Nrs: Chapter 116A - Common-Interest Communities: Regulation Of Community Managers And Other Personnel

Link to law: https://www.leg.state.nv.us/NRS/NRS-116A.html
Published: 2015

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[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)