[Rev. 2/8/2019 9:28:10 AM]
κ2005 Statutes of Nevada, Page 1715 (CHAPTER 414, AB 384)κ
(b) On and after October 1, 2005, comply with all other provisions of sections 2 to 74, inclusive, of this act, except that the person does not have to renew his certificate of registration or license until the date on which the person would have been required to renew his certificate of registration or license pursuant to chapter 604 or 675 of NRS.
3. A person described in subsection 1 is not required to comply with the following provisions of sections 2 to 74, inclusive, of this act sooner than October 1, 2005, or the date of any extension granted by the Commissioner of Financial Institutions pursuant to subsection 4:
(a) Any provision requiring the use of the Spanish language; and
(b) Any provision requiring changes to or replacement of existing computer software or major modifications to existing business processes, as determined by the Commissioner.
4. If the person is unable to comply with any provision described in paragraph (a) or (b) of subsection 3 by October 1, 2005, the person may request an extension from the Commissioner. The Commissioner may grant such an extension, to a date not later than January 1, 2006, if the person establishes that compliance by October 1, 2005:
(a) Is not economically feasible;
(b) Is prevented by factors beyond the control of the person; or
(c) Is prevented by any other factors that the Commissioner deems to be an appropriate justification for an extension.
Sec. 84. This act becomes effective on July 1, 2005.
________
Senate Bill No. 153Senators Hardy, Schneider, Townsend, Nolan, Beers, Amodei, Coffin, Lee, McGinness and Titus
CHAPTER 415
AN ACT relating to common-interest communities; revising provisions relating to the payment of fines by units owners in common-interest communities; prohibiting community managers from being paid compensation, fees or other remuneration in certain ways; revising the definition of collection agency to include community managers under certain circumstances and to exclude unit-owners associations and other persons under certain circumstances; providing penalties; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 116.31145 is hereby amended to read as follows:
116.31145 [An] If an association has imposed a fine against a units owner or a tenant or guest of a units owner pursuant to NRS 116.31031 for violations of the governing documents of the association, the association [may] :
1. Shall, in the books and records of the association, account for the fine separately from any assessment, fee or other charge; and
κ2005 Statutes of Nevada, Page 1716 (CHAPTER 415, SB 153)κ
2. Shall not apply , in whole or in part, any payment made by the units owner for any assessment, fee or other charge [that is paid by a] toward the payment of the outstanding balance of the fine or any costs of collecting the fine, unless the units owner [toward a fine imposed by] provides written authorization which directs the association [against] to apply the payment made by the units owner [.] in such a manner.
Sec. 2. NRS 116.31185 is hereby amended to read as follows:
116.31185 1. A member of an executive board, an officer of an association or a community manager shall not solicit or accept any form of compensation, gratuity or other remuneration that:
[1.] (a) Would improperly influence or would appear to a reasonable person to improperly influence the decisions made by those persons; or
[2.] (b) Would result or would appear to a reasonable person to result in a conflict of interest for those persons.
2. In addition to the limitations set forth in subsection 1, a community manager shall not solicit or accept any form of compensation, fee or other remuneration that is based, in whole or in part, on:
(a) The number or amount of fines imposed against or collected from units owners or tenants or guests of units owners pursuant to NRS 116.31031 for violations of the governing documents of the association; or
(b) Any percentage or proportion of those fines.
3. The provisions of this section do not prohibit a community manager from being paid compensation, a fee or other remuneration under the terms of a contract between the community manager and an association if:
(a) The scope of the respective rights, duties and obligations of the parties under the contract comply with the standards of practice for community managers adopted by the Commission pursuant to NRS 116.700;
(b) The compensation, fee or other remuneration is being paid to the community manager for providing management of the common-interest community; and
(c) The compensation, fee or other remuneration is not structured in a way that would violate the provisions of subsection 1 or 2.
Sec. 3. NRS 649.020 is hereby amended to read as follows:
649.020 1. Collection agency means [and includes] all persons engaging, directly or indirectly, and as a primary or a secondary object, business or pursuit, in the collection of or in soliciting or obtaining in any manner the payment of a claim owed or due or asserted to be owed or due to another.
2. Collection agency does not include any of the following unless they are conducting collection agencies:
(a) Individuals regularly employed on a regular wage or salary, in the capacity of credit men or in other similar capacity upon the staff of employees of any person not engaged in the business of a collection agency or making or attempting to make collections as an incident to the usual practices of their primary business or profession.
(b) Banks.
(c) Nonprofit cooperative associations.
