Nevada 2021 Regular Session Status: Enacted

SB 72 — Makes various changes relating to common-interest communities. (BDR 10-318)

Last action — Chapter 157.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced November 18, 2020. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

389 added · 418 removed

389 line(s) added, 418 removed.

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(Reprinted with amendments adopted on April 13, 2021) FIRST REPRINT S.B.
Senate Bill No.
72 S ENATE B ILLN O.
72–Committee on Judiciary CHAPTER..........
72–COMMITTEE ON JUDICIARY (ON B EHALF OF THE R EAL ESTATE DIVISION OF THE DEPARTMENT OF B USINESS AND INDUSTRY ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Judiciary SUMMARY—Makes various changes relating to common-interest communities.
(BDR 10-318) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Legislative Counsel’s Digest:
LegiUnder existing law, a limited-purpose association, which includes an association created for the limited purpose of maintaining the landscape of the common elements, facilities for flood control or a rural agricultural residential common-interest community, is exempt from the requirements of most of the provisions of chapter 116 of NRS, the Uniform Common-Interest Ownership Act.
Under existing law, a limited-purpose association, which includes an association created for the limited purpose of maintaining the landscape of the common-interest community, is exempt from the requirements of most of theidential provisions of chapter 116 of NRS, the Uniform Common-Interest Ownership Act.
(NRS 116.1201) Section 1 of this bill requires a limited-purpose association to comply with the requirements of the Act pertaining to the establishment and foreExisting law:
(NRS 116.1201) Section 1 of this bill requires a limited-purpose association to comply with the requirements of the Act pertaining to the establishment and foreclosure of a lien for assessments.
(1) authorizes the executive board of a unit-owners’ association to impose fines for violations of the governing documents of the association;
Existing law:
and (2) provides that 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, for Common-Interest Communities and Condominium Hotels to adopt regulationsission establishing the criteria used in determining whether a 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 severity of such violations and limitations on the amounts of the fines.
(1) authorizes the executive board of a unit-owners’ association to provides that if the violation does not pose an imminent threat of causing and (2) 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, - *SB72_R1* – 2 – for Common-Interest Communities and Condominium Hotels to adopt regulationsission establishing the criteria used in determining whether a 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 severity of such violations and limitations on the amounts of the fines.
Existing law also provides that a fine may not be imposed against a unit’s owner for a violation committed by an invitee of the unit’s owner or the tenant unless the unit’s owner:
Existing law also provides that a fine may not be imposed against a unit’s owner for a violation committed by an invitee of the unit’s owner or the tenant notice of the violation;
(1) participated in or authorized the violation;
or (3) had an opportunity to stop the violation and failed tor do so.
(2) had prior notice of the violation;
(NRS 116.31031) Section 2 provides that such requirements:
or (3) had an opportunity to stop the violation and failed to to fines imposed against a tenant;
(1) apply also to fines imposed against a tenant;
and (2) do not apply 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.
and (2) do not apply if the violation poses an - 81st Session (2021) – 2 – 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.
(NRS 116.31031) Section 2 provides that the amount of such an additional fine for a continuing violation must notExisting law provides that an executive board may meet in executive session to consult with the attorney for the association on matters relating to proposed or pending litigation if the contents of the discussion are protected by the attorney- client privilege.
(NRS 116.31031) Section 2 not exceed the amount of the original fine for the violation.tinuing violation must Existing law provides that an executive board may meet in executive session to consult with the attorney for the association on matters relating to proposed or pending litigation if the contents of the discussion are protected by the attorney- client privilege.
(NRS 116.31085) Section 3 of this bill eliminates the requirement that such matters must relate to proposed or pending litigation for the executive board to meet in executive session and authorizes the executive board to meet in executive session if the contents of the discussion are protected by the attorney- client privilege.
(NRS 116.31085) Section 3 of this bill eliminates the requirement that such matters must relate to proposed or pending litigation for the executive board to meet in executive session and authorizes the executive board to meet in executive session if the contents of the discussion are protected by the attorney- clieExisting law also requires an executive board to 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, in which case the person:
Existing law also requires an executive board to meet in executive session to person who may be sanctioned for the alleged violation requests in writing that an open hearing be conducted by the executive board, in which case the person:
The executive board is required to maintain minutes of any decision made concerning an alleged violation and, upon request, to provide a copy of the decision to the person or the person’s designated representative.
