[Rev. 2/10/2015 4:17:17
PM--2014R2]
CHAPTER 116A - COMMON-INTEREST
COMMUNITIES: REGULATION OF COMMUNITY MANAGERS AND OTHER PERSONNEL
GENERAL PROVISIONS
NRS 116A.010 Definitions.
NRS 116A.020 “Administrator”
defined.
NRS 116A.030 “Association”
defined.
NRS 116A.040 “Certificate”
defined.
NRS 116A.045 “Client”
defined.
NRS 116A.050 “Commission”
defined.
NRS 116A.060 “Common-interest
community” defined.
NRS 116A.070 “Community
manager” defined.
NRS 116A.080 “Division”
defined.
NRS 116A.090 “Executive
board” defined.
NRS 116A.100 “Hearing
panel” defined.
NRS 116A.105 “Management
agreement” defined.
NRS 116A.110 “Management
of a common-interest community” defined.
NRS 116A.120 “Registration”
defined.
NRS 116A.130 “Reserve
study specialist” defined.
ADMINISTRATION AND ENFORCEMENT OF CHAPTER
NRS 116A.200 Administration
of chapter; regulations of Commission and Real Estate Administrator; delegation
of authority; publications.
NRS 116A.210 Employment
of personnel by Real Estate Division; duties of Attorney General; legal
opinions by Attorney General.
NRS 116A.220 Deposit
of money; payment of claims.
NRS 116A.230 Immunity.
NRS 116A.240 Service
of notice and other information upon Commission.
NRS 116A.250 Authority
for Real Estate Division to conduct business electronically; regulations; fees;
use of unsworn declaration; exclusions.
NRS 116A.260 Maintenance
by Real Estate Division of record of complaints, investigations and denials of
applications.
NRS 116A.270 Confidentiality
of records: Certain records relating to complaint or investigation deemed
confidential; certain records relating to disciplinary action deemed public
records.
NRS 116A.280 Issuance
and enforcement of subpoenas.
NRS 116A.290 Witnesses:
Payment of fees and mileage.
NRS 116A.300 Appointment
of hearing panels; delegation of powers and duties; appeals to Commission.
NRS 116A.310 Use
of audio or video teleconference for hearings.
CERTIFICATES AND REGISTRATION
NRS 116A.400 Person
prohibited from acting as community manager without certificate; regulations
governing standards of practice; investigations; disciplinary action;
exceptions.
NRS 116A.410 Regulations
governing certificates issued to community managers; temporary certificates;
fees.
NRS 116A.420 Person
prohibited from acting as reserve study specialist without registering with
Division; regulations governing standards of practice; investigations;
disciplinary action; exceptions.
NRS 116A.430 Regulations
governing registration of reserve study specialists; fees.
NRS 116A.435 Renewal
of certificate or registration: Application to include information relating to
state business license; denial of renewal for unpaid debt assigned to State Controller
for collection.
NRS 116A.440 Payment
of child support: Statement by applicant for certificate or registration;
grounds for denial of certificate or registration; duty of Division. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
NRS 116A.450 Suspension
of certificate or registration for failure to pay child support or comply with
certain subpoenas or warrants; reinstatement of certificate or registration.
[Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring
each state to establish procedures for withholding, suspending and restricting
the professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
NRS 116A.460 Expiration,
revocation or surrender of certificate or registration does not prohibit
disciplinary action against holder of certificate or registration.
NRS 116A.470 Creation
and maintenance of website through which certificates or registrations may be
renewed; fees.
DUTIES, MANAGEMENT AGREEMENTS, STANDARDS OF PRACTICE AND
PROHIBITED ACTS
NRS 116A.600 Requirement
for community manager or reserve study specialist to notify Division in writing
of certain convictions.
NRS 116A.610 Requirement
for community manager to disclose certain information to prospective client
before entering into management agreement.
NRS 116A.620 Management
agreement: Contents; requirements; community manager to provide executive board
with evidence of insurance; community manager to provide executive board with
copy; changes; termination or assignment.
NRS 116A.630 Standards
of practice for community managers.
NRS 116A.640 Community
manager prohibited from engaging in certain acts; exceptions.
REMEDIES AND PENALTIES
NRS 116A.900 Administrative
fine for engaging in certain conduct without certificate, registration or
authorization; procedure for imposition of fine; judicial review; exceptions.
NRS 116A.910 Injunctions.
_________
GENERAL PROVISIONS
NRS 116A.010 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 116A.020 to 116A.130, inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 2005, 2574; A 2009, 2817)
NRS 116A.020 “Administrator” defined. “Administrator”
means the Real Estate Administrator.
(Added to NRS by 2005, 2574)
NRS 116A.030 “Association” defined. “Association”
has the meaning ascribed to it in NRS
116.011 or 116B.030.
