Revises provisions relating to common-interest communities. (BDR 10-639)

S.B. 339

- *SB339*

SENATE BILL NO. 339–SENATOR BUCK

MARCH 12, 2025
____________

Referred to Committee on Judiciary

SUMMARY—Revises provisions relating to common -interest
communities. (BDR 10-639)

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

~

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

AN ACT relating to common -interest communities; requiring the
Real Estate Division of the Department of Business and
Industry to audit the financial accounts of unit -owners’
associations of common -interest communities under
certain circumstances; requiring background
investigations for candidates nominated for membe rship
on executive boards of associations; revising provisions
relating to reserve accounts; providing that certain actions
related to common-interest communities are not subject to
mandatory alternative dispute resolution processes and
must be adjudicated as small claims; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law requires the executive board of the unit -owners’ association of a 1
common-interest community to cause the annual review or audit of the fina ncial 2
statements of the association. (NRS 116.31144) Section 2 of this bill requires the 3
Real Estate Division of the Department of Business and Industry to investigate and 4
audit all financial accounts related to an association if the Division has reasonable 5
cause to believe that the accounts or records of the association have not been 6
maintained and that the investigation and audit is reasonably necessary to 7
administer or enforce certain laws under the jurisdiction of the Division. 8
Existing law establishes procedures related to the election or appointment of a 9
member of the executive board. (NRS 116.31034) Section 3 of this bill requires 10
candidates for membership on the executive board to undergo a background 11
investigation conducted by the Division. Section 6 of this bill requires the 12
candidate to submit a copy of the background investigation to the association for 13
distribution to the units’ owners during the election process or in a subsequent 14
mailing under certain circumstances. 15

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Section 4 of this bill requires the Division to establish a training program for 16
members of executive boards and requires member s to take the training within 6 17
months after their election or appointment. 18
Existing law requires the association to establish adequate reserves for the 19
repair, replacement and restoration of the major components of the common 20
elements and any other porti on of the common -interest community that the 21
association is obligated to maintain, repair, replace or restore. (NRS 116.3115) 22
Existing law requires the executive board to: (1) cause a study of the reserves to be 23
conducted every 5 years; (2) annually review the results of the study; and (3) make 24
adjustments to the funding plan of the association. (NRS 116.31152) Section 7 of 25
this bill requires the study to b e conducted every year and establishes the standards 26
for determining the sufficiency of funds in the reserves of the association. 27
Existing law provides that before commencing a civil action relating to the 28
interpretation, application or enforcement of any covenants, conditions or 29
restrictions applicable to residential property or any bylaws, rules or regulations 30
adopted by an association or the procedures used for increasing, decreasing or 31
imposing additional assessments upon residential property, a disput e must first be 32
submitted to mediation or, if the parties agree, referred to a program established by 33
the Division for resolution of the dispute. (NRS 38.310) Section 9 of this bill 34
exempts actions brought for damages from a failure or refusal to comply with 35
certain provisions of law related to common -interest communities or the 36
declarations or bylaws of an association from such mandatory mediation or such a 37
program for resolution. Instead, sections 8 and 10 of this bill require such actions 38
to be commenced in justice court and adjudicated as small claims. 39
Section 5 of this bill makes a conforming change related to the applicability of 40
certain provisions to sections 2-4. 41

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 116 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2, 3 and 4 of this act. 2
Sec. 2. The Division shall investigate and a udit all financial 3
accounts related to an association if the Division has reasonable 4
cause to believe that the accounts or records of the association 5
have not been properly maintained and the Division determines 6
that the investigation and audit are reasona bly necessary to assist 7
the Division in administering or enforcing the provisions of this 8
chapter and any other statute that the Division is charged with 9
administering or enforcing. 10
Sec. 3. 1. The Division shall prepare a report on the 11
background of a candidate nominated for membership to an 12
executive board pursuant to NRS 116.31034. 13
2. A candidate shall submit an application to the Division for 14
the preparation of the report not later than 3 days after the 15
nomination of the candidate. 16
3. The application must be made on a form prescribed by the 17
Division. 18

