 of this act, must be prepared and made available by October 1, 2010.

      Sec. 43.  1.  This section becomes effective upon passage and approval.

      2.  Section 39 of this act becomes effective:

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On January 1, 2010, for all other purposes.

      3.  Sections 1 to 38, inclusive, 40, 41 and 42 of this act become effective on October 1, 2009.

________

 

CHAPTER 492, SB 183

Senate Bill No. 183–Senator Schneider

 

CHAPTER 492

 

AN ACT relating to common-interest communities; revising provisions concerning voting rights exercised by delegates or representatives; prohibiting an association in a common-interest community from imposing an assessment against the owners of certain tax-exempt property; clarifying various provisions governing common-interest communities; making various other changes to the provisions governing common-interest communities; and providing other matters properly relating thereto.

 

[Approved: June 9, 2009]

 

Legislative Counsel’s Digest:

      Section 3 of this bill provides additional ethical requirements for members of an executive board by requiring a member who stands to gain any personal profit or compensation from a matter before the executive board to disclose the matter to the executive board and to abstain from voting on the matter. (NRS 116.31185, 116.31187)

      Section 5.5 of this bill authorizes the Commission for Common-Interest Communities and Condominium Hotels, or the Administrator of the Real Estate Division of the Department of Business and Industry with the Commission’s approval, to adopt regulations to require any additional disclosures in the sale of a unit as the Commission deems necessary.

      Under existing law, a common-interest community created before January 1, 1992, and a common-interest community, with a declaration so providing, that consists of at least 1,000 units, may have the voting rights of the units’ owners in the association for that common-interest community be exercised by delegates or representatives. (NRS 116.1201, 116.31105) Sections 8, 14, 15, 18, 20 and 21 of this bill prohibit the use of delegates or representatives to exercise the voting rights of units’ owners in the election or removal of a member of the executive board. Also, sections 9 and 22 of this bill provide that this form of voting may occur only during the period that the declarant is in control of the association and during the 2-year period after the declarant’s control of the association is terminated. A master association which governs a time-share plan created pursuant to chapter 119A of NRS is excluded from these new provisions and is allowed to continue using delegates or representatives to exercise the voting rights of owners of time shares. A master association which governs a planned community that is exempt from the provisions of chapter 116 of NRS is also excluded from these new provisions.

 


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      Section 11 of this bill prohibits an association from imposing an assessment against the owner of any property in the common-interest community that is exempt from taxation pursuant to NRS 361.125. Section 46 of this bill provides that this prohibition applies to such owners who are not obligated to pay assessments as of January 1, 2009.

      Section 12 of this bill provides that: (1) a unit’s owner must receive notice of a violation and possible fine; (2) an association may not impose a fine against a unit’s owner or tenant of a unit’s owner for a vehicular violation of the governing documents committed by a person delivering goods to, or performing services for, a unit’s owner or tenant of a unit’s owner; (3) a member of the executive board cannot participate in hearings on fines if he has not paid his assessments; and (4) the association must provide written confirmation when a fine is paid. (NRS 116.31031)

      Section 13 of this bill requires an association to establish an account for a unit owner’s payments for fines, which must be kept separate from any account established for assessments. (NRS 116.310315)

      Section 14 of this bill increases the maximum term of office for a member of an executive board from 2 years to 3 years. (NRS 116.31034) Section 14 also provides that an association is not obligated to distribute any disclosure made by a candidate for the executive board if the disclosure contains information that is believed to be defamatory, libelous or profane.

      Section 16 of this bill requires that a declarant deliver to an association an ancillary audit of the association’s money and audited financial statements from the date of the last audit until the date the declarant’s control ends. (NRS 116.31038) Section 16 also requires the declarant to pay for the costs of the ancillary audit.

      Sections 35-37 and 39-44 of this bill eliminate the issuance of permits to reserve study specialists and instead provide for their registration. (NRS 116.750, 116A.120, 116A.260, 116A.420-116A.900)

      Section 19 of this bill lengthens the period between which meetings of the executive board must be held from every 90 days to every quarter, but not less than every 100 days. (NRS 116.31083)

      Existing law requires certain signatures before money in the reserve account of an association may be withdrawn. (NRS 116.31153) Section 26 of this bill also requires certain signatures before money in the operating account of an association may be withdrawn, unless the withdrawal is to transfer money to the reserve account or to make automatic payments for utilities.

      Section 28 of this bill excludes the books, records and other papers of the association which are in the process of being developed and have not yet been placed on an agenda for final approval by the executive board from the material which the board must make available upon the written request of a unit’s owner. (NRS 116.31175) Section 28 also provides that if an official publication contains any mention of a candidate or ballot question or contains the views or opinions of the association concerning an issue of official interest, the official publication must, upon request, provide equal space and equivalent exposure to opposing views and opinions. In addition, section 28 provides immunity from criminal or civil liability for an association and its officers, employees and agents who publish or disclose information pursuant to the duties imposed by this section.

      Section 29 of this bill expands the prohibition against certain contracts between an association and a member of the executive board or officer to include contracts involving financing. (NRS 116.31187)

      Section 31 of this bill provides additional rights to units’ owners by mandating notice before an association may interrupt utility service to a unit’s owner. (NRS 116.345)

      Section 34 of this bill deems deposits made in connection with the purchase or reservation of units from a person required to deliver a public offering statement placed in out-of-state escrow companies as being deposited in this State if the escrow holder has a legal right to conduct business in the State, has a registered agent in this State and has consented to the jurisdiction of the courts of this State. (NRS 116.411)

 


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THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  (Deleted by amendment.)

      Sec. 2.  Chapter 116 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 6, inclusive, of this act.

      Sec. 3.  1.  A member of an executive board who stands to gain any personal profit or compensation of any kind from a matter before the executive board shall:

      (a) Disclose the matter to the executive board; and

      (b) Abstain from voting on any such matter.

      2.  For the purposes of this section:

      (a) An employee of a declarant or an affiliate of a declarant who is a member of the executive board shall not, solely by reason of such employment or affiliation, be deemed to gain any personal profit or compensation.

      (b) A member of an executive board shall not be deemed to gain any personal profit or compensation solely because the member of the executive board is the owner of a unit in the common-interest community.

      Secs. 4 and 5.  (Deleted by amendment.)

      Sec. 5.5.  The Commission, or the Administrator with the approval of the Commission, may adopt regulations to require any additional disclosures in the case of a sale of a unit as it deems necessary.

      Secs. 6 and 7.  (Deleted by amendment.)

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

      116.1201  1.  Except as otherwise provided in this section and NRS 116.1203, this chapter applies to all common-interest communities created within this State.

      2.  This chapter does not apply to:

      (a) A limited-purpose association, except that a limited-purpose association:

            (1) Shall pay the fees required pursuant to NRS 116.31155;

            (2) Shall register with the Ombudsman pursuant to NRS 116.31158;

            (3) Shall comply with the provisions of:

                  (I) NRS 116.31038, 116.31083 and 116.31152; and

                  (II) NRS 116.31075, if the limited-purpose association is created for a rural agricultural residential common-interest community;

            (4) Shall comply with the provisions of NRS 116.4101 to 116.412, inclusive, as required by the regulations adopted by the Commission pursuant to paragraph (b) of subsection 5; and

            (5) Shall not enforce any restrictions concerning the use of units by the units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

      (b) A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter does apply to that planned community. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted only if the declaration so provides or if the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.

 


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      (c) Common-interest communities or units located outside of this State, but the provisions of NRS 116.4102 to 116.4108, inclusive, apply to all contracts for the disposition thereof signed in this State by any party unless exempt under subsection 2 of NRS 116.4101.

      (d) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than 50,000, and has less than 50 percent of the units within the community put to residential use, unless a majority of the units’ owners otherwise elect in writing.

      (e) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.

      3.  The provisions of this chapter do not:

      (a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units’ owners;

      (b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;

      (c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992; [or]

      (d) Prohibit a common-interest community created before January 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of government [.] , except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives;

      (e) Prohibit a master association which governs a time-share plan created pursuant to chapter 119A of NRS from providing for a representative form of government for the time-share plan; or

      (f) Prohibit a master association which governs a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted and which is exempt from the provisions of this chapter pursuant to paragraph (b) of subsection 2 from providing for a representative form of government.

      4.  The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities.

      5.  The Commission shall establish, by regulation:

      (a) The criteria for determining whether an association, a limited-purpose association or a common-interest community satisfies the requirements for an exemption or limited exemption from any provision of this chapter; and

      (b) The extent to which a limited-purpose association must comply with the provisions of NRS 116.4101 to 116.412, inclusive.

      6.  As used in this section, “limited-purpose association” means an association that:

      (a) Is created for the limited purpose of maintaining:

            (1) The landscape of the common elements of a common-interest community;

            (2) Facilities for flood control; or

            (3) A rural agricultural residential common-interest community; and

      (b) Is not authorized by its governing documents to enforce any restrictions concerning the use of units by units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

 


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      Sec. 9.  NRS 116.1201 is hereby amended to read as follows:

      116.1201  1.  Except as otherwise provided in this section and NRS 116.1203, this chapter applies to all common-interest communities created within this State.