(Added to NRS by 2005, 2574; A 2007, 2274)
NRS 116A.040 “Certificate” defined. “Certificate”
means a certificate for the management of a common-interest community or the
management of an association of a condominium hotel issued by the Division
pursuant to this chapter.
(Added to NRS by 2005, 2574; A 2007, 2274)
NRS 116A.045 “Client” defined. “Client”
means an association that has entered into a management agreement with a
community manager.
(Added to NRS by 2009, 2812)
NRS 116A.050 “Commission” defined. “Commission”
means the Commission for Common-Interest Communities and Condominium Hotels
created by NRS 116.600.
(Added to NRS by 2005, 2574; A 2007, 2274)
NRS 116A.060 “Common-interest community” defined. “Common-interest
community” has the meaning ascribed to it in NRS
116.021.
(Added to NRS by 2005, 2574)
NRS 116A.070 “Community manager” defined. “Community
manager” means a person who provides for or otherwise engages in the management
of a common-interest community or the management of an association of a
condominium hotel.
(Added to NRS by 2005, 2574; A 2007, 2274)
NRS 116A.080 “Division” defined. “Division”
means the Real Estate Division of the Department of Business and Industry.
(Added to NRS by 2005, 2574)
NRS 116A.090 “Executive board” defined. “Executive
board” has the meaning ascribed to it in NRS
116.045 or 116B.100.
(Added to NRS by 2005, 2574; A 2007, 2274)
NRS 116A.100 “Hearing panel” defined. “Hearing
panel” means a hearing panel appointed by the Commission pursuant to NRS 116A.300.
(Added to NRS by 2005, 2574)
NRS 116A.105 “Management agreement” defined. “Management
agreement” means an agreement for the management of a common-interest
community.
(Added to NRS by 2009, 2812)
NRS 116A.110 “Management of a common-interest community” defined. “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.
(Added to NRS by 2005, 2574)
NRS 116A.120 “Registration” defined. “Registration”
means a registration to conduct a study of the reserves of an association
pursuant to NRS 116.31152 or 116B.605 with the Division pursuant to
this chapter.
(Added to NRS by 2005, 2574; A 2007, 2274; 2009, 2932)
NRS 116A.130 “Reserve study specialist” defined. “Reserve
study specialist” means a person who conducts a study of the reserves of an
association pursuant to NRS 116.31152
or 116B.605.
(Added to NRS by 2005, 2574; A 2007, 2274)
ADMINISTRATION AND ENFORCEMENT OF CHAPTER
NRS 116A.200 Administration of
chapter; regulations of Commission and Real Estate Administrator; delegation of
authority; publications.
1. The provisions of this chapter must be
administered by the Division, subject to the administrative supervision of the
Director of the Department of Business and Industry.
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, posted on its website 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 for reserve study specialists
and may offer such documents for sale at a reasonable fee.
(Added to NRS by 2005, 2574)
NRS 116A.210 Employment of personnel by Real Estate Division; duties of
Attorney General; legal opinions by Attorney General.
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 the Attorney General by the
Commission or the Division.
(Added to NRS by 2005, 2575)
NRS 116A.220 Deposit of money; payment of claims.
1. Except as otherwise provided in
subsection 2, all money received by the Commission, a hearing panel or the
Division pursuant to this chapter must be deposited into the Account for
Common-Interest Communities and Condominium Hotels created pursuant to NRS 116.630.
2. 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.
3. Money for the support of the Commission
and Division in carrying out the provisions of this chapter must be provided by
direct legislative appropriation and be paid out on claims as other claims
against the State are paid.
(Added to NRS by 2005, 2576; A 2007, 2274)
NRS 116A.230 Immunity. The
Commission and its members, each hearing panel and its members, the
Administrator, 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.
(Added to NRS by 2005, 2575)
NRS 116A.240 Service of notice and other information upon Commission. 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.
(Added to NRS by 2005, 2575)
NRS 116A.250 Authority for Real Estate Division to conduct business
electronically; regulations; fees; use of unsworn declaration; exclusions.
1. The Administrator may adopt regulations
which establish procedures for the Division to conduct business electronically
pursuant to title 59 of NRS with persons who are regulated pursuant to this chapter
and with any other persons with whom the Division conducts business. The
regulations may include, without limitation, the establishment of fees to pay
the costs of conducting business electronically with the Division.
2. In addition to the process authorized
by NRS 719.280, if the Division is
conducting business electronically with a person and a law requires a signature
or record to be notarized, acknowledged, verified or made under oath, the
Division may allow the person to substitute a declaration that complies with
the provisions of NRS 53.045 or NRS 53.250 to 53.390, inclusive, to satisfy the legal
requirement.
