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ê2003 Statutes of Nevada, Page 2208ê

 

CHAPTER 385, SB 100

Senate Bill No. 100–Committee on Commerce and Labor

 

CHAPTER 385

 

AN ACT relating to property; making various changes relating to common-interest communities; creating and prescribing the powers and duties of the Commission for Common-Interest Communities; revising provisions relating to the powers and duties of the Ombudsman for Owners in Common-Interest Communities and the Real Estate Division of the Department of Business and Industry; revising provisions governing the regulation of persons who manage common-interest communities; authorizing the Commission to adjudicate certain violations relating to common-interest communities and to impose fines and take other action with regard to such violations; providing that a unit’s owner has the right to display the flag of the United States under certain circumstances; enacting and revising provisions governing the conduct and activities of unit-owners’ associations, the members of executive boards and declarants; enacting provisions relating to the transient commercial use of a unit; authorizing the use of delegates or representatives to exercise voting rights in certain common-interest communities; authorizing an association to impose construction penalties under certain circumstances and to place and foreclose a lien on a unit for failure to pay such penalties; revising provisions relating to the imposition of fines; making various changes relating to meetings, quorums, voting and the election and removal of members of the executive board; authorizing certain common-interest communities to expend money received as a credit against the residential construction tax for certain purposes; revising provisions relating to the foreclosure of certain liens; making various changes relating to the books, records, reports, studies and other papers of an association; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

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 48, inclusive, of this act.

      Sec. 2.  “Certificate” means a certificate for the management of a common-interest community issued by the Division.

      Sec. 3.  “Commission” means the Commission for Common-Interest Communities created by section 13 of this act.

      Sec. 4.  “Community manager” means a person who provides for or otherwise engages in the management of a common-interest community.

      Sec. 5.  “Complaint” means a complaint filed by the Administrator pursuant to section 31 of this act.

      Sec. 6.  “Division” means the Real Estate Division of the Department of Business and Industry.

      Sec. 7.  “Hearing panel” means a hearing panel appointed by the Commission pursuant to section 19 of this act.


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      Sec. 8.  “Management of a common-interest community” means the physical, administrative or financial maintenance and management of a common-interest community, or the supervision of those activities, for a fee, commission or other valuable consideration.

      Sec. 9.  “Ombudsman” means the Ombudsman for Owners in Common-Interest Communities.

      Sec. 10.  “Party to the complaint” means the Division and the respondent.

      Sec. 11.  “Permit” means a permit to engage in property management issued pursuant to the provisions of chapter 645 of NRS.

      Sec. 12.  “Respondent” means a person against whom:

      1.  An affidavit has been filed pursuant to section 30 of this act.

      2.  A complaint has been filed pursuant to section 31 of this act.

      Sec. 13.  1.  The Commission for Common-Interest Communities is hereby created.

      2.  The Commission consists of five 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) One member who is in the business of developing common-interest communities in this state;

      (c) One member who holds a permit or certificate;

      (d) 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) 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 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. 14.  1.  The Division shall 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.

      2.  Each member of the Commission must attend the courses of instruction not later than 6 months after the date that the member is first appointed to the Commission.


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      Sec. 15.  1.  At the first meeting of each fiscal year, the Commission shall elect from its members a Chairman, a Vice Chairman and a Secretary.

      2.  The Commission shall meet at least once each calendar quarter and at other times on the call of the Chairman or a majority of its members.

      3.  A majority of the members of the Commission constitutes a quorum for the transaction of all business.

      Sec. 16.  1.  The provisions of this chapter shall be administered by the Division, subject to the administrative supervision of the Commission.

      2.  The Commission and the Division may do all things necessary and convenient to carry out the provisions of this chapter, including, without limitation, prescribing such forms and adopting such procedures as are necessary to carry out the provisions of this chapter.

      3.  The Commission or the Administrator, with the approval of the Commission, may adopt such regulations as are necessary to carry out the provisions of this chapter.

      4.  The Commission may by regulation delegate any authority conferred upon it by the provisions of this chapter to the Administrator to be exercised pursuant to the regulations adopted by the Commission.

      5.  When regulations are proposed by the Administrator, in addition to other notices required by law, the Administrator shall provide copies of the proposed regulations to the Commission not later than 30 days before the next meeting of the Commission. The Commission shall approve, amend or disapprove any proposed regulations at that meeting.

      6.  All regulations adopted by the Commission, or adopted by the Administrator with the approval of the Commission, must be published by the Division and offered for sale at a reasonable fee.

      7.  The Division may publish or supply a reference manual or study guide for community managers and may offer it for sale at a reasonable fee.

      Sec. 17.  Any notice or other information that is required to be served upon the Commission pursuant to the provisions of this chapter may be delivered to the principal office of the Division.

      Sec. 18.  1.  Except as otherwise provided in this section and within the limits of legislative appropriations, the Division may employ experts, attorneys, investigators, consultants and other personnel as are necessary to carry out the provisions of this chapter.

      2.  The Attorney General shall act as the attorney for the Division in all actions and proceedings brought against or by the Division pursuant to the provisions of this chapter.

      3.  The Attorney General shall render to the Commission and the Division opinions upon all questions of law relating to the construction or interpretation of this chapter, or arising in the administration thereof, that may be submitted to him by the Commission or the Division.

      Sec. 19.  1.  The Commission may appoint one or more hearing panels. Each hearing panel must consist of one or more independent hearing officers.

      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.


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ê2003 Statutes of Nevada, Page 2211 (Chapter 385, SB 100)ê

 

      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. 20.  The Commission or a hearing panel may conduct a hearing by means of an audio or video teleconference to one or more locations if the audio or video technology used at the hearing provides the persons present at each location with the ability to hear and communicate with the persons present at each other location.

      Sec. 21.  The Commission and its members, each hearing panel and its members, the Administrator, the Ombudsman, the Division, and the experts, attorneys, investigators, consultants and other personnel of the Commission and the Division are immune from any civil liability for any decision or action taken in good faith and without malicious intent in carrying out the provisions of this chapter.

      Sec. 22.  1.  The Commission shall conduct such hearings and other proceedings as are required by the provisions of this chapter.

      2.  The Commission shall collect and maintain or cause to be collected and maintained accurate information relating to:

      (a) The number and kind of common-interest communities in this state;

      (b) The effect of the provisions of this chapter and any regulations adopted pursuant thereto on the development and construction of common-interest communities, the residential lending market for units within common-interest communities and the operation and management of common-interest communities;

      (c) Violations of the provisions of this chapter and any regulations adopted pursuant thereto;

      (d) The accessibility and use of, and the costs related to, the arbitration and mediation procedures set forth in NRS 38.300 to 38.360, inclusive, and the decisions rendered and awards made pursuant to those arbitration and mediation procedures;

      (e) The number of foreclosures which were completed on units within common-interest communities and which were based on liens for the failure of the unit’s owner to pay any assessments levied against the unit or any fines imposed against the unit’s owner;

      (f) The study of the reserves required by NRS 116.31152; and

      (g) Other issues that the Commission determines are of concern to units’ owners, associations, community managers, developers and other persons affected by common-interest communities.

      3.  The Commission shall develop and promote:


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ê2003 Statutes of Nevada, Page 2212 (Chapter 385, SB 100)ê

 

      (a) Educational guidelines for conducting the elections of the members of an executive board, the meetings of an executive board and the meetings of the units’ owners of an association; and

      (b) Educational guidelines for the enforcement of the governing documents of an association through liens, penalties and fines.

      4.  The Commission shall recommend and approve for accreditation programs of education and research relating to common-interest communities, including, without limitation:

      (a) The management of common-interest communities;

      (b) The sale and resale of units within common-interest communities;

      (c) Alternative methods that may be used to resolve disputes relating to common-interest communities; and

      (d) The enforcement, including by foreclosure, of liens on units within common-interest communities for the failure of the unit’s owner to pay any assessments levied against the unit or any fines imposed against the unit’s owner.

      Sec. 23.  The Commission may:

      1.  By regulation, establish standards for subsidizing proceedings for mediation and arbitration conducted pursuant to NRS 38.300 to 38.360, inclusive, to ensure that such proceedings are not lengthy and are affordable and readily accessible to all parties;

      2.  By regulation, establish standards for subsidizing educational programs for the benefit of units’ owners, members of executive boards and officers of associations;

      3.  Accept any gifts, grants or donations; and

      4.  Enter into agreements with other entities that are required or authorized to carry out similar duties in this state or in other jurisdictions and cooperate with such entities to develop uniform procedures for carrying out the provisions of this chapter and for accumulating information needed to carry out those provisions.

      Sec. 24.  1.  The Commission shall by regulation provide for the issuance by the Division of certificates to community managers. 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.

      (b) May require applicants to pass an examination in order to obtain a certificate. 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 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) 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.


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      Sec. 25.  1.  An applicant for a certificate shall submit to the Division:

      (a) The social security number of the applicant; and

      (b) The statement prescribed by the Welfare Division of the Department of Human Resources 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 the issuance of the certificate; or

      (b) A separate form prescribed by the Division.

      3.  A certificate may not be issued 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. 26.  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 the holder of a certificate, the Division shall deem the certificate 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 holder of the certificate by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the certificate has complied with a subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Division shall reinstate a certificate 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 holder of the certificate that he has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 27.  As used in sections 27 to 37, inclusive, of this act, unless the context otherwise requires, “violation” means a violation of any provision of this chapter, any regulation adopted pursuant thereto or any order of the Commission or a hearing panel.

      Sec. 28.  1.  In carrying out the provisions of sections 27 to 37, inclusive, of this act, 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:


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ê2003 Statutes of Nevada, Page 2214 (Chapter 385, SB 100)ê

 

      (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 permit or certificate and any other community manager.

      (d) Any declarant or affiliate of a declarant.

      (e) Any unit’s owner.

      (f) 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. 29.  1.  The rights, remedies and penalties provided by sections 27 to 37, inclusive, of this act are cumulative and do not abrogate and are in addition to any other rights, remedies and penalties that may exist at law or in equity.

      2.  If the Commission, a hearing panel or another agency or officer elects to take a particular action or pursue a particular remedy or penalty authorized by sections 27 to 37, inclusive, of this act or another specific statute, that election is not exclusive and does not preclude the Commission, the hearing panel or another agency or officer from taking any other actions or pursuing any other remedies or penalties authorized by sections 27 to 37, inclusive, of this act or another specific statute.

      3.  In carrying out the provisions of sections 27 to 37, inclusive, of this act, the Commission or a hearing panel shall not intervene in any internal activities of an association except to the extent necessary to prevent or remedy a violation.

      Sec. 30.  1.  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. The affidavit may allege any actual damages suffered by the aggrieved person as a result of the alleged violation.

      2.  An aggrieved person may not file such an affidavit unless the aggrieved person has, on at least two separate occasions, provided the respondent by certified mail, return receipt requested, with written notices of the alleged violation set forth in the affidavit. The notices must:

      (a) Be mailed to the respondent’s last known address.

      (b) Be mailed at least 15 days apart.

      (c) Specify, in reasonable detail, the alleged violation, any actual damages suffered by the aggrieved person as a result of the alleged violation, and any corrective action proposed by the aggrieved person.


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ê2003 Statutes of Nevada, Page 2215 (Chapter 385, SB 100)ê

 

      3.  A written affidavit filed with the Division pursuant to this section must be:

      (a) On a form prescribed by the Division.

      (b) Be accompanied by evidence that:

             (1) The respondent has been given a reasonable opportunity after receiving the written notices to correct the alleged violation; and

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

      4.  The Commission or a hearing panel may impose an administrative fine of not more than $1,000 against any person who knowingly files a false or fraudulent affidavit with the Division.

      Sec. 31.  1.  Upon receipt of an affidavit that complies with the provisions of section 30 of this act, 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 information collected by the Ombudsman during his 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.

      Sec. 32.  1.  Except as otherwise provided in subsection 2, if the Administrator files a formal complaint with the Commission, the Commission or a hearing panel shall hold a hearing on the complaint not later than 90 days after the date that the complaint is filed.

      2.  The Commission or the hearing panel may continue the hearing upon its own motion or upon the written request of a party to the complaint, for good cause shown, including, without limitation, the existence of proceedings for mediation or arbitration or a civil action involving the facts that constitute the basis of the complaint.

      3.  The Division shall give the respondent written notice of the date, time and place of the hearing on the complaint at least 30 days before the date of the hearing. The notice must be:

      (a) Delivered personally to the respondent or mailed to the respondent by certified mail, return receipt requested, to his last known address.

      (b) Accompanied by:

             (1) A copy of the complaint; and

             (2) Copies of all communications, reports, affidavits and depositions in the possession of the Division that are relevant to the complaint.

      4.  At any hearing on the complaint, the Division may not present evidence that was obtained after the notice was given to the respondent pursuant to this section, unless the Division proves to the satisfaction of the Commission or the hearing panel that:


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pursuant to this section, unless the Division proves to the satisfaction of the Commission or the hearing panel that:

      (a) The evidence was not available, after diligent investigation by the Division, before such notice was given to the respondent; and

      (b) The evidence was given or communicated to the respondent immediately after it was obtained by the Division.

      5.  The respondent must file an answer not later than 30 days after the date that notice of the complaint is delivered or mailed by the Division. The answer must:

      (a) Contain an admission or a denial of the allegations contained in the complaint and any defenses upon which the respondent will rely; and

      (b) Be delivered personally to the Division or mailed to the Division by certified mail, return receipt requested.

      6.  If the respondent does not file an answer within the time required by subsection 5, the Division may, after giving the respondent written notice of the default, request the Commission or the hearing panel to enter a finding of default against the respondent. The notice of the default must be delivered personally to the respondent or mailed to the respondent by certified mail, return receipt requested, to his last known address.

      Sec. 33.  Any party to the complaint may be represented by an attorney at any hearing on the complaint.

      Sec. 34.  1.  After conducting its hearings on the complaint, the Commission or the hearing panel shall render a final decision on the merits of the complaint not later than 20 days after the date of the final hearing.

      2.  The Commission or the hearing panel shall notify all parties to the complaint of its decision in writing by certified mail, return receipt requested, not later than 60 days after the date of the final hearing. The written decision must include findings of fact and conclusions of law.

      Sec. 35.  1.  If the Commission or the hearing panel, after notice and hearing, finds that the respondent has committed a violation, the Commission or the hearing panel may take any or all of the following actions:

      (a) Issue an order directing the respondent to cease and desist from continuing to engage in the unlawful conduct that resulted in the violation.

      (b) Issue an order directing the respondent to take affirmative action to correct any conditions resulting from the violation.

      (c) Impose an administrative fine of not more than $1,000 for each violation.

      2.  If the respondent is a member of an executive board or an officer of an association, the Commission or the hearing panel may order the respondent removed from his office or position if the Commission or the hearing panel, after notice and hearing, finds that:

      (a) The respondent has knowingly and willfully committed a violation; and

      (b) The removal is in the best interest of the association.

      3.  If the respondent violates any order issued by the Commission or the hearing panel pursuant to this section, the Commission or the hearing panel, after notice and hearing, may impose an administrative fine of not more than $1,000 for each violation.

      4.  If the Commission or the hearing panel takes any disciplinary action pursuant to this section, the Commission or the hearing panel may order the respondent to pay the costs of the proceedings incurred by the Division, including, without limitation, the cost of the investigation and reasonable attorney’s fees.


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order the respondent to pay the costs of the proceedings incurred by the Division, including, without limitation, the cost of the investigation and reasonable attorney’s fees.

      5.  Notwithstanding any other provision of this section, unless the respondent has knowingly and willfully committed a violation, if the respondent is a member of an executive board or an officer of an association:

      (a) The association is liable for all fines and costs imposed against the respondent pursuant to this section; and

      (b) The respondent may not be held personally liable for those fines and costs.

      Sec. 36.  If the Commission or a hearing panel, after notice and hearing, finds that the executive board of an association 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:

      1.  Order an audit of the association.

      2.  Require the executive board to hire a community manager who holds a permit or certificate.

      Sec. 37.  1.  If the Commission or the Division has reasonable cause to believe, based on evidence satisfactory to it, that any person has committed a violation or will continue to commit violations, the Commission or the Division may bring an action in the district court for the county in which the person resides or, if the person does not reside in this state, in any court of competent jurisdiction in this state, to enjoin that person from continuing to commit the violations or from doing any act in furtherance of the violations.

      2.  The action must be brought in the name of the State of Nevada.

      3.  The court may issue the injunction without:

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

      (b) The filing of any bond.

      Sec. 38.  1.  Notwithstanding any provision of the governing documents to the contrary, and except as otherwise provided in this section, a unit’s owner is entitled to display the flag of the United States, in a manner that is consistent with the Federal Flag Code, from or on:

      (a) A flagpole or staff which is located on exterior property within the boundaries of his unit or which is attached to an exterior limited common element that forms a part of the boundaries of his unit.

      (b) A window, ledge, sill, railing, patio, terrace or balcony of his unit or an exterior limited common element that forms a part of the boundaries of his unit, whether or not the flag is displayed from a flagpole or staff.

      2.  An association may adopt rules that:

      (a) Prohibit the display of the flag of the United States in a manner that is inconsistent with the Federal Flag Code.

      (b) Prohibit the display of the flag of the United States if the flag exceeds 4 feet in its vertical dimension or 6 feet in its horizontal dimension. For the purposes of this paragraph, the horizontal dimension of the flag is the dimension that is parallel with the horizontal stripes of the flag, regardless of the position in which the flay is displayed.

      (c) Establish a maximum number of flags of the United States that may be displayed from, on or around the exterior of a unit. The maximum number may be one.


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      (d) Prohibit the display of the flag of the United States from a flagpole or staff that exceeds 25 feet in height.

      (e) Prohibit the display of the flag of the United States in a manner that poses a real and substantial danger to health or safety.

      3.  As used in this section:

      (a) “Federal Flag Code” means the rules and customs pertaining to the display and use of the flag of the United States which are codified in 4 U.S.C. §§ 5 to 10, inclusive, as altered, modified or repealed by the President of the United States pursuant to 4 U.S.C. § 10, and any additional rules pertaining to the display and use of the flag of the United States which are prescribed by the President pursuant to 4 U.S.C. § 10.

      (b) “Flag of the United States” does not include a depiction or emblem of the flag of the United States that is made of balloons, flora, lights, paint, paving materials, roofing, siding or any other similar building, decorative or landscaping component or material.

      Sec. 39.  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, 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 subject of the complaint will be placed on the agenda of the next regularly scheduled meeting of the executive board.

      Sec. 40.  A member of an executive board, an officer of an association or a community manager shall not solicit or accept any form of compensation, gratuity or other remuneration that:

      1.  Would improperly influence or would appear to a reasonable person to improperly influence the decisions made by those persons; or

      2.  Would result or would appear to a reasonable person to result in a conflict of interest for those persons.

      Sec. 41.  An executive board, a member of an executive board 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; or

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

      Sec. 42.  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 goods or services to the association; or

      (b) Otherwise accept any commission, personal profit or compensation of any kind from the association for providing goods or services to the association.


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      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 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. 43.  1.  If a common-interest community is developed in separate phases and any declarant or successor declarant is constructing any common elements that will be added to the association’s common elements after the date on which the units’ owners other than the declarant may elect a majority of the members of the executive board, the declarant or successor declarant who is constructing such additional common elements is responsible for:

      (a) Paying all expenses related to the additional common elements which are incurred before the conveyance of the additional common elements to the association; and

      (b) Except as otherwise provided in NRS 116.31038, delivering to the association that declarant’s share of the amount specified in the study of the reserves completed pursuant to subsection 2.

      2.  Before conveying the additional common elements to the association, the declarant or successor declarant who constructed the additional common elements shall deliver to the association a study of the reserves for the additional common elements which satisfies the requirements of NRS 116.31152.

      3.  As used in this section, “successor declarant” includes, without limitation, any successor declarant who does not control the association established by the initial declarant.

      Sec. 44.  1.  Except as otherwise provided in subsection 2, in a county whose population is 400,000 or more, a person who owns, or directly or indirectly has an interest in, one or more units within a planned community that are restricted to residential use by the declaration, may use that unit or one of those units for a transient commercial use only if:

      (a) The governing documents of the association and any master association do not prohibit such use;

      (b) The executive board of the association and any master association approve the transient commercial use of the unit, except that such approval is not required if the planned community and one or more hotels are subject to the governing documents of a master association and those governing documents do not prohibit such use; and

      (c) The unit is properly zoned for the transient commercial use and any license required by the local government for the transient commercial use is obtained.

      2.  In a county whose population is 400,000 or more, a declarant who owns, or directly or indirectly has an interest in, one or more units within a planned community under the governing documents of the association that are restricted to residential use by the declaration, may use that unit or those units for a transient commercial use during the period that the declarant is offering units for sale within the planned community if such use complies with the requirements set forth in paragraphs (a) and (c) of subsection 1.


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use complies with the requirements set forth in paragraphs (a) and (c) of subsection 1.

      3.  The association and any master association may establish requirements for the transient commercial use of a unit pursuant to the provisions of this section, including, without limitation, the payment of additional fees that are related to any increase in services or other costs associated with the transient commercial use of the unit.

      4.  As used in this section:

      (a) “Remuneration” means any compensation, money, rent or other valuable consideration given in return for the occupancy, possession or use of a unit.

      (b) “Transient commercial use” means the use of a unit, for remuneration, as a hostel, hotel, inn, motel, resort, vacation rental or other form of transient lodging if the term of the occupancy, possession or use of the unit is for less than 30 consecutive calendar days.

      Sec. 45.  The executive board of a master association of any common-interest community that was created before January 1, 1975, and is located in a county whose population is 400,000 or more may record an amendment to the declaration pursuant to which the master association reallocates the costs of administering the common elements of the master association among the units of the common-interest community uniformly and based upon the actual costs associated with each unit.

      Sec. 46.  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.

      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.

      3.  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.

      4.  Notwithstanding any provision in the declaration, the election of any delegate or representative must be conducted by secret written ballot.

      5.  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.


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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. 47.  1.  A unit’s owner shall adhere to a schedule required by the association for:

      (a) The completion of the design of a unit or the design of an improvement to a unit;

      (b) The commencement of the construction of a unit or the construction of an improvement to a unit;

      (c) The completion of the construction of a unit or the construction of an improvement to the unit; or

      (d) The issuance of a permit which is necessary for the occupancy of a unit or for the use of an improvement to a unit.

      2.  The association may impose and enforce a construction penalty against a unit’s owner who fails to adhere to a schedule as required pursuant to subsection 1 if:

      (a) The maximum amount of the construction penalty and the schedule are set forth in:

             (1) The declaration;

             (2) Another document related to the common-interest community that is recorded before the date on which the unit’s owner acquired title to the unit; or

             (3) A contract between the unit’s owner and the association; and

      (b) The unit’s owner receives notice of the alleged violation which informs him that he has a right to a hearing on the alleged violation.

      3.  For the purposes of this chapter, a construction penalty is not a fine.

      Sec. 47.5.  In conducting any meetings, a rural agricultural residential common-interest community must comply with the provisions set forth in chapter 241 of NRS concerning open meetings which are generally applicable to public bodies.

      Sec. 48.  If a matter governed by this chapter is also governed by chapter 78 of NRS, NRS 81.010 to 81.160, inclusive, or chapter 82 of NRS and there is a conflict between the provisions of this chapter and the provisions of chapter 78 of NRS, NRS 81.010 to 81.160, inclusive, or chapter 82 of NRS, the provisions of this chapter prevail.

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

      116.1103  [In] As used in this chapter and in the declaration and bylaws [(NRS 116.3106), unless specifically provided otherwise or] of an association, unless the context otherwise requires, [and in this chapter,] the words and terms defined in NRS 116.110305 to 116.110393, inclusive, and sections 2 to 12, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 50.  NRS 116.110305 is hereby amended to read as follows:

      116.110305  “Administrator” means the Real Estate Administrator . [of the Real Estate Division of the Department of Business and Industry.]


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      Sec. 51.  NRS 116.11145 is hereby amended to read as follows:

      116.11145  1.  To carry out the purposes of this chapter, the [Real Estate] Commission, or any member thereof [,] acting on behalf of the Commission or acting on behalf of a hearing panel, may issue subpoenas to compel the attendance of witnesses and the production of books, records and other papers.

      2.  If any person fails to comply with a subpoena issued by the Commission or any member thereof pursuant to this section within [10] 20 days after [its issuance,] the date of service of the subpoena, the Commission may petition the district court for an order of the court compelling compliance with the subpoena.

      3.  Upon such a petition, the court shall enter an order directing the person subpoenaed to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than [10] 20 days after the date of service of the order, and show cause why he has not complied with the subpoena. A certified copy must be served upon the person subpoenaed.

      4.  If it appears to the court that the subpoena was regularly issued by the Commission [,] or any member thereof pursuant to this section, the court shall enter an order compelling compliance with the subpoena, and upon failure to obey the order the person shall be dealt with as for contempt of court.

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

      116.1116  1.  The Office of the Ombudsman for Owners in Common-Interest Communities is hereby created within the [Real Estate Division of the Department of Business and Industry.] Division.

      2.  The Administrator shall appoint the Ombudsman . [for Owners in Common-Interest Communities.] The Ombudsman [for Owners in Common-Interest Communities] is in the unclassified service of the State.

      3.  The Ombudsman [for Owners in Common-Interest Communities] must be qualified by training and experience to perform the duties and functions of his office.

      4.  [The Ombudsman for Owners in Common-Interest Communities] In addition to any other duties set forth in this chapter, the Ombudsman shall:

      (a) Assist in processing claims submitted to mediation or arbitration pursuant to NRS 38.300 to 38.360, inclusive;

      (b) Assist owners in common-interest communities to understand their rights and responsibilities as set forth in this chapter and the governing documents of their associations, including, without limitation, publishing materials related to those rights and responsibilities;

      (c) Assist [persons appointed or elected to serve on] members of executive boards and officers of associations to carry out their duties; [and]

      (d) When appropriate, investigate disputes involving the provisions of this chapter or the governing documents of an association and assist in resolving such disputes; and

      (e) Compile and maintain a registration of each association organized within the State which includes, without limitation [:] , the following information:

             (1) The name, address and telephone number of the association;

             (2) The name of [the person engaged in property management] each community manager for the common-interest community [or] and the name of [the] any other person who [manages] is authorized to manage the property at the site of the common-interest community;


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             (3) The names, mailing addresses and telephone numbers of the members of the executive board of the association;

             (4) The name of the declarant;

             (5) The number of units in the common-interest community; [and]

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

             (7) The number of foreclosures which were completed on units within the common-interest community and which were based on liens for the failure of the unit’s owner to pay any assessments levied against the unit or any fines imposed against the unit’s owner; and

             (8) Whether the study of the reserves of the association has been conducted pursuant to NRS 116.31152 and, if so, the date on which it was completed.

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

      116.1117  1.  There is hereby created the Account for [the Ombudsman for Owners in] Common-Interest Communities in the State General Fund. The Account must be administered by the Administrator.

      2.  [The] Except as otherwise provided in subsection 3, all money received by the Commission, a hearing panel or the Division pursuant to this chapter, including, without limitation, the fees collected pursuant to NRS 116.31155 , must be [credited to] deposited into the Account.

      3.  If the Commission imposes a fine or penalty, the Commission shall deposit the money collected from the imposition of the fine or penalty with the State Treasurer for credit to the State General Fund. If the money is so deposited, the Commission may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is required to pay attorney’s fees or the costs of an investigation, or both.

      4.  The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account.

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

      (a) The costs and expenses of [administering] the Commission and the Office of the Ombudsman [for Owners in Common -Interest Communities and for the payment of fees for a mediator or an arbitrator] ; and

      (b) If authorized by the Commission or any regulations adopted by the Commission, the costs and expenses of subsidizing proceedings for mediation and arbitration conducted pursuant to NRS [38.330.] 38.300 to 38.360, inclusive.

      Sec. 54.  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) Associations 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] Except as otherwise provided in section 47.5 of this act, 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 [the] 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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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 of the association;

      (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 section 46 of this act 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.  [For the purposes of this section, the Administrator] The Commission shall establish, by regulation, the criteria for determining whether an association [is created for the limited purpose of maintaining the landscape of the common elements of a common-interest community, maintaining facilities for flood control or maintaining a rural agricultural residential] or a common-interest community [.] satisfies the requirements for an exemption from any provision of this chapter.

      Sec. 55.  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 116.1105, 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 116.3119, inclusive, and section 47 of this act and the definitions set forth in NRS 116.110305 to 116.110393, inclusive, and sections 2 to 12, inclusive, of this act, to the extent that such definitions are necessary in construing any of those [sections,] provisions, apply to a residential planned community containing more than six units.

      Sec. 56.  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 [created before January 1, 1992, that does not conform to] that violates the provisions of this chapter 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.


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law, and any such declaration, bylaw or other governing document is not required to be amended to conform to those provisions.

      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. 57.  NRS 116.2103 is hereby amended to read as follows:

      116.2103  1.  [All provisions of the declaration and bylaws are severable.] The inclusion in a governing document of an association of a provision that violates any provision of this chapter does not render any other provisions of the governing document invalid or otherwise unenforceable if the other provisions can be given effect in accordance with their original intent and the provisions of this chapter.

      2.  The rule against perpetuities and NRS 111.103 to 111.1039, inclusive, do not apply to defeat any provision of the declaration, bylaws, rules or regulations adopted pursuant to NRS 116.3102.

      3.  In the event of a conflict between the provisions of the declaration and the bylaws, the declaration prevails except to the extent the declaration is inconsistent with this chapter.

      4.  Title to a unit and common elements is not rendered unmarketable or otherwise affected by reason of an insubstantial failure of the declaration to comply with this chapter. Whether a substantial failure impairs marketability is not affected by this chapter.

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

      116.2111  [Subject]

      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:

      [1.] (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;

      [2.] (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

      [3.] (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 [subsection] paragraph is not an alteration of boundaries.


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      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) 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; or

             (3) Shutters to improve the security of the unit or to aid in reducing the costs of energy for the unit.

      (c) 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.