      2.  This chapter does not apply to:

      (a) A limited-purpose association, except that a limited-purpose association:

            (1) Shall pay the fees required pursuant to NRS 116.31155;

            (2) Shall register with the Ombudsman pursuant to NRS 116.31158;

            (3) Shall comply with the provisions of:

                  (I) NRS 116.31038, 116.31083 and 116.31152; and

                  (II) NRS 116.31075, if the limited-purpose association is created for a rural agricultural residential common-interest community;

            (4) Shall comply with the provisions of NRS 116.4101 to 116.412, inclusive, as required by the regulations adopted by the Commission pursuant to paragraph (b) of subsection 5; and

            (5) Shall not enforce any restrictions concerning the use of units by the units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

      (b) A planned community in which all units are restricted exclusively to nonresidential use unless the declaration provides that this chapter does apply to that planned community. This chapter applies to a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted only if the declaration so provides or if the real estate comprising the units that may be used for residential purposes would be a planned community in the absence of the units that may not be used for residential purposes.

      (c) Common-interest communities or units located outside of this State, but the provisions of NRS 116.4102 to 116.4108, inclusive, apply to all contracts for the disposition thereof signed in this State by any party unless exempt under subsection 2 of NRS 116.4101.

      (d) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than 50,000, and has less than 50 percent of the units within the community put to residential use, unless a majority of the units’ owners otherwise elect in writing.

      (e) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.

      3.  The provisions of this chapter do not:

      (a) Prohibit a common-interest community created before January 1, 1992, from providing for separate classes of voting for the units’ owners;

      (b) Require a common-interest community created before January 1, 1992, to comply with the provisions of NRS 116.2101 to 116.2122, inclusive;

      (c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;

      (d) [Prohibit] Except as otherwise provided in subsection 8 of NRS 116.31105, prohibit a common-interest community created before January 1, 1992, or a common-interest community described in NRS 116.31105 from providing for a representative form of government, except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives; [or]

 


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ê2009 Statutes of Nevada, Page 2911 (Chapter 492, SB 183)ê

 

      (e) Prohibit a master association which governs a time-share plan created pursuant to chapter 119A of NRS from providing for a representative form of government for the time-share plan [.] ; or

      (f) Prohibit a master association which governs a planned community containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted and which is exempt from the provisions of this chapter pursuant to paragraph (b) of subsection 2 from providing for a representative form of government.

      4.  The provisions of chapters 117 and 278A of NRS do not apply to common-interest communities.

      5.  The Commission shall establish, by regulation:

      (a) The criteria for determining whether an association, a limited-purpose association or a common-interest community satisfies the requirements for an exemption or limited exemption from any provision of this chapter; and

      (b) The extent to which a limited-purpose association must comply with the provisions of NRS 116.4101 to 116.412, inclusive.

      6.  As used in this section, “limited-purpose association” means an association that:

      (a) Is created for the limited purpose of maintaining:

            (1) The landscape of the common elements of a common-interest community;

            (2) Facilities for flood control; or

            (3) A rural agricultural residential common-interest community; and

      (b) Is not authorized by its governing documents to enforce any restrictions concerning the use of units by units’ owners, unless the limited-purpose association is created for a rural agricultural residential common-interest community.

      Sec. 10.  (Deleted by amendment.)

      Sec. 11.  NRS 116.3102 is hereby amended to read as follows:

      116.3102  1.  Except as otherwise provided in [subsection 2,] this section, and subject to the provisions of the declaration, the association may do any or all of the following:

      (a) Adopt and amend bylaws, rules and regulations.

      (b) Adopt and amend budgets for revenues, expenditures and reserves and collect assessments for common expenses from the units’ owners.

      (c) Hire and discharge managing agents and other employees, agents and independent contractors.

      (d) Institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more units’ owners on matters affecting the common-interest community.

      (e) Make contracts and incur liabilities.

      (f) Regulate the use, maintenance, repair, replacement and modification of common elements.

      (g) Cause additional improvements to be made as a part of the common elements.

      (h) Acquire, hold, encumber and convey in its own name any right, title or interest to real estate or personal property, but:

            (1) Common elements in a condominium or planned community may be conveyed or subjected to a security interest only pursuant to NRS 116.3112; and

 


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ê2009 Statutes of Nevada, Page 2912 (Chapter 492, SB 183)ê

 

            (2) Part of a cooperative may be conveyed, or all or part of a cooperative may be subjected to a security interest, only pursuant to NRS 116.3112.

      (i) Grant easements, leases, licenses and concessions through or over the common elements.

      (j) Impose and receive any payments, fees or charges for the use, rental or operation of the common elements, other than limited common elements described in subsections 2 and 4 of NRS 116.2102, and for services provided to the units’ owners.

      (k) Impose charges for late payment of assessments.

      (l) Impose construction penalties when authorized pursuant to NRS 116.310305.

      (m) Impose reasonable fines for violations of the governing documents of the association only if the association complies with the requirements set forth in NRS 116.31031.

      (n) Impose reasonable charges for the preparation and recordation of any amendments to the declaration or any statements of unpaid assessments, and impose reasonable fees, not to exceed the amounts authorized by NRS 116.4109, for preparing and furnishing the documents and certificate required by that section.

      (o) Provide for the indemnification of its officers and executive board and maintain directors’ and officers’ liability insurance.

      (p) Assign its right to future income, including the right to receive assessments for common expenses, but only to the extent the declaration expressly so provides.

      (q) Exercise any other powers conferred by the declaration or bylaws.

      (r) Exercise all other powers that may be exercised in this State by legal entities of the same type as the association.

      (s) Direct the removal of vehicles improperly parked on property owned or leased by the association, as authorized pursuant to NRS 487.038, or improperly parked on any road, street, alley or other thoroughfare within the common-interest community in violation of the governing documents. In addition to complying with the requirements of NRS 487.038 and any requirements in the governing documents, if a vehicle is improperly parked as described in this paragraph, the association must post written notice in a conspicuous place on the vehicle or provide oral or written notice to the owner or operator of the vehicle at least 48 hours before the association may direct the removal of the vehicle, unless the vehicle:

            (1) Is blocking a fire hydrant, fire lane or parking space designated for the handicapped; or

            (2) Poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community.

      (t) Exercise any other powers necessary and proper for the governance and operation of the association.

      2.  The declaration may not impose limitations on the power of the association to deal with the declarant which are more restrictive than the limitations imposed on the power of the association to deal with other persons.

      3.  Notwithstanding any provision of this chapter or the governing documents to the contrary, an association may not impose any assessment pursuant to this chapter or the governing documents on the owner of any property in the common-interest community that is exempt from taxation pursuant to NRS 361.125.

 


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ê2009 Statutes of Nevada, Page 2913 (Chapter 492, SB 183)ê

 

property in the common-interest community that is exempt from taxation pursuant to NRS 361.125. For the purposes of this subsection, “assessment” does not include any charge for any utility services, including, without limitation, telecommunications, broadband communications, cable television, electricity, natural gas, sewer services, garbage collection, water or for any other service which is delivered to and used or consumed directly by the property in the common-interest community that is exempt from taxation pursuant to NRS 361.125.

      Sec. 12.  NRS 116.31031 is hereby amended to read as follows:

      116.31031  1.  Except as otherwise provided in this section, if a unit’s owner or a tenant or [guest] invitee of a unit’s owner violates any provision of the governing documents of an association, the executive board may, if the governing documents so provide:

      (a) Prohibit, for a reasonable time, the unit’s owner or the tenant or [guest] invitee of the unit’s owner from:

            (1) Voting on matters related to the common-interest community.

            (2) Using the common elements. The provisions of this subparagraph do not prohibit the unit’s owner or the tenant or [guest] invitee of the unit’s owner from using any vehicular or pedestrian ingress or egress to go to or from the unit, including any area used for parking.

      (b) Impose a fine against the unit’s owner or the tenant or [guest] invitee of the unit’s owner for each violation, except that [a] :

            (1) A fine may not be imposed for a violation that is the subject of a construction penalty pursuant to NRS 116.310305 [.] ; and

            (2) A fine may not be imposed against a unit’s owner or a tenant or invitee of a unit’s owner for a violation of the governing documents which involves a vehicle and which is committed by a person who is delivering goods to, or performing services for, the unit’s owner or tenant or invitee of the unit’s owner.

Ê If the violation poses an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents. If the violation does not pose an imminent threat of causing a substantial adverse effect on the health, safety or welfare of the units’ owners or residents of the common-interest community, the amount of the fine must be commensurate with the severity of the violation and must be determined by the executive board in accordance with the governing documents, but the amount of the fine must not exceed $100 for each violation or a total amount of $1,000, whichever is less. The limitations on the amount of the fine do not apply to any interest, charges or costs that may be collected by the association pursuant to this section if the fine becomes past due.