3. The Division may refuse to conduct
business electronically with a person who has failed to pay money which the
person owes to the Division or the Commission.
(Added to NRS by 2005, 2575; A 2011, 15)
NRS 116A.260 Maintenance by Real Estate Division of record of complaints,
investigations and denials of applications. The
Division shall maintain in each district office a public docket or other record
in which it shall record, from time to time as made:
1. The rulings or decisions upon all
complaints filed with that district office.
2. All investigations instituted by that
district office in the first instance, upon or in connection with which any
hearing has been held, or in which the person charged has made no defense.
3. Denials of applications made to that
district office for examination, registration or issuance of a certificate.
(Added to NRS by 2005, 2575; A 2009, 2932)
NRS 116A.270 Confidentiality of records: Certain records relating to
complaint or investigation deemed confidential; certain records relating to
disciplinary action deemed public records.
1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Division alleging a violation of this chapter or chapter 116 or 116B
of NRS, all documents and other information filed with the complaint and all
documents and other information compiled as a result of an investigation
conducted to determine whether to initiate disciplinary action are
confidential.
2. The Division shall not disclose any
information that is confidential pursuant to subsection 1, in whole or in part,
to any person, including, without limitation, a person who is the subject of an
investigation or complaint, unless and until a formal complaint is filed
pursuant to subsection 3 and the disclosure is required pursuant to subsection
3, except that the Division may disclose the information described in
subsection 1 as necessary in the course of administering this chapter or to a
licensing board or agency or any other governmental agency, including, without
limitation, a law enforcement agency, that is investigating a person who holds
a certificate or registration issued pursuant to this chapter.
3. The formal complaint or other charging
documents filed by the Administrator with the Commission to initiate
disciplinary action and all documents and other information considered by the
Commission or a hearing panel when determining whether to impose discipline are
public records.
(Added to NRS by 2005, 2575; A 2007, 1547, 2070, 2275; 2009, 2901)
NRS 116A.280 Issuance and enforcement of subpoenas.
1. To carry out the purposes of this
chapter, the 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 20 days after 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 20 days after the date of service of the order, and show cause why the
person has not complied with the subpoena. A certified copy of the order 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 must be dealt with as
for contempt of court.
(Added to NRS by 2005, 2579)
NRS 116A.290 Witnesses: Payment of fees and mileage.
1. Each witness who is subpoenaed and
appears at a hearing is entitled to receive for his or her attendance the same
fees and mileage allowed by law to a witness in a civil case.
2. The fees and mileage for the witness:
(a) Must be paid by the party at whose request
the witness is subpoenaed; or
(b) If the appearance of the witness is not
requested by any party but the witness is subpoenaed at the request of the
Commission or a hearing panel, must be paid by the Division.
(Added to NRS by 2005, 2579)
NRS 116A.300 Appointment of hearing panels; delegation of powers and duties;
appeals to Commission.
1. The Commission may appoint one or more
hearing panels. Each hearing panel must consist of one or more independent
hearing officers. An independent hearing officer may be, without limitation, a
member of the Commission or an employee of the Commission.
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 Chair of
the Commission, provides written notice to all parties of the intention of the
Commission to review the final order.
(Added to NRS by 2005, 2580; A 2009, 2902)
NRS 116A.310 Use of audio or video teleconference for hearings. 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.
(Added to NRS by 2005, 2580)
CERTIFICATES AND REGISTRATION
NRS 116A.400 Person prohibited from acting as community manager without
certificate; regulations governing standards of practice; investigations;
disciplinary action; exceptions.
1. Except as otherwise provided in this
section, a person shall not act as a community manager unless the person holds
a certificate.
2. In addition to the standards of
practice for community managers set forth in NRS
116A.630 and 116A.640, the Commission shall by
regulation adopt any additional standards of practice for community managers
who hold certificates that the Commission deems appropriate and necessary.
3. The Division may investigate any
community manager who holds a certificate to ensure that the community manager
is complying with the provisions of this chapter and chapters 116 and 116B
of NRS and any additional standards of practice adopted by the Commission.
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 certificate has violated any provision of
this chapter or chapter 116 or 116B of NRS or any of the additional standards
of practice adopted by the Commission, the Commission or the hearing panel may
take appropriate disciplinary action against the community manager.
5. In addition to any other remedy or
penalty, the Commission may:
(a) Refuse to issue a certificate to a person who
has failed to pay money which the person owes to the Commission or the
Division.
(b) Suspend, revoke or refuse to renew the
certificate of a person who has failed to pay money which the person owes to
the Commission or the Division.
6. The provisions of this section do not
apply to:
(a) A financial institution that is engaging in
an activity permitted by law.
(b) An attorney who is licensed to practice in
this State and who is acting in that capacity.
(c) A trustee with respect to the property of the
trust.
