Senate Bill 254 (written and sponsored by certain CAI and Common Interest Community Commission members) has called for (among other things) major increases in fines and punishments for homeowners who are determined by the State authorities to have filed false or frivolous complaints. 

But, SB254 failed to specify equal fines and punishments for HOA bully boards, attorneys and other CAI members who could also be found guilty of such things as false and frivolous RESPONSES to valid homeowner complaints.

Sun City Anthem Member and AnthemVOICE Founding Member, Tim Stebbins, notified the Nevada Assembly Judicial Committee on May 6, 2011 that Senate Bill 254 that had previously been passed by the Senate and heavily promoted by leading CAI leaders (HOA business association) was clearly UNCONSTITUTIONAL. 

Mr. Stebbins pointed out that SB254 violated the US Constitution’s XIV Amendment requiring “equal protection” under the laws.   He also emphasized that SB254 must be amended to ensure there are EQUAL consequences under the NV Statutes when individuals on EITHER side of HOA disputes refused to participate in good faith in State-sponsored mediation sessions. 

Although Mr. Stebbins had previously made his statements about the many serious flaws in SB254 during March Senate Judiciary Committee Meetings, his comments had been totally ignored by the Senate majority who voted in favor of the bill.   But, Stebbins’ similar statements given to the Assembly Judiciary Committee seemed to finally get some serious attention. 

Clearly, some of the lawmakers and involved lawyers from the majority party were finally beginning to understand that a valid constitutional challenge to the proposed changes to NRS116 would be possible, and that something had to be done.

Senate Judiciary Committee Sponsor of SB254, Senator Allison Copening (employee of Del Webb/Pulte), and Common Interest Communities  Commission Chairman/Attorney Michael Buckley (Jones-Vargas Law Firm Stockholder), were forced to publicly admit that Mr. Stebbins was CORRECT, and that the bill’s language would HAVE to be changed to comply with Constitutional provisions. 

But, without those word changes immediately available for consideration by the Assembly, how could SB254 be voted upon?  Such changes would significantly change the nature, purpose and intent of the proposed law, and must be considered by both the Senate and Assembly.

An excerpt of Mr. Stebbins’ testimony follows.  His entire statement about SB254 is attached below.

“There seems to be major emphasis on punishments for a party filing a bad faith, false, fraudulent or frivolous claim.  Fair enough.  But there are almost no penalties for any party filing bad faith, false, fraudulent or frivolous response to the claim.

This seems to indicate an extreme bias on the part of who ever authored those sections of the bill.

It has been my experience the response to a claim is more likely to contain bad faith, false, fraudulent or frivolous statements than the claim itself.

If my observations are valid, the authors of such language should be ashamed of themselves.

The XIV Amendment to the US Constitution guarantees equal treatment for all parties involved. All parties are guaranteed equal protection under the law.  The current wording in several sections of SB 254 does not provide that protection.”

Tim Stebbins’ Testimony About Senate Bill 254:

 [1] Stebbins Comments on Constitutional Flaws in SB254