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4. The Division shall provide to the candidate a certified copy 1
of the report on the background of a candidate. 2
Sec. 4. 1. The Division shall by regulation establish a 3
training and orientation program for members of executive 4
boards, which must include, without limitation, information 5
concerning the powers and duties of the members. 6
2. Each member of an executive board shall, no t later than 6 7
months after election or appointment, complete the training and 8
orientation program described in subsection 1. 9
Sec. 5. NRS 116.1203 is hereby amended to read as follows: 10
116.1203 1. Except as otherwise pro vided in subsections 2 11
and 3, if a planned community contains no more than 12 units and is 12
not subject to any developmental rights, it is subject only to NRS 13
116.1106 and 116.1107 unless the declaration provides that this 14
entire chapter is applicable. 15
2. The provisions of NRS 116.12065 and the definitions set 16
forth in NRS 116.005 to 116.095, inclusive, to the extent that the 17
definitions are necessary to construe any of those provisions, apply 18
to a residential planned community containing more than 6 units. 19
3. Except for NRS 116.3104, 116.31043, 116.31046 and 20
116.31138, the provisions of NRS 116.3101 to 116.350, inclusive, 21
and sections 2, 3 and 4 of this act, and the definitions set forth in 22
NRS 116.005 to 116.095, inclusive, to the extent that such 23
definitions are necessary in construing any of those provisions, 24
apply to a residential planned community containing more than 6 25
units. 26
Sec. 6. NRS 116.31034 is hereby amended to read as follows: 27
116.31034 1. Except as otherwise provided in subsection 5 of 28
NRS 116.212, not later than the termination of any period of 29
declarant’s control, the units’ owners shall elect an executive board 30
of at least three members, all of whom must be units’ owners. The 31
executive b oard shall elect the officers of the association. Unless 32
the governing documents provide otherwise, the officers of the 33
association are not required to be units’ owners. The members of the 34
executive board and the officers of the association shall take off ice 35
upon election. 36
2. The term of office of a member of the executive board may 37
not exceed 3 years, except for members who are appointed by the 38
declarant. Unless the governing documents provide otherwise, there 39
is no limitation on the number of terms tha t a person may serve as a 40
member of the executive board. 41
3. The governing documents of the association must provide 42
for terms of office that are staggered in such a manner that, to the 43
extent possible, an equal number of members of the executive board 44

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are elected at each election. The provisions of this subsection do not 1
apply to: 2
(a) Members of the executive board who are appointed by the 3
declarant; and 4
(b) Members of the executive board who serve a term of 1 year 5
or less. 6
4. Not less than 30 days be fore the preparation of a ballot for 7
the election of members of the executive board, the secretary or 8
other officer specified in the bylaws of the association shall cause 9
notice to be given to each unit’s owner of the unit’s owner’s 10
eligibility to serve as a member of the executive board. Each unit’s 11
owner who is qualified to serve as a member of the executive board 12
may have his or her name placed on the ballot along with the names 13
of the nominees selected by the members of the executive board or a 14
nominating committee established by the association. 15
5. Before the secretary or other officer specified in the bylaws 16
of the association causes notice to be given to each unit’s owner of 17
his or her eligibility to serve as a member of the executive board 18
pursuant to subsection 4, the executive board may determine that if, 19
at the closing of the prescribed period for nominations for 20
membership on the executive board, the number of candidates 21
nominated for membership on the executive board is equal to or less 22
than the number of members to be elected to the executive board at 23
the election, then: 24
(a) The association will not prepare or provide any ballots to 25
units’ owners pursuant to this section; and 26
(b) The nominated candidates shall be deemed to be duly elected 27
to the executive board at the meeting of the units’ owners at which 28
the ballots would have been counted pursuant to paragraph (e) of 29
subsection 15. 30
6. If the executive board makes the determination set forth in 31
subsection 5, the secretary or other officer specified in the bylaws of 32
the association shall disclose the determination and the provisions of 33
subsection 5 with the notice given pursuant to subsection 4. 34
7. If, at the closing of the prescribed period for nominations for 35
membership on the executive b oard, the number of candidates 36
nominated for membership on the executive board is less than 37
the number of members to be elected to the executive board at the 38
election, the executive board may fill the remaining vacancies on the 39
executive board by appointment of the executive board at a meeting 40
of the executive board held after the candidates are elected pursuant 41
to subsection 5. Any such person appointed to the executive board 42
shall serve as a member of the executive board until the next 43
regularly scheduled election of members of the executive board. An 44
executive board member elected to a previously appointed position 45