(d) A receiver with respect to property subject
to the receivership.
(e) A member of an executive board or an officer
of an association who is acting solely within the scope of his or her duties as
a member of the executive board or an officer of the association.
(Added to NRS by 2005, 2576; A 2007, 2275; 2009, 2817)
NRS 116A.410 Regulations governing certificates issued to community managers;
temporary certificates; fees.
1. The Commission shall by regulation
provide for the issuance by the Division of certificates. 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. The regulations must include,
without limitation, provisions that:
(1) Provide for the issuance of a
temporary certificate for a 1-year period to a person who:
(I) Holds a professional designation
in the field of management of a common-interest community from a nationally recognized
organization;
(II) Provides evidence that the
person has been engaged in the management of a common-interest community for at
least 5 years; and
(III) Has not been the subject of
any disciplinary action in another state in connection with the management of a
common-interest community.
(2) Except as otherwise provided in
subparagraph (3), provide for the issuance of a temporary certificate for a
1-year period to a person who:
(I) Receives an offer of employment
as a community manager from an association or its agent; and
(II) Has management experience
determined to be sufficient by the executive board of the association or its
agent making the offer in sub-subparagraph (I). The executive board or its
agent must have sole discretion to make the determination required in this
sub-subparagraph.
(3) Require a temporary certificate
described in subparagraph (2) to expire before the end of the 1-year period if
the certificate holder ceases to be employed by the association, or its agent,
which offered the person employment as described in subparagraph (2).
(4) Require a person who is issued a
temporary certificate as described in subparagraph (1) or (2) to successfully
complete not less than 18 hours of instruction relating to the Uniform
Common-Interest Ownership Act within the 1-year period.
(5) Provide for the issuance of a
certificate at the conclusion of the 1-year period if the person:
(I) Has successfully completed not
less than 18 hours of instruction relating to the Uniform Common-Interest
Ownership Act; and
(II) Has not been the subject of any
disciplinary action pursuant to this chapter or chapter
116 of NRS or any regulations adopted pursuant thereto.
(6) Provide that a temporary certificate
described in subparagraph (1) or (2) and a certificate described in
subparagraph (5):
(I) Must authorize the person who is
issued a temporary certificate described in subparagraph (1) or (2) or
certificate described in subparagraph (5) to act in all respects as a community
manager and exercise all powers available to any other community manager
without regard to experience; and
(II) Must not be treated as a
limited, restricted or provisional form of a certificate.
(b) May require applicants to pass an examination
in order to obtain a certificate other than a temporary certificate described
in paragraph (a). 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) Must establish a procedure for a person who
was previously issued a certificate and who no longer holds a certificate to
reapply for and obtain a new certificate without undergoing any period of
supervision under another community manager, regardless of the length of time
that has passed since the person last acted as a community manager.
(d) 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.
(e) 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.
(f) 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.
3. As used in this section, “management
experience” means experience in a position in business or government,
including, without limitation, in the military:
(a) In which the person holding the position was
required, as part of holding the position, to engage in one or more management
activities, including, without limitation, supervision of personnel,
development of budgets or financial plans, protection of assets, logistics,
management of human resources, development or training of personnel, public
relations, or protection or maintenance of facilities; and
(b) Without regard to whether the person holding
the position has any experience managing or otherwise working for an
association.
(Added to NRS by 2005, 2577; A 2009, 1254,
2902; 2011, 2459)
NRS 116A.420 Person prohibited from acting as reserve study specialist
without registering with Division; regulations governing standards of practice;
investigations; disciplinary action; exceptions.
1. Except as otherwise provided in this
section and subsection 2 of NRS 116.31152,
a person shall not act as a reserve study specialist unless the person
registers with the Division on a form provided by the Division.
2. The Commission shall by regulation
provide for the standards of practice for reserve study specialists.
3. The Division may investigate any
reserve study specialist to ensure that the reserve study specialist is
complying with the provisions of this chapter and chapters
116 and 116B of NRS and the standards
of practice adopted by the Commission.
4. In addition to any other remedy or
penalty, if the Commission or a hearing panel, after notice and hearing, finds
that a reserve study specialist has violated any provision of this chapter or chapter 116 or 116B
of NRS or any of the standards of practice adopted by the Commission, the
Commission or the hearing panel may take appropriate disciplinary action
against the reserve study specialist.
5. In addition to any other remedy or
penalty, the Commission may:
(a) Refuse to accept the registration of a person
who has failed to pay money which the person owes to the Commission or the
Division.
(b) Suspend, revoke or refuse to renew the
registration of a person who has failed to pay money which the person owes to
the Commission or the Division.
6. The provisions of this section do not
apply to a member of an executive board or an officer of an association who is
acting solely within the scope of his or her duties as a member of the
executive board or an officer of the association.
