THE SEVENTY-FIFTH DAY

                               

Carson City (Friday), April 18, 2003

    Senate called to order at 10:41 a.m.

    President Hunt presiding.

    Roll called.

    All present except Senator Care, who was excused.

    Prayer by the Chaplain, Reverend Stan Pesis.

    By necessity, we expend a great deal of time and energy in this Chamber deliberating about issues that ultimately address power and privilege. Help us, O God, never to forget the most important gift we have been given and those who died that we may enjoy it—lives lived freely.

Amen.

    Pledge of allegiance to the Flag.

    Senator Raggio moved that further reading of the Journal be dispensed with, and the President and Secretary be authorized to make the necessary corrections and additions.

    Motion carried.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Commerce and Labor, to which were referred Assembly Bills Nos. 139, 140, 145, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

    Also, your Committee on Commerce and Labor, to which were referred Senate Bills Nos. 100, 125, 132, 136, 273, 292, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

Madam President:

    Your Committee on Finance, to which was referred Senate Bill No. 408, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

William J. Raggio, Chairman

Madam President:

    Your Committee on Government Affairs, to which were referred Senate Bills Nos. 331, 342, 359, 444, 451, 452, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Ann O'Connell, Chairman

Madam President:

    Your Committee on Human Resources and Facilities, to which was referred Senate Bill No. 235, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and re-refer to the Committee on Finance.

Raymond D. Rawson, Chairman

Madam President:

    Your Committee on Judiciary, to which were referred Senate Bills Nos. 106, 432, 434, 436, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mark E. Amodei, Chairman

Madam President:

    Your Committee on Natural Resources, to which was referred Senate Bill No. 486, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Dean A. Rhoads, Chairman

Madam President:

    Your Committee on Taxation, to which were referred Senate Bills Nos. 237, 313, 464, 471, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Mike McGinness, Chairman

Madam President:

    Your Committee on Transportation, to which were referred Senate Bills Nos. 256, 356, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Raymond C. Shaffer, Chairman

MESSAGES FROM THE ASSEMBLY

Assembly Chamber, Carson City, April 17, 2003

To the Honorable the Senate:

    I have the honor to inform your honorable body that the Assembly on this day passed, as amended, Assembly Bills Nos. 86, 258, 291, 293, 349, 450, 487.

    Also, I have the honor to inform your honorable body that the Assembly on this day respectfully refused to concur in the Senate Amendment No. 83 to Assembly Bill No. 53.

Diane Keetch

Assistant Chief Clerk of the Assembly

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved that for this legislative day the Secretary of the Senate dispense with reading the histories and titles of all bills and joint resolutions.

    Remarks by Senator Raggio.

    Motion carried.

    Senator Raggio moved that for this legislative day, all Senate bills reported out of committee be immediately placed on the appropriate reading file on the second agenda.

    Remarks by Senator Raggio.

    Motion carried.

GENERAL FILE AND THIRD READING

    Senate Bill No. 38.

    Bill read third time.

    Remarks by Senators Amodei, Neal, Nolan and Coffin.

    Senator Amodei requested that the following remarks be entered in the Journal.

    Senator Amodei:

    Thank you, Madam President. Senate Bill No. 38 represents a response to what has happened to our Nation during the past two years since we were last in Session. This creates an additional crime of terrorism. The definition of terrorism is mirrored after the Patriot Act in Title 18 of the United States Code. It provides for sentencing enhancements for those in addition to the existing crime penalties if you commit the act of terrorism or you are convicted of it. It creates the crime of assisting, aiding and abetting one who is involved in acts of terrorism and updates some of our preexisting weapons of mass destruction, chemical, biological and radiological provisions already in Nevada Revised Statues chapter 202 and ties those in with this measure. The committee took extensive testimony from those who urged us to strike a balance between civil rights. It provides for the appropriate level of punishment with concern regarding the way our Nation has evolved and what has happened to people in our Nation because of that. What you see before you has the consensus of the committee regarding Senate Bill No. 38.

Senator Neal:

    Madam President and members of the Senate, I signed on to this bill having not read it. I have had the opportunity to review it, and I feel this bill is a bad bill. It is not needed. As the chairman of the Committee on Judiciary has indicated, most of the bill follows the Federal Patriots Act. When I think of the words in that act, it seems that everything in this bill has been preempted by the federal government. Whatever the crime is that is committed under the proposal, it would be within the jurisdiction of the federal government and primarily the Federal Bureau of Investigation (FBI).

    Since September 11, 2001, the FBI has conducted 10,000 interviews with people of the Islamic community, many of whom were Iraqis. Out of those interviews, they developed 250 reports used to help our troops during the Iraqi War. Information gathered from these people pointed out who the enemy was among the Palace Guards of Saddam Hussein. They also gave information about the bunkers where weapons were stored and about many other activities. Since September 11, there have been 56 new FBI command posts established throughout the country. One of those command posts is in Nevada; therefore, I question whether we need Senate Bill No. 38. Will it prevent any of the activities listed in the bill from occurring? Our bill has created a nightmare. Jurisdictional squabbles will develop between our local law enforcement agencies in Nevada and the FBI. I can foresee some local police force or sheriff’s office running around trying to deal with terrorists when this act has been preempted by the federal government.

    As this act is now proposed, I must fall back upon experiences I have had related to terrorism in this country. I see many similarities in how this act could be misused. Abuse can occur with this act. I was born in the South. I experienced terrorism. At one time, the State of Mississippi declared itself a sovereign state not under the control, as they saw it, of the federal government. That was looked upon as an exercise in states' rights. I saw terrorism—three civil rights workers were killed when the State of Mississippi declared itself a sovereign state. I saw terrorism when four little girls were killed in a bombing in Birmingham, Alabama. We saw terrorism recently when James Byrd, a black man in Texas, was dragged to his death behind a truck five or six years ago. All of the above were acts of terrorism. Somehow, we did not think of it as being so until it happened to the general population. We saw terrorism when Timothy McVey drove a Ryder truck up to the Oklahoma City Federal Building and blew it up. That was a terrorist act, but we did not see this bill then. We saw resolutions that talked about the tragedy.

    What we have, now, is a bill that will not do us any good. It might make some of us feel good, but it will be used, I believe, to violate the constitutional rights of individuals. As I look at this legislation, it refers to “substantial bodily harm to more than one person by reason of a weapon or devise.” That is vague language. We look at a section of the bill dealing with “acts of terrorism.” Acts of terrorism means any activity which involves a violent act, an act so dangerous to human life as to constitute a violation of the criminal laws of this State and “which appears intended to.” I ask appears to whom? This is discretionary language to be interpreted by a law enforcement agency. The bill talks about the influence of policy of “state or political subdivisions.” This language which can be broadly interpreted to mean that a person who has gone to a commission meeting or even to the Legislature and says, “I am going to put you out of office” could be construed as a terrorist, and that act would be punishable under the terms of this bill. The bill says, “threatens” or “coerces,” but the person would be exercising only what I believe to be as a constitutional right. Other vague language in the bill deals with “oral communication.” I would think the press would be afraid of this definition. This is vague language. Oral communication is explained as “material support” given orally through telephone and through other types of communication. If a person writes a book about a terrorist, if a person makes a statement about a terrorist or writes a letter to the editor about a terrorist, is that person giving material support to that individual? I believe that could be the case under this bill. I know an effort has been made to set standards in this bill showing intent. Intent must be proven that a person is involved in listed terrorist acts. Saying, “knowingly make a threat” is convoluted language. “Knowingly” is defined in NRS 193.017, “that the facts exist that constitute the acts and omission of a crime and does not require knowledge of the unlawfulness of the crime itself.” This language could entrap an innocent person. “Knowingly” is distributed throughout this proposal along with “intent.” The wording is vague and will become a Constitutional nightmare for anyone who attempts to enforce this act.

    Section 20, subsection 4, is vague. Tell me what this language says: “A person may be prosecuted, convicted and punished for a violation of this section whether or not the person is prosecuted, convicted or punished for a violation of any other statute based upon the same act or transaction.” I defy any of you to interpret that language and to tell me what it says. I do not know. It is vague, and it would be difficult to enforce.

    This bill includes language, which I find amusing. That language is “weapons of mass destruction.” President Bush went to war with Iraq with the idea that Saddam Hussein had weapons of mass destruction. Does this mean that a district attorney or a police officer is going to declare war upon the State of Nevada based on the phrase “weapons of mass destruction?” This bill is loosely constructed. Does the definition of a crime mean anyone who has any type of explosive such as washing powder, soda or anything in their household that can be exploded would come under this definition. If a person is coming from a grocery store with these items, can they be considered a terrorist? The language is that loose. I understand what the introducer of this bill was trying to do, but I do not think it is tight enough to do what we need to do in Nevada. The federal government has preempted areas covered in this bill. This feel-good measure would allow wholesale abuse or the constitutional abuse of our citizens by trying to enforce this act. It is bad law and is bad public policy.

    I judge much of this language based on experiences I have had. When I see the scope of Senate Bill No. 38, it gives me fear as to what can happen. Who is going to be prosecuted under this law? From the reports we received from the Attorney General’s Office concerning racial profiling, it will be the minority groups. It will not be you, Madam President, you have political power. They will not bother you. However, they will bother the poor soul who happens to make a comment, who is thrown into jail based on the regulations in this act and who cannot afford to get the proper attorney. As we look at this proposal as it relates to the death penalty, I have to ask who will receive that penalty. Whom would they put to death if they violate this act and their actions fall within the mitigating circumstances that allow for the implementation of capital punishment? It will not be our Senator who is chairman of the Senate Committee on Commerce and Labor. He has power and influence. It will be those who are without that power.

    The FBI is charged with enforcing the Anti-Terrorist Act on a national level. They have four goals that have come about because of this war. Their first goal is to explore tolerance in dealing with the Islamic community. Their second goal is to identify counter terrorist activity and not pick up an innocent person. Their third goal is that they would not harass people because of their color or the clothes they wear. They are going to review documents received from the war in Iraq. Their fourth goal is to recover the artifacts stolen from the National Museum of Iraq.

    I want to point out that the focus of the FBI is not the same as the focus of this bill. They are trying to protect the constitutional rights of citizens as they go about enforcing the Patriot Act. They have made certain that the 10,000 interviews conducted since September 11, 2001, were done within the constraints of the United States Constitution. Those 10,000 interviews generated two complaints. The FBI tries to rout out terrorists and does so by not violating the constitutional rights of citizens. This bill does not do so. There are violations of the Fourth Amendment, the Sixth Amendment and the Fourteenth Amendment listed here. I know the chairman of the Senate Committee on Judiciary attempted to clear some of the problems up in the bill because he received questions from the American Civil Liberties Union (ACLU) who pointed out some provisions troubling them. They did not get all of the problems taken care of when they passed the amendment. One of those problems was with the term “oral communication.” That is one of the most troubling aspects of this bill. The definition of “oral communication” is vague. What could it be, and what could it lead to? Only that it is within the judgment of some law enforcement officer to make that determination as to its meaning. Those of you who have cell phones may dislike a government official or do not think President Bush has done a good job and may say so. You could be arrested under the regulations of this bill. It says if you try to enforce governmental policy or make changes, you can be declared a terrorist and you could go to jail. The bill is not needed. It is a waste of time. It is a waste of effort for the body to consider this.

    Those of us who lived during the 1950s and the Communist scare saw many kinds of laws come to be because of fear. The House on Un-American Activities Committee was created. As a college student, I had to study a book called Communism vs. Democracy. The McCarthy era brought about a chilling effect on writers and artists. People were afraid to speak out. People would not make controversial movies. It was not until President John Kennedy was elected that the era ended, and once again, we experienced the air of freedom to speak out or to write and create. Now, we have to think, again, if individuals who express themselves today, as they did in the past, would be considered terrorists.

    Let me share with you the words of the Declaration of Independence: “We hold these truths to be self evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. To secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed, that whenever any form of government becomes destructive to these ends, it is the right of the people to alter or abolish it.”

    These words were written in 1776. If these same words were spoken, today, under this bill, those Founders would be convicted under this bill. They say when the government becomes destructive to the liberty and happiness of the people that you have the right to overthrow that government. What this bill says is if you commit any act that leads to that, then you are a terrorist and can be convicted and thrown into jail for life.

    Sometimes we forget to go back to the Founders. Not being one who was first considered in the Declaration of Independence, I find those words appropriate to mention, today, as we consider Senate Bill No. 38. I understand we all have different backgrounds. Not every one was reared as I. That is why it is important to have a legislature where we can share these views and where I can come to you with a different perspective on the legislation whether or not you believe it. My experiences are different. I see things differently because when we talk about terrorists, I know what terrorism is about. I saw a baby slapped on a bus and killed by a white bus driver because the mother could not quiet him. I saw my mother bump into a white man with a suitcase and heard her called vile names. I saw people taken away at night only to be found lynched the next day. Is this what we want to return to?

    We are trying to move ahead. We are trying to make life better. With regard to President Bush, knowing the troubles he has, there are some people around him who might push him in a different direction on a national level which could become destructive to the rights and civil rights of the people of this Nation.

    Let me close by saying, even when the war in Iraq is concluding, we have not found any weapons of mass destruction. Our Army is probably going to be around for quite some time over there. During all of this, Saddam Hussein has supplanted Osama Bin Laden since the war started. We have only caught one terrorist, Abul Abbas, who killed a Jewish man in a wheelchair on the cruise ship, the Achille Lauro, in 1985 and threw him overboard. The FBI was able to help the Army identify him. His rights will be protected. He will have a fair trial and will get whatever punishment he deserves. His acts were specific. We knew what he did. He knew what he did. The acts in the bill are not specific to the crime of terrorism. Problems are created when a bill is created to achieve an end. But to achieve that end, the rights of our citizens are destroyed, then there is a greater problem.

    Some time ago, my friend and colleague was engaged in a debate dealing with free speech. Under our Constitution, burning of the flag is protected by free speech. We were confronted with a resolution that ended up in the presidential election in 1992, and people were told that flag burning was illegal even though in William v. Texas, the Supreme Court ruled that was free speech protected by the Constitution. There are many aspects to our free speech and our constitutional rights that are not understood by many people. Many people do not understand the overall purpose of the Constitution is to protect everyone’s rights. We must remember that when dealing with a terrorist bill, Madam President. I will vote against the bill even if I am the only one. This is a bad bill. It is bad public policy and will allow the trampling of the constitutional rights of our citizens. The area covered by this law has been preempted by the federal government.

    Senator Nolan:

    Thank you, Madam President. First, I will apologize to Madam President and fellow Senators. I know that we all have a tight schedule and busy agenda today. Many of us are anxious to get back home to our families and because of this, some of us might miss a flight delaying that homecoming.

    Some things said on this floor cannot be left unanswered, and out of respect for you, Madam President and my colleagues, I will keep my comments within the 10-minute timeframe that we all agreed to.

    I agree with the good Senator from north Las Vegas about his frame of reference; that we all come here with a particular frame of reference, and we bring our own experiences. I would hope that nobody would ever have to suffer through the experiences he shared with us a few minutes ago. We know there was disservice to a population in our country that should never have occurred, but it happened hundreds of years ago. We are all here for reasons including fighting to make sure those types of racist and bias actions never happen again.

    I would have to say to you, Senator, through you, Madam President, and in the strongest terms, of how reprehensible I find every comment made with reference to racism and the remarks you made, yesterday, implying that there is an aversion by this body to people of color. I was born in this State, raised and grew up with children and friends of all races, and like many other people in this State, I do not have a feeling of hatred for any person based on their ethnicity, sex or race. This is not Mississippi in 1960, 1961, 1962 or 1963. This is Nevada in 2003. Yes, racism still exists and has existed since the beginning of time. It exists now, and we can only do our best to try to eradicate it, but there will always be black people who do not like white people because of their skin color, and there will always be white people who do not like black people because of their skin color. Thank God, there are a very few of them who still exist.

    I was speaking with a staff member about a week ago, a beautiful black woman. We were talking after a committee meeting, and I was approached by the good Senator who walked up to the two of us and said, “What are you doing with him. He told me he does not like black people.” He turned and walked away. We sat there in shock staring at each other. I was offended because it was an ugly and rude comment. I expected an apology.

    Senator, take off your tinted glasses because racism does occur, and it occurs in this body on different occasions.

    America was attacked. There were thousands of people killed, and yes, the terrorist targeted blacks, whites, Asians, Hispanics, women and children. They targeted everyone, and there probably was not, with the exception of the fact that they hated all Americans, a racist bone in their body because they wanted to kill all of us.

    In 1980, when the MGM Grand Hotel was on fire, with smoke billowing out of it, I pulled up in an ambulance, and I will never forget watching people fall out of those windows. Many of the MGM Grand Hotel scenes came back to me when the World Trade Center was attacked.

    I was at the World Trade Center ten days after the attack. I was asked to be there as a safety expert to go underneath into the tunnels at “Ground Zero.” I could smell those 2,000 people incinerated in that fire. I never want to see another attack like the World Trade Center in New York City or of any of our hotels or buildings.

    On Monday night, I spoke to a group of Homeland Security Directors from six different states. Jerry Bussell, our Homeland Security Director, brought them together in southern Nevada to talk. There were representatives from the FBI and the ATF.

    Senator Coffin:

    Madam President, I seek recognition under Point of Order. The current speaker is to confine his remarks to the bill. If he chooses to digress during the course of remarking on the specific subject of the bill, as the previous speaker did, it is all right, but I believe we are wandering far field from the issue.

    Senator Nolan:

    Madam President, I appreciate my colleague’s remarks. I think that my remarks are no further a field than the speaker before me. I feel that if he felt that was an issue he should have stood up earlier. I am now confining my remarks specifically to this bill and will finish those quickly.

    I was asked to speak before the FBI, the ATF and members of Congress about the legislation. They lauded Nevada for taking these efforts. Remember that during the New York City bombing, or following it, we were trying to round up some of these terrorist cells. We did so after the attack and after the attack on Oklahoma City. The lack of jurisdiction was one of the major obstructions in the prosecution of these people. What state was going to prosecute these people? What state had some type of organized law that could address these types of acts of terrorism? No state did, and yes, we did end up prosecuting them but not under specific laws that address these types of horrendous acts. That is exactly what this bill does. Yes, Senator, the provisions of the bill are somewhat loosely construed, but they have to be because you cannot define every single act. We rely upon our prosecutors and our judicial system to do what they do every single day, and that is to execute the laws of this land and to uphold the Constitution of the United States which you artfully recited from only a few moments ago. This is the way our country works, and that is why we need this bill here in Nevada.