The executive board is required to maintain minutes of any of the decision to the person or the person’s designated representative.
(NRS 116.31085) Section 3 provides that:
(NRS copy 116.31085) Section 3 provides that:
(1) the person is entitled to receive written notice of the decision of the executive board regarding the alleged violation within before it becomes a continuing violation is deemed not to commence until the dateion on which the notice of the decision of the executive board is provided to the person.
(1) the person is entitled to receive written notice of the decision of the executive board regarding the alleged violation within a reasonable time after the decision is made;
- *SB72_R1* – 3 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
and (2) the period to cure a violation before it becomes a continuing violation is deemed not to commence until the date on which the notice of the decision of the executive board is provided to the person.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
(1) Shall pay the fees required pursuant to NRS 116.31155, except that if the limited-purpose association is created for a rural agricultural residential common-interest community, the limited- purpose association is not required to pay the fee unless the association intends to use the services of the Ombudsman;
(1) Shall pay the fees required pursuant to NRS 116.31155, except that if the limited-purpose association is created for a rural agricultural residential common-interest community, the - 81st Session (2021) – 3 – association intends to use the services of the Ombudsman;e unless the (2) Shall register with the Ombudsman pursuant to NRS 116.31158;
(2) Shall register with the Ombudsman pursuant to NRS 116.31158;
(c) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than - *SB72_R1* – 4 – 55,000, 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.
(c) A common-interest community that was created before January 1, 1992, is located in a county whose population is less than 55,000, and has less than 50 percent of the units within the community put to residential use, unless a majority of the units’ own(d) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.
(d) Except as otherwise provided in this chapter, time shares governed by the provisions of chapter 119A of NRS.
(c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;
- 81st Session (2021) – 4 – (c) Invalidate any assessments that were imposed on or before October 1, 1999, by a common-interest community created before January 1, 1992;
(d) 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;
(d) Except as otherwise provided in subsection 8 of NRS 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;
and (b) The extent to which a limited-purpose association must comply with the provisions of NRS 116.4101 to 116.412, inclusive.
and (b) The extent to which a limited-purpose association must com6.y wAs used in this section, “limited-purpose association” means an association that:
6.
As used in this section, “limited-purpose association” means an association that:
- *SB72_R1* – 5 – (2) Facilities for flood control;
(2) Facilities for flood control;
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Except as otherwise provided in this section, if a unit’s owner or a tenant or 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:
Except as otherwise provided in this section, if a unit’s owner or a tenant or an invitee of a unit’s owner or a tenant - 81st Session (2021) – 5 – the executive board may, if the governing documents so provide:tion, (a) Prohibit, for a reasonable time, the unit’s owner or the tenant or the invitee of the unit’s owner or the tenant from:
(a) Prohibit, for a reasonable time, the unit’s owner or the tenant or the invitee of the unit’s owner or the tenant from:
and (2) A fine may not be imposed against a unit’s owner or a tenant or invitee of a unit’s owner or a tenant 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 or the tenant.
and (2) A fine may not be imposed against a unit’s owner or a governing documents which involves a vehicle and which islation of the 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 or the tenant.
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 [,] as provided in the regulations adopted by the Commission, 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 - *SB72_R1* – 6 – of the fine must not exceed $100 for each violation or a total amount of $1,000 [, whichever is less.] per hearing against each unit’s owner or tenant or invitee of the unit’s owner or tenant.
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 [,] as provided in the regulations adopted by the Commission, the amount of the fine must be commensurate with the board in accordance with the governing documents, but the amounte of the fine must not exceed $100 for each violation or a total amount of $1,000 [, whichever is less.] per hearing against each unit’s owner or tenant or invitee of the unit’s owner or tenant.
The Commission shall adopt regulations establishing the criteria used in determining whether a 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 severity of such violations and limitations on the amounts of the fines.
The Commission shall adopt regulations establishing the criteria used in determining whether a violation poses an imminent threat of causing a substantial - 81st Session (2021) – 6 – or residents of the common-interest community, the severity ofowners such violations and limitations on the amounts of the fines.
and (4) Provide the unit’s owner or the tenant a reasonable opportunity to cure the alleged violation before the executive board may take additional actions, including, without limitation, other remedies available pursuant to this section.
