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HERE IS AN EXAMPLE OF WHAT THE COLORADO PROPERTY MANAGERS LICENSE LAW COULD BE PATTERNED AFTER.

NAC: CHAPTER 116 – MANAGEMENT OF COMMON-INTEREST COMMUNITIES

[Rev. 2/15/2010 10:42:34 AM]

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R145-06

CHAPTER 116 – MANAGEMENT OF COMMON-INTEREST COMMUNITIES

GENERAL PROVISIONS

116.010 Definitions.

116.013 “Administrator” defined.

116.015 “Audited financial statement” defined.

116.020 “Certificate” defined.

116.025 “Client” defined.

116.030 “Commission” defined.

116.033 “Common elements” defined.

116.035 “Community manager” defined.

116.037 “Component inventory” defined.

116.039 “Distance education” defined.

116.040 “Division” defined.

116.043 “Executive board” defined.

116.0433 “Financial records” defined.

116.0437 “Guide” defined.

116.044 “Hour of instruction” defined.

116.046 “Major components” defined.

116.047 “Management agreement” defined.

116.050 “Management of a common-interest community” defined.

116.055 “Permit” defined.

116.065 “Provisional community manager” defined.

116.070 “Reserve study” defined.

116.072 “Reviewed financial statement” defined.

116.075 “Supervising community manager” defined.

116.080 “Unit’s owner” defined.

116.090 “Limited-purpose association” interpreted.

116.095 Limited-purpose associations: Compliance with certain statutory provisions.

CERTIFICATION OF COMMUNITY MANAGERS

116.100 Application: Requirements; action by Division; burden of proof.

116.110 Prerequisites: Minimum age; natural person.

116.120 Prerequisites: Education and experience.

116.130 Examination.

116.140 Denial of application: Grounds; fee not refundable.

116.150 Denial of application: Notice; appeal.

116.160 Renewal of certificate.

116.165 Reinstatement of inactive certificate; reapplication following failure to renew.

116.169 Invalidation of certificate.

116.175 Provisional community managers: General requirements.

116.180 Provisional community managers: Renewal of certificate.

116.185 Supervising community managers: Qualifications and responsibilities.

EDUCATION OF COMMUNITY MANAGERS

General Provisions

116.195 “School” defined.

Courses for Original Certification

116.201 Approval of school required; exceptions.

116.204 Application for and period of approval.

116.207 Conditions of approval; evidence of certain licensure.

116.211 Requirements for course: Generally.

116.214 Requirements for course: Correspondence course.

116.217 Unacceptable courses.

116.221 Notice to Division of material change; requirements for renewal of approval; denial of renewal.

116.224 Misrepresentation in advertising prohibited.

Continuing Education

116.234 Approval of and requirements for course; record of attendance or completion.

116.237 Distance education course: Requirements and considerations for approval.

116.241 Approved course: Duties of sponsor.

116.244 Notice of policy concerning cancellations and refunds.

116.247 Restrictions on receipt of credit for course; final examination.

116.251 Credit for attendance at meeting of Commission.

Approved Courses and Instructors

116.261 Requirements for instructors and guest lecturers; advertising.

116.264 Instructors: Approval by Division.

116.267 Instructors: Responsibilities.

116.271 Instructors: Withdrawal of approval.

116.274 Courses: Responsibilities of sponsor; renewal of approval; review and audit; grounds for withdrawing or refusing to renew approval; discipline of sponsor.

116.277 Courses: Withdrawal of approval.

116.281 Courses: Reapproval by Division if no changes.

116.284 Evaluation of course and instructor by students.

116.287 Certificate of completion of course: Prerequisite activities of student; appeal of denial.

PRACTICE BY COMMUNITY MANAGERS

116.300 Responsibilities.

116.305 Management agreement; evidence of insurance.

116.310 Required disclosures.

116.321 Office; display of certificate.

116.331 Change of name, address, association or supervising community manager.

116.341 Prohibited acts.

116.351 Allegations of misconduct; submission of complaint; investigation and report; action by Administrator; appeal.

116.360 Grounds for disciplinary action; criteria for unprofessional conduct and professional incompetence.

116.370 Disciplinary action by Commission.

UNIT-OWNERS’ ASSOCIATIONS

116.400 Members of executive board: Responsibilities.

116.405 Members of executive board: Prohibited acts.

116.410 Adoption by reference of reporting principles and practices of financial accounting.

116.415 Contents of budget to maintain reserve.

116.420 Qualifications of person to conduct reserve study.

116.425 Reserve study: Contents.

116.430 Reserve study: Required disclosures.

116.435 Reserve study: Dissemination of summary of results.

116.440 Availability of records of association: “Regular working hours” interpreted.

116.445 Annual fee required from certain associations for deposit in Account for Common-Interest Communities and Condominium Hotels.

116.451 Preparation, contents and distribution of interim financial statements.

116.453 Contents of financial statements subject to audit or review.

116.457 Preparation, contents and availability of audited financial statements; qualifications of auditor.

116.459 Inclusion of additional funds in financial statements.

116.461 Review of financial statements; qualifications of auditor.

116.465 Fee for preparation of certificate for resale of unit.

RECEIPT OF GIFTS, INCENTIVES, GRATUITIES, REWARDS OR OTHER ITEMS OF VALUE

116.480 Restriction on and statements by members of executive boards and officers of associations.

116.482 Restriction on and statements by community managers and employees of community managers.

116.484 Attendance of or participation in approved class.

116.486 Compliance with statutory prohibition.

ADMINISTRATION AND ENFORCEMENT

General Provisions

116.500 Public inspection of records maintained by Division.

116.505 Fees of Division.

116.510 Check or draft returned to Division for lack of payment.

116.515 Fee for background investigation.

116.520 Subsidization of proceedings for binding arbitration.

116.525 Duties of Ombudsman for Owners in Common-Interest Communities and Condominium Hotels: “Annual assessment” interpreted.

Administrative Proceedings

116.550 Investigation and audit of financial accounts of association; remedial and disciplinary action.

116.553 Hearing panels: Powers; qualifications of independent hearing officers.

116.555 Informality of proceedings; rules of evidence.

116.557 Prehearing conferences.

116.560 Motions.

116.565 Amendment and withdrawal of complaints; continuances.

116.570 Complaint or disciplinary hearing concerning provisional community manager.

116.575 Responsibilities of respondent.

116.580 Failure of party to appear.

116.585 Procedure for hearings; date of decision.

116.586 Recess of hearing for conference.

116.588 Preparation and dissemination of final decision after hearing.

116.590 Voluntary surrender of certificate in lieu of disciplinary action.

116.595 Reporting of disciplinary action or denial of certificate.

116.600 Appeal of final order of hearing panel; filing of briefs.

116.605 Review hearings: Setting; notice.

116.610 Review hearings: Oral argument.

116.615 Review hearings: Issuance of written decision.

116.620 Review of final order of hearing panel not appealed by party.

116.625 Payment of costs for transcript of hearing.

116.630 Request for hearing prohibited after initiation of civil action or submission for mediation or arbitration.

116.635 Request for hearing prohibited for improper purpose.

GENERAL PROVISIONS

NAC 116.010  Definitions. (NRS 116.615)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 116.013 to 116.080, inclusive, have the meanings ascribed to them in those sections.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by R136-99, 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R205-05, 9-18-2006)

NAC 116.013  “Administrator” defined. (NRS 116.615)  “Administrator” means the Real Estate Administrator.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.015  “Audited financial statement” defined. (NRS 116.615)  “Audited financial statement” has the meaning ascribed to it in the Guide.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.020  “Certificate” defined. (NRS 116.615)  “Certificate” means a certificate for the management of a common-interest community issued by the Division.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.025  “Client” defined. (NRS 116.615)  “Client” means an executive board that has entered into a management agreement with a community manager.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.030  “Commission” defined. (NRS 116.615)  “Commission” means the Commission for Common-Interest Communities and Condominium Hotels created by NRS 116.600.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.033  “Common elements” defined. (NRS 116.615)  “Common elements” means the common elements of a common-interest community.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.035  “Community manager” defined. (NRS 116.615)  “Community manager” means a person who holds a certificate and who provides for or otherwise engages in the management of a common-interest community.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R205-05, 9-18-2006)

NAC 116.037  “Component inventory” defined. (NRS 116.615)  “Component inventory” means a list of major components of the common elements identified in a reserve study that may require repair, replacement or restoration.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.039  “Distance education” defined. (NRS 116.615)  “Distance education” means instruction which is delivered by means of video, computer, television, correspondence, the Internet or other electronic means of communication, or any combination thereof, in such a manner that the person supervising or providing the instruction and the student receiving the instruction are separated by distance or by time, or by both distance and time.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.040  “Division” defined. (NRS 116.615)  “Division” means the Real Estate Division of the Department of Business and Industry.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98)

NAC 116.043  “Executive board” defined. (NRS 116.615)  “Executive board” has the meaning ascribed to it in NRS 116.045.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.0433  “Financial records” defined. (NRS 116.615)  “Financial records” means the financial or transaction records necessary to support the financial statements of an association which include, without limitation, receipts, bank statements, income tax reports, reserve studies, budgets, contracts, minutes of executive board meetings, inventories, investments, expenses, disbursements, obligations, depreciation in property or equipment, contingent liabilities and any other records deemed necessary by the Division or by the accountants or auditors of an association.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.0437  “Guide” defined. (NRS 116.615)  “Guide” means the Common Interest Realty Associations – AICPA Audit and Accounting Guide, as adopted by reference in NAC 116.410.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.044  “Hour of instruction” defined. (NRS 116.615)  “Hour of instruction” means 50 minutes or more, and one semester credit is equal to 15 hours of instruction.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.046  “Major components” defined. (NRS 116.615)  “Major components” means the major components of the common elements, whether real or personal property, which the association is responsible for repairing, replacing or restoring, including, without limitation, amenities, improvements, furnishings, fixtures, finishes, systems and equipment.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.047  “Management agreement” defined. (NRS 116.615)  “Management agreement” means an agreement for the management of a common-interest community.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.050  “Management of a common-interest community” defined. (NRS 116.615)  “Management of a common-interest community” means the physical, administrative or financial maintenance and management of a common-interest community, or the supervision of those activities, for a fee, commission or other valuable consideration.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.055  “Permit” defined. (NRS 116.615)  “Permit” means a permit to engage in property management issued pursuant to the provisions of chapters 645 of NRS and NAC.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.065  “Provisional community manager” defined. (NRS 116.615)  “Provisional community manager” means a person who has fulfilled the educational requirements for certification as set forth in NAC 116.120 but has not yet fulfilled the experience requirements for certification as set forth in NAC 116.175. A provisional community manager may perform the tasks of a community manager under the supervision of a supervising community manager.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by R205-05, 9-18-2006)

NAC 116.070  “Reserve study” defined. (NRS 116.615)  “Reserve study” means the study required pursuant to NRS 116.31152.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.072  “Reviewed financial statement” defined. (NRS 116.615)  “Reviewed financial statement” has the meaning ascribed to it in the Guide.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.075  “Supervising community manager” defined. (NRS 116.615)  “Supervising community manager” means a community manager who:

1.  Meets the qualifications set forth in NAC 116.185; and

2.  Is responsible for the supervision of one or more provisional community managers or community managers.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by R205-05, 9-18-2006)

NAC 116.080  “Unit’s owner” defined. (NRS 116.615)  “Unit’s owner” has the meaning ascribed to it in NRS 116.095.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.090  “Limited-purpose association” interpreted. (NRS 116.1201, 116.615)

1.  An association is a limited-purpose association pursuant to subparagraph (1) of paragraph (a) of subsection 6 of NRS 116.1201 if:

(a) The association has been created for the sole purpose of maintaining the common elements consisting of landscaping, public lighting or security walls, or trails, parks and open space;

(b) The declaration states that the association has been created as a landscape maintenance association; and

(c) The declaration expressly prohibits:

(1) The association, and not a unit’s owner, from enforcing a use restriction against a unit’s owner;

(2) The association from adopting any rules or regulations concerning the enforcement of a use restriction against a unit’s owner; and

(3) The imposition of a fine or any other penalty against a unit’s owner for a violation of a use restriction.

2.  An association is a limited-purpose association pursuant to subparagraph (2) of paragraph (a) of subsection 6 of NRS 116.1201 if the association is created for the sole purpose of maintaining:

(a) Areas on an official plat that are designated as unsuitable for building;

(b) Areas required by the governing body to be designated as floodways, natural drainage or spillways; or

(c) Other areas that the governing body requires to be used for the purpose of collecting, facilitating, retaining or channeling storm water drainage of the residential property of the common-interest community.

3.  An association is a limited-purpose association pursuant to subparagraph (3) of paragraph (a) of subsection 6 of NRS 116.1201 if:

(a) The association has been created as a rural agricultural residential common-interest community;

(b) The residential lots in the common-interest community are a minimum of 1 acre and are zoned for agricultural purposes by the county in which the community is located; and

(c) The governing documents of the association authorize the residents to farm or raise livestock on the residential lots.

4.  As used in this section:

(a) “Governing body” has the meaning ascribed to it in NRS 278.015.

(b) “Landscaping” has the meaning ascribed to it in NRS 278.4781.

(c) “Public lighting” has the meaning ascribed to it in NRS 278.4783.

(d) “Security wall” has the meaning ascribed to it in NRS 271.203.

(e) “Trails, parks and open space” means trails, parks and open space that provide a substantial public benefit or are required by the governing body for the primary use of the public. The term does not include a private street or roadway, gated entry, swimming pool, gazebo, clubhouse, pond, tennis court, miniature golf course or frisbee golf course.

(f) “Use restriction” means any provision of the governing documents of an association that restricts a unit’s owner in the use of his unit.

(Added to NAC by Real Estate Div. by R114-99, eff. 5-5-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R205-05, 9-18-2006)

NAC 116.095  Limited-purpose associations: Compliance with certain statutory provisions. (NRS 116.1201, 116.615)  A limited-purpose association must comply with all the provisions of NRS 116.4101 to 116.412, inclusive.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

CERTIFICATION OF COMMUNITY MANAGERS

NAC 116.100  Application: Requirements; action by Division; burden of proof. (NRS 116.615, 116A.200, 116A.410)

1.  A person who wishes to obtain a certificate must submit an application to the Division on a form prescribed by the Division.