    Senator Amodei:

    Thank you, Madam President. It is important when talking of this bill that you look at section 6, which defines an act of terrorism and is the wellspring from which everything in this bill comes. I want to direct your attention to words found on line 43. Those operative words talk about activity that involves a violent act. It is not attending a city council meeting, nor writing a letter to the editor. It is the commission of a violent act so dangerous to human life which is the conduct prohibited first, last and in the middle in this bill. Whether you are an accessory or whether you are charged for an attempt, it must take its source from a violent act or an act that is dangerous to human life. Let us not get so far a field with talk about letters to the editor and things like that. That is where you start in terms of evaluating whether someone is charged, not convicted, but charged with this act because, remember, to be convicted in this country you have to be found guilty in a criminal context unless the defendant waives the right to a jury. You have to be found guilty by a jury of your peers.

    I also want to speak briefly on the federal preemption. There are federal criminal laws under which preemption applies, but we have federal murder statutes and state murder statutes. We have no federal DUI statute unless you happen to be in the District of Columbia. There is shared federal and state jurisdiction for many criminal matters. I would submit to you that this is one of them. We do not think we are breaking new ground here, but you need to know there are several states including Alaska, Connecticut, Louisiana, Maine, Utah and Vermont that have already enacted provisions dealing with this. In addition, I was a little concerned to hear about the reference to being charged and sentenced with multiple crimes. Both the United States Supreme Court and the Nevada Supreme Court have held that accumulative sentences would be permissible where the Legislature specifically authorized accumulative sentences. Once again, for the purpose of our records, the Nevada case is Talancon v. State, 102 Nev. 294, and the United States Supreme Court case, Missouri v. Hunter, 103 S.Ct. 673. The conduct prohibited by this bill is in the context of terrorism. You can be cumulatively sentenced. I am concerned about the negative use of “knowingly.” “Knowingly” was a very good term for a floor amendment on the firearms’ serial number statute that was offered by my colleague from District 4, and I would submit that the “knowingly” used in this matter is entirely appropriate in the context of this bill.

    Senators Rhoads, Nolan, and Cegavske moved the previous question.

    Motion carried.

    The question being on the passage of Senate Bill No. 38.

    Roll call on Senate Bill No. 38:

    Yeas—17.

    Nays—Carlton, Coffin, Neal—3.

    Excused—Care.

    Senate Bill No. 38 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 53.

    Bill read third time.

    Roll call on Senate Bill No. 53:

    Yeas—13.

    Nays—Carlton, Cegavske, Nolan, O'Connell, Rawson, Titus, Wiener—7.

    Excused—Care.

    Senate Bill No. 53 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 102.

    Bill read third time.

    Roll call on Senate Bill No. 102:

    Yeas—17.

    Nays—Carlton, Neal, Titus—3.

    Excused—Care.

    Senate Bill No. 102 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Tiffany gave notice that on the next legislative day she would move to reconsider the vote whereby Senate Bill No. 53 was this day passed.

GENERAL FILE AND THIRD READING

    Senate Bill No. 124.

    Bill read third time.

    Roll call on Senate Bill No. 124:

    Yeas—20.

    Nays—None.

    Excused—Care.

    Senate Bill No. 124 having received a two-thirds majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 234.

    Bill read third time.

    Roll call on Senate Bill No. 234:

    Yeas—20.

    Nays—None.

    Excused—Care.

    Senate Bill No. 234 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 241.

    Bill read third time.

    Remarks by Senator Titus.

    Roll call on Senate Bill No. 241:

    Yeas—17.

    Nays—Carlton, Neal, Titus—3.

    Excused—Care.

    Senate Bill No. 241 having received a two-thirds majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 317.

    Bill read third time.

    Roll call on Senate Bill No. 317:

    Yeas—20.

    Nays—None.

    Excused—Care.

    Senate Bill No. 317 having received a constitutional majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senate Bill No. 458.

    Bill read third time.

    Remarks by Senators Neal and Rawson.

    Senator Neal requested that the following remarks be entered in the Journal.

    Senator Neal:

    Madam President, I would like to ask the chairman, does this bill eliminate the Fire Marshall from looking at the sprinkler system in southern Nevada?

    Senator Rawson:

    Thank you, Madam President. We are assured that it does not. It is still a requirement that any local building ordinance be as restrictive as the State’s regulation on this. We, specifically, discussed this, which concerns the Senator, and there would not be an elimination of work he did following the MGM Grand Hotel fire in 1980. Therefore, it is my understanding that those regulations are still enforced and they are not degraded at all.

    Roll call on Senate Bill No. 458:

    Yeas—20.

    Nays—None.

    Excused—Care.

    Senate Bill No. 458 having received a two-thirds majority, Madam President declared it passed, as amended.

    Bill ordered transmitted to the Assembly.

    Senator Raggio moved that the Senate recess subject to the call of the Chair.

    Motion carried.

    Senate in recess at 11:49 a.m.

SENATE IN SESSION

    At 11:58 p.m.

    President Hunt presiding.

    Quorum present.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved to proceed to the Second Reading File on the first agenda followed by the Second Reading File on the second agenda.

    Motion carried.

SECOND READING AND AMENDMENT

    Senate Bill No. 80.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 80.

Amend section 1, page 2, by deleting lines 1 through 22 and inserting:

    “3.  The clerk of Carson City is ex officio the recorder of Carson City.

    4.  The clerk of a county whose population is 400,000 or more is ex officio the recorder of the county.

    5.  A county clerk, when acting in the capacity of county recorder of the county:

    (a) Is not entitled to receive additional compensation for acting in the capacity of county recorder of the county; and

    (b) Shall comply with the provisions of this chapter and all other laws of this state relating to county recorders.”.

    Amend the bill as a whole by deleting sec. 3 and renumbering sec. 4 as sec. 3.

    Amend sec. 4, page 3, by deleting line 19 and inserting:

    “Sec. 4.  1.  Except as otherwise provided in subsection 2, this act becomes effective on July 1, 2003.

    2.  The amendatory provisions of section 1 of this act made to subsection 4 of NRS 247.010 are not effective until the earlier of:

    (a) The expiration of the current term of the person serving as county recorder of the county; or

    (b) A vacancy occurring in the office of county recorder of the county.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to county government; requiring the clerk of certain counties to serve ex officio as the recorder of such counties; setting forth certain requirements pertaining to a clerk of a county who serves ex officio as the county recorder of the county; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Requires county clerk of certain counties to serve ex officio as county recorder of such counties. (BDR 20‑418)”.

    Senator O'Connell moved the adoption of the amendment.

    Remarks by Senators O'Connell and Mathews.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 133.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 107.

    Amend the bill as a whole by deleting sections 1 through 4 and adding new sections designated sections 1 through 3, following the enacting clause, to read as follows:

    “Section 1.  Chapter 630 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Except as otherwise provided in NRS 630.161, the Board may issue a restricted license to a person who intends to practice medicine in this state as a psychiatrist in a mental health center of the Division under the direct supervision of a psychiatrist who holds an unrestricted license to practice medicine pursuant to this chapter.

    2.  A person who applies for a restricted license pursuant to this section is not required to take or pass a written examination as to his qualifications to practice medicine pursuant to paragraph (e) of subsection 2 of NRS 630.160, but the person must meet all other conditions and requirements for an unrestricted license to practice medicine pursuant to this chapter.

    3.  If the Board issues a restricted license pursuant to this section, the person who holds the restricted license may practice medicine in this state only as a psychiatrist in a mental health center of the Division and only under the direct supervision of a psychiatrist who holds an unrestricted license to practice medicine pursuant to this chapter.

    4.  If a person who holds a restricted license issued pursuant to this section ceases to practice medicine in this state as a psychiatrist in a mental health center of the Division:

    (a) The Division shall notify the Board; and

    (b) Upon receipt of such notification, the restricted license expires automatically.

    5.  The Board may renew or modify a restricted license issued pursuant to this section, unless the restricted license has expired automatically or has been revoked.

    6.  Each person who holds a restricted license issued pursuant to this section and who accepts the privilege of practicing medicine in this state pursuant to the provisions of the restricted license shall be deemed to have given his consent to the revocation of the restricted license at any time by the Board for any of the grounds provided in NRS 630.161 or 630.301 to 630.3065, inclusive, or for any violation of the provisions of this section.

    7.  The provisions of this section do not limit the authority of the Board to issue a restricted license to an applicant in accordance with any other provision of this chapter.

    8.  As used in this section:

    (a) “Division” means the Division of Mental Health and Developmental Services of the Department of Human Resources.

    (b) “Mental health center” has the meaning ascribed to it in NRS 433.144.

    Sec. 2.  NRS 630.160 is hereby amended to read as follows:

    630.160  1.  Every person desiring to practice medicine must, before beginning to practice, procure from the Board a license authorizing him to practice.

    2.  Except as otherwise provided in NRS 630.161 [or 630.164,] , 630.164 and section 1 of this act, a license may be issued to any person who:

    (a) Is a citizen of the United States or is lawfully entitled to remain and work in the United States;

    (b) Has received the degree of doctor of medicine from a medical school:

        (1) Approved by the Liaison Committee on Medical Education of the American Medical Association and Association of American Medical Colleges; or

        (2) Which provides a course of professional instruction equivalent to that provided in medical schools in the United States approved by the Liaison Committee on Medical Education;

    (c) Has passed:

        (1) All parts of the examination given by the National Board of Medical Examiners;

        (2) All parts of the Federation Licensing Examination;

        (3) All parts of the United States Medical Licensing Examination;

        (4) All parts of a licensing examination given by any state or territory of the United States, if the applicant is certified by a specialty board of the American Board of Medical Specialties;

        (5) All parts of the examination to become a licentiate of the Medical Council of Canada; or

        (6) Any combination of the examinations specified in subparagraphs (1), (2) and (3) that the Board determined to be sufficient;

    (d) Has completed 36 months of progressive postgraduate:

        (1) Education as a resident in the United States or Canada in a program approved by the Board, the Accreditation Council for Graduate Medical Education of the American Medical Association or the Coordinating Council of Medical Education of the Canadian Medical Association; or

        (2) Fellowship training in the United States or Canada approved by the Board or the Accreditation Council for Graduate Medical Education; and

    (e) Passes a written or oral examination, or both, as to his qualifications to practice medicine and provides the Board with a description of the clinical program completed demonstrating that the applicant’s clinical training met the requirements of paragraph (b).

    Sec. 3.  This act becomes effective on July 1, 2003.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to psychiatrists; authorizing the Board of Medical Examiners to issue restricted licenses that allow certain psychiatrists to practice medicine at certain mental health centers; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Authorizes Board of Medical Examiners to issue restricted licenses that allow certain psychiatrists to practice medicine at certain mental health centers. (BDR 54‑508)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 144.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 75.

    Amend sec. 2, page 2, by deleting lines 8 through 16 and inserting: “be charged only one time for each grant awarded in an amount that is based on the direct costs attributable to administering the grant by one grants administrator and any associated travel, services, supplies and equipment.”.

    Amend sec. 3, page 2, by deleting lines 35 through 37 and inserting: “grants include, without limitation, costs for the salary, travel expenses and per diem allowances of the person whose duty is to administer the federal grants.”.

    Senator Hardy moved the adoption of the amendment.

    Remarks by Senator Hardy.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 201.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 280.

Amend section 1, page 1, by deleting line 6 and inserting:

“[b] 2.  A fee, not to exceed [$5,000] $15,000 per year, to be paid by”.

    Amend section 1, page 2, by deleting line 5 and inserting:

“[c] 3.  A fee, not to exceed $2,000 per year, to be paid by”.

    Amend section 1, page 2, line 16, by deleting “[of $500]” and inserting “of $500”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to hazardous materials; revising the limitations on the amount of certain fees that the State Emergency Response Commission may impose; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Revises limitations on amount of fees that State Emergency Response Commission may impose for certain services of Commission or activities relating to extremely hazardous materials. (BDR 40‑1047)”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 306.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 357.

    Amend the bill as a whole by deleting sections 1 and 2 and adding new sections designated sections 1 through 3 and the text of the repealed section, following the enacting clause, to read as follows:

    “Section 1.  Chapter 396 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  The Board of Regents may grant a waiver of tuition, registration fees and laboratory fees for any member of the active Nevada National Guard, including, without limitation, a recruit, who attends a school within the System as a full-time or part-time student.

    2.  To be eligible for a waiver pursuant to subsection 1, a person must:

    (a) Be a resident of the State of Nevada at the beginning of and throughout the entire semester for which the waiver is granted;

    (b) Be a member in good standing of the active Nevada National Guard, including, without limitation, a recruit, at the beginning of and throughout the entire semester for which the waiver is granted; and

    (c) Maintain at least a 2.0 grade-point average, on a 4.0 grading scale, each semester, or the equivalent of a 2.0 grade-point average if a different grading scale is used.

    3.  The Board of Regents may request the Adjutant General to verify the membership in the active Nevada National Guard of a person who is seeking or has been granted a waiver of tuition, registration fees and laboratory fees pursuant to subsection 1. The Adjutant General shall, upon receiving such a request, notify the Board of Regents in writing concerning the status and dates of membership of that person in the active Nevada National Guard.

    4.  If a waiver is granted pursuant to subsection 1 for a recruit and the recruit does not enter full-time National Guard duty within 1 year after enlisting, the recruit shall reimburse the Board of Regents for all tuition, registration fees and laboratory fees waived on behalf of the recruit if his failure to enter full-time National Guard duty is attributable to his own conduct.

    5.  As used in this section:

    (a) “Full-time National Guard duty” has the meaning ascribed to it in 32 U.S.C § 101(19).

    (b) “Recruit” means a person who has enlisted in the Nevada National Guard but has not begun his required military duty.

    Sec. 2.  NRS 412.143 is hereby repealed.

    Sec. 3.  This act becomes effective on July 1, 2003.

TEXT OF REPEALED SECTION

    412.143  Educational benefits.

    1.  The Adjutant General may authorize the payment of no more than 100 percent of the consolidated fee each semester for each member of the active Nevada National Guard who attends one of the universities within the University and Community College System of Nevada as a full-time or part-time student from money appropriated for this purpose.

    2.  The Adjutant General may authorize the payment of no more than 100 percent of the credit-hour cost each semester for each member of the active Nevada National Guard who attends one of the community colleges within the University and Community College System of Nevada as a full-time or part-time student from money appropriated for this purpose.

    3.  To be eligible to receive benefits, a person must be a member in good standing of the active Nevada National Guard at the beginning of and throughout the entire semester for which benefits are received.”.

    Senator O'Connell moved the adoption of the amendment.

    Remarks by Senators O'Connell, Neal and Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 354.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 456.

    Amend the bill as a whole by deleting sections 1 and 2 and adding new sections designated sections 1 through 4, following the enacting clause, to read as follows:

    “Section 1.  NRS 278.372 is hereby amended to read as follows:

    278.372  1.  The final map must be clearly and legibly drawn in permanent black ink upon good tracing cloth or produced by the use of other materials of a permanent nature generally used for such purpose in the engineering profession. Affidavits, certificates and acknowledgments must be legibly stamped or printed upon the final map with permanent black ink.

    2.  The size of each sheet of the final map must be 24 by 32 inches. A marginal line must be drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom, and right edges, and of 2 inches at the left edge along the 24‑inch dimension.

    3.  The scale of the final map must be large enough to show all details clearly. The final map must have a sufficient number of sheets to accomplish this end.

    4.  Each sheet of the final map must indicate its particular number, the total number of sheets in the final map and its relation to each adjoining sheet.

    5.  The final map must show all surveyed and mathematical information and data necessary to locate all monuments and to locate and retrace all interior and exterior boundary lines appearing thereon, including the bearings and distances of straight lines, central angle, radii and arc length for all curves and such information as may be necessary to determine the location of the centers of curves.

    6.  Each lot must be numbered or lettered.

    7.  Each street must be named and each block may be numbered or lettered.

    8.  The exterior boundary of the land included within the subdivision must be indicated by graphic border.

    9.  The final map must show [the] :

    (a) The definite location of the subdivision, particularly its relation to surrounding surveys.

    [10.  The final map must show the]

    (b) The area of each lot and the total area of the land in the subdivision in the following manner:

    [(a)] (1) In acres, calculated to the nearest one-hundredth of an acre, if the area is 2 acres or more; or

    [(b)] (2) In square feet if the area is less than 2 acres.

    [11.] (c) Any roads or easements of access which the owner intends to offer for dedication.

    (d) Any easements for public utilities which exist or are proposed.

    (e) Any easements for community antenna television within the franchise area of a community antenna television company.

    10.  The final map must also satisfy any additional survey and map requirements, including the delineation of Nevada state plane coordinates established pursuant to chapter 327 of NRS, for any corner of the subdivision or any other point prescribed by the local ordinance.

    Sec. 2.  NRS 278.374 is hereby amended to read as follows:

    278.374  1.  Except as otherwise provided in subsection 2, a final map presented for filing must include a certificate signed and acknowledged, in the manner provided in NRS 240.1665 or 240.167, by each person who is an owner of the land:

    (a) Consenting to the preparation and recordation of the final map.

    (b) Offering for dedication that part of the land which the person wishes to dedicate for public use, subject to any reservation contained therein.

    (c) Reserving any parcel from dedication.

    (d) Granting any permanent easement for utility or community antenna television cable installation or access, as designated on the final map, together with a statement approving such easement, signed by the public utility , community antenna television company or person in whose favor the easement is created or whose services are required.

    2.  If the map presented for filing is an amended map of a common-interest community, the certificate need only be signed and acknowledged by a person authorized to record the map under chapter 116 of NRS.

    3.  A final map of a common-interest community presented for recording and, if required by local ordinance, a final map of any other subdivision presented for recording must include:

    (a) A report from a title company in which the title company certifies that it has issued a guarantee for the benefit of the local government which lists the names of:

        (1) Each owner of record of the land to be divided; and

        (2) Each holder of record of a security interest in the land to be divided, if the security interest was created by a mortgage or a deed of trust.

The guarantee accompanying a final map of a common-interest community must also show that there are no liens of record against the common-interest community or any part thereof for delinquent state, county, municipal, federal or local taxes or assessments collected as taxes or special assessments.

    (b) The written consent of each holder of record of a security interest listed pursuant to subparagraph (2) of paragraph (a), to the preparation and recordation of the final map. A holder of record may consent by signing:

        (1) The final map; or

        (2) A separate document that is filed with the final map and declares his consent to the division of land.

    4.  For the purpose of this section the following shall be deemed not to be an interest in land:

    (a) A lien for taxes or special assessments.

    (b) A trust interest under a bond indenture.

    5.  As used in this section, “guarantee” means a guarantee of the type filed with the Commissioner of Insurance pursuant to paragraph (e) of subsection 1 of NRS 692A.120.

    Sec. 3.  NRS 278.4713 is hereby amended to read as follows:

    278.4713  1.  Unless the filing of a tentative map is waived, a person who proposes to make a division of land pursuant to NRS 278.471 to 278.4725, inclusive, must first:

    (a) File a tentative map for the area in which the land is located with the planning commission or its designated representative or with the clerk of the governing body if there is no planning commission; and

    (b) Pay a filing fee of no more than $750 set by the governing body.