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

      116.212  1.  If the declaration provides that any of the powers described in NRS 116.3102 are to be exercised by or may be delegated to a profit or nonprofit corporation that exercises those or other powers on behalf of one or more common-interest communities or for the benefit of the units’ owners of one or more common-interest communities, or on behalf of a common-interest community and a time-share plan created pursuant to chapter 119A of NRS, all provisions of this chapter applicable to unit-owners’ associations apply to any such corporation, except as modified by this section.

      2.  Unless it is acting in the capacity of an association described in NRS 116.3101, a master association may exercise the powers set forth in paragraph (b) of subsection 1 of NRS 116.3102 only to the extent expressly permitted in:

      (a) The declarations of common-interest communities which are part of the master association or expressly described in the delegations of power from those common-interest communities to the master association; or

      (b) The declaration of the common-interest community which is a part of the master association and the time-share instrument creating the time-share plan governed by the master association.

      3.  If the declaration of any common-interest community provides that the executive board may delegate certain powers to a master association, the members of the executive board have no liability for the acts or omissions of the master association with respect to those powers following delegation.

      4.  The rights and responsibilities of units’ owners with respect to the unit-owners’ association set forth in NRS 116.3103 [to 116.31038, inclusive,] , 116.31032, 116.31034, 116.31036, 116.3108, 116.31085, 116.3109, 116.311 and 116.3112 and section 46 of this act apply in the conduct of the affairs of a master association only to persons who elect the board of a master association, whether or not those persons are otherwise units’ owners within the meaning of this chapter.

      5.  Even if a master association is also an association described in NRS 116.3101, the certificate of incorporation or other instrument creating the master association and the declaration of each common-interest community, the powers of which are assigned by the declaration or delegated to the master association, may provide that the executive board of the master association must be elected after the period of the declarant’s control in any of the following ways:


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master association and the declaration of each common-interest community, the powers of which are assigned by the declaration or delegated to the master association, may provide that the executive board of the master association must be elected after the period of the declarant’s control in any of the following ways:

      (a) All units’ owners of all common-interest communities subject to the master association may elect all members of the master association’s executive board.

      (b) All members of the executive boards of all common-interest communities subject to the master association may elect all members of the master association’s executive board.

      (c) All units’ owners of each common-interest community subject to the master association may elect specified members of the master association’s executive board.

      (d) All members of the executive board of each common-interest community subject to the master association may elect specified members of the master association’s executive board.

      Sec. 60.  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:

      (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 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

             (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 units’ owners;

      (k) Impose charges for late payment of assessments , impose construction penalties when authorized pursuant to section 47 of this act and, except as otherwise provided in NRS 116.31031, after notice and an opportunity to be heard, levy reasonable fines for violations of the [declaration, bylaws, rules and regulations] governing documents of the association;


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[declaration, bylaws, rules and regulations] governing documents of the association;

      (l) Impose reasonable charges for the preparation and recordation of amendments to the declaration, the information required by NRS 116.4109 or statements of unpaid assessments;

      (m) Provide for the indemnification of its officers and executive board and maintain directors’ and officers’ liability insurance;

      (n) 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;

      (o) Exercise any other powers conferred by the declaration or bylaws;

      (p) Exercise all other powers that may be exercised in this state by legal entities of the same type as the association;

      (q) Direct the removal of vehicles improperly parked on property owned or leased by the association, pursuant to NRS 487.038; and

      (r) 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.

      Sec. 61.  NRS 116.31031 is hereby amended to read as follows:

      116.31031  1.  If a unit’s owner [,] or a tenant or guest of a unit’s owner [, does not comply with a] violates any provision of the governing documents of an association, the executive board of the association may, if the governing documents so provide:

      (a) Prohibit, for a reasonable time, the unit’s owner [,] or the tenant or guest 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 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) [Require] Impose a fine against the unit’s owner [,] or the tenant or guest of the unit’s owner [, to pay a fine] for each [failure to comply that does not threaten the health and welfare of the common-interest community.] violation, except that a fine may not be imposed for a violation that is the subject of a construction penalty pursuant to section 47 of this act. The fine must be commensurate with the severity of the violation, but must not exceed $100 for each violation or a total amount of $500, 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.  If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days , or [a] within any longer period [as] 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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      3.  Except as otherwise provided in subsection 2, the imposition of a fine pursuant to this section must comply with the requirements of subsection 6 of NRS 116.31065.

      4.  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.

      5.  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. 62.  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. The executive board shall elect the officers [.] of the association. The members [and officers] 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 [. A] , 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 . [may be elected to succeed himself.]

      3.  The governing documents of the association must [set forth the month during which elections for the members of the executive board must be held after the termination of any period of the declarant’s control.

      3.] 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.


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ê2003 Statutes of Nevada, Page 2230 (Chapter 385, SB 100)ê

 

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.

      [4.] 5.  Each person whose name is placed on the ballot as a candidate for a member of the executive board must 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. The candidate must make the disclosure, in writing, to each member of the association 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 of an association or an officer of that 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.

      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.

      [5.] 8.  The election of any member of the executive board must be conducted by secret written ballot [. The] unless the declaration of the association provides that voting rights may be exercised by delegates or representatives as set forth in section 46 of this act. 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 .


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ê2003 Statutes of Nevada, Page 2231 (Chapter 385, SB 100)ê

 

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 . [, a secret ballot and a return envelope.

      6.] (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.

      10.  Each member of the executive board shall, within [30] 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. 63.  NRS 116.31036 is hereby amended to read as follows:

      116.31036  1.  Notwithstanding any provision of the declaration or bylaws to the contrary, the units’ owners, by a two-thirds vote of all persons [present and] entitled to vote at any meeting of the units’ owners at which a quorum is present, may remove any member of the executive board with or without cause, other than a member appointed by the declarant.

      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 section 46 of this act. 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.


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ê2003 Statutes of Nevada, Page 2232 (Chapter 385, SB 100)ê

 

      (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 sections 27 to 37, inclusive, of this act.

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

      116.3106  1.  The bylaws of the association must provide:

      (a) The number of members of the executive board and the titles of the officers of the association;

      (b) For election by the executive board of a president, treasurer, secretary and any other officers of the association the bylaws specify;

      (c) The qualifications, powers and duties, terms of office and manner of electing and removing officers of the association and members of the executive board and filling vacancies;

      (d) Which [,] powers, if any, [of its powers] that the executive board or the officers of the association may delegate to other persons or to a [managing agent;] community manager;

      (e) Which of its officers may prepare, execute, certify and record amendments to the declaration on behalf of the association;

      (f) Procedural rules for conducting meetings of the association; [and]

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

      (h) Procedural rules for conducting elections.

      2.  Except as otherwise provided in the declaration, the bylaws may provide for any other matters the association deems necessary and appropriate.

      3.  The bylaws must be written in plain English.

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

      116.3108  1.  A meeting of the units’ owners of an association must be held at least once each year. If the governing documents of a common‑interest community 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. Special meetings of the units’ owners of an association may be called by the president, a majority of the executive board or by units’ owners having 10 percent, or any lower percentage specified in the bylaws, of the votes in the association.


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ê2003 Statutes of Nevada, Page 2233 (Chapter 385, SB 100)ê

 

      2.  Not less than 10 nor more than 60 days in advance of any meeting of the units’ owners of an association, 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 [distributed to him] provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of [making the distribution.] 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.

      3.  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).

      4.  If the association adopts a policy imposing [a fine on a unit’s owner for the violation of the declaration, bylaws or other rules established by] 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.

      5.  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 [any meeting of the units’ owners,] 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 [who pays] upon request and, if required by the executive board, upon payment to the association of the cost of providing the copy to [him.] the unit’s owner.

      6.  Except as otherwise provided in subsection 7, the minutes of each meeting of the units’ owners must include:

      (a) The date, time and place of the meeting;


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ê2003 Statutes of Nevada, Page 2234 (Chapter 385, SB 100)ê

 

      (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.

      7.  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.

      8.  The association shall maintain the minutes of each meeting of the units’ owners until the common-interest community is terminated.

      9.  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.

      10.  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 of the association;

      (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 3.

      Sec. 66.  NRS 116.31083 is hereby amended to read as follows:

      116.31083  1.  A meeting of the executive board of an association 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 of an association 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 of the association. The notice must include notification of the right of a unit’s owner to:


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ê2003 Statutes of Nevada, Page 2235 (Chapter 385, SB 100)ê

 

      (a) Have a copy of the minutes or a summary of the minutes of the meeting [distributed to him] provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of [making the distribution.] 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 of an association must comply with the provisions of subsection 3 of NRS 116.3108. The period required to be devoted to comments by 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 days, unless the declaration or bylaws of the association impose more stringent standards, the executive board shall review at one of its meetings:

      (a) A current reconciliation of the operating account of the association;

      (b) A current reconciliation of the reserve account of the association;

      (c) The actual revenues and expenses for the reserve account, compared to the budget for that account for the current year;

      (d) The latest account statements prepared by the financial institutions in which the accounts of the association are maintained;

      (e) An income and expense statement, prepared on at least a quarterly basis, for the operating and reserve accounts of the association; 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 [of a] to be recorded or otherwise taken at each meeting of the executive board . [of an association must be] 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 . [in accordance with the provisions of subsection 5 of NRS 116.3108.] 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.


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ê2003 Statutes of Nevada, Page 2236 (Chapter 385, SB 100)ê

 

      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 of the association;

      (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. 67.  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 of the association 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 [matters relating to personnel; or

      (c) 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 , [alleged to have been committed by a unit’s owner,] including, without limitation, the failure to pay an assessment . [, except as otherwise provided in subsection 3.

      3.] (d) Discuss the alleged failure of a unit’s owner to adhere to a schedule required pursuant to section 47 of this act 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 [unit’s owner who allegedly committed] person who may be sanctioned for the alleged violation requests in writing that the hearing be conducted by the executive board at an open meeting. The [unit’s owner who is alleged to have committed] person who may be sanctioned for the alleged violation [may] is entitled to attend the hearing and testify concerning the alleged violation, but the person may be excluded by the executive board from any other portion of the hearing, including, without limitation, the deliberations of the executive board.


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ê2003 Statutes of Nevada, Page 2237 (Chapter 385, SB 100)ê

 

of the hearing, including, without limitation, the deliberations of the executive board.

      [4.] 5.  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 [3] 4 concerning an alleged violation and, upon request, provide a copy of the decision to the [unit’s owner who was the subject of the hearing] person who was subject to being sanctioned at the hearing or to his designated representative.

      [5.] 6.  Except as otherwise provided in subsection [3,] 4, a unit’s owner is not entitled to attend or speak at a meeting of the executive board held in executive session.

      Sec. 68.  NRS 116.3109 is hereby amended to read as follows:

      116.3109  1.  Except as otherwise provided in this section and [unless the bylaws] NRS 116.31034, and except when the governing documents provide otherwise, a quorum is present throughout any meeting of the association if [persons entitled to cast 20 percent of the votes that may be cast for election of the executive board] the number of members of the association who are present in person or by proxy at the beginning of the meeting [.] equals or exceeds 20 percent of the total number of voting members of the association.

      2.  If the governing documents of an association contain a quorum requirement for a meeting of the association that is greater than the 20 percent required by subsection 1 and, after proper notice has been given for a meeting, the members of the association who are present in person or by proxy at the meeting are unable to hold the meeting because a quorum is not present at the beginning of the meeting, the members who are present in person at the meeting may adjourn the meeting to a time that is not less than 48 hours or more than 30 days from the date of the meeting. At the subsequent meeting:

      (a) A quorum shall be deemed to be present if the number of members of the association who are present in person or by proxy at the beginning of the subsequent meeting equals or exceeds 20 percent of the total number of voting members of the association; and

      (b) If such a quorum is deemed to be present but the actual number of members who are present in person or by proxy at the beginning of the subsequent meeting is less than the number of members who are required for a quorum under the governing documents, the members who are present in person or by proxy at the subsequent meeting may take action only on those matters that were included as items on the agenda of the original meeting.

The provisions of this subsection do not change the actual number of votes that are required under the governing documents for taking action on any particular matter.

      3.  Unless the [bylaws] governing documents specify a larger percentage, a quorum is deemed present throughout any meeting of the executive board if persons entitled to cast 50 percent of the votes on that board are present at the beginning of the meeting.

      [3.  For the purposes of determining whether a quorum is present for the election of any member of the executive board, only the secret written ballots that are returned to the association may be counted.]


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ê2003 Statutes of Nevada, Page 2238 (Chapter 385, SB 100)ê

 

      Sec. 69.  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 , [or] another unit’s owner who resides in the common-interest community [.] , or to a delegate or representative when authorized pursuant to section 46 of this act. 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. [A proxy is void if:

      (a) It is not dated or purports]

      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 . [;

      (b) It does not]

      (c) The proxy must designate the meeting for which it is executed.

      (d) The proxy must designate [the votes that must be cast on behalf of] each specific item on the agenda of the meeting for which the unit’s owner [who] has executed the proxy [; or

      (c)] , 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.

      (e) The holder of the proxy [does not] must disclose at the beginning of the meeting for which the proxy is executed the number of proxies pursuant to which [he] the holder will be casting votes . [and the voting instructions received for each proxy.]

      4.  A proxy terminates immediately after the conclusion of the meeting for which it [was] is executed.

      5.  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 [.

      3.  Only a vote cast in person, by secret ballot or by proxy, may be counted.


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ê2003 Statutes of Nevada, Page 2239 (Chapter 385, SB 100)ê

 

      4.] unless the proxy is exercised through a delegate or representative authorized pursuant to section 46 of this act.

      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 [of] who have leased the units:

      (a) The provisions of subsections 1 [and 2] to 7, inclusive, apply to the lessees as if they were the units’ owners;

      (b) [Units’] The units’ owners who have leased their units to [other persons] the lessees may not cast votes on those specified matters; [and]

      (c) [Lessees] The lessees are entitled to notice of meetings, access to records [,] and other rights respecting those matters as if they were the units’ owners [.

Units’] ; and

      (d) The units’ owners must [also] be given notice, in the manner provided in NRS 116.3108, of all meetings at which the lessees are entitled to vote.

      [5.  No]

      9.  If any votes are allocated to a unit that is owned by the association , those votes may not be cast [.

      6.  Votes cast for the election of a member of the executive board of an association must be counted in public.] , by proxy or otherwise, for any purpose.

      Sec. 70.  NRS 116.31139 is hereby amended to read as follows:

      116.31139  1.  [An association may employ a person engaged in property management for the common-interest community.

      2.] Except as otherwise provided in this section, a person [engaged in property management for a common-interest community must:

      (a) Hold] shall not act as a community manager unless the person holds a permit [to engage in property management that is issued pursuant to the provisions of chapter 645 of NRS; or

      (b) Hold] or a certificate . [issued by the Real Estate Commission pursuant to subsection 3.

      3.  The Real Estate]

      2.  The Commission shall [provide] by regulation provide for the [issuance of certificates for the management of common-interest communities to persons who are not otherwise authorized to engage in property management pursuant to the provisions of chapter 645 of NRS. The regulations:

      (a) Must establish the qualifications for the issuance of such a certificate, including the education and experience required to obtain such a certificate;

      (b) May require applicants to pass an examination in order to obtain a certificate;

      (c) Must establish] standards of practice for [persons engaged in property management for a common-interest community;

      (d) 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; and


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      (e) Must establish rules of practice and procedure for conducting disciplinary hearings.

The Real Estate Division of the Department of Business and Industry] community managers who hold permits or certificates.

      3.  The Division may investigate [the property managers to whom certificates have been issued] any community manager who holds a permit or certificate to ensure [their compliance] that the community manager is complying with the standards of practice adopted [pursuant to this subsection and collect a fee for the issuance of a certificate] by the Commission . [in an amount not to exceed the administrative costs of issuing the certificate.]

      4.  In addition to any other remedy or penalty, if the Commission or a hearing panel, after notice and hearing, finds that a community manager who holds a permit or certificate has violated any provision of this chapter or any of the standards of practice adopted by the Commission, the Commission or the hearing panel may take appropriate disciplinary action against the community manager.

      5.  The provisions of [subsection 2] this section do not apply to:

      (a) [A person who is engaged in property management for a common-interest community on October 1, 1999, and is granted an exemption from the requirements of subsection 2 by the Administrator upon demonstration that he is qualified and competent to engage in property management for a common-interest community.

      (b)] A financial institution [.

      (c)] that is engaging in an activity permitted by law.

      (b) An attorney who is licensed to practice in this state [.

      (d)] and who is acting in that capacity.

      (c) A trustee [.

      (e) An employee of a corporation who manages only] with respect to the property of the [corporation.

      (f)] trust.

      (d) A declarant [.

      (g)] , an affiliate of the declarant and any officers or employees of the declarant or an affiliate of the declarant when engaging in the management of a common-interest community during the period in which the declarant controls that common-interest community.

      (e) A receiver [.

      5.  As used in this section, “property management” means the physical, administrative or financial maintenance and management of real property, or the supervision of those activities for a fee, commission or other compensation or valuable consideration.] with respect to property subject to the receivership.

      (f) 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.

      Sec. 71.  NRS 116.311391 is hereby amended to read as follows:

      116.311391  The expiration or revocation of a permit or certificate [for the management of a common-interest community] by operation of law or by order or decision of [the Real Estate Commission or a] any agency or court of competent jurisdiction, or the voluntary surrender of such a permit or certificate by the holder of the permit or certificate does not:

      1.  Prohibit the [Real Estate Division of the Department of Business and Industry or Real Estate] Commission or the Division from initiating or continuing an investigation of, or action or disciplinary proceeding against, the holder of the permit or certificate as authorized pursuant to the provisions of this chapter or the regulations adopted pursuant thereto; or


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continuing an investigation of, or action or disciplinary proceeding against, the holder of the permit or certificate as authorized pursuant to the provisions of this chapter 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 the regulations adopted pursuant thereto against the holder of the permit or certificate.

      Sec. 72.  NRS 116.31151 is hereby amended to read as follows:

      116.31151  1.  Except as otherwise provided in subsection 2 and unless the declaration of a common‑interest community imposes more stringent standards, the executive board of an association shall, not less than 30 days or more than 60 days before the beginning of the fiscal year of the association, prepare and distribute to each unit’s owner a copy of:

      (a) The budget for the daily operation of the association. The budget must include, without limitation, the estimated annual revenue and expenditures of the association and any contributions to be made to the reserve account of the association.

      (b) The budget to maintain the reserve required by paragraph (b) of subsection 2 of NRS 116.3115. The budget must include, without limitation:

             (1) The current estimated replacement cost, estimated remaining life and estimated useful life of each major component of the common elements;

             (2) As of the end of the fiscal year for which the budget is prepared, the current estimate of the amount of cash reserves that are necessary, and the current amount of accumulated cash reserves that are set aside, to repair, replace or restore the major components of the common elements;

             (3) A statement as to whether the executive board has determined or anticipates that the levy of one or more special assessments will be required to repair, replace or restore any major component of the common elements or to provide adequate reserves for that purpose; and

             (4) A general statement describing the procedures used for the estimation and accumulation of cash reserves pursuant to subparagraph (2), including, without limitation, the qualifications of the person responsible for the preparation of the study of the reserves required by NRS 116.31152.

      2.  In lieu of distributing copies of the budgets of the association required by subsection 1, the executive board may distribute to each unit’s owner a summary of those budgets, accompanied by a written notice that [the] :

      (a) The budgets are available for review at the business office of the association or some other suitable location within the county where the common‑interest community is situated or, if it is situated in more than one county, within one of those counties; and [that copies]

      (b) Copies of the budgets will be provided upon request.

      Sec. 73.  NRS 116.31152 is hereby amended to read as follows:

      116.31152  1.  The executive board of an association shall:

      (a) Cause to be conducted , at least once every 5 years, a study of the reserves required to repair, replace and restore the major components of the common elements;

      (b) Review the results of that study at least annually to determine if those reserves are sufficient; and

      (c) Make any adjustments it deems necessary to maintain the required reserves.

      2.  The study of the reserves required by subsection 1 must be conducted by a person who is qualified by training and experience to conduct such a study, including , without limitation, a member of the executive board, a unit’s owner or [the property manager of the association] a community manager who is so qualified.


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such a study, including , without limitation, a member of the executive board, a unit’s owner or [the property manager of the association] a community manager who is so qualified. The study of the reserves must include, without limitation:

      (a) A summary of an inspection of the major components of the common elements that the association is obligated to repair, replace or restore;

      (b) An identification of the major components of the common elements that the association is obligated to repair, replace or restore which have a remaining useful life of less than 30 years;

      (c) An estimate of the remaining useful life of each major component identified pursuant to paragraph (b);

      (d) An estimate of the cost of repair, replacement or restoration of each major component identified pursuant to paragraph (b) during and at the end of its useful life; and

      (e) An estimate of the total annual assessment that may be required to cover the cost of repairing, replacement or restoration of the major components identified pursuant to paragraph (b), after subtracting the reserves of the association as of the date of the study.

      3.  The results of the study of the reserves required by subsection 1 must be submitted to the Commission not later than 45 days after the date that the executive board of the association adopts the results of the study.

      4.  The [Administrator] Commission shall adopt by regulation the qualifications required for conducting [a] the study of the reserves required by subsection 1.

      5.  If a common-interest community was developed as part of a planned unit development pursuant to chapter 278A of NRS and is subject to an agreement with a city or county to receive credit against the amount of the residential construction tax that is imposed pursuant to NRS 278.4983 and 278.4985, the association that is organized for the common-interest community may use the money from that credit for the repair, replacement or restoration of park facilities and related improvements if:

      (a) The park facilities and related improvements are identified as major components of the common elements of the association; and

      (b) The association is obligated to repair, replace or restore the park facilities and related improvements in accordance with the study of the reserves required by subsection 1.

      Sec. 74.  NRS 116.31155 is hereby amended to read as follows:

      116.31155  1.  An association shall:

      (a) If the association is required to pay the fee imposed by NRS 78.150 , 82.193 or [82.193,] 86.263, 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, pay to the Administrator a fee established by regulation of the Administrator for each unit in the association.

      2.  The fees required to be paid pursuant to this section must be:

      (a) Paid at such times as are established by the [Administrator.] Division.

      (b) Deposited with the State Treasurer for credit to the Account for [the Ombudsman for Owners in] Common-Interest Communities created [pursuant to] by NRS 116.1117.

      (c) Established on the basis of the actual [cost] costs of administering the Office of the Ombudsman [for Owners in Common-Interest Communities] and the Commission and not on a basis which includes any subsidy [for the Office.]


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and the Commission and not on a basis which includes any subsidy [for the Office.] beyond those actual costs. In no event may the fees required to be paid pursuant to this section exceed $3 per unit.

      3.  The Administrator may by regulation establish an administrative penalty to be imposed against an association that violates the provisions of this section by failing to pay the fees owed by the association within the times established by the Division. The administrative penalty that is imposed for each violation may not exceed 10 percent of the amount of the fees owed by the association or $500, whichever amount is less.

      4.  A unit’s owner may not be required to pay any portion of the fees or any administrative penalties required to be paid pursuant to this section to a master association and to an association organized pursuant to NRS 116.3101.

      [4.] 5.  Upon the payment of the fees and any administrative penalties required by this section, the Administrator shall provide to the association evidence that it paid the fees and the administrative penalties in compliance with this section.

      Sec. 75.  NRS 116.31158 is hereby amended to read as follows:

      116.31158  1.  Each association shall, at the time it pays the fee required by NRS 116.31155, register with the Ombudsman [for Owners in Common-Interest Communities] on a form prescribed by the Ombudsman.

      2.  The form for registration must include, without limitation, the information required to be maintained pursuant to paragraph [(d)] (e) of subsection 4 of NRS 116.1116.

      Sec. 76.  NRS 116.3116 is hereby amended to read as follows:

      116.3116  1.  The association has a lien on a unit for any construction penalty that is imposed against the unit’s owner pursuant to section 47 of this act, any assessment levied against that unit or any fines imposed against the unit’s owner from the time the construction penalty, assessment or fine becomes due. Unless the declaration otherwise provides, any penalties, fees, charges, late charges, fines and interest charged pursuant to paragraphs (j), (k) and (l) of subsection 1 of NRS 116.3102 are enforceable as assessments under this section. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment thereof becomes due.

      2.  A lien under this section is prior to all other liens and encumbrances on a unit except:

      (a) Liens and encumbrances recorded before the recordation of the declaration and, in a cooperative, liens and encumbrances which the association creates, assumes or takes subject to;

      (b) A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent [,] or, in a cooperative, the first security interest encumbering only the unit’s owner’s interest and perfected before the date on which the assessment sought to be enforced became delinquent; and

      (c) Liens for real estate taxes and other governmental assessments or charges against the unit or cooperative.

The lien is also prior to all security interests described in paragraph (b) to the extent of the assessments for common expenses based on the periodic budget adopted by the association pursuant to NRS 116.3115 which would have become due in the absence of acceleration during the 6 months immediately preceding institution of an action to enforce the lien. This subsection does not affect the priority of mechanics’ or materialmen’s liens, or the priority of liens for other assessments made by the association.


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not affect the priority of mechanics’ or materialmen’s liens, or the priority of liens for other assessments made by the association.

      3.  Unless the declaration otherwise provides, if two or more associations have liens for assessments created at any time on the same property, those liens have equal priority.

      4.  Recording of the declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for assessment under this section is required.

      5.  A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within 3 years after the full amount of the assessments becomes due.

      6.  This section does not prohibit actions to recover sums for which subsection 1 creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

      7.  A judgment or decree in any action brought under this section must include costs and reasonable attorney’s fees for the prevailing party.

      8.  The association , upon written request , shall furnish to a unit’s owner a statement setting forth the amount of unpaid assessments against the unit. If the interest of the unit’s owner is real estate [,] or if a lien for the unpaid assessments may be foreclosed under NRS 116.31162 to 116.31168, inclusive, the statement must be in recordable form. The statement must be furnished within 10 business days after receipt of the request and is binding on the association, the executive board and every unit’s owner.

      9.  In a cooperative, upon nonpayment of an assessment on a unit, the unit’s owner may be evicted in the same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and :

      (a) In a cooperative where the owner’s interest in a unit is real estate under NRS 116.1105, the association’s lien may be foreclosed [as provided by this section or by] under NRS 116.31162 to 116.31168, inclusive.

      [10.] (b) In a cooperative where the owner’s interest in a unit is personal property [(] under NRS 116.1105 , [),] the association’s lien [may] :

             (1) May be foreclosed [in like manner] as a security interest under NRS 104.9101 to 104.9709, inclusive [.] ; or

             (2) If the declaration so provides, may be foreclosed under NRS 116.31162 to 116.31168, inclusive.

      Sec. 77.  NRS 116.31162 is hereby amended to read as follows:

      116.31162  1.  Except as otherwise provided in subsection 4, in a condominium, in a planned community, in a cooperative where the owner’s interest in a unit is real estate [as determined pursuant to] under NRS 116.1105, or [a planned community,] in a cooperative where the owner’s interest in a unit is personal property under NRS 116.1105 and the declaration provides that a lien may be foreclosed under NRS 116.31162 to 116.31168, inclusive, the association may foreclose its lien by sale after:

      (a) The association has mailed by certified or registered mail, return receipt requested, to the unit’s owner or his successor in interest, at his address if known [,] and at the address of the unit, a notice of delinquent assessment which states the amount of the assessments and other sums which are due in accordance with subsection 1 of NRS 116.3116, a description of the unit against which the lien is imposed [,] and the name of the record owner of the unit;

      (b) [The] Not less than 30 days after mailing the notice of delinquent assessment pursuant to paragraph (a), the association or other person conducting the sale has executed and caused to be recorded, with the county recorder of the county in which the common-interest community or any part of it is situated, a notice of default and election to sell the unit to satisfy the lien, which contains the same information as the notice of delinquent assessment, but must also describe the deficiency in payment and the name and address of the person authorized by the association to enforce the lien by sale; and


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conducting the sale has executed and caused to be recorded, with the county recorder of the county in which the common-interest community or any part of it is situated, a notice of default and election to sell the unit to satisfy the lien, which contains the same information as the notice of delinquent assessment, but must also describe the deficiency in payment and the name and address of the person authorized by the association to enforce the lien by sale; and

      (c) The unit’s owner or his successor in interest has failed to pay the amount of the lien, including costs, fees and expenses incident to its enforcement, for [60] 90 days following the recording of the notice of default and election to sell.

      2.  The notice of default and election to sell must be signed by the person designated in the declaration or by the association for that purpose [,] or , if no one is designated, by the president of the association.

      3.  The period of [60] 90 days begins on the first day following the later of:

      (a) The day on which the notice of default is recorded; or

      (b) The day on which a copy of the notice of default is mailed by certified or registered mail, return receipt requested, to the unit’s owner or his successor in interest at his address , if known, and at the address of the unit.

      4.  The association may not foreclose a lien by sale [for the assessment of] based on a fine or penalty for a violation of the [declaration, bylaws, rules or regulations] governing documents of the association [, unless the violation is of a type that threatens] unless:

      (a) The violation threatens the health, safety or welfare of the residents of the common-interest community [.] ; or

      (b) The penalty is imposed for failure to adhere to a schedule required pursuant to section 47 of this act.

      Sec. 78.  NRS 116.311635 is hereby amended to read as follows:

      116.311635  The association or other person conducting the sale shall also, after the expiration of the [60] 90 days and before selling the unit:

      1.  Give notice of the time and place of the sale in the manner and for a time not less than that required by law for the sale of real property upon execution, except that a copy of the notice of sale must be mailed, on or before the date of first publication or posting, by certified or registered mail, return receipt requested, to the unit’s owner or his successor in interest at his address , if known, and to the address of the unit.

      2.  Mail, on or before the date of first publication or posting, a copy of the notice by first-class mail to:

      (a) Each person entitled to receive a copy of the notice of default and election to sell notice under NRS 116.31163; [and]

      (b) The holder of a recorded security interest or the purchaser of the unit, if either of them has notified the association, before the mailing of the notice of sale, of the existence of the security interest, lease or contract of sale, as applicable [.] ; and

      (c) The Ombudsman.