2.  Each applicant must, as part of his application and at his own expense:

(a) Arrange to have a complete set of his fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Division; and

(b) Submit to the Division:

(1) A completed fingerprint card and written permission authorizing the Division to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary; or

(2) Written verification, on a form prescribed by the Division, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary.

3.  In addition to the requirements set forth in subsection 2, the applicant must submit to the Division:

(a) A photograph of the applicant, measuring approximately 2 inches by 2 inches, taken within the 2 years immediately preceding the date of the application;

(b) Payment of the fees charged by a local law enforcement agency pursuant to NAC 116.515 or, if the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository pursuant to subsection 2, evidence of such payment;

(c) The social security number of the applicant;

(d) A statement concerning whether the applicant has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or possessing for the purpose of sale any controlled substance or any crime involving moral turpitude;

(e) Documentation that the applicant possesses the education and experience required pursuant to NAC 116.120 and, if applicable, NAC 116.175;

(f) Documentation of the employment history of the applicant for the 10 years immediately preceding the date of the application, including, without limitation, letters of recommendation and affidavits of employment from common-interest communities or employers in other related areas;

(g) The statement described in NRS 116A.440;

(h) The fee required by NAC 116.505 for a certificate; and

(i) Such other pertinent information as the Division may require.

4.  The Division shall act upon all applications for a certificate within 60 days after the date of receiving the completed application for a certificate.

5.  If the Division determines that additional investigation of the applicant is necessary, the Division may extend the 60-day period and may make such additional investigation as is necessary or desirable before acting upon the application.

6.  The burden of proof is on the applicant to establish to the satisfaction of the Division that he is qualified to receive a certificate.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by R136-99, 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.110  Prerequisites: Minimum age; natural person. (NRS 116.615, 116A.200, 116A.410)

1.  An application for a certificate will not be accepted from a person under the age of 17 years.

2.  A certificate may only be issued to:

(a) A person 18 years of age or older.

(b) A natural person.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.120  Prerequisites: Education and experience. (NRS 116.615, 116A.200, 116A.410)

1.  Except as otherwise provided in subsection 2, an applicant must have successfully completed at least 60 hours of instruction in courses in the management of a common-interest community that have been approved by the Commission, including, without limitation:

(a) At least 20 hours of instruction relating to federal, state and local laws applicable to the management of a common-interest community, including, without limitation:

(1) Not less than 2 hours of instruction relating to federal laws applicable to common-interest communities, including, but not limited to, the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., the Fair Housing Amendments Act of 1988, 42 U.S.C. §§ 3602 et seq., and the Fair Debt Collection Practices Act of 1996, 15 U.S.C. §§ 1601 et seq.; and

(2) Not less than 18 hours of instruction relating to the Uniform Common-Interest Ownership Act as set forth in this chapter and chapter 116 of NRS.

(b) At least 40 cumulative hours of instruction in the following subjects:

(1) Understanding the legal basics of common-interest communities and their governing documents;

(2) The management of facilities and the use of experts;

(3) Accounting, including, without limitation, the preparation and monitoring of budgets, expenditures and reserves and the use of financial statements;

(4) Contracts with the common-interest community, including obtaining bids and requests for proposals;

(5) Parliamentary procedures, types and uses as may be required by law or the governing documents or bylaws of a common-interest community;

(6) The management of human resources, including, the ability to communicate and interact effectively with other people;

(7) Inspection and planning for property maintenance;

(8) Risk management;

(9) The types of insurance that must be maintained by a common-interest community pursuant to NRS 116.3113;

(10) Governmental regulations that affect a common-interest community, including, without limitation, zoning and planning;

(11) The Nevada Fair Housing Law as set forth in chapter 118 of NRS;

(12) The Residential Landlord and Tenant Act as set forth in chapter 118A of NRS;

(13) The disclosure of required information in real estate transactions;

(14) Defects in construction;

(15) Alternative dispute resolution for claims relating to residential property within a common-interest community as set forth in NRS 38.300 to 38.360, inclusive;

(16) Corporation law;

(17) Industrial insurance;

(18) Health and safety; and

(19) Business ethics.

(c) Provide evidence that he has been engaged in the management of a common-interest community or has held a management position in a related area for:

(1) The 12 months immediately preceding the date of his application; or

(2) At least 2 of the 4 years immediately preceding the date of his application.

2.  An applicant may provide evidence of any other combination of education and experience that the Division may deem to be equivalent to the requirements set forth in this section.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by R136-99, 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005, eff. 1-1-2006)

NAC 116.130  Examination. (NRS 116.615, 116A.200, 116A.410)

1.  An applicant for a certificate must:

(a) Pass an examination which has been approved by the Division with a minimum score of 75 percent; and

(b) Pay the fee required by NAC 116.505 for an examination.

2.  The Division will only accept results of an examination taken during the 12 months immediately preceding the date of the application for a certificate.

3.  Passing the examination creates no vested right in the applicant to hold a certificate pending his appeal of a denial of his certification by the Division.

4.  An applicant who fails the examination may retake the examination.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R107-04, 8-25-2004; R129-04, 4-14-2005)

NAC 116.140  Denial of application: Grounds; fee not refundable. (NRS 116.615, 116A.200, 116A.410)

1.  The Division shall deny an application for a certificate if:

(a) The application is not in the proper form;

(b) The application is not accompanied by the fees required by NAC 116.505;

(c) The accompanying forms or documentation are incomplete or otherwise unsatisfactory;

(d) The application contains a false or misleading statement;

(e) Other deficiencies appear in the application;

(f) An investigation fails to show affirmatively that the applicant possesses the necessary qualifications;

(g) The applicant has willfully acted or attempted to act in violation of chapter 116, 119, 119A, 645 or 645A of NRS or the regulations adopted pursuant to those chapters or has willfully aided or abetted another person to act or attempt to act in violation of those chapters or regulations;

(h) The check or draft used to pay the fee for the application for a certificate is not honored by the financial institution upon which it is drawn;

(i) The applicant has had a license, certificate or permit revoked in another state;

(j) The applicant has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or possessing for the purpose of sale any controlled substance or any crime involving moral turpitude; or

(k) Any combination thereof.

2.  The Division shall not refund a fee for the application for a certificate.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.150  Denial of application: Notice; appeal. (NRS 116.615, 116A.200, 116A.410)

1.  If the Division, after an application for a certificate in proper form has been filed, accompanied by the proper fees, denies an application, the Division shall give notice of this fact to the applicant within 15 days after the ruling, order or decision.

2.  Within 30 days after receipt of a notice of denial, an applicant may request, in writing, a hearing before the Commission. The Division will set the matter for a hearing to be conducted as soon as practicable after receipt of the request of the applicant if the request contains allegations which, if true, qualify the applicant for a certificate.

3.  The hearing must be held at such time and place as the Commission prescribes. At least 15 days before the date set for the hearing, the Division shall notify the applicant and shall accompany the notification with an exact copy of any protest filed, together with copies of all communications, reports, affidavits or depositions in possession of the Division relevant to the matter in question. Written notice of hearing may be served by delivery personally to the applicant, or by mailing it by certified mail to the last known address of the applicant.

4.  The hearing may be held by the Commission or a majority thereof, and a hearing must be held if the applicant so wishes. A record of the proceedings, or any part thereof, must be made available to each party upon the payment to the Division of the reasonable cost of transcription.

5.  The Commission will render a written decision on any appeal within 60 days after the final hearing and will notify the parties to the proceedings, in writing, of its ruling, order or decision within 15 days after it is made.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.160  Renewal of certificate. (NRS 116.615, 116A.200, 116A.410)

1.  A certificate must be renewed biennially.

2.  Except as otherwise provided by subsection 5, the Division shall renew a certificate if the applicant submits to the Division before the expiration of his certificate:

(a) A completed application on a form prescribed by the Division;

(b) The statement described in NRS 116A.440;

(c) The fee required by NAC 116.505 for renewal; and

(d) Documentation of the successful completion by the applicant of at least 18 hours of continuing education in courses approved by the Commission within the 2 years immediately preceding the date on which the certificate expires. At least 3 hours of the continuing education must consist of instruction relating to this chapter and chapter 116 of NRS.

3.  The renewal of a certificate is effective on the date on which the renewal is issued.

4.  If the holder of a certificate fails to complete the required hours of continuing education or fails to file an application for the renewal of his certificate before it expires, he may not engage in the management of a common-interest community until his certificate is reinstated.

5.  The Division may refuse to renew a certificate if:

(a) The applicant has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or possessing for the purpose of sale any controlled substance or any crime involving moral turpitude;

(b) The applicant fails to complete, sign and submit the statement required pursuant to NRS 116A.440;

(c) The Division receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional certificates and permits issued to the applicant; or

(d) The applicant has engaged in conduct which is grounds for disciplinary action pursuant to NAC 116.360 and has been disciplined by the Division or Commission.

6.  If the Division, after an application to renew a certificate in proper form has been filed, accompanied by the proper fees, refuses to renew the certificate, it shall give notice of this fact to the applicant within 15 days after the ruling, order or decision. The applicant may file a written request for a hearing before the Commission pursuant to the procedures set forth in NAC 116.150.

7.  If the Division refuses to renew a certificate because it receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional certificates and permits issued to the applicant, the Division shall reinstate the certificate if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose certificate was suspended stating that the person has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by R136-99, 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R205-05, 9-18-2006)

REVISER’S NOTE.

The regulation of the Commission on Common-Interest Communities filed with the Secretary of State on April 14, 2005 (LCB File No. R129-04), which amended this section, contains the following provision not included in NAC:

“The provisions of paragraph (d) of subsection 2 of NAC 116.160, as amended by this regulation, do not apply to a person who applies for renewal of a certificate before July 1, 2006.”

NAC 116.165  Reinstatement of inactive certificate; reapplication following failure to renew. (NRS 116.615, 116A.200, 116A.410)

1.  A certificate holder whose certificate is on inactive status for a period of more than 1 year and who wishes to reinstate his certificate must submit an application to the Division on a form prescribed by the Division.

2.  Each applicant must, as part of his application and at his own expense:

(a) Arrange to have a complete set of his fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Division; and

(b) Submit to the Division:

(1) A completed fingerprint card and written permission authorizing the Division to submit the applicant’s fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary; or

(2) Written verification, on a form prescribed by the Division, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Division deems necessary.

3.  In addition to the requirements set forth in subsection 2, the applicant must submit to the Division:

(a) Payment of the fees charged by a local law enforcement agency pursuant to NAC 116.515 or, if the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository pursuant to subsection 2, evidence of such payment;

(b) Documentation that the applicant possesses the education required pursuant to NAC 116.160;

(c) Documentation that the applicant has passed the examination for certification;

(d) The statement described in NRS 116A.440;

(e) Payment of the fee required by NAC 116.505 for reinstatement; and

(f) Such other pertinent information as the Division may require.

4.  If a certificate has not been renewed for a period that exceeds 1 year past its expiration date, an applicant must reapply pursuant to the provisions of NAC 116.100.

5.  The Division may refuse to reinstate a certificate if:

(a) The applicant has been convicted of, or entered a plea of guilty or nolo contendere to, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or possessing for the purpose of sale any controlled substance or any crime involving moral turpitude;

(b) The applicant fails to complete, sign and submit the statement required pursuant to NRS 116A.440;

(c) The Division receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional certificates and permits issued to the applicant; or

(d) The applicant has engaged in conduct which is grounds for disciplinary action pursuant to NAC 116.360 and has been disciplined by the Division or the Commission.

6.  If the Division, after an application to reinstate a certificate in proper form has been filed, accompanied by the proper fees, refuses to reinstate the certificate, the Division shall give notice of this fact to the applicant within 15 days after the ruling, order or decision. The applicant may file a written request for a hearing before the Commission pursuant to the procedures set forth in NAC 116.150.

7.  If the Division refuses to reinstate a certificate solely because it receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional certificates and permits issued to the applicant, the Division shall reinstate the certificate if the Division receives a letter issued by the district attorney or other public agency pursuant to NRS 425.550 to the person whose certificate was suspended stating that the person has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.169  Invalidation of certificate. (NRS 116.615, 116A.200, 116A.410)  The Division, upon the discovery of any error in the issuance of a certificate which is related to the qualification or fitness of the holder thereof, may invalidate the certificate upon notice in writing to the holder. The holder shall surrender the certificate to the Division within 20 days after the notice is sent by the Division. A person whose certificate has been invalidated and surrendered pursuant to this section may request a hearing on the matter in the same manner as for the denial of an application pursuant to NAC 116.150.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.175  Provisional community managers: General requirements. (NRS 116.615, 116A.200, 116A.400, 116A.410)

1.  A provisional community manager must:

(a) Be associated with a supervising community manager for a minimum of 2 years; and

(b) Except as otherwise provided in NAC 116.180, within 2 years after the issuance of the certificate granting provisional status, obtain 3,120 hours of active experience in the following areas:

(1) Financial management of an association;

(2) Property and facilities management;

(3) Specific duties relating to the management of a common-interest community as provided in this chapter and chapter 116 of NRS;

(4) Governance of an association;

(5) Insurance coverage; and

(6) Building a sense of community within an association.

2.  Except as otherwise provided in subsection 3, upon obtaining 2 years of active experience in this State, a provisional community manager is entitled to act as a community manager without being associated with a supervising community manager if the provisional community manager submits to the Division:

(a) A statement, on a form prescribed by the Division, completed and signed by his supervising community manager that verifies:

(1) The extent of the active experience gained in each of the areas set forth in subsection 1; and

(2) That the provisional community manager has met the active experience requirements set forth in subsection 1;

(b) A certificate of completion for the 18 hours of continuing education required pursuant to NAC 116.160; and

(c) The fee required by NAC 116.505 for the renewal of a certificate.