    2.  This map must be:

    (a) Entitled “Tentative Map of Division into Large Parcels”; and

    (b) Prepared and certified by a professional land surveyor.

    3.  This map must show:

    (a) The approximate, calculated or actual acreage of each lot and the total acreage of the land to be divided.

    (b) Any roads or easements of access which exist, are proposed in the applicable master plan or are proposed by the person who intends to divide the land.

    (c) Any easements for public utilities which exist or which are proposed.

    (d) Any easements for community antenna television within the franchise area of a community antenna television company.

    (e) Any existing easements for irrigation or drainage, and any normally continuously flowing watercourses.

    [(e)] (f) An indication of any existing road or easement which the owner does not intend to dedicate.

    [(f)] (g) The name and address of the owner of the land.

    Sec. 4.  NRS 278.472 is hereby amended to read as follows:

    278.472  1.  After the planning commission or the governing body or its authorized representative has approved the tentative map or waived the requirement of its filing, or 60 days after the date of its filing, whichever is earlier, the person who proposes to divide the land may file a final map of the division with the governing body or its authorized representative or, if authorized by the governing body, with the planning commission. The map must be accompanied by a written statement signed by the treasurer of the county in which the land to be divided is located indicating that all property taxes on the land for the fiscal year have been paid.

    2.  This map must be:

    (a) Entitled “Map of Division into Large Parcels.”

    (b) Filed with the governing body or its authorized representative or, if authorized by the governing body, with the planning commission not later than 1 year after the date that the tentative map was first filed with the planning commission or the governing body or its authorized representative or that the requirement of its filing was waived.

    (c) Prepared by a professional land surveyor.

    (d) Based upon an actual survey by the preparer and show the date of the survey and contain the certificate of the surveyor required pursuant to NRS 278.375.

    (e) Clearly and legibly drawn in permanent black ink upon good tracing cloth or produced by the use of other materials of a permanent nature generally used for this purpose in the engineering profession. Affidavits, certificates and acknowledgments must be legibly stamped or printed upon the map with permanent black ink.

    (f) Twenty-four by 32 inches in size with a marginal line drawn completely around each sheet, leaving an entirely blank margin of 1 inch at the top, bottom, and right edges, and of 2 inches at the left edge along the 24‑inch dimension.

    (g) Of scale large enough to show clearly all details.

    3.  The particular number of the sheet and the total number of sheets comprising the map must be stated on each of the sheets, and its relation to each adjoining sheet must be clearly shown.

    4.  This map must show and define:

    (a) All subdivision lots by the number and actual acreage of each lot.

    (b) Any roads or easements of access which exist and which the owner intends to offer for dedication, any roads or easements of access which are shown on the applicable master plan and any roads or easements of access which are specially required by the planning commission or the governing body or its authorized representative.

    (c) Any easements for public utilities which exist or are proposed.

    (d) Any easements for community antenna television within the franchise area of a community antenna television company.

    (e) Any existing easements for irrigation or drainage, and any normally continuously flowing watercourses.”.

    Amend the title of the bill by deleting the first through fourth lines and inserting:

    “AN ACT relating to property; providing that certain temporary and final maps for a subdivision must show specified easements; requiring that the certificate included with certain final maps grant specified permanent easements designated in the final map; and”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Revising certain provisions relating to temporary and final maps for subdivisions of land. (BDR 22‑598)”.

    Senator Tiffany moved the adoption of the amendment.

    Remarks by Senator Tiffany.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 400.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 309.

    Amend the bill as a whole by deleting sections 1 through 32 and adding new sections designated sections 1 through 29, following the enacting clause, to read as follows:

    “Section 1.  Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 8, inclusive, of this act.

    Sec. 2.  “Affiliate of an incumbent local exchange carrier” or “affiliate” means a competitive provider of telecommunication service that is controlled by or under common control with an incumbent local exchange carrier to the extent the competitive provider of telecommunication service is doing business within any service territory in which its affiliated incumbent local exchange carrier has been designated by the Commission as the provider of last resort of basic service.

    Sec. 3.  “Deregulated service” means:

    1.  Any voice messaging service or other information service; or

    2.  Any telecommunication service that the Commission classifies as a deregulated service pursuant to NRS 704.6896.

    Sec. 4.  1.  “PAR carrier” means an incumbent local exchange carrier that is regulated under a plan of alternative regulation approved by the Commission pursuant to subsection 4 of NRS 704.040.

    2.  The term includes, but is not limited to, an electing PAR carrier.

    Sec. 5.  “Telecommunication” means the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information sent and received, regardless of the facilities used.

    Sec. 6.  “Telecommunication service” means to offer, for a fee:

    1.  Any telecommunication directly to the public; or

    2.  Any access service to interexchange carriers.

    Sec. 7.  In exercising flexibility in the pricing or terms of its services pursuant to NRS 704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of this act, a PAR carrier shall not engage in any anticompetitive act or practice or unreasonably discriminate among similarly situated customers.

    Sec. 8.  1.  Except as otherwise provided in subsection 2, the Commission shall not regulate any broadband service, including imposing any requirements relating to the terms, conditions, rates or availability of broadband service.

    2.  The provisions of subsection 1 do not:

    (a) Limit or modify the duties of an incumbent local exchange carrier or an affiliate of an incumbent local exchange carrier to provide unbundled access to network elements to the extent required under 47 U.S.C. §§ 251 and 252, and 47 C.F.R. § 51.319 or any successor regulations issued by the Federal Communications Commission, at rates determined in accordance with the standards established by the Federal Communications Commission pursuant to 47 C.F.R. §§ 51.503 to 51.513, inclusive, or any successor regulations; or

    (b) Prohibit the Commission from:

        (1) Considering any revenues, costs and expenses that a public utility derives from providing a broadband service, if the Commission is determining the rates of the public utility under a general rate application that is filed pursuant to subsection 3 of NRS 704.110;

        (2) Acting on a consumer complaint pursuant to NRS 703.310, if the consumer complaint relates to a broadband service that is provided by a public utility; or

        (3) Including any appropriate gross operating revenue that a public utility derives from providing broadband service when the Commission calculates the gross operating revenue of the public utility for the purposes of levying and collecting the annual assessment in accordance with the provisions of NRS 704.033.

    3.  As used in this section:

    (a) “Affiliate of an incumbent local exchange carrier” has the meaning ascribed to it in section 2 of this act.

    (b) “Broadband service” means any two-way service that transmits information at a rate that is generally not less than 190 kilobits per second in at least one direction.

    (c) “Incumbent local exchange carrier” has the meaning ascribed to it in NRS 704.68932.

    Sec. 9.  NRS 704.020 is hereby amended to read as follows:

    704.020  1.  “Public utility” or “utility” includes:

    (a) Any person who owns, operates, manages or controls any railroad or part of a railroad as a common carrier in this state, or cars or other equipment used thereon, or bridges, terminals, or sidetracks, or any docks or wharves or storage elevators used in connection therewith, whether or not they are owned by the railroad.

    (b) [Telephone companies and other companies which provide telecommunication or a related] Any telephone company that provides a telecommunication service to the public, but only with regard to those operations of the telephone company which consist of providing a telecommunication service to the public.

    (c) [Radio] Any radio or broadcasting [instrumentalities providing] company or instrumentality that provides a common or contract service.

    (d) [All companies which own] Any company that owns cars of any kind or character, used and operated as a part of railroad trains, in or through this state. All duties required of and penalties imposed upon any railroad or any officer or agent thereof are, insofar as applicable, required of and imposed upon the owner or operator of any telephone [, radio and broadcasting companies, companies providing telecommunication or related services] company that provides a telecommunication service to the public , any radio or broadcasting company or instrumentality that provides a common or contract service and [companies which own] any company that owns cars of any kind or character, used and operated as a part of railroad trains in or through this state, and their officers and agents, and the Commission may supervise and control all such companies , instrumentalities and persons to the same extent as railroads.

    2.  “Public utility” or “utility” also includes:

    (a) Any person who owns, operates or controls any ditch, flume, tunnel or tunnel and drainage system, charging rates, fares or tolls, directly or indirectly.

    (b) Any plant or equipment, or any part of a plant or equipment, within this state for the production, delivery or furnishing for or to other persons, including private or municipal corporations, heat, gas, coal slurry, light, power in any form or by any agency, water for business, manufacturing, agricultural or household use, or sewerage service, whether or not within the limits of municipalities.

    (c) Any system for the distribution of liquefied petroleum gas to 10 or more users.

The Commission may supervise, regulate and control all such utilities, subject to the provisions of this chapter and to the exclusion of the jurisdiction, regulation and control of such utilities by any municipality, town or village, unless otherwise provided by law.

    3.  The provisions of this chapter and the term “public utility” apply to all railroads, express companies , car companies and all associations of persons, whether or not incorporated, that do any business as a common carrier upon or over any line of railroad within this state.

    Sec. 10.  NRS 704.040 is hereby amended to read as follows:

    704.040  1.  Every public utility shall furnish reasonably adequate service and facilities, and the charges made for any service rendered or to be rendered, or for any service in connection therewith or incidental thereto, must be just and reasonable.

    2.  Every unjust and unreasonable charge for service of a public utility is unlawful.

    3.  The Commission may exempt, to the extent it deems reasonable, services related to telecommunication or public utilities which provide telecommunication services from any or all of the provisions of this chapter, upon a determination after hearing that the services are competitive or discretionary and that regulation thereof is unnecessary. For the purposes of this subsection, basic local exchange service and access services provided to interexchange carriers are not discretionary.

    4.  The Commission shall adopt regulations necessary to establish [an alternative] a plan of alternative regulation [of] for a public utility that provides telecommunication services. The [alternative] plan of alternative regulation may include, but is not limited to, provisions that:

    (a) Allow adjustment of the rates charged by a public utility that provides telecommunication services during the period in which the utility elects the [alternative] plan of alternative regulation.

    (b) Provide for flexibility of pricing for discretionary services and services that are competitive.

    (c) Specify the provisions of this chapter and chapter 707 of NRS that do not apply to a public utility that elects to be regulated under the [alternative plan.] plan of alternative regulation.

    (d) Except as otherwise provided in this paragraph and NRS 704.68952, if the public utility is an incumbent local exchange carrier, allow the incumbent local exchange carrier to select the duration of the period in which the incumbent local exchange carrier is to be regulated under the plan of alternative regulation. The incumbent local exchange carrier may not select a period that is less than 3 years or more than 5 years. The provisions of this paragraph do not apply to a plan of alternative regulation of an incumbent local exchange carrier regulated under a plan of alternative regulation that was approved by the Commission before the effective date of this act.

    5.  A public utility that elects to be regulated under [the alternative] a plan of alternative regulation established pursuant to subsection 4 is not subject to the remaining provisions of this chapter or chapter 707 of NRS to the extent specified pursuant to paragraph (c) of subsection 4.

    6.  All providers of telecommunication services which offer the same or similar service must be subject to fair and impartial regulation, to promote adequate, economical and efficient service.

    7.  The Commission may provide for the levy and collection of an assessment, in an amount determined by the Commission, from a public utility that provides telecommunication services in order to maintain the availability of telephone service. Assessments levied pursuant to this subsection must be maintained in a separate fund established by the Commission. The Commission shall contract with an independent administrator to administer the fund pursuant to open competitive bidding procedures established by the Commission. The independent administrator shall collect the assessments levied and distribute them from the fund pursuant to a plan which has been approved by the Commission. Money in the fund must be used for the sole purpose of maintaining the availability of telephone service.

    8.  [For the purposes of] As used in this section [, “interexchange] :

    (a) “Incumbent local exchange carrier” has the meaning ascribed to it in NRS 704.68932.

    (b) “Interexchange carrier” means any person providing intrastate telecommunications service for a fee between two or more exchanges.

    Sec. 11.  NRS 704.100 is hereby amended to read as follows:

    704.100  Except as otherwise provided in NRS 704.075 and 704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of this act or as may otherwise be provided by the Commission pursuant to NRS 704.095 or 704.097 [:] or pursuant to the regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:

    1.  A public utility shall not make changes in any schedule, unless the public utility:

    (a) Files with the Commission an application to make the proposed changes and the Commission approves the proposed changes pursuant to NRS 704.110; or

    (b) Files the proposed changes with the Commission using a letter of advice in accordance with the provisions of subsection 4.

    2.  A public utility shall post copies of all proposed schedules and all new or amended schedules in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

    3.  A public utility may not set forth as justification for a rate increase any items of expense or rate base that previously have been considered and disallowed by the Commission, unless those items are clearly identified in the application and new facts or considerations of policy for each item are advanced in the application to justify a reversal of the prior decision of the Commission.

    4.  Except as otherwise provided in subsection 5, if the proposed change in any schedule does not change any rate or will result in an increase in annual gross operating revenue, as certified by the public utility, in an amount that does not exceed $2,500:

    (a) The public utility may file the proposed change with the Commission using a letter of advice in lieu of filing an application; and

    (b) The Commission shall determine whether it should dispense with a hearing regarding the proposed change.

    5.  If the applicant is a public utility furnishing telephone service and the proposed change in any schedule will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that does not exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less, the Commission shall determine whether it should dispense with a hearing regarding the proposed change.

    6.  In making the determination pursuant to subsection 4 or 5, the Commission shall first consider all timely written protests, any presentation that the regulatory operations staff of the Commission may desire to present, the application of the public utility and any other matters deemed relevant by the Commission.

    Sec. 12.  NRS 704.110 is hereby amended to read as follows:

    704.110  Except as otherwise provided in NRS 704.075 and 704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of this act or as may otherwise be provided by the Commission pursuant to NRS 704.095 or 704.097 [:] or pursuant to the regulations adopted by the Commission in accordance with subsection 4 of NRS 704.040:

    1.  If a public utility files with the Commission an application to make changes in any schedule, including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the Commission shall investigate the propriety of the proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an application to clear its deferred accounts, the Consumer’s Advocate shall be deemed a party of record.

    2.  Except as otherwise provided in [subsection 3,] subsections 3 and 11, if a public utility files with the Commission an application to make changes in any schedule, not later than 180 days after the date on which the application is filed, the Commission shall issue a written order approving or disapproving, in whole or in part, the proposed changes.

    3.  If a public utility files with the Commission a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. In determining whether to approve or disapprove any increased rates, the Commission shall consider evidence in support of the increased rates based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the Commission and the Commission has approved the increased rates. The Commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility’s plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the date on which the certification required by this subsection is filed with the Commission, or within 180 days after the date on which the general rate application is filed with the Commission, whichever time is longer, the Commission shall make such order in reference to the increased rates as is required by this chapter. An electric utility shall file a general rate application pursuant to this subsection at least once every 24 months.

    4.  If a public utility files with the Commission an application to make changes in any schedule and the Commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the Commission.

    5.  If a public utility files with the Commission a general rate application, the public utility shall not file with the Commission another general rate application until all pending general rate applications filed by that public utility have been decided by the Commission unless, after application and hearing, the Commission determines that a substantial financial emergency would exist if the public utility is not permitted to file another general rate application sooner. The provisions of this subsection do not prohibit the public utility from filing with the Commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 6 or an application to clear its deferred accounts pursuant to subsection 7, if the public utility is otherwise authorized by those provisions to file such an application.

    6.  A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to an electric utility using deferred accounting pursuant to NRS 704.187.

    7.  Except as otherwise provided in subsection 8 and subsection 4 of NRS 704.100, if an electric utility using deferred accounting pursuant to NRS 704.187 files an application to clear its deferred accounts and to change one or more of its rates based upon changes in the costs for purchased fuel or purchased power, the Commission, after a public hearing and by an appropriate order:

    (a) Shall allow the electric utility to clear its deferred accounts by refunding any credit balance or recovering any debit balance over a period not to exceed 3 years, as determined by the Commission.

    (b) Shall not allow the electric utility to recover any debit balance, or portion thereof, in an amount that would result in a rate of return during the period of recovery that exceeds the rate of return authorized by the Commission in the most recently completed rate proceeding for the electric utility.

    8.  Before allowing an electric utility to clear its deferred accounts pursuant to subsection 7, the Commission shall determine whether the costs for purchased fuel and purchased power that the electric utility recorded in its deferred accounts are recoverable and whether the revenues that the electric utility collected from customers in this state for purchased fuel and purchased power are properly recorded and credited in its deferred accounts. The Commission shall not allow the electric utility to recover any costs for purchased fuel and purchased power that were the result of any practice or transaction that was undertaken, managed or performed imprudently by the electric utility.

    9.  If an electric utility files an application to clear its deferred accounts pursuant to subsection 7 while a general rate application is pending, the electric utility shall:

    (a) Submit with its application to clear its deferred accounts information relating to the cost of service and rate design; and

    (b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

    10.  A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility.

    11.  A PAR carrier may, in accordance with this section and NRS 704.100, file with the Commission a request to approve or change any schedule to provide volume or duration discounts to rates for telecommunication service for an offering made to all or any class of business customers. The Commission may conduct a hearing relating to the request, which must occur within 45 days after the date the request is filed with the Commission. The request and schedule shall be deemed approved if the request and schedule are not disapproved by the Commission within 60 days after the date the Commission receives the request.

    12.  For the purpose of determining the rates of a public utility that provides telecommunication services under a general rate application filed pursuant to subsection 3, the Commission shall not consider any revenue, cost or expense that the public utility derives from any service that is identified as nonregulated in the cost allocation manual of the public utility filed with the Federal Communications Commission pursuant to 47 C.F.R. § 64.903.

    13.  As used in this section [, “electric] :

    (a) “Electric utility” has the meaning ascribed to it in NRS 704.187.

    (b) “PAR carrier” has the meaning ascribed to it in section 4 of this act.

    Sec. 13.  NRS 704.68904 is hereby amended to read as follows:

    704.68904  As used in NRS 704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 704.68908 to 704.68944, inclusive, and sections 2 to 6, inclusive, of this act, have the meanings ascribed to them in those sections.

    Sec. 14.  NRS 704.68908 is hereby amended to read as follows:

    704.68908  “Affected person” means:

    1.  A public utility affected by an action of [an electing] a PAR carrier or an action of the Commission relating to [an electing] a PAR carrier;

    2.  A person whose utility service or rates are affected by an action of [an electing] a PAR carrier or an action of the Commission relating to [an electing] a PAR carrier;

    3.  A competitive supplier; or

    4.  The Bureau of Consumer Protection in the Office of the Attorney General.

    Sec. 15.  NRS 704.68912 is hereby amended to read as follows:

    704.68912  “Basic network service” means the provision of any of the following services, unless the [service has been] Commission has reclassified the service as a competitive [,] service, a deregulated service, a discretionary service or an other essential service [by the Commission] pursuant to NRS 704.6896:

    1.  Farmer line service;

    2.  Flat rate service for residential lines;

    3.  Measured rate service for residential lines;

    4.  Flat rate service for residential trunk lines;

    5.  Flat rate service for business lines;

    6.  Measured rate service for business lines;

    7.  Flat rate service for business trunk lines;

    8.  Measured rate service for business trunk lines;

    9.  Suburban service access lines;

    10.  Toll station service access lines;

    11.  Universal lifeline service access lines;

    12.  Access to emergency 911 service; and

    13.  The first single-line directory listing.

    Sec. 16.  NRS 704.6892 is hereby amended to read as follows:

    704.6892  “Competitive supplier” means a person who:

    1.  Is a competitor of [an electing] a PAR carrier with respect to a service performed by the [electing] PAR carrier; or

    2.  Wants to enter into competition with [an electing] a PAR carrier.

    Sec. 17.  NRS 704.68924 is hereby amended to read as follows:

    704.68924  “Discretionary service” means any telecommunication service which is not otherwise classified as a basic network service, a competitive service , a deregulated service or [any] an other essential service, or which is reclassified as a discretionary service pursuant to NRS 704.6896.