      2.  The executive board may not impose a fine pursuant to subsection 1 unless:

      (a) Not less than 30 days before the violation, the unit’s owner and, if different, the person against whom the fine will be imposed had been provided with written notice of the applicable provisions of the governing documents that form the basis of the violation; and

      (b) Within a reasonable time after the discovery of the violation, the unit’s owner and, if different, the person against whom the fine will be imposed has been provided with:

 


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ê2009 Statutes of Nevada, Page 2914 (Chapter 492, SB 183)ê

 

            (1) Written notice specifying the details of the violation, the amount of the fine, and the date, time and location for a hearing on the violation; and

            (2) A reasonable opportunity to contest the violation at the hearing.

Ê For the purposes of this subsection, a unit’s owner shall not be deemed to have received written notice unless written notice is mailed to the address of the unit and, if different, to a mailing address specified by the unit’s owner.

      3.  The executive board must schedule the date, time and location for the hearing on the violation so that the unit’s owner and, if different, the person against whom the fine will be imposed is provided with a reasonable opportunity to prepare for the hearing and to be present at the hearing.

      4.  The executive board must hold a hearing before it may impose the fine, unless the fine is paid before the hearing or unless the unit’s owner and, if different, the person against whom the fine will be imposed:

      (a) [Pays the fine;

      (b)] Executes a written waiver of the right to the hearing; or

      [(c)] (b) Fails to appear at the hearing after being provided with proper notice of the hearing.

      5.  If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days, or within any longer period that may be established by the executive board, the violation shall be deemed a continuing violation. Thereafter, the executive board may impose an additional fine for the violation for each 7-day period or portion thereof that the violation is not cured. Any additional fine may be imposed without notice and an opportunity to be heard.

      6.  If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to conduct hearings on violations and to impose fines pursuant to this section. While acting on behalf of the executive board for those limited purposes, the committee and its members are entitled to all privileges and immunities and are subject to all duties and requirements of the executive board and its members.

      7.  A member of the executive board shall not participate in any hearing or cast any vote relating to a fine imposed pursuant to subsection 1 if the member has not paid all assessments which are due to the association by the member. If a member of the executive board:

      (a) Participates in a hearing in violation of this subsection, any action taken at the hearing is void.

      (b) Casts a vote in violation of this subsection, the vote is void.

      8.  The provisions of this section establish the minimum procedural requirements that the executive board must follow before it may impose a fine. The provisions of this section do not preempt any provisions of the governing documents that provide greater procedural protections.

      [8.] 9.  Any past due fine:

      (a) Bears interest at the rate established by the association, not to exceed the legal rate per annum.

      (b) May include any costs of collecting the past due fine at a rate established by the association. If the past due fine is for a violation that does not threaten the health, safety or welfare of the units’ owners or residents of the common-interest community, the rate established by the association for the costs of collecting the past due fine:

 


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ê2009 Statutes of Nevada, Page 2915 (Chapter 492, SB 183)ê

 

            (1) May not exceed $20, if the outstanding balance is less than $200.

            (2) May not exceed $50, if the outstanding balance is $200 or more, but is less than $500.

            (3) May not exceed $100, if the outstanding balance is $500 or more, but is less than $1,000.

            (4) May not exceed $250, if the outstanding balance is $1,000 or more, but is less than $5,000.

            (5) May not exceed $500, if the outstanding balance is $5,000 or more.

      (c) May include any costs incurred by the association during a civil action to enforce the payment of the past due fine.

      [9.] 10.  If requested by a person upon whom a fine was imposed, not later than 60 days after receiving any payment of a fine, an association shall provide to the person upon whom the fine was imposed a statement of the remaining balance owed.

      11.  As used in this section:

      (a) “Costs of collecting” includes, without limitation, any collection fee, filing fee, recording fee, referral fee, fee for postage or delivery, and any other fee or cost that an association may reasonably charge to the unit’s owner for the collection of a past due fine. The term does not include any costs incurred by an association during a civil action to enforce the payment of a past due fine.

      (b) “Outstanding balance” means the amount of a past due fine that remains unpaid before any interest, charges for late payment or costs of collecting the past due fine are added.

      Sec. 13.  NRS 116.310315 is hereby amended to read as follows:

      116.310315  If an association has imposed a fine against a unit’s owner or a tenant or [guest] invitee of a unit’s owner pursuant to NRS 116.31031 for violations of the governing documents of the association, the association [:

      1.  Shall, in the books and records of the association, account for the fine separately from any assessment, fee or other charge; and

      2.  Shall not apply, in whole or in part, any payment made by the unit’s owner for any assessment, fee or other charge toward the payment of the outstanding balance of the fine or any costs of collecting the fine, unless the unit’s owner provides written authorization which directs the association to apply the payment made by the unit’s owner in such a manner.] shall establish a compliance account to account for the fine, which must be separate from any account established for assessments.

      Sec. 14.  NRS 116.31034 is hereby amended to read as follows:

      116.31034  1.  Except as otherwise provided in subsection 5 of NRS 116.212, not later than the termination of any period of declarant’s control, the units’ owners shall elect an executive board of at least three members, at least a majority of whom must be units’ owners. Unless the governing documents provide otherwise, the remaining members of the executive board do not have to be units’ owners. The executive board shall elect the officers of the association. The members of the executive board and the officers of the association shall take office upon election.

 


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ê2009 Statutes of Nevada, Page 2916 (Chapter 492, SB 183)ê

 

      2.  The term of office of a member of the executive board may not exceed [2] 3 years, except for members who are appointed by the declarant. Unless the governing documents provide otherwise, there is no limitation on the number of terms that a person may serve as a member of the executive board.

      3.  The governing documents of the association must provide for terms of office that are staggered in such a manner that, to the extent possible, an equal number of members of the executive board are elected at each election. The provisions of this subsection do not apply to:

      (a) Members of the executive board who are appointed by the declarant; and

      (b) Members of the executive board who serve a term of 1 year or less.

      4.  Not less than 30 days before the preparation of a ballot for the election of members of the executive board, the secretary or other officer specified in the bylaws of the association shall cause notice to be given to each unit’s owner of his eligibility to serve as a member of the executive board. Each unit’s owner who is qualified to serve as a member of the executive board may have his name placed on the ballot along with the names of the nominees selected by the members of the executive board or a nominating committee established by the association.

      5.  Each person whose name is placed on the ballot as a candidate for a member of the executive board must:

      (a) Make a good faith effort to disclose any financial, business, professional or personal relationship or interest that would result or would appear to a reasonable person to result in a potential conflict of interest for the candidate if the candidate were to be elected to serve as a member of the executive board; and

      (b) Disclose whether the candidate is a member in good standing. For the purposes of this paragraph, a candidate shall not be deemed to be in “good standing” if the candidate has any unpaid and past due assessments or construction penalties that are required to be paid to the association.

Ê The candidate must make all disclosures required pursuant to this subsection in writing to the association with his candidacy information. [The] Except as otherwise provided in this subsection, the association shall distribute the disclosures , on behalf of the candidate, to each member of the association with the ballot in the manner established in the bylaws of the association. The association is not obligated to distribute any disclosure pursuant to this subsection if the disclosure contains information that is believed to be defamatory, libelous or profane.

      6.  Unless a person is appointed by the declarant:

      (a) A person may not be a member of the executive board or an officer of the association if the person, his spouse or his parent or child, by blood, marriage or adoption, performs the duties of a community manager for that association.

      (b) A person may not be a member of the executive board of a master association or an officer of that master association if the person, his spouse or his parent or child, by blood, marriage or adoption, performs the duties of a community manager for:

            (1) That master association; or

            (2) Any association that is subject to the governing documents of that master association.

 


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ê2009 Statutes of Nevada, Page 2917 (Chapter 492, SB 183)ê

 

      7.  An officer, employee, agent or director of a corporate owner of a unit, a trustee or designated beneficiary of a trust that owns a unit, a partner of a partnership that owns a unit, a member or manager of a limited-liability company that owns a unit, and a fiduciary of an estate that owns a unit may be an officer of the association or a member of the executive board. In all events where the person serving or offering to serve as an officer of the association or a member of the executive board is not the record owner, he shall file proof in the records of the association that:

      (a) He is associated with the corporate owner, trust, partnership, limited-liability company or estate as required by this subsection; and

      (b) Identifies the unit or units owned by the corporate owner, trust, partnership, limited-liability company or estate.

      8.  [The] Except as otherwise provided in NRS 116.31105, the election of any member of the executive board must be conducted by secret written ballot [unless the declaration of the association provides that voting rights may be exercised by delegates or representatives as set forth in NRS 116.31105. If the election of any member of the executive board is conducted by secret written ballot:] in the following manner:

      (a) The secretary or other officer specified in the bylaws of the association shall cause a secret ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) A quorum is not required for the election of any member of the executive board.