7. A person who assists a registered
reserve study specialist in preparing a reserve study, signed by a registered
reserve study specialist, is not required to register as a reserve study
specialist.
(Added to NRS by 2005, 2577; A 2007, 2276; 2009, 2214,
2933)
NRS 116A.430 Regulations governing registration of reserve study specialists;
fees.
1. The Commission shall by regulation provide
for the registration by the Division of reserve study specialists. The
regulations:
(a) Must establish the qualifications for
registration, including, without limitation, the education and experience
required for registration.
(b) May require applicants to pass an examination
for registration. 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 who has registered, including, without
limitation, the grounds for placing conditions, limitations or restrictions on
registration and for the suspension or revocation of registration.
(e) Must establish rules of practice and
procedure for conducting disciplinary hearings.
2. The Division may collect a fee for
registration in an amount not to exceed the administrative costs of
registration.
(Added to NRS by 2005, 2577; A 2009, 2933)
NRS 116A.435 Renewal of certificate or registration: Application to include
information relating to state business license; denial of renewal for unpaid
debt assigned to State Controller for collection.
1. In addition to any other requirements
set forth in this chapter, an applicant for the renewal of a certificate or
registration must indicate in the application submitted to the Division whether
the applicant has a state business license. If the applicant has a state
business license, the applicant must include in the application the state
business license number assigned by the Secretary of State upon compliance with
the provisions of chapter 76 of NRS.
2. A certificate or registration may not
be renewed by the Division if:
(a) The applicant fails to submit the information
required by subsection 1; or
(b) The State Controller has informed the
Division pursuant to subsection 5 of NRS
353C.1965 that the applicant owes a debt to an agency that has been
assigned to the State Controller for collection and the applicant has not:
(1) Satisfied the debt;
(2) Entered into an agreement for the
payment of the debt pursuant to NRS
353C.130; or
(3) Demonstrated that the debt is not
valid.
3. As used in this section:
(a) “Agency” has the meaning ascribed to it in NRS 353C.020.
(b) “Debt” has the meaning ascribed to it in NRS 353C.040.
(Added to NRS by 2013, 2723)
NRS 116A.440 Payment of child support: Statement by applicant for certificate
or registration; grounds for denial of certificate or registration; duty of
Division. [Effective until the date of the repeal of 42 U.S.C. § 666, the
federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. An applicant for a certificate or
registration shall submit to the Division:
(a) The social security number of the applicant;
and
(b) The statement prescribed by the Division of
Welfare and Supportive Services of the Department of Health and Human Services
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 registration or the issuance of the certificate; or
(b) A separate form prescribed by the Division.
3. A certificate may not be issued and an
application for registration may not be accepted 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 the applicant 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 the applicant 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.
(Added to NRS by 2005, 2578; A 2009, 2934)
NRS 116A.450 Suspension of certificate or registration for failure to pay
child support or comply with certain subpoenas or warrants; reinstatement of
certificate or registration. [Effective until the date of the repeal of 42
U.S.C. § 666, the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational and
recreational licenses for child support arrearages and for noncompliance with
certain processes relating to paternity or child support proceedings.]
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 a person who is
registered or the holder of a certificate, the Division shall deem the
registration or 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 person who is registered or the holder of the certificate by the district
attorney or other public agency pursuant to NRS
425.550 stating that the person who is registered or 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
registration or 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 person
who is registered or the holder of the certificate that he or she has complied
with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.
(Added to NRS by 2005, 2578; A 2009, 2934)
NRS 116A.460 Expiration, revocation or surrender of certificate or
registration does not prohibit disciplinary action against holder of
certificate or registration. The
expiration or revocation of a registration or certificate by operation of law
or by order or decision of any agency or court of competent jurisdiction, or
the voluntary surrender of such a registration or certificate by the person who
is registered or the holder of the certificate does not:
1. Prohibit the Commission or the Division
from initiating or continuing an investigation of, or action or disciplinary
proceeding against, the person who is registered or the holder of the
certificate as authorized pursuant to the provisions of this chapter or chapter 116 or 116B
of NRS 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 chapter 116 or 116B
of NRS or the regulations adopted pursuant thereto against the person who is
registered or the holder of the certificate.
(Added to NRS by 2005, 2579; A 2007, 2276; 2009, 2935)
NRS 116A.470 Creation and maintenance of website through which certificates
or registrations may be renewed; fees. The
Division may:
1. Create and maintain a secure website on
the Internet through which each certificate or registration issued pursuant to
the provisions of this chapter may be renewed; and
2. For each certificate or registration renewed
through the use of a website created and maintained pursuant to subsection 1,
charge a fee in addition to any other fee provided for pursuant to this chapter
which must not exceed the actual cost to the Division for providing that
service.