3.  A provisional community manager may submit to the Division evidence of any other education or experience that the Division may deem to be equivalent to the requirements of this section.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, 4-14-2005, eff. 1-1-2006; A by R205-05, 9-18-2006)

NAC 116.180  Provisional community managers: Renewal of certificate. (NRS 116.615, 116A.200, 116A.400, 116A.410)  A provisional community manager who has not obtained the active experience required pursuant to NAC 116.175 may renew his certificate granting provisional status for an additional 2 years if he submits to the Division:

1.  A certificate of completion for the 18 hours of continuing education required pursuant to NAC 116.160; and

2.  The fee required by NAC 116.505 for the renewal of a certificate.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, 4-14-2005, eff. 1-1-2006)

NAC 116.185  Supervising community managers: Qualifications and responsibilities. (NRS 116.615, 116A.200, 116A.400, 116A.410)

1.  A community manager is qualified to act as a supervising community manager if:

(a) He submits to the Division, on a form prescribed by the Division, an application to act as a supervising community manager;

(b) He has been actively engaged in the full-time management of a common-interest community in this State, another state or the District of Columbia for at least 4 years immediately preceding his becoming a supervising community manager, with at least 2 of the 4 years of experience obtained in this State;

(c) He is in good standing with the Division or any state or the District of Columbia where he is licensed or certified; and

(d) He is competent to engage in the management of a common-interest community and the supervision of community managers in a manner which will safeguard the interests of the public.

2.  A supervising community manager is responsible for:

(a) Supervising one or more provisional community managers or community managers who are associated with him;

(b) Determining the competency of the provisional community managers or community managers who are associated with him to perform delegated tasks of managing a common-interest community;

(c) Teaching the provisional community managers and community managers who are associated with him the fundamentals of managing a common-interest community and the ethics of the profession;

(d) Supervising the activities and operation of managing a common-interest community;

(e) Establishing the policies, rules, procedures and systems that will allow the supervising community manager to review, oversee and manage any business conducted by the provisional community managers or community managers who are associated with him, including any other employees;

(f) Establishing reasonable procedures and safeguards for the filing, storage, handling and maintenance of documents that may have a material effect upon the rights or obligations of the parties to the management agreement and the association affected by the management agreement; and

(g) Establishing reasonable procedures and safeguards for the handling of any money received on behalf of a client.

3.  In establishing the policies, rules, procedures and systems pursuant to subsection 2, a supervising community manager shall consider the number of community managers and other employees associated with the supervising community manager and the number and location of branch offices operated or managed by the supervising community manager.

4.  The supervising community manager shall appoint for each branch office a supervising community manager to supervise and oversee the activities and operations of the branch office.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, 4-14-2005, eff. 1-1-2006; A by R205-05, 9-18-2006)

EDUCATION OF COMMUNITY MANAGERS

General Provisions

NAC 116.195  “School” defined. (NRS 116.615, 116.665)  For the purposes of NAC 116.195 to 116.287, inclusive, “school” includes:

1.  Any university, school or community college which is a part of the Nevada System of Higher Education, or any other university or college bearing the same or an equivalent accreditation.

2.  Any professional school or college licensed by the Nevada Commission on Postsecondary Education.

3.  Any out-of-state professional school or college licensed or accredited by a real estate commission, a department of education or an equivalent agency of this or any other state.

4.  A nationally recognized professional organization which provides educational courses and national accreditation of courses or schools for those engaged in the management of common-interest communities.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

Courses for Original Certification

NAC 116.201  Approval of school required; exceptions. (NRS 116.615, 116.665)

1.  Except as otherwise provided in subsection 2, before any school offers or conducts a course of instruction designed to fulfill the educational requirements for issuance of an original certificate under this chapter and chapter 116 of NRS, the school must be approved by the Commission.

2.  The Commission may accept a course from any of the following schools without prior approval of the school:

(a) Any university, school or community college of the Nevada System of Higher Education or other university or college bearing the same or equivalent accreditation.

(b) Any other school offering a course in the management of common-interest communities if the course is:

(1) Approved by any real estate commission or division in any state of the United States or province of Canada; or

(2) In the judgment of the Commission, equivalent in quality to the courses of colleges or universities accredited by any regional accrediting agency recognized by the United States Department of Education.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.204  Application for and period of approval. (NRS 116.615, 116.665)

1.  A school that wishes to offer courses to meet the educational requirements for original certification under this chapter and chapter 116 of NRS must:

(a) Apply to the Commission annually for approval on a form prescribed by the Division; and

(b) Pay the appropriate fee required by NAC 116.505 for approval of courses.

2.  The application must include, without limitation:

(a) The name and address of the school;

(b) The type of school and a description of its facilities;

(c) Information concerning the ownership of the school, including the business organization and the names and addresses of all directors, principals, officers and others having interests as owners;

(d) A list of the instructors;

(e) A list of the courses to be offered and a topical syllabus for each;

(f) The allotment of time for each subject;

(g) A proposed schedule of courses for 1 year;

(h) The titles, authors and publishers of all required textbooks;

(i) A copy of each examination to be used and the correct answer for each question;

(j) A statement of:

(1) The purpose of the school;

(2) The fees to be charged;

(3) The days, times and locations of classes;

(4) The number of quizzes and examinations;

(5) The grading systems, including the methods of testing and standards of grading;

(6) The requirements for attendance; and

(7) The location of the students’ records; and

(k) A statement as to whether the school or any instructor employed by the school has been disciplined by any governmental agency in this or any other state.

3.  The Commission’s approval of a course to meet the educational requirements for an original certificate is effective for 1 year after the original approval or a renewal.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.207  Conditions of approval; evidence of certain licensure. (NRS 116.615, 116.665)

1.  If a school has applied for and received the approval of the Commission to offer courses to meet the requirements for original certification under this chapter and chapter 116 of NRS, the school shall, as a condition of the approval:

(a) Maintain a record of attendance and certification for each student in any of those courses for 7 years after his enrollment and shall have such records open to inspection by the Division, upon its request, during the regular business hours of the school.

(b) Upon the request of a transferring student, furnish the school to which he is transferring a copy of his attendance record and certification for each of those courses which he has completed.

(c) Upon the request of a student, furnish the Division a transcript of the record of his grades and attendance.

2.  A school that does not meet the definition of a “school” set forth in subsection 1, 3 or 4 of NAC 116.195 must provide evidence to the Division that the school is licensed to operate by the Commission on Postsecondary Education.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.211  Requirements for course: Generally. (NRS 116.615, 116.665)

1.  Except as otherwise provided in NAC 116.214, a school that the Commission has approved to give a course fulfilling the educational requirements for an original certificate shall require each student to attend the required number of hours of instruction and to pass at least two written examinations in the course with a minimum score of 75 percent as a condition of receiving certification for the course.

2.  The school may certify only the number of hours for which the course has been approved by the Commission.

3.  The entire course must be completed by the student to satisfy the requirements for an original certificate.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.214  Requirements for course: Correspondence course. (NRS 116.615, 116.665)  If the Commission approves a school to give a course of study which fulfills the educational requirements for an original certificate and the school offers the course by correspondence, the school shall:

1.  Require each student to:

(a) Pass a closed-book final examination with a minimum score of 75 percent and with a proctor present at a location designated by the school in its application for approval filed with the Commission;

(b) Take two progress examinations or quizzes in addition to the final examination;

(c) Prove his identity before he is allowed to take any examination; and

(d) Complete each course within an established minimum and maximum time.

2.  Certify the completion of only the number of hours for which the course has been approved by the Commission. A portion of a course does not satisfy the requirements for an original certificate.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.217  Unacceptable courses. (NRS 116.615, 116.665)

1.  The Division shall not accept an applicant’s completion of any course which is designed to prepare students for examination, commonly known as a “cram course,” as fulfillment of the educational requirements for his original certification.

2.  None of the following kinds of courses will be accepted from an applicant as fulfillment of any part of the 60 hours of education required by NAC 116.120 for original certification:

(a) Courses designed to develop or improve clerical, office or business skills that are not related to the management of a common-interest community, such as typing, shorthand, operation of business machines, the use of computers or computer software, improvement of memory, or writing of letters and reports; or

(b) Business courses in advertising, marketing or psychology.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.221  Notice to Division of material change; requirements for renewal of approval; denial of renewal. (NRS 116.615, 116.665)

1.  Within 15 days after the occurrence of any material change in the information provided by the school in its application pursuant to NAC 116.204 which would affect its approval by the Commission, the school shall give the Division written notice of that change.

2.  To qualify for annual renewal of approval by the Commission, a school must submit to the Commission before July 1:

(a) A written certification, in a form prescribed by the Division, declaring that the school has met all applicable requirements of this chapter;

(b) A sworn statement, in a form prescribed by the Division, declaring that the information contained in the original application is current or, if it is not current, a list of all material changes; and

(c) Payment of the appropriate fee required by NAC 116.505 for the renewal of courses.

3.  The Commission may deny renewal of approval to any school that does not meet the standards required by this chapter.

4.  Within 60 days after a decision is made to deny renewal of approval, the Commission must give written notice of the decision and the basis for that decision by certified mail to the last known address of the school.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.224  Misrepresentation in advertising prohibited. (NRS 116.615, 116.665)  A school approved by the Commission shall not make any misrepresentation in its advertising about any course of instruction which it offers to fulfill requirements for certification under this chapter.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

Continuing Education

NAC 116.234  Approval of and requirements for course; record of attendance or completion. (NRS 116.615, 116.665)

1.  An application for the approval of a course for continuing education must be submitted to the Division on a form provided by the Division for review and presentation to the Commission and must include the fee required by NAC 116.505. The Commission’s approval of a course for continuing education is effective for 1 year after the original approval or a renewal.

2.  The Commission may grant retroactive approval for a course for continuing education.

3.  The Commission will grant credit for a course for continuing education only if:

(a) The course consists of at least 3 hours of distance education or instruction in a classroom.

(b) For a course of instruction in a classroom, the sponsor of the course:

(1) Certifies the attendance of holders of a certificate who take the course for credit.

(2) Maintains for at least 4 years a record of attendance which contains the following information with respect to each holder of a certificate who has taken the course for credit:

(I) The name of the holder of a certificate in attendance and the number of his certificate.

(II) The title and number of the course.

(III) The hours of instruction attended and dates of attendance by the holder of a certificate.

(IV) A statement that the holder of a certificate has successfully completed the course, if applicable.

(3) Assures the Commission that an approved instructor will preside throughout the course.

(c) For a course of distance education, the sponsor of the course:

(1) Requires each student to:

(I) Take a closed-book final examination with a proctor present at a location designated by the sponsor in its application for approval filed with the Division and receive a score of at least 75 percent to pass the course;

(II) Prove his identity before he is allowed to take any examination;

(III) Complete an entire course to receive credit for taking the course; and

(IV) Complete each course within an established minimum and maximum time.

(2) Gives credit for only the number of hours for which the course has been approved by the Commission to a holder of a certificate who has completed the course.

(3) Publishes a policy for retaking an examination which a holder of a certificate failed.

(4) Maintains for at least 4 years a record of completion of the course which contains the following information with respect to each holder of a certificate who has taken the course for credit:

(I) The name of the holder of a certificate who completes the course and the number of his certificate.

(II) The title and number of the course.

(III) A statement that the holder of a certificate has successfully completed the course, which includes, without limitation, the date that the course was completed and the number of hours completed.

4.  If a course is approved, the sponsor shall provide a certified copy of the record of attendance or record of completion to the holder of a certificate upon his completion of the course. The Division shall accept the certified copy as proof of the attendance of the holder of a certificate or completion of the course by the holder of a certificate for the purpose of renewal or reinstatement of his certificate. If the course is taken at a university or community college, the proof of attendance must be a certified transcript. The certified copy of the record of attendance or record of completion of a sponsor must contain the:

(a) Name of the sponsor;

(b) Name of the holder of a certificate and his certificate number;

(c) Number of hours of credit for continuing education for which the course is approved;

(d) Dates of instruction for a course of instruction in a classroom;

(e) Date of completion of the course for a course of distance education;

(f) Title of the course or seminar;

(g) Number of the sponsor assigned by the Division and a statement that the course was approved by the Commission;

(h) Signature of the person authorized to sign for the sponsor;

(i) Grade received by the holder of a certificate or a statement of whether the holder of a certificate passed the class if an examination was given; and

(j) Manner in which instruction for the course was delivered.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.237  Distance education course: Requirements and considerations for approval. (NRS 116.615, 116.665)

1.  A person who requests approval of a distance education course must demonstrate to the satisfaction of the Commission that the proposed distance education course satisfies the following requirements:

(a) The course must be designed to ensure that students actively participate in the instructional process by utilizing techniques that require substantial interaction with the instructor, other students or a computer program. If the subject matter of the course is such that the learning objectives for the course cannot be reasonably accomplished without direct interaction between the instructor and the students, the course design must provide for such interaction.

(b) If the course does not provide students with the opportunity for continuous audio and visual communication with the instructor during the presentation of the course, the course must utilize testing and remedial processes appropriate to ensure mastery of the subject matter of the course by the students.

(c) If the course involves self-paced study, the course must be designed so that the time required for a student of average ability to complete the course is within the number of hours for which the course is approved, and the sponsor of the course shall utilize a system which ensures that students have actually performed all tasks designed to ensure participation and mastery of the subject matter of the course by the students.

(d) The proposed methods of instruction used in the course must be appropriate to the proposed learning objectives of the course, and the scope and depth of the instructional materials must be consistent with the proposed learning objectives.

(e) The sponsor of the course shall provide appropriate technical support to enable students to complete the course satisfactorily.

(f) An approved instructor must be reasonably available to respond timely to questions asked by students concerning the subject matter of the course and to direct students to additional sources of information. For the purposes of this paragraph, a response by an approved instructor shall be deemed timely if the response is made within 2 business days after the question is submitted.

(g) The sponsor of the course shall provide students with an orientation or information package which contains all information that the Division requires to be provided to students and all necessary information about the course, including, without limitation, information concerning fees and refund policies, subject matter and learning objectives, procedures and requirements for satisfactory completion, any special requirements with regard to computer hardware and software or other equipment, and instructor and technical support. The sponsor shall make available to students technical support relating to the use of any computer hardware or software, or other equipment or technology needed to complete the course.