      (d) Only the secret written ballots that are returned to the association may be counted to determine the outcome of the election.

      (e) The secret written ballots must be opened and counted at a meeting of the association. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (f) The incumbent members of the executive board and each person whose name is placed on the ballot as a candidate for a member of the executive board may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

      9.  Each member of the executive board shall, within 90 days after his appointment or election, certify in writing to the association, on a form prescribed by the Administrator, that he has read and understands the governing documents of the association and the provisions of this chapter to the best of his ability. The Administrator may require the association to submit a copy of the certification of each member of the executive board of that association at the time the association registers with the Ombudsman pursuant to NRS 116.31158.

      Sec. 15.  NRS 116.31036 is hereby amended to read as follows:

      116.31036  1.  Notwithstanding any provision of the declaration or bylaws to the contrary, any member of the executive board, other than a member appointed by the declarant, may be removed from the executive board, with or without cause, if at a removal election held pursuant to this section the number of votes cast in favor of removal constitutes:

 


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ê2009 Statutes of Nevada, Page 2918 (Chapter 492, SB 183)ê

 

board, with or without cause, if at a removal election held pursuant to this section the number of votes cast in favor of removal constitutes:

      (a) At least 35 percent of the total number of voting members of the association; and

      (b) At least a majority of all votes cast in that removal election.

      2.  [The] Except as otherwise provided in NRS 116.31105, the removal of any member of the executive board must be conducted by secret written ballot [unless the declaration of the association provides that voting rights may be exercised by delegates or representatives as set forth in NRS 116.31105. If the removal of a member of the executive board is conducted by secret written ballot:] in the following manner:

      (a) The secretary or other officer specified in the bylaws of the association shall cause a secret ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) Only the secret written ballots that are returned to the association may be counted to determine the outcome.

      (d) The secret written ballots must be opened and counted at a meeting of the association. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (e) The incumbent members of the executive board, including, without limitation, the member who is subject to the removal, may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association before those secret written ballots have been opened and counted at a meeting of the association.

      3.  If a member of an executive board is named as a respondent or sued for liability for actions undertaken in his role as a member of the board, the association shall indemnify him for his losses or claims, and undertake all costs of defense, unless it is proven that he acted with willful or wanton misfeasance or with gross negligence. After such proof, the association is no longer liable for the cost of defense, and may recover costs already expended from the member of the executive board who so acted. Members of the executive board are not personally liable to the victims of crimes occurring on the property. Punitive damages may not be recovered against the association, but may be recovered from persons whose activity gave rise to the damages.

      4.  The provisions of this section do not prohibit the Commission from taking any disciplinary action against a member of an executive board pursuant to NRS 116.745 to 116.795, inclusive.

      Sec. 16.  NRS 116.31038 is hereby amended to read as follows:

      116.31038  In addition to any applicable requirement set forth in NRS 116.310395, within 30 days after units’ owners other than the declarant may elect a majority of the members of the executive board, the declarant shall deliver to the association all property of the units’ owners and of the association held by or controlled by him, including:

      1.  The original or a certified copy of the recorded declaration as amended, the articles of incorporation, articles of association, articles of organization, certificate of registration, certificate of limited partnership, certificate of trust or other documents of organization for the association, the bylaws, minute books and other books and records of the association and any rules or regulations which may have been adopted.

 


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ê2009 Statutes of Nevada, Page 2919 (Chapter 492, SB 183)ê

 

certificate of trust or other documents of organization for the association, the bylaws, minute books and other books and records of the association and any rules or regulations which may have been adopted.

      2.  An accounting for money of the association and audited financial statements for each fiscal year and any ancillary period from the date of [inception] the last audit of the association to the date the period of the declarant’s control ends. The financial statements must fairly and accurately report the association’s financial position. The declarant shall pay the costs of the ancillary audit. The ancillary audit must be delivered within 210 days after the date the period of the declarant’s control ends.

      3.  A complete study of the reserves of the association, conducted by a person who [holds a permit to conduct such a study issued] is registered as a reserve study specialist pursuant to chapter 116A of NRS. At the time the control of the declarant ends, he shall:

      (a) Except as otherwise provided in this paragraph, deliver to the association a reserve account that contains the declarant’s share of the amounts then due, and control of the account. If the declaration was recorded before October 1, 1999, and, at the time the control of the declarant ends, he has failed to pay his share of the amounts due, the executive board shall authorize the declarant to pay the deficiency in installments for a period of 3 years, unless the declarant and the executive board agree to a shorter period.

      (b) Disclose, in writing, the amount by which he has subsidized the association’s dues on a per unit or per lot basis.

      4.  The association’s money or control thereof.

      5.  All of the declarant’s tangible personal property that has been represented by the declarant as property of the association or, unless the declarant has disclosed in the public offering statement that all such personal property used in the common-interest community will remain the declarant’s property, all of the declarant’s tangible personal property that is necessary for, and has been used exclusively in, the operation and enjoyment of the common elements, and inventories of these properties.

      6.  A copy of any plans and specifications used in the construction of the improvements in the common-interest community which were completed within 2 years before the declaration was recorded.

      7.  All insurance policies then in force, in which the units’ owners, the association, or its directors and officers are named as insured persons.

      8.  Copies of any certificates of occupancy that may have been issued with respect to any improvements comprising the common-interest community other than units in a planned community.

      9.  Any renewable permits and approvals issued by governmental bodies applicable to the common-interest community which are in force and any other permits and approvals so issued and applicable which are required by law to be kept on the premises of the community.

      10.  Written warranties of the contractor, subcontractors, suppliers and manufacturers that are still effective.

      11.  A roster of owners and mortgagees of units and their addresses and telephone numbers, if known, as shown on the declarant’s records.

      12.  Contracts of employment in which the association is a contracting party.

      13.  Any contract for service in which the association is a contracting party or in which the association or the units’ owners have any obligation to pay a fee to the persons performing the services.

 


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ê2009 Statutes of Nevada, Page 2920 (Chapter 492, SB 183)ê

 

      Sec. 17.  NRS 116.310395 is hereby amended to read as follows:

      116.310395  1.  At the time of each close of escrow of a unit in a converted building, the declarant shall deliver to the association the amount of the converted building reserve deficit allocated to that unit.

      2.  The allocation to a unit of the amount of any converted building reserve deficit must be made in the same manner as assessments are allocated to that unit.

      3.  As used in this section, “converted building reserve deficit” means the amount necessary to replace the major components of the common elements needing replacement within 10 years after the date of the first [sale] close of escrow of a unit.

      Sec. 18.  NRS 116.3108 is hereby amended to read as follows:

      116.3108  1.  A meeting of the units’ owners must be held at least once each year. If the governing documents do not designate an annual meeting date of the units’ owners, a meeting of the units’ owners must be held 1 year after the date of the last meeting of the units’ owners. If the units’ owners have not held a meeting for 1 year, a meeting of the units’ owners must be held on the following March 1.

      2.  Special meetings of the units’ owners may be called by the president, by a majority of the executive board or by units’ owners constituting at least 10 percent, or any lower percentage specified in the bylaws, of the total number of voting members of the association. The same number of units’ owners may also call a removal election pursuant to NRS 116.31036. To call a special meeting or a removal election, the units’ owners must submit a written petition which is signed by the required percentage of the total number of voting members of the association pursuant to this section and which is mailed, return receipt requested, or served by a process server to the executive board or the community manager for the association. If the petition calls for a special meeting, the executive board shall set the date for the special meeting so that the special meeting is held not less than 15 days or more than 60 days after the date on which the petition is received. If the petition calls for a removal election and:

      (a) The voting rights of the [units’] owners of time shares will be exercised by delegates or representatives as set forth in NRS 116.31105, the executive board shall set the date for the removal election so that the removal election is held not less than 15 days or more than 60 days after the date on which the petition is received; or

      (b) The voting rights of the units’ owners will be exercised through the use of secret written ballots pursuant to NRS 116.31036, the secret written ballots for the removal election must be sent in the manner required by NRS 116.31036 not less than 15 days or more than 60 days after the date on which the petition is received, and the executive board shall set the date for the meeting to open and count the secret written ballots so that the meeting is held not more than 15 days after the deadline for returning the secret written ballots.

      3.  Not less than 15 days or more than 60 days in advance of any meeting of the units’ owners, the secretary or other officer specified in the bylaws shall cause notice of the meeting to be hand-delivered, sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner or, if the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the unit’s owner.

 


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ê2009 Statutes of Nevada, Page 2921 (Chapter 492, SB 183)ê

 

writing by the unit’s owner. The notice of the meeting must state the time and place of the meeting and include a copy of the agenda for the meeting. The notice must include notification of the right of a unit’s owner to:

      (a) Have a copy of the minutes or a summary of the minutes of the meeting provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      (b) Speak to the association or executive board, unless the executive board is meeting in executive session.