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which was temporarily filled by board appointment pursuant to this 1
subsection may only be elected to fulfill the remainder of that term. 2
8. If, at the closing of the prescribed period for nominations for 3
membership on the executive board described in subsection 5, the 4
number of candidates nominated for membership on the executive 5
board is greater than the number of members to be elected to th e 6
executive board, then the association shall: 7
(a) Prepare and provide ballots to the units’ owners pursuant to 8
this section; and 9
(b) Conduct an election for membership on the executive board 10
pursuant to this section. 11
9. Each person who is nominated as a candidate for 12
membership on the executive board pursuant to subsection 4 must: 13
(a) Make a good faith effort to disclose any financial, business, 14
professional or personal relationship or interest that would result or 15
would appear to a reasonable person to result in a potential conflict 16
of interest for the candidate if the candidate were to be elected to 17
serve as a member of the executive board; [and] 18
(b) Disclose whether the candidate is a member in good 19
standing. For the purposes of this paragraph, a candidate shall not be 20
deemed to be in “good standing” if the candidate has any unpaid and 21
past due assessments or construction penalties that are required to be 22
paid to the association [.] ; and 23
(c) Provide to the association a certified copy of the repo rt 24
prepared by the Division pursuant to section 3 of this act. 25
 The candidate must make all disclosures required pursuant to this 26
subsection in writing to the association with his or her candidacy 27
information. Except as otherwise provided in this subsection, the 28
association shall distribute the disclosures [,] and a c opy of the 29
report on behalf of the candidate, to each member of the association 30
with the ballot or, in the event ballots are not prepared and provided 31
pursuant to subsection 5, in the next regular mailing of the 32
association. The association is not obligate d to distribute any 33
disclosure pursuant to this subsection if the disclosure contains 34
information that is believed to be defamatory, libelous or profane. 35
10. Except as otherwise provided in subsections 11 and 12, 36
unless a person is appointed by the declarant: 37
(a) A person may not be a candidate for or member of the 38
executive board or an officer of the association if: 39
(1) The person resides in a unit with, is married to, is 40
domestic partners with, or is related by blood, adoption or marriage 41
within the third degree of consanguinity or affinity to another person 42
who is also a member of the executive board or is an officer of the 43
association; 44