(d) Unit-owners associations and the board members, officers, employees and units owners of those associations when acting under the authority of and in accordance with chapter 116 of NRS and the governing documents of the association, except for those community managers included within the term collection agency pursuant to subsection 3.
κ2005 Statutes of Nevada, Page 1717 (CHAPTER 415, SB 153)κ
documents of the association, except for those community managers included within the term collection agency pursuant to subsection 3.
(e) Abstract companies doing an escrow business.
[(e)] (f) Duly licensed real estate agents [.
(f)] , except for those real estate agents who are community managers included within the term collection agency pursuant to subsection 3.
(g) Attorneys and counselors at law licensed to practice in this State, so long as they are retained by their clients to collect or to solicit or obtain payment of such clients claims in the usual course of the practice of their profession.
3. Collection agency:
(a) Includes a community manager while engaged in the management of a common-interest community if the community manager, or any employee, agent or affiliate of the community manager, performs or offers to perform any act associated with the foreclosure of a lien pursuant to NRS 116.31162 to 116.31168, inclusive; and
(b) Does not include any other community manager while engaged in the management of a common-interest community.
4. As used in this section:
(a) Community manager has the meaning ascribed to it in NRS 116.023.
(b) Unit-owners association has the meaning ascribed to it in NRS 116.011.
Sec. 4. This act becomes effective upon passage and approval.
________
Senate Bill No. 181Committee on Taxation
CHAPTER 416
AN ACT relating to taxation; authorizing certain counties, upon approval of the voters, to impose additional taxes on certain motor vehicle fuels; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 373.065 is hereby amended to read as follows:
373.065 1. [In] Except as otherwise provided in this section, in a county whose population is [100,000 or more but] less than 400,000:
(a) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel, except aviation fuel, sold in the county in an amount equal to the [sum] product obtained by multiplying the amount of the tax imposed pursuant to NRS 365.180 by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years; and
(2) An annual increase in the tax imposed pursuant to subparagraph (1), on the first day of each fiscal year following the fiscal year in which that tax becomes effective, in an amount equal to the sum of the tax imposed pursuant to NRS 365.180 and the tax imposed pursuant to subparagraph (1) during the preceding fiscal year, multiplied by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years.
κ2005 Statutes of Nevada, Page 1718 (CHAPTER 416, SB 181)κ
pursuant to NRS 365.180 and the tax imposed pursuant to subparagraph (1) during the preceding fiscal year, multiplied by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years.
(b) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel, except aviation fuel, sold in the county in an amount equal to the [sum] product obtained by multiplying the amount of the tax imposed pursuant to NRS 365.190 by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years; and
(2) An annual increase in the tax imposed pursuant to subparagraph (1), on the first day of each fiscal year following the fiscal year in which that tax becomes effective, in an amount equal to the sum of the tax imposed pursuant to NRS 365.190 and the tax imposed pursuant to subparagraph (1) during the preceding fiscal year, multiplied by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years.
(c) The board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel, except aviation fuel, sold in the county in an amount equal to the [sum] product obtained by multiplying the amount of the tax imposed pursuant to NRS 365.192 by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years; and
(2) An annual increase in the tax imposed pursuant to subparagraph (1), on the first day of each fiscal year following the fiscal year in which that tax becomes effective, in an amount equal to the sum of the tax imposed pursuant to NRS 365.192 and the tax imposed pursuant to subparagraph (1) during the preceding fiscal year, multiplied by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years.
(d) If the board imposes a tax pursuant to paragraph (b) of subsection 1 of NRS 373.030, the board may by ordinance impose:
(1) An excise tax on each gallon of motor vehicle fuel, except aviation fuel and leaded racing fuel, sold in the county in an amount equal to the [sum] product obtained by multiplying the amount of the tax imposed pursuant to paragraph (b) of subsection 1 of NRS 373.030 by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years; and
(2) An annual increase in the tax imposed pursuant to subparagraph (1), on the first day of each fiscal year following the fiscal year in which that tax becomes effective, in an amount equal to the sum of the tax imposed pursuant to paragraph (b) of subsection 1 of NRS 373.030 and the tax imposed pursuant to subparagraph (1) during the preceding fiscal year, multiplied by the lesser of 4.5 percent or the average percentage of increase in the Consumer Price Index for West Urban Consumers for the preceding 5 years.
