SB222 - Revises provisions relating to common-interest communities. (BDR 10-640)

S.B. 222 - *SB222* SENATE BILL NO. 222–SENATOR BUCK FEBRUARY 19, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to common-interest communities. (BDR 10-640) 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. AN ACT relating to common-interest communities; revising provisions relating to the recording of certain meetings in a common-interest community; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes a unit’s owner to record, under certain circumstances, a 1 meeting of the units’ owners or executive board on audiotape or any other means of 2 sound reproduction if the unit’s owner, before recording the meeting, provides 3 notice of his or her intent to record the meeting. (NRS 116.3108, 116.31083) 4 Section 1 of this bill authorizes a unit’s owner to record a meeting of the units’ 5 owners through the use of any means of audio or video recording or reproduction. 6 Section 2 of this bill similarly authorizes a unit’s owner to record a meeting of the 7 executive board through the use of any means of audio or video recording or 8 reproduction. 9 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 116.3108 is hereby amended to read as 1 follows: 2 116.3108 1. A meeting of the units’ owners must be held at 3 least once each year at a time and place stated in or fixed in 4 accordance with the bylaws. If the governing documents do not 5 designate an annual meeting date of the units’ owners, a meeting of 6 the units’ owners must be held 1 year after the date of the last 7 meeting of the units’ owners. If the units’ owners have not held a 8 meeting for 1 year, a meeting of the units’ owners must be held on 9 – 2 – - *SB222* the following March 1. At the annual meeting of the units’ owners 1 held pursuant to this subsection, the ballots for the election of 2 members of the executive board must be opened and counted. 3 2. An association shall hold a special meeting of the units’ 4 owners to address any matter affecting the common-interest 5 community or the association if its president, a majority of the 6 executive board or units’ owners constituting at least 10 percent, or 7 any lower percentage specified in the bylaws, of the total number of 8 votes in the association request that the secretary call such a 9 meeting. To call a special meeting, the units’ owners must submit a 10 written petition which is signed by the required percentage of the 11 total number of voting members of the association pursuant to this 12 subsection and which is mailed, return receipt requested, or served 13 by a process server to the executive board or the community 14 manager for the association. If the petition calls for a special 15 meeting, the executive board shall set the date for the special 16 meeting so that the special meeting is held not less than 15 days or 17 more than 60 days after the date on which the petition is received. 18 The association shall not adopt any rule or regulation which 19 prevents or unreasonably interferes with the collection of the 20 required percentage of signatures for a petition pursuant to this 21 subsection. 22 3. Not less than 15 days or more than 60 days in advance of 23 any meeting of the units’ owners, the secretary or other officer 24 specified in the bylaws shall cause notice of the meeting to be given 25 to the units’ owners in the manner set forth in NRS 116.31068. The 26 notice of the meeting must state the time and place of the meeting 27 and include a copy of the agenda for the meeting. The notice must 28 include notification of the right of a unit’s owner to: 29 (a) Have a copy of the minutes or a summary of the minutes of 30 the meeting provided to the unit’s owner upon request, in electronic 31 format at no charge to the unit’s owner or, if the association is 32 unable to provide the copy or summary in electronic format, in 33 paper format at a cost not to exceed 25 cents per page for the first 10 34 pages, and 10 cents per page thereafter. 35 (b) Speak to the association or executive board, unless the 36 executive board is meeting in executive session. 37 4. The agenda for a meeting of the units’ owners must consist 38 of: 39 (a) A clear and complete statement of the topics scheduled to be 40 considered during the meeting, including, without limitation, any 41 proposed amendment to the declaration or bylaws, any fees or 42 assessments to be imposed or increased by the association, any 43 budgetary changes and any proposal to remove an officer of the 44 association or member of the executive board. 