      Sec. 79.  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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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 [; and] , 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.

      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 [for Owners in Common-Interest Communities] 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. 80.  NRS 116.31177 is hereby amended to read as follows:

      116.31177  1.  The executive board of an association shall maintain and make available for review at the business office of the association or some other suitable location [:] within the county where the common‑interest community is situated or, if it is situated in more than one county, within one of those counties:

      (a) The financial statement of the association;


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      (b) The budgets of the association required to be prepared pursuant to NRS 116.31151; and

      (c) The study of the reserves of the association required to be conducted pursuant to NRS 116.31152.

      2.  The executive board shall provide a copy of any of the records required to be maintained pursuant to subsection 1 to a unit’s owner or the Ombudsman [for Owners in Common-Interest Communities] within 14 days after receiving a written request therefor. The executive board may charge a fee to cover the actual costs of preparing a copy, but not to exceed 25 cents per page.

      Sec. 81.  NRS 116.3118 is hereby amended to read as follows:

      116.3118  1.  The association shall keep financial records sufficiently detailed to enable the association to comply with NRS 116.4109.

      2.  All financial and other records of the association must be :

      (a) Maintained and made available for review at the business office of the association or some other suitable location within the county where the common‑interest community is situated or, if it is situated in more than one county, within one of those counties; and

      (b) Made reasonably available for any unit’s owner and his authorized agents to inspect, examine, photocopy and audit.

      Sec. 82.  NRS 116.4108 is hereby amended to read as follows:

      116.4108  1.  A person required to deliver a public offering statement pursuant to subsection 3 of NRS 116.4102 shall provide a purchaser with a copy of the current public offering statement not later than the date [of any contract of sale.] on which an offer to purchase becomes binding on the purchaser. Unless the purchaser has personally inspected the unit, the purchaser may cancel, by written notice, the contract of purchase until midnight of the fifth calendar day following the date of execution of the contract, and the contract for purchase must contain a provision to that effect.

      2.  If a purchaser elects to cancel a contract pursuant to subsection 1, he may do so by hand delivering notice thereof to the offeror or by mailing notice thereof by prepaid United States mail to the offeror or to his agent for service of process. Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded promptly.

      3.  If a person required to deliver a public offering statement pursuant to subsection 3 of NRS 116.4102 fails to provide a purchaser to whom a unit is conveyed with a current public offering statement, the purchaser is entitled to actual damages, rescission or other relief, but if the purchaser has accepted a conveyance of the unit, he is not entitled to rescission.

      Sec. 83.  NRS 116.4109 is hereby amended to read as follows:

      116.4109  1.  Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under subsection 2 of NRS 116.4101, a unit’s owner shall furnish to a purchaser before [execution of any contract for sale of a unit, or otherwise before conveyance:] an offer to purchase a unit becomes binding on the purchaser:

      (a) A copy of the declaration, other than any plats and plans, the bylaws, the rules or regulations of the association and the information statement required by NRS 116.41095;

      (b) A statement setting forth the amount of the monthly assessment for common expenses and any unpaid assessment of any kind currently due from the selling unit’s owner;


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      (c) The current operating budget of the association and a financial statement for the association [;] , which must include a summary of the financial components of the study of the reserves of the association required by NRS 116.31152; and

      (d) A statement of any unsatisfied judgments or pending legal actions against the association and the status of any pending legal actions relating to the common-interest community of which the unit’s owner has actual knowledge.

      2.  The association, within 10 days after a request by a unit’s owner, shall furnish a certificate containing the information necessary to enable the unit’s owner to comply with [this section.] subsection 1. A unit’s owner providing a certificate pursuant to subsection 1 is not liable to the purchaser for any erroneous information provided by the association and included in the certificate.

      3.  Neither a purchaser nor the purchaser’s interest in a unit is liable for any unpaid assessment or fee greater than the amount set forth in the certificate prepared by the association. If the association fails to furnish the certificate within the 10 days allowed by subsection 2, the seller is not liable for the delinquent assessment.

      4.  Upon the request of a unit’s owner, a purchaser to whom the unit’s owner has provided a certificate pursuant to subsection 1 or an authorized agent of the unit’s owner or the purchaser, the association shall make the entire study of the reserves of the association which is required by NRS 116.31152 reasonably available for the unit’s owner, purchaser or authorized agent to inspect, examine, photocopy and audit. The study must be made available at the business office of the association or some other suitable location within the county where the common‑interest community is situated or, if it is situated in more than one county, within one of those counties.

      Sec. 84.  NRS 116.41095 is hereby amended to read as follows:

      116.41095  The information statement required by NRS 116.4103 and 116.4109 must be in substantially the following form:

 

BEFORE YOU PURCHASE PROPERTY IN A

COMMON-INTEREST COMMUNITY

DID YOU KNOW . . .

      1.  YOU ARE AGREEING TO RESTRICTIONS ON HOW YOU CAN USE YOUR PROPERTY?

These restrictions are contained in a document known as the Declaration of Covenants, Conditions and Restrictions (C, C & R’s) that should be provided for your review before making your purchase. The C, C & R’s become a part of the title to your property. They bind you and every future owner of the property whether or not you have read them or had them explained to you. The C, C & R’s, together with other “governing documents” (such as association bylaws and rules and regulations), are intended to preserve the character and value of properties in the community, but may also restrict what you can do to improve or change your property and limit how you use and enjoy your property. By purchasing a property encumbered by C, C & R’s, you are agreeing to limitations that could affect your lifestyle and freedom of choice. You should review the C, C & R’s and other governing documents before purchasing to make sure that these limitations and controls are acceptable to you.


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ê2003 Statutes of Nevada, Page 2249 (Chapter 385, SB 100)ê

 

      2.  YOU WILL HAVE TO PAY OWNERS’ ASSESSMENTS FOR AS LONG AS YOU OWN YOUR PROPERTY?

As an owner in a common-interest community, you are responsible for paying your share of expenses relating to the common elements, such as landscaping, shared amenities and the operation of any homeowner’s association. The obligation to pay these assessments binds you and every future owner of the property. Owners’ fees are usually assessed by the homeowner’s association and due monthly. You have to pay dues whether or not you agree with the way the association is managing the property or spending the assessments. The executive board of the association may have the power to change and increase the amount of the assessment and to levy special assessments against your property to meet extraordinary expenses. In some communities, major components of the community such as roofs and private roads must be maintained and replaced by the association. If the association is not well managed or fails to maintain adequate reserves to repair, replace and restore common elements, you may be required to pay large, special assessments to accomplish these tasks.

      3.  IF YOU FAIL TO PAY OWNERS’ ASSESSMENTS, YOU COULD LOSE YOUR HOME?

If you do not pay these assessments when due, the association usually has the power to collect them by selling your property in a nonjudicial foreclosure sale. If fees become delinquent, you may also be required to pay penalties and the association’s costs and attorney’s fees to become current. If you dispute the obligation or its amount, your only remedy to avoid the loss of your home may be to file a lawsuit and ask a court to intervene in the dispute.

      4.  YOU MAY BECOME A MEMBER OF A HOMEOWNER’S ASSOCIATION THAT HAS THE POWER TO AFFECT HOW YOU USE AND ENJOY YOUR PROPERTY?

Many common-interest communities have a homeowner’s association. In a new development, the association will usually be controlled by the developer until a certain number of units have been sold. After the period of developer control, the association may be controlled by property owners like yourself who are elected by homeowners to sit on an executive board and other boards and committees formed by the association. The association, and its executive board, are responsible for assessing homeowners for the cost of operating the association and the common or shared elements of the community and for the day to day operation and management of the community. Because homeowners sitting on the executive board and other boards and committees of the association may not have the experience or professional background required to understand and carry out the responsibilities of the association properly, the association may hire professional managers to carry out these responsibilities.

Homeowner’s associations operate on democratic principles. Some decisions require all homeowners to vote, some decisions are made by the executive board or other boards or committees established by the association or governing documents. Although the actions of the association and its executive board are governed by state laws, the C, C & R’s and other documents that govern the common-interest community, decisions made by these persons will affect your use and enjoyment of your property, your lifestyle and freedom of choice, and your cost of living in the community. You may not agree with decisions made by the association or its governing bodies even though the decisions are ones which the association is authorized to make.


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ê2003 Statutes of Nevada, Page 2250 (Chapter 385, SB 100)ê

 

bodies even though the decisions are ones which the association is authorized to make. Decisions may be made by a few persons on the executive board or governing bodies that do not necessarily reflect the view of the majority of homeowners in the community. If you do not agree with decisions made by the association, its executive board or other governing bodies, your remedy is typically to attempt to use the democratic processes of the association to seek the election of members of the executive board or other governing bodies that are more responsive to your needs. If persons controlling the association or its management are not complying with state laws or the governing documents, your remedy is typically to seek to mediate or arbitrate the dispute and, if mediation or arbitration is unsuccessful, file a lawsuit and ask a court to resolve the dispute. In addition to your personal cost in mediation or arbitration, or to prosecute a lawsuit, you may be responsible for paying your share of the association’s cost in defending against your claim. There is no government agency in this state that investigates or intervenes to resolve disputes in homeowner’s associations.

      5.  YOU ARE REQUIRED TO PROVIDE PROSPECTIVE BUYERS OF YOUR PROPERTY WITH INFORMATION ABOUT LIVING IN YOUR COMMON-INTEREST COMMUNITY?

The law requires you to provide to a prospective purchaser of your property, before you enter into a purchase agreement, a copy of the community’s governing documents, including the C, C & R’s, association bylaws, and rules and regulations, as well as a copy of this document. You are also required to provide a copy of the association’s current financial statement, operating budget and information regarding the amount of the monthly assessment for common expenses, including the amount set aside as reserves for the repair, replacement and restoration of common elements. You are also required to inform prospective purchasers of any outstanding judgments or lawsuits pending against the association of which you are aware. You are also required to provide a copy of the minutes from the most recent meeting of the homeowner’s association or its executive board. For more information regarding these requirements, see Nevada Revised Statutes 116.4103 [.] and 116.4109.

      6.  YOU HAVE CERTAIN RIGHTS REGARDING OWNERSHIP IN A COMMON-INTEREST COMMUNITY THAT ARE GUARANTEED YOU BY THE STATE?

Pursuant to provisions of chapter 116 of Nevada Revised Statutes, you have the right:

      (a) To be notified of all meetings of the association and its executive board, except in cases of emergency.

      (b) To attend and speak at all meetings of the association and its executive board, except in some cases where the executive board is authorized to meet in closed, executive session.

      (c) To request a special meeting of the association upon petition of at least 10 percent of the homeowners.

      (d) To inspect, examine, photocopy and audit financial and other records of the association.

      (e) To be notified of all changes in the community’s rules and regulations and other actions by the association or board that affect you.

      7.  QUESTIONS?

Although they may be voluminous, you should take the time to read and understand the documents that will control your ownership of a property in a common-interest community.


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ê2003 Statutes of Nevada, Page 2251 (Chapter 385, SB 100)ê

 

common-interest community. You may wish to ask your real estate professional, lawyer or other person with experience to explain anything you do not understand. You may also request assistance from the Ombudsman for Owners in Common-Interest Communities, Nevada Real Estate Division, at (telephone number).

 

Buyer or prospective buyer’s initials:_____

Date:_____

      Sec. 85.  NRS 38.300 is hereby amended to read as follows:

      38.300  As used in NRS 38.300 to 38.360, inclusive, unless the context otherwise requires:

      1.  “Assessments” means:

      (a) Any charge which an association may impose against an owner of residential property pursuant to a declaration of covenants, conditions and restrictions, including any late charges, interest and costs of collecting the charges; and

      (b) Any penalties, fines, fees and other charges which may be imposed by an association pursuant to paragraphs (j), (k) and (l) of subsection 1 of NRS 116.3102.

      2.  “Association” has the meaning ascribed to it in NRS 116.110315.

      3.  “Civil action” includes an action for money damages or equitable relief. The term does not include an action in equity for injunctive relief in which there is an immediate threat of irreparable harm, or an action relating to the title to residential property.

      4.  “Division” means the Real Estate Division of the Department of Business and Industry.

      5.  “Residential property” includes, but is not limited to, real estate within a planned community subject to the provisions of chapter 116 of NRS. The term does not include commercial property if no portion thereof contains property which is used for residential purposes.

      Sec. 86.  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.


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ê2003 Statutes of Nevada, Page 2252 (Chapter 385, SB 100)ê

 

appointing an arbitrator, the Division shall provide the name of the arbitrator to each party.

      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 [the Ombudsman for Owners in] Common-Interest Communities created [pursuant to] by NRS 116.1117, to the extent that :

      (a) The Commission for Common-Interest Communities approves the payment; and

      (b) There is money [is] 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 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 . [38 of NRS.] An award procured pursuant to such 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 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,

the party shall, if he fails to obtain a more favorable award or judgment than that which was obtained in the initial 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.


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ê2003 Statutes of Nevada, Page 2253 (Chapter 385, SB 100)ê

 

      Sec. 87.  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 first day of the second 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, treasurer and of all the directors of the corporation;

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

      (e) The name and street address of the resident agent of the corporation; 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 declaration under penalty of perjury that the corporation has complied with the provisions of chapter 364A of NRS.

      4.  Upon filing the list required by:

      (a) Subsection 1, the corporation shall pay to the Secretary of State a fee of $165.

      (b) Subsection 2, the corporation shall pay to the Secretary of State a fee of $85.

      5.  The Secretary of State shall, 60 days before the last day for filing each annual list required by subsection 2, cause to be mailed 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.

      6.  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 or 8 is not paid, the Secretary of State may return the list for correction or payment.

      7.  An annual list for a corporation not in default which is received by the Secretary of State more than 60 days before its due date shall be deemed an amended list for the previous year and must be accompanied by a fee of $85 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.

      8.  If the corporation is an association as defined in NRS 116.110315, the Secretary of State shall not accept the filing required by this section unless it is accompanied by evidence of the payment of the fee required to be paid pursuant to NRS 116.31155 that is provided to the association pursuant to [subsection 4 of] that section.

      Sec. 88.  As soon as practicable after July 1, 2003, the Governor shall appoint to the Commission for Common-Interest Communities:

      1.  One member whose term begins on October 1, 2003, and expires on October 1, 2004.


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ê2003 Statutes of Nevada, Page 2254 (Chapter 385, SB 100)ê

 

      2.  Two members whose terms begin on October 1, 2003, and expire on October 1, 2005.

      3.  Two members whose terms begin on October 1, 2003, and expire on October 1, 2006.

      Sec. 89.  1.  Notwithstanding the provisions of this act and except as otherwise provided in subsection 2, during the period from October 1, 2003, until January 1, 2004, the Real Estate Commission, the Real Estate Administrator, the Ombudsman for Owners in Common-Interest Communities and the Real Estate Division of the Department of Business and Industry shall continue to exercise all the powers and perform all the duties that, before October 1, 2003, were assigned to them pursuant to the provisions of chapter 116 of NRS.

      2.  During the period described in subsection 1, the Commission for Common-Interest Communities, the Real Estate Administrator, the Ombudsman for Owners in Common-Interest Communities and the Real Estate Division of the Department of Business and Industry may exercise any power and perform any duty assigned to them pursuant to the provisions of chapter 116 of NRS, as amended by this act, if the exercise of the power or the performance of the duty is necessary as an organizational, preparatory or preliminary measure to prepare them to carry out those provisions.

      Sec. 90.  1.  The State Treasurer shall transfer any balance remaining unexpended on October 1, 2003, in the Account for the Ombudsman for Owners in Common-Interest Communities in the State General Fund to the Account for Common-Interest Communities which is created by NRS 116.1117, as amended by this act.

      2.  On and after October 1, 2003, the State Treasurer shall treat any outstanding claims against the Account for the Ombudsman for Owners in Common-Interest Communities as claims against the Account for Common-Interest Communities.

      Sec. 91.  1.  Any administrative regulations adopted by an officer or an agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remain in force until amended by the officer or agency to which the responsibility for the adoption of the regulations has been transferred.

      2.  Any contracts or other agreements entered into by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency are binding upon the officer or agency to which the responsibility for the administration of the provisions of the contract or other agreement has been transferred. Such contracts and other agreements may be enforced by the officer or agency to which the responsibility for the enforcement of the provisions of the contract or other agreement has been transferred.

      3.  Any action taken by an officer or agency whose name has been changed or whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remains in effect as if taken by the officer or agency to which the responsibility for the enforcement of such actions has been transferred.

      Sec. 92.  1.  Not later than July 1, 2005, an association or master association of a common-interest community shall have conducted elections of members of the executive board so that the terms of the members of the executive board are staggered as required by the provisions of NRS 116.31034, as amended by section 62 of this act.


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ê2003 Statutes of Nevada, Page 2255 (Chapter 385, SB 100)ê

 

      2.  As used in this section:

      (a) “Association” has the meaning ascribed to it in NRS 116.110315.

      (b) “Common-interest community” has the meaning ascribed to it in NRS 116.110323.

      (c) “Executive board” has the meaning ascribed to it in NRS 116.110345.

      (d) “Master association” has the meaning ascribed to it in NRS 116.110358.

      Sec. 93.  1.  This section and section 88 of this act become effective on July 1, 2003.

      2.  Sections 1 to 23, inclusive, 38 to 69, inclusive, 72 to 87, inclusive, and 89 to 92, inclusive, of this act become effective on October 1, 2003.

      3.  Sections 24 to 37, inclusive, 70 and 71 of this act become effective on October 1, 2003, for the purpose of adopting regulations and on January 1, 2004, for all other purposes.

      4.  Sections 25 and 26 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,

are repealed by the Congress of the United States, whichever is earlier.

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ê2003 Statutes of Nevada, Page 2256ê

 

CHAPTER 386, SB 262

Senate Bill No. 262–Senators Neal, Titus, Care, Carlton, Coffin, Mathews, Schneider and Wiener

 

CHAPTER 386

 

AN ACT relating to elections; requiring the Secretary of State, a board of county commissioners, a county clerk and any other person who prepares certain abstracts of votes to post such an abstract on a website on the Internet or transmit such an abstract to each public library within the jurisdiction of that person or entity; requiring a city clerk who certifies an abstract of votes to post such an abstract on a website on the Internet or transmit such an abstract to each public library in the city; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 293 of NRS is hereby amended by adding thereto a new section to read as follows:

      The Secretary of State, a board of county commissioners, a county clerk and any other person who prepares an abstract of votes pursuant to this chapter shall:

      1.  Transmit on paper or by electronic means to each public library in the jurisdiction of that person or entity; or

      2.  Post on a website maintained by that person or entity on the Internet or its successor, if any,

a copy of each abstract that the person or entity prepares within 30 days after the abstract is prepared.

      Sec. 2.  NRS 293C.387 is hereby amended to read as follows:

      293C.387  1.  The election returns from a special election, primary city election or general city election must be filed with the city clerk, who shall immediately place the returns in a safe or vault. No person may handle, inspect or in any manner interfere with the returns until they are canvassed by the mayor and the governing body of the city.

      2.  After the governing body of a city receives the returns from all the precincts and districts in the city, it shall meet with the mayor to canvass the returns. The canvass must be completed on or before the fifth working day following the election.

      3.  In completing the canvass of the returns, the governing body of the city and the mayor shall:

      (a) Note separately any clerical errors discovered; and

      (b) Take account of the changes resulting from the discovery, so that the result declared represents the true vote cast.

      4.  After the canvass is completed, the governing body of the city and mayor shall declare the result of the canvass.

      5.  The city clerk shall enter upon the records of the governing body of the city an abstract of the result. The abstract must be prepared in the manner prescribed by regulations adopted by the Secretary of State and must contain the number of votes cast for each candidate.


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ê2003 Statutes of Nevada, Page 2257 (Chapter 386, SB 262)ê

 

      6.  After the abstract is entered, the:

      (a) City clerk shall seal the election returns, maintain them in a vault for at least 22 months and give no person access to them during that period, unless access is ordered by a court of competent jurisdiction or by the governing body of the city.

      (b) Governing body of the city shall, by an order made and entered in the minutes of its proceedings, cause the city clerk to:

             (1) Certify the abstract;

             (2) Make a copy of the certified abstract;

             (3) Make a mechanized report of the abstract in compliance with regulations adopted by the Secretary of State; [and]

             (4) Transmit [the] a copy of the certified abstract and the mechanized report of the abstract to the Secretary of State within 6 working days after the election [.] ; and

             (5) Transmit on paper or by electronic means to each public library in the city, or post on a website maintained by the city or the city clerk on the Internet or its successor, if any, a copy of the certified abstract within 30 days after the election.

      7.  After the abstract of the results from a:

      (a) Primary city election has been certified, the city clerk shall certify the name of each person nominated and the name of the office for which he is nominated.

      (b) General city election has been certified, the city clerk shall:

             (1) Issue under his hand and official seal to each person elected a certificate of election; and

             (2) Deliver the certificate to the persons elected upon their application at the office of the city clerk.

      8.  The officers elected to the governing body of the city qualify and enter upon the discharge of their respective duties on the first regular meeting of that body next succeeding that in which the canvass of returns was made pursuant to subsection 2.

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CHAPTER 387, SB 309

Senate Bill No. 309–Senators McGinness and Titus

 

CHAPTER 387

 

AN ACT relating to democracy; establishing the Advisory Committee on Participatory Democracy within the Office of the Secretary of State; prescribing its powers and duties; requiring certain reports to the Legislature; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  The Legislature hereby declares that it is committed to working with election officers and agencies throughout the State and the Advisory Committee on Participatory Democracy to achieve, by the 2008 general election, the goals of having 75 percent of all eligible voters in the State registered and having 70 percent of those registered voters participate in the general election.


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ê2003 Statutes of Nevada, Page 2258 (Chapter 387, SB 309)ê

 

State registered and having 70 percent of those registered voters participate in the general election.

      Sec. 2.  Chapter 225 of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 10, inclusive, of this act.

      Sec. 3.  As used in sections 3 to 10, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 4, 5 and 6 of this act have the meanings ascribed to them in those sections.

      Sec. 4.  “Advisory Committee” means the Advisory Committee on Participatory Democracy created by section 7 of this act.

      Sec. 5.  “Participatory democracy” means the participation of residents of this state in the development of public policy and in the improvement of the operation of government at all levels.

      Sec. 6.  “Repository” means the Repository for Records Concerning Programs, Activities and Events Related to the Participation of Citizens in the Development of Public Policy and the Improvement of the Operation of Government created by NRS 378.400.

      Sec. 7.  1.  The Advisory Committee on Participatory Democracy is hereby created within the Office of the Secretary of State.

      2.  The Advisory Committee consists of 10 members including:

      (a) The Secretary of State or his designee; and

      (b) Nine other members appointed by the Secretary of State.

      3.  The Secretary of State shall:

      (a) Consider political, geographical and demographical factors when appointing members of the Advisory Committee;

      (b) Select the Chairman of the Advisory Committee from among its members; and

      (c) Designate an employee of the Office of the Secretary of State to serve as Secretary for the Advisory Committee.

      4.  The Secretary of State may assign such other employees of his Office as he deems necessary to assist the Advisory Committee in its duties.

      5.  The Chairman of the Advisory Committee shall appoint a Vice Chairman from among the members of the Advisory Committee.

      6.  After the initial term, each member of the Advisory Committee shall serve for a term of 3 years. Each member of the Advisory Committee serves at the pleasure of the Secretary of State. If a vacancy occurs, the Secretary of State shall appoint a new member to fill the vacancy for the remainder of the unexpired term.

      7.  Members of the Advisory Committee serve without compensation. If sufficient money is available in the Special Account for the Support of the Advisory Committee created by section 10 of this act, members are entitled to the per diem and travel allowances provided for state officers and employees generally while attending meetings of the Advisory Committee.

      Sec. 8.  1.  The Advisory Committee shall:

      (a) Advise the Director of the Department of Cultural Affairs concerning the Repository and make recommendations to support greater use of the Repository and collection of materials for the Repository;

      (b) Assist the Secretary of State in identifying and proposing programs that support participatory democracy and solutions to any problem concerning the level of participatory democracy, including, without limitation, proposing methods to involve the news media in the process of addressing and proposing solutions to such a problem;


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ê2003 Statutes of Nevada, Page 2259 (Chapter 387, SB 309)ê

 

      (c) Make recommendations to and discuss recommendations with the Secretary of State concerning matters brought to the attention of the Advisory Committee that relate to a program, activity, event or any combination thereof designed to increase or facilitate participatory democracy, including, without, limitation, the interaction of citizens with governing bodies in the formulation and implementation of public policy;

      (d) Establish a “Jean Ford Democracy Award” to honor citizens who perform exemplary service in promoting participatory democracy in this state;

      (e) Support projects by national, state and local entities that encourage and advance participatory democracy, including programs established by the National Conference of State Legislatures, the State Bar of Nevada, and other public and private organizations; and

      (f) Advise the Secretary of State and the Governor concerning the substance of any proclamation issued by the Governor pursuant to NRS 236.035.

      2.  The Advisory Committee may establish a panel to assist the Advisory Committee in carrying out its duties and responsibilities. The panel may consist of:

      (a) Representatives of organizations, associations, groups or other entities committed to improving participatory democracy in this state, including, without limitation, representatives of committees that are led by youths and established to improve the teaching of the principles of participatory democracy in the schools, colleges and universities of this state; and

      (b) Any other interested persons with relevant knowledge.

      Sec. 9.  1.  The Advisory Committee shall hold meetings at least once every 3 months. A special meeting of the Advisory Committee may be called by the Secretary of State and the Chairman of the Advisory Committee at such additional times as they deem necessary.

      2.  The Chairman of the Advisory Committee or, in his absence, the Vice Chairman of the Advisory Committee, shall preside at each meeting of the Advisory Committee. Six members of the Advisory Committee constitute a quorum.

      Sec. 10.  1.  The Secretary of State may apply for any available grants and accept any gifts, grants or donations for the support of the Advisory Committee and its activities pursuant to sections 3 to 10, inclusive, of this act.

      2.  Any money received pursuant to this section must be deposited in the Special Account for the Support of the Advisory Committee, which is hereby created in the State General Fund. Interest and income earned on money in the Account must be credited to the Account. Money in the Account may only be used for the support of the Advisory Committee and its activities pursuant to sections 3 to 10, inclusive, of this act.

      Sec. 11.  NRS 378.400 is hereby amended to read as follows:

      378.400  1.  The Repository for Records Concerning Programs, Activities and Events Related to the Participation of Citizens in the Development of Public Policy and the Improvement of the Operation of Government is hereby created within the Department.

      2.  The Director shall receive, store and maintain in the Repository and make available to members of the public materials, information and records submitted to the Department:


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ê2003 Statutes of Nevada, Page 2260 (Chapter 387, SB 309)ê

 

      (a) In response to a proclamation issued pursuant to NRS 236.035; or

      (b) By the Federal Government, any state or local government or any political subdivision thereof reporting the results of an action taken to increase the extent and quality of the participation of citizens in the development of public policy and the improvement of the operation of government.

      3.  To maintain and develop the Repository, the Director may:

      (a) Apply for any available grants and accept any gifts, grants or donations; and

      (b) Delegate his powers and duties to any person within the Department . [; and

      (c) Create and appoint an Advisory Committee.

      4.  An Advisory Committee created pursuant to this section must be created by a regulation adopted in accordance with the provisions of chapter 233B of NRS. The regulation must specify the:

      (a) Membership of the Committee;

      (b) Purpose for which the Committee is created;

      (c) Duties of the Committee;

      (d) Period of existence of the Committee; and

      (e) Rules for the governance of the Committee.

      5.  An]

      4.  The Advisory Committee created [pursuant to this section] by section 7 of this act may advise the Director on matters concerning the Repository, including, without limitation:

      (a) The coordination of public agencies concerning programs, activities or events designed to increase the extent and quality of the participation of the residents of this state in the development of public policy and the improvement of the operation of government at all levels;

      (b) The assistance of public agencies in developing such programs, activities and events;

      (c) The development of effective ways to provide information contained in the Repository to members of the public; and

      (d) Recommended programs that demonstrate the effective methods by which residents of this state may participate in the development of public policy and the improvement of the operations of government at all levels.

      [6.  The members of an Advisory Committee created pursuant to this section serve without compensation unless an appropriation or other money for that purpose is provided by the Legislature.]

      Sec. 12.  1.  Each local school district, with the assistance of the State Board of Education, the Board of Regents of the University of Nevada, the Commission on Professional Standards in Education and the Nevada P-16 Council, shall prepare a report for the 73rd Session of the Legislature which contains:

      (a) An evaluation of the efforts currently in progress to implement standards for the social studies curriculum being offered in Nevada schools, including, without limitation, cocurricular activities that promote learning and understanding, particularly in the area of civics and the skills and values of citizenship;

      (b) A clear statement of the assessment standards that have been established to judge the educational progress of pupils in understanding civics and the skills and values of citizenship; and


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ê2003 Statutes of Nevada, Page 2261 (Chapter 387, SB 309)ê

 

      (c) A comparison of how the achievement of Nevada pupils in developing such understanding and skills compares with standards developed nationally to measure the effectiveness of civics education.

      2.  The State Board of Education and the Board of Regents of the University of Nevada shall consider and make recommendations to the 73rd Session of the Legislature concerning how principles of participatory democracy can be better taught and practiced in the schools, colleges and universities of the State of Nevada, including, without limitation, by the use of service-learning projects.

      Sec. 13.  1.  The Secretary of State shall appoint the members of the Advisory Committee on Participatory Democracy as soon as practicable after October 1, 2003. Members of the Advisory Committee on Participatory Democracy that was created by NRS 378.400, except the Director of the Department of Cultural Affairs, continue to serve on that Committee until new members are appointed by the Secretary of State.

      2.  The members of the Advisory Committee on Participatory Democracy must be appointed to serve initial terms as follows:

      (a) Three of the members must be appointed to serve a term of 3 years;

      (b) Three of the members must be appointed to serve a term of 2 years; and

      (c) Three of the members must be appointed to serve a term of 1 year.

