Existing law: (1) establishes the procedures for the election and removal of members of the executive board of a unit-owners' association of a common-interest community and the election of delegates or representatives to exercise the voting rights of units' owners in certain common-interest communities; and (2) requires that the election and removal of such members, as applicable, be conducted by secret written ballot. (NRS 116.31034, 116.31036, 116.31105) Sections 1 and 2 of this bill, respectively, authorize the use of secret electronic ballots for the election or removal of any member of the executive board and require that the results of such ballots be reviewed, announced and entered into the record at a meeting of the association. Section 4 of this bill makes conforming changes to provide the same authority and impose the same requirement with regard to the election of delegates or representatives to exercise the voting rights of units' owners. Section 2 additionally provides that, with regard to the removal of a member of the executive board that will be voted on by secret ballot, the member who is the subject of the removal may submit a written request for a meeting of the executive board, which must occur before the meeting scheduled for a vote on the member's removal, at which the removal will be discussed as an agenda item. Section 2 requires notice of such a requested meeting to be given to the units' owners not later than 5 days after receipt of the written request. Existing law requires, in general, any notice required to be given to a unit's owner by an association and any communication from or other information provided by the association to be delivered to the mailing or electronic mail address designated by the unit's owner, unless the unit's owner has opted out of receiving electronic communications or has not designated an electronic mail address. (NRS 116.31068) Section 2.5 of this bill eliminates such requirements for notice with respect to communications from and other information provided by the association and instead requires, with certain exceptions, such notices to be delivered to the electronic mail address that a unit's owner designates. Section 2.5 sets forth the manner in which an association is required to deliver such notices to a unit's owner who has opted out of receiving electronic notices or who has not designated an electronic mail address at which to receive notices. Existing law authorizes an association to conduct a vote without a meeting unless conducting a vote in such a manner is prohibited or limited by the declaration or bylaws of the association. (NRS 116.311) Section 3 of this bill removes such an exception and specifies that an association is authorized to conduct a vote for the election or removal of a member of the executive board without a meeting. Section 3 authorizes an association that conducts a vote without a meeting to allow the units' owners to vote by using a voting machine that meets certain requirements. Section 3 also provides that if an association conducts a vote for the election or removal of a member of the executive board without a meeting and the executive board chooses to use electronic voting: (1) the association is required to send, within a certain time period, a paper ballot and a return envelope, prepaid by United States mail, to any unit's owner who has opted out of receiving electronic notices pursuant to section 2.5; (2) the association is required to send, within a certain time period, an electronic ballot to any unit's owner who has designated an electronic mail address at which to receive notices pursuant to section 2.5; (3) if the association allows units' owners to vote by using a voting machine, the association is required to provide to a unit's owner the opportunity to opt out of voting by using a voting machine and instead receive a paper ballot; (4) a meeting of the units' owners must be held to open and count the paper ballots and review and announce the results obtained from the electronic ballots or voting machine and enter the results into the meeting record; and (5) any electronic voting must be conducted by an independent third-party who meets certain requirements. Existing law generally prohibits money in the operating account of an association from being withdrawn without the signatures of certain persons, but also establishes certain purposes for which money in the operating account may be withdrawn without such signatures. (NRS 116.31153) Section 5 of this bill additionally provides that money in the operating account of an association may be withdrawn without the usual required signatures for the purpose of making: (1) automatic payments for the cost of certain insurance policies, telecommunications services maintained by the association and services to the association that are billed on a monthly, quarterly or annual basis; and (2) annual payments to the Office of Ombudsman. Existing law imposes certain requirements on community managers regarding the transfer of the possession of all books, records and other papers of a client upon the termination or assignment of a management agreement. (NRS 116A.620) Section 6 of this bill instead requires the Commission for Common-Interest Communities and Condominium Hotels to adopt regulations establishing the requirements relating to such a transfer. Section 7 of this bill makes a conforming change to remove the provisions of existing law relating to such a transfer when the Commission has adopted the regulations required by section 6. Sections 8, 9, 9.5 and 10 of this bill generally replicate the changes made by sections 1, 2, 2.5 and 3 in the corresponding provisions of law that apply to condominium hotels. Section 11 of this bill replicates the existing provisions of and changes made to section 5 and applies such provisions to condominium hotels.

Statutes affected:
As Introduced: 116.31034, 116.31036, 116.311, 116.31105, 116.31153, 116A.620, 116B.445, 116B.450, 116B.550, 116B.615
Reprint 1: 116.31034, 116.31036, 116.31068, 116.311, 116.31105, 116.31153, 116A.620, 116B.445, 116B.450, 116B.513, 116B.550, 116B.615
As Enrolled: 116.31034, 116.31036, 116.31068, 116.311, 116.31105, 116.31153, 116A.620, 116B.445, 116B.450, 116B.513, 116B.550, 116B.615
BDR: 116.31034, 116.31036, 116.311, 116.31105, 116.31153, 116A.620, 116B.445, 116B.450, 116B.550, 116B.615