45 – 3 – - *SB222* (b) A list describing the items on which action may be taken and 1 clearly denoting that action may be taken on those items. In an 2 emergency, the units’ owners may take action on an item which is 3 not listed on the agenda as an item on which action may be taken. 4 (c) A period devoted to comments by units’ owners regarding 5 any matter affecting the common-interest community or the 6 association and discussion of those comments. Except in 7 emergencies, no action may be taken upon a matter raised under this 8 item of the agenda until the matter itself has been specifically 9 included on an agenda as an item upon which action may be taken 10 pursuant to paragraph (b). 11 5. The secretary or other officer specified in the bylaws shall 12 cause minutes to be recorded or otherwise taken at each meeting of 13 the units’ owners. Not more than 30 days after each such meeting, 14 the secretary or other officer specified in the bylaws shall cause the 15 minutes or a summary of the minutes of the meeting to be made 16 available to the units’ owners. Except as otherwise provided in this 17 subsection, a copy of the minutes or a summary of the minutes must 18 be provided to any unit’s owner upon request, in electronic format at 19 no charge to the unit’s owner or, if the association is unable to 20 provide the copy or summary in electronic format, in paper format 21 at a cost not to exceed 25 cents per page for the first 10 pages, and 22 10 cents per page thereafter. 23 6. Except as otherwise provided in subsection 7, the minutes of 24 each meeting of the units’ owners must include: 25 (a) The date, time and place of the meeting; 26 (b) The substance of all matters proposed, discussed or decided 27 at the meeting; and 28 (c) The substance of remarks made by any unit’s owner at the 29 meeting if the unit’s owner requests that the minutes reflect his or 30 her remarks or, if the unit’s owner has prepared written remarks, a 31 copy of his or her prepared remarks if the unit’s owner submits a 32 copy for inclusion. 33 7. The executive board may establish reasonable limitations on 34 materials, remarks or other information to be included in the 35 minutes of a meeting of the units’ owners. 36 8. The association shall maintain the minutes of each meeting 37 of the units’ owners until the common-interest community is 38 terminated. 39 9. A unit’s owner may record [on audiotape or] through any 40 [other] means of sound or video recording or reproduction a 41 meeting of the units’ owners if the unit’s owner, before recording 42 the meeting, provides notice of his or her intent to record the 43 meeting to the other units’ owners who are in attendance at the 44 meeting. 45 – 4 – - *SB222* 10. The units’ owners may approve, at the annual meeting of 1 the units’ owners, the minutes of the prior annual meeting of the 2 units’ owners and the minutes of any prior special meetings of 3 the units’ owners. A quorum is not required to be present when the 4 units’ owners approve the minutes. 5 11. As used in this section, “emergency” means any occurrence 6 or combination of occurrences that: 7 (a) Could not have been reasonably foreseen; 8 (b) Affects the health, welfare and safety of the units’ owners or 9 residents of the common-interest community; 10 (c) Requires the immediate attention of, and possible action by, 11 the executive board; and 12 (d) Makes it impracticable to comply with the provisions of 13 subsection 3 or 4. 14 Sec. 2. NRS 116.31083 is hereby amended to read as follows: 15 116.31083 1. A meeting of the executive board must be held 16 at least once every quarter, and not less than once every 100 days 17 and must be held at a time other than during standard business hours 18 at least twice annually. 19 2. Except as otherwise provided in subsection 3 or in an 20 emergency or unless the bylaws of an association require a longer 21 period of notice, the secretary or other officer specified in the 22 bylaws of the association shall, not less than 10 days before the date 23 of a meeting of the executive board, cause notice of the meeting to 24 be given to the units’ owners. Such notice must be: 25 (a) Given to the units’ owners in the manner set forth in NRS 26 116.31068; or 27 (b) Published in a newsletter or other similar publication that is 28 circulated to each unit’s owner. 29 3. Notwithstanding any other provision of law or the governing 30 documents of the association to the contrary, if the executive board 31 holds a meeting limited exclusively to items for which the executive 32 board may meet in executive session: 33 (a) Pursuant to paragraph (c) or (d) of subsection 3 of NRS 34 116.31085, the secretary or other officer specified in the bylaws of 35 the association is required to give notice of the meeting only to a 36 person who may be subject to a hearing scheduled for that meeting. 