This bill proposes the creation of a new chapter in Title 47 of the North Dakota Century Code, which establishes regulations for association communities, including their bylaws and board of directors. Key definitions are introduced, such as "Association," which refers to a nonprofit entity formed by property owners, and "Board," which denotes the governing body responsible for managing the association. The bill mandates that associations adopt bylaws upon formation, outlining the structure and responsibilities of the board, member meeting protocols, a written inquiry process for members, and requirements for financial disclosures, annual budgets, and reserve funds.

Additionally, the bill specifies the duties of the board, which must consist of at least three members and meet quarterly. It requires the board to adopt an annual budget that includes estimated revenues and detailed expenses, as well as to manage a formal reserve fund for capital expenditures and deferred maintenance. The board is also tasked with ensuring adequate insurance coverage for the association's property and must obtain signatures from at least two members for expenditures exceeding ten thousand dollars. Overall, the legislation aims to enhance transparency, accountability, and financial management within association communities in North Dakota.