(Added to NRS by 2007, 586)
DUTIES, MANAGEMENT AGREEMENTS, STANDARDS OF PRACTICE AND
PROHIBITED ACTS
NRS 116A.600 Requirement for community manager or reserve study specialist to
notify Division in writing of certain convictions.
1. A community manager who holds a
certificate and a reserve study specialist who is registered shall notify the
Division in writing if he or she is convicted of, or enters a plea of guilty,
guilty but mentally ill or nolo contendere to, a felony or any offense
involving moral turpitude.
2. A community manager or reserve study
specialist shall submit the notification required by subsection 1 not more than
10 days after the conviction or entry of the plea of guilty, guilty but
mentally ill or nolo contendere.
(Added to NRS by 2007, 1547)
NRS 116A.610 Requirement for community manager to disclose certain
information to prospective client before entering into management agreement. Before entering into a management agreement, a
community manager shall disclose in writing to the prospective client any
material and relevant information which the community manager knows, or by the
exercise of reasonable care and diligence should know, relate to the
performance of the management agreement, including any matters which may affect
the community manager’s ability to comply with the provisions of this chapter
or chapter 116 or 116B of NRS. Such written disclosure must
include, without limitation:
1. Whether the community manager, or any
member of his or her organization, expects to receive any direct or indirect
compensation, gifts or profits from any person who will perform services for
the client and, if so, the identity of the person and the nature of the
services rendered.
2. Any affiliation with or financial
interest in any person or business who furnishes any goods or services to the
client.
3. Any pecuniary relationships with any
unit’s owner, member of the executive board or officer of the client.
(Added to NRS by 2009, 2812)
NRS 116A.620 Management agreement: Contents; requirements; community manager
to provide executive board with evidence of insurance; community manager to
provide executive board with copy; changes; termination or assignment.
1. Any management agreement must:
(a) Be in writing and signed by all parties;
(b) Be entered into between the client and the
community manager or the employer of the community manager if the community
manager is acting on behalf of a corporation, partnership, limited partnership,
limited-liability partnership, limited-liability company or other entity;
(c) State the term of the management agreement;
(d) State the basic consideration for the
services to be provided and the payment schedule;
(e) Include a complete schedule of all fees,
costs, expenses and charges to be imposed by the community manager, whether
direct or indirect, including, without limitation:
(1) The costs for any new client or
start-up costs;
(2) The fees for special or nonroutine
services, such as the mailing of collection letters, the recording of liens and
foreclosing of property;
(3) Reimbursable expenses;
(4) The fees for the sale or resale of a
unit or for setting up the account of a new member; and
(5) The portion of fees that are to be
retained by the client and the portion to be retained by the community manager;
(f) State the identity and the legal status of
the contracting parties;
(g) State any limitations on the liability of
each contracting party;
(h) Include a statement of the scope of work of
the community manager;
(i) State the spending limits of the community
manager;
(j) Include provisions relating to the grounds
and procedures for termination of the community manager;
(k) Identify the types and amounts of insurance
coverage to be carried by each contracting party, including, without
limitation:
(1) A requirement that the community
manager or his or her employer shall maintain insurance covering liability for
errors or omissions, professional liability or a surety bond to compensate for
losses actionable pursuant to this chapter in an amount of $1,000,000 or more;
(2) An indication of which contracting
party will maintain fidelity bond coverage; and
(3) A statement as to whether the client
will maintain directors and officers liability coverage for the executive board;
(l) Include provisions for dispute resolution;
(m) Acknowledge that all records and books of the
client are the property of the client, except any proprietary information and
software belonging to the community manager;
(n) State the physical location, including the
street address, of the records of the client, which must be within 60 miles
from the physical location of the common-interest community;
(o) State the frequency and extent of regular
inspections of the common-interest community; and
(p) State the extent, if any, of the authority of
the community manager to sign checks on behalf of the client in an operating
account.
2. In addition to any other requirements
under this section, a management agreement may:
(a) Provide for mandatory binding arbitration; or
(b) Allow the provisions of the management
agreement to apply month to month following the end of the term of the
management agreement, but the management agreement may not contain an automatic
renewal provision.
3. Not later than 10 days after the
effective date of a management agreement, the community manager shall provide
each member of the executive board evidence of the existence of the required
insurance, including, without limitation:
(a) The names and addresses of all insurance
companies;
(b) The total amount of coverage; and
(c) The amount of any deductible.
4. After signing a management agreement,
the community manager shall provide a copy of the management agreement to each
member of the executive board. Within 30 days after an election or appointment
of a new member to the executive board, the community manager shall provide the
new member with a copy of the management agreement.
5. Any changes to a management agreement
must be initialed by the contracting parties. If there are any changes after
the execution of a management agreement, those changes must be in writing and
signed by the contracting parties.