(h) The sponsor of the course shall utilize procedures which reasonably ensure that a student who receives credit for continuing education for completing the course actually performed all the work required to complete the course. If the course involves independent study by students, such procedures must include, without limitation, the opportunity for direct contact by the sponsor with the student at the student’s home or business via telephone or electronic mail and a signed statement by the student certifying that he personally completed all course work. The sponsor shall retain such signed statements and records of student contact together with all other course records the sponsor must maintain.

2.  A sponsor seeking approval of a computer-based distance education course must submit a complete copy of the course to the Division in the medium to be used and, if requested, must make available, at a date and time satisfactory to the Division and at the sponsor’s expense, all equipment and software necessary to enable the Division to review the course. In the case of an Internet-based course, the sponsor shall provide the Division with access to the course via the Internet at no charge at a date and time satisfactory to the Division.

3.  In determining whether to approve a distance education course pursuant to this section, the Commission will consider whether:

(a) The course consists of at least 3 hours of instruction;

(b) Students are required to complete a written examination proctored by a person acceptable to the Division or using a secure electronic method acceptable to the Division; and

(c) The course is presented by an accredited college or university that offers distance education in other disciplines, or whether the course design and method of delivery have been accredited by an accrediting agency which accredits distance education and which is approved by the Commission. For an accrediting agency to be approved by the Commission for the purposes of this paragraph, the accrediting agency must use the following considerations when making its determination on whether to accredit a distance education course:

(1) The mission statement of the sponsor of the course;

(2) The minimum design of the course and the procedures for updating the course;

(3) The interactivity of the instruction with the students;

(4) Whether the instruction provided in the course teaches mastery of the course material;

(5) The support services that are available to students;

(6) The medium through which the course is delivered to students;

(7) A time study of the range of instructional hours for which a course should be approved or accredited;

(8) For each module of instruction, whether there is:

(I) At least one learning objective for the module of instruction;

(II) A structured learning method to enable the student to achieve each such learning objective;

(III) A method of assessment of the student’s performance during the module of instruction; and

(IV) A method of remediation pursuant to which a student who, based on the assessment of his performance, is determined to be deficient in his mastery of the course material may repeat the module until the student understands the course material; and

(9) Whether a complete syllabus or student manual, or both, for all courses or programs is provided in written form and includes accurate and clearly stated information about admissions, progression, completion, criteria, dismissal and any applicable licensing requirements.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, 4-14-2005, eff. 7-1-2005)

NAC 116.241  Approved course: Duties of sponsor. (NRS 116.615, 116.665)

1.  If a course has been approved and is being offered for continuing education, the sponsor must state on all the course materials:

(a) That the course is approved for continuing education in Nevada;

(b) The number of hours of credit for continuing education for which the course is approved;

(c) The number of the sponsor assigned by the Division; and

(d) The manner in which instruction for the course will be delivered.

2.  If a course offered by a sponsor that is a professional organization has been approved for continuing education, the sponsor shall not restrict attendance at the course to members of that organization.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.244  Notice of policy concerning cancellations and refunds. (NRS 116.615, 116.665)  Any advertising, promotional brochure or form for registration for a course for continuing education must contain, in writing, the policy of the sponsor concerning cancellations and refunds.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.247  Restrictions on receipt of credit for course; final examination. (NRS 116.615, 116.665)

1.  A course may not be taken for credit to meet the requirements for continuing education more than once during any two consecutive periods for renewal of a certificate.

2.  Courses taken to satisfy requirements for renewal or reinstatement of a certificate must be completed within 2 years immediately before the latest date for renewing or reinstating the certificate.

3.  A holder of a certificate may receive credit for continuing education only upon certification by the sponsor that the holder of the certificate has attended and completed at least 90 percent of the course.

4.  The sponsor shall determine whether a final examination is required for the completion of a course.

(Added to NAC by Real Estate Comm’n by R058-98, 6-26-98, eff. 7-1-98; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)—(Substituted in revision for NAC 116.230)

NAC 116.251  Credit for attendance at meeting of Commission. (NRS 116.615, 116.665)

1.  The Commission will grant credit for continuing education, not to exceed 6 hours during a certification period, to a holder of a certificate for attending a meeting of the Commission if:

(a) The meeting of the Commission for which credit for continuing education is being sought is not a meeting in which the holder of a certificate was participating or otherwise affiliated with a specific disciplinary hearing;

(b) The meeting of the Commission for which credit for continuing education is being sought lasts at least 3 hours; and

(c) The Commission certifies, for the purposes of providing credit for continuing education, the attendance of the holder of a certificate at the meeting.

2.  If a holder of a certificate attends only part of a meeting of the Commission, the Division may determine the number of hours of credit, if any, that the holder of a certificate may receive for credit for continuing education pursuant to this section.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

Approved Courses and Instructors

NAC 116.261  Requirements for instructors and guest lecturers; advertising. (NRS 116.615, 116.665)  A school that conducts courses approved by the Commission:

1.  May employ as instructors of those courses only persons who meet the qualifications set forth in NAC 116.264.

2.  Shall limit noncertificated guest lecturers who are experts in the related fields to a total of 9 hours of instruction per approved course.

3.  Shall include a statement that the school is approved by the Commission on all advertisements of the school.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.264  Instructors: Approval by Division. (NRS 116.615, 116.665)

1.  An instructor must have written approval from the Division before teaching an approved course.

2.  An applicant for approval as an instructor must apply on a form prescribed by the Division.

3.  The Division shall not, without the approval of the Commission, approve a person as an instructor if the person:

(a) Has been disciplined by the Commission or the Division acting on behalf of the Commission:

(1) Within the immediately preceding 5 years; or

(2) More than one time; or

(b) Has been determined in an administrative or judicial proceeding to have violated any statute, rule, regulation or order pertaining to real estate in this or any other state.

4.  A person may be approved as an instructor to teach an approved course relating to his principal occupation if:

(a) He has:

(1) A bachelor’s degree or a more advanced degree, plus at least 2 years of full-time experience, in the field in which he will be providing instruction;

(2) At least 75 hours of teaching experience in the field in which he will be providing instruction within the 3 years immediately preceding the date of his application for approval plus at least 3 years of full-time experience in that field;

(3) At least 6 years of full-time experience in the field in which he will be providing instruction; or

(4) Any combination of at least 6 years of college-level course work and full-time experience in the field in which he will be providing instruction;

(b) He has a good reputation for honesty, integrity and trustworthiness; and

(c) He submits to the Division satisfactory documentation of his qualifications and a resume outlining his experience, education and teaching experience in the field in which he will be providing instruction.

5.  The Division shall periodically review and evaluate each approved instructor.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.267  Instructors: Responsibilities. (NRS 116.615, 116.665)

1.  An instructor shall ensure that:

(a) Class sessions are commenced in a timely manner and are conducted for the full amount of time that is approved; and

(b) Each course is taught according to the course plan and instructor guide that was approved by the Commission, including the furnishing to students of appropriate student materials.

2.  An instructor shall conduct himself in a professional and courteous manner when performing his instructional duties and shall conduct classes in a manner that demonstrates the following basic teaching skills:

(a) The ability to present instruction in a thorough, accurate, logical, orderly and understandable manner, to utilize illustrative examples as appropriate and to respond appropriately to questions from students;

(b) The ability to utilize effectively varied instructional techniques in addition to lectures, including, without limitation, class discussion, role-playing and other techniques;

(c) The ability to utilize varied instructional aids effectively to enhance learning;

(d) The ability to maintain an appropriate learning environment and effective control of a class; and

(e) The ability to interact with adult students in a positive manner that:

(1) Encourages students to learn;

(2) Demonstrates an understanding of varied student backgrounds;

(3) Avoids offending the sensibilities of students; and

(4) Avoids personal criticism of any other person, agency or organization.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.271  Instructors: Withdrawal of approval. (NRS 116.615, 116.665)

1.  The Administrator may withdraw the approval of an instructor who:

(a) Does an inadequate job of teaching the subject matter of a course as evidenced by student evaluations or an audit conducted by the Division;

(b) Has been determined in any administrative or judicial proceeding to have violated any statute, rule, regulation or order pertaining to real estate;

(c) Has been convicted of, or entered a plea of guilty or nolo contendere to, any crime involving fraud, deceit, misrepresentation or moral turpitude; or

(d) Engages in inappropriate behavior in the classroom as evidenced by an audit conducted by the Division.

2.  Before withdrawing approval of the instructor of a course, the Administrator must notify the sponsor of the course of his intent to withdraw approval of the instructor. The notice must include the specific reasons upon which the Administrator is basing his decision to withdraw the approval of the instructor. Not later than 30 days after the date on which he receives the notice, a sponsor may provide a written response to the Administrator that clearly sets forth the reasons why the approval of the instructor should not be withdrawn and outlining any corrective measures that the sponsor will undertake. After the 30-day period has elapsed, the Administrator shall review the notice and any response submitted by the sponsor and shall:

(a) Withdraw approval of the instructor;

(b) Allow the instructor to remain approved if certain specific enumerated conditions are met; or

(c) Allow the continued approval of the instructor.

Ê If the Administrator decides to withdraw approval of the instructor, the withdrawal of approval of the instructor becomes effective upon the mailing of the decision of the Administrator to the sponsor of the course taught by the instructor by certified mail, return receipt requested, to the sponsor’s last known business address.

3.  If the Administrator withdraws approval of an instructor, the Division shall give credit to a student for completing the course if the student began the course before the sponsor received written notice of the withdrawal of approval of the instructor.

4.  The sponsor may appeal the decision of the Administrator to withdraw approval of an instructor by filing an appeal with the Commission not later than 30 days after the date on which the withdrawal of the approval of the instructor becomes effective.

5.  If the sponsor files a timely appeal, the Commission will, as soon as practicable, hold a hearing concerning the withdrawal of approval of the instructor at a regularly scheduled meeting and will:

(a) Affirm the decision of the Administrator to withdraw approval of the instructor;

(b) Suspend approval of the instructor for a limited period and under such conditions as the Commission deems appropriate; or

(c) Reverse the decision of the Administrator to withdraw approval of the instructor.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.274  Courses: Responsibilities of sponsor; renewal of approval; review and audit; grounds for withdrawing or refusing to renew approval; discipline of sponsor. (NRS 116.615, 116.665)

1.  The sponsor of an approved course:

(a) Shall not allow a holder of a certificate to pass the course by taking an examination without having the required attendance;

(b) Shall admit authorized personnel of the Division to audit and evaluate the presentation of the course;

(c) Shall notify the Division within 15 days after making any material change in the course; and

(d) Shall not present a course for the main purpose of selling products or services and shall limit the announcement of products or services during the course to not more than 2 minutes.

2.  The sponsor must apply for renewal on a form provided by the Division and describe on that form any changes in the course. An application for renewal must be filed at least 2 weeks before the previous approval expires. If the sponsor does not timely file the application for renewal, the sponsor must apply for an original approval.

3.  Each approved course and instructor is subject to review and audit by the Division. If the Division conducts such a review or audit, the sponsor shall make available to the Division all records requested which are necessary to the review.

4.  The Division shall renew the approval of a course if the information concerning the course has been updated and there is no material change in the content of the course.

5.  Each of the following acts and conditions is a ground for the Commission to withdraw or refuse to renew its approval of a course:

(a) The curriculum or instruction, as shown by evaluations or audits, is of poor quality.

(b) The violation of any provision of this chapter relating to continuing education.

(c) The course is not taught within the last period for which the course is approved.

(d) The sponsor of the course has made a false statement or has presented any false information in connection with an application for the approval of the course, the renewal of such approval or the approval of the sponsor.

(e) The sponsor of the course or any official or instructor employed by the sponsor has refused or failed to comply with any provision of this chapter or chapter 116 of NRS.

(f) The sponsor of the course or any official or instructor employed by the sponsor has provided false or incorrect information in connection with any report the sponsor is required to submit to the Commission.

(g) The sponsor of the course has engaged in a pattern of consistently cancelling scheduled courses.

(h) The sponsor of the course has remitted to the Commission in payment for required fees a check which was dishonored by a bank.

(i) An instructor employed by the sponsor of an approved course fails to conduct approved courses in a manner that demonstrates possession of the teaching skills described in this chapter.

(j) A court of competent jurisdiction has found the sponsor of the approved course or any official or instructor employed by the sponsor to have violated, in connection with the offering of education courses, any applicable federal or state law or regulation:

(1) Prohibiting discrimination on the basis of disability;

(2) Requiring places of public accommodation to be in compliance with prescribed standards relating to accessibility; or

(3) Requiring that courses related to certification for professional or trade purposes be offered in a place and manner accessible to persons with disabilities.

(k) The sponsor of the course or any official or instructor employed by the sponsor has been disciplined by the Commission or any other occupational certification agency in this State or any other jurisdiction.

(l) The sponsor of the course or any official or instructor employed by the sponsor has collected money for an educational course but has refused or failed to provide the promised instruction.

6.  A holder of a certificate who is the sponsor of an approved course is subject to disciplinary action pursuant to the provisions of this chapter for any dishonest, fraudulent or improper conduct by the holder of a certificate, or an instructor of the approved course employed by the holder of a certificate, in connection with activities related to the approved course.

7.  As used in this section, “disability” means:

(a) A physical or mental impairment that substantially limits one or more of the major life activities of the person;

(b) A record of such an impairment; or

(c) Being regarded as having such an impairment.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.277  Courses: Withdrawal of approval. (NRS 116.615, 116.665)

1.  If the Administrator determines, whether pursuant to an audit or otherwise, that an approved course does not meet the standards for such a course set forth in this chapter, the Administrator shall notify the sponsor of the course of his intent to withdraw approval of the course. The notice must include the specific reasons upon which the Administrator is basing his decision to withdraw approval of the course. Not later than 30 days after the date on which he receives the notice, the sponsor may provide a written response to the Administrator that clearly sets forth the reasons why approval of the course should not be withdrawn and outlining any corrective measures that the sponsor will undertake. After the 30-day period has elapsed, the Administrator shall review the notice and any response submitted by the sponsor and:

(a) Withdraw approval of the course;

(b) Allow the course to remain approved if certain specific enumerated conditions are met; or

(c) Allow the continued approval of the course.

Ê If the Administrator decides to withdraw approval of the course, the withdrawal of approval of the course becomes effective upon the mailing of the decision of the Administrator to withdraw approval to the sponsor by certified mail, return receipt requested, to the sponsor’s last known business address.