2. A board may not adopt any ordinance authorized by this section unless:
κ2005 Statutes of Nevada, Page 1719 (CHAPTER 416, SB 181)κ
(a) In a county for all or part of which a streets and highways plan has been adopted as a part of the master plan by the county or regional planning commission pursuant to NRS 278.150, the board first:
(1) Imposes a tax pursuant to paragraph (b) of subsection 1 of NRS 373.030 at the maximum rate authorized pursuant to that paragraph; or
(2) Submits to the voters of the county at a general or special election the question of whether to impose a tax pursuant to paragraph (b) of subsection 1 of NRS 373.030 at the maximum rate authorized pursuant to that paragraph; and
(b) A question concerning the imposition of the tax pursuant to this section is first approved by a majority of the registered voters of the county voting upon the question which the board may submit to the voters at any general election. The Committee on Local Government Finance shall annually provide to each city clerk, county clerk and district attorney in this State forms for submitting a question to the registered voters of a county pursuant to this paragraph. Any question submitted to the registered voters of a county pursuant to this paragraph must be in the form most recently provided by the Committee on Local Government Finance.
3. An ordinance adopted pursuant to this section in a county whose population is less than 100,000:
(a) Must be reapproved, in addition to the approval required by paragraph (b) of subsection 2, at least once every 8 years by a majority of the registered voters of the county voting on the question which the board may submit to the voters at any general election; and
(b) Expires by limitation no later than the last day of the 8th calendar year following the calendar year in which the ordinance was:
(1) Approved in accordance with paragraph (b) of subsection 2; or
(2) Most recently reapproved in accordance with this subsection,
Κ whichever occurs later.
4. Any ordinance authorized by this section may be adopted in combination with any other ordinance authorized by this section. Each tax imposed pursuant to this section is in addition to any other motor vehicle fuel taxes imposed pursuant to the provisions of this chapter and chapter 365 of NRS. Upon adoption of an ordinance authorized by this section, no further action by the board is necessary to effectuate the annual increases [.
3.] before the ordinance expires by limitation.
5. Any ordinance adopted pursuant to this section must:
(a) Become effective on the first day of the first calendar quarter beginning not less than 90 days after the adoption of the ordinance; and
(b) If the board has created a regional transportation commission in the county, require the commission:
(1) To review, at a public meeting conducted after the provision of public notice and before the effective date of each annual increase imposed by the ordinance:
(I) The amount of that increase and the accuracy of its calculation;
(II) The amounts of any annual increases imposed by the ordinance in previous years and the revenue collected pursuant to those increases;
κ2005 Statutes of Nevada, Page 1720 (CHAPTER 416, SB 181)κ
(III) Any improvements to the regional system of transportation resulting from revenue collected pursuant to any annual increases imposed by the ordinance in previous years; and
(IV) Any other information relevant to the effect of the annual increases on the public; and
(2) To submit to the board any information the commission receives suggesting that the annual increase should be adjusted.
[4.] 6. Any ordinance adopted pursuant to:
(a) Paragraph (a) of subsection 1 must:
(1) Require the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to that ordinance in the same proportions and manner as the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to NRS 365.180; and
(2) Expire by limitation [on] no later than the effective date of any increase or decrease in the amount of the tax imposed pursuant to NRS 365.180 which becomes effective after the adoption of that ordinance.
(b) Paragraph (b) of subsection 1 must:
(1) Require the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to that ordinance in the same proportions and manner as the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to NRS 365.190; and
(2) Expire by limitation [on] no later than the effective date of any increase or decrease in the amount of the tax imposed pursuant to NRS 365.190 which becomes effective after the adoption of that ordinance.
(c) Paragraph (c) of subsection 1 must:
(1) Require the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to that ordinance in the same proportions and manner as the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to NRS 365.192; and
(2) Expire by limitation [on] no later than the effective date of any increase or decrease in the amount of the tax imposed pursuant to NRS 365.192 which becomes effective after the adoption of that ordinance.
(d) Paragraph (d) of subsection 1 must:
(1) Require the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to that ordinance in the same proportions and manner as the allocation, disbursement and use in the county of the proceeds of the tax imposed pursuant to paragraph (b) of subsection 1 of NRS 373.030; and
(2) Expire by limitation [on] no later than the effective date of any subsequent ordinance increasing or decreasing the amount of the tax imposed in that county pursuant to paragraph (b) of subsection 1 of NRS 373.030.
Sec. 2. NRS 373.080 is hereby amended to read as follows:
373.080 All motor vehicle fuel taxes collected during any month by the Department pursuant to contract with any county shall be transmitted each month by the Department to such county and the Department shall charge the county for the Departments services specified in this section and in NRS 373.070 [such] :
1. Such amount as will reimburse the Department for the cost to it of rendering the services [.] ; or
2. In the case of a motor vehicle fuel tax imposed pursuant to NRS 373.065, 1 percent of the tax collected by the Department.