      4.  The agenda for a meeting of the units’ owners must consist of:

      (a) A clear and complete statement of the topics scheduled to be considered during the meeting, including, without limitation, any proposed amendment to the declaration or bylaws, any fees or assessments to be imposed or increased by the association, any budgetary changes and any proposal to remove an officer of the association or member of the executive board.

      (b) A list describing the items on which action may be taken and clearly denoting that action may be taken on those items. In an emergency, the units’ owners may take action on an item which is not listed on the agenda as an item on which action may be taken.

      (c) A period devoted to comments by units’ owners and discussion of those comments. Except in emergencies, no action may be taken upon a matter raised under this item of the agenda until the matter itself has been specifically included on an agenda as an item upon which action may be taken pursuant to paragraph (b).

      5.  If the association adopts a policy imposing fines for any violations of the governing documents of the association, the secretary or other officer specified in the bylaws shall prepare and cause to be hand-delivered or sent prepaid by United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit’s owner, a schedule of the fines that may be imposed for those violations.

      6.  The secretary or other officer specified in the bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the units’ owners. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the minutes or a summary of the minutes of the meeting to be made available to the units’ owners. A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      7.  Except as otherwise provided in subsection 8, the minutes of each meeting of the units’ owners must include:

      (a) The date, time and place of the meeting;

      (b) The substance of all matters proposed, discussed or decided at the meeting; and

      (c) The substance of remarks made by any unit’s owner at the meeting if he requests that the minutes reflect his remarks or, if he has prepared written remarks, a copy of his prepared remarks if he submits a copy for inclusion.

      8.  The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of a meeting of the units’ owners.

 


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ê2009 Statutes of Nevada, Page 2922 (Chapter 492, SB 183)ê

 

      9.  The association shall maintain the minutes of each meeting of the units’ owners until the common-interest community is terminated.

      10.  A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the units’ owners if the unit’s owner, before recording the meeting, provides notice of his intent to record the meeting to the other units’ owners who are in attendance at the meeting.

      11.  The units’ owners may approve, at the annual meeting of the units’ owners, the minutes of the prior annual meeting of the units’ owners and the minutes of any prior special meetings of the units’ owners. A quorum is not required to be present when the units’ owners approve the minutes.

      12.  As used in this section, “emergency” means any occurrence or combination of occurrences that:

      (a) Could not have been reasonably foreseen;

      (b) Affects the health, welfare and safety of the units’ owners or residents of the common-interest community;

      (c) Requires the immediate attention of, and possible action by, the executive board; and

      (d) Makes it impracticable to comply with the provisions of subsection 3 or 4.

      Sec. 19.  NRS 116.31083 is hereby amended to read as follows:

      116.31083  1.  A meeting of the executive board must be held at least once every [90] quarter, and not less than once every 100 days.

      2.  Except in an emergency or unless the bylaws of an association require a longer period of notice, the secretary or other officer specified in the bylaws of the association shall, not less than 10 days before the date of a meeting of the executive board, cause notice of the meeting to be given to the units’ owners. Such notice must be:

      (a) Sent prepaid by United States mail to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner;

      (b) If the association offers to send notice by electronic mail, sent by electronic mail at the request of the unit’s owner to an electronic mail address designated in writing by the unit’s owner; or

      (c) Published in a newsletter or other similar publication that is circulated to each unit’s owner.

      3.  In an emergency, the secretary or other officer specified in the bylaws of the association shall, if practicable, cause notice of the meeting to be sent prepaid by United States mail to the mailing address of each unit within the common-interest community. If delivery of the notice in this manner is impracticable, the notice must be hand-delivered to each unit within the common-interest community or posted in a prominent place or places within the common elements of the association.

      4.  The notice of a meeting of the executive board must state the time and place of the meeting and include a copy of the agenda for the meeting or the date on which and the locations where copies of the agenda may be conveniently obtained by the units’ owners. The notice must include notification of the right of a unit’s owner to:

      (a) Have a copy of the minutes or a summary of the minutes of the meeting provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

 


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ê2009 Statutes of Nevada, Page 2923 (Chapter 492, SB 183)ê

 

      (b) Speak to the association or executive board, unless the executive board is meeting in executive session.

      5.  The agenda of the meeting of the executive board must comply with the provisions of subsection 4 of NRS 116.3108. The period required to be devoted to comments by the units’ owners and discussion of those comments must be scheduled for the beginning of each meeting. In an emergency, the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

      6.  At least once every [90] quarter, and not less than once every 100 days, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review, at a minimum, the following financial information at one of its meetings:

      (a) A current year-to-date financial statement of the association;

      (b) A current year-to-date schedule of revenues and expenses for the operating account and the reserve account, compared to the budget for those accounts;

      (c) A current reconciliation of the operating account of the association;

      (d) A current reconciliation of the reserve account of the association;

      (e) The latest account statements prepared by the financial institutions in which the accounts of the association are maintained; and

      (f) The current status of any civil action or claim submitted to arbitration or mediation in which the association is a party.

      7.  The secretary or other officer specified in the bylaws shall cause minutes to be recorded or otherwise taken at each meeting of the executive board. Not more than 30 days after each such meeting, the secretary or other officer specified in the bylaws shall cause the minutes or a summary of the minutes of the meetings to be made available to the units’ owners. A copy of the minutes or a summary of the minutes must be provided to any unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to the unit’s owner.

      8.  Except as otherwise provided in subsection 9 and NRS 116.31085, the minutes of each meeting of the executive board must include:

      (a) The date, time and place of the meeting;

      (b) Those members of the executive board who were present and those members who were absent at the meeting;

      (c) The substance of all matters proposed, discussed or decided at the meeting;

      (d) A record of each member’s vote on any matter decided by vote at the meeting; and

      (e) The substance of remarks made by any unit’s owner who addresses the executive board at the meeting if he requests that the minutes reflect his remarks or, if he has prepared written remarks, a copy of his prepared remarks if he submits a copy for inclusion.

      9.  The executive board may establish reasonable limitations on materials, remarks or other information to be included in the minutes of its meetings.

      10.  The association shall maintain the minutes of each meeting of the executive board until the common-interest community is terminated.

      11.  A unit’s owner may record on audiotape or any other means of sound reproduction a meeting of the executive board, unless the executive board is meeting in executive session, if the unit’s owner, before recording the meeting, provides notice of his intent to record the meeting to the members of the executive board and the other units’ owners who are in attendance at the meeting.

 


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ê2009 Statutes of Nevada, Page 2924 (Chapter 492, SB 183)ê

 

the meeting, provides notice of his intent to record the meeting to the members of the executive board and the other units’ owners who are in attendance at the meeting.

      12.  As used in this section, “emergency” means any occurrence or combination of occurrences that:

      (a) Could not have been reasonably foreseen;

      (b) Affects the health, welfare and safety of the units’ owners or residents of the common-interest community;

      (c) Requires the immediate attention of, and possible action by, the executive board; and

      (d) Makes it impracticable to comply with the provisions of subsection 2 or 5.

      Sec. 20.  NRS 116.311 is hereby amended to read as follows:

      116.311  1.  If only one of several owners of a unit is present at a meeting of the association, that owner is entitled to cast all the votes allocated to that unit. If more than one of the owners are present, the votes allocated to that unit may be cast only in accordance with the agreement of a majority in interest of the owners, unless the declaration expressly provides otherwise. There is majority agreement if any one of the owners cast the votes allocated to that unit without protest made promptly to the person presiding over the meeting by any of the other owners of the unit.

      2.  Except as otherwise provided in this section, votes allocated to a unit may be cast pursuant to a proxy executed by a unit’s owner. A unit’s owner may give a proxy only to a member of his immediate family, a tenant of the unit’s owner who resides in the common-interest community, another unit’s owner who resides in the common-interest community, or a delegate or representative when authorized pursuant to NRS 116.31105. If a unit is owned by more than one person, each owner of the unit may vote or register protest to the casting of votes by the other owners of the unit through an executed proxy. A unit’s owner may revoke a proxy given pursuant to this section only by actual notice of revocation to the person presiding over a meeting of the association.

      3.  Before a vote may be cast pursuant to a proxy:

      (a) The proxy must be dated.

      (b) The proxy must not purport to be revocable without notice.

      (c) The proxy must designate the meeting for which it is executed.

      (d) The proxy must designate each specific item on the agenda of the meeting for which the unit’s owner has executed the proxy, except that the unit’s owner may execute the proxy without designating any specific items on the agenda of the meeting if the proxy is to be used solely for determining whether a quorum is present for the meeting. If the proxy designates one or more specific items on the agenda of the meeting for which the unit’s owner has executed the proxy, the proxy must indicate, for each specific item designated in the proxy, whether the holder of the proxy must cast a vote in the affirmative or the negative on behalf of the unit’s owner. If the proxy does not indicate whether the holder of the proxy must cast a vote in the affirmative or the negative for a particular item on the agenda of the meeting, the proxy must be treated, with regard to that particular item, as if the unit’s owner were present but not voting on that particular item.

