SB 417 — Revises provisions governing common-interest communities. (BDR 10-970)

(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.

and (b) If the Ombudsman 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 theirtheirf acting production.

- *SB417_R1* – 5 – 7.

- 82nd Session (2023) – 4 – 8.

The executive board [shallshall not]not may require a unit’s owner to pay [anan amount in excess of $10[$10] $25 per hour]hour the actual costs incurred by the association for the unit’s owner to review any books, records, contracts or other papers of the association pursuant to the provisions of subsection 1.

9.

As used in this section, “actual costs” includes, without limitation:

(a) The cost of gathering, preparing, copying or providing records, regardless of format;

(b) The cost of retrieving records from storage;

and (c) Any other related cost incurred by the association in allowing a unit’s owner to review any books, records, contracts or other papers of the association.

2.4., 2NRS 116.760 is hereby amended to read as follows:

NRS 116.31183 is hereby amended to read as follows:

116.31183 1.

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:

(a) Complained in good faith about any alleged violation of any provision of this chapter or the governing documents of the association;

(b) Recommended the selection or replacement of an attorney, community manager or vendor;

or (c) Requested in good faith to review the books, records or other papers of the association.

2.

A unit’s owner, a tenant or a guest or invitee of a unit’s owner or tenant shall not take, or direct or encourage another person to take, any retaliatory action against the executive board, a member of the executive board, a community manager or an officer, employee or agent of the association because the executive board, member of the executive board, community manager or officer, employee or agent of the association has:

(a) In good faith, provided a unit’s owner or, if different, the person against whom a fine will be imposed, with a notice of the applicable provisions of law or governing documents of the association that form the basis of an alleged violation;

- *SB417_R1* – 6 – (b) Failed in good faith to respond to a request or demand within the prescribed period pursuant to the governing documents of the association or this chapter;

or (c) Refused in good faith to provide confidential information of the association upon request or to otherwise engage in an unlawful activity.

3.

In addition to any other remedy provided by law, upon a violation of this section, a unit’s owner , member of the executive board, community manager or officer, employee or agent of an association may bring a separate action to recover:

(a) Compensatory damages;

and (b) Attorney’s fees and costs of bringing the separate action.

4.

As used in this section:

(a) “Retaliatory action” includes, without limitation, making defamatory statements on social media or another similar online forum.

(b) “Social media” has the meaning ascribed to it in NRS 232.003.

Sec.

2.5.

NRS 116.31184 is hereby amended to read as follows:

116.31184 1.

A community manager, an agent or employee of the community manager, a member of the executive board, an officer, employee or agent of an association, a unit’s owner or a guest or tenant of a unit’s owner shall not willfully and without legal authority threaten, harass or otherwise engage in bullying or a course of conduct against any other person who is the community manager of his or her common-interest community or an agent or employee of that community manager, a member of the executive board of his or her association, an officer, employee or agent of his or her association, another unit’s owner in his or her common- interest community or a guest or tenant of a unit’s owner in his or her common-interest community which:

(a) Causes harm or serious emotional distress, or the reasonable apprehension thereof, to that person;

or (b) Creates a hostile environment for that person.

2.

A person who violates the provisions of subsection 1 is guilty of a misdemeanor.

3.

As used in this section, “bullying:” (a) Means written, verbal or electronic expressions or physical acts or gestures, or any combination thereof, that are directed at a person or group of persons, or a single severe and willful act or expression that is directed at a person or group of persons, and:

(1) Have the effect of:

(I) Damaging the property of a person;

or - *SB417_R1* – 7 – (II) Placing a person in reasonable fear of damage to the property of the person;

(2) Interfere with the rights of a person by:

(I) Creating an intimidating or hostile environment for the person;

or (II) Substantially interfering with the ability of the person to participate in or benefit from services, activities or privileges provided by a common-interest community;

or (3) Are acts or conduct described in subparagraph (1) or (2) and are based upon the:

(I) Actual of perceived race, color, national origin, ancestry, religion, gender identity or expression, sexual orientation, physical or mental disability of a person, sex or any other distinguishing characteristics or background of a person;

or (II) Association of a person with another person having one or more of those actual or perceived characteristics;