2.  If the Administrator withdraws approval of a course, the Division shall give credit to a student for completing the course if the student began the course before the sponsor received written notice of the withdrawal of approval of the course.

3.  The sponsor may appeal the decision of the Administrator to withdraw approval of a course by filing an appeal with the Commission not later than 30 days after the date on which the withdrawal of the approval of the course becomes effective.

4.  If the sponsor files a timely appeal, the Commission will, as soon as practicable, hold a hearing concerning the withdrawal of approval of the course at a regularly scheduled meeting and will:

(a) Affirm the decision of the Administrator to withdraw approval of the course;

(b) Suspend approval of the course for a limited period and under such conditions as the Commission deems appropriate; or

(c) Reverse the decision of the Administrator to withdraw approval of the course.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.281  Courses: Reapproval by Division if no changes. (NRS 116.615, 116.665)  The Division shall, on behalf of the Commission, reapprove an approved course if no changes in the course have occurred since the course was last approved or reapproved.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.284  Evaluation of course and instructor by students. (NRS 116.615, 116.665)

1.  Each approved course and each instructor of an approved course must be evaluated by students on a form prescribed by the Division and provided by the sponsor during every course offering.

2.  The sponsor shall:

(a) Arrange for the collection of the completed evaluations by a person other than the instructor of the approved course; and

(b) Mail or deliver copies of the completed evaluations to the Division within 10 working days after the last day of class for the course.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.287  Certificate of completion of course: Prerequisite activities of student; appeal of denial. (NRS 116.615, 116.665)

1.  To receive a certificate of completion for an approved course, a student must:

(a) Direct his attention to the instruction being provided and refrain from engaging in activities unrelated to the instruction; and

(b) Refrain from engaging in activities which are distracting to other students or the instructor, or which otherwise disrupt the orderly conduct of a class, including, without limitation, the use of voice pagers, beepers and telephones.

2.  An instructor shall deny the award of a certificate of completion to a student who fails to satisfy the conditions set forth in subsection 1.

3.  If an instructor denies the award of a certificate of completion to a student, the student may, within 30 days after that denial, file a written request with the Administrator to review the matter. If the written request contains allegations which, if true, would qualify the applicant to receive a certificate of completion, the Administrator shall set the matter for an informal hearing before him to be conducted as soon as practicable.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

PRACTICE BY COMMUNITY MANAGERS

NAC 116.300  Responsibilities. (NRS 116.615, 116A.200, 116A.400)  A community manager shall:

1.  Comply with the lawful provisions of the governing documents of each client;

2.  Maintain an inventory of all records of each client;

3.  Keep informed of new developments in the management of a common-interest community through continuing education, including, without limitation, new developments in law, insurance coverage and accounting principles;

4.  Advise a client to obtain advice from an expert relating to matters that are beyond the expertise of the community manager;

5.  Under the direction of a client, uniformly enforce the provisions of the governing documents of the association;

6.  At all times ensure that the financial transactions of a client are current, accurate and properly documented and that there are established policies and procedures surrounding the financial transactions that are designed to provide reasonable assurances in the reliability of the financial reporting, including, without limitation, proper maintenance of accounting records, documentation of the authorization for receipts and disbursements, verification of the integrity of the data used in business decisions, facilitation of fraud detection and prevention, and compliance with the applicable laws and regulations governing financial records;

7.  Prepare or cause to be prepared interim and annual financial statements that will allow the Division, the executive board, the units’ owners and the accountant or auditor to determine whether the financial position of an association is fairly presented in accordance with the provisions of NAC 116.451 to 116.461, inclusive;

8.  Make the financial records of an association available for inspection by the Division in accordance with the applicable laws of this State;

9.  Cooperate with the Division in resolving complaints filed with the Division;

10.  Upon written request, make the financial records of an association available to the units’ owners during regular business hours for inspection at a reasonably convenient location which must be within 60 miles from the physical location of the common-interest community and provide copies of such records in accordance with the applicable laws of this State;

11.  Deposit all money of an association that is in the possession or control of the community manager in a federally insured financial institution authorized to do business in this State;

12.  Recommend in writing to each client that the association register with the Division, maintain its registration and file all papers with the Division and the Secretary of State as required by law;

13.  Comply with the directions of a client, unless the directions conflict with the governing documents of the association, this chapter or other applicable laws of this State;

14.  Recommend in writing to each client that the association be in compliance with all applicable federal, state and local laws and the governing documents of the association;

15.  Obtain, when practicable, at least three bids for any capital improvement project for the association; and

16.  Fairly enforce the collection policies of a client and comply with all applicable federal, state and local laws relating to the collection of debt.

Ê As used in this section, “regular business hours” means Monday through Friday, 9 a.m. to 5 p.m., excluding state and federal holidays.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005; R205-05, 9-18-2006)

NAC 116.305  Management agreement; evidence of insurance. (NRS 116.615, 116A.200, 116A.400)

1.  A management agreement must:

(a) Be in writing and signed by all parties;

(b) Be entered into between the client and the community manager or the employer of the community manager if the community manager is acting on behalf of a corporation, partnership, limited partnership, limited-liability company or other entity;

(c) State the term of the management agreement;

(d) State the basic consideration for the services to be provided and the payment schedule;

(e) Include a complete schedule of all fees, costs, expenses and charges to be imposed by the community manager, whether direct or indirect, including, without limitation:

(1) The costs for any new association or start-up costs;

(2) The fees for special or nonroutine services such as the mailing of collection letters, the recording of liens and foreclosing of property;

(3) Reimbursable expenses;

(4) The fees for the sale or resale of a unit or for setting up the account of a new member; and

(5) The portion of fees that are to be retained by the client and the portion to be retained by the community manager;

(f) State the identity and the legal status of the contracting parties;

(g) State any limitations on the liability of each contracting party, including any provisions for indemnification of the community manager;

(h) Include a statement of the scope of work of the community manager;

(i) State the spending limits of the community manager;

(j) Include provisions relating to the grounds and procedure for termination of the community manager;

(k) Identify the types and amounts of insurance coverage to be carried by each contracting party, including:

(1) Whether the community manager will maintain errors and omissions or professional liability insurance;

(2) Which contracting party will maintain fidelity bond coverage;

(3) Whether the association will maintain directors and officers liability coverage for the executive board; and

(4) Whether either contracting party must be named as an additional insured under any required insurance;

(l) Include provisions for dispute resolution;

(m) Acknowledge that all records and books of the client are the property of the client, with the exception of any proprietary information and software belonging to the community manager;

(n) State the physical location, including the street address, of the records of the client, which must be within 60 miles from the physical location of the common-interest community;

(o) State the frequency and extent of regular inspections of the common-interest community; and

(p) State the extent, if any, of the authority of the community manager to sign checks on behalf of the client in an operating account.

2.  A management agreement may:

(a) Provide for mandatory binding arbitration;

(b) Provide for indemnification of the community manager in accordance with and subject to the appropriate provisions of title 7 of NRS; and

(c) Allow the provisions of the management agreement to apply month to month following the end of the term of the management agreement but the management agreement may not contain an automatic renewal of the management agreement.

3.  Not later than 10 days after the effective date of a management agreement, the community manager shall provide each member of the executive board evidence of the existence of the required insurance which must include:

(a) The names and addresses of all insurance companies;

(b) The total amount of coverage; and

(c) The amount of any deductible.

4.  After signing a management agreement, the community manager shall provide a copy of the management agreement to each member of the executive board. Within 30 days after an election or appointment of a new member to the executive board, the community manager shall provide the new member with a copy of the management agreement.

5.  Any changes to a management agreement must be initialed by the contracting parties. If there are any changes after the execution of a management agreement, those changes must be in writing and signed by the contracting parties.

6.  Except as otherwise provided in a management agreement, upon the termination or assignment of a management agreement, the community manager shall, within 30 days after such termination or assignment, transfer possession of all books, records and other papers of the client to the succeeding community manager, or to the client if there is no succeeding community manager, regardless of any unpaid fees or charges to the community manager or management company.

7.  Notwithstanding any provision in a management agreement to the contrary, a management agreement may be terminated by the client without penalty upon 30 days’ notice following a violation by the community manager of any provision of this chapter or chapter 116 of NRS.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.310  Required disclosures. (NRS 116.615, 116A.200, 116A.400)  Before entering into a management agreement, a community manager shall disclose in writing to the prospective client any material and relevant information that he knows or should know relates to the performance of the management agreement, including any matters which may affect his ability to comply with the provisions of this chapter or chapter 116 of NRS. Such disclosure must include, without limitation:

1.  Whether he expects to receive any direct or indirect compensation or profits from any person who will perform services for the client and, if so, the identity of the person;

2.  His affiliation with or financial interest in any person who furnishes any goods or services to the client; and

3.  His personal relationships with any unit’s owner, member of the executive board or officer of the association.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.321  Office; display of certificate. (NRS 116.615, 116A.200, 116A.400)

1.  A community manager shall establish an office in Nevada which is reasonably accessible to members of the general public. If he chooses to establish an office in a private home or in conjunction with another business, he shall:

(a) Set aside a separate room for conducting his duties as a community manager; and

(b) Comply with all local zoning requirements.

2.  A community manager shall display his certificate conspicuously in his office.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.331  Change of name, address, association or supervising community manager. (NRS 116.615, 116A.200, 116A.400, 116A.410)

1.  A community manager shall give written notice to the Division of any change of name, address or association within 10 business days after the change occurs and pay the appropriate fee required by NAC 116.505.

2.  A provisional community manager shall give written notice to the Division of any change of his supervising community manager within 10 business days after the change occurs and pay the appropriate fee required by NAC 116.505.

3.  Failure to give notice as required by this section constitutes cause for the involuntary inactivation of the certificate.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by R205-05, 9-18-2006)

NAC 116.341  Prohibited acts. (NRS 116.615, 116A.200, 116A.400)  A community manager shall not:

1.  Except as otherwise required by law or court order, disclose confidential information relating to a client which includes, without limitation, the business affairs and financial records of the client, unless the disclosure is consented to by the client;

2.  Impede or otherwise interfere with an investigation of the Division by:

(a) Failing to comply with a request by the Division to provide documents;

(b) Supplying false or misleading information to an investigator, auditor or any other officer or agent of the Division; or

(c) Concealing any facts or documents relating to the business of a client;

3.  Commingle money or other property of a client with the money or other property of another client, another association, the community manager or the employer of the community manager and shall not use money or other property of a client for his own personal use;

4.  Be a signor on a withdrawal from a reserve account of a client;

5.  Except as otherwise permitted by the provisions of the court rules governing the legal profession, establish an attorney-client relationship with an attorney or law firm which represents a client that employs the community manager or with whom the community manager has a management agreement;

6.  Provide or attempt to provide to a client services concerning a type of property or service:

(a) That is outside his field of experience or competence without the assistance of a qualified authority unless the fact of his inexperience or incompetence is disclosed fully to the client and is not otherwise prohibited by law; or

(b) For which he is not properly licensed;

7.  Apply a payment of an assessment from a unit’s owner towards any fine, fee or other charge that is due;

8.  Refuse to accept from a unit’s owner payment of any assessment, fine, fee or other charge that is due because of the fact that there is an outstanding payment due; or

9.  Collect any fees or other charges from a client not specified in the management agreement.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.351  Allegations of misconduct; submission of complaint; investigation and report; action by Administrator; appeal. (NRS 116.615, 116A.200, 116A.400)

1.  If a person who alleges that a community manager is guilty of misconduct sends the allegations of misconduct in writing to the community manager in an attempt to resolve the issue without filing a complaint with the Division, the community manager shall, in good faith, acknowledge and respond in writing to the person making the allegations within 12 working days after he receives the allegations.

2.  A complaint about a community manager must:

(a) Be submitted to the Division on a form provided by the Division;

(b) Be signed by the person submitting the complaint; and

(c) Include, without limitation:

(1) The identity of the community manager who is alleged to have violated a provision of this chapter or chapter 116 of NRS, and the nature of the alleged violation;

(2) All evidence supporting the allegations, including, without limitation, as appropriate, corroborating statements by other persons or specific information as to persons who may be contacted to provide such corroboration;

(3) The name, address and telephone number of the person submitting the complaint;

(4) Documents that evidence an attempt by the person submitting the complaint to resolve the issue with the executive board or the community manager, including, without limitation, any written response of the executive board or the community manager to the allegations of the person submitting the complaint; and

(5) If filed by a tenant of a unit’s owner, ratification of the complaint by the unit’s owner without the use of a power of attorney by the tenant.

3.  Upon receipt of a complaint that complies with subsection 2, the Division shall forward the complaint to an investigator. The investigator:

(a) Shall send a copy of the complaint to the community manager and the executive board of any association which relates to the subject of the complaint;

(b) Within 12 working days after the receipt of the allegations, shall attempt to obtain a response in writing from the person who is the subject of the complaint;

(c) May make such inquiries and investigation into matters relating to the allegations in the complaint as the investigator deems appropriate; and

(d) Shall submit to the Administrator a written report that summarizes the findings and conclusions of the investigator.

4.  Upon review of the written report of the investigator, if the Administrator determines that grounds for disciplinary action against the community manager exist, the Administrator may take one or more of the following actions as he deems appropriate:

(a) Issue a letter of censure to the community manager who is the subject of the complaint;

(b) Levy an administrative fine of:

(1) For the first offense, $500; and

(2) For the second offense, $1,000;

(c) Require the community manager to obtain additional education relating to the management of a common-interest community;

(d) Refer the matter to the Commission;

(e) Refer the matter to the Real Estate Commission; or

(f) Refer the matter to the Attorney General of this State.

5.  The Administrator may initiate an investigation, audit or inspection of the records of any community manager or any person who performs the duties of a community manager in this State.

6.  Any action taken by the Administrator pursuant to subsection 4 may be appealed by the community manager upon written request to the Commission within 30 days after the Administrator takes such action.