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(2) The person stands to gain any personal profit or 1
compensation of any kind from a matter before the execu tive board 2
of the association; or 3
(3) The person, the person’s spouse or the person’s parent or 4
child, by blood, marriage or adoption, performs the duties of a 5
community manager for that association. 6
(b) A person may not be a candidate for or member of the 7
executive board of a master association or an officer of that master 8
association if the person, the person’s spouse or the person’s parent 9
or child, by blood, marriage or adoption, performs the duties of a 10
community manager for: 11
(1) That master association; or 12
(2) Any association that is subject to the governing 13
documents of that master association. 14
11. A person, other than a person appointed by the declarant, 15
who owns 75 percent or more of the units in an association may: 16
(a) Be a candidate for or member of the executive board or an 17
officer of the association; and 18
(b) Reside in a unit with, be married to, be domestic partners 19
with, or be related by blood, adoption or marriage within the third 20
degree of consanguinity or affinity to another perso n who is also a 21
member of the executive board or is an officer of the association, 22
 unless the person owning 75 percent or more of the units in the 23
association and the other person would constitute a majority of the 24
total number of seats on the executive board. 25
12. A person, other than a person appointed by the declarant, 26
may: 27
(a) Be a candidate for or member of the executive board; and 28
(b) Reside in a unit with, be married to, be domestic partners 29
with, or be related by blood, adoption or marriage wi thin the third 30
degree of consanguinity or affinity to another person who is also a 31
member of the executive board or is an officer of the association, 32
 if the number of candidates nominated for membership on the 33
executive board is less than or equal to the number of members to be 34
elected to the executive board. 35
13. If a person is not eligible to be a candidate for or member 36
of the executive board or an officer of the association pursuant to 37
any provision of this chapter, the association: 38
(a) Must not place his or her name on the ballot; and 39
(b) Must prohibit such a person from serving as a member of the 40
executive board or an officer of the association. 41
14. An officer, employee, agent or director of a corporate 42
owner of a unit, a trustee or designated beneficiary of a trust that 43
owns a unit, a partner of a partnership that owns a unit, a member or 44
manager of a limited -liability company that owns a unit, and a 45

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fiduciary of an estate that owns a unit may be an officer of the 1
association or a member of the executive board. In all events where 2
the person serving or offering to serve as an officer of the 3
association or a member of the executive board is not the record 4
owner, the person shall file proof in the records of the association 5
that: 6
(a) The person i s associated with the corporate owner, trust, 7
partnership, limited -liability company or estate as required by this 8
subsection; and 9
(b) Identifies the unit or units owned by the corporate owner, 10
trust, partnership, limited-liability company or estate. 11
15. Except as otherwise provided in subsection 5 or NRS 12
116.311 or 116.31105, the election of any member of the executive 13
board must be conducted by secret ballot in the following manner: 14
(a) The secretary or other officer specified in the bylaws of the 15
association shall cause a secret paper or electronic ballot to be 16
provided to each unit’s owner and: 17
(1) If a paper ballot is provided, shall send the ballot and a 18
return envelope, prepaid by United States mail, to the mailing 19
address of each unit within th e common -interest community or to 20
any other mailing address designated in writing by the unit’s owner; 21
or 22
(2) If an electronic ballot is provided, shall provide the ballot 23
or make the ballot available by electronic means to each unit’s 24
owner. 25
(b) Each unit’s owner must be provided with at least 15 days 26
after the date the secret ballot is mailed, provided or made available 27
to the unit’s owner to return the secret ballot to the association by 28
physical or electronic means. 29
(c) A quorum is not required for the election of any member of 30
the executive board. 31
(d) Only the secret ballots that the association receives by 32
physical or electronic means may be counted to determine the 33
outcome of the election. 34
(e) At the meeting of the units’ owners held pursuant to 35
subsection 1 of NRS 116.3108, the secret ballots physically received 36
by the association must be opened and counted and the results of the 37
secret ballots received by the association by electronic means must 38
be reviewed, announced and entered into the rec ord. A quorum is 39
not required to be present when the secret ballots physically 40
received by the association are opened and counted or the results of 41
the secret ballots received by the association by electronic means are 42
reviewed, announced and entered into the record at the meeting. 43
(f) The incumbent members of the executive board and each 44
person whose name is placed on the ballot as a candidate for 45