 


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ê2009 Statutes of Nevada, Page 2925 (Chapter 492, SB 183)ê

 

      (e) The holder of the proxy must disclose at the beginning of the meeting for which the proxy is executed the number of proxies pursuant to which the holder will be casting votes.

      4.  A proxy terminates immediately after the conclusion of the meeting for which it is executed.

      5.  [A] Except as otherwise provided in this subsection, a vote may not be cast pursuant to a proxy for the election or removal of a member of the executive board of an association . [unless] A vote may be cast pursuant to a proxy for the election or removal of a member of the executive board of a master association which governs a time-share plan created pursuant to chapter 119A of NRS if the proxy is exercised through a delegate or representative authorized pursuant to NRS 116.31105.

      6.  The holder of a proxy may not cast a vote on behalf of the unit’s owner who executed the proxy in a manner that is contrary to the proxy.

      7.  A proxy is void if the proxy or the holder of the proxy violates any provision of subsections 1 to 6, inclusive.

      8.  If the declaration requires that votes on specified matters affecting the common-interest community must be cast by the lessees of leased units rather than the units’ owners who have leased the units:

      (a) The provisions of subsections 1 to 7, inclusive, apply to the lessees as if they were the units’ owners;

      (b) The units’ owners who have leased their units to the lessees may not cast votes on those specified matters;

      (c) The lessees are entitled to notice of meetings, access to records and other rights respecting those matters as if they were the units’ owners; and

      (d) The units’ owners must be given notice, in the manner provided in NRS 116.3108, of all meetings at which the lessees are entitled to vote.

      9.  If any votes are allocated to a unit that is owned by the association, those votes may not be cast, by proxy or otherwise, for any purpose.

      Sec. 21.  NRS 116.31105 is hereby amended to read as follows:

      116.31105  1.  If the declaration so provides, in a common-interest community that consists of at least 1,000 units, the voting rights of the units’ owners in the association for that common-interest community may be exercised by delegates or representatives [.] except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives.

      2.  In addition to a common-interest community identified in subsection 1, if the declaration so provides, in a common-interest community created before October 1, 1999, the voting rights of the units’ owners in the association for that common-interest community may be exercised by delegates or representatives [.] except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives.

      3.  In addition to a common-interest community identified in subsections 1 and 2, if the declaration so provides, the voting rights of the owners of time shares within a time-share plan created pursuant to chapter 119A of NRS which is governed by a master association may be exercised by delegates or representatives.

      4.  For the purposes of subsection 1, each unit that a declarant has reserved the right to create pursuant to NRS 116.2105 and for which developmental rights exist must be counted in determining the number of units in a common-interest community.

 


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ê2009 Statutes of Nevada, Page 2926 (Chapter 492, SB 183)ê

 

      [4.] 5.  For the purposes of subsection 3, each time share that a developer has reserved the right to create pursuant to paragraph (g) of subsection 2 of NRS 119A.380 must be counted in determining the number of time shares in a time-share plan.

      6.  Notwithstanding any provision in the declaration, the election of any delegate or representative must be conducted by secret written ballot.

      [5.] 7.  When an election of a delegate or representative is conducted by secret written ballot:

      (a) The secretary or other officer of the association specified in the bylaws of the association shall cause a secret written ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) Only the secret written ballots that are returned to the association in the manner prescribed on the ballot may be counted to determine the outcome of the election.

      (d) The secret written ballots must be opened and counted at a meeting called for the purpose of electing delegates or representatives. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (e) A candidate for delegate or representative may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association in the manner prescribed on the ballot before those secret written ballots have been opened and counted at a meeting called for that purpose.

      Sec. 22.  NRS 116.31105 is hereby amended to read as follows:

      116.31105  1.  [If] Except as otherwise provided in subsection 8, if the declaration so provides, in a common-interest community that consists of at least 1,000 units, the voting rights of the units’ owners in the association for that common-interest community may be exercised by delegates or representatives except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives.

      2.  [In] Except as otherwise provided in subsection 8, in addition to a common-interest community identified in subsection 1, if the declaration so provides, in a common-interest community created before October 1, 1999, the voting rights of the units’ owners in the association for that common-interest community may be exercised by delegates or representatives except that, in the election or removal of a member of the executive board, the voting rights of the units’ owners may not be exercised by delegates or representatives.

      3.  In addition to a common-interest community identified in subsections 1 and 2, if the declaration so provides, the voting rights of the owners of time shares within a time-share plan created pursuant to chapter 119A of NRS which is governed by a master association may be exercised by delegates or representatives.

 


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ê2009 Statutes of Nevada, Page 2927 (Chapter 492, SB 183)ê

 

      4.  For the purposes of subsection 1, each unit that a declarant has reserved the right to create pursuant to NRS 116.2105 and for which developmental rights exist must be counted in determining the number of units in a common-interest community.

      5.  For the purposes of subsection 3, each time share that a developer has reserved the right to create pursuant to paragraph (g) of subsection 2 of NRS 119A.380 must be counted in determining the number of time shares in a time-share plan.

      6.  Notwithstanding any provision in the declaration, the election of any delegate or representative must be conducted by secret written ballot.

      7.  When an election of a delegate or representative is conducted by secret written ballot:

      (a) The secretary or other officer of the association specified in the bylaws of the association shall cause a secret written ballot and a return envelope to be sent, prepaid by United States mail, to the mailing address of each unit within the common-interest community or to any other mailing address designated in writing by the unit’s owner.

      (b) Each unit’s owner must be provided with at least 15 days after the date the secret written ballot is mailed to the unit’s owner to return the secret written ballot to the association.

      (c) Only the secret written ballots that are returned to the association in the manner prescribed on the ballot may be counted to determine the outcome of the election.

      (d) The secret written ballots must be opened and counted at a meeting called for the purpose of electing delegates or representatives. A quorum is not required to be present when the secret written ballots are opened and counted at the meeting.

      (e) A candidate for delegate or representative may not possess, be given access to or participate in the opening or counting of the secret written ballots that are returned to the association in the manner prescribed on the ballot before those secret written ballots have been opened and counted at a meeting called for that purpose.

      8.  Except as otherwise provided in subsection 9, the voting rights of the units’ owners in the association for a common-interest community may be exercised by delegates or representatives only during the period that the declarant is in control of the association and during the 2-year period after the declarant’s control of the association is terminated pursuant to NRS 116.31032.

      9.  The provisions of subsection 8 do not apply to:

      (a) A time-share plan created pursuant to chapter 119A of NRS which is governed by a master association; or

      (b) A condominium or cooperative containing both units that are restricted exclusively to nonresidential use and other units that are not so restricted.

      Secs. 23-25.  (Deleted by amendment.)

      Sec. 26.  NRS 116.31153 is hereby amended to read as follows:

      116.31153  1.  Money in the reserve account of an association required by paragraph (b) of subsection 2 of NRS 116.3115 may not be withdrawn without the signatures of at least two members of the executive board or the signatures of at least one member of the executive board and one officer of the association who is not a member of the executive board.

 


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ê2009 Statutes of Nevada, Page 2928 (Chapter 492, SB 183)ê

 

      2.  Except as otherwise provided in subsection 3, money in the operating account of an association may not be withdrawn without the signatures of at least one member of the executive board or one officer of the association and a member of the executive board, an officer of the association or the community manager.

      3.  Money in the operating account of an association may be withdrawn without the signatures required pursuant to subsection 2 to:

      (a) Transfer money to the reserve account of the association at regular intervals; or

      (b) Make automatic payments for utilities.

      Sec. 27.  (Deleted by amendment.)

      Sec. 28.  NRS 116.31175 is hereby amended to read as follows:

      116.31175  1.  Except as otherwise provided in this subsection, the executive board of an association shall, upon the written request of a unit’s owner, make available the books, records and other papers of the association for review during the regular working hours of the association, including, without limitation, all contracts to which the association is a party and all records filed with a court relating to a civil or criminal action to which the association is a party. The provisions of this subsection do not apply to:

      (a) The personnel records of the employees of the association, except for those records relating to the number of hours worked and the salaries and benefits of those employees;

      (b) The records of the association relating to another unit’s owner, except for those records described in subsection 2; [and]

      (c) A contract between the association and an attorney [.] ; and

      (d) Any document, including, without limitation, minutes of an executive board meeting, a reserve study and a budget, if the document:

            (1) Is in the process of being developed for final consideration by the executive board; and

            (2) Has not been placed on an agenda for final approval by the executive board.

      2.  The executive board of an association shall maintain a general record concerning each violation of the governing documents, other than a violation involving a failure to pay an assessment, for which the executive board has imposed a fine, a construction penalty or any other sanction. The general record:

      (a) Must contain a general description of the nature of the violation and the type of the sanction imposed. If the sanction imposed was a fine or construction penalty, the general record must specify the amount of the fine or construction penalty.

