Nevada AB 313: Revises various provisions governing common-interest communities and condominium hotels. (BDR 10-228)

Bill Text

(Reprinted with amendments adopted on April 19, 2021)
FIRST REPRINT A.B. 313
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ASSEMBLY BILL NO. 313–ASSEMBLYWOMAN HANSEN

MARCH 17, 2021
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Referred to Committee on Government Affairs

SUMMARY—Revises various provisions governing common-
interest communities and condominium hotels.
(BDR 10-228)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

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

AN ACT relating to property rights; authorizing the use of
electronic ballots for the election and removal of members
of the executive board of a unit-owners’ association of a
common-interest community and for the election of
delegates or representatives to exercise the voting rights
of units’ owners in an association; authorizing a member
of the executive board who is subject to removal to
submit a written request for a meeting of the executive
board to discuss the member’s removal; specifying that an
association is authorized to conduct a vote for the election
or removal of a member of the executive board without a
meeting; authorizing an association that conducts a vote
without a meeting to allow the units’ owners to vote by
using a voting machine; establishing requirements relating
to the use of electronic voting for the election or removal
of a member of the executive board without a meeting;
authorizing money in the operating account of an
association to be withdrawn without the usual required
signatures for the purpose of making certain automatic
and annual payments; requiring the Commission for
Common-Interest Communities and Condominium Hotels
to adopt regulations establishing the requirements relating
to the transfer of certain items upon the termination or
assignment of a management agreement; and providing
other matters properly relating thereto.

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Legislative Counsel’s Digest:
Existing law: (1) establishes the procedures for the election and removal of 1
members of the executive board of a unit-owners’ association of a common-interest 2
community and the election of delegates or representatives to exercise the voting 3
rights of units’ owners in certain common-interest communities; and (2) requires 4
that the election and removal of such members, as applicable, be conducted by 5
secret written ballot. (NRS 116.31034, 116.31036, 116.31105) Sections 1 and 2 of 6
this bill, respectively, authorize the use of secret electronic ballots for the election 7
or removal of any member of the executive board and require that the results of 8
such ballots be reviewed, announced and entered into the record at a meeting of the 9
association. Section 4 of this bill makes conforming changes to provide the same 10
authority and impose the same requirement with regard to the election of delegates 11
or representatives to exercise the voting rights of units’ owners. Section 2 12
additionally provides that, with regard to the removal of a member of the executive 13
board that will be voted on by secret ballot, the member who is the subject of the 14
removal may submit a written request for a meeting of the executive board, which 15
must occur before the meeting scheduled for a vote on the member’s removal, at 16
which the removal will be discussed as an agenda item. Section 2 requires notice of 17
such a requested meeting to be given to the units’ owners not later than 5 days after 18
receipt of the written request. 19
Existing law authorizes an association to conduct a vote without a meeting 20
unless conducting a vote in such a manner is prohibited by the declaration or 21
bylaws of the association. (NRS 116.311) Section 3 of this bill removes such an 22
exception and specifies that an association is authorized to conduct a vote for the 23
election or removal of a member of the executive board without a meeting. 24
Section 3 authorizes an association that conducts a vote without a meeting to 25
allow the units’ owners to vote by using a voting machine that meets certain 26
requirements. Section 3 also provides that if an association conducts a vote for the 27
election or removal of a member of the executive board without a meeting and the 28
association allows the use of electronic voting: (1) a unit’s owner may opt out of 29
receiving an electronic ballot; (2) the association is required to deliver a paper 30
ballot to a unit’s owner in certain circumstances; (3) if the association allows units’ 31
owners to vote by using a voting machine, the association is required to provide to 32
a unit’s owner the opportunity to opt out of voting by using a voting machine and 33
instead receive a paper ballot; (4) a meeting of the units’ owners must be held to 34
open and count the paper ballots and review and announce the results obtained from 35
the electronic ballots or voting machine and enter the results into the meeting 36
record; and (5) any electronic voting must be conducted by an independent