7.  As used in this section, “investigator” means a person whom the Division deems to be impartial and qualified with respect to the matter in a complaint and who is designated by the Division to investigate a complaint pursuant to this section.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)—(Substituted in revision for NAC 116.320)

NAC 116.360  Grounds for disciplinary action; criteria for unprofessional conduct and professional incompetence. (NRS 116.615, 116A.200, 116A.400, 116A.410)

1.  A community manager is subject to disciplinary action if the community manager:

(a) Commits any of the following:

(1) Unprofessional conduct;

(2) Professional incompetence;

(3) Negligence or gross negligence; or

(4) A felony or any offense involving moral turpitude; or

(b) Has had a certificate, permit or license that authorizes him to act as a community manager in another jurisdiction revoked or suspended.

2.  A community manager commits an act of unprofessional conduct if the community manager:

(a) Violates the provisions of:

(1) An order of the Commission;

(2) An agreement with the Division; or

(3) This chapter or chapter 116 of NRS;

(b) Fails to disclose to a client any material fact or other information that he knows or, in the exercise of reasonable care or diligence, should have known, which concerns or relates to the common-interest community and which is of customary or express interest to the client;

(c) Engages in deceitful, fraudulent or dishonest conduct, including, without limitation, knowingly communicating false, misleading or fraudulent information to a client;

(d) Before obtaining a certificate or permit, committed an act which was in fact unknown to the Division at the time it issued the certificate or permit and which would have been grounds for denial of a certificate or permit had the Division been aware of the conduct;

(e) Obtains a certificate or permit by fraud or deceit or by concealing a material fact from the Division, including, without limitation, making a false statement of material fact on the application for the certificate or permit;

(f) Fails to cooperate with the Division in the investigation of a complaint, including, without limitation, failure to produce any document, book or record in the possession or control of the community manager after the Division requests the production of such document, book or record in the course of an investigation of a complaint;

(g) Fails to perform impartially and consistently an activity that is lawful and properly authorized on behalf of a client or fails to perform a duty or obligation owed to a client because of the age, race, color, religion, national origin, disability, marital status, familial status, sex or ethnicity of any person, including, without limitation, a member of the executive board, an officer of the association, a unit’s owner, a tenant of the common-interest community or a visitor of the common-interest community;

(h) Fails to account for or remit money in his possession that belongs to another within a reasonable time of a request for an accounting or remittance of such money by the owner; or

(i) Exceeds the authority granted to him by the client.

3.  A community manager commits an act of professional incompetence if, without limitation, the community manager:

(a) Demonstrates a significant lack of ability, knowledge or fitness to perform a duty or obligation owed to a client; or

(b) Fails to exercise reasonable skill and care with respect to a duty or obligation owed to a client.

4.  In determining whether a community manager has committed unprofessional conduct or professional incompetence, the Commission and the Administrator may consider, without limitation, whether the community manager has:

(a) Done his utmost to protect the public against fraud, misrepresentation or unethical practices related to the business affairs of the client;

(b) Acquired the knowledge of all pertinent facts concerning a client;

(c) Provided or attempted to provide to a client services concerning a type of property or service:

(1) That is outside his field of experience or competence without the assistance of a qualified authority unless the fact of his inexperience or incompetence is disclosed fully to the client and is not otherwise prohibited by law; or

(2) For which he is not properly licensed;

(d) Complied with the disclosure requirement of NAC 116.310;

(e) Complied with the applicable governing documents, policies and procedures of the client;

(f) Kept informed of current statutes and regulations relating to common-interest communities and relating to other areas in which he attempts to provide guidance;

(g) Acted in the best interest of his client;

(h) Ensured that each management agreement is in writing and that each member of the executive board has received a copy of the management agreement;

(i) Obtained all changes of contractual terms in writing and has ensured that such changes are signed or initialed by the parties concerned;

(j) Acquired knowledge of all material facts that are reasonably ascertainable and are of customary or express concern to a client and has conveyed that knowledge to the client; or

(k) Failed to supervise a provisional community manager or employee.

5.  As used in this section:

(a) “Disability” means:

(1) A physical or mental impairment that substantially limits one or more of the major life activities of the person;

(2) A record of such an impairment; or

(3) Being regarded as having such an impairment.

(b) “Familial status” means the fact that a person:

(1) Lives with a child under the age of 19 years and has:

(I) Lawful custody of the child; or

(II) Written permission to live with the child from the person who has lawful custody of the child;

(2) Is pregnant; or

(3) Has begun a proceeding to adopt or otherwise obtain lawful custody of a child.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

NAC 116.370  Disciplinary action by Commission. (NRS 116.615, 116A.200, 116A.400, 116A.410)

1.  If the Administrator refers the matter to the Commission and after conducting a hearing the Commission finds that grounds for disciplinary action against the community manager exist, the Commission may take one or more of the following actions:

(a) Revoke or suspend the certificate;

(b) Refuse to renew or reinstate the certificate;

(c) Place the community manager on probation;

(d) Issue a reprimand or censure to the community manager;

(e) Impose a fine of not more than $5,000 for each violation of a statute or regulation;

(f) Require the community manager to pay restitution;

(g) Require the community manager to pay the costs of the investigation and hearing;

(h) Require the community manager to obtain additional education relating to the management of common-interest communities; or

(i) Take such other disciplinary action as the Commission deems appropriate.

2.  Unless the Administrator determines otherwise and the person satisfies all the requirements for initial issuance of a certificate, the Commission will not issue another certificate to a person whose certificate has been revoked for at least 1 year after the date of the revocation.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)

UNIT-OWNERS’ ASSOCIATIONS

NAC 116.400  Members of executive board: Responsibilities. (NRS 116.3103, 116.615)  In performing the duties set forth in NRS 116.3103, a member of an executive board shall:

1.  Comply with all applicable federal, state and local laws and the governing documents of the association;

2.  Uniformly enforce the provisions of the governing documents of the association;

3.  Ensure that meetings of the executive board are held with such frequency as to properly and efficiently address the affairs of the association;

4.  Keep informed of new developments in the management of a common-interest community through educational courses;

5.  Ensure that the executive board obtains, when practicable, at least three bids from reputable service providers who possess the proper licensing for any service used by the association;

6.  Ensure that the executive board consults with the appropriate professionals as necessary before making major decisions affecting the association;

7.  Deposit all money of an association in a federally insured financial institution authorized to do business in this State; and

8.  If the association does not employ a community manager:

(a) Maintain an inventory of all records of the association;

(b) At all times ensure that the financial transactions of the association are current, accurate and properly documented and that there are established policies and procedures surrounding the financial transactions that are designed to provide reasonable assurances in the reliability of the financial reporting, including, without limitation, proper maintenance of accounting records, documentation of the authorization for receipts and disbursements, verification of the integrity of the data used in business decisions, facilitation of fraud detection and prevention, and compliance with the applicable laws and regulations governing financial records;

(c) Prepare or cause to be prepared interim and annual financial statements that will allow the Division, the executive board, the units’ owners and the accountant or auditor to determine whether the financial position of the association is fairly presented in accordance with the provisions of NAC 116.451 to 116.461, inclusive;

(d) Make the financial records of the association available for inspection by the Division in accordance with the applicable laws of this State;

(e) Cooperate with the Division in resolving complaints filed with the Division;

(f) Upon written request, make the financial records of the association available to the units’ owners during regular business hours for inspection at a reasonably convenient location which must be within 60 miles from the physical location of the common-interest community and provide copies of such records in accordance with the applicable laws of this State; and

(g) Fairly enforce the collection policies of the association and comply with all applicable federal, state and local laws relating to the collection of debt.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005; A by R205-05, 9-18-2006)

NAC 116.405  Members of executive board: Prohibited acts. (NRS 116.3103, 116.615)  In performing the duties set forth in NRS 116.3103, a member of an executive board shall not:

1.  Act outside the scope of the authority granted in the governing documents;

2.  Act for reasons of self-interest, gain, prejudice or revenge;

3.  Commit an act or omission which amounts to incompetence, negligence or gross negligence;

4.  Except as otherwise required by law or court order, disclose confidential information relating to a unit’s owner, a member of the executive board or an officer, employee or authorized agent of the association unless the disclosure is consented to by the person to whom the information relates; or

5.  Impede or otherwise interfere with an investigation of the Division by:

(a) Failing to comply with a request by the Division to provide documents;

(b) Supplying false or misleading information to an investigator, auditor or any other officer or agent of the Division; or

(c) Concealing any facts or documents relating to the business of the association.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.410  Adoption by reference of reporting principles and practices of financial accounting. (NRS 116.615)

1.  For purposes of providing recommended reporting principles and practices of financial accounting for common-interest communities, the Commission hereby adopts by reference the Common Interest Realty Associations – AICPA Audit and Accounting Guide, May 2004 edition. A copy of the publication may be obtained from the American Institute of Certified Public Accountants, 1211 Avenue of the Americas, New York, New York 10036-8775, by telephone at (888) 777-7077 or at the Internet address http://www.aicpa.org/index.htm or https://www.cpa2biz.com/CS2000/Products/CPA2BIZ/Publications/Sub+1/Common+Interest+Realty+Associations+%97+AICPA+Audit+and+Accounting+Guide.htm, at a price of $47 for members and $58.75 for nonmembers.

2.  If the publication adopted by reference in subsection 1 is revised, the Commission will review the revision to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 90 days after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 90 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.415  Contents of budget to maintain reserve. (NRS 116.31151, 116.615)  An executive board shall, in addition to the requirements set forth in paragraph (b) of subsection 1 of NRS 116.31151, include in the budget to maintain the reserve:

1.  An estimate of the amount of reserve funds necessary in the projected fiscal year, based on comparative bids or industry standards, to complete the repairs, replacement or restoration of the major components as recommended in the reserve study; and

2.  Whether there is a difference between the amount of the annual contribution suggested in the reserve study and the amount of the annual contribution for the current budget year and, if so:

(a) The reason for the difference; and

(b) How this difference is proposed to be resolved.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.420  Qualifications of person to conduct reserve study. (NRS 116.31152, 116.615)  A person is qualified by training and experience to conduct a reserve study if:

1.  The person has:

(a) A good reputation for honesty, trustworthiness and integrity;

(b) The ability to evaluate the items on the component inventory with regard to normal and accelerated deterioration, deferred maintenance, remaining years of useful life and current cost to repair or replace;

(c) The ability to perform financial analysis, cost estimates and 30-year projections, as applicable;

(d) The ability to review improvement plans and specifications, maintenance histories, recorded plats and governing documents of the association in order to compile a complete component inventory and to consult with the executive board to ascertain and confirm that the component inventory is complete;

(e) The ability to gather and analyze financial data, including, without limitation, monthly assessment fees per unit, current balance of reserves, interest rate anticipated on reserves, anticipated inflation and maximum assessment fee increases allowable; and

(f) The background and knowledge pertinent to all areas to be addressed by the reserve study; or

2.  The person:

(a) Has a good reputation for honesty, trustworthiness and integrity; and

(b) Uses consultants and other persons with expertise having the knowledge and abilities set forth in subsection 1 to assist in preparing the reserve study.

(Added to NAC by Real Estate Div. by R114-99, eff. 5-5-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)—(Substituted in revision for NAC 116.450)

NAC 116.425  Reserve study: Contents. (NRS 116.31152, 116.615)

1.  A reserve study must, in addition to the requirements set forth in NRS 116.31152, include:

(a) A copy of the component inventory from the previous reserve study if such copy was provided by the executive board to the person conducting the reserve study;

(b) A 30-year schedule which shows:

(1) The projected increase in assessments that will be required in any given year to provide an adequately funded reserve; and

(2) The projected inflation and estimated interest income from the reserve fund;

(c) The names and credentials of any consultants and other persons with expertise used to assist in the preparation of the reserve study;

(d) Any written reports prepared by consultants and other persons with expertise;

(e) If there are any conflicting recommendations of the consultants or other persons with expertise while preparing the reserve study, a written explanation as to which recommendations are selected and the reasons for their selection;

(f) The disclosures set forth in NAC 116.430; and

(g) A statement, prominently displayed, which reads substantially as follows:

The projected life expectancy of the major components and the funding needs of the reserves of the association are based upon the association performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful life of the major components and dramatically increase the funding needs of the reserves of the association.

2.  As used in this section, “adequately funded reserve” means the funds sufficient to maintain the common elements:

(a) At the level described in the governing documents and in a reserve study; and

(b) Without using the funds from the operating budget or without special assessments, except for occurrences that are a result of unforeseen catastrophic events.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.430  Reserve study: Required disclosures. (NRS 116.31152, 116.615)  A person conducting a reserve study and any consultant assisting in the preparation of a reserve study shall include in the reserve study the following disclosures:

1.  The background, training, qualifications and references that would qualify the person conducting or assisting in the preparation of the reserve study as competent to conduct or assist in the preparation of the reserve study;

2.  Any relationship which could result in actual or perceived conflicts of interest;

3.  Whether the person conducting or assisting in the preparation of the reserve study is bonded or has professional liability insurance;

4.  The method for determining the common area components based on:

(a) An actual field inspection of the common elements with representative sampling;

(b) An inventory and material information provided by the client; or

(c) A previous reserve study and the date of that study;

5.  Industry sources used for determining:

(a) The life of a major component; and

(b) The cost of repairing, replacing or restoring a major component;

6.  Any guarantees, express or implied, that are given with the predictions for the cost or life expectancy of any of the major components;

7.  The source of the information regarding the initial reserve fund balance presented in the reserve study; and

8.  Whether a special assessment is anticipated during the time of the contracted reserve study.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.435  Reserve study: Dissemination of summary of results. (NRS 116.31152, 116.615)  An executive board shall submit a summary of the results of the reserve study to the Commission pursuant to subsection 4 of NRS 116.31152 by filing, electronically if possible, on a form prescribed by the Division, the summary of the results of the reserve study with the Division. The Division may post the summary of the results of the reserve studies filed with the Division on its website.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.440  Availability of records of association: “Regular working hours” interpreted. (NRS 116.31175, 116.615)  As used in NRS 116.31175, “regular working hours” means a period of at least 4 consecutive hours per week.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.445  Annual fee required from certain associations for deposit in Account for Common-Interest Communities and Condominium Hotels. (NRS 116.31155)  The amount of the fee that an association is required to pay pursuant to NRS 116.31155 is $3 for each unit in the association.