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membership on the executive board may not possess, be given 1
access to or participate in the opening or counti ng of the secret 2
ballots that the association physically receives, or the collection of 3
data regarding the secret ballots that the association receives by 4
electronic means, before those secret ballots have been opened and 5
counted or reviewed, announced and entered into the record, as 6
applicable, at a meeting of the association. 7
16. An association shall not adopt any rule or regulation that 8
has the effect of prohibiting or unreasonably interfering with a 9
candidate in the candidate’s campaign for election a s a member of 10
the executive board, except that the candidate’s campaign may be 11
limited to 90 days before the date that ballots are required to be 12
returned to the association. 13
17. A candidate who has submitted a nomination form for 14
election as a member o f the executive board may request that the 15
association or its agent either: 16
(a) Send before the date of the election and at the association’s 17
expense, to the mailing address of each unit within the common -18
interest community or to any other mailing address designated in 19
writing by the unit’s owner a candidate informational statement. The 20
candidate informational statement: 21
(1) Must be no longer than a single, typed page; 22
(2) Must not contain any defamatory, libelous or profane 23
information; and 24
(3) May be sent with a secret ballot mailed pursuant to 25
subsection 15 or in a separate mailing; or 26
(b) To allow the candidate to communicate campaign material 27
directly to the units’ owners, provide to the candidate, in paper 28
format at a cost not to exceed 25 cents per page for the first 10 pages 29
and 10 cents per page thereafter, in the format of a compact disc at a 30
cost of not more than $5 or by electronic mail at no cost: 31
(1) A list of the mailing address of each unit, which must not 32
include the names of the un its’ owners or the name of any tenant of 33
a unit’s owner; or 34
(2) If the members of the association are owners of time 35
shares within a time share plan created pursuant to chapter 119A of 36
NRS and: 37
(I) The voting rights of those owners are exercised by 38
delegates or representatives pursuant to NRS 116.31105, the mailing 39
address of the delegates or representatives. 40
(II) The voting rights of those owners are not exercised by 41
delegates or representatives, the mailing address of the association 42
established pursuant to NRS 119A.520. If the mailing address of the 43
association is provided to the candidate pursuant to this sub -44
subparagraph, the association must send to each owner of a time 45

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share within the time share plan the campaign material provided by 1
the cand idate. If the campaign material will be sent by mail, the 2
candidate who provides the campaign material must provide to the 3
association a separate copy of the campaign material for each owner 4
and must pay the actual costs of mailing before the campaign 5
material is mailed. If the campaign material will be sent by 6
electronic transmission, the candidate must provide to the 7
association one copy of the campaign material in an electronic 8
format. 9
 The information provided pursuant to this paragraph must not 10
include the name of any unit’s owner or any tenant of a unit’s 11
owner. If a candidate who makes a request for the information 12
described in this paragraph fails or refuses to provide a written 13
statement signed by the candidate which states that the candidate is 14
making the request to allow the candidate to communicate campaign 15
material directly to units’ owners and that the candidate will not use 16
the information for any other purpose, the association or its agent 17
may refuse the request. 18
18. An association and its directors, officers, employees and 19
agents are immune from criminal or civil liability for any act or 20
omission which arises out of the publication or disclosure of any 21
information related to any person and which occurs in the course of 22
carrying out any duties required pursuant to subsection 17. 23
19. Each member of the executive board shall, within 90 days 24
after his or her appointment or election, certify in writing to the 25
association, on a form prescribed by the Administrator, that the 26
member [has read] : 27
(a) Has r ead and understands the governing documents of the 28
association and the provisions of this chapter to the best of his or her 29
ability [.] ; and 30
(b) Acknowledges that the member must complete the training 31
and orientation program as required by section 4 of this act. 32
20. The Administrator may require the association to submit a 33
copy of the certification of each member of the executive board of 34
that association at the time the association registers with the 35
Ombudsman pursuant to NRS 116.31158. 36
Sec. 7. NRS 116.31152 is hereby amended to read as follows: 37
116.31152 1. The executive board shall [:] , at least 38
annually: 39
(a) [At least once every 5 years, cause ] Cause to be conducted a 40
study of the reserves required to repair, replace and restore the 41
major components of the common elements and any other portion of 42
the common-interest community that the association is oblig ated to 43
maintain, repair, replace or restore; 44