and (4) Provide the unit’s owner or the tenant a reasonable opportunity to cure the alleged violation before the executive board remedies available pursuant to this section.out limitation, other 2.
2.
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 - *SB72_R1* – 7 – designated in writing by the unit’s owner, a schedule of the fines that may be imposed for those violations.
If the association adopts a policy imposing fines for any 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.
(a) Not less than 30 days before the alleged 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 alleged violation;
(a) Not less than 30 days before the alleged violation, the unit’s owner and, if different, the person against whom the fine will be - 81st Session (2021) – 7 – provisions of the governing documents that form the basis of the alleged violation;
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.
For the purposes of this subsection, a unit’s owner shall not be mailed to the address of the unit and, if different, to a mailing address specified by the unit’s owner.
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.
If a fine is imposed pursuant to subsection 1 and the 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 , in an amount that does not exceed the amount of the original fine, for each 7-day - *SB72_R1* – 8 – period or portion thereof that the violation is not cured.
Thereafter, the executive board may impose an additional fine for the violation , in an amount that does not exceed the amount of the original fine, for each 7-day period or portion thereof that the violation is not cured.
and (b) Is not subject to any limitation on the amount of fines set forth in subsection 1 or the regulations adopted pursuant thereto.
and - 81st Session (2021) – 8 – (b) Is not subject to any limitation on the amount of fines set forth in subsection 1 or the regulations adopted pursuant thereto.
If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to conduct hearings on alleged violations and to impose fines pursuant to this section.
If the governing documents so provide, the executive board may appoint a committee, with not less than three members, to 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.
While acting on behalf of the executive board fort 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.
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.
If requested by a person upon whom a fine was imposed, not later than 60 days after receiving any payment of a fine, an imposed a statement of the remaining balance owed.the fine was Sec.
Sec.
- *SB72_R1* – 9 – (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.
(a) Consult with the attorney for the association [on matters relating to proposed or pending litigation] if the contents of the - 81st Session (2021) – 9 – NRS 49.035 to 49.115, inclusive.verned by the privilege set forth in (b) Discuss the character, alleged misconduct, professional competence, or physical or mental health of a community manager or an employee of the association.
(b) Discuss the character, alleged misconduct, professional competence, or physical or mental health of a community manager or an employee of the association.
The person who may be sanctioned for the alleged violation :
The person who that an open hearing be conducted, the person:]requests in writing (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;
[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;
The period to cure a violation before it becomes a continuing violation as provided in subsection 7 of NRS 116.31031 shall be deemed not to commence until the date on which the notice of the decision of the executive board is provided to the person sanctioned for the violation.
The period to cure a violation before it becomes a continuing violation as provided in until the date on which the notice of the decision of the executive board is provided to the person sanctioned for the violation.
Except as otherwise provided in this subsection, any matter discussed by the executive board when it meets in executive session - *SB72_R1* – 10 – must be generally noted in the minutes of the meeting of the executive board.
Except as otherwise provided in this subsection, any matter discussed by the executive board when it meets in executive session - 81st Session (2021) – 10 – must be generally noted in the minutes of the meeting of the executive board.
H - *SB72_R1*
~~~~~ 21 - 81st Session (2021)
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Amendments

1 amendment

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Action History

  1. Chapter 157.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. In Senate. To enrollment.

  5. Read third time. Passed. Title approved. (Yeas: 33, Nays: 6, Excused: 2, Not voting: 1.) To Senate.

  6. Taken from General File. Placed on General File for next legislative day.

  7. Taken from General File. Placed on General File for next legislative day.

  8. Read second time.

  9. From committee: Do pass.

  10. In Assembly. Read first time. Referred to Committee on Government Affairs. To committee.

  11. From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved. (Yeas: 20, Nays: 1.) To Assembly.

  12. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 27.) To printer.

  13. Read first time. To committee.

  14. From printer.

  15. Prefiled. Referred to Committee on Judiciary. To printer.

Sponsors

  • Senate Committee on Judiciary · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Senate Committee on Judiciary

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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SB 72 is sponsored by Senate Committee on Judiciary.
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This bill has been enacted into law. Introduced November 18, 2020. Enacted.
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