κ2005 Statutes of Nevada, Page 1721 (CHAPTER 416, SB 181)κ
Sec. 3. 1. Notwithstanding the amendatory provisions of section 1 of this act, the provisions of paragraph (a) of subsection 2 of NRS 373.065, as amended by section 1 of this act, do not apply to any ordinances adopted before July 1, 2005, by the Board of County Commissioners of Washoe County.
2. The approval by the voters on November 5, 2002, of Advisory Question No. 2, concerning transportation, on the 2002 general election ballot for Washoe County shall be deemed to constitute approval by the voters of the imposition of any tax imposed pursuant to NRS 373.065, as amended by section 1 of this act, including the imposition of the annual increase in such tax. No other approval by the voters is required for the imposition of that tax in Washoe County, including its incorporated cities.
Sec. 4. This act becomes effective on July 1, 2005.
________
Senate Bill No. 300Committee on Government Affairs
CHAPTER 417
AN ACT relating to contractors; limiting the amount of money that may be withheld as a retention amount under certain contracts and subcontracts; revising provisions governing when contractors and subcontractors may stop work; revising provisions governing payments to contractors and subcontractors; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 624 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. Owner means an owner or lessee of real property or any improvement who enters into an oral or written agreement with a prime contractor pursuant to which the prime contractor agrees to provide work, materials or equipment for a work of improvement.
Sec. 3. Prime contractor means a contractor who enters into an oral or written agreement with an owner pursuant to which the prime contractor agrees to provide work, materials or equipment for a work of improvement.
Sec. 4. Work of improvement has the meaning ascribed to it in NRS 108.22188.
Sec. 5. NRS 624.606 is hereby amended to read as follows:
624.606 As used in NRS 624.606 to [624.640,] 624.630, inclusive, and sections 2, 3 and 4 of this act, the words and terms defined in NRS 624.607 and 624.608 and sections 2, 3 and 4 of this act have the meanings ascribed to them in those sections.
Sec. 6. NRS 624.607 is hereby amended to read as follows:
624.607 Higher-tiered [subcontractor] contractor means a prime contractor or subcontractor [under a contract] who has entered into an oral or written [subcontract with another] agreement with a lower-tiered subcontractor pursuant to which the [other] lower-tiered subcontractor has agreed to [perform any of the duties of the subcontractor under the oral or written subcontract.]
κ2005 Statutes of Nevada, Page 1722 (CHAPTER 417, SB 300)κ
subcontractor pursuant to which the [other] lower-tiered subcontractor has agreed to [perform any of the duties of the subcontractor under the oral or written subcontract.] provide work, materials or equipment for a work of improvement.
Sec. 7. NRS 624.608 is hereby amended to read as follows:
624.608 Lower-tiered subcontractor means a subcontractor who has agreed in an oral or written [contract to perform any of the duties of another subcontractor under another oral or written subcontract.] agreement with a higher-tiered contractor to provide work, materials or equipment for a work of improvement.
Sec. 8. NRS 624.609 is hereby amended to read as follows:
624.609 1. Except as otherwise provided in subsections 2 and 4 and subsection 4 of NRS 624.622, if an owner of real property enters into a written or oral [contract] agreement with a prime contractor for the performance of work or the provision of materials or equipment by the prime contractor, the owner must:
(a) Pay [that] the prime contractor on or before the date a payment is due pursuant to a schedule for payments established in a written [contract;] agreement; or
(b) If no such schedule is established or if the [contract] agreement is oral, pay the prime contractor within 21 days after the date the prime contractor submits a request for payment.