6. Except as otherwise provided in the
management agreement, upon the termination or assignment of a management agreement,
the community manager shall, within 30 days after the termination or
assignment, transfer possession of all books, records and other papers of the
client to the succeeding community manager, or to the client if there is no
succeeding community manager, regardless of any unpaid fees or charges to the
community manager or management company.
7. Notwithstanding any provision in a
management agreement to the contrary, a management agreement may be terminated
by the client without penalty upon 30 days’ notice following a violation by the
community manager of any provision of this chapter or chapter 116 of NRS.
(Added to NRS by 2009, 2813)
NRS 116A.630 Standards of practice for community managers. In addition to any additional standards of
practice for community managers adopted by the Commission by regulation
pursuant to NRS 116A.400, a community manager
shall:
1. Except as otherwise provided by
specific statute, at all times:
(a) Act as a fiduciary in any client
relationship; and
(b) Exercise ordinary and reasonable care in the
performance of duties.
2. Comply with all applicable:
(a) Federal, state and local laws, regulations
and ordinances; and
(b) Lawful provisions of the governing documents
of each client.
3. Keep informed of new developments in
the management of a common-interest community through continuing education,
including, without limitation, new developments in law, insurance coverage and
accounting principles.
4. Advise a client to obtain advice from
an independent expert relating to matters that are beyond the expertise of the
community manager.
5. Under the direction of a client,
uniformly enforce the provisions of the governing documents of the association.
6. At all times ensure that:
(a) The financial transactions of a client are
current, accurate and properly documented; and
(b) There are established policies and procedures
that are designed to provide reasonable assurances in the reliability of the
financial reporting, including, without limitation:
(1) Proper maintenance of accounting
records;
(2) Documentation of the authorization for
any purchase orders, expenditures or disbursements;
(3) Verification of the integrity of the
data used in business decisions;
(4) Facilitation of fraud detection and
prevention; and
(5) Compliance with all applicable laws
and regulations governing financial records.
7. Prepare or cause to be prepared interim
and annual financial statements that will allow the Division, the executive
board, the units’ owners and the accountant or auditor to determine whether the
financial position of an association is fairly presented in accordance with all
applicable laws and regulations.
8. Cause to be prepared, if required by
the Division, a financial audit performed by an independent certified public
accountant of the records of the community manager pertaining to the
common-interest community, which must be made available to the Division.
9. Make the financial records of an
association available for inspection by the Division in accordance with the
applicable laws and regulations.
10. Cooperate with the Division in
resolving complaints filed with the Division.
11. Upon written request, make the
financial records of an association available to the units’ owners electronically
or during regular business hours required for inspection at a reasonably
convenient location, which must be within 60 miles from the physical location
of the common-interest community, and provide copies of such records in
accordance with the applicable laws and regulations. As used in this
subsection, “regular business hours” means Monday through Friday, 9 a.m. to 5
p.m., excluding legal holidays.
12. Maintain and invest association funds
in a financial institution whose accounts are insured by the Federal Deposit
Insurance Corporation, National Credit Union Share Insurance Fund, Securities
Investor Protection Corporation, or a private insurer approved pursuant to NRS 678.755, or in government securities
that are backed by the full faith and credit of the United States Government.
13. Except as required under collection
agreements, maintain the various funds of the client in separate financial
accounts in the name of the client and ensure that the association is
authorized to have direct access to those accounts.
14. Provide notice to each unit’s owner
that the executive board is aware of all legal requirements pursuant to the
applicable laws and regulations.
15. Maintain internal accounting controls,
including, without limitation, segregation of incompatible accounting
functions.
16. Ensure that the executive board
develops and approves written investment policies and procedures.
17. Recommend in writing to each client
that the client register with the Division, maintain its registration and file
all papers with the Division and the Secretary of State as required by law.
18. Comply with the directions of a
client, unless the directions conflict with the governing documents of the
client or the applicable laws or regulations of this State.
19. Recommend in writing to each client
that the client be in compliance with all applicable federal, state and local
laws, regulations and ordinances and the governing documents of the client.
20. Obtain, when practicable, at least
three qualified bids for any capital improvement project for the client.
21. Develop written collection policies,
approved by the executive board, to comply with all applicable federal, state
and local laws, regulations and ordinances relating to the collection of debt.
The collection policies must require:
(a) That the executive board approve all
write-offs of debt; and
(b) That the community manager provide timely
updates and reports as necessary.
(Added to NRS by 2009, 2814)
NRS 116A.640 Community manager prohibited from engaging in certain acts;
exceptions. In addition to the
standards of practice for community managers set forth in NRS 116A.630 and any additional standards of practice
adopted by the Commission by regulation pursuant to NRS
116A.400, a community manager shall not:
1. Except as otherwise required by law or
court order, disclose confidential information relating to a client, which
includes, without limitation, the business affairs and financial records of the
client, unless the client agrees to the disclosure in writing.