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(b) [At least annually, review] Review the results of that study to 1
determine whether those reserves are sufficient [;] to fund the cost 2
projected for the fiscal year to repair, replace or restore the major 3
components of the common elements and any other portion of the 4
common-interest community that the association is obligated to 5
maintain, repair, replace or restore; and 6
(c) [At least annually, make ] Make any adjustments to the 7
association’s funding plan which the executive board deems 8
necessary to provide adequate funding for the required reserves. 9
2. Except as otherwise provided in this subsection, the study of 10
the reserves required by subsection 1 must be conducted by a person 11
who holds a permit issue d pursuant to chapter 116A of NRS. If the 12
common-interest community contains 20 or fewer units and is 13
located in a county whose population is less than 55,000, the study 14
of the reserves required by subsection 1 may be conducted by any 15
person whom the execu tive board deems qualified to conduct the 16
study. 17
3. The study of the reserves must include, without limitation: 18
(a) A summary of an inspection of the major components of the 19
common elements and any other portion of the common -interest 20
community that the association is obligated to maintain, repair, 21
replace or restore; 22
(b) An identification of the major components of the common 23
elements and any other portion of the common -interest community 24
that the association is obligated to maintain, repair, replace or 25
restore which have a remaining useful life of less than 30 years; 26
(c) An estimate of the remaining useful life of each major 27
component of the common elements and any other portion of the 28
common-interest community that the association is obligated to 29
maintain, repair, replace or restore identified pursuant to 30
paragraph (b); 31
(d) An estimate of the cost of maintenance, repair, replacement 32
or restoration of each major component of the common elements 33
and any other portion of the common -interest community identified 34
pursuant to paragraph (b) during and at the end of its useful life; and 35
(e) An estimate of the total annual assessment that may be 36
necessary to cover the cost of maintaining, repairing, replacement or 37
restoration of the major components of the common elements and 38
any other portion of the common -interest community identified 39
pursuant to paragraph (b), after subtracting the reserves of the 40
association as of the date of the study, and an estimate of the 41
funding plan that may be necessary to provide adequate funding for 42
the required reserves. 43
4. A summary of the study of the reserves required by 44
subsection 1 must be submitted to the Division not later than 45

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45 days after the date that the executive board adopts the results of 1
the study. 2
5. If a common-interest community was developed as part of a 3
planned unit development pursuant to chapter 278A of NRS and is 4
subject to an agreement with a city or county to receive credit 5
against the amount of the residential construction tax that is imposed 6
pursuant to NRS 278.4983 and 278.4985, the association that is 7
organized for the common -interest community may use the money 8
from that credit for the repair, replacement or restoration of park 9
facilities and related improvements if: 10
(a) The park facilities and related improvements are identified as 11
major components of the common elements of the association; and 12
(b) The association is obligated to repair, replace or restore the 13
park facilities and related improvements in accordance with the 14
study of the reserves required by subsection 1. 15
Sec. 8. NRS 116.4117 is hereby amended to read as follows: 16
116.4117 1. Subject to the requirements set forth in 17
subsection 2, if a declarant, community manager or any other person 18
subject to this chapter fails to comply with any of its provisions or 19
any provision of the declaration or bylaws, any person or class of 20
persons suffering actual damages from the failure to comply may 21
bring a civil action for damages or other appropriate relief. 22
2. [Subject to the requirements set forth in NRS 38.310 and 23
except] Except as otherwise provided in NRS 116.3111, a civil 24
action for damages or other appropriate relief for a failure or refusal 25
to comply with any provision of this chapter or the governing 26
documents of an association may be brought: 27
(a) By the association against: 28
(1) A declarant; 29
(2) A community manager; or 30
(3) A unit’s owner. 31
(b) By a unit’s owner against: 32
(1) The association; 33
(2) A declarant; or 34
(3) Another unit’s owner of the association. 35
(c) By a class of units’ owners constituting at least 10 percent of 36
the total number of voting members of the association against a 37
community manager. 38
3. A civil action brought for damages pursuant to subsection 39
1 must be commenced in the justice court and adjudicated in 40
accordance with the provisions of chapter 73 of NRS relating to 41
small claims. 42
4. Members of the executive board are not personally liable to 43
the victims of crimes occurring on the property. 44

