Assembly Bill No. 580-Committee on Government Affairs

(On Behalf of Assemblymen Bache and Giunchigliani)

June 10, 1997
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Referred to Committee on Judiciary

SUMMARY--Makes various changes relating to property rights. (BDR 10-994)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to property rights; requiring the use of secret ballots and the reorganization of certain older unit-owners' associations for common-interest communities; prohibiting discrimination in common-interest communities; making various changes to provisions governing procedure for eminent domain; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 Chapter 116 of NRS is hereby amended by adding thereto a new section to read as follows:
1. After the secretary of the association has registered all proxies to be used at the meeting, all voting at a meeting of a unit-owners' association must be by secret ballot.
2. The secretary shall count, or the president may appoint tellers to count, the ballots cast. At the close of the meeting, the secretary shall seal the ballots in an envelope, preserve them for 1 year, and then destroy them.
Sec. 2 NRS 116.1203 is hereby amended to read as follows:
116.12031. Except as otherwise provided in subsection 2, if a planned community:
(a) Contains no more than 12 units and is not subject to any developmental rights; or
(b) Provides, in its declaration, that the annual average liability for common expenses of all units restricted to residential purposes, exclusive of optional users' fees and any insurance premiums paid by the association, may not exceed $500 per unit,
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, NRS 116.3101 to 116.3119, inclusive, and section 1 of this act, and 116.11031 to 116.110393, inclusive, to the extent necessary in construing any of those sections, apply to a residential planned community containing more than six units.
Sec. 3 NRS 116.1204 is hereby amended to read as follows:
116.1204Except as otherwise provided in NRS 116.1205 [,] :
1. NRS 116.1105, 116.1106, 116.1107, 116.2103, 116.2104 and 116.2121, paragraphs (a) to (f), inclusive, and (k) to (r), inclusive, of subsection 1 of NRS 116.3102, NRS 116.3111, 116.3116 to 116.31168, inclusive, 116.3118, 116.4109 and 116.4117, and NRS 116.11031 to 116.110393, inclusive, to the extent necessary in construing any of those sections, apply to all common-interest communities created in this state before January 1, 1992; but those sections apply only with respect to events and circumstances occurring on or after January 1, 1992, and before October 1, 1998, and do not invalidate existing provisions of the declaration, bylaws, or plats or plans of those common-interest communities.
2. This chapter applies to all common-interest communities with respect to events and circumstances occurring on and after October 1, 1998, and requires the amendment of any provision of the declaration or bylaws of a common-interest community that does not conform to this chapter and the reorganization of a common-interest community not organized pursuant to the provisions of NRS 116.3101.
Sec. 4 NRS 116.1205 is hereby amended to read as follows:
116.1205If a cooperative or planned community created within this state before January 1, 1992, 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 is amended in conformity with applicable law and with the procedures and requirements of the declaration to take advantage of the provisions of NRS 116.1206 . [, in which case all the sections enumerated in NRS 116.1204 apply to that cooperative or planned community.]
Sec.
5 NRS 116.1206 is hereby amended to read as follows:
116.12061. 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.
2. 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.
Chapter 118 of NRS is hereby amended by adding thereto a new section to read as follows:
The provisions of NRS 118.010 to 118.120, inclusive, apply to a common-interest community. The declaration and bylaws may not contain any provisions whose application would violate those statutory provisions.
Sec. 6 NRS 118.010 is hereby amended to read as follows:
118.010The provisions of NRS 118.010 to 118.120, inclusive, and section 6 of this act may be cited as the Nevada Fair Housing Law.
Sec. 7 NRS 37.100 is hereby amended to read as follows:
37.1001. The plaintiff may move the court or a judge thereof at any time after the commencement of suit, on notice for such time as the court or judge may direct to the defendant if he is a resident of the county or has appeared in the action, otherwise by serving a notice directed to him on the clerk of the court, for an order permitting the plaintiff to occupy the premises sought to be condemned, pending the entry of judgment, and to do such work thereon as may be required for the easement, fee, or property rights sought, according to its nature.
2. The court or judge shall take proof, by affidavit or otherwise, of the value of the premises sought to be condemned, the damages which will accrue from the condemnation and the reasons for requiring a speedy occupation, and shall grant or refuse the motion according to the equity of the case and the relative damages which may accrue to the parties.