2. Impede or otherwise interfere with an
investigation of the Division by:
(a) Failing to comply with a request of the
Division to provide documents;
(b) Supplying false or misleading information to
an investigator, auditor or any other officer or agent of the Division; or
(c) Concealing any facts or documents relating to
the business of a client.
3. Commingle money or other property of a
client with the money or other property of another client, another association,
the community manager or the employer of the community manager.
4. Use money or other property of a client
for his or her own personal use.
5. Be a signer on a withdrawal from a
reserve account of a client.
6. Except as otherwise permitted by the
provisions of the court rules governing the legal profession, establish an
attorney-client relationship with an attorney or law firm which represents a
client that employs the community manager or with whom the community manager
has a management agreement.
7. Provide or attempt to provide to a
client a service concerning a type of property or service:
(a) That is outside the community manager’s field
of experience or competence without the assistance of a qualified authority
unless the fact of his or her inexperience or incompetence is disclosed fully
to the client and is not otherwise prohibited by law; or
(b) For which the community manager is not
properly licensed.
8. Intentionally apply a payment of an
assessment from a unit’s owner towards any fine, fee or other charge that is
due.
9. Refuse to accept from a unit’s owner
payment of any assessment, fine, fee or other charge that is due because there
is an outstanding payment due.
10. Collect any fees or other charges from
a client not specified in the management agreement.
11. Accept any compensation, gift or any
other item of material value as payment or consideration for a referral or in
the furtherance or performance of his or her normal duties unless:
(a) Acceptance of the compensation, gift or other
item of material value complies with the provisions of NRS 116.31185 or 116B.695 and all other applicable
federal, state and local laws, regulations and ordinances; and
(b) Before acceptance of the compensation, gift
or other item of material value, the community manager provides full disclosure
to the client and the client consents, in writing, to the acceptance of the
compensation, gift or other item of material value by the community manager.
(Added to NRS by 2009, 2816)
REMEDIES AND PENALTIES
NRS 116A.900 Administrative fine for engaging in certain conduct without
certificate, registration or authorization; procedure for imposition of fine;
judicial review; exceptions.
1. In addition to any other remedy or
penalty, the Commission may impose an administrative fine against any person
who knowingly:
(a) Engages or offers to engage in any activity
for which a registration or certificate is required pursuant to this chapter or
chapter 116 or 116B
of NRS, or any regulation adopted pursuant thereto, if the person has not
registered or does not hold the required certificate or has not been given the
required authorization; or
(b) Assists or offers to assist another person to
commit a violation described in paragraph (a).
2. If the Commission imposes an
administrative fine against a person pursuant to this section, the amount of
the administrative fine may not exceed the amount of any gain or economic
benefit that the person derived from the violation or $10,000, whichever amount
is greater.
3. In determining the appropriate amount
of the administrative fine, the Commission shall consider:
(a) The severity of the violation and the degree
of any harm that the violation caused to other persons;
(b) The nature and amount of any gain or economic
benefit that the person derived from the violation;
(c) The person’s history or record of other
violations; and
(d) Any other facts or circumstances that the
Commission deems to be relevant.
4. Before the Commission may impose the
administrative fine, the Commission must provide the person with notice and an
opportunity to be heard.
5. The person is entitled to judicial
review of the decision of the Commission in the manner provided by chapter 233B of NRS.
6. The provisions of this section do not
apply to a person who engages or offers to engage in activities within the
purview of this chapter or chapter 116 or 116B of NRS if:
(a) A specific statute exempts the person from
complying with the provisions of this chapter or chapter
116 or 116B of NRS with regard to those
activities; and
(b) The person is acting in accordance with the
exemption while engaging or offering to engage in those activities.
(Added to NRS by 2005, 2580; A 2007, 2276; 2009, 1103,
2935)
NRS 116A.910 Injunctions.
1. If the Commission or the Division has
reasonable cause to believe, based on evidence satisfactory to it, that any
person has violated or is about to violate any provision of this chapter, any
regulation adopted pursuant thereto or any order, decision, demand or
requirement of the Commission or the Division or a hearing panel, 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 within or outside this State, to
restrain or enjoin that person from engaging in or 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. If the action is brought in a court of this State, an
order or judgment may be entered, when proper, issuing a temporary restraining
order, preliminary injunction or final injunction. A temporary restraining
order or preliminary injunction must not be issued without at least 5 days’
notice to the opposite party.
3. The court may issue the temporary
restraining order, preliminary injunction or final injunction without:
(a) Proof of actual damages sustained by any
person.
(b) The filing of any bond.
(Added to NRS by 2005, 2581)