(b) Includes, without limitation:

(1) Repeated or pervasive taunting, name-calling, belittling, mocking or use of put-downs or demeaning humor regarding the actual or perceived race, color, national origin, ancestry, religion, gender identity or expression, sexual orientation, physical or mental disability of a person, sex or any other distinguishing characteristic or background of a person;

(2) Behavior that is intended to harm another person by damaging or manipulating his or her relationships with others by conduct that includes, without limitation, spreading false rumors;

(3) Repeated or pervasive intimidation such as the use of aggressive, menacing or disrespectful gestures;

(4) Threats of harm to the possessions of a person, whether such threats are transmitted verbally, electronically or in writing;

(5) Blackmail, extortion or demands for protection money or involuntary loans or donations;

(6) Except as otherwise provided in NRS 116.345, blocking access to any property or facility of a common-interest community;

(7) Stalking;

and (8) Physically harmful contact with or injury to another person or his or her property.

Sec.

3.

NRS 116.745 is hereby amended to read as follows:

116.745 As used in NRS 116.745 to 116.795, inclusive, unless the context otherwise requires, “violation” means a violation of:

1.

Any provision of this chapter ;

[except NRS 116.31184;] 2.

Any regulation adopted pursuant to this chapter;

or 3.

Any order of the Commission or a hearing panel.

- *SB417_R1* – 8 – Sec.

4.

NRS 116.760 is hereby amended to read as follows:

Except as otherwise provided in this section, a person who is aggrieved by an alleged violation may, not later than 1 year after the person discovers or reasonably should have discovered the alleged violation, file with the Division a written affidavit that sets forth the facts constituting the alleged violation.

(1) The respondent has been given a reasonable opportunity after receivingr(2) theReasonable writtenefforts notice to correctresolve the alleged violation;violation have;

and (2) Reasonable efforts to resolve the alleged violation have failed.

(a) An administrative fine of not more than $1,000[$1,000 [against]against] ;$10,000;

or (b) Sanctions disqualifying a person from serving as a member of the executive board for a period of not more than 10 years,  against any person who [knowingly]knowingly files a vexatious, misleading, retaliatory, frivolous, false or fraudulent affidavit with the Division.

5.

The Commission or a hearing panel may designate a person as a vexatious affiant if the Commission or a hearing panel has imposed an administrative fine or sanctions against the person pursuant to subsection 4 for knowingly filing a false or fraudulent affidavit with the Division on two or more occasions.

If the - 82nd Session (2023) – 5 – vexatious affiant pursuant to this subsection, the Commission or hearing panel shall transmit a copy of the order designating the person as a vexatious affiant to the Division and the Division shall not thereafter accept an affidavit filed by the person unless:

(a) The person first submits a copy of the affidavit to the Ombudsman;

and (b) After reviewing the affidavit, the Ombudsman grants leave for the person to file the affidavit with the Division.

NRS(Deleted 116.765by isamendment.) hereby~~~~~ amended23 to- read82nd asSession follows:(2023)

116.765 1.

Upon receipt of an affidavit that complies with the provisions of NRS 116.760, if the Division determines that the alleged violation, if assumed to be true, would constitute a violation of this chapter, the Division shall refer the affidavit to the Ombudsman.

2.

The Ombudsman shall give such guidance to the parties as the Ombudsman deems necessary to assist the parties to resolve the alleged violation.

3.

If the parties are unable to resolve the alleged violation with the assistance of the Ombudsman, the Ombudsman shall provide to the Division a report concerning the alleged violation and any - *SB417_R1* – 9 – information collected by the Ombudsman during his or her efforts to assist the parties to resolve the alleged violation.

4.

Upon receipt of the report from the Ombudsman, the Division shall conduct an investigation to determine whether good cause exists to proceed with a hearing on the alleged violation.

5.

If, after investigating the alleged violation, the Division determines that the allegations in the affidavit are not frivolous, false or fraudulent and that good cause exists to proceed with a hearing on the alleged violation, the Administrator shall file a formal complaint with the Commission and schedule a hearing on the complaint before the Commission or a hearing panel.

H - *SB417_R1*