________

 

CHAPTER 388, SB 146

Senate Bill No. 146–Committee on Government Affairs

 

CHAPTER 388

 

AN ACT relating to governmental purchasing; exempting from the requirements of competitive bidding an agreement between a local government and a vendor of supplies, materials or equipment that has entered into an agreement with the General Services Administration or another governmental agency located within or outside this state and commercial advertising within a recreational facility operated by a county fair and recreation board; authorizing a local government to join or use contracts of another state or its subdivisions; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 332.015 is hereby amended to read as follows:

      332.015  For the purpose of this chapter, unless the context otherwise requires, “local government” means:

      1.  Every political subdivision or other entity which has the right to levy or receive money from ad valorem taxes or other taxes or from any mandatory assessments, including counties, cities, towns, school districts and other districts organized pursuant to chapters 244, 309, 318, 379, 450, 473, 474, 539, 541, 543 and 555 of NRS.

      2.  The Las Vegas Valley Water District created pursuant to the provisions of chapter 167, Statutes of Nevada 1947, as amended.


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ê2003 Statutes of Nevada, Page 2262 (Chapter 388, SB 146)ê

 

      3.  County fair and recreation boards and convention authorities created pursuant to the provisions of NRS 244A.597 to [244A.667,] 244A.655, inclusive.

      4.  District boards of health created pursuant to the provisions of NRS 439.370 to 439.410, inclusive.

      5.  The Nevada Rural Housing Authority.

      Sec. 2.  NRS 332.115 is hereby amended to read as follows:

      332.115  1.  Contracts which by their nature are not adapted to award by competitive bidding, including contracts for:

      (a) Items which may only be contracted from a sole source;

      (b) Professional services;

      (c) Additions to and repairs and maintenance of equipment which may be more efficiently added to, repaired or maintained by a certain person;

      (d) Equipment which, by reason of the training of the personnel or of an inventory of replacement parts maintained by the local government is compatible with existing equipment;

      (e) Perishable goods;

      (f) Insurance;

      (g) Hardware and associated peripheral equipment and devices for computers;

      (h) Software for computers;

      (i) Books, library materials and subscriptions;

      (j) Motor vehicle fuel purchased by a local law enforcement agency for use in an undercover investigation;

      (k) Motor vehicle fuel for use in a vehicle operated by a local law enforcement agency or local fire department if such fuel is not available within the vehicle’s assigned service area from a fueling station owned by the State of Nevada or a local government;

      (l) Purchases made with money in a store fund for prisoners in a jail or local detention facility for the provision and maintenance of a canteen for the prisoners;

      (m) Supplies, materials or equipment that are available [from contracts] pursuant to an agreement with a vendor that has entered into an agreement with the General Services Administration or another governmental agency [in the regular course of its business;] located within or outside this state;

      (n) Items for resale through a retail outlet operated in this state by a local government or the State of Nevada; [and]

      (o) Commercial advertising within a recreational facility operated by a county fair and recreation board; and

      (p)  Goods or services purchased from organizations or agencies whose primary purpose is the training and employment of handicapped persons,

are not subject to the requirements of this chapter for competitive bidding as determined by the governing body or its authorized representative.

      2.  The purchase of equipment for use by a local law enforcement agency in the course of an undercover investigation is not subject to the requirements of this chapter for competitive bidding if:

      (a) The equipment is an electronic or mechanical device which by design is intended to monitor and document in a clandestine manner suspected criminal activity; or


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ê2003 Statutes of Nevada, Page 2263 (Chapter 388, SB 146)ê

 

      (b) Purchasing the equipment pursuant to such requirements would limit or compromise the use of such equipment by an agency authorized to conduct such investigations.

      3.  The governing body of a hospital required to comply with the provisions of this chapter, or its authorized representative, may purchase goods commonly used by the hospital, under a contract awarded pursuant to NRS 332.065, without additional competitive bidding even if at the time the contract was awarded:

      (a) The vendor supplying such goods to the person awarded the contract was not identified as a supplier to be used by the person awarded the contract; or

      (b) The vendor was identified as a supplier but was not identified as the supplier of such goods.

The governing body of the hospital shall make available for public inspection each such contract and records related to those purchases.

      4.  This section does not prohibit a governing body or its authorized representative from advertising for or requesting bids.

      Sec. 3.  NRS 332.195 is hereby amended to read as follows:

      332.195  1.  A governing body or its authorized representative [and the State of Nevada] may join or use the contracts of other local governments located within or outside this state with the authorization of the contracting vendor. The originally contracting local government is not liable for the obligations of the local government which joins or uses the contract.

      2.  A governing body or its authorized representative may join or use the contracts of the State of Nevada or another state with the authorization of the contracting vendor. The State of Nevada or other state is not liable for the obligations of the local government which joins or uses the contract.

      Sec. 4.  NRS 244A.599 is hereby amended to read as follows:

      244A.599  1.  Whenever the board of county commissioners of any county or the Board of Supervisors of Carson City desires the powers granted in NRS 244A.597 to [244A.667,] 244A.655, inclusive, to be exercised, it shall, by resolution, determine that the interest of the county and the public interest, necessity or desirability require the exercise of those powers and the creation of a county fair and recreation board therefor, pursuant to the provisions of NRS 244A.597 to [244A.667,] 244A.655, inclusive. After approval of the resolution, the county or city clerk shall:

      (a) Cause a copy of the resolution to be published promptly once in a newspaper published in and of general circulation in the county or city; and

      (b) In the case of a county, cause a certified copy of the resolution to be mailed by registered or certified mail to the mayor or other chief executive officer of each incorporated city within the county.

      2.  In counties whose population is 100,000 or more, the county fair and recreation board must be selected as provided in NRS 244A.601 or 244A.603.

      3.  In counties whose population is less than 100,000, and in which there are more than two incorporated cities, each incorporated city, except an incorporated city which is the county seat, must be represented by one member and any incorporated city which is the county seat must be represented by four members. Within 30 days after the day of publication of the resolution or the day on which the last of the copies of the resolution was mailed, whichever day is later, the mayor or other chief executive officer shall, with the approval of the legislative body of the city, appoint a member or members of the city council or board of trustees to serve on the board for the remainder of his or their terms of office.


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ê2003 Statutes of Nevada, Page 2264 (Chapter 388, SB 146)ê

 

or members of the city council or board of trustees to serve on the board for the remainder of his or their terms of office. The clerk or secretary of the city shall promptly certify the appointment by registered or certified mail to the county clerk.

      4.  In counties whose population is less than 100,000, and in which there are only two incorporated cities, each incorporated city must be represented by one member who must be appointed and certified as provided in subsection 3, and the board of county commissioners shall appoint four representatives as follows:

      (a) Two members to represent the hotel or motel operators in the county.

      (b) One member to represent the other commercial interests in the county.

      (c) One member to represent the county at large.

      5.  In counties whose population is less than 100,000, and in which there are fewer than two incorporated cities, any incorporated city which is the county seat must be represented by one member, who must be appointed and certified as provided in subsection 3, and the board of county commissioners shall appoint three representatives as follows:

      (a) One member to represent the motel operators in the county.

      (b) One member to represent the hotel operators in the county.

      (c) One member to represent the other commercial interests in the county.

      6.  In all counties whose population is less than 100,000, one member of the board of county commissioners must be appointed by the county commissioners to serve on the board for the remainder of his term of office.

      7.  In all counties whose population is less than 100,000, and in which there is no incorporated city, the board of county commissioners shall appoint one member to represent the county at large.

      8.  In Carson City, the Board of Supervisors shall appoint five representatives to the fair and recreation board established as provided in subsection 1 as follows:

      (a) Two members to represent the hotel and motel operators in the city.

      (b) One member to represent the other commercial interests in the city.

      (c) One member who is a member of the Board of Supervisors.

      (d) One member to represent the city at large.

      9.  Members who are not elected officials shall serve for 2‑year terms.

      10.  The terms of all elected officials are coterminous with their terms of office. Any such member may succeed himself.

      Sec. 5.  NRS 244A.629 is hereby amended to read as follows:

      244A.629  1.  In addition to the powers conferred upon a county fair and recreation board by other provisions of NRS 244A.597 to [244A.667,] 244A.655, inclusive, a board, for the county, is empowered to borrow money or accept contributions, grants or other financial assistance from the Federal Government or any agency or instrumentality thereof, corporate or otherwise, for or in aid of any recreational facility within its area of operation, and to comply with such conditions, trust indentures, leases or agreements as may be necessary, convenient or desirable.

      2.  The purpose and intent of NRS 244A.597 to [244A.667,] 244A.655, inclusive, is to authorize every county to do any and all things necessary, convenient or desirable to secure the financial aid or cooperation of the Federal Government in the undertaking, acquisition, construction, maintenance or operation of any recreational facility of the county.


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ê2003 Statutes of Nevada, Page 2265 (Chapter 388, SB 146)ê

 

      Sec. 6.  NRS 244A.657, 244A.659, 244A.661, 244A.663, 244A.665 and 244A.667 are hereby repealed.

      Sec. 7.  This act becomes effective on July 1, 2003.

________

 

CHAPTER 389, SB 55

Senate Bill No. 55–Committee on Judiciary

 

CHAPTER 389

 

AN ACT relating to trusts; providing a nonjudicial alternative for a corporate trustee to buy or sell property, other than real property, from or to itself, an affiliate or certain other persons related to the corporate trustee or an affiliate under certain circumstances; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  NRS 163.050 is hereby amended to read as follows:

      163.050  [No]

      1.  Except as otherwise provided in subsection 2, no trustee may directly or indirectly buy or sell any property for the trust from or to itself or an affiliate, or from or to a director, officer or employee of the trustee or of an affiliate, or from or to a relative, employer, partner or other business associate of a trustee, except with the prior approval of the court having jurisdiction of the trust estate.

      2.  If authorized by the trust instrument or consented to by all beneficiaries of the trust, a corporate trustee may directly or indirectly buy or sell any property, other than real property, for the trust from or to itself or an affiliate, or from or to a director, officer or employee of the trustee or of an affiliate, or from or to a relative, employer, partner or other business associate of the trustee.

________

 


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ê2003 Statutes of Nevada, Page 2266ê

 

CHAPTER 390, SB 136

Senate Bill No. 136–Senators Hardy, O’Connell, Cegavske, Townsend, Amodei, Care, Coffin, McGinness, Nolan, Schneider, Shaffer, Tiffany and Titus

 

CHAPTER 390

 

AN ACT relating to property; making various changes relating to common-interest communities; authorizing a unit-owners’ association to impose construction penalties under certain circumstances and to place and foreclose a lien on a unit for failure to pay such penalties; revising provisions governing the imposition of certain fines by a unit-owners’ association; establishing certain procedural requirements for the imposition of certain fines; providing exceptions; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

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.  A unit’s owner shall adhere to a schedule required by the association for:

      (a) The completion of the design of a unit or the design of an improvement to a unit;

      (b) The commencement of the construction of a unit or the construction of an improvement to a unit;

      (c) The completion of the construction of a unit or the construction of an improvement to the unit; or

      (d) The issuance of a permit which is necessary for the occupancy of a unit or for the use of an improvement to a unit.

      2.  The association may impose and enforce a construction penalty against a unit’s owner who fails to adhere to a schedule as required pursuant to subsection 1 if:

      (a) The maximum amount of the construction penalty and the schedule are set forth in:

             (1) The declaration;

             (2) Another document related to the common-interest community that is recorded before the date on which the unit’s owner acquired title to the unit; or

             (3) A contract between the unit’s owner and the association; and

      (b) The unit’s owner receives notice of the alleged violation which informs him that he has a right to a hearing on the alleged violation.

      3.  For the purposes of this chapter, a construction penalty is not a fine.

      Sec. 2.  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 116.1105, 116.1106 and 116.1107 unless the declaration provides that this entire chapter is applicable.


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ê2003 Statutes of Nevada, Page 2267 (Chapter 390, SB 136)ê

 

      2.  Except for NRS 116.3104, 116.31043, 116.31046 and 116.31138, the provisions of NRS 116.3101 to 116.3119, inclusive, and section 1 of this act and the definitions set forth in NRS 116.110305 to 116.110393, inclusive, to the extent that such definitions are necessary in construing any of those [sections,] provisions, apply to a residential planned community containing more than six units.

      Sec. 3.  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:

      (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 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

             (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 units’ owners;

      (k) Impose charges for late payment of assessments [and, except as otherwise provided in NRS 116.31031, after notice and an opportunity to be heard, levy] ;

      (l) Impose construction penalties when authorized pursuant to section 1 of this act;

      (m) Impose reasonable fines for violations of the [declaration, bylaws, rules and regulations] governing documents of the association [;

      (l)] only if the association complies with the requirements set forth in NRS 116.31031;

      (n) Impose reasonable charges for the preparation and recordation of amendments to the declaration, the information required by NRS 116.4109 or statements of unpaid assessments;

      [(m)] (o) Provide for the indemnification of its officers and executive board and maintain directors’ and officers’ liability insurance;


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ê2003 Statutes of Nevada, Page 2268 (Chapter 390, SB 136)ê

 

      [(n)] (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;

      [(o)] (q) Exercise any other powers conferred by the declaration or bylaws;

      [(p)] (r) Exercise all other powers that may be exercised in this state by legal entities of the same type as the association;

      [(q)] (s) Direct the removal of vehicles improperly parked on property owned or leased by the association, pursuant to NRS 487.038; and

      [(r)] (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.

      Sec. 4.  NRS 116.31031 is hereby amended to read as follows:

      116.31031  1.  [If] Except as otherwise provided in this section, if a unit’s owner [,] or a tenant or guest of a unit’s owner [, does not comply with a] violates any provision of the governing documents of an association, the executive board of the association may, if the governing documents so provide:

      (a) Prohibit, for a reasonable time, the unit’s owner [,] or the tenant or guest 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 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) [Require] Impose a fine against the unit’s owner [,] or the tenant or guest of the unit’s owner [, to pay a fine] for each [failure to comply that does not threaten the health and welfare of the common-interest community.] violation, except that a fine may not be imposed for a violation that is the subject of a construction penalty pursuant to section 1 of this act. The fine must be commensurate with the severity of the violation, but must not exceed $100 for each violation or a total amount of $500, whichever is less.

      2.  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.  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.


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ê2003 Statutes of Nevada, Page 2269 (Chapter 390, SB 136)ê

 

      4.  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.  If a fine is imposed pursuant to subsection 1 and the violation is not cured within 14 days , or [a] within any longer period [as] 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.

      [3.  Except as otherwise provided in subsection 2, the imposition of a fine pursuant to this section must comply with the requirements of subsection 6 of NRS 116.31065.]

      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.  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.

      Sec. 5.  NRS 116.31065 is hereby amended to read as follows:

      116.31065  The rules adopted by an association:

      1.  Must be reasonably related to the purpose for which they are adopted.

      2.  Must be sufficiently explicit in their prohibition, direction or limitation to inform a [unit’s owner, or a tenant or guest of a unit’s owner,] person of any action or omission required for compliance.

      3.  Must not be adopted to evade any obligation of the association.

      4.  Must be consistent with the governing documents of the association and must not arbitrarily restrict conduct or require the construction of any capital improvement by a unit’s owner that is not required by the governing documents of the association.

      5.  Must be uniformly enforced under the same or similar circumstances against all units’ owners. Any rule that is not so uniformly enforced may not be enforced against any unit’s owner.

      6.  May be enforced by the [assessment] association through the imposition of a fine only if [:

      (a) The person alleged to have violated the rule has received notice of the alleged violation that informs him of his opportunity to request a hearing on the alleged violation.

      (b) At least 30 days before the alleged violation, the person alleged to have violated the rule was given written notice of the rule or any amendment to the rule.] the association complies with the requirements set forth in NRS 116.31031.


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ê2003 Statutes of Nevada, Page 2270 (Chapter 390, SB 136)ê

 

      Sec. 6.  NRS 116.3108 is hereby amended to read as follows:

      116.3108  1.  A meeting of the units’ owners of an association must be held at least once each year. If the governing documents of a common‑interest community 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. Special meetings of the units’ owners of an association may be called by the president, a majority of the executive board or by units’ owners having 10 percent, or any lower percentage specified in the bylaws, of the votes in the association.

      2.  Not less than 10 nor more than 60 days in advance of any meeting of the units’ owners of an association, 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 [distributed to him] provided to the unit’s owner upon request and, if required by the executive board, upon payment to the association of the cost of [making the distribution.] 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.

      3.  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).

      4.  If the association adopts a policy imposing [a fine on a unit’s owner for the violation of the declaration, bylaws or other rules established by] 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.


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ê2003 Statutes of Nevada, Page 2271 (Chapter 390, SB 136)ê

 

      5.  Not more than 30 days after any meeting of the units’ owners, 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 who pays the association the cost of providing the copy to him.

      6.  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 of the association;

      (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 3.

      Sec. 7.  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 of the association 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 meet in executive session 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;

      (b) Discuss matters relating to personnel; [or

      (c) Discuss]

      (c) Except as otherwise provided in subsection 3, discuss a violation of the governing documents , [alleged to have been committed by a unit’s owner,] including, without limitation, the failure to pay an assessment [, except as otherwise provided in subsection 3.] ; or

      (d) Discuss the alleged failure of a unit’s owner to adhere to a schedule required pursuant to section 1 of this act if the alleged failure may subject the unit’s owner to a construction penalty.

      3.  An executive board shall meet in executive session to hold a hearing on an alleged violation of the governing documents unless the [unit’s owner who allegedly committed] person who may be sanctioned for the alleged violation requests in writing that the hearing be conducted by the executive board at an open meeting. The [unit’s owner who is alleged to have committed] person who may be sanctioned for the alleged violation [may] is entitled to attend the hearing and testify concerning the alleged violation, but the person may be excluded by the executive board from any other portion of the hearing, including, without limitation, the deliberations of the executive board.

      4.  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 3 concerning an alleged violation and, upon request, provide a copy of the decision to the [unit’s owner who was the subject of the hearing] person who was subject to being sanctioned at the hearing or to his designated representative.


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was subject to being sanctioned at the hearing or to his designated representative.

      5.  Except as otherwise provided in subsection 3, a unit’s owner is not entitled to attend or speak at a meeting of the executive board held in executive session.

      Sec. 8.  NRS 116.3116 is hereby amended to read as follows:

      116.3116  1.  The association has a lien on a unit for any construction penalty that is imposed against the unit’s owner pursuant to section 1 of this act, any assessment levied against that unit or any fines imposed against the unit’s owner from the time the construction penalty, assessment or fine becomes due. Unless the declaration otherwise provides, any penalties, fees, charges, late charges, fines and interest charged pursuant to paragraphs (j) [, (k) and (l)] to (n), inclusive, of subsection 1 of NRS 116.3102 are enforceable as assessments under this section. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment thereof becomes due.

      2.  A lien under this section is prior to all other liens and encumbrances on a unit except:

      (a) Liens and encumbrances recorded before the recordation of the declaration and, in a cooperative, liens and encumbrances which the association creates, assumes or takes subject to;

      (b) A first security interest on the unit recorded before the date on which the assessment sought to be enforced became delinquent [,] or, in a cooperative, the first security interest encumbering only the unit’s owner’s interest and perfected before the date on which the assessment sought to be enforced became delinquent; and

      (c) Liens for real estate taxes and other governmental assessments or charges against the unit or cooperative.

The lien is also prior to all security interests described in paragraph (b) to the extent of the assessments for common expenses based on the periodic budget adopted by the association pursuant to NRS 116.3115 which would have become due in the absence of acceleration during the 6 months immediately preceding institution of an action to enforce the lien. This subsection does not affect the priority of mechanics’ or materialmen’s liens, or the priority of liens for other assessments made by the association.

      3.  Unless the declaration otherwise provides, if two or more associations have liens for assessments created at any time on the same property, those liens have equal priority.

      4.  Recording of the declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for assessment under this section is required.

      5.  A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within 3 years after the full amount of the assessments becomes due.

      6.  This section does not prohibit actions to recover sums for which subsection 1 creates a lien or prohibit an association from taking a deed in lieu of foreclosure.

      7.  A judgment or decree in any action brought under this section must include costs and reasonable attorney’s fees for the prevailing party.

      8.  The association , upon written request , shall furnish to a unit’s owner a statement setting forth the amount of unpaid assessments against the unit. If the interest of the unit’s owner is real estate, the statement must be in recordable form.


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recordable form. The statement must be furnished within 10 business days after receipt of the request and is binding on the association, the executive board and every unit’s owner.

      9.  In a cooperative, upon nonpayment of an assessment on a unit, the unit’s owner may be evicted in the same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and the lien may be foreclosed as provided by this section or by NRS 116.31162 to 116.31168, inclusive.

      10.  In a cooperative where the owner’s interest in a unit is personal property [(] under NRS 116.1105 , [),] the association’s lien may be foreclosed [in like manner] as a security interest under NRS 104.9101 to 104.9709, inclusive.

      Sec. 9.  NRS 116.31162 is hereby amended to read as follows:

      116.31162  1.  Except as otherwise provided in subsection 4, in a condominium, in a cooperative where the owner’s interest in a unit is real estate [as determined pursuant to] under NRS 116.1105, or in a planned community, the association may foreclose its lien by sale after:

      (a) The association has mailed by certified or registered mail, return receipt requested, to the unit’s owner or his successor in interest, at his address if known [,] and at the address of the unit, a notice of delinquent assessment which states the amount of the assessments and other sums which are due in accordance with subsection 1 of NRS 116.3116, a description of the unit against which the lien is imposed [,] and the name of the record owner of the unit;

      (b) The association or other person conducting the sale has executed and caused to be recorded, with the county recorder of the county in which the common-interest community or any part of it is situated, a notice of default and election to sell the unit to satisfy the lien, which contains the same information as the notice of delinquent assessment, but must also describe the deficiency in payment and the name and address of the person authorized by the association to enforce the lien by sale; and

      (c) The unit’s owner or his successor in interest has failed to pay the amount of the lien, including costs, fees and expenses incident to its enforcement, for 60 days following the recording of the notice of default and election to sell.

      2.  The notice of default and election to sell must be signed by the person designated in the declaration or by the association for that purpose [,] or , if no one is designated, by the president of the association.

      3.  The period of 60 days begins on the first day following the later of:

      (a) The day on which the notice of default is recorded; or

      (b) The day on which a copy of the notice of default is mailed by certified or registered mail, return receipt requested, to the unit’s owner or his successor in interest at his address , if known, and at the address of the unit.

      4.  The association may not foreclose a lien by sale [for the assessment of] based on a fine or penalty for a violation of the [declaration, bylaws, rules or regulations] governing documents of the association [, unless the violation is of a type that threatens] unless:

      (a) The violation threatens the health, safety or welfare of the residents of the common-interest community [.] ; or

      (b) The penalty is imposed for failure to adhere to a schedule required pursuant to section 1 of this act.


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      Sec. 10.  NRS 38.300 is hereby amended to read as follows:

      38.300  As used in NRS 38.300 to 38.360, inclusive, unless the context otherwise requires:

      1.  “Assessments” means:

      (a) Any charge which an association may impose against an owner of residential property pursuant to a declaration of covenants, conditions and restrictions, including any late charges, interest and costs of collecting the charges; and

      (b) Any penalties, fines, fees and other charges which may be imposed by an association pursuant to paragraphs (j) [, (k) and (l)] to (n), inclusive, of subsection 1 of NRS 116.3102.

      2.  “Association” has the meaning ascribed to it in NRS 116.110315.

      3.  “Civil action” includes an action for money damages or equitable relief. The term does not include an action in equity for injunctive relief in which there is an immediate threat of irreparable harm, or an action relating to the title to residential property.

      4.  “Division” means the Real Estate Division of the Department of Business and Industry.

      5.  “Residential property” includes, but is not limited to, real estate within a planned community subject to the provisions of chapter 116 of NRS. The term does not include commercial property if no portion thereof contains property which is used for residential purposes.

      Sec. 11.  1.  The amendatory provisions of this act apply to any violation of the governing documents of an association or master association that occurs on or after October 1, 2003.

      2.  Notwithstanding any other law to the contrary, if the provisions of the governing documents of an association or master association do not conform to the amendatory provisions of this act:

      (a) The nonconforming provisions of the governing documents shall be deemed to have been conformed to the amendatory provisions of this act by operation of law on October 1, 2003; and

      (b) If the association or master association is associated with a common-interest community that was created on or after January 1, 1992, the executive board of the association or master association may change the nonconforming provisions of the governing documents to conform to the amendatory provisions of this act. The executive board of the association or master association may make such changes without complying with any procedural requirements that would otherwise apply if the executive board were to amend the governing documents of the association or master association in accordance with law.

      3.  As used in this section:

      (a) “Association” has the meaning ascribed to it in NRS 116.110315.

      (b) “Common-interest community” has the meaning ascribed to it in NRS 116.110323.

      (c) “Executive board” has the meaning ascribed to it in NRS 116.110345.

      (d) “Governing documents” has the meaning ascribed to it in NRS 116.110347.

      (e) “Master association” has the meaning ascribed to it in NRS 116.110358.

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ê2003 Statutes of Nevada, Page 2275ê

 

CHAPTER 391, SB 444

Senate Bill No. 444–Committee on Government Affairs

 

CHAPTER 391

 

AN ACT relating to state property; authorizing the transfer of certain real property owned by the State of Nevada to the City of Las Vegas; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  1.  Except as otherwise provided in subsection 2, notwithstanding any provision of chapter 321 of NRS to the contrary, the Administrator of the Division of State Lands of the State Department of Conservation and Natural Resources may enter into an agreement to transfer to the City of Las Vegas, without consideration, all the interest of the State of Nevada in the real property described in section 3 of this act.

      2.  The agreement described in subsection 1:

      (a) Must provide that, after the transfer of the real property and unless the real property reverts to the State of Nevada pursuant to paragraph (b) of subsection 1 of section 2 of this act:

             (1) The State is not liable for any expense incurred to operate or maintain that real property or any appurtenances or facilities which are located on that real property. The provisions of this subparagraph do not prohibit the State from making grants to the City of Las Vegas for the operation or maintenance of the real property or any appurtenances or facilities which are located on the real property.

             (2) The City of Las Vegas may not change the name of the real property from a name which includes the name of Floyd Lamb unless the Legislature approves the change by statute.

      (b) Must not become effective unless and until:

             (1) If the Legislature is in session, the Legislature approves the agreement by statute; or

             (2) If the Legislature is not in session, the Interim Finance Committee approves the agreement.

      Sec. 2.  If real property is transferred pursuant to section 1 of this act:

      1.  The deed from the State of Nevada to the City of Las Vegas must:

      (a)  Include restrictions which:

             (1) Protect all historical and recreational value of the property;

             (2) Guarantee public access to the property;

             (3) Prevent the City of Las Vegas or any successor in title from transferring the property without the consent of the State of Nevada; and

             (4) Ensure that the property is used only for passive recreation; and

      (b) Provide for the reversion of title to the property to the State of Nevada upon the breach of any restriction specified in subsection 1.

      2.  The transfer of the property to the City of Las Vegas must include, in addition to the deed, the relinquishment in favor of the City of Las Vegas of a lease of certain land from the Bureau of Land Management pursuant to section 4 of this act.


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      Sec. 3.  1.  Except as otherwise provided in subsection 2, the property that may be transferred to the City of Las Vegas is commonly known as Floyd Lamb State Park and is described as follows:

      (a) Parcel 1. That portion of the North Half (N 1/2) of the Southwest Quarter (SW 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M., more particularly described as follows:

      Lot 3 as shown by the map thereof on file in file 97 of Parcel Maps, page 46, in the Office of the County Recorder of Clark County, Nevada.

      (b) Parcel 2. The Northwest Quarter (NW 1/4) of the Southeast Quarter (SE 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M., excepting therefrom the south 30 feet as conveyed to the City of Las Vegas by dedication recorded August 1, 1973, in Book 351 as Document No. 310044, Official Records.

      (c) Parcel 3. That portion of the South Half (S 1/2) of the Northwest Quarter (NW 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M., more particularly described as follows:

      Lot 2 as shown by the map thereof on file in file 97 of Parcel Maps, page 46, in the Office of the County Recorder of Clark County, Nevada.

      (d) Parcel 4. The Southwest Quarter (SW 1/4) of the Northeast Quarter (NE 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M.

      (e) Parcel 5. The Northwest Quarter (NW 1/4) of the Northeast Quarter (NE 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M.

      (f) Parcel 6. The Southwest Quarter (SW 1/4) of Section 4, Township 19 South, Range 60 East, M.D.M.

      (g) Parcel 7. The North Half (N 1/2) of the Southeast Quarter (SE 1/4) of Section 4, Township 19 South, Range 60 East, M.D.M.

      (h) Parcel 8. The Southeast Quarter (SE 1/4) of the Southeast Quarter (SE 1/4) of Section 4, Township 19 South, Range 60 East, M.D.M.

      (i) Parcel 9. The Southwest Quarter (SW 1/4) of the Southeast Quarter (SE 1/4) of Section 4, Township 19 South, Range 60 East, M.D.M.

      (j) Parcel 10. The South Half (S 1/2) of the Southwest Quarter (SW 1/4) of Section 3, Township 19 South, Range 60 East, M.D.M.

      (k) Parcel 11. That portion of the Northeast Quarter (NE 1/4) of the Northwest Quarter (NW 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M., more particularly described as follows:

      Commencing at the North Quarter (N 1/4) corner of said Section 9, the true point of beginning; thence along the North line of said Section North 89°38'23" West, 75.00 feet; thence parallel with and distant 75.00 feet westerly, measured at right angles, from the East line of the Northwest Quarter (NW 1/4) of said Section, South 00°07'41" East, 1329.70 feet; thence along the South line of the Northeast Quarter (NE 1/4) of the Northwest Quarter (NW 1/4) of said Section, South 89°11'36" East, 75.01 feet; thence along the East line of the Northwest Quarter (NW 1/4) of said Section; North 00°07'41" West, 1330.28 feet to the true point of beginning.