2. If an owner has complied with subsection 3, the owner may:
(a) Withhold from any payment to be made to the prime contractor:
(1) A retention amount that , if the owner is authorized to withhold a retention amount pursuant to the [contract;] agreement, must not exceed 10 percent of the amount of the payment to be made;
(2) An amount equal to the sum of the value of:
(I) Any work or labor that has not been performed or materials or equipment that has not been furnished for which payment is being sought [;] , unless the agreement otherwise allows or requires such a payment to be made; and
(II) Costs and expenses reasonably necessary to correct or repair any work which is the subject of the request for payment and which is not materially in compliance with the [contract] agreement to the extent that such costs and expenses exceed 50 percent of the retention amount withheld pursuant to subparagraph (1); and
(3) The amount the owner has paid or is required to pay pursuant to an official notice from a state agency or employee benefit trust fund, for which the owner is or may reasonably be liable for the prime contractor or his lower-tiered subcontractors in accordance with chapter 608, 612, 616A to 616D, inclusive, or 617 of NRS; and
(b) Require as a condition precedent to the payment of any amount due, lien releases furnished by the prime contractor and his lower-tiered subcontractors and suppliers [. For purposes of this paragraph:
(1) If the amount due is paid with a check or is not paid concurrently with the owners receipt of the lien releases, the lien releases must be conditioned upon the check clearing the bank upon which it is drawn and the receipt of payment and shall be deemed to become unconditional upon the receipt of payment; and
κ2005 Statutes of Nevada, Page 1723 (CHAPTER 417, SB 300)κ
(2) The lien releases must be limited to the amount of the payment received.] in accordance with the provisions of paragraphs (a) and (c) of subsection 4 of NRS 108.2457.
3. If, pursuant to subparagraph (2) or (3) of paragraph (a) of subsection 2 or paragraph (b) of subsection 2, an owner intends to withhold any amount from a payment to be made to a prime contractor, the owner must give, on or before the date the payment is due, a written notice to the prime contractor of any amount that will be withheld. The written notice of withholding must:
(a) Identify the amount of the request for payment that will be withheld from the prime contractor;
(b) Give a reasonably detailed explanation of the condition or the reason the owner will withhold that amount, including, without limitation, a specific reference to the provision or section of the [contract,] agreement, and any documents relating thereto, and the applicable building code, law or regulation with which the prime contractor has failed to comply; and
(c) Be signed by an authorized agent of the owner.
4. A prime contractor who receives a notice of withholding pursuant to subsection 3 [may] or a notice of objection pursuant to subparagraph (2) of paragraph (b) may:
(a) Give the owner a written notice and thereby dispute in good faith and for reasonable cause the amount withheld, or the condition or reason for the withholding; or
(b) Correct any condition or reason for the withholding described in the notice of withholding and thereafter provide written notice to the owner of the correction of [a condition described in the notice received pursuant to subsection 3.] the condition or reason for the withholding. The notice of correction must be sufficient to identify the scope and manner of the correction of the condition or reason for the withholding and be signed by an authorized representative of the prime contractor. If an owner receives a written notice from the prime contractor of the correction of a condition or reason for the withholding pursuant to this [subsection,] paragraph, the owner [must:
(a)] shall:
(1) Pay the amount withheld by the owner for that condition or reason for the withholding on or before the date the next payment is due the prime contractor; or
[(b)] (2) Object to the scope and manner of the correction of the condition [,] or reason for the withholding, on or before the date the next payment is due to the prime contractor, in a written statement which sets forth the condition or reason for the objection and which complies with subsection 3. If the owner objects to the scope and manner of the correction of a condition [,] or reason for the withholding, he shall nevertheless pay to the prime contractor, along with the payment to be made pursuant to the prime contractors next payment request, the amount withheld for the correction of [conditions] the condition or reason for the withholding to which the owner no longer objects.
5. Except as otherwise allowed in subsections 2, 3 and 4, an owner shall not withhold from a payment to be made to a prime contractor more than the retention amount.
Sec. 9. NRS 624.610 is hereby amended to read as follows:
624.610 1. If [an] :
(a) An owner fails [to:
κ2005 Statutes of Nevada, Page 1724 (CHAPTER 417, SB 300)κ
(a) Pay] to pay the prime contractor in the time and manner required by subsection 1 or 4 of NRS 624.609; [or
(b) Give]
(b) An owner fails to give the prime contractor written notice of any withholding in the time and manner required by subsection 3 or 4 of NRS 624.609 [,] ;
(c) After receipt of a notice of withholding given pursuant to subsection 3 or 4 of NRS 624.609, the prime contractor gives the owner written notice pursuant to subsection 4 of NRS 624.609 and thereby disputes in good faith and for reasonable cause the amount withheld or the condition or reason for the withholding; or
(d) Within 30 days after the date that a written request for a change order is submitted by the prime contractor to the owner, the owner fails to:
(1) Issue the change order; or
(2) If the request for a change order is unreasonable or does not contain sufficient information to make a determination, give written notice to the prime contractor of the reasons why the change order is unreasonable or explain that additional information and time are necessary to make a determination,
Κ the prime contractor may stop work after giving written notice to the owner at least 10 days before stopping work.
