Two more states adjourned this week, so check out the snapshot of their sessions below. Now more than half of the 50 states are in interim, and several more states are expected to adjourn by the end of June, including: Delaware, Louisiana, Maine, New York, Pennsylvania. You can see the legislation we are tracking the states by clicking here.

Nevada

Like Texas, the Nevada Legislature convenes every other year. It was a quiet session compared to previous – that was until the end. Word spread of a controversial draft amendment that would permit owners to sue associations who foreclosed on their home. The bill initially required associations to take photographs of violations for enforcement purposes. The bill was amended slightly to provide for additional procedures, but the Senate did not concur in the amendment. That sent the bill to a conference committee. Once in conference committee, representatives and senators would review the bill without public input. Fortunately, our rock star lobbyist, Garrett Gordon, and Legislative Action Committee, led by Norman Rosensteel and Donna Zanetti, learned that an Assemblymember planned to introduce the foreclosure amendment.  The LAC acted quickly and sent a call to action to our Nevada members sent nearly 400 messages to the six conferees. The Assemblymember agreed to withdraw the amendment. Great work from the lobbyist and the LAC and a special “thank you” to all those who acted – not all heroes wear capes.

Here is a look at what passed in Nevada:

Foreclosure of property owned by service members – SB 33 provides an association is generally prohibited from initiating the foreclosure of a lien by sale during any period the service member is on active duty or deployment or for one year immediately following the end of such active duty or deployment. The bill went into effect May 29.

Governance – SB 195 provides for multiple changes relating to elections, foreclosure, meetings to statute. Some provisions of the law include:

  • Authorizes the executive board to fill any vacancy in its membership until the earlier of the unexpired portion of any term or the next regularly scheduled election of executive board members.
  • Requires the ballots for the election of members of the executive board to be counted at the annual meeting of members of the association.
  • Provides that the foreclosure or involuntary sale transfers the special declarant’s rights unless the purchaser otherwise elects.
  • Exempts executive sessions of the board from 10-day notice requirement and, depending on the purpose for which an executive session is being held, requires that notice of the executive session: (1) be given only to the person who may be subject to a hearing scheduled for that meeting; or (2) be posted within the common elements of the association and provided electronically to all units’ owners who have provided an electronic mail address.
  • Requires an association to maintain directors and officers’ insurance in a minimum aggregate amount of not less than $1,000,000.
  • Requires certain additional disclosures to be included in a public offering statement that concern: (1) the expectations a person should have in purchasing a timeshare; and (2) the resale of a timeshare.

The measure will go into effect October 1.

Maintenance – Effective October 1, SB 239 provides:

  • Additional circumstances under which a unit owners’ association may, without liability for trespass, enter the grounds or interior of a unit that is in a building that contains units divided by horizontal boundaries or vertical boundaries comprised of common walls between units.
  • Provides that if a unit is vacant and not in the foreclosure process, the association or its employees, agents or community manager are not authorized to maintain the exterior of the unit or abate a public nuisance unless the association notifies each holder of a recorded security interest of its intent to maintain the exterior of the unit or abate a public nuisance.

Electronic delivery – SB 255 provides for the delivery of a copy of a change to the governing documents of an association, notice of cancellation, or information statement by electronic means.

Violations – SB 258 is the bill referred to in the introduction that nearly became a bill that would cut off associations’ priority lien and ability to remain solvent. As passed, the bill authorizes an executive board to send a written notice to cure an alleged violation of a provision of the governing documents to an owner and, if different, a person responsible for curing the alleged violation, without the imposition of a fine. The bill has yet to be sent to Governor Brian Sandoval (R).

Foreclosure proceeds from tax sale – SB 281 authorizes the following persons to receive a distribution of excess proceeds from such a sale: (1) a person who has a lien on the property for certain waste management fees or charges; (2) the unit-owners’ association of a common-interest community if the association has caused to be recorded a notice of default and election to sell a property to satisfy its lien on the property and that notice has not been rescinded; and (3) the unit-owners’ association of a condominium hotel or an owner of a unit of a condominium hotel if the association or owner has caused to be recorded a notice of default and election to sell a property to satisfy the association’s or owner’s lien on the property and that notice has not been rescinded. The measure will go into effect July 1.

Connecticut

The LAC monitored at least one dozen pieces of legislation that would impact associations, but none passed. The LAC hoped that some corrections would be made to the manager licensing regime, but the specific language was not drafted in legislation, and the bill that would modify the law did not make it out of committee. All legislation must be reintroduced in 2018.

For more information on what is happening or happened in your state in the 2017 legislative session, click here.

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Matthew Green

Director, State Affairs

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