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[4.] 5. Except as otherwise p rovided in subsection [5,] 6, 1
punitive damages may be awarded for a willful and material failure 2
to comply with any provision of this chapter if the failure is 3
established by clear and convincing evidence. 4
[5.] 6. Punitive damages may not be awarded against: 5
(a) The association; 6
(b) The members of the executive board for acts or omissions 7
that occur in their official capacity as members of the executive 8
board; or 9
(c) The officers of the association for acts or omissions that 10
occur in their capacity as officers of the association. 11
[6.] 7. The court may award reasonable attorney’s fees to the 12
prevailing party. 13
[7.] 8. The civil remedy provided by this section is in addition 14
to, and not exclusive of, any other available remedy or penalty. 15
[8.] 9. The provisions of this section do not prohibit the 16
Commission from taking any disciplinary action against a member 17
of an executive board pursuant to NRS 116.745 to 116.795, 18
inclusive. 19
Sec. 9. NRS 38.310 is hereby amended to read as follows: 20
38.310 1. [No] Except as otherwise provided in subsection 21
2, no civil action based upon a claim relating to: 22
(a) The interpretation, application or enforcement of any 23
covenants, conditions or restrictions applicable to residential 24
property or any bylaws, rules or regulations adopted by an 25
association; or 26
(b) The procedures used for increasing, decreasing or imposing 27
additional assessments upon residential property, 28
 may be commenced in any court in this State unless the action 29
has been submitted to mediation or, if the parties agree, has been 30
referred to a program pursuant to the provisions of NRS 38.300 to 31
38.360, inclusive, and, if the civil action concerns real es tate within 32
a planned community subject to the provisions of chapter 116 of 33
NRS or real estate within a condominium hotel subject to the 34
provisions of chapter 116B of NRS, all administrative procedures 35
specified in any covenants, conditions or restrictions applicable to 36
the property or in any bylaws, rules and regulations of an 37
association have been exhausted. 38
2. The provisions of subsection 1 do not apply to a civil action 39
for damages brought pursuant to subsection 1 of NRS 116.4117. 40
3. A court shall d ismiss any civil action which is commenced 41
in violation of the provisions of subsection 1. 42
Sec. 10. NRS 73.010 is hereby amended to read as follows: 43
73.010 1. [A] Except as otherwise provided in subsection 2, 44
a justice of the peace has jurisdiction and may proceed as provided 45

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in this chapter and by rules of court in all cases arising in the justice 1
court for the recovery of money only, where the amount claimed 2
does not exceed $10,000. 3
2. In cases brought pursuant to NR S 116.4117, regardless of 4
the sum sought to be recovered, the justice of the peace may 5
proceed as provided in this chapter and by rules of the court, 6
except that the provisions of this chapter related to the awarding 7
of costs and attorney’s fees do not apply. 8
3. An action brought pursuant to this chapter must be filed in 9
one of the following townships as the proper venue for the action: 10
(a) The township in which the defendant named is a resident, 11
does business or is employed at the time the cause of action arose or 12
at the time the complaint is filed; or 13
(b) In addition to any township described in paragraph (a): 14
(1) In a case involving injury to the person or property, the 15
township where the injury was committed. 16
(2) In a case involving a person who has contracted to 17
perform an obligation at, or relating to, a particular place, the 18
township in which the obligation is or was to be performed. For the 19
purposes of this subparagraph, the township in which the obligation 20
is incurred shall be deemed to b e the township in which the 21
obligation is or was to be performed, unless there is a special 22
contract to the contrary. 23
Sec. 11. 1. This section becomes effective on passage and 24
approval. 25
2. Sections 1 to 10, inclusive, of this act become effective: 26
(a) Upon passage and approval for the purpose of adopting any 27
regulations and performing any other preparatory administrative 28
tasks that are necessary to carry out the provisions of this act; and 29
(b) On October 1, 2025, for all other purposes. 30

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