      (b) Must not contain the name or address of the person against whom the sanction was imposed or any other personal information which may be used to identify the person or the location of the unit, if any, that is associated with the violation.

      (c) Must be maintained in an organized and convenient filing system or data system that allows a unit’s owner to search and review the general records concerning violations of the governing documents.

      3.  If the executive board refuses to allow a unit’s owner to review the books, records or other papers of the association, the Ombudsman may:

      (a) On behalf of the unit’s owner and upon written request, review the books, records or other papers of the association during the regular working hours of the association; and

 


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ê2009 Statutes of Nevada, Page 2929 (Chapter 492, SB 183)ê

 

      (b) If he is denied access to the books, records or other papers, request the Commission, or any member thereof acting on behalf of the Commission, to issue a subpoena for their production.

      4.  The books, records and other papers of an association must be maintained for at least 10 years. The provisions of this subsection do not apply to:

      (a) The minutes of a meeting of the units’ owners which must be maintained in accordance with NRS 116.3108; or

      (b) The minutes of a meeting of the executive board which must be maintained in accordance with NRS 116.31083.

      5.  The executive board shall not require a unit’s owner to pay an amount in excess of $10 per hour to review any books, records, contracts or other papers of the association pursuant to the provisions of this section.

      6.  If an official publication contains or will contain any mention of a candidate or ballot question, the official publication must, upon request and without charge, provide equal space to the candidate or a representative of an organization which supports the passage or defeat of the ballot question.

      7.  If an official publication contains or will contain the views or opinions of the association, the executive board, a community manager or an officer, employee or agent of an association concerning an issue of official interest, the official publication must, upon request and without charge, provide equal space to opposing views and opinions of a unit’s owner, tenant or resident of the common-interest community.

      8.  The association and its officers, employees and agents are immune from criminal or civil liability for any act or omission which arises out of the publication or disclosure of any information related to any person and which occurs in the course of carrying out any duties required pursuant to subsection 6 or 7.

      9.  As used in this section:

      (a) “Issue of official interest” includes, without limitation:

            (1) Any issue on which the executive board or the units’ owners will be voting, including, without limitation, the election of members of the executive board; and

            (2) The enactment or adoption of rules or regulations that will affect a common-interest community.

      (b) “Official publication” means:

            (1) An official website;

            (2) An official newsletter or other similar publication that is circulated to each unit’s owner; or

            (3) An official bulletin board that is available to each unit’s owner,

Ê which is published or maintained at the cost of an association and by an association, an executive board, a member of an executive board, a community manager or an officer, employee or agent of an association.

      Sec. 29.  NRS 116.31187 is hereby amended to read as follows:

      116.31187  1.  Except as otherwise provided in this section, a member of an executive board or an officer of an association shall not:

      (a) On or after October 1, 2003, enter into a contract or renew a contract with the association to provide financing, goods or services to the association; or

 


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ê2009 Statutes of Nevada, Page 2930 (Chapter 492, SB 183)ê

 

      (b) Otherwise accept any commission, personal profit or compensation of any kind from the association for providing financing, goods or services to the association.

      2.  The provisions of this section do not prohibit a declarant, an affiliate of a declarant or an officer, employee or agent of a declarant or an affiliate of a declarant from:

      (a) Receiving any commission, personal profit or compensation from the association, the declarant or an affiliate of the declarant for any financing, goods or services furnished to the association;

      (b) Entering into contracts with the association, the declarant or affiliate of the declarant; or

      (c) Serving as a member of the executive board or as an officer of the association.

      Sec. 30.  (Deleted by amendment.)

      Sec. 31.  NRS 116.345 is hereby amended to read as follows:

      116.345  1.  An association of a planned community may not restrict, prohibit or otherwise impede the lawful residential use of any property that is within or encompassed by the boundaries of the planned community and that is not designated as part of the planned community.

      2.  Except as otherwise provided in this subsection, an association may not restrict the access of a person to any of his property. An association may restrict access to and from a unit within a planned community if the right to restrict such access was included in the declaration or in a separate recorded instrument at the time that the owner of the unit acquired title to the unit. The provisions of this subsection do not prohibit an association from charging the owner of the property a reasonable and nondiscriminatory fee to operate or maintain a gate or other similar device designed to control access to the planned community that would otherwise impede ingress or egress to the property.

      3.  An association may not expand, construct or situate a building or structure that is not part of any plat or plan of the planned community if the expansion, construction or situation of the building or structure was not previously disclosed to the units’ owners of the planned community unless the association obtains the written consent of a majority of the units’ owners and residents of the planned community who own property or reside within 500 feet of the proposed location of the building or structure.

      4.  An association may not interrupt any utility service furnished to a unit’s owner or a tenant of a unit’s owner except for the nonpayment of utility charges when due. The interruption of any utility service pursuant to this subsection must be performed in a manner which is consistent with all laws, regulations and governing documents relating to the interruption of any utility service. An association must in every case send a written notice of its intent to interrupt any utility service to the unit’s owner or the tenant of the unit’s owner at least 10 days before the association interrupts any utility service.

      5.  The provisions of this section do not abrogate any easement, restrictive covenant, decision of a court, agreement of a party or any contract, governing document or declaration of covenants, conditions and restrictions, or any other decision, rule or regulation that a local governing body or other entity that makes decisions concerning land use or planning is authorized to make or enact that exists before October 1, 1999, including, without limitation, a zoning ordinance, permit or approval process or any other requirement of a local government or other entity that makes decisions concerning land use or planning.

 


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make or enact that exists before October 1, 1999, including, without limitation, a zoning ordinance, permit or approval process or any other requirement of a local government or other entity that makes decisions concerning land use or planning.

      Secs. 32 and 33.  (Deleted by amendment.)

      Sec. 34.  NRS 116.411 is hereby amended to read as follows:

      116.411  1.  Except as otherwise provided in subsections 2 [and 3,] , 3 and 4, a deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to subsection 3 of NRS 116.4102 must be placed in escrow and held either in this State or in the state where the unit is located in an account designated solely for that purpose by a licensed title insurance company, an independent bonded escrow company, or an institution whose accounts are insured by a governmental agency or instrumentality until:

      (a) Delivered to the declarant at closing;

      (b) Delivered to the declarant because of the purchaser’s default under a contract to purchase the unit;

      (c) Released to the declarant for an additional item, improvement, optional item or alteration, but the amount so released:

            (1) Must not exceed the lesser of the amount due the declarant from the purchaser at the time of the release or the amount expended by the declarant for the purpose; and

            (2) Must be credited upon the purchase price; or

      (d) Refunded to the purchaser.

      2.  A deposit or advance payment made for an additional item, improvement, optional item or alteration may be deposited in escrow or delivered directly to the declarant, as the parties may contract.

      3.  In lieu of placing a deposit in escrow pursuant to subsection 1, the declarant may furnish a bond executed by him as principal and by a corporation qualified under the laws of this State as surety, payable to the State of Nevada, and conditioned upon the performance of the declarant’s duties concerning the purchase or reservation of a unit. Each bond must be in a principal sum equal to the amount of the deposit. The bond must be held until:

      (a) Delivered to the declarant at closing;

      (b) Delivered to the declarant because of the purchaser’s default under a contract to purchase the unit; or

      (c) Released to the declarant for an additional item, improvement, optional item or alteration, but the amount so released must not exceed the amount due the declarant from the purchaser at the time of the release or the amount expended by the declarant for that purpose, whichever is less.

      4.  Pursuant to subsection 1, a deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to subsection 3 of NRS 116.4102 is deemed to be placed in escrow and held in this State when the escrow holder has:

      (a) The legal right to conduct business in this State;

      (b) A registered agent in this State pursuant to subsection 1 of NRS 14.020; and

      (c) Consented to the jurisdiction of the courts of this State by:

 


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            (1) Maintaining a physical presence in this State; or

            (2) Executing a written instrument containing such consent, with respect to any suit or claim, whether brought by the declarant or purchaser, relating to or arising in connection with such sale or the escrow agreement related thereto.

      Sec. 35.  NRS 116.750 is hereby amended to read as follows:

      116.750  1.  In carrying out the provisions of NRS 116.745 to 116.795, inclusive, the Division and the Ombudsman have jurisdiction to investigate and the Commission and each hearing panel has jurisdiction to take appropriate action against any person who commits a violation, including, without limitation:

      (a) Any association and any officer, employee or agent of an association.

      (b) Any member of an executive board.

      (c) Any community manager who holds a certificate and any other community manager.

      (d) Any person who [holds a permit to conduct a study of the reserves of an association issued] is registered as a reserve study specialist, or who conducts a study of reserves, pursuant to chapter 116A of NRS.

      (e) Any declarant or affiliate of a declarant.

      (f) Any unit’s owner.

      (g) Any tenant of a unit’s owner if the tenant has entered into an agreement with the unit’s owner to abide by the governing documents of the association and the provisions of this chapter and any regulations adopted pursuant thereto.