3. If the motion is granted, the court or judge shall require the plaintiff to execute and file in court a bond to the defendant, with sureties, to be approved by the court or judge in a penal sum to be fixed by the court or judge, not less than double the value of the premises sought to be condemned and the damages which will ensue from condemnation and occupation, as the value and damages may appear to the court or judge on the hearing, and conditioned to pay the adjudged value of the premises and all damages if the property is condemned, and to pay all damages arising from occupation before judgment if the premises are not condemned, and all costs adjudged to the defendant in the action. The sureties shall justify before the court or judge, after a reasonable notice to the defendant of the time and place of justification.
4. In lieu of a bond the plaintiff, with the consent of the court, may deposit with the clerk of the court a sum equal to the [value of the premises plus damages, as appraised by the plaintiff.] required amount of the bond. Upon application of the defendant and upon notice to all parties, the court or judge may order the money deposited with the clerk of the court or any part thereof to be paid to the defendant. If the amount of the compensation awarded upon judgment is less than the sum deposited and paid to the defendant, the court shall enter judgment in favor of the plaintiff and against the defendant for the amount of the excess. Application by the defendant to the court for withdrawal of part or all of the money deposited and the payment of that money to the defendant does not prejudice the right of the defendant to contest the amount of compensation to be finally awarded. The receipt by the defendant of a part or all of the money deposited must be conditioned upon the waiver of all defenses except those relating to the amount of compensation.
5. The amount of the penal bond or the deposit is for the purpose of the motion only and is not admissible in evidence on final hearing.
6. The court or judge may also restrain the defendant from hindering or interfering with the occupation of the premises and the doing thereon of the work required for the easement, fee, or property rights.
[7. The provisions of this section requiring the execution and filing of a bond do not apply in any action or proceeding in which the State of Nevada is the plaintiff, but the public faith and credit of the State of Nevada, is hereby pledged as security in lieu of the bond. The provisions of this subsection do not prevent the State of Nevada from depositing, in lieu of a pledge of the public faith and credit, with the clerk of the court a sum equal to the value of the premises plus any damages as appraised by the state.]
Sec.
8 NRS 37.170 is hereby amended to read as follows:
37.1701. At any time after the entry of judgment [, or pending an] and final disposition of any appeal by either party from the judgment to the supreme court, whenever the plaintiff has paid into court for the defendant the full amount of the judgment, and such further sum as may be required by the court as a fund to pay any further damages and costs [that may be] recovered in the proceedings, as well as all damages that may be sustained by the defendant, if for any cause the property is not finally taken for public use, the plaintiff, if already in possession, may continue therein, and if not, the court shall, upon motion of the plaintiff, authorize the plaintiff to take possession of and use the property . [during the pendency of and until the final conclusion of the litigation, and shall, if necessary, stay all actions and proceedings against the plaintiff on account thereof. The plaintiff must not be held to have abandoned or waived the right to appeal from the judgment by paying into court the amount of the judgment and such further sum as may be required by the court and taking possession of the property pursuant to this subsection.]
2. The defendant, who is entitled to the money paid into court for him upon any judgment, is entitled to demand and receive that money at any time after obtaining an order therefor from the court. The court or judge thereof shall, upon application being made by the defendant and notice to all parties, order and direct that the money so paid into court be delivered to the defendant upon his filing a satisfaction of the judgment . [, or upon his filing a receipt for the money and an abandonment of all defenses to the action or proceeding, except as to the amount of damages that he may be entitled to if a new trial is granted. A payment to a defendant pursuant to this subsection shall be deemed to be an abandonment by that defendant of all defenses interposed by him, excepting his claim for greater compensation.
3. If the amount of the compensation awarded upon final judgment exceeds the sum paid into court, the court shall enter judgment against the plaintiff and in favor of the defendant for the amount of the excess plus interest. If the amount of the compensation awarded upon final judgment is less than the sum paid into court and paid to the defendant, the court shall enter judgment in favor of the plaintiff and against the defendant for the amount of the excess plus interest.]
Sec.
1. This act becomes effective on October 1, 1997, for the purposes of compliance with subsection 2 and section 1 of this act and of any appropriate amendment of the declaration or bylaws, or reorganization, of a common-interest community, and on October 1, 1998, for all other purposes.
2. The secretary of a unit-owners' association shall:
(a) As soon as practicable after October 1, 1997, destroy all ballots cast at meetings of the association that are 1 year old or older.
(b) No later than October 1, 1998, destroy all other ballots cast at meetings of the association that identify the person who cast the ballot.

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