    Sec. 18.  NRS 704.68928 is hereby amended to read as follows:

    704.68928  “Electing PAR carrier” means [an incumbent local exchange carrier regulated under an alternative plan of regulation pursuant to NRS 704.040 that has elected also to be regulated pursuant to NRS 704.68904 to 704.68984, inclusive, by filing with the Commission a statement] a PAR carrier which:

    1.  Makes an election to become an electing PAR carrier pursuant to NRS 704.68948 [.] ; and

    2.  Is regulated in the manner described in that section.

    Sec. 19.  NRS 704.68948 is hereby amended to read as follows:

    704.68948  [An incumbent local exchange carrier that is regulated under an alternative plan of regulation pursuant to NRS 704.040 may elect also to be]

    1.  A PAR carrier may make an election to become an electing PAR carrier that is regulated pursuant to NRS 704.68952, 704.68956 and 704.6898. Such regulation is in addition to any other regulation that otherwise applies to the PAR carrier pursuant to NRS 704.68904 to 704.68984, inclusive, [by filing] and sections 2 to 7, inclusive, of this act.

    2.  To make an election pursuant to this section, the PAR carrier must file with the Commission a written statement of its election to [be so regulated.] become an electing PAR carrier. The written statement must:

    (a) Identify the PAR carrier; and

    (b) Include the date that its election becomes effective.

    Sec. 20.  NRS 704.68952 is hereby amended to read as follows:

    704.68952  1.  [An] Except as otherwise provided in this section, if a PAR carrier makes an election to become an electing PAR carrier pursuant to NRS 704.68948, on and after the date that the election becomes effective:

    (a) The electing PAR carrier is not subject to any review of earnings, monitoring of the rate base, or any other regulation by the Commission relating to the net income or rate of return of the electing PAR carrier [, unless the electing carrier files with the Commission a request to:

    (a) Terminate its participation in the alternative plan of regulation pursuant to NRS 704.040; or

    (b) Continue its participation in the alternative plan of regulation pursuant to NRS 704.040.

    2.  Except as otherwise provided in subsection 1, the] ;

    (b) The Commission shall not consider the rate of return, rate base or any other earnings of the electing PAR carrier in connection with any change in rates [.

    3.  Except for an electing carrier that files a request with the Commission pursuant to subsection 1, the] ;

    (c) The Commission shall not decrease the rate of a basic network service provided by the electing PAR carrier unless the electing PAR carrier agrees to the decrease in the rate [.

    4.  Except for a telecommunication service reclassified pursuant to NRS 704.6896, or except where an electing carrier elects to continue participation in an alternative plan of regulation pursuant to paragraph (b) of subsection 1, an] ; and

    (d) The electing PAR carrier shall not , during the term of its plan of alternative regulation, increase any rate that the electing PAR carrier charges for a basic network [services.

    5.] service, other than the rate for a telecommunication service that is:

        (1) Reclassified pursuant to NRS 704.6896; or

        (2) Offered by the electing PAR carrier pursuant to NRS 704.68964, 704.68968 or 704.68972.

    2.  An electing PAR carrier may terminate its plan of alternative regulation at any time by filing with the Commission a notice of its intention to terminate the plan. The termination is effective on the date the electing PAR carrier specifies in the notice.

    3.  If an electing PAR carrier terminates its plan of alternative regulation pursuant to subsection 2, the electing PAR carrier shall file with the Commission a general rate application pursuant to subsection 3 of NRS 704.110 not later than 180 days after the date that the termination of its plan of alternative regulation becomes effective.

    4.  If an electing PAR carrier does not terminate its plan of alternative regulation pursuant to subsection 2, the plan terminates at the end of the first 5-year period after the date the plan becomes effective and at the end of each successive 5-year period after that date unless:

    (a) Not later than 180 days before the end of the first 5-year period after the date the plan becomes effective and at the end of each successive 5-year period after that date, the electing PAR carrier files with the Commission a written request to continue its participation in the plan of alternative regulation for another 5-year period; and

    (b) The Commission grants the written request of the electing PAR carrier to continue its participation in the plan of alternative regulation for another 5-year period in accordance with the provisions of this section.

    5.  If an electing PAR carrier files a written request pursuant to subsection 4, the written request must be accompanied by a written report prepared in a form prescribed by the Commission. The written report must:

    (a) Contain a summary of the operations of the electing PAR carrier for the period covering the immediately preceding 5 fiscal years; and

    (b) Include, but is not limited to, the rate of return and earnings of the electing PAR carrier for the period specified in paragraph (a), other than the rate of return and earnings obtained from deregulated services.

    6.  Not later than 180 days after the date that an electing PAR carrier files a written request pursuant to subsection 4, the Commission shall conduct and complete a proceeding to review the written request and report. The Commission shall not allow any person to be a party to the proceeding other than the electing PAR carrier, the regulatory operations staff of the Commission and the staff of the Bureau of Consumer Protection in the Office of the Attorney General.

    7.  In the proceeding, the Commission shall:

    (a) Determine whether the existing rates of the electing PAR carrier for basic network services are just and reasonable pursuant to subsection 1 of NRS 704.040; and

    (b) Based upon that determination, issue an order which:

        (1) Grants the written request of the electing PAR carrier and authorizes the electing PAR carrier to participate in the plan of alternative regulation for another 5 years; or

        (2) Denies the written request of the electing PAR carrier and directs the electing PAR carrier to file with the Commission a general rate application pursuant to subsection 3 of NRS 704.110 not later than 180 days after the date the Commission issues the order.

    8.  Except for universal service support for lifeline or link-up services provided pursuant to 47 U.S.C. § 214 or as otherwise determined by the Commission, an electing PAR carrier is not eligible to receive money from the fund created pursuant to subsection 7 of NRS 704.040.

    9.  For the purposes of this section:

    (a) The plan of alternative regulation for an electing PAR carrier shall be deemed to have a term of 5 years.

    (b) If a PAR carrier is operating as an electing PAR carrier on July 1, 2003, the first 5-year term for its plan of alternative regulation shall be deemed to begin on July 1, 2003.

    (c) If a PAR carrier makes an election to become an electing PAR carrier after July 1, 2003, the first 5-year term for its plan of alternative regulation shall be deemed to begin on the date that its election becomes effective.

    Sec. 21.  NRS 704.68956 is hereby amended to read as follows:

    704.68956  [Nothing in] The provisions of NRS 704.68904 to 704.68984, inclusive, [authorizes] and sections 2 to 7, inclusive, of this act do not authorize an electing PAR carrier, without the approval of the Commission, to discontinue or otherwise change the terms and conditions relating to the provision of the basic network services identified in subsections 1 to 4, inclusive, of NRS 704.68912, as set forth in the tariffs of the electing PAR carrier that are in effect on October 1, 1999.

    Sec. 22.  NRS 704.6896 is hereby amended to read as follows:

    704.6896  1.  The Commission may, at any time, upon its own motion or that of any person, reclassify a basic network service, except access to emergency 911 service.

    2.  The Commission shall establish by regulation criteria for determining whether a service should be reclassified, except that the Commission shall not adopt criteria for determining whether a service should be reclassified that would deny a request to reclassify a basic network service to another classification of service within an exchange where a competitive supplier operates and provides that service, on the basis that there is not a competitive supplier of that service in any other portion of the State.

    3.  If the Commission receives a written request for reclassification from a PAR carrier, the Commission shall act upon the request not later than 120 days after the date the Commission receives the request.

    Sec. 23.  NRS 704.68964 is hereby amended to read as follows:

    704.68964  1.  [An electing] A PAR carrier may, pursuant to this section and in accordance with NRS 704.68976, exercise flexibility in the pricing , the terms or both the pricing and terms of:

    (a) [Competitive services and discretionary services.] Any competitive service or discretionary service. The Commission shall not specify a maximum rate for any competitive [services] service or discretionary [services of the electing carrier. The electing carrier shall, with regard to any competitive or discretionary service that it provides, set the price of that service above the price floor of the service.

    (b) A] service provided by the PAR carrier.

    (b) Any package of services, which may include basic network services, competitive services, discretionary services , [and] other essential services [.] and services and products that are not subject to the jurisdiction of the Commission. The Commission shall not specify a maximum rate for a package of services provided by the PAR carrier.

    (c) Any tariffed service, if the PAR carrier needs to exercise flexibility in the pricing, the terms or both the pricing and terms of the tariffed service in a contract for service to an individual customer, to respond to competition by one or more competitive suppliers in the market for telecommunication service for business customers. The flexibility exercised by the PAR carrier pursuant to this paragraph:

        (1) May include, but is not limited to, using volume or term discounts, and modifications to tariffed terms and conditions; and

        (2) May not be used to provide volume or duration discounts to rates or modifications to tariffed terms and conditions for telecommunication service for an offering made to all or any class of business customers.

    2.  Except as otherwise provided in this subsection, [an electing] a PAR carrier may, upon [30-days’] 10-days’ notice to the Commission in writing, exercise flexibility in the pricing , the terms or both the pricing and terms of [its] any service or package of services that may be subject to such flexibility pursuant to subsection 1 , and the PAR carrier is exempt, with respect to the pricing of [its] each such service or package of services, from the provisions of NRS 704.100 and 704.110 and the regulations of the Commission relating thereto. The notice must include a description in reasonable detail of:

    (a) The characteristics of [the] each service or package of services that will be subject to such flexibility ; [in pricing;]

    (b) The terms and conditions applicable to [the] each service or package of services;

    (c) The nature of any limitations on the duration or geographical availability of [the] each service or package of services;

    (d) The price or prices of [the services or packages] each service or package of services; [and]

    (e) A certificate which provides that [the electing] :

        (1) The PAR carrier has prepared a cost study of the price floor to support the price or prices [for] of each service that will be subject to such flexibility or each service included in the package of services that will be subject to such flexibility; and [that, on]

        (2) On and after the date on which the notice is filed with the Commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement relating to the service or package of services [.] ; and

    (f) A form of notice that will be posted by the Commission.

The notice requirements of this subsection do not apply to [an electing] a PAR carrier with respect to the pricing or terms of any competitive service or any package of services [or for packages] comprised exclusively of competitive services.

    3.  The price or prices of each service that is subject to flexibility pursuant to this section must not be lower than the price floor for that service. The price [for a] or prices of each package of services that is subject to flexibility pursuant to this section must not be lower than the lesser of:

    (a) The sum of the price floors for each [of the services contained] service included in the package; or

    (b) The sum of the prices of the basic network services, as set forth in the tariffs of the [electing] PAR carrier, and the price floors for each of the other services [contained] included in the package.

    4.  [The Commission shall not specify a maximum rate for a package of services.

    5.  Each of the services] Each service included in a package [pursuant to paragraph (b) of subsection 1] of services that is subject to flexibility pursuant to this section must be made available on an individual basis.

    [6.  An electing]

    5.  A PAR carrier must provide [30-days’] 10-days’ notice to the Commission in writing before the [electing] PAR carrier may implement any amendment or change to [an existing service noticed] a service or package of services which is subject to flexibility pursuant to this section and for which the PAR carrier had previously provided notice to the Commission pursuant to subsection 2.

    6.  Notwithstanding any other provision of law, if a PAR carrier charges a customer a fixed price or amount for a package of services that is subject to flexibility pursuant to this section, the PAR carrier, in any bill or statement for the package of services, is permitted to specify only the fixed price or amount for the package of services and is not required to:

    (a) Identify each separate service or component included in the package of services; or

    (b) Specify the unit price or amount charged for each separate service or component included in the package of services.

    Sec. 24.  NRS 704.68968 is hereby amended to read as follows:

    704.68968  [An electing] A PAR carrier may establish promotional price reductions for services upon a 1-day notice to the Commission. The promotional price reduction for a service may be offered for not more than 90 days during any 12 consecutive months and must be given in all geographic areas served by the [electing] PAR carrier, where facilities permit, on a nondiscriminatory basis during the 12-month period.

    Sec. 25.  NRS 704.68972 is hereby amended to read as follows:

    704.68972  1.  [An electing] A PAR carrier may introduce new services upon [30-days’] 10-days’ notice to the Commission in writing. The notice must include a description in reasonable detail of:

    (a) The characteristics of each new service;

    (b) The terms and conditions applicable to each new service;

    (c) The nature of any limitations on the duration or geographical availability of each new service;

    (d) The price or prices of each new service; and

    (e) A certificate [that] which provides that [the electing] :

        (1) The PAR carrier has prepared a cost study of the price floor to support the price or prices [for] of each new service ; and [that, on]

        (2) On and after the date on which the notice is filed with the Commission, any affected person may, upon request, inspect and copy the cost study, subject to reasonable terms and conditions of any applicable confidentiality and nondisclosure agreement.

    2.  Each new service is subject to the conditions set forth in NRS 704.68964.

    3.  Each new service is exempt from the provisions of NRS 704.100 and 704.110 and the regulations of the Commission relating thereto.

    4.  Unless otherwise classified by the Commission as a [competitive] deregulated service pursuant to its regulations, a new service must be classified as a [discretionary] competitive service for which the Commission shall not specify a maximum rate. The [electing] PAR carrier shall set the price of the new service above the price floor [of the] for that service.

    5.  As used in this section, a “new service” means a telecommunication service:

    (a) That provides a function, feature or capability which is materially different from any service or services previously offered by the carrier; or

    (b) Combines two or more previously provided new services.

    Sec. 26.  NRS 704.68976 is hereby amended to read as follows:

    704.68976  The rates charged by [an electing] a PAR carrier for services, except for competitive services, must be geographically averaged throughout the service territory in which the [electing] PAR carrier is the provider of last resort, as determined pursuant to regulations adopted by the Commission, or within such other smaller geographic area as the Commission deems appropriate to balance the interests of all customers and providers.

    Sec. 27.  NRS 704.6898 is hereby amended to read as follows:

    704.6898  The intrastate access prices charged by an electing PAR carrier must not exceed the interstate access prices charged by the electing PAR carrier as authorized by the Federal Communications Commission for corresponding elements, and any resulting reductions must be offset on a revenue-neutral basis with adjustments to other essential retail services subject to regulation by the Commission.

    Sec. 28.  NRS 704.68984 is hereby amended to read as follows:

    704.68984  The provisions of NRS 704.68904 to 704.68984, inclusive, and sections 2 to 7, inclusive, of this act do not:

    1.  Apply to the Commission in connection with any actions or decisions required or permitted by the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

    2.  Limit or modify the duties of [an electing] a PAR carrier to a competitive supplier regarding the provision of network interconnection, unbundled network elements and resold services under the provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161.

    Sec. 29.  This act becomes effective upon passage and approval.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to communication services; enacting provisions relating to the regulation of telecommunication service and broadband service; revising certain provisions relating to incumbent local exchange carriers that are regulated under a plan of alternative regulation; amending certain requirements and procedures relating to those carriers; revising provisions relating to the classification of certain telecommunication services; revising provisions relating to flexibility in the pricing and terms of certain telecommunication services; prohibiting the Public Utilities Commission of Nevada from regulating broadband service; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to telecommunication service and broadband service. (BDR 58-261)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senators Townsend and Neal.

    Conflict of interest declared by Senator Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 424.

    Bill read second time and ordered to third reading.

    Senate Bill No. 445.

    Bill read second time and ordered to third reading.

    Senate Bill No. 446.

    Bill read second time and ordered to third reading.

    Senate Bill No. 487.

    Bill read second time and ordered to third reading.

    Senate Joint Resolution No. 1.

    Resolution read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 396.

    Amend the preamble of the resolution, pages 1 and 2, by deleting lines 11 through 15 on page 1 and lines 1 through 6 on page 2, and inserting: “Government pursuant to a system that provides an option for a range user to hold water rights for watering livestock solely in his own name; and”.

    Amend the preamble of the resolution, page 2, line 9, by deleting “the three-way” and inserting “that”.

    Amend the preamble of the resolution, page 2, by deleting lines 13 through 15 and inserting: “of 43 C.F.R. § 4120.3-9 and has the effect of significantly interfering with a range user holding such water rights solely in his”.

    Amend the preamble of the resolution, page 2, by deleting lines 26 through 30 and inserting:

    “1.  The State of Nevada could provide a range user the option of holding water rights for watering livestock on public lands in Nevada solely in his own name, without interference, as the State has done successfully for many years;”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Resolution ordered reprinted, engrossed and to third reading.

    Senate Bill No. 100.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor.

    Amendment No. 286

    Amend the bill as a whole by deleting sections 1 through 66 and adding new sections designated sections 1 through 93, following the enacting clause, to read 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.

    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.

    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.

    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:

    (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.

    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:

    (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.

    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:

    (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.

    5.  Notwithstanding any other provision of this section, 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.

    (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.

    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.

    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.

    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. 48.  If a matter governed by this chapter is also governed by chapter 2 of NRS and there is a conflict between the provisions of this chapter and the provisions of 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.]

    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,] 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;

        (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 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.

    (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.

    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.

    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.

    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:

    (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;

    (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.

    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 18 percent per year.

    (b) May include any charges for late payment of the past due fine at a rate established by the association, not to exceed 5 percent of the outstanding balance.

    (c) May include any costs of collecting the past due fine at a rate established by the association:

        (1) Not to exceed $20, if the outstanding balance is less than $200.

        (2) Not to exceed $50, if the outstanding balance is $200 or more, but is less than $500.

        (3) Not to exceed $100, if the outstanding balance is $500 or more, but is less than $1,000.

        (4) Not to exceed $250, if the outstanding balance is $1,000 or more, but is less than $5,000.

        (5) Not to exceed $500, if the outstanding balance is $5,000 or more.

    (d) 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, a collection agency, a community manager and any other person or entity engaged to collect a past due fine may reasonably incur 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. 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 is conducted by secret written ballot, 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 . [, a secret ballot and a return envelope.

    6.] 9.  A quorum is not required for the election of any member of the executive board. If the election is conducted by secret written ballot:

    (a) Only the secret written ballots that are returned to the association may be counted to determine the outcome of the election.

    (b) 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.

    (c) 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, 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.