      (l) Parcel 12. That portion of the North Half (N 1/2) of the Northwest Quarter (NW 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M., more particularly described as follows:

      Commencing at the Northeast Corner of the Northwest Quarter (NW 1/4) of said Section 9; thence North 89°35'34" West along the North line of said Section 9 a distance of 75.01 feet to the West line of the East 75.00 feet of the Northwest Quarter (NW 1/4) of said Section 9, being the true point of beginning; thence continuing North 89°35'34" West along said North line a distance of 60.00 feet; thence South 00°39'34" East parallel with the East line of the Northwest Quarter (NW 1/4) of said Section 9 a distance of 840.00 feet; thence South 25°20'38" West a distance of 125.00 feet; thence South 40°52'49" West a distance of 550.66 feet to a point in the South line of the North Half (N 1/2) of the Northwest Quarter (NW 1/4) of said Section 9; thence North 88°29'50" East along said South line a distance of 480.00 feet to the West line of the East 75.00 feet of the Northwest Quarter (NW 1/4) of said Section 9; thence North 00°39'34" West along the West line of said East 75.00 feet a distance of 1356.25 feet to the true point of beginning.


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ê2003 Statutes of Nevada, Page 2277 (Chapter 391, SB 444)ê

 

distance of 60.00 feet; thence South 00°39'34" East parallel with the East line of the Northwest Quarter (NW 1/4) of said Section 9 a distance of 840.00 feet; thence South 25°20'38" West a distance of 125.00 feet; thence South 40°52'49" West a distance of 550.66 feet to a point in the South line of the North Half (N 1/2) of the Northwest Quarter (NW 1/4) of said Section 9; thence North 88°29'50" East along said South line a distance of 480.00 feet to the West line of the East 75.00 feet of the Northwest Quarter (NW 1/4) of said Section 9; thence North 00°39'34" West along the West line of said East 75.00 feet a distance of 1356.25 feet to the true point of beginning.

      (m) Parcel 13. The North Half (N 1/2) of the Northwest Quarter (NW 1/4) of Section 9, Township 19 South, Range 60 East, M.D.M, excepting therefrom:

             (1) The East 75.00 feet thereof;

             (2) The West 30.00 feet as granted to Clark County for road purposes; and

             (3) The following described property:

      Commencing at the Northeast Corner of the Northwest Quarter (NW 1/4) of said Section 9; thence North 89°35'34" West along the North line of said Section 9 a distance of 75.01 feet to the West line of the East 75.00 feet of the Northwest Quarter (NW 1/4) of said Section 9, being the true point of beginning; thence continuing North 89°35'34" West along said North line a distance of 60.00 feet; thence South 00°39'34" East and parallel with the East line of the Northwest Quarter (NW 1/4) of said Section 9, a distance of 840.00 feet; thence South 25°20'08" West a distance of 125.00 feet; thence South 40°52'49" West a distance of 550.66 feet to a point in the South line of the North Half (N 1/2) of the Northwest Quarter (NW 1/4) of said Section 9; thence North 88°29'50" East along said South line a distance of 480.00 feet to the West line of the East 75.00 feet of the Northwest Quarter (NW 1/4) of said Section 9; thence North 00°39'34" West along the West line of said East 75.00 feet a distance of 1356.25 feet to the point of beginning.

      (n) Parcel 14. The Northwest Quarter (NW 1/4) of the Southwest Quarter (SW 1/4) of Section 3, Township 19 South, Range 60 East, M.D.M.

      2.  The legal descriptions set forth in subsection 1 must be amended to reflect a survey to be done of the boundaries of the portion of the property set aside for the use of the Division of Forestry of the State Department of Conservation and Natural Resources. The land and all interests in land identified by the Division of State Lands of the State Department of Conservation and Natural Resources as necessary for use by the Division of Forestry must be excluded from the legal descriptions and must remain the property of the State of Nevada.

      Sec. 4.  1.  The relinquishment of a lease of land to the Bureau of Land Management in favor of the City of Las Vegas as required by section 2 of this act must include all land leased to the State of Nevada by the Bureau of Land Management in Lease Number N-36876, more particularly described as follows:

      (a) The West Half (W 1/2) of Section 2, Township 19 South, Range 60 East, M.D.M.;

      (b) Lot 3, Lot 4, the South Half (S 1/2) of the North Half (N 1/2), the Northeast Quarter (NE 1/4) of the Southwest Quarter (SW 1/4), and the Southeast Quarter (SE 1/4) of Section 3, Township 19 South, Range 60 East, M.D.M.;


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ê2003 Statutes of Nevada, Page 2278 (Chapter 391, SB 444)ê

 

      (c) Lot 1, Lot 2, and the Southeast Quarter (SE 1/4) of the Northeast Quarter (NE 1/4) of Section 4, Township 19 South, Range 60 East, M.D.M.; and

      (d) The Northwest Quarter (NW 1/4) of Section 11, Township 19 South, Range 60 East, M.D.M.

      2.  The land specified in subsection 1 contains an area of 1,056.71 acres as shown on that certain Master Title Plat most recently dated November 30, 2001, in the records of the Bureau of Land Management for Township 19 South, Range 60 East, M.D.M.

      Sec. 5.  This act becomes effective upon passage and approval.

________

 

CHAPTER 392, SB 425

Senate Bill No. 425–Committee on Commerce and Labor

 

CHAPTER 392

 

AN ACT relating to pharmacy; eliminating the provisions relating to the regulation of supportive personnel; increasing the fee for the biennial renewal of a license for a manufacturer or wholesaler; abolishing inactive licenses; revising provisions governing the sale and purchase of prescription drugs by a wholesaler; revising provisions governing a rehearing of the State Board of Pharmacy concerning a contest or appeal of a decision of the Board; repealing the requirement that a notice concerning the substitution of certain drugs be displayed in a pharmacy; authorizing persons enrolled in certain training programs to administer controlled substances and certain drugs and medicines; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 639 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 3.5 inclusive, of this act.

      Sec. 2.  “Pharmaceutical technician” means a person who performs technical services in a pharmacy under the direct supervision of a pharmacist and is registered with the Board.

      Sec. 3.  “Pharmaceutical technician in training” means a person who is:

      1.  Registered with the Board in order to obtain the training and experience required to be a pharmaceutical technician; or

      2.  Enrolled in a program of training for pharmaceutical technicians that is approved by the Board.

      Sec. 3.5.  1.  A wholesaler may sell a prescription drug only to:

      (a) A pharmacy or practitioner; or

      (b) Another wholesaler if:

             (1) The wholesaler who purchases the drug is licensed by the Board or the board or other relevant authority of another state; and

             (2) The sale is a bona fide transaction.

      2.  A wholesaler may purchase a prescription drug only from:

      (a) A manufacturer; or


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ê2003 Statutes of Nevada, Page 2279 (Chapter 392, SB 425)ê

 

      (b) Another wholesaler if:

             (1) The wholesaler who sells the drug is licensed by the Board; and

             (2) The sale is a bona fide transaction.

      3.  The Board shall not limit the quantity of prescription drugs a wholesaler may purchase, sell, distribute or otherwise provide to another wholesaler, distributor or manufacturer.

      4.  For the purposes of this section:

      (a) A purchase shall be deemed a bona fide transaction if:

             (1) The wholesaler purchased the drug:

                   (I) Directly from the manufacturer of the drug; or

                   (II) With a reasonable belief that the drug was originally purchased directly from the manufacturer of the drug;

             (2) The circumstances of the purchase reasonably indicate that the drug was not purchased from a source prohibited by law;

             (3) Unless the drug is purchased by the wholesaler from the manufacturer, before the wholesaler sells the drug to another wholesaler, the wholesaler who sells the drug conducts a reasonable visual examination of the drug to ensure that the drug is not:

                   (I) Counterfeit;

                   (II) Deemed to be adulterated or misbranded in accordance with the provisions of chapter 585 of NRS;

                   (III) Mislabeled;

                   (IV) Damaged or compromised by improper handling, storage or temperature control;

                   (V) From a foreign or unlawful source; or

                   (VI) Manufactured, packaged, labeled or shipped in violation of any state or federal law relating to prescription drugs;

             (4) The drug is shipped directly from the wholesaler who sells the drug to the wholesaler who purchases the drug; and

             (5) The documents of the shipping company concerning the shipping of the drug are attached to the invoice for the drug and are maintained in the records of the wholesaler.

      (b) A sale shall be deemed a bona fide transaction if there is a reasonable assurance by the wholesaler that purchases the drug that the wholesaler will sell the drug directly and only to a pharmacy or practitioner.

      (c) The purchase or sale of a prescription drug includes, without limitation, the distribution, transfer, trading, bartering or any other provision of a prescription drug to another person by a wholesaler. A transfer of a prescription drug from a wholesale facility of a wholesaler to another wholesale facility of the wholesaler shall not be deemed a purchase or sale of a prescription drug pursuant to this section if the wholesaler is a corporation whose securities are publicly traded and regulated by the Securities Exchange Act of 1934.

      Sec. 4.  NRS 639.001 is hereby amended to read as follows:

      639.001  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 639.0015 to 639.016, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.

      Sec. 5.  NRS 639.0124 is hereby amended to read as follows:

      639.0124  “Practice of pharmacy” includes, but is not limited to, the:


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ê2003 Statutes of Nevada, Page 2280 (Chapter 392, SB 425)ê

 

      1.  Performance or supervision of activities associated with manufacturing, compounding, labeling, dispensing and distributing of a drug [.] , including the receipt, handling and storage of prescriptions and other confidential information relating to patients.

      2.  Interpretation and evaluation of prescriptions or orders for medicine.

      3.  Participation in drug evaluation and drug research.

      4.  Advising of the therapeutic value, reaction, drug interaction, hazard and use of a drug.

      5.  Selection of the source, storage and distribution of a drug.

      6.  Maintenance of proper documentation of the source, storage and distribution of a drug.

      7.  Interpretation of clinical data contained in a person’s record of medication.

      8.  Development of written guidelines and protocols in collaboration with a practitioner which are intended for a patient in a licensed medical facility and authorize the implementation, monitoring and modification of drug therapy. The written guidelines and protocols may authorize a pharmacist to order and use the findings of laboratory tests and examinations.

      9.  Implementation and modification of drug therapy in accordance with the authorization of the prescribing practitioner for a patient in a pharmacy in which drugs, controlled substances, poisons, medicines or chemicals are sold at retail.

The term does not include the changing of a prescription by a pharmacist or practitioner without the consent of the prescribing practitioner, except as otherwise provided in NRS 639.2583.

      Sec. 6.  NRS 639.015 is hereby amended to read as follows:

      639.015  “Registered pharmacist” means:

      1.  A person registered in this state as such on July 1, 1947;

      2.  A person registered in this state as such in compliance with the provisions of paragraph (c) of section 3 of chapter 195, Statutes of Nevada 1951; or

      3.  A person who has complied with the provisions of NRS 639.120 [and 639.133] and whose name has been entered in the registry of pharmacists of this state by the Executive Secretary of the Board and to whom a valid certificate as a registered pharmacist or valid renewal thereof has been issued by the Board.

      Sec. 7.  (Deleted by amendment.)

      Sec. 8.  NRS 639.040 is hereby amended to read as follows:

      639.040  1.  The Board shall elect a President and a Treasurer from among its members.

      2.  The Board shall employ [a] an Executive Secretary, who must not be a member of the Board. The Executive Secretary shall keep a complete record of all proceedings of the Board and of all certificates issued, and shall perform such other duties as the Board may require, for which services he is entitled to receive a salary to be determined by the Board.

      Sec. 9.  NRS 639.070 is hereby amended to read as follows:

      639.070  1.  The Board may:

      (a) Adopt such regulations, not inconsistent with the laws of this state, as are necessary for the protection of the public, appertaining to the practice of pharmacy and the lawful performance of its duties.


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      (b) Adopt regulations requiring that prices charged by retail pharmacies for drugs and medicines which are obtained by prescription be posted in the pharmacies and be given on the telephone to persons requesting such information.

      (c) Adopt regulations, not inconsistent with the laws of this state, authorizing the Executive Secretary of the Board to issue certificates, licenses and permits required by this chapter and chapters 453 and 454 of NRS.

      (d) Adopt regulations governing the dispensing of poisons, drugs, chemicals and medicines.

      (e) Regulate the practice of pharmacy.

      (f) Regulate the sale and dispensing of poisons, drugs, chemicals and medicines.

      (g) Regulate the means of recordkeeping and storage, handling, sanitation and security of drugs, poisons, medicines, chemicals and devices, including, but not limited to, requirements relating to:

             (1) Pharmacies, institutional pharmacies and pharmacies in correctional institutions;

             (2) Drugs stored in hospitals; and

             (3) Drugs stored for the purpose of wholesale distribution.

      (h) Examine and register, upon application, pharmacists and other persons who dispense or distribute medications whom it deems qualified.

      (i) Charge and collect necessary and reasonable fees for its services, other than those specifically set forth in this chapter.

      (j) Maintain offices in as many localities in the State as it finds necessary to carry out the provisions of this chapter.

      (k) Employ an attorney, inspectors, investigators and other professional consultants and clerical personnel necessary to the discharge of its duties.

      (l) Enforce the provisions of NRS 453.011 to 453.552, inclusive, and enforce the provisions of this chapter and chapter 454 of NRS.

      (m) Adopt regulations concerning the information required to be submitted in connection with an application for any license, certificate or permit required by this chapter or chapter 453 or 454 of NRS.

      (n) Adopt regulations concerning the education, experience and background of a person who is employed by the holder of a license or permit issued pursuant to this chapter and who has access to drugs and devices.

      (o) Adopt regulations concerning the use of computerized mechanical equipment for the filling of prescriptions.

      (p) Participate in and expend money for programs that enhance the practice of pharmacy.

      2.  This section does not authorize the Board to prohibit open-market competition in the advertising and sale of prescription drugs and pharmaceutical services.

      Sec. 10.  NRS 639.081 is hereby amended to read as follows:

      639.081  1.  Except as otherwise provided in subsection 3, all money coming into the possession of the Board must be kept or deposited by the Executive Secretary of the Board in banks, credit unions or savings and loan associations in the State of Nevada, or invested in United States treasury bills or notes, to be expended for payment of compensation and expenses of members of the Board and for other necessary or proper purposes in the administration of this chapter.


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      2.  The Board may delegate to a hearing officer or panel its authority to take any disciplinary action pursuant to this chapter, impose and collect fines therefor and deposit the money therefrom in banks, credit unions or savings and loan associations in this state.

      3.  If a hearing officer or panel is not authorized to take disciplinary action pursuant to subsection 2 and the Board deposits the money collected from the imposition of fines with the State Treasurer for credit to the State General Fund, it may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

      Sec. 11.  NRS 639.120 is hereby amended to read as follows:

      639.120  1.  An applicant to become a registered pharmacist in this state must:

      (a) Be of good moral character.

      (b) Be a graduate of a college of pharmacy or department of pharmacy of a university accredited by the American Council on Pharmaceutical Education or Canadian Council for Accreditation of Pharmacy Programs and approved by the Board or a graduate of a foreign school who has passed an examination for foreign graduates approved by the Board to demonstrate that his education is equivalent.

      (c) Pass an examination approved and given by the Board with a grade of at least 75 on the examination as a whole and a grade of at least 75 on the examination on law. An applicant for registration by reciprocity must pass the examination on law with at least a grade of 75.

      (d) Complete not less than 1,500 hours of practical pharmaceutical experience as an intern pharmacist under the direct and immediate supervision of a registered pharmacist.

      2.  The practical pharmaceutical experience required pursuant to paragraph (d) of subsection 1 must relate primarily to the selling of drugs, poisons and devices, the compounding and dispensing of prescriptions, preparing prescriptions , and keeping records and preparing reports required by state and federal statutes.

      3.  The Board may accept evidence of compliance with the requirements set forth in paragraph (d) of subsection 1 from boards of pharmacy of other states in which the experience requirement is equivalent to the requirements in this state.

      Sec. 12.  NRS 639.127 is hereby amended to read as follows:

      639.127  1.  An applicant for registration as a pharmacist in this state must submit an application to the Executive Secretary of the Board on a form furnished by the Board and must pay the fee fixed by the Board. The fee must be paid at the time the application is submitted and is compensation to the Board for the investigation and the examination of the applicant. Under no circumstances may the fee be refunded.

      2.  Proof of the qualifications of any applicant must be made to the satisfaction of the Board and must be substantiated by affidavits, records or such other evidence as the Board may require.

      3.  An application is only valid for 1 year after the date it is received by the Board unless the Board extends its period of validity.

      4.  A certificate of registration as a pharmacist must be issued to each person who the Board determines is qualified pursuant to the provisions of NRS 639.120 [, 639.133] and 639.134. The certificate entitles the person to whom it is issued to practice pharmacy in this state.


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      Sec. 13.  NRS 639.128 is hereby amended to read as follows:

      639.128  The application of a natural person who applies for the issuance of a certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.233 must include the social security number of the applicant.

      Sec. 14.  NRS 639.129 is hereby amended to read as follows:

      639.129  1.  A natural person who applies for the issuance or renewal of a certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.233 shall submit to the Board the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The Board shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of the certificate or license; or

      (b) A separate form prescribed by the Board.

      3.  A certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued issued pursuant to NRS 639.233 may not be issued or renewed by the Board if the applicant is a natural person who:

      (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 Board 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. 15.  NRS 639.137 is hereby amended to read as follows:

      639.137  1.  Any person who is not a registered pharmacist, but who is employed in this state for the purpose of fulfilling the requirements of paragraph (d) of subsection 1 of NRS 639.120 to become eligible for registration as a pharmacist, shall register with the Board as an intern pharmacist. An applicant, to be eligible for registration as an intern pharmacist, must be enrolled in a college of pharmacy or a department of pharmacy of a university approved by the Board or be a graduate of a foreign school and pass an examination for foreign graduates approved by the Board. The application must be made on a form furnished by the Board.

      2.  The Executive Secretary of the Board, upon approval of the application, shall issue a certificate of registration authorizing the applicant to undergo practical pharmaceutical training under the direct and immediate supervision of a registered pharmacist. The period of validity of the certificate of registration, including any renewal, must not exceed 4 years after the date of issue.


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after the date of issue. The certificate of registration authorizes the holder, if acting under the direct and immediate supervision of a registered pharmacist, to perform:

      (a) The duties of a registered pharmacist as authorized by regulation of the Board; and

      (b) Other activities as authorized by regulation of the Board.

      3.  The certificate of registration must be posted as required by NRS 639.150.

      4.  Any certificate of registration issued pursuant to the provisions of this section may be suspended, terminated or revoked by the Board for:

      (a) Any reason set forth in this chapter as grounds for the suspension or revocation of any certificate, license or permit; or

      (b) The failure of the registered pharmacist whose name appears on the certificate of registration to provide adequate training and supervision for the intern pharmacist in compliance with regulations adopted by the Board.

      Sec. 16.  NRS 639.1371 is hereby amended to read as follows:

      639.1371  1.  The ratio of [supportive personnel] pharmaceutical technicians to pharmacists must not allow more than one [supportive personnel] pharmaceutical technician to each pharmacist unless the Board by regulation expands the ratio.

      2.  The Board shall adopt regulations concerning [supportive personnel,] pharmaceutical technicians, including requirements for:

      (a) The qualifications, registration and supervision of [supportive personnel;] pharmaceutical technicians, and

      (b) [Services] The services which may be performed by [supportive personnel,] pharmaceutical technicians,

to ensure the protection and safety of the public in the provision of pharmaceutical care.

      3.  The regulations adopted by the Board pursuant to this section which prescribe:

      (a) The qualifications for [supportive personnel] pharmaceutical technicians must include:

             (1) [At least 1 year of education at a postsecondary school which is directly related to the duties performed by supportive personnel;

             (2)] The successful completion of a program for [supportive personnel] pharmaceutical technicians which is approved by the Board;

             [(3)] (2) The completion of at least 1,500 hours of experience in carrying out the duties of [supportive personnel; or

             (4)] a pharmaceutical technician; or

             (3) Any other experience or education deemed equivalent by the Board.

      (b) An expanded ratio of [supportive personnel] pharmaceutical technicians to pharmacists must [not allow more than two supportive personnel for each pharmacist in] be appropriate and necessary for a particular category of pharmacy at any time.

      (c) The services which may be performed by [supportive personnel] pharmaceutical technicians must include, without limitation, the:

             (1) Removal of drugs from stock;

             (2) Counting, pouring or mixing of drugs;

             (3) Placing of drugs in containers;

             (4) Affixing of labels to containers; and

             (5) Packaging and repackaging of drugs.


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      4.  For the purposes of this chapter, and chapters 453 and 454 of NRS, [supportive personnel] pharmaceutical technicians may perform acts required to be performed by pharmacists , but only to the extent provided in regulations.

      Sec. 17.  NRS 639.138 is hereby amended to read as follows:

      639.138  If the Board, after an investigation, denies any application for a certificate, license or permit, the Executive Secretary of the Board shall notify the applicant, within 10 days after the denial is approved by the Board and entered in the official minutes, by registered or certified mail, of the denial of the application and the reasons therefor. The notice must inform the applicant of his right to petition the Board for reconsideration and his right to submit evidence to controvert the alleged violations on which the denial was based.

      Sec. 18.  NRS 639.139 is hereby amended to read as follows:

      639.139  1.  At any time within 30 days after receipt of the notice of denial of his application, an applicant may petition the Board for reconsideration of the application. The petition must set forth a denial, in whole or in part, of the violations alleged and a statement that the applicant is prepared to submit evidence in support of his denial of the allegations.

      2.  Within 30 days after the petition is received by the Board, the Executive Secretary of the Board shall notify the petitioner, by registered or certified mail, of the Board’s decision [either] to grant or deny the petition for reconsideration. If the petition is granted, the notice [shall] must include the time and place set for reconsideration of the application by the Board.

      Sec. 19.  NRS 639.160 is hereby amended to read as follows:

      639.160  Every registered pharmacist shall, within 10 days after changing his place of practice as designated on the books of the Executive Secretary of the Board, notify the Executive Secretary [of the Board of such] of the change and of his new place of practice. Upon receipt of [such] the notification , the Executive Secretary shall make the necessary change in his register.

      Sec. 20.  NRS 639.170 is hereby amended to read as follows:

      639.170  1.  The Board shall charge and collect not more than the following fees for the following services:

 

                                                                                                                      Actual cost

For the examination of an applicant for registration                   of the

as a pharmacist.................................................................. examination

For the investigation or registration of an applicant as a registered pharmacist         $200

For the investigation, examination or registration of an applicant as a registered pharmacist by reciprocity      300

For the investigation or issuance of an original license to conduct a retail pharmacy              600

For the biennial renewal of a license to conduct a retail pharmacy 500

For the investigation or issuance of an original license to conduct an institutional pharmacy                600

For the biennial renewal of a license to conduct an institutional pharmacy               500

For the issuance of an original or duplicate certificate of registration as a registered pharmacist          50


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For the biennial renewal of registration as a registered pharmacist $200

For the reinstatement of a lapsed registration (in addition to the fees for renewal for the period of lapse)          100

[For the initial registration of supportive personnel............................... 50

For the biennial renewal of registration of supportive personnel...... 50]

For the initial registration of a pharmaceutical technician or pharmaceutical technician in training            50

For the biennial renewal of registration of a pharmaceutical technician or pharmaceutical technician in training      50

For the investigation or registration of an intern pharmacist.............. 50

For the biennial renewal of registration as an intern pharmacist........ 40

For investigation or issuance of an original license to a manufacturer or wholesaler                500

For the biennial renewal of a license for a manufacturer or wholesaler [400] 500

For the reissuance of a license issued to a pharmacy, when no change of ownership is involved, but the license must be reissued because of a change in the information required thereon   100

[For the biennial renewal of registration issued to a registered pharmacist placed on inactive status    100]

For authorization of a practitioner to dispense controlled substances or dangerous drugs, or both       300

For the biennial renewal of authorization of a practitioner to dispense controlled substances or dangerous drugs, or both    300

 

      2.  If a person requests a special service from the Board or requests the Board to convene a special meeting, he must pay the actual costs to the Board as a condition precedent to the rendition of the special service or the convening of the special meeting.

      3.  All fees are payable in advance and are not refundable.

      4.  The Board may, by regulation, set the penalty for failure to pay the fee for renewal for any license, permit, authorization or certificate within the statutory period, at an amount not to exceed 100 percent of the fee for renewal for each year of delinquency in addition to the fees for renewal for each year of delinquency.

      Sec. 21.  NRS 639.180 is hereby amended to read as follows:

      639.180  1.  Except as otherwise provided in this subsection, a certificate, license or permit issued by the Board pursuant to this chapter expires on October 31 of each even‑numbered year. A certificate of registration as a pharmacist expires on October 31 of each odd‑numbered year.

      2.  Except as otherwise provided by NRS 639.137, 639.230 and 639.2328, each person to whom a certificate, license or permit has been issued may, if the certificate, license or permit has not been revoked, renew the certificate, license or permit biennially by:


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issued may, if the certificate, license or permit has not been revoked, renew the certificate, license or permit biennially by:

      (a) Filing an application for renewal;

      (b) Paying the fee for renewal;

      (c) Complying with the requirement of continuing professional education, if applicable; and

      (d) If the applicant is a natural person who is applying for the renewal of a certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.233, submitting the statement required pursuant to NRS 639.129.

      3.  The application for renewal, together with the fee for renewal and, if applicable, the statement, must be delivered to the Executive Secretary of the Board on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof.

      4.  If a certificate, license or permit is renewed, it must be delivered to the applicant within a reasonable time after receipt of the application for renewal and the fee for renewal.

      5.  The Board may refuse to renew a certificate, license or permit if the applicant has committed any act proscribed by NRS 639.210.

      6.  If the application for renewal and the fee for renewal and, if applicable, the statement [,] are not postmarked on or before the expiration date of the certificate, license or permit, or the current renewal receipt thereof, the registration is automatically forfeited.

      Sec. 22.  NRS 639.2174 is hereby amended to read as follows:

      639.2174  The Board shall not [:

      1.  Issue a certificate as a registered pharmacist to any person pursuant to NRS 639.133; or

      2.  Renew] renew the certificate of any registered pharmacist [,] until the applicant has submitted proof to the Board of the receipt of the required number of continuing education units, obtained through the satisfactory completion of an accredited program of continuing professional education during the period for which the certificate was issued.

      Sec. 23.  NRS 639.230 is hereby amended to read as follows:

      639.230  1.  A [pharmacy or a] person operating [as a pharmacy] a business in this state shall not use the letters “Rx” or “RX” or the word “drug” or “drugs,” “prescription” or “pharmacy,” or similar words or words of similar import, without first having secured a license from the Board.

      2.  Each license must be issued to a specific person and for a specific location and is not transferable. The original license must be displayed on the licensed premises as provided in NRS 639.150. The original license and the fee required for reissuance of a license must be submitted to the Board before the reissuance of the license.

      3.  If the owner of a pharmacy is a partnership or corporation, any change of partners or corporate officers must be reported to the Board at such a time as is required by a regulation of the Board.

      4.  In addition to the requirements for renewal set forth in NRS 639.180, every person holding a license to operate a pharmacy must satisfy the Board that the pharmacy is conducted according to law.

      5.  Any violation of any of the provisions of this chapter by a managing pharmacist or by personnel of the pharmacy under the supervision of the managing pharmacist is cause for the suspension or revocation of the license of the pharmacy by the Board.


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managing pharmacist is cause for the suspension or revocation of the license of the pharmacy by the Board.

      Sec. 24.  NRS 639.231 is hereby amended to read as follows:

      639.231  1.  An application to conduct a pharmacy must be made on a form furnished by the Board and must state the name, address, usual occupation and professional qualifications, if any, of the applicant. If the applicant is other than a natural person, the application must state such information as to each person beneficially interested therein.

      2.  As used in subsection 1, and subject to the provisions of subsection 3, the term “person beneficially interested” means:

      (a) If the applicant is a partnership or other unincorporated association, each partner or member.

      (b) If the applicant is a corporation, each of its officers, directors and stockholders, provided that no natural person shall be deemed to be beneficially interested in a nonprofit corporation.

      3.  If the applicant is a partnership, unincorporated association or corporation and the number of partners, members or stockholders, as the case may be, exceeds four, the application must so state, and must list each of the four partners, members or stockholders who own the four largest interests in the applicant entity and state their percentages of interest. Upon request of the Executive Secretary of the Board, the applicant shall furnish the Board with information as to partners, members or stockholders not named in the application or shall refer the Board to an appropriate source of such information.

      4.  The completed application form must be returned to the Board with the fee prescribed by the Board, which may not be refunded. Any application which is not complete as required by the provisions of this section may not be presented to the Board for consideration.

      5.  Upon compliance with all the provisions of this section and upon approval of the application by the Board, the Executive Secretary shall issue a license to the applicant to conduct a pharmacy. Any other provision of law notwithstanding, such a license authorizes the holder to conduct a pharmacy and to sell and dispense drugs and poisons and devices and appliances that are restricted by federal law to sale by or on the order of a physician.

      Sec. 24.5.  NRS 639.233 is hereby amended to read as follows:

      639.233  1.  Any person, including a wholesaler or manufacturer, who engages in the business of wholesale distribution or furnishing controlled substances, poisons, drugs, devices or appliances that are restricted by federal law to sale by or on the order of a physician to any person located within this state shall obtain a license pursuant to the provisions of this chapter.

      2.  [The provisions of subsection 1 do not apply to a wholesaler or manufacturer whose principal place of business is located in another state and who ships controlled substances, drugs, poisons or restricted devices or appliances to a wholesaler or manufacturer located within this state and licensed by the Board.

      3.]  For the purpose of this section, a person is “engaged in the business of furnishing” if he:

      (a) Solicits or accepts orders for drugs or devices whose sale in this state is restricted by this chapter or chapter 453 or 454 of NRS; or

      (b) Receives, stores or ships such drugs or devices.


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      Sec. 25.  NRS 639.234 is hereby amended to read as follows:

      639.234  1.  The acceptance of a license issued pursuant to NRS 639.233 constitutes a consent by the licensee to the inspection , copying and removal for copying of his records maintained inside and outside this state by any authorized representative of the Board.