      2.  The jurisdiction set forth in subsection 1 applies to any officer, employee or agent of an association or any member of an executive board who commits a violation and who:

      (a) Currently holds his office, employment, agency or position or who held his office, employment, agency or position at the commencement of proceedings against him.

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

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

            (2) Within 1 year after the violation is discovered or reasonably should have been discovered.

      Sec. 36.  NRS 116A.120 is hereby amended to read as follows:

      116A.120  [“Permit”] “Registration” means [a permit] a registration to conduct a study of the reserves of an association pursuant to NRS 116.31152 or 116B.605 [issued by] with the Division pursuant to this chapter.

      Sec. 37.  NRS 116A.260 is hereby amended to read as follows:

      116A.260  The Division shall maintain in each district office a public docket or other record in which it shall record, from time to time as made:

      1.  The rulings or decisions upon all complaints filed with that district office.

      2.  All investigations instituted by that district office in the first instance, upon or in connection with which any hearing has been held, or in which the person charged has made no defense.

      3.  Denials of applications made to that district office for examination , registration or issuance of a certificate . [or permit.]

 


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      Sec. 38.  (Deleted by amendment.)

      Sec. 39.  NRS 116A.420 is hereby amended to read as follows:

      116A.420  1.  Except as otherwise provided in this section, a person shall not act as a reserve study specialist unless the person [holds a permit.] registers with the Division on a form provided by the Division.

      2.  The Commission shall by regulation provide for the standards of practice for reserve study specialists . [who hold permits.]

      3.  The Division may investigate any reserve study specialist [who holds a permit] to ensure that the reserve study specialist is complying with the provisions of this chapter and chapters 116 and 116B of NRS and the standards of practice adopted by the Commission.

      4.  In addition to any other remedy or penalty, if the Commission or a hearing panel, after notice and hearing, finds that a reserve study specialist [who holds a permit] has violated any provision of this chapter or chapter 116 or 116B of NRS or any of the standards of practice adopted by the Commission, the Commission or the hearing panel may take appropriate disciplinary action against the reserve study specialist.

      5.  In addition to any other remedy or penalty, the Commission may:

      (a) Refuse to [issue a permit to] accept the registration of a person who has failed to pay money which the person owes to the Commission or the Division.

      (b) Suspend, revoke or refuse to renew the [permit] registration of a person who has failed to pay money which the person owes to the Commission or the Division.

      6.  The provisions of this section do not apply to a member of an executive board or an officer of an association who is acting solely within the scope of his duties as a member of the executive board or an officer of the association.

      7.  A person who assists a registered reserve study specialist in preparing a reserve study, signed by a registered reserve study specialist, is not required to register as a reserve study specialist.

      Sec. 40.  NRS 116A.430 is hereby amended to read as follows:

      116A.430  1.  The Commission shall by regulation provide for the [issuance] registration by the Division of [permits to] reserve study specialists. The regulations:

      (a) Must establish the qualifications for [the issuance of such a permit,] registration, including, without limitation, the education and experience required [to obtain such a permit.] for registration.

      (b) May require applicants to pass an examination [in order to obtain a permit.] for registration. If the regulations require such an examination, the Commission shall by regulation establish fees to pay the costs of the examination, including any costs which are necessary for the administration of the examination.

      (c) May require an investigation of an applicant’s background. If the regulations require such an investigation, the Commission shall by regulation establish fees to pay the costs of the investigation.

      (d) Must establish the grounds for initiating disciplinary action against a person [to whom a permit has been issued,] who has registered, including, without limitation, the grounds for placing conditions, limitations or restrictions on [a permit] registration and for the suspension or revocation of [a permit.] registration.

 


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      (e) Must establish rules of practice and procedure for conducting disciplinary hearings.

      2.  The Division may collect a fee for [the issuance of a permit] registration in an amount not to exceed the administrative costs of [issuing the permit.] registration.

      Sec. 41.  NRS 116A.440 is hereby amended to read as follows:

      116A.440  1.  An applicant for a certificate or [permit] registration shall submit to the Division:

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

      (b) The statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Division shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for registration or the issuance of the certificate ; [or permit;] or

      (b) A separate form prescribed by the Division.

      3.  A certificate [or permit] may not be issued and an application for registration may not be accepted if the applicant:

      (a) Fails to submit the statement required pursuant to subsection 1; or

      (b) Indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

      4.  If an applicant indicates on the statement submitted pursuant to subsection 1 that he is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Division shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

      Sec. 42.  NRS 116A.450 is hereby amended to read as follows:

      116A.450  1.  If the Division receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is registered or the holder of a certificate , [or permit,] the Division shall deem the registration or certificate [or permit] to be suspended at the end of the 30th day after the date the court order was issued unless the Division receives a letter issued to the person who is registered or the holder of the certificate [or permit] by the district attorney or other public agency pursuant to NRS 425.550 stating that the person who is registered or the holder of the certificate [or permit] has complied with a subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Division shall reinstate a registration or certificate [or permit] that has been suspended by a district court pursuant to NRS 425.540 if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person who is registered or the holder of the certificate [or permit] that he has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

 


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      Sec. 43.  NRS 116A.460 is hereby amended to read as follows:

      116A.460  The expiration or revocation of a registration or certificate [or permit] by operation of law or by order or decision of any agency or court of competent jurisdiction, or the voluntary surrender of such a registration or certificate [or permit] by the person who is registered or the holder of the certificate [or permit] does not:

      1.  Prohibit the Commission or the Division from initiating or continuing an investigation of, or action or disciplinary proceeding against, the person who is registered or the holder of the certificate [or permit] as authorized pursuant to the provisions of this chapter or chapter 116 or 116B of NRS or the regulations adopted pursuant thereto; or

      2.  Prevent the imposition or collection of any fine or penalty authorized pursuant to the provisions of this chapter or chapter 116 or 116B of NRS or the regulations adopted pursuant thereto against the person who is registered or the holder of the certificate . [or permit.]

      Sec. 44.  NRS 116A.900 is hereby amended to read as follows:

      116A.900  1.  In addition to any other remedy or penalty, the Commission may impose an administrative fine against any person who knowingly:

      (a) Engages or offers to engage in any activity for which a registration or certificate [or permit] is required pursuant to this chapter or chapter 116 or 116B of NRS, or any regulation adopted pursuant thereto, if the person has not registered or does not hold the required certificate [or permit] or has not been given the required authorization; or

      (b) Assists or offers to assist another person to commit a violation described in paragraph (a).

      2.  If the Commission imposes an administrative fine against a person pursuant to this section, the amount of the administrative fine may not exceed the amount of any gain or economic benefit that the person derived from the violation or $5,000, whichever amount is greater.

      3.  In determining the appropriate amount of the administrative fine, the Commission shall consider:

      (a) The severity of the violation and the degree of any harm that the violation caused to other persons;

      (b) The nature and amount of any gain or economic benefit that the person derived from the violation;

      (c) The person’s history or record of other violations; and

      (d) Any other facts or circumstances that the Commission deems to be relevant.

      4.  Before the Commission may impose the administrative fine, the Commission must provide the person with notice and an opportunity to be heard.

      5.  The person is entitled to judicial review of the decision of the Commission in the manner provided by chapter 233B of NRS.

      6.  The provisions of this section do not apply to a person who engages or offers to engage in activities within the purview of this chapter or chapter 116 or 116B of NRS if:

      (a) A specific statute exempts the person from complying with the provisions of this chapter or chapter 116 or 116B of NRS with regard to those activities; and

 


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      (b) The person is acting in accordance with the exemption while engaging or offering to engage in those activities.

      Sec. 45.  (Deleted by amendment.)

      Sec. 46.  The amendatory provisions of section 11 of this act apply to all owners of property in a common-interest community that is exempt from taxation pursuant to NRS 361.125 who are not obligated to pay assessments as of January 1, 2009.

      Sec. 47.  1.  This section becomes effective upon passage and approval.

      2.  Section 38 of this act becomes effective:

      (a) Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and

      (b) On January 1, 2010, for all other purposes.

      3.  Section 34 of this act becomes effective on July 1, 2009.

      4.  Sections 1 to 8, inclusive, 10, 11, 12, 14 to 21, inclusive, 23 to 33, inclusive, 35, 36, 37 and 39 to 46, inclusive, of this act become effective on October 1, 2009.

      5.  Sections 9, 13 and 22 of this act become effective on October 1, 2011.

      6.  Sections 41 and 42 of this act expire by limitation on the date on which the provisions of 42 U.S.C. § 666 requiring each state to establish procedures under which the state has authority to withhold or suspend, or to restrict the use of professional, occupational and recreational licenses of persons who:

      (a) Have failed to comply with a subpoena or warrant relating to a proceeding to determine the paternity of a child or to establish or enforce an obligation for the support of a child; or

      (b) Are in arrears in the payment for the support of one or more children,

Ê are repealed by the Congress of the United States.

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