    3.  If the removal of a member of the executive board is conducted by secret written ballot:

    (a) Only the secret written ballots that are returned to the association may be counted to determine the outcome.

    (b) 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.

    (c) 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.

    4.  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.

    5.  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.

    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;

    (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:

    (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 and, at the request of any member of the executive board, a record of each member’s vote on any matter decided by vote at the meeting; and

    (d) 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.

    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, including, without limitation, a contract with the attorney for the association. If the executive board takes any action regarding a contract, the contract must be made reasonably available for review by the units’ owners of the association.

    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 . [;] The provisions of this paragraph do not permit the executive board to meet in executive session to take any action regarding a contract with the attorney for the association.

    (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.

    [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.]

    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.

    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

    (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

    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. 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.] 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.

    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

    (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 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 [;] , except for those records relating to the salaries and benefits of those employees; and

    (b) The records of the association relating to another unit’s owner [.] , except for those records described in subsection 2.

    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.

    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;

    (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;

    (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.

    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. 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. 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.

    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.

    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.

    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.

    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.”.

    Amend the title of the bill to read as follows:

    “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.”.

    Senator Townsend moved adoption of the amendment.

    Remarks by Senators Townsend, Schneider, Neal and Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 106.

    Bill read second time.

    The following amendment was proposed by the Committee on Judiciary:

    Amendment No. 59.

    Amend the bill as a whole by deleting section 1, renumbering sec. 2 as sec. 4 and adding new sections designated sections 1 through 3, following the enacting clause, to read as follows:

    “Section 1.  NRS 18.005 is hereby amended to read as follows:

    18.005  For the purposes of NRS 18.010 to 18.150, inclusive, the term “costs” means:

    1.  Clerks’ fees.

    2.  Reporters’ fees for depositions, including a reporter’s fee for one copy of each deposition.

    3.  Jurors’ fees and expenses, together with reasonable compensation of an officer appointed to act in accordance with NRS 16.120.

    4.  Fees for witnesses at trial, pretrial hearings and deposing witnesses, unless the court finds that the witness was called at the instance of the prevailing party without reason or necessity.

    5.  Reasonable fees of not more than five expert witnesses in an amount of not more than $1,500 for each witness, unless the court allows a larger fee after determining that the circumstances surrounding the expert’s testimony were of such necessity as to require the larger fee.

    6.  Reasonable fees of necessary interpreters.

    7.  The fee of any sheriff or licensed process server for the delivery or service of any summons or subpoena used in the action, unless the court determines that the service was not necessary.

    8.  The fees of the official reporter or reporter pro tempore.

    9.  Reasonable costs for any bond or undertaking required as part of the action.

    10.  Fees of a court bailiff who was required to work overtime.

    11.  Reasonable costs for telecopies.

    12.  Reasonable costs for photocopies.

    13.  Reasonable costs for long distance telephone calls.

    14.  Reasonable costs for postage.

    15.  Reasonable costs for travel and lodging incurred taking depositions and conducting discovery.

    16.  Fees charged pursuant to section 2 of this act.

    17.  Any other reasonable and necessary expense incurred in connection with the action, including reasonable and necessary expenses for computerized services for legal research.

    Sec. 2.  Chapter 19 of NRS is hereby amended by adding thereto a new section to read as follows:

    1.  Except as otherwise provided in NRS 19.034, on the commencement of any civil action in the district court for which a filing fee is required, the clerk of court shall collect, in addition to any other fee required by law, the following fees in any action that involves more than one plaintiff and one defendant:

    (a) A fee of $30 for each additional plaintiff named in a complaint when the complaint is filed.

    (b) A fee of $30 for each additional defendant named in an answer when the answer is filed, or a fee of $30 for each additional party appearing in the action when the additional party appears in the action.

    (c) If a complaint is amended to name an additional plaintiff or defendant, a fee of $30 for each additional plaintiff or defendant named when the complaint is amended.

    2.  On or before the first Monday of each month, the clerk of court shall pay over to the county treasurer the amount of all fees collected by him pursuant to subsection 1. The county treasurer shall distribute, on or before the 15th day of that month, the money received in the following amounts for each fee received:

    (a) Eight dollars for credit to a special account in the county general fund for the use of the district court for advanced and improved technological purposes. The special account is restricted to the use specified, the money in the special account must not be used to supplant existing budgets for maintenance and support of technology, and the balance in the special account must be carried forward at the end of each fiscal year.

    (b) Seven dollars for credit to a special account in the county general fund in each county in which legal services are provided without charge to indigent or elderly persons through a program for legal aid organized under the auspices of the State Bar of Nevada, a county or local bar association, a county or municipal program for legal services or other program funded by this state or the United States to provide legal assistance. The county treasurer shall remit quarterly to the organization operating the program for legal services all the money received by him from the clerk of court. The organization operating the program for legal services shall use any money received pursuant to this paragraph as follows:

        (1) Five dollars for the benefit of indigent persons in the county; and

        (2) Two dollars for the benefit of elderly persons in the county.

    (c) Ten dollars to the State Controller for credit to a special account in the State General Fund. The State Controller shall distribute the money received to the Office of Court Administrator for use in support and maintenance of case management systems approved by the Office of Court Administrator, for statewide technological purposes and for distribution to the courts for technological purposes. The special account is restricted to the use specified, and the balance in the special account must be carried forward at the end of each fiscal year.

    (d) Five dollars to the State Controller for credit to a special account in the State General Fund. The State Controller shall distribute the money received to the Office of Court Administrator for the payment for the services of retired justices and retired district judges. The special account is restricted to the use specified, and the balance in the special account must be carried forward at the end of each fiscal year.

    3.  As used in this section:

    (a) “Office of Court Administrator” means the Office of Court Administrator created pursuant to NRS 1.320.

    (b) “Technological purposes” means the acquisition or improvement of technology, including, without limitation, acquiring or improving technology for converting and archiving records, purchasing hardware and software, maintaining the technology, training employees in the operation of the technology and contracting for professional services relating to the technology.

    Sec. 3.  NRS 2.250 is hereby amended to read as follows:

    2.250  1.  The Clerk of the Supreme Court may demand and receive for his services rendered in discharging the duties imposed upon him by law the following fees:

    (a) Except as otherwise provided in paragraph [(c),] (d), whenever an appeal is taken to the Supreme Court, or whenever a special proceeding by way of mandamus, certiorari, prohibition, quo warranto, habeas corpus, or otherwise is brought in or to the Supreme Court, the appellant and any cross‑appellant or the party bringing a special proceeding shall, at or before the appeal, cross-appeal or petition for a special proceeding has been entered on the docket, pay to the Clerk of the Supreme Court the sum of $200.

    (b) Except as otherwise provided in paragraph [(c),] (d), a party to an appeal or special proceeding who petitions the Supreme Court for a rehearing shall, at the time of filing such a petition, pay to the Clerk of the Supreme Court the sum of $100.

    (c) Except as otherwise provided in paragraph (d), in addition to the fees required pursuant to paragraphs (a) and (b):

        (1) Whenever an appeal is taken to the Supreme Court, or whenever a special proceeding by way of mandamus, certiorari, prohibition, quo warranto, habeas corpus, or otherwise is brought in or to the Supreme Court, the appellant and any cross-appellant or the party bringing a special proceeding shall, at or before the appeal, cross-appeal or petition for a special proceeding has been entered on the docket, pay to the Clerk of the Supreme Court a court automation fee of $50.

        (2) A party to an appeal or special proceeding who petitions the Supreme Court for a rehearing shall, at the time of filing such a petition, pay to the Clerk of the Supreme Court a court automation fee of $50.

The Clerk of the Supreme Court shall remit the fees collected pursuant to this paragraph to the State Controller for credit to a special account in the State General Fund. The State Controller shall distribute the money received to the Office of Court Administrator to be used for advanced and improved technological purposes in the Supreme Court. The special account is restricted to the use specified, and the balance in the special account must be carried forward at the end of each fiscal year. As used in this paragraph, “technological purposes” means the acquisition or improvement of technology, including, without limitation, acquiring or improving technology for converting and archiving records, purchasing hardware and software, maintaining the technology, training employees in the operation of the technology and contracting for professional services relating to the technology.

    (d) No fees may be charged by the Clerk in:

        (1) Any action brought in or to the Supreme Court wherein the State of Nevada or any county, city or town thereof, or any officer or commission thereof is a party in his or its official or representative capacity, against the State of Nevada, county, city, town, officer or commission;

        (2) A habeas corpus proceeding of a criminal or quasi-criminal nature; or

        (3) An appeal taken from, or a special proceeding arising out of, a criminal proceeding.

    [(d)] (e) A fee of $60 for Supreme Court decisions in pamphlet form for each year, or a fee of $30 for less than a 6 months’ supply of decisions, to be collected from each person who requests such decisions, except those persons and agencies set forth in NRS 2.345. The Clerk may charge a reasonable fee to all parties, including, without limitation, the persons and agencies set forth in NRS 2.345, for access to decisions of the Supreme Court compiled in an electronic format.

    [(e)] (f) A fee from a person who requests a photostatic copy or a photocopy print of any paper or document in an amount determined by the justices of the Supreme Court.

    2.  The Clerk of the Supreme Court shall not charge any fee that is not authorized by law.

    3.  The Clerk of the Supreme Court shall keep a fee book in which the Clerk shall enter in detail the title of the matter, proceeding or action, and the fees charged therein. The fee book must be open to public inspection in the office of the Clerk.

    4.  The Clerk of the Supreme Court shall publish and post in some conspicuous place in his office a table of fees for public inspection. The Clerk shall forfeit a sum of not less than $20 for each day of his omission to do so, which sum with costs may be recovered by any person by filing an action before any justice of the peace of the same county.

    5.  All fees prescribed in this section must be paid in advance, if demanded. If the Clerk of the Supreme Court has not received any or all of the fees which are due to him for services rendered in any suit or proceeding, the Clerk may have execution therefor in his own name against the party from whom they are due, to be issued from the Supreme Court upon order of a justice thereof or from the Court upon affidavit filed.

    6.  The Clerk of the Supreme Court shall give a receipt on demand of the party paying a fee. The receipt must specify the title of the cause in which the fee is paid and the date and the amount of the payment.

    7.  The Clerk of the Supreme Court shall, when depositing with the State Treasurer money received for Court fees, render to the State Treasurer a brief note of the cases in which the money was received.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to courts; providing for the imposition of certain additional fees in civil actions; providing that such additional fees constitute costs for the purposes of certain provisions; providing for the imposition of a court automation fee for appeals and other proceedings filed in the Supreme Court; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Provides for imposition of certain fees in certain actions and proceedings filed in courts of this state. (BDR 2‑614)”.

    Senator Amodei moved the adoption of the amendment.

    Remarks by Senator Amodei.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 125.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 106.

    Amend the bill as a whole by deleting sec. 3, renumbering sections 1 and 2 as sections 3 and 4 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

    “Section 1.  NRS 703.330 is hereby amended to read as follows:

    703.330  1.  A complete record must be kept of all hearings before the Commission. All testimony at such hearings must be taken down by the stenographer appointed by the Commission [,] or, under the direction of any competent person appointed by the Commission, must be reported by sound recording equipment in the manner authorized for reporting testimony in district courts. The testimony reported by a stenographer must be transcribed, and the transcript filed with the record in the matter. The Commission may by regulation provide for the transcription or safekeeping of sound recordings. [Cost] The costs of recording and transcribing testimony at any hearing, except those hearings ordered pursuant to NRS 703.310, must be paid by the applicant. If a complaint is made pursuant to NRS 703.310 by a customer or by a political subdivision of the State or municipal organization, the complainant is not liable for any costs. Otherwise, if there are several applicants or parties to any hearing, the Commission may apportion the costs among them in its discretion.

    2.  If a petition is served upon the Commission as provided in NRS 703.373 for the bringing of an action against the Commission, before the action is reached for trial, the Commission shall file a certified copy of all proceedings and testimony taken with the clerk of the court in which the action is pending.

    3.  A copy of the proceedings and testimony must be furnished to any party, on payment of a reasonable amount [,] to be fixed by the Commission, and the amount must be the same for all parties.

    4.  The provisions of this section do not prohibit the Commission from:

    (a) Restricting access to the records and transcripts of a hearing pursuant to paragraph (a) of subsection 3 of NRS 703.196.

    (b) Protecting the confidentiality of information pursuant to NRS 704B.310 or 704B.320 [.] or section 7 of this act.

    Sec. 2.  NRS 704.185 is hereby amended to read as follows:

    704.185  1.  A public utility which purchases natural gas for resale may record upon its books and records in deferred accounts all cost increases or decreases in the natural gas purchased for resale . [in deferred accounts.] Any public utility which [utilizes] uses deferred accounting to reflect changes in costs of natural gas purchased for resale shall include in its annual report to the Commission a statement showing the allocated rate of return for each of its operating departments in Nevada which uses deferred accounting.

    2.  If the rate of return for any department using deferred accounting pursuant to subsection 1 is greater than the rate of return allowed by the Commission in the last rate proceeding, the Commission shall order the utility which recovered any costs of natural gas purchased for resale through rates during the reported period to transfer to the next energy adjustment period that portion of such recovered amounts which exceeds the authorized rate of return.

    3.  A public utility which purchases natural gas for resale may request approval from the Commission to record upon its books and records in deferred accounts any other cost or revenue which the Commission deems appropriate for deferred accounting and which is not otherwise subject to the provisions of subsections 1 and 2. If the Commission approves such a request, the Commission shall determine the appropriate requirements for reporting and recovery that the public utility must follow with regard to each such deferred account.”.

    Amend the bill as a whole by adding new sections designated sections 5 through 12, following sec. 2, to read as follows:

    “Sec. 5.  Chapter 704B of NRS is hereby amended by adding thereto the provisions set forth as sections 6 and 7 of this act.

    Sec. 6.  “Consumer’s Advocate” means the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General.

    Sec. 7.  1.  An eligible customer that is purchasing energy, capacity or ancillary services from a provider of new electric resources may purchase energy, capacity or ancillary services from an alternative provider without obtaining the approval of the Commission if the terms and conditions of the transaction with the alternative provider, other than the price of the energy, capacity or ancillary services, conform to the terms and conditions of the transaction that was originally approved by the Commission with respect to the eligible customer.

    2.  If any terms and conditions of the transaction with the alternative provider, other than the price of the energy, capacity or ancillary services, do not conform to the terms and conditions of the transaction that was originally approved by the Commission with respect to the eligible customer, the eligible customer must obtain approval from the Commission before those nonconforming terms and conditions are enforceable.

    3.  If the eligible customer files a request with the Commission for approval of any nonconforming terms and conditions, the Commission shall review and make a determination concerning the request on an expedited basis.

    4.  Notwithstanding any specific statute to the contrary, information concerning any terms and conditions of the transaction with the alternative provider that the Commission determines are commercially sensitive:

    (a) Must not be disclosed by the Commission except to the regulatory operations staff of the Commission, the Consumer’s Advocate and his staff and the affected electric utility for the purposes of carrying out the provisions of this section; and

    (b) Shall be deemed to be confidential for all other purposes, and the Commission shall take such actions as are necessary to protect the confidentiality of such information.

    Sec. 8.  NRS 704B.010 is hereby amended to read as follows:

    704B.010  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 704B.020 to 704B.140, inclusive, and section 6 of this act have the meanings ascribed to them in those sections.

    Sec. 9.  NRS 704B.300 is hereby amended to read as follows:

    704B.300  1.  Except as otherwise provided in this section, a provider of new electric resources may sell energy, capacity or ancillary services to one or more eligible customers if [the] :

    (a) The eligible customers have been approved to purchase energy, capacity and ancillary services from the provider pursuant to the provisions of NRS 704B.310 and 704B.320 [.] ; or

    (b) The transaction complies with the provisions of section 7 of this act.

    2.  A provider of new electric resources shall not sell energy, capacity or ancillary services to an eligible customer [:

    (a) Before April 1, 2002, if the eligible customer’s load is in the service territory of an electric utility that primarily serves less densely populated counties;

    (b) Before June 1, 2002, if the eligible customer’s load is in the service territory of an electric utility that primarily serves densely populated counties; or

    (c) If] if the transaction violates the provisions of this chapter.

    3.  A provider of new electric resources that sells energy, capacity or ancillary services to an eligible customer pursuant to the provisions of this chapter:

    (a) Does not become and shall not be deemed to be a public utility solely because of that transaction; and

    (b) Does not become and shall not be deemed to be subject to the jurisdiction of the Commission except as otherwise provided in this chapter or by specific statute.

    4.  If a provider of new electric resources is not a public utility in this state and is not otherwise authorized by the provisions of a specific statute to sell energy, capacity or ancillary services at retail in this state, the provider shall not sell energy, capacity or ancillary services at retail in this state to a person or entity that is not an eligible customer.

    Sec. 10.  NRS 704B.310 is hereby amended to read as follows:

    704B.310  1.  An eligible customer that is purchasing bundled electric service for all or any part of its load from an electric utility shall not purchase energy, capacity or ancillary services from a provider of new electric resources [and an eligible customer that is purchasing energy, capacity or ancillary services from a provider of new electric resources shall not purchase energy, capacity or ancillary services from another provider] unless:

    (a) The eligible customer files an application with the Commission not later than 180 days before the date on which the eligible customer intends to begin purchasing energy, capacity or ancillary services from the provider [;] , except that the Commission may allow the eligible customer to file the application within any shorter period that the Commission deems appropriate; and

    (b) The Commission approves the application by a written order issued in accordance with the provisions of this section and NRS 704B.320.

[The date on which the eligible customer intends to begin purchasing energy, capacity or ancillary services from the provider must not be sooner than the date on which the provider is authorized by NRS 704B.300 to begin selling energy, capacity or ancillary services to the eligible customer.]

    2.  Except as otherwise provided in subsection 3, each application filed pursuant to this section must include:

    (a) Information demonstrating that the person filing the application is an eligible customer;

    (b) Information demonstrating that the proposed provider will provide energy, capacity or ancillary services from a new electric resource;

    (c) Information concerning the terms and conditions of the proposed transaction that is necessary for the Commission to evaluate the impact of the proposed transaction on customers and the public interest, including, without limitation, information concerning the duration of the proposed transaction and the amount of energy, capacity or ancillary services to be purchased from the provider; and

    (d) Any other information required pursuant to the regulations adopted by the Commission.

    3.  Except as otherwise provided in NRS 704B.320, the Commission shall not require the eligible customer or provider to disclose:

    (a) The price that is being paid by the eligible customer to purchase energy, capacity or ancillary services from the provider; or

    (b) Any other terms or conditions of the proposed transaction that the Commission determines are commercially sensitive.

    4.  The Commission shall provide public notice of the application of the eligible customer and an opportunity for a hearing on the application in a manner that is consistent with the provisions of NRS 703.320 and the regulations adopted by the Commission.