      2.  If such a licensee is not a resident of this state and does not maintain records within this state of his shipments of controlled substances, poisons or drugs or devices or appliances that are restricted by federal law to sale by or on the order of a physician to persons in this state , he shall, on receipt of a written demand from the Executive Secretary of the Board, furnish a true copy of the records to the Board.

      3.  The Board may authorize as its representative any member or representative of the Board of pharmacy or similar agency of the state in which the records are located.

      4.  [Failure] The failure to furnish a true copy of the required records or the refusal to permit their inspection is a ground for [the revocation or] suspension of and disciplinary action relating to any license issued pursuant to NRS 639.233.

      Sec. 26.  NRS 639.235 is hereby amended to read as follows:

      639.235  1.  No person other than a practitioner holding a license to practice his profession in this state may prescribe or write a prescription, except that a prescription written by a person who is not licensed to practice in this state , but is authorized by the laws of another state to prescribe , shall be deemed to be a legal prescription unless the person prescribed or wrote the prescription in violation of the provisions of NRS 453.3611 to 453.3648, inclusive.

      2.  If a prescription that is prescribed by a person who is not licensed to practice in this state, but is authorized by the laws of another state to prescribe, calls for a controlled substance listed in:

      (a) Schedule II, the registered pharmacist who is to fill the prescription shall establish and document that the prescription is authentic and that a bona fide relationship between the patient and the person prescribing the controlled substance did exist when the prescription was written.

      (b) Schedule III or IV, the registered pharmacist who is to fill the prescription shall establish [, in his professional judgment,] that the prescription is authentic and that a bona fide relationship between the patient and the person prescribing the controlled substance did exist when the prescription was written. This paragraph does not require the registered pharmacist to inquire into such a relationship upon the receipt of [each such prescription.] a similar prescription subsequently issued for that patient.

      3.  A pharmacist who fills a prescription described in subsection 2 shall record on the prescription or in the prescription record in the pharmacy’s computer:

      (a) The name of the person with whom he spoke concerning the prescription;

      (b) The date and time of the conversation; and

      (c) The date and time the patient was physically examined by the person prescribing the controlled substance for which the prescription was issued.

      4.  For the purposes of subsection 2, a bona fide relationship between the patient and the person prescribing the controlled substance shall be deemed to exist if the patient was physically examined by the person prescribing the controlled substances within the 6 months immediately preceding the date the prescription was issued.


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prescribing the controlled substances within the 6 months immediately preceding the date the prescription was issued.

      Sec. 27.  NRS 639.238 is hereby amended to read as follows:

      639.238  1.  Prescriptions filled and on file in a pharmacy are not a public record. A pharmacist shall not divulge the contents of any prescription or provide a copy of any prescription, except to:

      (a) The patient for whom the original prescription was issued;

      (b) The practitioner who originally issued the prescription;

      (c) A practitioner who is then treating the patient;

      (d) A member, inspector or investigator of the Board or an inspector of the Food and Drug Administration or an agent of the Investigation Division of the Department of Public Safety;

      (e) An agency of State Government charged with the responsibility of providing medical care for the patient;

      (f) An insurance carrier, on receipt of written authorization signed by the patient or his legal guardian, authorizing the release of such information;

      (g) Any person authorized by an order of a district court;

      (h) Any member, inspector or investigator of a professional licensing board which licenses a practitioner who orders prescriptions filled at the pharmacy; [or]

      (i) Other registered pharmacists for the limited purpose of and to the extent necessary for the exchange of information relating to persons who are suspected of:

             (1) Misusing prescriptions to obtain excessive amounts of drugs [.] ; or

             (2) Failing to use a drug in conformity with the directions for its use or taking a drug in combination with other drugs in a manner that could result in injury to that person [.] ; or

      (j) A peace officer employed by a local government for the limited purpose of and to the extent necessary:

             (1) For the investigation of an alleged crime reported by an employee of the pharmacy where the crime was committed; or

             (2) To carry out a search warrant or subpoena issued pursuant to a court order.

      2.  Any copy of a prescription for a controlled substance or a dangerous drug as defined in chapter 454 of NRS, issued to a person authorized by this section to receive such a copy, must contain all of the information appearing on the original prescription and be clearly marked on its face [,] “Copy, Not Refillable—For Reference Purposes Only.” The copy must bear the name or initials of the registered pharmacist who prepared the copy.

      3.  If a copy of a prescription for any controlled substance or a dangerous drug as defined in chapter 454 of NRS is furnished to the customer, the original prescription must be voided and notations made thereon showing the date and the name of the person to whom the copy was furnished.

      4.  If, at the express request of a customer, a copy of a prescription for any controlled substance or dangerous drug is furnished to another pharmacist, the original prescription must be voided and notations made thereon showing the date and the name of the pharmacist to whom the copy was furnished. The pharmacist receiving the copy shall call the prescribing practitioner for a new prescription.

      5.  As used in this section, “peace officer” does not include:


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      (a) A member of the Police Department of the University and Community College System of Nevada.

      (b) A school police officer who is appointed or employed pursuant to NRS 391.100.

      Sec. 28.  NRS 639.239 is hereby amended to read as follows:

      639.239  Members, inspectors and investigators of the Board, inspectors of the Food and Drug Administration , [and] agents of the Investigation Division of the Department of Public Safety and peace officers described in paragraph (j) of subsection 1 of NRS 639.238 may remove any record required to be retained by state or federal law or regulation, including any prescription contained in the files of a practitioner, if the record in question will be used as evidence in a criminal action, civil action or an administrative proceeding, or contemplated action or proceeding. The person who removes a record pursuant to this section shall:

      1.  Affix the name and address of the practitioner to the back of the record;

      2.  Affix his initials, cause an agent of the practitioner to affix his initials and note the date of the removal of the record on the back of the record;

      3.  Affix the name of the agency for which he is removing the record to the back of the record;

      4.  Provide the practitioner with a receipt for the record; and

      5.  Return a photostatic copy of both sides of the record to the practitioner within 15 working days after the record is removed.

      Sec. 29.  NRS 639.241 is hereby amended to read as follows:

      639.241  1.  A hearing to determine whether the rights and privileges granted by any certificate, certification, license or permit issued by the Board should be revoked, suspended, limited or conditioned must be initiated by the filing of an accusation by the Board. The action must be entitled: The Nevada State Board of Pharmacy v. (insert the name of the party whose certificate, license or permit is involved), who must be designated “Respondent.”

      2.  The accusation is a written statement of the charges alleged and must set forth in ordinary and concise language the acts or omissions with which the respondent is charged to the end that the respondent will be able to prepare his defense. [It] The accusation must specify the statutes and regulations which the respondent is alleged to have violated, but must not consist merely of charges phrased in language of the statute or regulation. The accusation must be signed by the Executive Secretary of the Board acting in his official capacity.

      Sec. 30.  NRS 639.242 is hereby amended to read as follows:

      639.242  1.  After filing the accusation, the Executive Secretary of the Board shall cause a copy thereof, together with one copy of the Statement to Respondent and three copies of the form of the Notice of Defense, to be served on the respondent.

      2.  Service may be [either] by personal service or by first-class registered or certified mail addressed to the respondent at his last address of record, or by mail to his attorney of record. Proof of service [shall] must be retained and made a part of the case record.


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ê2003 Statutes of Nevada, Page 2292 (Chapter 392, SB 425)ê

 

      Sec. 31.  NRS 639.244 is hereby amended to read as follows:

      639.244  1.  The form for the Notice of Defense [shall] must be prepared and furnished by the Board and [shall] permit the respondent, by completing and signing the notice , to:

      (a) [Request a hearing;

      (b)] Object to the accusation as being incomplete and failing to set forth clearly the charges; and

      [(c)] (b) Deny or admit, in part or in whole, the violations alleged.

      2.  The Notice of Defense [shall] must be signed by the respondent or [by] his attorney under penalty of perjury. Failure to file a Notice of Defense [and request a hearing shall constitute] constitutes a waiver of the respondent’s right to a hearing, but the Board may [, in its discretion,] grant a hearing.

      Sec. 32.  NRS 639.245 is hereby amended to read as follows:

      639.245  Whenever a hearing has been granted by the Board, the Executive Secretary of the Board shall serve notice on the respondent of the time and place set for the hearing on the accusation. If the Board receives a report pursuant to subsection 5 of NRS 228.420, a hearing must be held within 30 days after receiving the report. Service may be effected in the same manner as provided in NRS 639.242.

      Sec. 33.  NRS 639.246 is hereby amended to read as follows:

      639.246  1.  The Executive Secretary of the Board shall issue subpoenas for the production of witnesses, documents or papers, in accordance with statutory provisions, at the request of any party to a hearing or for purposes of an investigation or other matter under inquiry by the Board.

      2.  Witnesses appearing pursuant to a subpoena must receive expenses and witness fees in the amounts and under the same circumstances as prescribed by law for witnesses in civil actions. The expenses and fees must be paid in full by the party at whose request the witness is subpoenaed.

      3.  Subpoenas must be served in the same manner as prescribed by law for the service of subpoenas in civil actions. If any person fails to comply with a subpoena within 10 days after its issuance, the President of the Board, or the Executive Secretary of the Board at the direction of the President, may petition the district court for an order of the court compelling compliance with the subpoena.

      4.  Upon such a petition, the court shall enter an order directing the person subpoenaed to appear before the court at a time and place to be fixed by the court in its order, the time to be not more than 10 days after the date of the order, and then and there to show cause why he has not complied with the subpoena. A certified copy of the order must be served upon the person.

      5.  If it appears to the court that the subpoena was regularly issued by the Board, the court shall enter an order compelling compliance with the subpoena. Failure to obey the order constitutes contempt of court.

      Sec. 34.  NRS 639.247 is hereby amended to read as follows:

      639.247  1.  Any hearing held for the purpose of suspending or revoking any certificate, certification, license or permit must be conducted publicly by the Board. The hearing must be presided over by a member of the Board or his designee and three members constitute a quorum. Any decision by the Board requires the concurrence of at least three members. The proceedings of the hearing must be reported or recorded by an electronic recording device, an official court reporter or another qualified person.


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      2.  The member of the Board or his designee presiding at the hearing or the Executive Secretary of the Board may administer oaths or affirmations. Continuances and adjournments may be ordered, or may be granted, by the member or his designee presiding, for cause shown and by orally notifying those persons present of the time and place at which the hearing will be continued.

      Sec. 35.  NRS 639.252 is hereby amended to read as follows:

      639.252  1.  If the respondent wishes to contest or appeal the decision of the Board, the order or any part thereof, he may, [prior to] not later than 10 days after the time the order becomes effective, apply in writing to the Board for a rehearing. [Such application shall] The application must set forth with particularity the part or parts of the decision or order to which the respondent objects and the basis of the objection.

      2.  The Executive Secretary of the Board shall, within 10 days after receipt of a written application for rehearing, notify the respondent and his attorney of record in writing, by registered or certified mail, of [its] his action, either granting or denying [such] the application. If the application is granted, the notice [shall] must contain the date, time and place of the rehearing . [, which date shall not be less than 30 days after the date of the notice.] The rehearing must be held at the next regularly scheduled meeting of the Board. Granting of the application by the [Board shall serve] Executive Secretary does not serve as an automatic stay of execution of the order pending conclusion of the rehearing.

      Sec. 36.  NRS 639.2555 is hereby amended to read as follows:

      639.2555  1.  If the Board 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 the holder of a certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.223, the Board shall deem the certificate of registration or license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Board receives a letter issued to the holder of the certificate of registration or license by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the certificate of registration or license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The Board shall reinstate a certificate of registration as a pharmacist, [an] intern pharmacist [or supportive personnel] , pharmaceutical technician or pharmaceutical technician in training or a license issued pursuant to NRS 639.233 that has been suspended by a district court pursuant to NRS 425.540 if the Board receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose certificate of registration or license was suspended stating that the person whose certificate of registration or license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 37.  NRS 639.256 is hereby amended to read as follows:

      639.256  A certificate, license or permit which has been suspended for a specified period of time [shall] must automatically be restored to good standing on the first day following the period of suspension. The Executive Secretary [,] of the Board, when notifying the respondent of the penalty imposed by the Board, shall inform the respondent of the date on which the certificate, license or permit will be so restored.


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ê2003 Statutes of Nevada, Page 2294 (Chapter 392, SB 425)ê

 

imposed by the Board, shall inform the respondent of the date on which the certificate, license or permit will be so restored.

      Secs. 38 and 39.  (Deleted by amendment.)

      Sec. 40.  NRS 453.1545 is hereby amended to read as follows:

      453.1545  1.  The Board and the Division shall cooperatively develop a computerized program to track each prescription for a controlled substance listed in schedule II, III or IV that is filled by a pharmacy that is registered with the Board [.] or that is dispensed by a practitioner who is registered with the Board. The program must:

      (a) Be designed to provide information regarding:

             (1) The inappropriate use by a patient of controlled substances listed in schedules II, III and IV to pharmacies, practitioners and appropriate state agencies to prevent the improper or illegal use of those controlled substances; and

             (2) Statistical data relating to the use of those controlled substances that is not specific to a particular patient.

      (b) Be administered by the Board, the Division, the Health Division of the Department of Human Resources and various practitioners, representatives of professional associations for practitioners, representatives of occupational licensing boards and prosecuting attorneys selected by the Board and the Division.

      (c) Not infringe on the legal use of a controlled substance for the management of severe or intractable pain.

      2.  The Board and the Division must have access to the program established pursuant to subsection 1 to identify any suspected fraudulent or illegal activity related to the dispensing of controlled substances.

      3.  The Board or the Division shall report any activity it reasonably suspects may be fraudulent or illegal to the appropriate law enforcement agency or occupational licensing board and provide the law enforcement agency or occupational licensing board with the relevant information obtained from the program for further investigation.

      4.  Information obtained from the program relating to a practitioner or a patient is confidential and, except as otherwise provided by this section, must not be disclosed to any person. That information must be disclosed:

      (a) Upon the request of a person about whom the information requested concerns or upon the request on his behalf by his attorney; or

      (b) Upon the lawful order of a court of competent jurisdiction.

      5.  The Board and the Division may apply for any available grants and accept any gifts, grants or donations to assist in developing and maintaining the program required by this section.

      Sec. 40.5.  NRS 453.375 is hereby amended to read as follows:

      453.375  A controlled substance may be possessed and administered by the following persons:

      1.  A practitioner.

      2.  A registered nurse licensed to practice professional nursing or licensed practical nurse, at the direction of a physician, physician assistant, dentist, podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.

      3.  An advanced emergency medical technician:

      (a) As authorized by regulation of:

             (1) The State Board of Health in a county whose population is less than 100,000; or


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             (2) A county or district board of health in a county whose population is 100,000 or more; and

      (b) In accordance with any applicable regulations of:

             (1) The State Board of Health in a county whose population is less than 100,000;

             (2) A county board of health in a county whose population is 100,000 or more; or

             (3) A district board of health created pursuant to NRS 439.370 in any county.

      4.  A respiratory therapist, at the direction of a physician or physician assistant.

      5.  A medical student, student in training to become a physician assistant or student nurse in the course of his studies at an approved college of medicine or school of professional or practical nursing, at the direction of a physician or physician assistant and:

      (a) In the presence of a physician, physician assistant or a registered nurse; or

      (b) Under the supervision of a physician, physician assistant or a registered nurse if the student is authorized by the college or school to administer the substance outside the presence of a physician, physician assistant or nurse.

A medical student or student nurse may administer a controlled substance in the presence or under the supervision of a registered nurse alone only if the circumstances are such that the registered nurse would be authorized to administer it personally.

      6.  An ultimate user or any person whom the ultimate user designates pursuant to a written agreement.

      7.  Any person designated by the head of a correctional institution.

      8.  A veterinary technician at the direction of his supervising veterinarian.

      9.  In accordance with applicable regulations of the State Board of Health, an employee of a residential facility for groups, as defined in NRS 449.017, pursuant to a written agreement entered into by the ultimate user.

      10.  In accordance with applicable regulations of the State Board of Pharmacy, an animal control officer, a wildlife biologist or an employee designated by a federal, state or local governmental agency whose duties include the control of domestic, wild and predatory animals.

      11.  A person who is enrolled in a training program to become an advanced emergency medical technician, respiratory therapist or veterinary technician if the person possesses and administers the controlled substance in the same manner and under the same conditions that apply, respectively, to an advanced emergency medical technician, respiratory therapist or veterinary technician who may possess and administer the controlled substance, and under the direct supervision of a person licensed or registered to perform the respective medical art or a supervisor of such a person.

      Sec. 41.  NRS 453.431 is hereby amended to read as follows:

      453.431  1.  A pharmacist shall not knowingly fill or refill any prescription for a controlled substance for use by a person other than the person for whom the prescription was originally issued.

      2.  A person shall not furnish a false name or address while attempting to obtain a controlled substance or a prescription for a controlled substance.


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A person prescribing, administering or dispensing a controlled substance may request proper identification from a person requesting controlled substances.

      3.  A pharmacist shall not fill a prescription for a controlled substance if the prescription shows evidence of alteration, erasure or addition, unless he obtains approval of the practitioner who issued the prescription.

      4.  A pharmacist shall not fill a prescription for a controlled substance classified in schedule II unless it is tendered on or before the 14th day after the date of issue. This subsection does not prohibit a practitioner from issuing a prescription on which he indicates that the prescription may not be filled until the date indicated on the prescription, which must not be later than 6 months after the date the prescription is issued.

      5.  A person who violates this section is guilty of a category C felony and shall be punished as provided in NRS 193.130.

      Sec. 41.5.  NRS 454.213 is hereby amended to read as follows:

      454.213  A drug or medicine referred to in NRS 454.181 to 454.371, inclusive, may be possessed and administered by:

      1.  A practitioner.

      2.  A physician assistant at the direction of his supervising physician or a licensed dental hygienist acting in the office of and under the supervision of a dentist.

      3.  Except as otherwise provided in subsection 4, a registered nurse licensed to practice professional nursing or licensed practical nurse, at the direction of a prescribing physician, physician assistant, dentist, podiatric physician or advanced practitioner of nursing, or pursuant to a chart order, for administration to a patient at another location.

      4.  In accordance with applicable regulations of the Board, a registered nurse licensed to practice professional nursing or licensed practical nurse who is:

      (a) Employed by a health care agency or health care facility that is authorized to provide emergency care, or to respond to the immediate needs of a patient, in the residence of the patient; and

      (b) Acting under the direction of the medical director of that agency or facility who works in this state.

      5.  An intermediate emergency medical technician or an advanced emergency medical technician, as authorized by regulation of the State Board of Pharmacy and in accordance with any applicable regulations of:

      (a) The State Board of Health in a county whose population is less than 100,000;

      (b) A county board of health in a county whose population is 100,000 or more; or

      (c) A district board of health created pursuant to NRS 439.370 in any county.

      6.  A respiratory therapist employed in a health care facility. The therapist may possess and administer respiratory products only at the direction of a physician.

      7.  A dialysis technician, under the direction or supervision of a physician or registered nurse only if the drug or medicine is used for the process of renal dialysis.

      8.  A medical student or student nurse in the course of his studies at an approved college of medicine or school of professional or practical nursing, at the direction of a physician and:


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      (a) In the presence of a physician or a registered nurse; or

      (b) Under the supervision of a physician or a registered nurse if the student is authorized by the college or school to administer the drug or medicine outside the presence of a physician or nurse.

A medical student or student nurse may administer a dangerous drug in the presence or under the supervision of a registered nurse alone only if the circumstances are such that the registered nurse would be authorized to administer it personally.

      9.  Any person designated by the head of a correctional institution.

      10.  An ultimate user or any person designated by the ultimate user pursuant to a written agreement.

      11.  A nuclear medicine technologist, at the direction of a physician and in accordance with any conditions established by regulation of the Board.

      12.  A radiologic technologist, at the direction of a physician and in accordance with any conditions established by regulation of the Board.

      13.  A chiropractic physician, but only if the drug or medicine is a topical drug used for cooling and stretching external tissue during therapeutic treatments.

      14.  A physical therapist, but only if the drug or medicine is a topical drug which is:

      (a) Used for cooling and stretching external tissue during therapeutic treatments; and

      (b) Prescribed by a licensed physician for:

             (1) Iontophoresis; or

             (2) The transmission of drugs through the skin using ultrasound.

      15.  In accordance with applicable regulations of the State Board of Health, an employee of a residential facility for groups, as defined in NRS 449.017, pursuant to a written agreement entered into by the ultimate user.

      16.  A veterinary technician at the direction of his supervising veterinarian.

      17.  In accordance with applicable regulations of the Board, a registered pharmacist who:

      (a) Is trained in and certified to carry out standards and practices for immunization programs;

      (b) Is authorized to administer immunizations pursuant to written protocols from a physician; and

      (c) Administers immunizations in compliance with the “Standards of Immunization Practices” recommended and approved by the United States Public Health Service Advisory Committee on Immunization Practices.

      18.  A person who is enrolled in a training program to become a physician assistant, dental hygienist, intermediate emergency medical technician, advanced emergency medical technician, respiratory therapist, dialysis technician, nuclear medicine technologist, radiologic technologist, physical therapist or veterinary technician if the person possesses and administers the drug or medicine in the same manner and under the same conditions that apply, respectively, to a physician assistant, dental hygienist, intermediate emergency medical technician, advanced emergency medical technician, respiratory therapist, dialysis technician, nuclear medicine technologist, radiologic technologist, physical therapist or veterinary technician who may possess and administer the drug or medicine, and under the direct supervision of a person licensed or registered to perform the respective medical art or a supervisor of such a person.


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registered to perform the respective medical art or a supervisor of such a person.

      Sec. 42.  NRS 689A.04045 is hereby amended to read as follows:

      689A.04045  1.  Except as otherwise provided in this section, a policy of health insurance which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the insurer for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The insurer from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the policy that is medically appropriate for the insured; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the policy.

      3.  Any provision of a policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 43.  NRS 689B.0368 is hereby amended to read as follows:

      689B.0368  1.  Except as otherwise provided in this section, a policy of group health insurance which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the insurer for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The insurer from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the policy that is medically appropriate for the insured; or


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             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the policy.

      3.  Any provision of a policy subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 44.  NRS 689C.168 is hereby amended to read as follows:

      689C.168  1.  Except as otherwise provided in this section, a health benefit plan which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the carrier for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The carrier from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the plan that is medically appropriate for the insured; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the plan.

      3.  Any provision of a health benefit plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 45.  NRS 695A.184 is hereby amended to read as follows:

      695A.184  1.  Except as otherwise provided in this section, a benefit contract which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the society for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The society from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;


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or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the benefit contract that is medically appropriate for the insured; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the benefit contract.

      3.  Any provision of a benefit contract subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 46.  NRS 695B.1905 is hereby amended to read as follows:

      695B.1905  1.  Except as otherwise provided in this section, a contract for hospital or medical services which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the insurer for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The insurer from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the contract that is medically appropriate for the insured; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the contract.

      3.  Any provision of a contract for hospital or medical services subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 47.  NRS 695C.1734 is hereby amended to read as follows:

      695C.1734  1.  Except as otherwise provided in this section, evidence of coverage which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the health maintenance organization or insurer for a medical condition of an enrollee and the enrollee’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the enrollee; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the enrollee.

      2.  The provisions of subsection 1 do not:


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      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The health maintenance organization or insurer from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the enrollee or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the evidence of coverage that is medically appropriate for the enrollee; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the evidence of coverage.

      3.  Any provision of an evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 48.  NRS 695F.156 is hereby amended to read as follows:

      695F.156  1.  Except as otherwise provided in this section, evidence of coverage which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the prepaid limited health service organization for a medical condition of an enrollee and the enrollee’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the enrollee; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the enrollee.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The organization from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the enrollee or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the evidence of coverage that is medically appropriate for the enrollee; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the evidence of coverage.

      3.  Any provision of an evidence of coverage subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 49.  NRS 695G.166 is hereby amended to read as follows:

      695G.166  1.  Except as otherwise provided in this section, a health care plan which provides coverage for prescription drugs must not limit or exclude coverage for a drug if the drug:

      (a) Had previously been approved for coverage by the managed care organization for a medical condition of an insured and the insured’s provider of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and


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of health care determines, after conducting a reasonable investigation, that none of the drugs which are otherwise currently approved for coverage are medically appropriate for the insured; and

      (b) Is appropriately prescribed and considered safe and effective for treating the medical condition of the insured.

      2.  The provisions of subsection 1 do not:

      (a) Apply to coverage for any drug that is prescribed for a use that is different from the use for which that drug has been approved for marketing by the Food and Drug Administration;

      (b) Prohibit:

             (1) The organization from charging a deductible, copayment or coinsurance for the provision of benefits for prescription drugs to the insured or from establishing, by contract, limitations on the maximum coverage for prescription drugs;

             (2) A provider of health care from prescribing another drug covered by the plan that is medically appropriate for the insured; or

             (3) The substitution of another drug pursuant to NRS 639.23286 or 639.2583 to [639.2599,] 639.2597, inclusive; or

      (c) Require any coverage for a drug after the term of the plan.

      3.  Any provision of a health care plan subject to the provisions of this chapter that is delivered, issued for delivery or renewed on or after October 1, 2001, which is in conflict with this section is void.

      Sec. 50.  NRS 639.0152, 639.133, 639.205, 639.2323 and 639.2599 are hereby repealed.

________

 


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ê2003 Statutes of Nevada, Page 2303ê

 

CHAPTER 393, SB 168

Senate Bill No. 168–Committee on Commerce and Labor

 

CHAPTER 393

 

AN ACT relating to industrial insurance; revising certain provisions governing the disclosure of information by the Division of Industrial Relations of the Department of Business and Industry relating to an uninsured employer or proof of industrial insurance coverage; authorizing a physician or chiropractor to delegate to a medical facility the duty to file a claim for compensation within a certain period after the physician or chiropractor provides treatment to an injured employee; authorizing the Administrator of the Division to impose administrative fines against such a medical facility under certain circumstances; authorizing a party who is aggrieved by certain determinations of the Division relating to the Uninsured Employers’ Claim Account to appeal those determinations to an appeals officer under certain circumstances; revising provisions governing recovery of payments by the Division; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 616A of NRS is hereby amended by adding thereto a new section to read as follows:

      “Medical facility” means a hospital, clinic or other facility that provides treatment to an employee who:

      1.  Is injured by an accident; or

      2.  Contracts an occupational disease,

arising out of and in the course of his employment.

      Sec. 2.  NRS 616A.025 is hereby amended to read as follows:

      616A.025  As used in chapters 616A to 616D, inclusive, of NRS, unless the context otherwise requires, the words and terms defined in NRS 616A.030 to 616A.360, inclusive, and section 1 of this act have the meanings ascribed to them in those sections.

      Sec. 3.  NRS 616B.012 is hereby amended to read as follows:

      616B.012  1.  Except as otherwise provided in this section and in NRS 616B.015, 616B.021 and 616C.205, information obtained from any insurer, employer or employee is confidential and may not be disclosed or be open to public inspection in any manner which would reveal the person’s identity.

      2.  Any claimant or his legal representative is entitled to information from the records of the insurer, to the extent necessary for the proper presentation of a claim in any proceeding under chapters 616A to 616D, inclusive, or chapter 617 of NRS.

      3.  The Division and Administrator are entitled to information from the records of the insurer which is necessary for the performance of their duties. The Administrator may, by regulation, prescribe the manner in which otherwise confidential information may be made available to:


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ê2003 Statutes of Nevada, Page 2304 (Chapter 393, SB 168)ê

 

      (a) Any agency of this or any other state charged with the administration or enforcement of laws relating to industrial insurance, unemployment compensation, public assistance or labor law and industrial relations;

      (b) Any state or local agency for the enforcement of child support;

      (c) The Internal Revenue Service of the Department of the Treasury;

      (d) The Department of Taxation; and

      (e) The State Contractors’ Board in the performance of its duties to enforce the provisions of chapter 624 of NRS.

Information obtained in connection with the administration of a program of industrial insurance may be made available to persons or agencies for purposes appropriate to the operation of a program of industrial insurance.

      4.  Upon written request made by a public officer of a local government, an insurer shall furnish from its records the name, address and place of employment of any person listed in its records. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by proper authority of the local government certifying that the request is made to allow the proper authority to enforce a law to recover a debt or obligation owed to the local government. The information obtained by the local government is confidential and may not be used or disclosed for any purpose other than the collection of a debt or obligation owed to [that] the local government. The insurer may charge a reasonable fee for the cost of providing the requested information.

      5.  To further a current criminal investigation, the chief executive officer of any law enforcement agency of this state may submit to the Administrator a written request for the name, address and place of employment of any person listed in the records of an insurer. The request must set forth the social security number of the person about whom the request is made and contain a statement signed by the chief executive officer certifying that the request is made to further a criminal investigation currently being conducted by the agency. Upon receipt of a request, the Administrator shall instruct the insurer to furnish the information requested. Upon receipt of such an instruction, the insurer shall furnish the information requested. The insurer may charge a reasonable fee to cover any related administrative expenses.

      6.  Upon request by the Department of Taxation, the Administrator shall provide:

      (a) Lists containing the names and addresses of employers; and

      (b) Other information concerning employers collected and maintained by the Administrator or the Division to carry out the purposes of chapters 616A to 616D, inclusive, or chapter 617 of NRS,

to the Department for its use in verifying returns for the business tax. The Administrator may charge a reasonable fee to cover any related administrative expenses.

      7.  Any person who, in violation of this section, discloses information obtained from files of claimants or policyholders or obtains a list of claimants or policyholders under chapters 616A to 616D, inclusive, or chapter 617 of NRS and uses or permits the use of the list for any political purposes, is guilty of a gross misdemeanor.

      8.  All letters, reports or communications of any kind, oral or written, from the insurer, or any of its agents, representatives or employees are privileged and must not be the subject matter or basis for any lawsuit if the letter, report or communication is written, sent, delivered or prepared pursuant to the requirements of chapters 616A to 616D, inclusive, or chapter 617 of NRS.