2. If a prime contractor stops work pursuant to [this subsection,] paragraph (a), (b) or (c) of subsection 1, the prime contractor may terminate the [contract] agreement by giving written notice of termination to the owner after stopping work but at least 15 days before terminating the [contract.] agreement. If the prime contractor is paid the amount due before the date for termination of the [contract] agreement set forth in the written notice, the prime contractor shall not terminate the [contract] agreement and shall resume his work.
[2.] 3. If an owner fails to issue a change order or give written notice to the prime contractor pursuant to the provisions of paragraph (d) of subsection 1:
(a) The agreement price must be increased by the amount sought in the request for a change order;
(b) The time for performance must be extended by the amount sought in the request for a change order;
(c) The prime contractor may submit to the owner a bill or invoice for the labor, materials, equipment or services that are the subject of the request for a change order; and
(d) The owner shall pay the prime contractor for such labor, materials, equipment or services with the next payment made to the prime contractor.
4. If the owner through his own act or neglect, or through an act or neglect of his agent, excluding acts of God, floods, fires, labor disputes, strikes or reasonable adjustments to work schedules, causes the work to be stopped for a period of 15 days or more, the prime contractor may terminate the [contract] agreement if:
(a) The prime contractor gives written notice of his intent to terminate to the owner at least 10 days before terminating the [contract;] agreement; and
(b) The owner fails to allow work to resume within the time set forth in the written notice given pursuant to paragraph (a).
[3.] 5. If a prime contractor stops work pursuant to subsection 1, the owner may terminate the [contract] agreement by giving the prime contractor written notice of his intent to terminate at least 15 days before terminating the [contract.
κ2005 Statutes of Nevada, Page 1725 (CHAPTER 417, SB 300)κ
contractor written notice of his intent to terminate at least 15 days before terminating the [contract.
4.] agreement.
6. If the [contract] agreement is terminated pursuant to subsection [2,] 4, or if the prime contractor stops work in accordance with this section and the [contract] agreement is terminated pursuant to subsection 1 or [3,] 5, the prime contractor is entitled to recover from the owner payment in an amount found by a trier of fact to be due the prime contractor, including, without limitation:
(a) The cost of all work, labor, materials, equipment and services furnished by and through the prime contractor, including any [profit and] overhead the prime contractor [incurred or] and his lower-tiered subcontractors and suppliers incurred and profit the prime contractor and his lower-tiered subcontractors and suppliers earned through the date of termination;
(b) The balance of the profit that the prime contractor and his lower-tiered subcontractors and suppliers would have received if the [contract] agreement had been performed in full;
(c) Interest [at a rate equal to the rate agreed upon in the contract or, if no interest rate is so provided, then interest at a rate equal to the prime rate at the largest bank in this State, as determined by the Commissioner of Financial Institutions on January 1 or July 1, as the case may be, immediately preceding:
(1) The time the contract was signed; or
(2) If the contract was oral, the time the terms of the contract were agreed to by the parties,
Κ plus 2 percent;] determined pursuant to NRS 624.630; and
(d) The reasonable costs, including court and arbitration costs, incurred by the prime contractor and his lower-tiered subcontractors in collecting the amount due.
Κ [At] In any action brought to enforce the rights or obligations set forth in this subsection, the trier of fact may award reasonable attorneys fees to the prime contractor and his lower-tiered subcontractors and suppliers or, if the trier of fact determines that the prime contractor stopped work or terminated the [contract] agreement without a reasonable [cause,] basis in law or fact, the trier of fact may award reasonable attorneys fees and costs, including court and arbitration costs, to the owner.
[5.] 7. If a prime contractor stops work pursuant to subsection 1, each lower-tiered subcontractor with whom the prime contractor has [contracted] entered into an agreement and who has not fully performed under that [contract] agreement may also stop work on the [project.] work of improvement. If a prime contractor terminates [a contract] an agreement pursuant to this section, all such lower-tiered subcontractors may terminate their [contracts] agreements with the prime contractor.
[6.] 8. The right of a prime contractor to stop work or terminate [a contract] an agreement pursuant to this section is in addition to all other rights that the prime contractor may have at law or in equity and does not impair or affect the right of a prime contractor to maintain a civil action or to submit any controversy arising under the [contract] agreement with the owner to arbitration.
[7.] 9. No prime contractor or his lower-tiered subcontractors [,] or suppliers, or their respective sureties, may be held liable for any delays or damages that an owner may suffer as a result of the prime contractor [, subcontractor] or lower-tiered [subcontractor stopping his] subcontractors or suppliers stopping their work or the provision of materials or equipment or terminating [a contract for reasonable cause] an agreement for a reasonable basis in law or fact and in accordance with this section or reasonable cause and in accordance with this section or NRS 624.626.