    5.  The Commission shall approve the application of the eligible customer unless the Commission finds that the proposed transaction:

    (a) Will be contrary to the public interest; or

    (b) Does not comply with the provisions of NRS 704B.320, if those provisions apply to the proposed transaction.

    6.  In determining whether the proposed transaction will be contrary to the public interest, the Commission shall consider, without limitation:

    (a) Whether the electric utility that has been providing electric service to the eligible customer will be burdened by increased costs as a result of the proposed transaction or whether any remaining customer of the electric utility will pay increased costs for electric service as a result of the proposed transaction;

    (b) Whether the proposed transaction will impair system reliability or the ability of the electric utility to provide electric service to its remaining customers; and

    (c) Whether the proposed transaction will add energy, capacity or ancillary services to the supply in this state.

    7.  If the Commission approves the application of the eligible customer:

    (a) The eligible customer shall not begin purchasing energy, capacity or ancillary services from the provider pursuant to the proposed transaction sooner than 180 days after the date on which the application was filed [;] , unless the Commission allows the eligible customer to begin purchasing energy, capacity or ancillary services from the provider at an earlier date; and

    (b) The Commission shall order such terms, conditions and payments as the Commission deems necessary and appropriate to ensure that the proposed transaction will not be contrary to the public interest. Such terms, conditions and payments:

        (1) Must be fair and nondiscriminatory as between the eligible customer and the remaining customers of the electric utility; and

        (2) Must include, without limitation, payment by the eligible customer to the electric utility of the eligible customer’s load-share portion of any unrecovered balance in the deferred accounts of the electric utility.

    8.  If the Commission does not enter a final order on the application of the eligible customer within [90] 150 days after the date on which the application was filed with the Commission:

    (a) The application shall be deemed to be approved by the Commission; and

    (b) The eligible customer [shall not] may begin purchasing energy, capacity or ancillary services from the provider pursuant to the proposed transaction . [sooner than 180 days after the date on which the application was filed.]

    Sec. 11.  NRS 704B.320 is hereby amended to read as follows:

    704B.320  1.  For eligible customers whose loads are in the service territory of an electric utility that primarily serves densely populated counties, the aggregate amount of energy that all such eligible customers purchase from providers of new electric resources before July 1, 2003, must not exceed 50 percent of the difference between the existing supply of energy generated in this state that is available to the electric utility and the existing demand for energy in this state that is consumed by the customers of the electric utility, as determined by the Commission.

    2.  An eligible customer that is a nongovernmental commercial or industrial end-use customer whose load is in the service territory of an electric utility that primarily serves densely populated counties shall not purchase energy, capacity or ancillary services from a provider of new electric resources unless, as part of the proposed transaction, the eligible customer agrees to:

    (a) Contract with the provider to purchase:

        (1) An additional amount of energy which is equal to 10 percent of the total amount of energy that the eligible customer is purchasing for its own use under the proposed transaction and which is purchased at the same price, terms and conditions as the energy purchased by the eligible customer for its own use; and

        (2) The capacity and ancillary services associated with the additional amount of energy at the same price, terms and conditions as the capacity and ancillary services purchased by the eligible customer for its own use; and

    (b) Offers to assign the rights to the contract to the electric utility for use by the remaining customers of the electric utility.

    3.  If an eligible customer is subject to the provisions of subsection 2, the eligible customer shall include with its application filed pursuant to NRS 704B.310 all information concerning the contract offered to the electric utility that is necessary for the Commission to determine whether it is in the best interest of the remaining customers of the electric utility for the electric utility to accept the rights to the contract. Such information must include, without limitation, the amount of the energy and capacity to be purchased under the contract, the price of the energy, capacity and ancillary services and the duration of the contract.

    4.  Notwithstanding any specific statute to the contrary, information concerning the price of the energy, capacity and ancillary services and any other terms or conditions of the contract that the Commission determines are commercially sensitive:

    (a) Must not be disclosed by the Commission except to the regulatory operations staff of the Commission, the Consumer’s Advocate and his staff and the electric utility for the purposes of carrying out the provisions of this section; and

    (b) Shall be deemed to be confidential for all other purposes, and the Commission shall take such actions as are necessary to protect the confidentiality of such information.

    5.  If the Commission determines that the contract:

    (a) Is not in the best interest of the remaining customers of the electric utility, the electric utility shall not accept the rights to the contract, and the eligible customer is entitled to all rights to the contract.

    (b) Is in the best interest of the remaining customers of the electric utility, the electric utility shall accept the rights to the contract and the eligible customer shall assign all rights to the contract to the electric utility. A contract that is assigned to the electric utility pursuant to this paragraph shall be deemed to be an approved part of the resource plan of the electric utility and a prudent investment, and the electric utility may recover all costs for the energy, capacity and ancillary services acquired pursuant to the contract. To the extent practicable, the Commission shall take actions to ensure that the electric utility uses the energy, capacity and ancillary services acquired pursuant to each such contract only for the benefit of the remaining customers of the electric utility that are not eligible customers, with a preference for the remaining customers of the electric utility that are residential customers with small loads.

    6.  The provisions of this section do not exempt the electric utility, in whole or in part, from the requirements imposed on the electric utility pursuant to NRS 704.7801 to 704.7828, inclusive, to comply with its portfolio standard for renewable energy. The Commission shall not take any actions pursuant to this section that conflict with or diminish those requirements.

    [7.  As used in this section, “Consumer’s Advocate” means the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General.]

    Sec. 12.  This act becomes effective upon passage and approval.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to utilities; authorizing certain natural gas utilities to use deferred accounting for certain purposes; revising provisions governing the notice that must be provided for an application to obtain a permit for a utility facility; revising certain procedural requirements concerning applications to purchase energy, capacity or ancillary services from a provider of new electric resources; revising various provisions relating to transactions between eligible customers and providers of new electric resources; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to utilities and providers of new electric resources. (BDR 58‑488)”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 132.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 376.

    Amend sec. 10, page 3, by deleting lines 15 through 32 and inserting: “mold; and

    (d) Laboratories which collect or analyze air samples for projects for the control of mold.”.

    Amend sec. 10, page 3, line 33, by deleting “4.” and inserting “3.”.

    Amend sec. 11, page 3, line 39, by deleting “claims.” and inserting: “claims involving damage caused by water intrusions.”.

    Amend sec. 14, page 4, line 16, before “A” by inserting “1.”.

    Amend sec. 14, page 4, between lines 18 and 19, by inserting:

    “2.  The Division shall not issue a license to a person to perform both the inspection and testing of mold and the remediation of mold. A person licensed to perform the remediation of mold shall not perform the remediation of mold on any structure for which the inspection and testing of mold was performed by a person who is:

    (a) Related by blood or marriage to the person licensed to perform the remediation of mold; or

    (b) In any type of business relationship with the person licensed to perform the remediation of mold.”.

    Amend sec. 15, page 4, line 19, by deleting “The” and inserting: “Except as otherwise provided in section 14 of this act, the”.

    Senator Townsend moved the adoption of the amendment.

    Remarks by Senator Townsend.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 136.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 287.

Amend the bill as a whole by deleting sections 1 through 9 and adding new sections designated sections 1 through 11, following the enacting clause, to read 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.

    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;

    [(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 the unit’s owner, or the tenant or guest of the unit’s owner, to pay] Impose a fine against the unit’s owner 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.  If a tenant or guest of a unit’s owner violates any provision of the governing documents, the executive board may, if the governing documents so provide:

    (a) Impose a fine or take any other action authorized by this section against the unit’s owner as if the unit’s owner had committed the violation; or

    (b) Impose a fine or take any other action authorized by this section against the tenant or guest of the unit’s owner in the same manner that it may take such actions against the unit’s owner. The executive board may hold a unit’s owner jointly and severally liable for a fine imposed against a tenant or guest of the unit’s owner pursuant to this paragraph if the governing documents so provide and the executive board complies with the procedural requirements set forth in this section with respect to the unit’s owner.

    3.  The executive board may not impose a fine pursuant to subsection 1 or 2 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.

    4.  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.

    5.  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.

    6.  If a fine is imposed pursuant to subsection 1 or 2 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.]

    7.  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.

    8.  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.

    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.

    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.

    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. 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.

    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.”.

    Amend the title of the bill to read as follows:

    “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.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes various changes relating to certain penalties and fines imposed by unit-owners’ associations. (BDR 10‑897)”.

    Senator Hardy moved the adoption of the amendment.

    Remarks by Senator Hardy.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 235.

    Bill read second time.

    The following amendment was proposed by the Committee on Human Resources and Facilities:

    Amendment No. 323.

    Amend sec. 2, page 2, line 14, by deleting “The” and inserting: “Sixty‑seven percent of the”.

    Amend sec. 2, page 2, line 16, by deleting “less $24,000,000,”.

    Amend sec. 2, page 2, by deleting line 21 and inserting:

“      (1) Paragraph (b)] paragraph (c) of subsection 2 of NRS”.

    Amend sec. 2, page 2, line 28, by deleting “$1,500,000” and inserting: “1.95 percent of the total amount of disproportionate share payments distributed to all hospitals pursuant to NRS 422.387 for a fiscal year, but not more than $1,500,000,”.

    Amend sec. 2, page 2, line 44, by deleting “(b)” and inserting “[(b)] (c)”.

    Amend sec. 4, page 5, by deleting line 35 and inserting:

    “(a) Shall adjust the amounts for each group of hospitals described in a paragraph of subsection 2”.

    Amend sec. 6, page 7, line 10, by deleting “and”.

    Amend sec. 6, page 7, line 11, by deleting “$115,000.” and inserting:

    “$115,000; and

    (k) For Sunrise Hospital and Medical Center, one-sixth of the total amount distributed in the respective fiscal year to the group described in the paragraph of subsection 2 of NRS 422.387 of which Sunrise Hospital and Medical Center is a member.”.

    Amend sec. 6, page 7, by deleting line 16 and inserting: “pursuant to subsection 4 of NRS 422.387 for hospitals in a group described in a paragraph of subsection 2 of NRS 422.387 if the total amount of base payments specified in subsection 1 for hospitals in the group exceeds the amount authorized by federal law.”.

    Senator Rawson moved the adoption of the amendment.

    Remarks by Senator Rawson.

    Amendment adopted.

    Senator Rawson moved that Senate Bill No. 235 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Rawson.

    Motion carried.

    Bill ordered reprinted, engrossed and to the Committee on Finance.

    Senate Bill No. 237.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 111.

    Amend the bill as a whole by renumbering sections 1 through 10 as sections 2 through 11 and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  NRS 365.190 is hereby amended to read as follows:

    365.190  1.  [Subject to the provisions of subsection 3, in] In addition to any other tax provided for in this chapter, there is hereby levied an excise tax of 1.75 cents per gallon on all motor vehicle fuel, except aviation fuel.

    2.  The tax imposed pursuant to this section must be collected by the supplier in the manner provided in this chapter. Upon the collection of the tax by the supplier, the purchaser of the fuel shall provide to the supplier a statement that sets forth the number of gallons of fuel that will be sold to retailers in each county in this state. The tax must be paid to the Department and delivered by the Department to the State Treasurer. When the tax is paid to the Department, the supplier shall provide to the Department a copy of the statement provided to the supplier by the purchaser pursuant to this subsection.

    [3.  The provisions of this section shall be deemed to be optional. The board of county commissioners of any county may decline to accept the additional tax levied pursuant to this section by the adoption of a resolution passed before July 1, 1947, which must be reconsidered and passed once each year within 60 days before July 1 of each year as long as the board of county commissioners desires so to act. Upon the adoption of such a resolution no tax may be collected.]”.

    Amend section 1, page 1, by deleting line 6 and inserting: “and must be”.

    Amend section 1, pages 1 and 2, by deleting lines 11 and 12 on page 1 and lines 1 through 8 on page 2, and inserting:

    “2.  [The money so received must] Except as otherwise provided in subsection 3, the money”.

    Amend section 1, page 2, by deleting line 32 and inserting:

    “3.  Any money allocated pursuant to subsection 1 to a county whose population is 400,000 or more and in which a regional transportation commission has been created pursuant to chapter 373 of NRS, from the proceeds of the tax imposed pursuant to subparagraph (1) of paragraph (b) of subsection 1 of NRS 365.170 on fuel for jet or turbine-powered aircraft sold, distributed or used in that county, excluding the proceeds of any tax imposed pursuant to NRS 365.203, may, in addition to the uses authorized pursuant to subsection 2, be allocated by the county to that regional transportation commission. The money allocated pursuant to this subsection to a regional”.

    Amend section 1, page 2, line 43, after “issued” by inserting: “by the county at the request of the regional transportation commission”.

    Amend sec. 2, page 3, by deleting lines 22 through 24 and inserting:

    “(b) The board may by ordinance impose:”.

    Amend sec. 3, page 6, line 10, by deleting “2” and inserting “3”.

    Amend sec. 6, page 6, lines 32 and 42, by deleting “2” and inserting “3”.

    Amend sec. 7, page 7, line 6, by deleting “2” and inserting “3”.

    Amend sec. 8, page 7, lines 34 and 41, by deleting “2” and inserting “3”.

    Amend sec. 8, page 8, line 37, by deleting “2” and inserting “3”.

    Amend sec. 9, page 9, lines 23 and 38, by deleting “2” and inserting “3”.

    Amend sec. 10, page 10, line 42, by deleting “2” and inserting “3”.

    Amend sec. 10, page 11, line 7, by deleting “2” and inserting “3”.

    Amend the bill as a whole by renumbering sec. 11 as sec. 15 and adding new sections designated sections 12 through 14, following sec. 10, to read as follows:

    “Sec. 12.  NRS 377A.020 is hereby amended to read as follows:

    377A.020  1.  The board of county commissioners of [any] :

    (a) Any county may enact an ordinance imposing a tax for a public transit system , [or] for the construction, maintenance and repair of public roads, for the improvement of air quality or [both,] for any combination of those purposes pursuant to NRS 377A.030. [The board of county commissioners of any]

    (b) Any county whose population is less than 400,000 may enact an ordinance imposing a tax to promote tourism pursuant to NRS 377A.030.

    2.  An ordinance enacted pursuant to this chapter may not become effective before a question concerning the imposition of the tax is approved by a majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. A county may combine the questions for a public transit system , [and] for the construction, maintenance and repair of public roads and for the improvement of air quality with questions submitted pursuant to NRS 244.3351, 278.710 or 371.045, or any combination thereof. The board shall also submit to the voters at a general election any proposal to increase the rate of the tax or change the previously approved uses for the proceeds of the tax.

    3.  Any ordinance enacted pursuant to this section must specify the date on which the tax must first be imposed or on which an increase in the rate of the tax becomes effective, which must not be earlier than the first day of the second calendar month following the approval of the question by the voters.

    Sec. 13.  NRS 377A.030 is hereby amended to read as follows:

    377A.030  Except as otherwise provided in NRS 377A.110, any ordinance enacted under this chapter must include provisions in substance as follows:

    1.  A provision imposing a tax upon retailers at the rate of not more than:

    (a) For a tax to promote tourism, one-quarter of 1 percent; or

    (b) For a tax to establish and maintain a public transit system , [or] for the construction, maintenance and repair of public roads, for the improvement of air quality or [both,] for any combination of those purposes, one-half of 1 percent,

of the gross receipts of any retailer from the sale of all tangible personal property sold at retail, or stored, used or otherwise consumed, in a county.

    2.  Provisions substantially identical to those contained in chapter 374 of NRS, insofar as applicable.

    3.  A provision that all amendments to chapter 374 of NRS after the date of enactment of the ordinance, not inconsistent with this chapter, automatically become a part of [an ordinance imposing the tax for public mass transportation and construction of public roads or the tax to promote tourism in the county.] the ordinance.

    4.  A provision that the county shall contract before the effective date of the ordinance with the Department to perform all functions incident to the administration or operation of the tax in the county.

    5.  A provision that exempts from the tax or any increase in the tax the gross receipts from the sale of, and the storage, use or other consumption in a county of, tangible personal property used for the performance of a written contract for the construction of an improvement to real property, entered into on or before the effective date of the tax or the increase in the tax, or for which a binding bid was submitted before that date if the bid was afterward accepted, if under the terms of the contract or bid the contract price or bid amount cannot be adjusted to reflect the imposition of the tax or the increase in the tax.

    Sec. 14.  NRS 377A.070 is hereby amended to read as follows:

    377A.070  1.  The county treasurer shall deposit the money received from the State Controller pursuant to NRS 377A.050 for a public transit system , [or] for the construction, maintenance and repair of public roads, for the improvement or air quality or [both,] for any combination of those purposes in the county treasury for credit to a fund to be known as the public transit fund.

    2.  The public transit fund must be accounted for as a separate fund and not as a part of any other fund.”.

    Amend sec. 11, page 11, by deleting lines 29 and 30 and inserting: “system , [or] for the construction, maintenance and repair of public roads, for the improvement of air quality or [both,] for any combination of those purposes has been imposed, the board shall by ordinance”.

    Amend sec. 11, page 12, by deleting lines 14 through 19 and inserting:

    “(c) The distribution of money to the local air pollution control agency which administers the program established in the county pursuant to NRS 445B.500, to support activities, services and programs related to the improvement of air quality;

    (d) The payment of principal and interest on notes, bonds or other securities issued to provide [funds] money for the cost of projects described in paragraphs (a) [and (b); or

    (d)] , (b) and (c); or

    (e) Any combination of those purposes.”.

    Amend the bill as a whole by renumbering sections 12 through 17 as sections 19 through 24 and adding new sections designated sections 16 through 18, following sec. 11, to read as follows:

    “Sec. 16.  NRS 377A.090 is hereby amended to read as follows:

    377A.090  1.  Money for the payment of the cost of establishing and maintaining a public transit system , [or] for the construction, maintenance and repair of public roads, for the improvement of air quality or [both,] for any combination of those purposes may be obtained by the issuance of bonds and other securities as provided in subsection 2, or, subject to any pledges, liens and other contractual limitations made pursuant to this chapter, may be obtained by direct distribution from the public transit fund, or may be obtained both by the issuance of such securities and by such direct distribution as the board may determine.

    2.  The board may, after the enactment of an ordinance [imposing a tax for a public transit system or for the construction, maintenance and repair of public roads, or both, as] authorized by paragraph (a) of subsection 1 of NRS 377A.020, from time to time issue bonds and other securities, which are general or special obligations of the county and which may be secured as to principal and interest by a pledge authorized by this chapter of the receipts from the tax [for a public transit system or for the construction, maintenance and repair of public roads, or both.] imposed by that ordinance.

    3.  The ordinance authorizing the issuance of any bond or other security must describe the purpose for which it is issued.

    Sec. 17.  NRS 377A.100 is hereby amended to read as follows:

    377A.100  1.  Each ordinance providing for the issuance of any bond or security issued under this chapter payable from the receipts of the tax [for a public transit system or for the construction, maintenance and repair of public roads, or both,] imposed pursuant to paragraph (b) of subsection 1 of NRS 377A.030 may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon the receipts of the tax or upon the proceeds of any bond or security pending their application to defray the cost of establishing or operating a public transit system, constructing, maintaining or repairing public roads or improving air quality, or both tax proceeds and security proceeds, to secure the payment of any bond or security issued under this chapter.