(Added to NAC by Real Estate Div. by R066-98, eff. 6-26-98)—(Substituted in revision for NAC 116.250)

NAC 116.451  Preparation, contents and distribution of interim financial statements. (NRS 116.31142, 116.615)  The interim financial statements of an association may be prepared using fund accounting or a single-column presentation and must:

1.  Include, at a minimum, a month-to-date and year-to-date presentation of:

(a) The balance sheet, including operating and reserve for future repairs and replacement assets, liabilities and fund balances or members’ equity if a single-column format is used;

(b) The statement of revenues and expenses for all operating and reserve activities, presenting information about all assessments, revenues and expenses;

(c) A schedule comparing the details of the actual expenses of the association with the expenses budgeted for the association;

(d) Any changes in the fund balances to be presented on the statement of revenues and expenses if fund accounting is used; and

(e) A footnote which states that the association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and that reserve funds have not been used for daily maintenance.

2.  Be prepared on a full accrual basis.

3.  Be prepared by, or the preparation of the interim financial statements must be supervised by, a person with accounting knowledge and experience in the preparation of financial statements.

4.  Be distributed monthly, promptly upon completion, to the treasurer of the association, the community manager and each member of the executive board.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.453  Contents of financial statements subject to audit or review. (NRS 116.31142, 116.31144, 116.615)  The financial statements of an association subject to an audit or review must be presented using fund accounting and must include, at a minimum:

1.  An operating fund which reflects the accounting transactions surrounding the normal maintenance and service operations of the association; and

2.  A reserve fund which reflects the accounting transactions pertaining to the long-term, major repair and replacement requirements of the association and the restrictions of its use as described in paragraph (b) of subsection 2 of NRS 116.3115.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

REVISER’S NOTE.

The regulation of the Commission for Common-Interest Communities filed with the Secretary of State on September 18, 2006 (LCB File No. R205-05), the source of this section, contains the following provisions not included in NAC:

“1.  If an association has not previously caused the financial statements of the association to be audited on an annual basis, the association must cause the financial statements of the association to be audited pursuant to NRS 116.31144 for the first fiscal year that begins on or after July 1, 2006.

2.  If an association which is required to cause the financial statements of the association to be audited at lease once every 4 years pursuant to NRS 116.31144 has caused the financial statements of the association to be audited for the fiscal year immediately preceding the first fiscal year that begins on or after July 1, 2006, the association is not required to cause the financial statements of the association to be audited for another 4 years.”

NAC 116.457  Preparation, contents and availability of audited financial statements; qualifications of auditor. (NRS 116.31142, 116.31144, 116.615)

1.  The audited financial statement of an association must:

(a) Include a full presentation of accrual-basis accounting prepared in accordance with generally accepted accounting principles which includes, at a minimum:

(1) A balance sheet for the operating fund and reserve fund, presenting assets, liabilities and fund balances;

(2) A statement of revenues and expenses for the operating fund and reserve fund which presents information about all assessments, revenues and expenses;

(3) A statement of changes in fund balances which reconciles beginning and ending fund balances with results of operations;

(4) A statement of cash flows;

(5) Any note disclosures as required by the Guide; and

(6) The following unaudited supplementary information:

(I) Any reserve disclosures as required by the Guide and NRS 116.31152; and

(II) An accompanying schedule which compares details of the actual expenses of the association to the budgeted amounts of the association.

(b) Be prepared and completed not later than 210 days after the end of the fiscal year for the association.

(c) Be made available to the Division not later than 30 days after requested by the Division.

(d) Include on the annual registration form with the Division the following information:

(1) The amount of budgeted revenues;

(2) Whether the financial statements were audited or reviewed and, if so, the date on which the audit or review of the financial statements was completed; and

(3) Whether the audit opinion is qualified or unqualified or whether the review report is modified or unmodifed.

2.  An auditor performing the annual audit for an association must:

(a) Be a certified public accountant licensed pursuant to chapter 628 of NRS.

(b) Be independent of the association as set forth in Section 100, “Independence, Integrity, and Objectivity,” of the AICPA Code of Professional Conduct.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

REVISER’S NOTE.

The regulation of the Commission for Common-Interest Communities filed with the Secretary of State on September 18, 2006 (LCB File No. R205-05), the source of this section, contains the following provisions not included in NAC:

“1.  If an association has not previously caused the financial statements of the association to be audited on an annual basis, the association must cause the financial statements of the association to be audited pursuant to NRS 116.31144 for the first fiscal year that begins on or after July 1, 2006.

2.  If an association which is required to cause the financial statements of the association to be audited at lease once every 4 years pursuant to NRS 116.31144 has caused the financial statements of the association to be audited for the fiscal year immediately preceding the first fiscal year that begins on or after July 1, 2006, the association is not required to cause the financial statements of the association to be audited for another 4 years.”

NAC 116.459  Inclusion of additional funds in financial statements. (NRS 116.31142, 116.31144, 116.615)  The financial statements of an association described in NAC 116.451, 116.453 and 116.457 may provide for such other funds as the association deems appropriate to report the transactions of separate business activities, special assessments and contingency or other restricted funds.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.461  Review of financial statements; qualifications of auditor. (NRS 116.31144, 116.615)

1.  The review of the financial statements of an association must be performed in accordance with the AICPA’s Statement on Standards for Accounting and Review Services as referenced in the Guide. The financial statements must include a full presentation of accrual-basis accounting prepared pursuant to subsection 1 of NAC 116.457. The supplementary information may be compiled or reviewed.

2.  An auditor performing the annual review for an association must:

(a) Be a certified public accountant licensed pursuant to chapter 628 of NRS.

(b) Be independent of the association as set forth in Section 100, “Independence, Integrity, and Objectivity,” of the AICPA Code of Professional Conduct.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.465  Fee for preparation of certificate for resale of unit. (NRS 116.4109, 116.615)

1.  Except as otherwise provided in subsection 2, an association may not charge more than $160 for preparing the certificate furnished pursuant to NRS 116.4109.

2.  If a unit’s owner or his authorized agent requests that the certificate be furnished sooner than 3 business days after the date of the request, the association may charge a fee not to exceed $125 to expedite the preparation of the certificate.

3.  Nothing in this section is to be construed to prohibit an association from requiring a fee for any other copy, form or service.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

RECEIPT OF GIFTS, INCENTIVES, GRATUITIES, REWARDS OR OTHER ITEMS OF VALUE

NAC 116.480  Restriction on and statements by members of executive boards and officers of associations. (NRS 116.31185, 116.615)

1.  No member of an executive board or officer of an association shall receive, in the aggregate, any gift, incentive, gratuity, reward or other item of value pursuant to subsection 2 of NRS 116.31185 in any calendar year which exceeds the sum of $100.

2.  On or before the annual distribution to each unit’s owner of the budgets of the association pursuant to subsection 1 of NRS 116.31151, each member of an executive board and officer of an association shall deliver to the executive board for inclusion in the annual distribution of the budgets a statement of any gifts, incentives, gratuities, rewards or other items of value which exceed $15 received pursuant to subsection 2 of NRS 116.31185.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.482  Restriction on and statements by community managers and employees of community managers. (NRS 116.31185, 116.615)

1.  No community manager or employee of the community manager shall receive, in the aggregate, any gift, incentive, gratuity, reward or other item of value pursuant to subsection 2 of NRS 116.31185 in any calendar year which exceeds the sum of $500.

2.  On or before the date of renewal of a license for a community manager, each community manager shall disclose to the Division, in the renewal form, a statement of any gifts, incentives, gratuities, rewards or other items of value which exceed $15 received pursuant to subsection 2 of NRS 116.31185 during each of the years following the last renewal.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.484  Attendance of or participation in approved class. (NRS 116.31185, 116.615)

1.  As used in NRS 116.31185, the term “gifts, incentives, gratuities, rewards or other items of value” does not include:

(a) Any prepaid tuition for an approved class within the State for members of an executive board, officers of an association, community managers or employees of the community manager;

(b) The cost or value of an approved class that is offered free of charge; and

(c) The cost or value of any breakfast, lunch, snack or hot or cold nonalcoholic beverage provided at an approved class or during the breaks of an approved class.

2.  A member of the executive board or an officer of the association who attends or participates in an approved class must disclose his attendance or participation in the approved class to the executive board at the next meeting of the executive board after the date of the approved class.

3.  As used in this section, “approved class” means a course which has been approved pursuant to the provisions of this chapter and which at all times satisfies the requirements of this chapter.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

NAC 116.486  Compliance with statutory prohibition. (NRS 116.31185, 116.615)  Nothing in NAC 116.480, 116.482 and 116.484 is to be construed as permitting a member of an executive board, an officer of an association, a community manager or an employee of the community manager to solicit or accept any form of compensation, gratuity or other remuneration in violation of the provisions of subsection 1 of NRS 116.31185.

(Added to NAC by Comm’n for Common-Interest Communities by R205-05, eff. 9-18-2006)

ADMINISTRATION AND ENFORCEMENT

General Provisions

NAC 116.500  Public inspection of records maintained by Division. (NRS 116.615)  Records kept in the office of the Division under authority of this chapter are open to public inspection in the same manner as records are available for inspection pursuant to chapters 645 of NRS and NAC, except that the Division may refuse to make public, unless ordered to do so by a court:

1.  Examinations;

2.  Files compiled by the Division while investigating possible violations of this chapter or chapter 116 of NRS;

3.  The criminal and financial records of community managers and of applicants for a certificate;

4.  Social security numbers;

5.  The home addresses and telephone numbers of community managers, unless such information is used for business purposes by a community manager; and

6.  The home addresses and telephone numbers of members of the executive boards.

(Added to NAC by Real Estate Comm’n by R136-99, eff. 4-3-2000; A by Comm’n for Common-Interest Communities by R129-04, 4-14-2005)—(Substituted in revision for NAC 116.390)

NAC 116.505  Fees of Division. (NRS 116.615, 116.665, 116A.200, 116A.410)  The Division shall charge and collect the following fees:

For application for a certificate …………………………………………………………. $175

For issuance of a certificate ………………………………………………………………….. 25

For examination of an applicant for a certificate …………………………………… 100

For biennial renewal of a certificate ……………………………………………………. 100

For late renewal of a certificate …………………………………………………………….. 50

For reinstatement of an inactive certificate ……………………………………………. 20

For issuance of a duplicate certificate ……………………………………………………. 20

For change of name or address on a certificate ……………………………………….. 20

For change of status as a community manager, provisional community manager or supervising community manager on a certificate……………….. 20

For change of association with a supervising community manager …………… 20

For approval of courses to meet the requirements for original certification 100

For approval of a course for continuing education ………………………………… 100

For renewal of an approval of a course for continuing education ……………… 50

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.510  Check or draft returned to Division for lack of payment. (NRS 116.615)

1.  If a person submits a check or draft to the Division to obtain a certificate, approval, accreditation or other type of authorization to engage in an activity for which authorization is required pursuant to this chapter or chapter 116 of NRS, and the check or draft is returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft:

(a) The certificate, approval, accreditation or other type of authorization obtained by the person from the Division is involuntarily inactivated; or

(b) If the person has not obtained the certificate, approval, accreditation or other type of authorization from the Division, the Division may refuse to issue or reinstate the authorization.

2.  In accordance with NRS 353C.115 and NAC 353C.400, the Division shall charge a person, for each check or draft returned to the Division because the person had insufficient money or credit with the drawee to pay the check or draft or because the person stopped payment on the check or draft, a fee of $25 or such other amount as may subsequently be required by NRS 353C.115 and NAC 353C.400.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.515  Fee for background investigation. (NRS 116.615, 116A.200, 116A.410)  The fee for conducting a background investigation must not exceed the administrative costs charged to the Division. All payments for such investigations must be in the form of a cashier’s check or money order made payable to the agency conducting the investigation.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.520  Subsidization of proceedings for binding arbitration. (NRS 116.615, 116.670)

1.  The Division may subsidize proceedings for binding arbitration conducted pursuant to NRS 38.300 to 38.360, inclusive:

(a) For the parties that agree to binding arbitration; and

(b) To the extent that funds are available in the Account for Common-Interest Communities and Condominium Hotels in the State General Fund for that purpose.

2.  A party who wishes to have a proceeding for arbitration subsidized must:

(a) Submit an application to the Division on a form prescribed by the Division;

(b) File a claim for binding arbitration within 1 year after the date of discovery of the alleged violation; and

(c) If the applicant is an association, be registered and in good standing with the Office of the Ombudsman for Owners in Common-Interest Communities and Condominium Hotels.

3.  A unit’s owner is eligible to have one proceeding for arbitration subsidized per fiscal year for each unit that he owns.

4.  An association is eligible to have one proceeding for arbitration subsidized per fiscal year against the same unit’s owner for each unit that he owns.

5.  The funds used to subsidize a proceeding for arbitration pursuant to this section:

(a) Must not be applied to the fee required when filing a written claim pursuant to NRS 38.320 or any attorneys’ costs or fees associated with the claim; and

(b) Must be the lesser of 50 percent of the fees owed by a party to the arbitrator or $500.

6.  The Division shall provide notice to an arbitrator that a proceeding for arbitration may be subsidized by forwarding to the arbitrator a copy of the application received pursuant to subsection 2.

7.  If an application for subsidy is approved by the Division, the arbitrator shall, within 10 business days after his final decision, submit to the Division:

(a) On a form prescribed by the Division, a request for payment of the cost of arbitration; and

(b) A copy of the final decision.

8.  The Division shall pay the cost of arbitration pursuant to this section at the time the Division receives a copy of the final decision from the arbitrator and issues a certificate pursuant to NAC 38.350.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.525  Duties of Ombudsman for Owners in Common-Interest Communities and Condominium Hotels: “Annual assessment” interpreted. (NRS 116.615, 116.625)  As used in NRS 116.625, “annual assessment” means both the per unit assessments and the total budget revenues for the association.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

Administrative Proceedings

NAC 116.550  Investigation and audit of financial accounts of association; remedial and disciplinary action. (NRS 116.615)

1.  The Division may investigate and audit all financial accounts related to an association if the Division has reasonable cause to believe that the accounts or records of the association have not been properly maintained and the Division:

(a) Has reasonable cause to believe or has received a credible complaint that the association is insolvent or is in any financial condition or has engaged in any financial practice which creates a substantial risk of insolvency; or

(b) Determines that the investigation and audit are reasonably necessary to assist the Division in administering or enforcing any other provision of this chapter, chapter 116 of NRS or any other statute that the Division is charged with administering or enforcing.