κ2005 Statutes of Nevada, Page 1726 (CHAPTER 417, SB 300)κ
damages that an owner may suffer as a result of the prime contractor [, subcontractor] or lower-tiered [subcontractor stopping his] subcontractors or suppliers stopping their work or the provision of materials or equipment or terminating [a contract for reasonable cause] an agreement for a reasonable basis in law or fact and in accordance with this section or reasonable cause and in accordance with this section or NRS 624.626.
Sec. 10. NRS 624.620 is hereby amended to read as follows:
624.620 1. Except as otherwise provided in this section, any money remaining unpaid for the construction of a work of improvement is payable to the prime contractor within 30 days after:
(a) Occupancy or use of the work of improvement by the owner or by a person acting with the authority of the owner; or
(b) The availability of a work of improvement for its intended use. The prime contractor must have [given a] provided to the owner:
(1) A written notice of availability [to the owner] on or before the day on which he claims that the work of improvement became available for use or occupancy [.] ; or
(2) A certificate of occupancy issued by the appropriate building inspector or other authority.
2. If the owner has complied with subsection 3, the owner may:
(a) Withhold payment for the amount of:
(1) Any work or labor that has not been performed or materials or equipment that has not been furnished for which payment is sought;
(2) The costs and expenses reasonably necessary to correct or repair any work that is not materially in compliance with the [contract] agreement to the extent that such costs and expenses exceed 50 percent of the amount of retention being withheld pursuant to the terms of the [contract;] agreement; and
(3) Money the owner has paid or is required to pay pursuant to an official notice from a state agency, or employee benefit trust fund, for which the owner is liable for the prime contractor or his lower-tiered subcontractors in accordance with chapter 608, 612, 616A to 616D, inclusive, or 617 of NRS.
(b) Require, as a condition precedent to the payment of any unpaid amount under the [construction contract,] agreement, that lien releases be furnished by the [contractors subcontractors, suppliers or employees. For the purposes of this paragraph:
(1) If the amount due is paid with a check or is not paid concurrently with the owners receipt of the lien releases, the lien releases must be conditioned upon the check clearing the bank upon which it is drawn and the receipt of payment and shall be deemed to become unconditional upon the receipt of payment; and
(2) The lien releases must be limited to the amount of the payment received.] prime contractor and his lower-tiered subcontractors and suppliers in accordance with the provisions of paragraphs (a) and (c) of subsection 4 of NRS 108.2457.
3. If, pursuant to paragraph (a) of subsection 2, an owner intends to withhold any amount from a payment to be made to a prime contractor, the owner must, on or before the date the payment is due, give written notice to the prime contractor of any amount that will be withheld. The written notice of withholding must:
(a) Identify the amount that will be withheld from the prime contractor;
κ2005 Statutes of Nevada, Page 1727 (CHAPTER 417, SB 300)κ
(b) Give a reasonably detailed explanation of the condition for which or the reason the owner will withhold that amount, including, without limitation, a specific reference to the provision or section of the [contract,] agreement with the prime contractor, and any documents relating thereto, and the applicable building code, law or regulation with which the prime contractor has failed to comply; and
(c) Be signed by an authorized agent of the owner.
4. A prime contractor who receives a notice of withholding pursuant to subsection 3 may correct any condition or reason for the withholding described in the notice of withholding and thereafter provide written notice to the owner of the correction of [a condition described in the notice received pursuant to subsection 3.] the condition or reason for the withholding. The notice of correction must be sufficient to identify the scope and manner of the correction of the condition or reason for the withholding and be signed by an authorized representative of the prime contractor. If an owner receives a written notice from the prime contractor of the correction of a condition or reason for the withholding described in an owners notice of withholding pursuant to subsection 3, the owner must, within 10 days after receipt of such notice:
(a) Pay the amount withheld by the owner for that condition [;] or reason for the withholding; or
(b) Object to the scope and manner of the correction of the condition or reason for the withholding in a written statement that sets forth the reason for the objection and complies with subsection 3. If the owner objects to the scope and manner of the correction of a condition [,] or reason for the withholding, he shall nevertheless pay to the prime contractor, along with the payment to be made pursuant to the prime contractors next payment request, the amount withheld for the correction of [conditions] the condition or reason for the withholding to which the owner no longer objects.
5. The partial occupancy or availability of a building requires payment in direct proportion to the value of the part of the building which is partially occupied or partially available. For [projects] works of improvement which involve more than one building, each building must be considered separately in determining the amount of money which is payable to the prime contractor.