    2.  Any money pledged to the payment of bonds or other securities pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection 3 of NRS 350.020.

    Sec. 18.  NRS 377A.110 is hereby amended to read as follows:

    377A.110  1.  Subject to the provisions of subsection 2, the board may gradually reduce the amount of any tax imposed pursuant to this chapter for a public transit system , [or] for the construction, maintenance and repair of public roads, for the improvement of air quality or [both,] for any combination of those purposes as revenue from the operation of [the public transit system] those projects permits.

    2.  No such taxing ordinance may be repealed or amended or otherwise directly or indirectly modified in such a manner as to impair any outstanding bonds issued under this chapter, or other obligations incurred under this chapter, until all obligations, for which revenues from the ordinance have been pledged or otherwise made payable from such revenues pursuant to this chapter, have been discharged in full, but the board may at any time dissolve the regional transportation commission and provide that no further obligations be incurred thereafter.”.

    Amend sec. 14, page 15, line 42, by deleting “13” and inserting “20”.

    Amend sec. 14, page 16, line 8, by deleting “13” and inserting “20”.

    Amend sec. 15, page 16, line 21, by deleting “377A.030.” and inserting: “377A.030, as amended by this act.”.

    Amend sec. 15, page 17, line 24, by deleting “377A.030” and inserting: “377A.030, as amended by this act,”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 256.

    Bill read second time and ordered to third reading.

    Senate Bill No. 273.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 378.

Amend section 1, page 1, by deleting lines 3 through 8 and inserting:

    “1.  If an owner of a residence or appurtenance, a homeowner’s association that is responsible for a residence or appurtenance or a representative of such an owner or homeowner’s association has hired, contracted with or paid any person to inspect the residence or appurtenance to obtain information related to any condition or damage which has the potential to result in a claim for a constructional defect, the person may not conduct the inspection of the residence or appurtenance unless the contractor who is allegedly responsible for the condition or damage has been provided with:

    (a) Notice of the inspection not less than 3 working days before the date that the inspection is conducted; and

    (b) A reasonable opportunity to be present or to have a representative of the contractor present when the inspection is conducted.

    2.  The provisions of this section apply to an inspection regardless of whether a claim has been made or an action has been commenced against the contractor pursuant to NRS 40.600 to 40.695, inclusive.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to real property; providing that a contractor must be given notice of and a reasonable opportunity to be present at certain inspections which involve conditions or damage that have the potential to result in a claim for a constructional defect; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Enacts provisions relating to inspections and claims for constructional defects. (BDR 3‑252)”.

    Senator Schneider moved the adoption of the amendment.

    Remarks by Senators Schneider and Coffin.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 292.

    Bill read second time.

    The following amendment was proposed by the Committee on Commerce and Labor:

    Amendment No. 434.

    Amend the bill as a whole by deleting sections 1 through 5, renumbering sec. 6 as sec. 2, and adding a new section designated section 1, following the enacting clause, to read as follows:

    “Section 1.  1.  The Legislative Commission shall appoint a subcommittee consisting of six Legislators to conduct an interim study of the impact of the recent privatization of the industrial insurance program on injured workers, employers and insurers. The Legislative Commission shall appoint to the subcommittee three members of the Senate and three members of the Assembly who are acquainted with the statutory program for industrial insurance in this state.

    2.  The study must include, without limitation:

    (a) An examination of the procedures for resolving contested industrial insurance claims filed by injured workers, the costs to injured workers, employers and insurers in litigating such claims, and the timeliness of resolving such claims;

    (b) Consideration of whether it is appropriate to reimburse injured workers for time off of work when they are receiving medical treatment for compensable industrial injuries or illnesses, including the cost of such reimbursement to employers and insurers and the impacts on injured workers of not making such reimbursement; and

    (c) A review of any other issues or subjects concerning the impacts of the recent privatization of the industrial insurance program on injured workers, employers and insurers.

    3.  In conducting the study, the subcommittee shall seek information and suggestions from various representatives of injured workers, employers and insurers and from experts in the area of industrial insurance.

    4.  Any recommended legislation proposed by the subcommittee must be approved by a majority of the members of the Senate and a majority of the members of the Assembly who are appointed to the subcommittee.

    5.  The Legislative Commission shall submit a report of the results of the study and any recommendations for legislation to the 73rd Session of the Nevada Legislature.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to industrial insurance; directing the Legislative Commission to appoint a subcommittee to study the impacts of the recent privatization of the industrial insurance program; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Directs Legislative Commission to appoint subcommittee to study impacts of recent privatization of industrial insurance program. (BDR S‑784)”.

    Senator Schneider moved the adoption of the amendment.

    Remarks by Senator Schneider.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 313.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 372.

    Amend the bill as a whole by deleting sections 1 through 6, renumbering sec. 7 as sec. 3 and adding new sections designated sections 1 and 2, following the enacting clause, to read as follows:

    “Section 1.  NRS 372.7283 is hereby amended to read as follows:

    372.7283  In administering the provisions of NRS 372.325, the Department shall apply the exemption for the sale of tangible personal property to the State of Nevada, its unincorporated agencies and instrumentalities, to include [all] :

    1.  All tangible personal property that is transferred for use by a state entity in accordance with an agreement executed pursuant to NRS 353.500 to 353.630, inclusive [.] ; and

    2.  Any type of motor vehicle that is transferred for use by a state entity or a county, city, district or other local entity, whether by sale or lease and regardless of whether title to the vehicle passes to the state or local entity at any time during the use of the vehicle.

    Sec. 2.  NRS 374.729 is hereby amended to read as follows:

    374.729  In administering the provisions of NRS 374.330, the Department shall apply the exemption for the sale of tangible personal property to the State of Nevada, its unincorporated agencies and instrumentalities, to include [all] :

    1.  All tangible personal property that is transferred for use by a state entity in accordance with an agreement executed pursuant to NRS 353.500 to 353.630, inclusive [.] ; and

    2.  Any type of motor vehicle that is transferred for use by a state entity or a county, city, district or other local entity, whether by sale or lease and regardless of whether title to the vehicle passes to the state or local entity at any time during the use of the vehicle.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to taxation; clarifying the provisions governing the administration of the sales and use taxes on the sale or lease of a motor vehicle to a governmental entity; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Clarifies provisions governing administration of sales and use taxes on sales and leases of motor vehicles to governmental entities. (BDR 32‑295)”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 331.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 303.

    Amend sec. 2, page 1, line 5, after “person” by inserting: “that the Committee finds, based upon its information and belief, has direct personal knowledge of the issues presented in the grievance,”.

    Amend sec. 4, page 3, by deleting lines 29 through 43 and inserting:

    “Sec. 4.  1.  An employee who is the subject of an internal administrative investigation that could lead to disciplinary action against him pursuant to NRS 284.385 must be provided notice in writing of the allegations against him.

    2.  Upon receipt of notice pursuant to subsection 1 the employee must be:

    (a) Afforded the right to have a lawyer or other representative of his choosing present with him at any hearing held pursuant to NRS 284.390 and at any time that he is questioned regarding such charges; and

    (b) Given not fewer than 2 business days to obtain representation, unless he waives his right to be represented.”.

    Amend the bill as a whole by deleting sections 5 through 10 and renumbering sec. 11 as sec. 5.

    Amend the bill as a whole by deleting the text of the repealed section.

    Amend the title of the bill by deleting the sixth through eleventh lines and inserting: “investigations; and providing”.

    Senator Titus moved the adoption of the amendment.

    Remarks by Senator Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 342.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 282.

Amend section 1, page 1, by deleting lines 3 through 8 and inserting:

    “1.  A person who knowingly files a false or fraudulent written complaint or allegation of misconduct against a public officer or public employee for conduct in the course and scope of the employment of the public officer or public employee is guilty of a misdemeanor.

    2.  As used in this section, “public employee” means a person who performs public duties for compensation paid by the State, a county, city, local government or other political subdivision of the State or an agency thereof.”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to public personnel; prohibiting false or fraudulent complaints against a public officer or employee; providing a penalty; and providing other matters properly relating thereto.”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Prohibits false or fraudulent complaints against public officer or employee. (BDR 23‑1144)”.

    Senator Hardy moved the adoption of the amendment.

    Remarks by Senator Hardy.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 356.

    Bill read second time.

    The following amendment was proposed by the Committee on Transportation:

    Amendment No. 482.

    Amend section 1, page 1, by deleting line 15 and inserting: “fine of not less than $25 and not more than $1,000 per violation. The court shall, in determining the amount of the fine, consider the damage caused by the violation.”.

    Senator Nolan moved the adoption of the amendment.

    Remarks by Senator Nolan.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 359.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 220.

    Amend section 1, page 2, line 20, after “public.” by inserting: “For the purposes of this paragraph, reasonable restrictions as to the time, place and manner of display of the flag of the United States may include, without limitation, reasonable restrictions as to height and setback.”.

    Amend section 1, page 2, by deleting lines 26 and 27 and inserting:

    “(a) Made of cloth, fabric or paper;

    (b) Displayed from a pole or staff or in a window; and

    (c) Displayed in a manner that is consistent with 4 U.S.C. chapter 1.”.

    Amend sec. 3, page 3, by deleting lines 8 and 9 and inserting:

    “(a) Made of cloth, fabric or paper;

    (b) Displayed from a pole or staff or in a window; and

    (c) Displayed in a manner that is consistent with 4 U.S.C. chapter 1.”.

    Amend sec. 4, page 3, by deleting lines 22 and 23 and inserting:

    “2.  The provisions of this section do not:

    (a) Apply to the display of the flag of the United States for commercial advertising purposes.

    (b) Preclude an association from adopting, and do not preclude the governing documents of an association from setting forth, rules that reasonably restrict the placement and manner of the display of the flag of the United States by a unit’s owner.”.

    Amend sec. 4, page 3, by deleting lines 29 and 30 and inserting:

    “(a) Made of cloth, fabric or paper;

    (b) Displayed from a pole or staff or in a window; and

    (c) Displayed in a manner that is consistent with 4 U.S.C. chapter 1.”.

    Amend sec. 5, page 3, by deleting lines 42 and 43 and inserting:

    “2.  The provisions of this section do not:

    (a) Apply to the display of the flag of the United States for commercial advertising purposes.

    (b) Preclude a landlord or an agent or employee of a landlord from adopting rules that reasonably restrict the placement and manner of the display of the flag of the United States by a tenant.”.

    Amend sec. 5, page 4, by deleting lines 6 and 7 and inserting:

    “(a) Made of cloth, fabric or paper;

    (b) Displayed from a pole or staff or in a window; and

    (c) Displayed in a manner that is consistent with 4 U.S.C. chapter 1.”.

    Amend sec. 8, page 6, by deleting lines 9 and 10 and inserting:

    “2.  The provisions of this section do not:

    (a) Apply to the display of the flag of the United States for commercial advertising purposes.

    (b) Preclude a landlord or an agent or employee of a landlord from adopting rules that reasonably restrict the placement and manner of the display of the flag of the United States by a tenant.”.

    Amend sec. 8, page 6, by deleting lines 16 and 17 and inserting:

    “(a) Made of cloth, fabric or paper;

    (b) Displayed from a pole or staff or in a window; and

    (c) Displayed in a manner that is consistent with 4 U.S.C. chapter 1.”.

    Amend sec. 11, page 9, by deleting lines 10 and 11 and inserting:

“transfer or transparency;

        (3) If applicable, displayed in a manner that is consistent with 4 U.S.C. chapter 1; and

        (4) Of a size to allow the flag, or depiction thereof, to be”.

    Amend the title of the bill, seventeenth line, after “flag;” by inserting: “allowing the imposition of reasonable restrictions with respect to the placement and manner of display of the flag;”.

    Senator Titus moved the adoption of the amendment.

    Remarks by Senator Titus.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 408.

    Bill read second time.

    The following amendment was proposed by the Committee on Finance:

    Amendment No. 496.

    Amend section 1, page 1, line 3, by deleting “$613,557” and inserting “$740,598”.

    Amend section 1, page 1, by deleting line 5 and inserting: “a shortfall in revenue collections and expenditures relating to psychiatric services at”.

    Amend the title of the bill by deleting lines 4 and 5 and inserting: “shortfall in Fiscal Year 2002-2003 for a shortfall in revenue collections and expenditures relating to psychiatric services at rural”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Makes supplemental appropriation to Division of Mental Health and Developmental Services of Department of Human Resources for unanticipated shortfall in Fiscal Year 2002-2003 for shortfall in revenue collections and expenditures relating to psychiatric services at rural clinics. (BDR S-1229)”.

    Senator Raggio moved the adoption of the amendment.

    Remarks by Senator Raggio.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 432.

    Bill read second time.

    The following amendment was proposed by the Committee on Judiciary:

    Amendment No. 331.

    Amend section 1, page 2, line 2, by deleting: “2, 3 and 4” and inserting: “1.3 to 4, inclusive,”.

    Amend the bill as a whole by adding new sections designated sections 1.3 and 1.7, following section 1, to read as follows:

    “Sec. 1.3.  “Registered as a gaming employee” means authorized to be employed as a gaming employee in this state or to serve as an independent agent.

    Sec. 1.7.  “Temporarily registered as a gaming employee” means authorized to be employed as a gaming employee in this state or serve as an independent agent from the date of submitting an application for registration or renewal of registration for a period not to exceed 120 days following receipt of a complete application by the Board, including classifiable fingerprints, unless otherwise suspended.”.

    Amend sec. 5, page 3, line 29, after “inclusive,” by inserting: “and sections 1.3 and 1.7 of this act”.

    Amend sec. 7, page 4, lines 20 through 22, by deleting: “The application for registration may be filed through the licensee for whom the applicant will commence or continue working as a gaming employee.”.

    Amend sec. 7, page 4, line 25, after “another” by inserting “or additional”.

    Amend sec. 7, page 4, line 27, after “Board.” by inserting: “The application for registration and change of employment notice must be filed through the licensee for whom the applicant will commence or continue working as a gaming employee, unless otherwise filed with the Board as prescribed by regulation of the Commission.”.

    Amend sec. 7, page 4, line 28, by deleting: “shall, by regulation,” and inserting: “shall [, by regulation,]”.

    Amend sec. 7, pages 4 and 5, by deleting lines 41 through 45 on page 4 and lines 1 through 12 on page 5, and inserting:

    “5.  A complete application for registration or renewal of registration as a gaming employee or a change of employment notice received by a licensee must be mailed to the Board within 1 business day of receipt.”.

    Amend sec. 7, page 5, line 33, by deleting “investigation” and inserting “investigative”.

    Amend sec. 7, page 5, lines 34 and 35, by deleting: “the records of criminal history and the processing of” and inserting: “processing the application and the fees charged by the Central Repository for Nevada Records of Criminal History and the Federal Bureau of Investigation to process”.

    Amend sec. 7, page 5, line 45, by deleting “18,” and inserting “17,”.

    Amend sec. 7, page 6, line 4, by deleting “An” and inserting: “Except as otherwise prescribed by regulation of the Commission, an”.

    Amend sec. 7, page 6, lines 8 through 10, by deleting: “employee, unless such application for registration or renewal is filed with the Board as prescribed by regulation of the Commission.” and inserting “employee.”.

    Amend sec. 7, page 6, line 23, by deleting the comma and inserting: “or suspended or revoked,”.

    Amend sec. 7, page 6, line 34, by deleting “employee” and inserting: “employee, including classifiable fingerprints,”.

    Amend sec. 7, page 7, by deleting lines 4 through 8.

    Amend sec. 7, page 7, line 9, by deleting “(d)” and inserting “(c)”.

    Amend sec. 7, page 7, line 11, by deleting “6.” and inserting: “6, unless otherwise prescribed by regulation of the Commission; and

    (d) A completed statement as prescribed in subsections 1 and 2 of NRS 463.3351.

If the Board determines after receiving an application for registration or renewal of registration as a gaming employee that the application is incomplete, the Board may suspend the temporary registration as a gaming employee of the applicant who filed the incomplete application. An applicant whose temporary registration is suspended shall not be eligible to work as a gaming employee until such time as he files a complete application.”.

    Amend sec. 7, page 7, by deleting lines 26 through 29 and inserting:

    “(b) Establish uniform criteria for [denial by a county or city licensing authority] objection by the Board of an application for [a work permit;] registration; and”.

    Amend sec. 8, page 11, line 36, after “permit]” by inserting “Board.”.

    Amend sec. 23, page 20, by deleting line 11 and inserting: “the work permit, unless objected to by the Board or suspended or revoked.”.

    Amend sec. 23, page 20, line 12, by deleting “Board.”.

    Amend sec. 23, page 20, line 14, after “to” by inserting: “by the Board”.

    Amend sec. 23, page 20, line 15, by deleting: “revoked by the Board.” and inserting “revoked.”.

    Amend sec. 24, page 20, line 18, by deleting: “1 to 4, inclusive,” and inserting: “1, 2, 3, 4”.

    Amend sec. 24, page 20, by deleting lines 20 and 21 and inserting:

    “3.  Section 6 of this act becomes effective on October 1, 2003.

    4.  Sections 1.3, 1.7, 5, 7 to 14, inclusive, and 20 to 23, inclusive, of this act become effective on January 1, 2004.”.

    Senator Amodei moved the adoption of the amendment.

    Remarks by Senators Amodei and Carlton.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 434.

    Bill read second time.

    The following amendment was proposed by the Committee on Judiciary:

    Amendment No. 332.

    Amend section 1, page 3, line 18, by deleting “529.” and inserting: “529, unless the money is deposited after the entry of a judgment against the purchaser or account owner or the money will not be used by any beneficiary to attend a college or university.”.

    Amend sec. 2, page 6, line 29, by deleting “529.” and inserting: “529, unless the money is deposited after the entry of a judgment against the purchaser or account owner or the money will not be used by any beneficiary to attend a college or university.”.

    Amend sec. 3, page 8, line 36, by deleting “529.” and inserting: “529, unless the money is deposited after the entry of a judgment against the purchaser or account owner or the money will not be used by any beneficiary to attend a college or university.”.

    Amend the title of the bill, third line, by deleting “program;” and inserting: “program under certain circumstances;”.

    Amend the summary of the bill to read as follows:

    “SUMMARY—Exempts from execution by creditors certain money held in trust forming part of qualified tuition program under certain circumstances. (BDR 2-303)”.

    Senator Amodei moved the adoption of the amendment.

    Remarks by Senator Amodei.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 436.

    Bill read second time.

    The following amendment was proposed by the Committee on Judiciary:

    Amendment No. 333.

Amend the bill as a whole by deleting sec. 11 and adding:

    “Sec. 11.  (Deleted by amendment.)”.