2.  The Commission may, after notice and hearing, take action pursuant to NRS 116.785 if the Division finds that a person has committed a violation of this chapter or chapter 116 of NRS.

3.  As used in this section, “insolvent” or “insolvency” means a condition in which an association is unable to meet its, or a community manager is unable to meet his, liabilities as those liabilities become due in the regular course of the association’s or community manager’s business and which creates a substantial risk of harm to the association.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.553  Hearing panels: Powers; qualifications of independent hearing officers. (NRS 116.615, 116.675)

1.  A hearing panel appointed by the Commission has the power of the Commission to conduct hearings and other proceedings, determine violations, impose fines and penalties and take other disciplinary action authorized by the provisions of this chapter or chapter 116 of NRS.

2.  An independent hearing officer appointed to a hearing panel must be a licensed member, in good standing, of the State Bar of Nevada.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.555  Informality of proceedings; rules of evidence. (NRS 116.615, 116.675)

1.  In conducting any investigation, inquiry or hearing, the Commission and its members, each hearing panel and its members, and the employees of the Division are not bound by the technical rules of evidence, and any informality in a proceeding or in the manner of taking testimony does not invalidate any order, decision, rule or regulation made, approved or confirmed by the Commission or a hearing panel. The rules of evidence of courts of this State will be followed generally but may be relaxed at the discretion of the Commission or a hearing panel if deviation from the technical rules of evidence will aid in determining the facts.

2.  Any evidence offered at a hearing must be material and relevant to the issues of the hearing.

3.  The Commission or a hearing panel may exclude inadmissible, incompetent, repetitious or irrelevant evidence or order that presentation of that evidence be discontinued.

4.  A party who objects to the introduction of evidence shall briefly state the grounds of the objection at the time the evidence is offered. The party who offers the evidence may present a rebuttal argument to the objection.

5.  If an objection is made to the admissibility of evidence, the Commission or a hearing panel may:

(a) Note the objection and admit the evidence;

(b) Sustain the objection and refuse to admit the evidence; or

(c) Receive the evidence subject to a subsequent ruling by the Commission or a hearing panel.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.557  Prehearing conferences. (NRS 116.615, 116.675)

1.  The Commission or a hearing panel may, upon its own motion or a motion made by a party of record, hold a prehearing conference to accomplish one or more of the following purposes:

(a) Formulate or simplify the issues involved in the hearing.

(b) Obtain admissions of fact or any stipulation of the parties.

(c) Arrange for the exchange of proposed exhibits or prepared expert testimony.

(d) Identify the witnesses and the subject matter of their expected testimony and limit the number of witnesses, if necessary.

(e) Rule on any pending prehearing motions or matters.

(f) Establish a schedule for the completion of discovery.

(g) Establish any other procedure that may expedite the orderly conduct and disposition of the proceedings or settlements thereof.

2.  Notice of any prehearing conference must be provided to all parties of record. Unless otherwise ordered for good cause shown, the failure of a party of record to attend a prehearing conference constitutes a waiver of any objection to the agreements reached or rulings made at the conference.

3.  The action taken and the agreements made at a prehearing conference:

(a) Must be made a part of the record.

(b) Control the course of subsequent proceedings unless modified at the hearing by the Commission or hearing panel.

(c) Are binding upon all parties of record and persons who subsequently become parties of record.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.560  Motions. (NRS 116.615, 116.675)

1.  All motions, unless made during a hearing, must be in writing.

2.  A written motion must be served on the opposing party and the Commission or a hearing panel at least 10 working days before the time set for the hearing on the motion.

3.  An opposing party may file a written response to a motion within 7 working days after the receipt of the motion by serving the written response on all parties and the Commission or a hearing panel, except that a written response may be filed less than 3 working days before the time set for the hearing on the motion only with the permission of the Commission or a hearing panel upon good cause shown.

4.  The Commission or a hearing panel may require oral argument or the submission of additional information or evidence to decide the motion.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.565  Amendment and withdrawal of complaints; continuances. (NRS 116.615, 116.675)

1.  A complaint may be amended at any time.

2.  The Commission or a hearing panel may grant a continuance if the amendment materially alters the complaint or a respondent demonstrates an inability to prepare for the case in a timely manner.

3.  A complaint may be withdrawn at any time before the hearing begins.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.570  Complaint or disciplinary hearing concerning provisional community manager. (NRS 116.615, 116.675)

1.  The Division shall provide a copy of any complaint filed against, or a disciplinary hearing or other proceeding commenced against, a provisional community manager to the supervising community manager with whom the provisional community manager is associated.

2.  The supervising community manager with whom the provisional community manager is associated shall attend any disciplinary hearing before the Commission or a hearing panel concerning that provisional community manager.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.575  Responsibilities of respondent. (NRS 116.615, 116.675)

1.  Not less than 5 working days before a hearing before the Commission or a hearing panel, the respondent must provide to the Division:

(a) A copy of all documents that are reasonably available to the respondent which the respondent reasonably anticipates will be used in support of his position; and

(b) A list of witnesses whom the respondent intends to call at the time of the hearing, which must include for each witness:

(1) The name of the witness;

(2) The company for whom the witness works and the title of the witness; and

(3) A brief summary of the expected testimony of the witness.

2.  The respondent shall promptly supplement and update any documents and lists provided to the Division pursuant to this section.

3.  The respondent shall provide, at the time of the hearing, 10 copies of each document he wishes to have admitted into evidence at the hearing.

4.  If the respondent fails to provide any document required to be provided by the provisions of this section, the Commission or a hearing panel may exclude the document.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.580  Failure of party to appear. (NRS 116.615, 116.675)  If a party fails to appear at a hearing scheduled by the Commission or a hearing panel and a continuance has not been requested or granted, upon an offer of proof by the other party that the absent party was given proper notice and upon a determination by the Commission or a hearing panel that proper notice was given, the Commission or a hearing panel may proceed to consider the case without the participation of the absent party and may dispose of the matter on the basis of the evidence before it. If a party fails to appear at the hearing or fails to reply to the notice, the charges specified in the complaint may be considered as true.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.585  Procedure for hearings; date of decision. (NRS 116.615, 116.675)

1.  The presiding officer of a hearing shall:

(a) Ascertain whether all persons commanded to appear under subpoena are present and whether all documents, books, records and other evidence under subpoena are present in the hearing room.

(b) Administer the oath to the reporter as follows:

Do you solemnly swear or affirm that you will report this hearing to the best of your stenographic ability?

(c) Administer the oath to all persons whose testimony will be taken:

Do you and each of you solemnly swear or affirm to tell the truth and nothing but the truth in these proceedings?

(d) Ascertain whether either party wishes to have a witness excluded from the hearing except during the testimony of the witness. A witness may be excluded upon the motion of the Commission or a hearing panel or upon the motion of either party. If a witness is excluded, he will be instructed not to discuss the case during the pendency of the proceeding. The respondent will be allowed to remain present at the hearing. The Division may designate a person who is a member of the staff of the Division and who may also be a witness to act as its representative. Such a representative will be allowed to remain present at the hearing.

(e) Ascertain whether a copy of the complaint or decision to deny has been filed and whether an answer has been filed as part of the record in the proceedings.

(f) Hear any preliminary motions, stipulations or orders upon which the parties agree and address any administrative details.

(g) Request the Division to proceed with the presentation of its case.

2.  The Division may not submit any evidence to the Commission or a hearing panel before the hearing except for the complaint and answer.

3.  The respondent may cross-examine witnesses in the order that the Division presents them.

4.  Witnesses or counsel may be questioned by the members of the Commission or a hearing panel at any time during the proceeding.

5.  Evidence which is to be introduced:

(a) Must first be marked for identification; and

(b) May be received by the Commission or a hearing panel at any point during the proceeding.

6.  When the Division has completed its presentation, the presiding officer shall request the respondent to proceed with the introduction of evidence and calling of witnesses on his behalf.

7.  The Division may cross-examine witnesses in the order that the respondent presents them.

8.  When the respondent has completed his presentation, the Division may call any rebuttal witnesses.

9.  When all testimony for the Division and respondent has been given and all evidence submitted, the presiding officer may request the Division and the respondent to summarize their presentations.

10.  The Commission or a hearing panel may waive any provision of this section if necessary to expedite or ensure the fairness of the hearing.

11.  The date of decision is the date the written decision is signed by a commissioner or a member of a hearing panel or filed with the Commission, whichever occurs later.

12.  In the absence of the Chairman of the Commission, any matter which must be acted upon may be submitted to the Vice Chairman or, if the Vice Chairman is unavailable, to the Secretary.

13.  Upon the presentation of evidence that the respondent received notice of the hearing and has not filed an answer within the time prescribed pursuant to NRS 116.770, his default may be entered and a decision may be issued based upon the allegations of the complaint.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.586  Recess of hearing for conference. (NRS 116.615, 116.675)  In any hearing, the Commission or hearing panel may recess the hearing for a conference in order to discuss matters relating to the testimony about to be given by a witness or for any other purpose that may expedite the orderly conduct and disposition of the proceedings or settlements thereof. The Commission or hearing panel will state on the record the results of such a conference.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.588  Preparation and dissemination of final decision after hearing. (NRS 116.615, 116.675)  After a hearing, the Commission or hearing panel will, within 30 days:

1.  Prepare findings of fact, conclusions of law and a final decision on the issues presented at the hearing; and

2.  Provide a copy of the findings of fact, conclusions of law and final decision to the Division, which will then serve the parties of record and the Commission.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.590  Voluntary surrender of certificate in lieu of disciplinary action. (NRS 116.615, 116.675)  The Commission or a hearing panel may accept the voluntary surrender of a certificate in lieu of imposing any other disciplinary action set forth in this chapter or chapter 116 of NRS.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.595  Reporting of disciplinary action or denial of certificate. (NRS 116.615, 116.675)  The Division, Commission or a hearing panel may report any disciplinary action it takes against a holder of a certificate or any denial of an application for a certificate to:

1.  An association managed by the holder of a certificate;

2.  Any national repository which records disciplinary actions taken against community managers;

3.  Any agency of another jurisdiction that regulates the practice of management of a common-interest community; and

4.  Any other agency or board of the State of Nevada.

(Added to NAC by Comm’n for Common-Interest Communities by R129-04, eff. 4-14-2005)

NAC 116.600  Appeal of final order of hearing panel; filing of briefs. (NRS 116.615, 116.675)

1.  Pursuant to NRS 116.675, a final order of a hearing panel may be appealed and a review hearing held by the Commission. If a final order of a hearing panel is appealed, the order is stayed until the Commission issues its ruling, order or decision after the review hearing.

2.  A written notice of appeal filed pursuant to NRS 116.675 must be accompanied by an appellant’s brief which must describe the basis for the appeal, cite any supporting authorities and designate any part of the record which was before the hearing panel and is relevant to the appeal.

3.  A respondent may file a respondent’s brief within 20 days after service of the appellant’s brief.

4.  An appellant may then file a reply brief within 12 days after service of a respondent’s brief. The reply brief may only respond to issues raised in a respondent’s brief. Any issues raised for the first time which are contained in the reply brief will not be considered by the Commission.

5.  The Division may file an amicus brief which describes the Division’s position on any issue raised by a final order of a hearing panel. The Division’s brief must be filed within 20 days after the filing of the appellant’s brief.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.605  Review hearings: Setting; notice. (NRS 116.615, 116.675)

1.  After the date for the filing of a reply brief has passed, the Commission will set the matter for a review hearing to be conducted as soon as practicable.

2.  The review hearing must be held at such time and place as the Commission prescribes. At least 15 days before the date set for the review hearing, the Commission will notify in writing each party of record of the date. Written notice of the review hearing may be served by delivery personally to each party or by mailing the notice by certified mail to the last known address of each party.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.610  Review hearings: Oral argument. (NRS 116.615, 116.675)

1.  The Commission may, in the written notice described in NAC 116.605, provide for oral argument at the review hearing. The written notice must state whether the oral argument is limited to a particular issue or inquiry.

2.  Unless extended by the Commission, an oral argument will be limited to 10 minutes.

3.  The Commission may allow the Division to participate as an amicus party at oral argument.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.615  Review hearings: Issuance of written decision. (NRS 116.615, 116.675)

1.  The Commission will render a written decision on any appeal within 30 days after the review hearing and will notify the parties to the proceedings, in writing, of its ruling, order or decision within 15 days after it is made.

2.  The Commission may affirm, reverse or modify a decision of the hearing panel.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.620  Review of final order of hearing panel not appealed by party. (NRS 116.615, 116.675)

1.  If a final order of a hearing panel is not appealed to the Commission by a party and if:

(a) The Chairman determines that the Commission should review the final order; or

(b) A member of the Commission makes a written or oral request to the Chairman that the Commission review the final order,

Ê the Chairman of the Commission shall, not later than 7 days after the date that a final order may be appealed by a party pursuant to NRS 116.675, direct the Division to provide written notice to all parties that the Commission will review the final order at the next meeting of the Commission.

2.  Any final order by a hearing panel which is under review by the Commission pursuant to this section is stayed until the Commission issues its ruling, order or decision.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.625  Payment of costs for transcript of hearing. (NRS 116.615, 116.675)

1.  Except as otherwise provided in this section, a party which seeks a transcript of its hearing must pay the reasonable costs of transcription.

2.  If the Commission determines that a transcript is reasonably necessary for a party for a review hearing, the Commission will pay the costs of transcription.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.630  Request for hearing prohibited after initiation of civil action or submission for mediation or arbitration. (NRS 116.615, 116.675)  A party may not request a hearing before the Commission or a hearing panel if a civil action based upon the same claim has already been initiated in any court in this State or has already been submitted to mediation or arbitration pursuant to the provisions of NRS 38.300 to 38.360, inclusive.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)

NAC 116.635  Request for hearing prohibited for improper purpose. (NRS 116.615, 116.675)  A party shall not request a review hearing for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation.

(Added to NAC by Comm’n for Common-Interest Communities by R142-06, eff. 12-7-2006)