This bill proposes the creation of a new chapter in Title 47 of the North Dakota Century Code, which establishes regulations for association community bylaws and the governance of their boards of directors. It defines key terms such as "Association," "Board," "Financial disclosure," and "Member," and outlines the requirements for bylaws that govern the operation of associations. These requirements include the adoption of a formal reserve fund, the necessity for financial disclosures, and the establishment of a written inquiry process for members. Additionally, the bill mandates that associations consult legal counsel every seven years to ensure compliance with the new regulations.

The bill also details the duties of the board of directors, 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 classified expenses, as well as to manage a formal reserve fund for capital expenditures and deferred maintenance. Furthermore, the board is tasked with maintaining adequate insurance for all real property elements held by the association and must obtain signatures from at least two board members for expenditures exceeding ten thousand dollars. Overall, the bill aims to enhance transparency, accountability, and financial management within association communities in North Dakota.