37 (b) Pursuant to any provision of law other than paragraph (c) or 38 (d) of subsection 3 of NRS 116.31085, the secretary or other officer 39 specified in the bylaws of the association is required to: 40 (1) Post notice of the executive session in one or more 41 prominent places within the common elements of the association; 42 and 43 – 5 – - *SB222* (2) Provide electronic notice of the executive session to all 1 units’ owners who have provided the association with an electronic 2 mail address. 3 4. In an emergency, the secretary or other officer specified in 4 the bylaws of the association shall, if practicable, cause notice of the 5 meeting to be sent prepaid by United States mail to the mailing 6 address of each unit within the common-interest community. If 7 delivery of the notice in this manner is impracticable, the notice 8 must be hand-delivered to each unit within the common-interest 9 community or posted in a prominent place or places within the 10 common elements of the association. 11 5. The notice of a meeting of the executive board must state the 12 time and place of the meeting and include a copy of the agenda for 13 the meeting or the date on which and the locations where copies of 14 the agenda may be conveniently obtained by the units’ owners. The 15 notice must include notification of the right of a unit’s owner to: 16 (a) Have a copy of the audio recording, the minutes or a 17 summary of the minutes of the meeting provided to the unit’s owner 18 upon request, in electronic format at no charge to the unit’s owner 19 or, if the association is unable to provide the copy or summary in 20 electronic format, in paper format at a cost not to exceed 25 cents 21 per page for the first 10 pages, and 10 cents per page thereafter. 22 (b) Speak to the association or executive board, unless the 23 executive board is meeting in executive session. 24 6. The agenda of the meeting of the executive board must 25 comply with the provisions of subsection 4 of NRS 116.3108. A 26 period required to be devoted to comments by the units’ owners and 27 discussion of those comments must be scheduled for both the 28 beginning and the end of each meeting. During the period devoted 29 to comments by the units’ owners and discussion of those comments 30 at the beginning of each meeting, comments by the units’ owners 31 and discussion of those comments must be limited to items listed on 32 the agenda. In an emergency, the executive board may take action 33 on an item which is not listed on the agenda as an item on which 34 action may be taken. 35 7. At least once every quarter, and not less than once every 100 36 days, unless the declaration or bylaws of the association impose 37 more stringent standards, the executive board shall review, at a 38 minimum, the following financial information at one of its 39 meetings: 40 (a) A current year-to-date financial statement of the association; 41 (b) A current year-to-date schedule of revenues and expenses for 42 the operating account and the reserve account, compared to the 43 budget for those accounts; 44 – 6 – - *SB222* (c) A current reconciliation of the operating account of the 1 association; 2 (d) A current reconciliation of the reserve account of the 3 association; 4 (e) The latest account statements prepared by the financial 5 institutions in which the accounts of the association are maintained; 6 and 7 (f) The current status of any civil action or claim submitted to 8 arbitration or mediation in which the association is a party. 9 8. The secretary or other officer specified in the bylaws shall 10 cause each meeting of the executive board to be audio recorded and 11 the minutes to be recorded or otherwise taken at each meeting of the 12 executive board, but if the executive board is meeting in executive 13 session, the meeting must not be audio recorded. Not more than 30 14 days after each such meeting, the secretary or other officer specified 15 in the bylaws shall cause the audio recording of the meeting, the 16 minutes of the meeting and a summary of the minutes of the 17 meeting to be made available to the units’ owners. Except as 18 otherwise provided in this subsection, a copy of the audio recording, 19 the minutes or a summary of the minutes must be provided to any 20 unit’s owner upon request, in electronic format at no charge to the 21 unit’s owner or, if the association is unable to provide the copy or 22 summary in electronic format, in paper format at a cost not to 23 exceed 25 cents per page for the first 10 pages, and 10 cents per 24 page thereafter. 25 9. Except as otherwise provided in subsection 10 an [Text truncated for display. Full text available on LegiScan.]