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ê2003 Statutes of Nevada, Page 2305 (Chapter 393, SB 168)ê

 

pursuant to the requirements of chapters 616A to 616D, inclusive, or chapter 617 of NRS.

      9.  The provisions of this section do not prohibit the Administrator or Division from disclosing any nonproprietary information relating to an uninsured employer or proof of industrial insurance.

      Sec. 4.  NRS 616C.040 is hereby amended to read as follows:

      616C.040  1.  [A] Except as otherwise provided in this section, a treating physician or chiropractor shall, within 3 working days after [he first treats] first providing treatment to an injured employee for a particular injury, complete and file a claim for compensation with the employer of the injured employee and the employer’s insurer . [, a claim for compensation.] If the employer is a self-insured employer, the treating physician or chiropractor shall file the claim for compensation with the employer’s third-party administrator. If the physician or chiropractor files the claim for compensation by electronic transmission, [he] the physician or chiropractor shall, upon request, mail to the insurer or third-party administrator the form that contains the original signatures of the injured employee and the physician or chiropractor. The form must be mailed within 7 days after receiving such a request.

      2.  A physician or chiropractor who has a duty to file a claim for compensation pursuant to subsection 1 may delegate the duty to a medical facility. If the physician or chiropractor delegates the duty to a medical facility:

      (a) The medical facility must comply with the filing requirements set forth in this section; and

      (b) The delegation must be in writing and signed by:

             (1) The physician or chiropractor; and

             (2) An authorized representative of the medical facility.

      3.  A claim for compensation required by subsection 1 must be filed on a form prescribed by the Administrator.

      [3.] 4.  If a claim for compensation is accompanied by a certificate of disability, the certificate must include a description of any limitation or restrictions on the injured employee’s ability to work.

      [4.] 5.  Each physician, chiropractor and medical facility that treats injured employees, each insurer, third-party administrator and employer, and the Division shall maintain at their offices a sufficient supply of the forms prescribed by the Administrator for filing a claim for compensation.

      [5.] 6.  The Administrator [shall] may impose an administrative fine of not more than $1,000 [on a physician or chiropractor] for each violation of subsection 1 [.] on:

      (a) A physician or chiropractor; or

      (b) A medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to this section.

      Sec. 5.  NRS 616C.045 is hereby amended to read as follows:

      616C.045  1.  Except as otherwise provided in NRS 616B.727, within 6 working days after the receipt of a claim for compensation from a physician or chiropractor, or a medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to NRS 616C.040, an employer shall complete and file with his insurer or third-party administrator an employer’s report of industrial injury or occupational disease.

      2.  The report must:


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ê2003 Statutes of Nevada, Page 2306 (Chapter 393, SB 168)ê

 

      (a) Be filed on a form prescribed by the Administrator;

      (b) Be signed by the employer or his designee;

      (c) Contain specific answers to all questions required by the regulations of the Administrator; and

      (d) Be accompanied by a statement of the wages of the employee if the claim for compensation received from the treating physician or chiropractor , or a medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to NRS 616C.040, indicates that the injured employee is expected to be off work for 5 days or more.

      3.  An employer who files the report required by subsection 1 by electronic transmission shall, upon request, mail to the insurer or third-party administrator the form that contains the original signature of the employer or his designee. The form must be mailed within 7 days after receiving such a request.

      4.  The Administrator shall impose an administrative fine of not more than $1,000 on an employer for each violation of this section.

      Sec. 6.  NRS 616C.220 is hereby amended to read as follows:

      616C.220  1.  The Division shall designate one:

      (a) Third-party administrator who has a valid certificate issued by the Commissioner pursuant to NRS 683A.085; or

      (b) Insurer, other than a self-insured employer or association of self-insured public or private employers,

to administer claims against the Uninsured Employers’ Claim Account. The designation must be made pursuant to reasonable competitive bidding procedures established by the Administrator.

      2.  Except as otherwise provided in this subsection, an employee may receive compensation from the Uninsured Employers’ Claim Account if:

      (a) He was hired in this state or he is regularly employed in this state;

      (b) He suffers an accident or injury which arises out of and in the course of his employment:

             (1) In this state; or

             (2) While on temporary assignment outside the State for [a period of] not more than 12 months;

      (c) He files a claim for compensation with the Division; and

      (d) He makes an irrevocable assignment to the Division of a right to be subrogated to the rights of the injured employee pursuant to NRS 616C.215.

An employee who suffers an accident or injury while on temporary assignment outside the State is not eligible to receive compensation from the Uninsured Employers’ Claim Account unless he has been denied workers’ compensation in the state in which the accident or injury occurred.

      3.  If the Division receives a claim pursuant to subsection 2, the Division shall immediately notify the employer of the claim.

      4.  For the purposes of this section, the employer has the burden of proving that he provided mandatory industrial insurance coverage for the employee or that he was not required to maintain industrial insurance for the employee.

      5.  Any employer who has failed to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS is liable for all payments made on his behalf, including any benefits, administrative costs or attorney’s fees paid from the Uninsured Employers’ Claim Account or incurred by the Division.


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ê2003 Statutes of Nevada, Page 2307 (Chapter 393, SB 168)ê

 

      6.  The Division:

      (a) May recover from the employer the payments made by the Division that are described in subsection 5 and any accrued interest by bringing a civil action in [district court.] a court of competent jurisdiction.

      (b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the employee’s injury.

      (c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.

      (d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.

      7.  The Division shall:

      (a) Determine whether the employer was insured within 30 days after receiving notice of the claim from the employee.

      (b) Assign the claim to the third-party administrator or insurer designated pursuant to subsection 1 for administration and payment of compensation.

Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the injured employee, the named employer and the Division of its determination.

      8.  Upon demonstration of the:

      (a) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or

      (b) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,

the Division shall authorize payment from the Uninsured Employers’ Claim Account.

      9.  Any party aggrieved by a determination [regarding the administration of an assigned claim or a determination] made by the Division [or by the designated third-party administrator or insurer] regarding the assignment of any claim made pursuant to this section may appeal that determination by filing a notice of appeal with an appeals officer within [60] 30 days after the determination is rendered . The provisions of NRS 616C.345 to 616C.385, inclusive, apply to an appeal filed pursuant to this subsection.

      10.  Any party aggrieved by a determination to accept or to deny any claim made pursuant to this section or by a determination to pay or to deny the payment of compensation regarding any claim made pursuant to this section may appeal that determination, within 70 days after the determination is rendered, to the Hearings Division of the Department of Administration in the manner provided by NRS 616C.305 and 616C.315 . [to 616C.385, inclusive.

      10.] 11.  All insurers shall bear a proportionate amount of a claim made pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.

      [11.] 12.  An uninsured employer is liable for the interest on any amount paid on his claims from the Uninsured Employers’ Claim Account. The interest must be calculated at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the Account until payment is received by the Division from the employer.


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ê2003 Statutes of Nevada, Page 2308 (Chapter 393, SB 168)ê

 

preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the Account until payment is received by the Division from the employer.

      [12.] 13.  Attorney’s fees recoverable by the Division pursuant to this section must be:

      (a) If a private attorney is retained by the Division, paid at the usual and customary rate for that attorney.

      (b) If the attorney is an employee of the Division, paid at the rate established by regulations adopted by the Division.

Any money collected must be deposited to the Uninsured Employers’ Claim Account.

      [13.] 14.  In addition to any other liabilities provided for in this section, the Administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of chapters 616A to 616D, inclusive, of NRS.

      Sec. 7.  NRS 616C.340 is hereby amended to read as follows:

      616C.340  1.  The Governor shall appoint one or more appeals officers to conduct hearings [in contested claims for compensation pursuant to NRS 616C.360.] and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS. Each appeals officer shall hold office for 2 years [from] after the date of his appointment and until his successor is appointed and has qualified. Each appeals officer is entitled to receive an annual salary in an amount provided by law and is in the unclassified service of the State.

      2.  Each appeals officer must be an attorney who has been licensed to practice law before all the courts of this state for at least 2 years. Except as otherwise provided in NRS 7.065, an appeals officer shall not engage in the private practice of law.

      3.  If an appeals officer determines that he has a personal interest or a conflict of interest, directly or indirectly, in any case which is before him, he shall disqualify himself from hearing the case.

      4.  The Governor may appoint one or more special appeals officers to conduct hearings [in contested claims for compensation pursuant to NRS 616C.360.] and appeals as required pursuant to chapters 616A to 617, inclusive, of NRS. The Governor shall not appoint an attorney who represents persons in actions related to claims for compensation to serve as a special appeals officer.

      5.  A special appeals officer appointed pursuant to subsection 4 is vested with the same powers as a regular appeals officer. A special appeals officer may hear any case in which a regular appeals officer has a conflict, or any case assigned to him by the Senior Appeals Officer to assist with a backlog of cases. A special appeals officer is entitled to be paid at an hourly rate, as determined by the Department of Administration.

      6.  The decision of an appeals officer is the final and binding administrative determination of a claim for compensation under chapters 616A to 616D, inclusive, or chapter 617 of NRS, and the whole record consists of all evidence taken at the hearing before the appeals officer and any findings of fact and conclusions of law based thereon.

      Sec. 8.  NRS 616C.345 is hereby amended to read as follows:

      616C.345  1.  Any party aggrieved by a decision of the hearing officer relating to a claim for compensation may appeal from the decision by filing a notice of appeal with an appeals officer within 30 days after the date of the decision.


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ê2003 Statutes of Nevada, Page 2309 (Chapter 393, SB 168)ê

 

notice of appeal with an appeals officer within 30 days after the date of the decision.

      2.  If a dispute is required to be submitted to a procedure for resolving complaints pursuant to NRS 616C.305 and:

      (a) A final determination was rendered pursuant to that procedure; or

      (b) The dispute was not resolved pursuant to that procedure within 14 days after it was submitted,

any party to the dispute may file a notice of appeal within 70 days after the date on which the final determination was mailed to the employee, or his dependent, or the unanswered request for resolution was submitted. Failure to render a written determination within 30 days after receipt of such a request shall be deemed by the appeals officer to be a denial of the request.

      3.  Except as otherwise provided in NRS 616C.380, the filing of a notice of appeal does not automatically stay the enforcement of the decision of a hearing officer or a determination rendered pursuant to NRS 616C.305. The appeals officer may order a stay, when appropriate, upon the application of a party. If such an application is submitted, the decision is automatically stayed until a determination is made concerning the application. A determination on the application must be made within 30 days after the filing of the application. If a stay is not granted by the officer after reviewing the application, the decision must be complied with within 10 days after the date of the refusal to grant a stay.

      4.  Except as otherwise provided in this subsection, [the appeals officer shall,] within 10 days after receiving a notice of appeal pursuant to this section or NRS 616C.220 or 617.401, or within 10 days after receiving a notice of a contested claim pursuant to subsection 5 of NRS 616C.315, the appeals officer shall schedule a hearing on the merits of the appeal or contested claim for a date and time within 90 days after his receipt of the notice and give notice by mail or by personal service to all parties to the matter and their attorneys or agents at least 30 days before the date and time scheduled. A request to schedule the hearing for a date and time which is:

      (a) Within 60 days after the receipt of the notice of appeal or contested claim; or

      (b) More than 90 days after the receipt of the notice or claim,

may be submitted to the appeals officer only if all parties to the appeal or contested claim agree to the request.

      5.  An appeal or contested claim may be continued upon written stipulation of all parties, or upon good cause shown.

      6.  Failure to file a notice of appeal within the period specified in subsection 1 or 2 may be excused if the party aggrieved shows by a preponderance of the evidence that he did not receive the notice of the determination and the forms necessary to appeal the determination. The claimant, employer or insurer shall notify the hearing officer of a change of address.

      Sec. 9.  (Deleted by amendment.)

      Sec. 10.  NRS 617.352 is hereby amended to read as follows:

      617.352  1.  [A] Except as otherwise provided in this section, a treating physician or chiropractor shall, within 3 working days after [he first treats] first providing treatment to an employee who has incurred an occupational disease, complete and file a claim for compensation with the employer of the employee and the employer’s insurer . [, a claim for compensation.] If the employer is a self-insured employer, the treating physician or chiropractor shall file the claim for compensation with the employer’s third-party administrator.


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ê2003 Statutes of Nevada, Page 2310 (Chapter 393, SB 168)ê

 

physician or chiropractor shall file the claim for compensation with the employer’s third-party administrator. If the physician or chiropractor files the claim for compensation by electronic transmission, [he] the physician or chiropractor shall, upon request, mail to the insurer or third-party administrator the form that contains the original signatures of the employee and the physician or chiropractor. The form must be mailed within 7 days after receiving such a request.

      2.  A physician or chiropractor who has a duty to file a claim for compensation pursuant to subsection 1 may delegate the duty to a medical facility. If the physician or chiropractor delegates the duty to a medical facility:

      (a) The medical facility must comply with the filing requirements set forth in this section; and

      (b) The delegation must be in writing and signed by:

             (1) The physician or chiropractor; and

             (2) An authorized representative of the medical facility.

      3.  A claim for compensation required by subsection 1 must be filed on a form prescribed by the Administrator.

      [3.] 4.  If a claim for compensation is accompanied by a certificate of disability, the certificate must include a description of any limitation or restrictions on the injured employee’s ability to work.

      [4.] 5.  Each physician, chiropractor and medical facility that treats injured employees who have incurred occupational diseases, each insurer, third-party administrator and employer, and the Division shall maintain at their offices a sufficient supply of the forms prescribed by the Administrator for filing a claim for compensation.

      [5.] 6.  The Administrator [shall] may impose an administrative fine of not more than $1,000 [against a physician or chiropractor] for each violation of subsection 1 [.] on:

      (a) A physician or chiropractor; or

      (b) A medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to this section.

      Sec. 11.  NRS 617.354 is hereby amended to read as follows:

      617.354  1.  Except as otherwise provided in NRS 616B.727, within 6 working days after the receipt of a claim for compensation from a physician or chiropractor, or a medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to NRS 617.352, an employer shall complete and file with his insurer or third-party administrator an employer’s report of industrial injury or occupational disease.

      2.  The report must:

      (a) Be filed on a form prescribed by the Administrator;

      (b) Be signed by the employer or his designee;

      (c) Contain specific answers to all questions required by the regulations of the Department; and

      (d) Be accompanied by a statement of the wages of the employee if the claim for compensation received from the treating physician or chiropractor , or a medical facility if the duty to file the claim for compensation has been delegated to the medical facility pursuant to NRS 617.352, indicates that the employee is expected to be off work for 5 days or more.

      3.  An employer who files the report required by subsection 1 by electronic transmission shall, upon request, mail to the insurer or third-party administrator the form that contains the original signature of the employer or his designee.


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ê2003 Statutes of Nevada, Page 2311 (Chapter 393, SB 168)ê

 

administrator the form that contains the original signature of the employer or his designee. The form must be mailed within 7 days after receiving such a request.

      4.  The Administrator shall impose an administrative fine of not more than $1,000 against an employer for each violation of this section.

      Sec. 12.  NRS 617.401 is hereby amended to read as follows:

      617.401  1.  The Division shall designate one:

      (a) Third-party administrator who has a valid certificate issued by the Commissioner pursuant to NRS 683A.085; or

      (b) Insurer, other than a self-insured employer or association of self-insured public or private employers,

to administer claims against the Uninsured Employers’ Claim Account. The designation must be made pursuant to reasonable competitive bidding procedures established by the Administrator.

      2.  Except as otherwise provided in this subsection, an employee may receive compensation from the Uninsured Employers’ Claim Account if:

      (a) He was hired in this state or he is regularly employed in this state;

      (b) He contracts an occupational disease that arose out of and in the course of employment:

             (1) In this state; or

             (2) While on temporary assignment outside the State for [a period of] not more than 12 months;

      (c) He files a claim for compensation with the Division; and

      (d) He makes an irrevocable assignment to the Division of a right to be subrogated to the rights of the employee pursuant to NRS 616C.215.

An employee who contracts an occupational disease that arose out of and in the course of employment while on temporary assignment outside the State is not entitled to receive compensation from the Uninsured Employers’ Claim Account unless he has been denied workers’ compensation in the state in which the disease was contracted.

      3.  If the Division receives a claim pursuant to subsection 2, the Division shall immediately notify the employer of the claim.

      4.  For the purposes of this section, the employer has the burden of proving that he provided mandatory coverage for occupational diseases for the employee or that he was not required to maintain industrial insurance for the employee.

      5.  Any employer who has failed to provide mandatory coverage required by the provisions of this chapter is liable for all payments made on his behalf, including, but not limited to, any benefits, administrative costs or attorney’s fees paid from the Uninsured Employers’ Claim Account or incurred by the Division.

      6.  The Division:

      (a) May recover from the employer the payments made by the Division that are described in subsection 5 and any accrued interest by bringing a civil action in [district court.] a court of competent jurisdiction.

      (b) In any civil action brought against the employer, is not required to prove that negligent conduct by the employer was the cause of the occupational disease.

      (c) May enter into a contract with any person to assist in the collection of any liability of an uninsured employer.

      (d) In lieu of a civil action, may enter into an agreement or settlement regarding the collection of any liability of an uninsured employer.


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ê2003 Statutes of Nevada, Page 2312 (Chapter 393, SB 168)ê

 

      7.  The Division shall:

      (a) Determine whether the employer was insured within 30 days after receiving the claim from the employee.

      (b) Assign the claim to the third-party administrator or insurer designated pursuant to subsection 1 for administration and payment of compensation.

Upon determining whether the claim is accepted or denied, the designated third-party administrator or insurer shall notify the injured employee, the named employer and the Division of its determination.

      8.  Upon demonstration of the:

      (a) Costs incurred by the designated third-party administrator or insurer to administer the claim or pay compensation to the injured employee; or

      (b) Amount that the designated third-party administrator or insurer will pay for administrative expenses or compensation to the injured employee and that such amounts are justified by the circumstances of the claim,

the Division shall authorize payment from the Uninsured Employers’ Claim Account.

      9.  Any party aggrieved by a determination [regarding the administration of an assigned claim or a determination] made by the Division [or by the designated third-party administrator or insurer] regarding the assignment of any claim made pursuant to this section may appeal that determination by filing a notice of appeal with an appeals officer within [60] 30 days after the determination is rendered . The provisions of NRS 616C.345 to 616C.385, inclusive, apply to an appeal filed pursuant to this subsection.

      10.  Any party aggrieved by a determination to accept or to deny any claim made pursuant to this section or by a determination to pay or to deny the payment of compensation regarding any claim made pursuant to this section may appeal that determination, within 70 days after the determination is rendered, to the Hearings Division of the Department of Administration in the manner provided by NRS 616C.305 and 616C.315 . [to 616C.385, inclusive.

      10.] 11.  All insurers shall bear a proportionate amount of a claim made pursuant to this chapter, and are entitled to a proportionate amount of any collection made pursuant to this section as an offset against future liabilities.

      [11.] 12.  An uninsured employer is liable for the interest on any amount paid on his claims from the Uninsured Employers’ Claim Account. The interest must be calculated at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the claim, plus 3 percent, compounded monthly, from the date the claim is paid from the Account until payment is received by the Division from the employer.

      [12.] 13.  Attorney’s fees recoverable by the Division pursuant to this section must be:

      (a) If a private attorney is retained by the Division, paid at the usual and customary rate for that attorney.

      (b) If the attorney is an employee of the Division, paid at the rate established by regulations adopted by the Division.

Any money collected must be deposited to the Uninsured Employers’ Claim Account.


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ê2003 Statutes of Nevada, Page 2313 (Chapter 393, SB 168)ê

 

      [13.] 14.  In addition to any other liabilities provided for in this section, the Administrator may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by the provisions of this chapter.

      Sec. 13.  This act becomes effective on July 1, 2003.

________

 

CHAPTER 394, SB 485

Senate Bill No. 485–Committee on Natural Resources

 

CHAPTER 394

 

AN ACT relating to measurement standards; making various changes to provisions governing weights and measures; authorizing the State Sealer of Weights and Measures to adopt measurement standards by regulation; creating a Division of Measurement Standards within the State Department of Agriculture and prescribing its duties; providing for the licensure of public weighmasters; providing for the establishment of certain fees; authorizing the State Sealer of Weights and Measures to establish civil penalties for certain violations; prohibiting certain acts; providing a penalty; and providing other matters properly relating thereto.

 

[Approved: June 9, 2003]

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 581 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 27, inclusive, of this act.

      Sec. 2.  “Bulk sale” means the sale of commodities when the quantity is determined at the time of sale.

      Sec. 3.  “Commercial weighing and measuring equipment” means weights and measures, and weighing and measuring devices, used commercially in:

      1.  Establishing the size, quantity, extent, area or measurement of quantities, things, produce or articles for distribution or consumption, purchase, offer or submission for sale, hire or award; or

      2.  Computing any basic charge or payment for services rendered on the basis of weight or measure.

      Sec. 4.  (Deleted by amendment.)

      Sec. 5.  “Division” means the Division of Measurement Standards of the State Department of Agriculture.

      Sec. 6.  “Net mass” or “net weight” means the mass or weight of a commodity, excluding any materials, substances or items not considered to be part of the commodity. The terms do not include materials, substances or any other items not considered to be a part of the commodity, including, without limitation, containers, conveyances, bags, wrappers, packaging materials, labels, individual piece coverings, decorative accompaniments and coupons, except that, depending on the service to be rendered, shipping and packaging material may be included in the weight of the package.


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      Sec. 7.  “Primary standards” means the physical standards of the State of Nevada that serve as the legal reference from which all other standards for weights and measures are derived.

      Sec. 8.  “Random weight package” means a package that is one package of a lot, shipment or delivery of packages of the same commodity with no fixed pattern of weights.

      Sec. 9.  “Secondary standards” means the physical standards that are traceable to the primary standards through comparisons or by using acceptable laboratory procedures, and that are used in the enforcement of statutes and regulations relating to weights and measures.

      Sec. 10.  “Standard package” means a package that is one of a lot, shipment or delivery of packages of the same commodity with declarations of identical net contents, including, without limitation, 1-liter bottles or 12-fluid-ounce cans of carbonated soda, 500-gram or 5-pound bags of sugar, or 100-meter or 300-foot packages of rope.

      Sec. 11.  “Weight” means:

      1.  Net weight; or

      2.  If the commodity is sold by drained weight, net drained wet.

      Sec. 12.  “Weights and measures” means all weights and measures of every kind, and includes, without limitation, instruments and devices for weighing and measuring, and appliances and accessories associated with such instruments and devices.

      Sec. 13.  The State Sealer of Weights and Measures shall:

      1.  Ensure that weights and measures used in commercial services within this state are suitable for their intended use, are properly installed and accurate, and are so maintained by their owner or user.

      2.  Prevent unfair or deceptive dealing by weight or measure in any commodity or service advertised, packaged, sold or purchased within this state.

      3.  Make available to all users of physical standards, or of weighing and measuring equipment, the precision calibration and related metrological certification capabilities of the facilities of the Division.

      4.  Promote uniformity, to the extent practicable and desirable, between the requirements relating to weights and measures of this state and similar requirements of other states and federal agencies.

      5.  Adopt regulations establishing such requirements relating to weights and measures as are necessary to ensure equity between buyers and sellers, and thereby encourage desirable economic growth while protecting consumers.

      Sec. 14.  The State Sealer of Weights and Measures shall:

      1.  Adopt regulations establishing such primary standards and secondary standards for weights and measures for use in this state as he determines appropriate.

      2.  Maintain traceability of the state standards to the national standards of the National Institute of Standards and Technology.

      3.  Enforce the provisions of this chapter.

      4.  Adopt other reasonable regulations for the enforcement of this chapter.

      5.  Establish requirements for:

      (a) Labeling;

      (b) The presentation of information relating to cost per unit;


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      (c) Standards of weight, measure or count, and reasonable standards of fill, for any packaged commodity; and

      (d) Information relating to open dating of packaged food.

      6.  Grant such exemptions from the provisions of this chapter or any regulations adopted pursuant thereto as he determines appropriate to the maintenance of good commercial practices within this state.

      7.  Conduct investigations to ensure compliance with this chapter.

      8.  Delegate to appropriate personnel any of the responsibilities of the Division as needed for the proper administration of the Division.

      9.  Adopt regulations establishing a schedule of civil penalties for any violation of section 23 of this act.

      10.  Inspect and test commercial weights and measures that are kept, offered or exposed for sale.

      11.  Inspect and test, to ascertain if they are correct, weights and measures that are commercially used to:

      (a) Determine the weight, measure or count of commodities or things that are sold, or offered or exposed for sale, on the basis of weight, measure or count; or

      (b) Compute the basic charge or payment for services rendered on the basis of weight, measure or count.

      12.  Test all weights and measures used in checking the receipt or disbursement of supplies by entities funded by legislative appropriations.

      13.  Approve for use such commercial weights and measures as he determines are correct and appropriate. The State Sealer of Weights and Measures may mark such commercial weights and measures. The State Sealer of Weights and Measures shall reject and order to be corrected, replaced or removed any commercial weights and measures found to be incorrect. Weights and measures that have been rejected may be seized if they are not corrected within the time specified or if they are used or disposed of in a manner not specifically authorized. The State Sealer of Weights and Measures shall remove from service and may seize weights and measures found to be incorrect that are not capable of being made correct.

      14.  Weigh, measure or inspect packaged commodities that are kept, offered or exposed for sale, sold or in the process of delivery to determine whether the packaged commodities contain the amounts represented and whether they are kept, offered or exposed for sale in accordance with this chapter or the regulations adopted pursuant thereto. In carrying out the provisions of this subsection, the State Sealer of Weights and Measures shall employ recognized sampling procedures, including, without limitation, sampling procedures adopted by the National Conference on Weights and Measures.

      15.  Adopt regulations prescribing the appropriate term or unit of weight or measure to be used whenever the State Sealer of Weights and Measures determines that an existing practice of declaring the quantity of a commodity, or of setting charges for a service by weight, measure, numerical count or time, or any combination thereof, does not facilitate value comparisons by consumers or may confuse consumers.

      16.  Allow reasonable variations from the stated quantity of contents that entered intrastate commerce, which must include those variations caused by loss or gain of moisture during the course of good distribution practices or by unavoidable deviations in good manufacturing practices.


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ê2003 Statutes of Nevada, Page 2316 (Chapter 394, SB 485)ê

 

      17.  Provide for the training of persons employed by any governmental entity within this state, including, without limitation, state, county and municipal personnel, who enforce the provisions of this chapter and chapter 582 of NRS, and any regulations adopted pursuant thereto, relating to weights and measures. The State Sealer of Weights and Measures may establish by regulation minimum training and performance requirements which must be met by all such persons.

      18.  Verify advertised prices, price representations and point-of-sale systems, as necessary, to determine the accuracy of prices and computations and the correct use of the equipment, and, if such systems utilize scanning or coding means in lieu of manual entry, the accuracy of prices printed or recalled from a database. In carrying out the provisions of this subsection, the State Sealer of Weights and Measures shall:

      (a) Employ recognized procedures for making such verifications and determinations of accuracy, including, without limitation, any appropriate procedures designated by the National Institute of Standards and Technology;

      (b) Adopt regulations and issue orders regarding standards for the accuracy of advertised prices and automated systems for retail price charging, or point-of-sale systems, and for the enforcement of those standards; and

      (c) Conduct investigations to ensure compliance with those standards.

      Sec. 15.  The State Sealer of Weights and Measures may, if necessary for the enforcement of this chapter and any regulations adopted pursuant thereto:

      1.  Enter any commercial premises during normal business hours upon presenting his credentials.

      2.  Issue stop-use, hold and removal orders for any weights and measures commercially used, and issue stop-sale, hold and removal orders for any packaged commodities or bulk sale commodities that are kept, offered or exposed for sale.

      3.  Seize, for use as evidence, without formal warrant, any incorrect or unapproved weight, measure, package or commodity found to be used, retained, offered or exposed for sale, or sold in violation of any provision of this chapter or any regulation adopted pursuant thereto.

      4.  Stop any commercial vehicle and, after presentation of his credentials, inspect the contents of the vehicle, require the person in charge of the vehicle to produce any documents in his possession concerning the contents of the vehicle, and require that person to proceed with the vehicle to some specified place for inspection.

      Sec. 16.  A person shall not:

      1.  Sell or offer or expose for sale a quantity less than the quantity represented;

      2.  Take more than the quantity represented when, as a buyer, he furnishes the weight or measure by which the quantity is determined; or

      3.  Represent the quantity in any manner calculated or tending to mislead, or in any way to deceive, another person.

      Sec. 17.  A person shall not:

      1.  Misrepresent the price of any commodity or service sold, or offered, exposed or advertised for sale, by weight, measure or count; or

      2.  Misrepresent the price of such a commodity for service in any manner calculated or tending to mislead or in any way to deceive a person.


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      Sec. 18.  1.  Except as otherwise provided by regulation or order of the State Sealer of Weights and Measures or by established trade custom and practice recognized by regulation or order of the State Sealer of Weights and Measures:

      (a) Commodities in liquid form must be sold by liquid measure or by weight; and

      (b) Commodities not in liquid form must be sold by weight, by measure or by count.

      2.  The method of sale of a commodity must provide such accurate and adequate information concerning quantity as will enable the buyer to make price and quantity comparisons.

      Sec. 19.  All bulk sales in which the buyer and seller are not both present to witness the measurement, all bulk deliveries of heating fuel and all other bulk sales specified by regulation of the State Sealer of Weights and Measures must be accompanied by a delivery ticket containing:

      1.  The name and address of the buyer and seller;

      2.  The date delivered;

      3.  The quantity delivered and the quantity upon which the price is based, if the quantity upon which the price is based differs from the quantity delivered;

      4.  The unit price, unless otherwise agreed upon by both the buyer and seller;

      5.  The identity of the commodity, in the most descriptive terms commercially practicable, including any representation about the quality of the commodity made in connection with the sale; and

      6.  Where commodities are bought from bulk but delivered in packages, the count of individually wrapped packages if more than one individually wrapped package is being sold.