    Amend sec. 12, page 6, lines 3 and 4, by deleting: “[written, acknowledged] signed” and inserting “written, acknowledged”.

    Amend sec. 26, page 15, lines 19 and 20, by deleting: “[written, acknowledged] signed” and inserting “written, acknowledged”.

    Amend sec. 27, page 16, line 18, after “person,” by inserting: “the corporation itself or any”.

    Amend sec. 28, page 17, line 19, after “person,” by inserting: “the corporation itself or any”.

    Amend sec. 35, page 24, by deleting lines 36 and 37 and inserting:

    “7.  If the”.

    Amend sec. 35, page 24, line 42, by deleting “directors.” and inserting: “directors, the termination of a director pursuant to such provisions in the articles or bylaws shall not be deemed a removal of the director pursuant to this section.”.

    Amend sec. 36, page 25, line 39, by deleting “are”.

    Amend sec. 36, page 25, line 40, by deleting “78.320.” and inserting: “78.320 must be determined.”.

    Amend sec. 36, page 25, line 44, by deleting “are”.

    Amend sec. 36, page 25, line 45, after “78.320” by inserting: “must be determined”.

    Amend sec. 49, page 36, line 25, by deleting: “the date that”.

    Amend sec. 50, page 36, line 43, by deleting: “the date that”.

    Amend sec. 50, page 37, line 1, after “1” by inserting “, 2”.

    Amend sec. 50, page 37, line 2, by deleting “2” and inserting “[2] 3”.

    Amend sec. 50, page 37, by deleting line 10 and inserting:

    “2.  A combination with an interested stockholder if the transaction by which the person became an interested stockholder was approved by the board of directors of the resident domestic corporation before the person became an interested stockholder.

    3.  A combination approved by the affirmative vote of the”.

    Amend sec. 79, page 49, line 16, by deleting “[written,] signed,” and inserting “written,”.

    Amend sec. 80, page 50, lines 18 and 19, by deleting: “[written, acknowledged] signed,” and inserting “written, acknowledged”.

    Amend sec. 103, page 59, line 13, by deleting “$150” and inserting “$25”.

    Amend sec. 112, page 62, lines 36 and 37, by deleting: “[written, acknowledged] signed” and inserting “written, acknowledged”.

    Amend the bill as a whole by adding a new section designated sec. 117.5, following sec. 117, to read as follows:

    “Sec. 117.5.  NRS 82.326 is hereby amended to read as follows:

    82.326  1.  Except as otherwise provided in subsection 5 and unless prohibited or limited by the articles or bylaws, an action that may be taken at a regular or special meeting of members, including the election of directors, may be taken without a meeting if the corporation mails or delivers a written ballot to every member entitled to vote on the matter.

    2.  A written ballot must:

    (a) Set forth each proposed action or candidate; and

    (b) Provide an opportunity to vote for or against each proposed action.

    3.  Approval by written ballot under this section is valid only when the number of votes cast by ballot equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve the matter at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot.

    4.  Solicitations for votes by written ballot must:

    (a) Indicate the number of responses needed to meet the requirement of a quorum;

    (b) State the percentage of approvals necessary to approve each matter other than election of directors; and

    (c) Specify the time by which a ballot must be received by the corporation in order to be counted.

    5.  Except as otherwise provided in the articles or bylaws, a written ballot may not be revoked.

    6.  Nothing in this section shall be construed to restrict the rights of a corporation to act as provided in NRS 82.276.”.

    Amend sec. 148, page 78, line 40, by deleting: “[written, acknowledged] signed” and inserting “written, acknowledged”.

    Amend sec. 149, page 79, line 29, by deleting: “[written, acknowledged] signed” and inserting “written, acknowledged”.

    Amend sec. 164, page 85, line 25, by deleting “decription” and inserting “description”.

    Amend sec. 200, page 102, line 32, by deleting “executing” and inserting: “[executing] adopting a governing instrument and signing”.

    Amend sec. 249, page 136, line 10, by deleting “NRS 92A.130,” and inserting: “NRS 92A.130 [,] and 92A.180,”.

    Amend sec. 253, page 141, line 23, after “document” by inserting “to be”.

    Senator Amodei moved the adoption of the amendment.

    Remarks by Senator Amodei.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 444.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 283.

    Amend the bill as a whole by deleting section 1 and adding a new section designated section 1, following the enacting clause, to read 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; and

        (2) The City of Las Vegas may not change the name of the real property from Floyd Lamb State Park unless the Legislature approves the change by statute or concurrent resolution.

    (b) Must not become effective unless and until:

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

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

    Senator O'Connell moved the adoption of the amendment.

    Remarks by Senator O'Connell.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 451.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 354.

Amend section 1, page 2, line 20, after “map,” by inserting: “certificate or affidavit of death, military discharge or document regarding taxes that is issued by the Internal Revenue Service of the United States Department of the Treasury,”.

    Amend section 1, page 2, by deleting lines 26 and 27 and inserting:

    “(c) Have a space of 3 inches by 3 inches at the upper right corner of the first page and have a margin of 1”.

    Amend section 1, page 2, line 39, by deleting “document;” and inserting:       “document, except in the case of a validated stamp or seal of a professional engineer or land surveyor who is licensed pursuant to chapter 625 of NRS;”.

    Amend section 1, page 2, by deleting lines 44 and 45 and inserting: “submitted for recording that has been filed with a court and which conforms to the formatting requirements established by the court.”.

    Senator O'Connell moved the adoption of the amendment.

    Remarks by Senator Tiffany.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 452.

    Bill read second time.

    The following amendment was proposed by the Committee on Government Affairs:

    Amendment No. 353.

    Amend section 1, page 1, line 4, after “(a)” by inserting: ““Barricade permit” means the official document issued by the building officer of a local government which authorizes the placement of barricade appurtenances or structures within a public right-of-way.

    (b)”.

    Amend section 1, page 1, by deleting lines 6 through 10 and inserting: “authorizes the construction of a structure.”.

    Amend section 1, page 1, line 11, by deleting “(b)” and inserting “[(b)] (c)”.

    Amend section 1, page 1, line 14, by deleting “(c)” and inserting “[(c)] (d)”.

    Amend section 1, page 1, by deleting lines 16 through 19 and inserting: “limitation, all permit fees and inspection fees. The term does not include, without”.

    Amend section 1, page 2, line 6, by deleting “(d)” and inserting “[(d)] (e)”.

    Amend section 1, page 2, line 11, by deleting “(e)” and inserting “[(e)] (f)”.

    Amend section 1, page 2, by deleting line 16 and inserting:

    “[(f)] (g) “Encroachment permit” means the official document issued by the building officer of a local government which authorizes construction activity within a public right-of-way.

    (h) “Operating cost” means the amount paid by a local”.

    Amend section 1, page 2, line 20, by deleting “(g)” and inserting “[(g)] (i)”.

    Amend section 1, page 2, lines 25 and 26, by deleting: “[June 30, 1989,] July 2, 2003,” and inserting: “June 30, [1989,] 2003,”.

    Amend section 1, page 2, line 27, by deleting: “consumer price index” and inserting: “Western Urban Nonseasonally Adjusted Consumer Price Index , as published by the United States Department of Labor”.

    Amend section 1, page 3, line 5, by deleting “fees;” and inserting: “fees [;] , fees imposed for the issuance of barricade permits and fees imposed for encroachment permits;”.

    Amend section 1, page 3, lines 11 and 15, after “issuance of” by inserting: “barricade permits, encroachment permits and”.

    Amend section 1, page 3, line 27, after “issuing” by inserting” “barricade permits, encroachment permits and”.

    Amend section 1, page 3, lines 29 and 34, after “issuance of” by inserting: “barricade permits, encroachment permits and”.

    Amend section 1, page 4, by deleting line 1 and inserting: “local government shall reduce the [building permit] fees for barricade permits, encroachment permits and building permits it charges by”.

    Senator Hardy moved the adoption of the amendment.

    Remarks by Senator Hardy.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 464.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 469.

Amend section 1, page 2, line 3, by deleting “or vessel”.

    Amend section 1, page 2, between lines 9 and 10, by inserting:

    “3.  The sale of a vessel to a nonresident who submits proof to the vendor that the vessel will be delivered out of state not later than 15 days after the sale.”.

    Amend sec. 4, page 2, by deleting lines 16 through 20 and inserting: “Taxation, the Division:

    (a) May require the submission of a copy of the bill of sale.”.

    Amend sec. 4, page 2, line 21, by deleting “Use” and inserting “Shall use”.

    Amend sec. 4, page 2, line 33, by deleting “shall” and inserting “may”.

    Amend sec. 4, pages 2 and 3, by deleting lines 34 through 43 on page 2 and lines 1 through 5 on page 3, and inserting: “regulations as necessary to carry out the provisions of this section.”.

    Amend sec. 4, page 3, line 6, by deleting “7.” and inserting “6.”.

    Amend sec. 8, page 5, line 1, by deleting “or vessel”.

    Amend sec. 8, page 5, between lines 7 and 8, by inserting:

    “3.  The sale of a vessel to a nonresident who submits proof to the vendor that the vessel will be delivered out of state not later than 15 days after the sale.”.

    Amend the bill as a whole by deleting sec. 9 and renumbering sections 10 through 14 as sections 9 through 13.

    Amend sec. 13, page 7, line 23, by deleting “6” and inserting “10”.

    Amend sec. 14, page 7, by deleting lines 33 through 39 and inserting:

    “Sec. 13.  1.  This section and section 2 of this act become effective upon passage and approval.

    2.  Section 4 of this act becomes effective upon passage and approval for the purpose of adopting regulations and on January 1, 2005, for all other purposes.

    3.  Sections 9, 10 and 11 of this act become effective on January 1, 2004.

    4.  Sections 1, 3, 5 to 8, inclusive, and 12 of this act become effective on January 1, 2005.”.

    Amend the title of the bill, ninth through eleventh lines, by deleting: “requiring the Department of Motor Vehicles to issue a special permit for the movement of a vessel under certain circumstances;”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 471.

    Bill read second time.

    The following amendment was proposed by the Committee on Taxation:

    Amendment No. 369.

Amend sec. 2, page 2, line 10, by deleting “31” and inserting “33”.

    Amend the bill as a whole by renumbering sections 14 through 52 as sections 16 through 54 and adding new sections designated sections 14 and 15, following sec. 13, to read as follows:

    “Sec. 14.  NRS 365.170 is hereby amended to read as follows:

    365.170  [1.]  Except as otherwise provided in NRS 365.135, every dealer shall, not later than the last day of each calendar month:

    [(a)] 1.  Render to the Department a statement of all aviation fuel and fuel for jet or turbine-powered aircraft sold, distributed or used by him in this state, as well as all such fuel sold, distributed or used in this state by a purchaser thereof upon which sale, distribution or use the dealer has assumed liability for the tax thereon pursuant to NRS 365.020, during the preceding calendar month; and

    [(b)] 2.  Pay an excise tax on:

        [(1)] (a) All fuel for jet or turbine-powered aircraft in the amount of 1 cent per gallon, plus any amount imposed by the county in which the fuel is sold, distributed or used pursuant to NRS 365.203; and

        [(2)] (b) Aviation fuel in the amount of 2 cents per gallon, plus any amount imposed by the county in which the fuel is sold, distributed or used pursuant to NRS 365.203,

so sold, distributed or used, in the manner and within the time prescribed in this chapter.

    [2.  A dealer shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the State.]

    Sec. 15.  NRS 365.175 is hereby amended to read as follows:

    365.175  [1.]  Except as otherwise provided in NRS 365.135, every supplier shall, not later than the last day of each calendar month:

    [(a)] 1.  Submit to the Department a statement of all motor vehicle fuel, except aviation fuel, sold, distributed or used by him in this state; and

    [(b)] 2.  Pay an excise tax on all motor vehicle fuel, except aviation fuel, in the amount of 17.65 cents per gallon sold, distributed or used in the manner prescribed in this chapter.

    [2.  A supplier shall hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the State.]”.

    Amend sec. 20, page 9, between lines 2 and 3, by inserting:

    “4.  If the Department determines that a dealer or supplier has failed to submit a tax return when due pursuant to this chapter or failed to pay the tax when due pursuant to this chapter, the Department may order the dealer or supplier to hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the State. The dealer or supplier shall comply with the order immediately upon receiving notification of the order from the Department.”.

    Amend sec. 29, page 13, line 13, by deleting: “30 and 31” and inserting: “32 and 33”.

    Amend sec. 32, page 13, line 32, by deleting “30” and inserting “32”.

    Amend sec. 47, page 21, by deleting lines 11 through 13 and inserting:                “4.  [Each] If the Department determines that a special fuel supplier or special fuel dealer has failed to submit a tax return when due pursuant to this chapter or failed to pay the tax when due pursuant to this chapter, the Department may order the special fuel supplier [and] or special fuel dealer [shall] to hold the amount of all taxes collected pursuant to this chapter in a separate account in trust for the state. The special fuel supplier or special fuel dealer shall comply with the order immediately upon receiving notification of the order from the Department.”.

    Senator McGinness moved the adoption of the amendment.

    Remarks by Senator McGinness.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

    Senate Bill No. 486.

    Bill read second time.

    The following amendment was proposed by the Committee on Natural Resources:

    Amendment No. 490.

Amend sec. 36, page 12, by deleting line 30 and inserting:

    “569.045  1.  Before any person gathers”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senator Rhoads.

    Amendment adopted.

    Bill ordered reprinted, engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved to proceed to Introductions, First Reading and Reference.

    Remarks by Senator Raggio.

    Motion carried.

INTRODUCTION, FIRST READING AND REFERENCE

    Assembly Bill No. 86.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Assembly Bill No. 258.

    Senator Rawson moved that the bill be referred to the Committee on Commerce and Labor.

    Motion carried.

    Assembly Bill No. 291.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Assembly Bill No. 293.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Assembly Bill No. 349.

    Senator Rawson moved that the bill be referred to the Committee on Human Resources and Facilities.

    Motion carried.

    Assembly Bill No. 450.

    Senator Rawson moved that the bill be referred to the Committee on Government Affairs.

    Motion carried.

    Assembly Bill No. 487.

    Senator Rawson moved that the bill be referred to the Committee on Legislative Affairs and Operations.

    Motion carried.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved to take Assembly Bill No. 58 as the next order of business.

    Motion carried.

GENERAL FILE AND THIRD READING

    Assembly Bill No. 58.

    Bill read third time.

    The following amendment was proposed by Senators Rhoads and McGinness:

    Amendment No. 506.

    Amend section 1, page 1, by deleting lines 4 and 5 and inserting: “being operated on a [paved] highway within a county whose population is 100,000 or more, to ride upon or within any”.

    Amend section 1, page 2, by deleting lines 6 through 9 and inserting:

        “(1) Not being operated on a freeway or other road that has two or more lanes for traffic traveling in one direction;

        (2) Being used in the course of farming or ranching; or

        (3) Being driven in a parade authorized by a local”.

    Amend the title of the bill to read as follows:

    “AN ACT relating to traffic laws; expanding the prohibition in certain counties against the driver of a motor vehicle allowing a person to ride upon or within certain portions of the motor vehicle to apply on paved and unpaved highways; revising provisions regarding the issuance of a citation for a violation of the prohibition; providing a penalty; and providing other matters properly relating thereto.”.

    Senator Rhoads moved the adoption of the amendment.

    Remarks by Senators Rhoads and Nolan.

    Amendment adopted.

    Bill ordered reprinted, re-engrossed and to third reading.

MOTIONS, RESOLUTIONS AND NOTICES

    Senator Raggio moved that Assembly Bills Nos. 6, 19, 42, 111, 177, 201, 302, 306 be taken from the General File and placed on the General File for the next legislative day.

    Remarks by Senator Raggio.

    Motion carried.

    Senator Hardy moved that Senate Bill No. 144 be re-referred to the Committee on Finance upon return from reprint.

    Remarks by Senator Hardy.

    Motion carried.

REPORTS OF COMMITTEES

Madam President:

    Your Committee on Commerce and Labor, to which was referred Senate Bill No. 250, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

    Also, your Committee on Commerce and Labor, to which were referred Senate Bills Nos. 320, 387, has had the same under consideration, and begs leave to report the same back with the recommendation: Amend, and do pass as amended.

Randolph J. Townsend, Chairman

GUESTS EXTENDED PRIVILEGE OF SENATE FLOOR

    On request of Senator Cegavske, the privilege of the floor of the Senate Chamber for this day was extended to Jennifer Odell and Adam Cegavske.

    On request of Senator Mathews, the privilege of the floor of the Senate Chamber for this day was extended to the following students and chaperones from the Corel Academy of Science: C. J. Alger, Jeana Bruscher, Henry Bruyn, Colt Callaghan, Jake Churchill, Taylor Cooke, Rachel Deci, Katie Deoge, Emily Driscoll, Adrian Duke, Colton Fent, Zachariah Ford, Lance Foster, Austin Foxcroft, Jeremy Ho, Francisco Ponce, Anna Sandoval, Tarek Barghouti, Joseph Bartlett, Rachel Davis, Ellie DelChiaro, Eric Kuhn, Veronica Lopez-Estrada, Luis Mayorga, Eric Medgyesi, Todd Morgan, Alex Murray-Watters, Colin Murray-Watters, Steven Nieto-Sparks, Marvin Patino, David Penner, Kayla Rider, Taiana Salazar, Amanda Tipton, Jessica Verdin, Andrew Warren, Robert Wiseman, Nyssa Bennett, Kathryn Barrett, Juliana Bledsoe, Cesare Caldwell, Christina Cohan, Alma Contreras, Nicole Dobson, Mystica Eller, Maria Garcia, William Hamilton, Heather Hollinger, Alex Joslin, Bradley Kannon, Trevor Kilgore, Chelsey Larsen, Jennifer Lee, Shyler Leon, Jonathon Long, Ashley Martinez, Leah Mazza, Noah McCorkle, Daniel Patton, Maria Perez, Wyatt Price, Martin Quesada, Sebastain Quidachay, Angela Ramirez, Bryan Redeford, Lindsy Roberts, Brittany Roeschen, Arianna Rosen, Robert Schlesinger, Austin Sigstad, Kyle Smith, Riley Tauchen, Christopher White, Michael Williams, Max Wise, Paul Yarborough; chaperones: Susan Driscoll, Melvin Sandoval, Fred Bartlett, Troy Segmiller, Scott Sigstad, Janet Long, Leroy Kisling, Diane Wiseman, Michelle Medgyesi, Colleen Murray, Ray Valdez, Suzie Stormon, Linda Dawson, Timothy Patton and Sigrid Kilgore.

    Senator Raggio moved that the Senate adjourn until Monday, April 21, 2003, at 10 a.m.

    Motion carried.

    Senate adjourned at 1:22 p.m.

Approved:                                                                  Lorraine T. Hunt

                                                                                   President of the Senate

Attest:    Claire J. Clift

                Secretary of the Senate