      Sec. 20.  1.  Except as otherwise provided in this chapter, any random weight package or standard package kept, offered or exposed for sale, must bear on the outside of the package a definite, plain and conspicuous declaration of:

      (a) The identity of the commodity in the package, unless the commodity is a food, other than meat or poultry, that was repackaged in a retail establishment and displayed to the purchaser where:

             (1) The interstate labeling for the repackaged food is clearly in view or the food has a counter card, sign or other appropriate device bearing prominently and conspicuously the common or usual name of the food; or

             (2) The common or usual name of the food is clearly revealed by its appearance;

      (b) The quantity of contents of the package, in terms of weight, measure or count; and

      (c) If the package is kept, offered or exposed for sale, or sold, in any place other than on the premises where packed, the name and place of business of the manufacturer, packer or distributor.

      2.  The State Sealer of Weights and Measures may exempt any type of random weight package or standard package, or commodity from the provisions of this section by regulation.

      Sec. 21.  In addition to the declarations required by section 20 of this act, each random weight package of the same commodity must, at the time such packages are offered or exposed for sale at retail, bear on the outside of the package a plain and conspicuous declaration of the price per kilogram or pound and the total selling price of the package.


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ê2003 Statutes of Nevada, Page 2318 (Chapter 394, SB 485)ê

 

of the package a plain and conspicuous declaration of the price per kilogram or pound and the total selling price of the package.

      Sec. 22.  If a packaged commodity is advertised in any manner with the retail price stated, a declaration of quantity as required by this chapter or any regulation adopted pursuant thereto must appear on the package in such a manner as to be closely and conspicuously associated with the retail price of the packaged commodity.

      Sec. 23.  1.  A person shall not:

      (a) Use in commerce, or have in his possession for use in commerce, any incorrect weight or measure;

      (b) Sell or offer for sale for use in commerce any incorrect weight or measure;

      (c) Remove any tag, seal or mark from any weight or measure without specific written authorization from the proper authority;

      (d) Hinder or obstruct any inspector of the Division in the performance of his duties; or

      (e) Violate any provisions of this chapter or any regulation adopted pursuant thereto.

      2.  A person who violates any provision of this section is, in addition to any criminal penalty that may be imposed, subject to a civil penalty in accordance with the schedule of civil penalties established by the State Sealer of Weights and Measures pursuant to subsection 9 of section 14 of this act.

      Sec. 24.  1.  A person subject to a civil penalty may request an administrative hearing within 10 days after receipt of the notice of the civil penalty. The State Sealer of Weights and Measures or his designee shall conduct the hearing after giving appropriate notice to the respondent. The decision of the State Sealer of Weights and Measures or his designee is subject to appropriate judicial review.

      2.  If the respondent has exhausted his administrative appeals and the civil penalty has been upheld, he shall pay the civil penalty:

      (a) If no petition for judicial review is filed pursuant to NRS 233B.130, within 40 days after the final decision of the State Sealer of Weights and Measures; or

      (b) If a petition for judicial review is filed pursuant to NRS 233B.130 and the civil penalty is upheld, within 10 days after the effective date of the final decision of the court.

      3.  If the respondent fails to pay the penalty, a civil action may be brought by the State Sealer of Weights and Measures in any court of competent jurisdiction to recover the civil penalty. All civil penalties collected pursuant to this chapter must be deposited with the State Treasurer for credit to the State General Fund.

      Sec. 25.  1.  Except as otherwise provided in subsection 2, a person who violates any provision of section 23 of this act is guilty of a gross misdemeanor and shall be punished:

      (a) For the first offense, by imprisonment in the county jail for not more than 6 months, or by a fine of not less than $500 or more than $2,000, or by both fine and imprisonment.

      (b) For a second or subsequent offense, by imprisonment in the county jail for not more than 1 year, or by a fine of not less than $2,000 or more than $5,000, or by both fine and imprisonment.

      2.  A person who:


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      (a) Intentionally violates any provision of this chapter or any regulation adopted pursuant thereto;

      (b) Is convicted pursuant to subsection 1 more than three times in a 2-year period; or

      (c) Uses or has in his possession any device which has been altered to facilitate fraud,

is guilty of a category E felony and shall be punished as provided in NRS 193.130.

      Sec. 26.  The State Sealer of Weights and Measures may apply to any court of competent jurisdiction for a restraining order, or a temporary or permanent injunction, restraining a person from violating any provision of this chapter or any regulation adopted pursuant thereto.

      Sec. 27.  The presence of a weight or measure, or weighing or measuring device in or about any place in which or from which buying or selling is commonly carried on, creates a rebuttable presumption that the weight or measure, or weighing or measuring device is regularly used for the business purposes of that place.

      Sec. 28.  NRS 581.001 is hereby amended to read as follows:

      581.001  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 581.003 [to] and 581.010, and sections 2 to 12, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 29.  NRS 581.003 is hereby amended to read as follows:

      581.003  “Correct” means [any weight, measure, or weighing or measuring device that is accurate within applicable tolerances as determined by tests made with suitable standards and meets all applicable specifications and regulations adopted by the State Sealer of Weights and Measures.] in conformance with all applicable requirements of this chapter and the regulations adopted pursuant thereto.

      Sec. 30.  NRS 581.010 is hereby amended to read as follows:

      581.010  1.  “Package” [and “container” include any closed carton, box, barrel, bag, keg, drum, bundle, jar, crock, demijohn, bottle, crate, basket, hamper, pail, can, parcel, package or paper wrapper.] means any commodity, whether in a standard package or random weight package:

      (a) Enclosed in a container or wrapped in any manner in advance of wholesale or retail sale; or

      (b) Whose weight or measure has been determined in advance of wholesale or retail sale.

      2.  The term includes an individual item or lot of any commodity on which there is marked a selling price based on an established price per unit of weight or measure.

      Sec. 31.  NRS 581.030 is hereby amended to read as follows:

      581.030  The Director of the State Department of Agriculture [is hereby designated and constituted] , as ex officio State Sealer of Weights and Measures, [and is charged with the proper enforcement of] shall enforce the provisions of this chapter.

      Sec. 32.  NRS 581.050 is hereby amended to read as follows:

      581.050  1.  The State Sealer of Weights and Measures may:

      (a) Adopt regulations [for the efficient enforcement of] necessary to carry out the provisions of this chapter.


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      (b) Ensure that those regulations comply, insofar as practicable, with the specifications, tolerances and regulations recommended by the National [Bureau of Standards.] Institute of Standards and Technologies.

      (c) Adopt regulations for the submission for approval of types and designs of weights and measures and [weighing, measuring and counting devices intended for commercial use.] commercial weighing and measuring equipment.

      2.  The State Sealer of Weights and Measures shall adopt regulations which prescribe the:

      (a) Standards for weighing and measuring devices;

      (b) Requirements for the issuance of a certificate of registration pursuant to NRS 581.103; and

      (c) Standards for the equipment used to repair or adjust weighing or measuring devices.

      Sec. 33.  NRS 581.075 is hereby amended to read as follows:

      581.075  The State Sealer of Weights and Measures may establish:

      1.  A schedule of fees for any tests of weighing and measuring devices determined by him to be necessary.

      2.  An annual fee for the issuance of a certificate of registration pursuant to NRS 581.103.

      3.  An annual license fee for all commercial weighing and measuring equipment.

      Sec. 34.  NRS 581.103 is hereby amended to read as follows:

      581.103  1.  Any person who wishes to make any repair or adjustment, for hire, to a weighing or measuring device must submit to the State Sealer of Weights and Measures:

      (a) An application for a certificate of registration on a form provided by the State Sealer of Weights and Measures;

      (b) The statement required pursuant to NRS 581.1032;

      (c) The annual fee prescribed by regulation pursuant to subsection 2 of NRS 581.075; and

      (d) [The equipment the person will use to repair or adjust weighing or measuring devices. The State Sealer of Weights and Measures shall inspect the equipment to ensure that the equipment complies with the standards set forth in the regulations adopted pursuant to NRS 581.050.] Such other information required by the State Sealer of Weights and Measures.

      2.  An application for a certificate of registration must include the social security number of the applicant.

      [3.  The State Sealer of Weights and Measures shall issue to any person who complies with the requirements of subsection 1 a certificate of registration. The certificate must include a unique registration number.

      4.  A certificate of registration is effective for the calendar year in which it is issued, and may be renewed upon application on or before January 15 of the succeeding year. Any person who, for hire, makes a repair or adjustment to a weighing or measuring device without being registered pursuant to this section shall be punished as provided in NRS 581.450.

      5.  Except as otherwise provided in NRS 581.104, any person who sells or installs or makes any repair or adjustment to a commercially used weighing or measuring device shall within 24 hours notify the State Sealer of Weights and Measures, on a form provided by the State Sealer of Weights and Measures, of that repair, adjustment, sale or installation. If a person who has been issued a certificate of registration pursuant to subsection 3 fails to notify the State Sealer of Weights and Measures as required by this subsection, the State Sealer of Weights and Measures may suspend the certificate of registration of that person for not more than 10 days and may, after a hearing, revoke his certificate of registration.


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ê2003 Statutes of Nevada, Page 2321 (Chapter 394, SB 485)ê

 

notify the State Sealer of Weights and Measures as required by this subsection, the State Sealer of Weights and Measures may suspend the certificate of registration of that person for not more than 10 days and may, after a hearing, revoke his certificate of registration.

      6.  The form required pursuant to subsection 5 must include:

      (a) The registration number and signature of the person who sold, installed, repaired or adjusted the device; and

      (b) A statement requesting that the State Sealer of Weights and Measures inspect the weighing or measuring device and seal or mark it if it complies with the standards set forth in the regulations adopted pursuant to NRS 581.050.

      7.  Any person required to register pursuant to subsection 1 who employs any other person to make any repair or adjustment to a weighing or measuring device is responsible for the registration of that employee in the manner required by subsection 1.

      8.  The provisions of this section do not apply to a public utility subject to the jurisdiction of the Public Utilities Commission of Nevada.]

      Sec. 35.  Chapter 582 of NRS is hereby amended by adding thereto the provisions set forth as sections 36 to 57, inclusive, of this act.

      Sec. 36.  As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 37 to 40, inclusive, of this act have the meanings ascribed to them in those sections.

      Sec. 37.  “Division” means the Division of Measurement Standards of the State Department of Agriculture.

      Sec. 38.  “Public weighing” means the weighing, measuring or counting, upon request, of vehicles, property, produce, commodities or articles other than those that the weigher or his employer, if any, is either buying or selling.

      Sec. 39.  “Public weighmaster” means any person who performs public weighing.

      Sec. 40.  “Vehicle” means any device other than a railroad freight car in, upon or by which any property, produce, commodity or article is or may be transported or drawn.

      Sec. 41.  The State Sealer of Weights and Measures shall:

      1.  Enforce the provisions of this chapter;

      2.  Adopt regulations establishing a schedule of civil penalties for any violation of this chapter;

      3.  Adopt reasonable regulations for the enforcement of this chapter; and

      4.  Adopt regulations relating to public weighing that include, without limitation:

      (a) The qualifications of an applicant for a license as a public weighmaster;

      (b) Requirements for the renewal of a license as a public weighmaster;

      (c) The period of validity of a license as a public weighmaster;

      (d) Measurement practices that must be followed, including the measurement or recording of tare weight;

      (e) The required information to be submitted with or as part of a certificate of weights and measures; and

      (f) The period for which records must be kept.


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ê2003 Statutes of Nevada, Page 2322 (Chapter 394, SB 485)ê

 

      Sec. 42.  Except as otherwise provided in section 52 of this act, to act as a public weighmaster, a person must receive a license from the State Sealer of Weights and Measures. To qualify for a license, a person must:

      1.  Be able to weigh and measure accurately;

      2.  Be able to generate correct certificates of weights and measures; and

      3.  Possess such other qualifications as required by the regulations adopted pursuant to this chapter.

      Sec. 43.  An applicant for a license as a public weighmaster must furnish evidence on a form provided by the State Sealer of Weights and Measures that he has the qualifications required by section 42 of this act.

      Sec. 44.  The State Sealer of Weights and Measures shall determine the qualifications of an applicant for a license as a public weighmaster based on:

      1.  The information provided on the application and any supplementary information determined appropriate by the State Sealer of Weights and Measures; and

      2.  The results of an examination of the knowledge of the applicant.

      Sec. 45.  The State Sealer of Weights and Measures shall:

      1.  Grant licenses as public weighmasters to qualified applicants; and

      2.  Keep a record of all applications submitted and all licenses issued.

      Sec. 46.  1.  A certificate of weights and measures, when properly filled out and signed, is prima facie evidence of the accuracy of the measurements shown.

      2.  The design of and the information to be furnished on a certificate of weights and measures must be prescribed by the State Sealer of Weights and Measures by regulation, and include, without limitation:

      (a) The name and license number of the public weighmaster;

      (b) The kind of commodity weighed, measured or counted;

      (c) The name of the owner, agent or consignee of the commodity;

      (d) The name of the recipient of the commodity, if applicable;

      (e) The date on which the certificate is issued;

      (f) The consecutive number of the certificate;

      (g) The identification, including any identification number, of the carrier transporting the commodity, and the identification number or license number of the vehicle;

      (h) Any relevant information needed to distinguish or identify the commodity from a like kind;

      (i) The number of units of the commodity, if applicable;

      (j) The measure of the commodity, if applicable;

      (k) The weight or mass of the commodity and the vehicle or container, if applicable, as follows:

             (1) The gross weight of the commodity and the associated vehicle or container;

             (2) The tare weight of the unladened vehicle or container; or

             (3) Both the gross and tare weight and the resultant net weight of the commodity; and

      (l) The signature of the public weighmaster who determined the weight, measure or count.

      Sec. 47.  1.  When filling out a certificate of weights and measures, a public weighmaster:


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      (a) Shall enter the measurement values so that the certificate clearly shows that the measurements were actually determined;

      (b) Shall enter only the measurement values personally determined; and

      (c) Shall not enter any measurement values determined by other persons.

      2.  If the certificate of weights and measures provides for entries of gross, tare or net weight or measure, the public weighmaster shall:

      (a) Strike out or otherwise cancel the printed entries for the values not determined; or

      (b) If the values were not determined on the same scale or on the same date shown on the certificate, enter on the certificate the scale and date on which the values were determined.

      Sec. 48.  A public weighmaster shall only use measurement practices and equipment:

      1.  In accordance with the provisions of this chapter and any regulations adopted pursuant thereto; and

      2.  That have been examined, tested and approved for use by an authorized employee of the Division.

      Sec. 49.  1.  Except as otherwise provided in subsection 2:

      (a) A public weighmaster shall not weigh a vehicle or combination of vehicles when part of the vehicle or connected combination is not resting fully, completely and as one entire unit on the scale.

      (b) When weighing a combination of vehicles that will not rest fully, completely and as one complete unit on the scale platform:

             (1) The combination of vehicles must be disconnected and weighed in single drafts; and

             (2) The weights of the single drafts may be combined in order to issue a single certificate of weights and measures for the combination, provided that the certificate indicates that the total represents a combination of single draft weighings.

      2.  A public weighmaster who operates a vehicle scale that was installed before January 1, 2004, may apply to the State Sealer of Weights and Measures for a permanent variance from the requirements of subsection 1 that would allow the split weighing of certain vehicles or combinations of vehicles. The request must contain:

      (a) The name, address and telephone number of the public weighmaster and the reason for the request.

      (b) The name of the manufacturer, and the type, location, deck length, serial number and capacity, of the vehicle scale.

      (c) The maximum distance between the front and rear outer axles of a vehicle or combination of vehicles to which the variance would apply.

      (d) A statement certifying that, during the split weighing of any vehicle or combination of vehicles, the public weighmaster will verify that:

             (1) Each axle of the vehicle or combination of vehicles rests on a straight surface which is level with the deck of the vehicle scale or which, if not level, the amount by which it is out of level does not exceed 1/3 inch per foot of distance between the deck of the vehicle scale and the axle;

             (2) The brakes of the vehicle or combination of vehicles are not used; and

             (3) The transmission of the vehicle or combination of vehicles is in neutral.


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ê2003 Statutes of Nevada, Page 2324 (Chapter 394, SB 485)ê

 

      Sec. 50.  A public weighmaster shall keep and preserve a legible copy of each certificate of weights and measures which he issues for the period specified by the State Sealer of Weights and Measures by regulation. The certificates must be available for inspection by an authorized employee of the Division during normal office hours.

      Sec. 51.  The State Sealer of Weights and Measures may recognize and accept certificates of weights and measures issued by licensed public weighmasters of any other state if that other state recognizes and accepts certificates of weights and measures issued by licensed public weighmasters of this state.

      Sec. 52.  1.  Except as otherwise provided in this section, the following persons may, but are not required to, obtain licenses as public weighmasters to engage in public weighing:

      (a) A law enforcement or weights and measures officer or other qualified employee of the State, a city or a county agency or institution when acting within the scope of his official duties.

      (b) A person weighing property, produce, commodities or articles:

             (1) That he or his employer is buying or selling; or

             (2) In conformity with the requirements of federal statutes or the statutes of this state relating to warehousemen or processors.

      2.  A person described in subsection 1 shall not issue a certificate of weights and measures unless he holds a license as a public weighmaster.

      Sec. 53.  1.  A person shall not:

      (a) Except as otherwise provided in section 52 of this act, act as a public weighmaster without a valid license, including, without limitation:

             (1) Assuming the title of public weighmaster or any similar title;

             (2) Performing the duties or acts to be performed by a public weighmaster;

             (3) Holding himself out as a public weighmaster;

             (4) Issuing any certificate of weights and measures, ticket, memorandum or statement for which a fee is charged; or

             (5) Engaging in a full-time or part-time business of measuring for hire;

      (b) Use or operate any device for purposes of certification that does not meet, or is not operated in accordance with, the provisions of chapter 581 of NRS and any regulations adopted pursuant thereto relating to the specifications, tolerances and other technical requirements for weighing and measuring devices;

      (c) Falsify a certificate of weights and measures or falsely certify any gross, tare or net weight or measure required by this chapter to be on the certificate;

      (d) Refuse without cause to weigh or measure any article or thing which is his duty to weigh or measure, or refuse to state in any certificate anything required to be therein;

      (e) Hinder or obstruct in any way the State Sealer of Weights and Measures or his authorized agent in the performance of the official duties of the State Sealer of Weights and Measures under this chapter;

      (f) Violate any provision of this chapter or any regulation adopted pursuant thereto;

      (g) Delegate his authority to a person not licensed as a public weighmaster;


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      (h) Request a false certificate of weights and measures, or request a public weighmaster to weigh, measure or count property or produce, or a vehicle, commodity or any other article falsely or incorrectly;

      (i) Issue a certificate simulating the certificate of weights of measures issued pursuant to this chapter; or

      (j) Use or have in his possession a device for weighing and measuring which has been altered to facilitate fraud.

      2.  A person who violates any provision of this section is, in addition to any criminal penalty that may be imposed, subject to a civil penalty in accordance with the schedule of civil penalties established by the State Sealer of Weights and Measures pursuant to section 41 of this act.

      Sec. 54.  The State Sealer of Weights and Measures may suspend or revoke the license of a public weighmaster:

      1.  When, following a hearing held after 10 days’ notice to the licensee, the State Sealer of Weights and Measures is satisfied that the licensee has violated a provision of this chapter or any regulation adopted pursuant thereto;

      2.  When the licensee has been convicted in a court of competent jurisdiction of violating a provision of this chapter or any regulation adopted pursuant thereto; or

      3.  When the licensee is convicted of a felony.

      Sec. 55.  1.  A person subject to a civil penalty may request an administrative hearing within 10 days after receipt of the notice of the civil penalty. The State Sealer of Weights and Measures or his designee shall conduct the hearing after giving appropriate notice to the respondent. The decision of the State Sealer of Weights and Measures or his designee is subject to appropriate judicial review.

      2.  If the respondent has exhausted his administrative appeals and the civil penalty has been upheld, he shall pay the civil penalty:

      (a) If no petition for judicial review is filed pursuant to NRS 233B.130, within 40 days after the final decision of the State Sealer of Weights and Measures; or

      (b) If a petition for judicial review is filed pursuant to NRS 233B.130 and the civil penalty is upheld within 10 days after the effective date of the final decision of the court.

      3.  If the respondent fails to pay the civil penalty, a civil action may be brought by the State Sealer of Weights and Measures in any court of competent jurisdiction to recover the civil penalty. All civil penalties collected pursuant to this chapter must be remitted to the county treasurer of the county in which the violation occurred for credit to the county school district fund.

      Sec. 56.  1.  Except as otherwise provided in subsection 2, a person who by himself, by his servant or agent, or as the servant or agent of another person violates any provision of this chapter is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not less than 6 months or more than 1 year, or by a fine of not less than $1,000 or more than $5,000, or by both fine and imprisonment.

      2.  A person who by himself, by his servant or agent, or as the servant or agent of another person:

      (a) Intentionally violates any provision of this chapter or any regulation adopted pursuant thereto; or


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      (b) Is convicted pursuant to subsection 1 more than three times in a 2-year period,

is guilty of a category E felony and shall be punished as provided in NRS 193.130.

      Sec. 57.  The State Sealer of Weights and Measures may apply to a court of competent jurisdiction for a restraining order, or a temporary or permanent injunction, restraining a person from violating any provision of this chapter or any regulation adopted pursuant thereto.

      Sec. 58.  NRS 582.025 is hereby amended to read as follows:

      582.025  The State Sealer of Weights and Measures may adopt such regulations as are reasonably necessary to carry out the provisions of this chapter. Any such regulations shall comply, insofar as practicable, with specifications, tolerances and regulations recommended by the National [Bureau of Standards.] Institute of Standards and Technologies.

      Sec. 59.  NRS 582.030 is hereby amended to read as follows:

      582.030  1.  Any person may apply to the State Sealer of Weights and Measures for [appointment] licensure as a public weighmaster with authority to issue state certificates of weights and measures upon which the purchase or sale of commodities or charge for services or equipment will be based.

      2.  Before issuing a [certificate of appointment] license as a public weighmaster, the State Sealer of Weights and Measures or his deputy [shall:] must:

      (a) Test all weighing apparatus to be used.

      (b) Inspect the premises intended for such use.

      (c) Satisfy himself that the applicant is in every way equipped, qualified, competent and of such character that he should be [appointed] issued a license as a public weighmaster.

      Sec. 60.  NRS 582.032 is hereby amended to read as follows:

      582.032  1.  An applicant for the issuance or renewal of a [certificate of appointment] license as a public weighmaster shall submit to the State Sealer of Weights and Measures the statement prescribed by the Welfare Division of the Department of Human Resources pursuant to NRS 425.520. The statement must be completed and signed by the applicant.

      2.  The State Sealer of Weights and Measures shall include the statement required pursuant to subsection 1 in:

      (a) The application or any other forms that must be submitted for the issuance or renewal of [the certificate of appointment;] a license as a public weighmaster; or

      (b) A separate form prescribed by the State Sealer of Weights and Measures.

      3.  A [certificate of appointment] license as a public weighmaster may not be issued or renewed by the State Sealer of Weights and Measures pursuant to NRS 581.103 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 State Sealer of Weights and Measures 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.


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or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the State Sealer of Weights and Measures 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. 61.  NRS 582.034 is hereby amended to read as follows:

      582.034  An application for a [certificate of appointment] license as a public weighmaster must include the social security number of the applicant.

      Sec. 62.  NRS 582.040 is hereby amended to read as follows:

      582.040  If satisfied with the qualifications of the applicant, the State Sealer of Weights and Measures shall issue a [certificate of appointment] license as a public weighmaster, for which [certificate] license he shall charge a fee established by regulation of the State Board of Agriculture. [The certificate of appointment:

      1.  Is valid for the calendar year in which it is issued.

      2.  May be renewed each year upon application to the State Sealer of Weights and Measures on or before the last day of January. The application must be accompanied by a fee established by regulation of the State Board of Agriculture.]

      Sec. 63.  NRS 582.045 is hereby amended to read as follows:

      582.045  1.  If the State Sealer of Weights and Measures 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 [the holder of a certificate of appointment] licensed as a public weighmaster, the State Sealer of Weights and Measures shall deem the [certificate] license to be suspended at the end of the 30th day after the date on which the court order was issued unless he receives a letter issued to the [holder of the certificate] licensee by the district attorney or other public agency pursuant to NRS 425.550 stating that the [holder of the certificate] licensee has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      2.  The State Sealer of Weights and Measures shall reinstate a [certificate of appointment] license as a public weighmaster suspended by a district court pursuant to NRS 425.540 if the State Sealer of Weights and Measures receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose [certificate] license was suspended stating that the person whose [certificate] license was suspended has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

      Sec. 64.  NRS 590.063 is hereby amended to read as follows:

      590.063  1.  The use of pumps or other devices which are capable of withdrawing gasoline from each of two tanks containing different qualities of the same petroleum product and dispensing them as a single combined product must be authorized if the Division of Measurement Standards of the State Department of Agriculture determines that all of the following conditions exist:

      (a) The device mechanism accurately measures the quantities of the gasoline being simultaneously withdrawn from each of the two tanks and the quantity dispensed.

      (b) The device mechanism accurately and visibly records and displays the resulting combined quality, the total quantity, the price per gallon for the particular quality combination being dispensed, and the total price of the quantity of gasoline dispensed at the particular sale.


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particular quality combination being dispensed, and the total price of the quantity of gasoline dispensed at the particular sale.

      (c) The device has a locking selector mechanism which prevents the changing of the proportion of the two qualities being combined during the dispensing of the desired quantity.

      2.  The provisions of this section authorize the operation of a blending type of pump connected to two tanks containing two different grades of the same product, which, if blended together in different proportions, will produce gasoline of different octane rating, each blend of which meets the specifications for gasoline as required by this chapter.

      Sec. 65.  NRS 590.065 is hereby amended to read as follows:

      590.065  1.  The use of pumps or other devices which are capable of withdrawing gasoline from one tank containing gasoline and another tank containing motor oil and dispensing them as a single combined product and of withdrawing gasoline alone from the tank containing gasoline must be authorized if the Division of Measurement Standards of the State Department of Agriculture determines that all of the following conditions exist:

      (a) The device mechanism accurately measures the quantities being simultaneously withdrawn for dispensing as a combined product from each of the two tanks when the combined product is dispensed, and the quantity being dispensed from the gasoline tank alone when gasoline alone is dispensed.

      (b) The device mechanism accurately and visibly records and displays the ratio of gasoline to motor oil, the quantity of each ingredient being dispensed, the price per gallon for gasoline being dispensed and the price per quart for motor oil being dispensed, or a device the mechanism of which accurately and visibly records and displays the ratio of gasoline to motor oil, the total volume of the oil and gasoline mixture delivered, and computes the total cost based upon the price set for the finished blend.

      (c) The device mechanism prevents the changing of the ratio of gasoline to motor oil during dispensing.

      (d) There is firmly attached to or painted upon the device mechanism panel a sign or label plainly visible consisting of the words “outboard motor fuel” in letters not less than one-half inch in height, together with the brand, trademark or trade name of the product, which must be in letters of not less than one-half inch in height.

      2.  The provisions of this section authorize the operation of a blending type of pump connected to two tanks, one containing motor oil and the other gasoline, but only if the motor oil in its separate state meets the specifications for lubricating oil as required by NRS 590.080, and the gasoline in its separate state meets the specifications for gasoline as required by NRS 590.070.

      Sec. 66.  NRS 590.090 is hereby amended to read as follows:

      590.090  1.  It is unlawful for any person, or any officer, agent or employee thereof, to sell, offer for sale, or assist in the sale of or permit to be sold or offered for sale any petroleum or petroleum product to be used for heating purposes, unless the petroleum or petroleum product conforms to the most recent standards adopted by [the American Society for Testing and Materials.] ASTM International.


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      2.  All bulk storage tanks, dispensers and petroleum tank truck compartment outlets containing or dispensing heating fuel must be labeled with the brand name and the grade designation of the heating fuel.

      3.  A person shall not use the numerical grade designation for heating fuels adopted by [the American Society for Testing and Materials] ASTM International unless the designation conforms to that designation. Persons using a designation other than the numerical grade designation adopted by [the American Society for Testing and Materials] ASTM International must file with the Division of Measurement Standards of the State Department of Agriculture the designation to be used together with its corresponding grade designation of [the American Society for Testing and Materials.] ASTM International.

      Sec. 67.  Chapter 561 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  The Division of Measurement Standards is hereby created within the Department. The Director shall appoint an Administrator of the Division who shall administer all activities and services of the Division.

      2.  The Division of Measurement Standards shall administer and enforce the provisions of chapters 581 and 582 of NRS and NRS 590.010 to 590.450, inclusive.

      Sec. 68.  NRS 581.004, 581.005, 581.055, 581.060, 581.070, 581.080, 581.090, 581.104, 581.105, 581.110, 581.120, 581.140, 581.150, 581.160, 581.170, 581.180, 581.190, 581.200, 581.210, 581.220, 581.230, 581.240, 581.250, 581.260, 581.270, 581.280, 581.290, 581.300, 581.303, 581.307, 581.310, 581.330, 581.340, 581.350, 581.360, 581.370, 581.380, 581.390, 581.400, 581.405, 581.410, 581.420, 581.430, 581.440, 581.450, 581.460, 582.010, 582.050, 582.060, 582.080, 582.090, 582.100, 582.105, 582.110, 582.120, 582.130, 582.140, 582.150, 582.160, 582.170 and 582.180 are hereby repealed.

      Sec. 69.  Any regulations adopted by an officer or agency whose responsibilities have been transferred pursuant to the provisions of this act to another officer or agency remain in force until amended by the officer or agency to which the responsibility for the adoption of the regulations is transferred.

      Sec. 70.  1.  This act becomes effective upon passage and approval for the purpose of adopting regulations necessary to carry out the provisions of this act and on January 1, 2004, for all other purposes.

      2.  Sections 34, 60, 61 and 63 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 procedure 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,

are repealed by the Congress of the United States.

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