[6. Unless otherwise provided in the construction contract, any money which is payable to a contractor pursuant to this section accrues interest at a rate equal to the lowest daily prime rate at the largest bank in this State, as determined by the Commissioner of Financial Institutions on January 1 or July 1, as the case may be, immediately preceding:
(a) The time the contract was signed; or
(b) If the contract was oral, the time the terms of the contract were agreed to by the parties,
Κ plus 2 percent.
7. This section does not apply to:
(a) Any residential building; or
(b) Public works.
8. As used in this section, unless the context otherwise requires, work of improvement has the meaning ascribed to it in NRS 108.22188.]
Sec. 11. NRS 624.622 is hereby amended to read as follows:
624.622 1. A prime contractor shall provide a copy of any notice given to an owner pursuant to subsection 1 or 2 of NRS 624.610 to each lower-tiered subcontractor with whom the prime contractor has [contracted who has not fully performed under that contract.]
κ2005 Statutes of Nevada, Page 1728 (CHAPTER 417, SB 300)κ
lower-tiered subcontractor with whom the prime contractor has [contracted who has not fully performed under that contract.] entered into an agreement. Upon receipt of payment pursuant to NRS 624.609, the prime contractor shall notify all such lower-tiered subcontractors in writing of his receipt of payment.
2. A condition, stipulation or provision in [a contract or other] an agreement which [requires] :
(a) Requires a prime contractor to waive any rights provided in this section, NRS 624.609 , [or] 624.610, 624.620 or 624.630, or which limits those rights [,] ;
(b) Relieves an owner of any obligation or liability imposed pursuant to NRS 624.606 to 624.630, inclusive, and sections 2, 3 and 4 of this act; or
(c) Requires a prime contractor to waive, release or extinguish a claim or right for damages or an extension of time that the prime contractor may otherwise possess or acquire as a result of delay, acceleration, disruption or an impact event that is unreasonable under the circumstances, that was not within the contemplation of the parties at the time the agreement was entered into, or for which the prime contractor is not responsible,
Κ is against public policy and is void [.] and unenforceable.
3. All notices required pursuant to this section, NRS 624.609 , [and] 624.610 and 624.620 must be:
(a) Delivered personally, in which case the prime contractor shall obtain a notarized statement from the person who delivered the notice as proof of delivery;
(b) Sent by facsimile and delivered by regular mail, in which case the prime contractor shall retain proof of a successful transmission of the facsimile;
(c) Delivered by certified mail; or
(d) Delivered in the manner provided for in the [contract.] agreement.
4. This section, NRS 624.609 , [and] 624.610 and 624.620 do not apply to [a contract] an agreement between:
(a) A [residential] prime contractor and a natural person who owns a single-family residence for the performance of qualified services with respect to the residence; [and] or
(b) A public body and a prime contractor for the performance of work and labor on a public work.
5. Within 5 days after an owner receives a written request for the information set forth in paragraphs (a), (b) and (c) from a lower-tiered subcontractor , [with respect to a subcontract that has not been fully performed,] the owner shall notify the lower-tiered subcontractor in writing of the following:
(a) The date the owner made a specified payment to his prime contractor;
(b) Whether the owner has paid the entire amount of a specified payment to his prime contractor; and
(c) The amount withheld by the owner from a specified payment to the prime contractor and the condition or reason for the withholding.
Sec. 12. NRS 624.624 is hereby amended to read as follows:
624.624 1. Except as otherwise provided in this section, if a higher-tiered contractor [or higher-tiered subcontractor] enters into:
κ2005 Statutes of Nevada, Page 1729 (CHAPTER 417, SB 300)κ
(a) A written [subcontract] agreement with a lower-tiered subcontractor that includes a schedule for payments, the higher-tiered contractor [or higher-tiered subcontractor] shall pay the lower-tiered subcontractor:
(1) On or before the date payment is due; or
(2) Within 10 days after the date the higher-tiered contractor [or higher-tiered subcontractor] receives payment for all or a portion of the work, [labor, materials, equipment or services] materials or equipment described in a request for payment submitted by the lower-tiered subcontractor,
Κ whichever is earlier.
(b) A written [subcontract] agreement with a lower-tiered subcontractor that does not contain a schedule for payments, or [a subcontract] an agreement that is oral, the higher-tiered contractor [or higher-tiered subcontractor] shall pay the lower-tiered subcontractor:
(1) Within 30 days after the date the lower-tiered subcontractor submits a request for payment; or
(2) Within 10 days after the date the higher-tiered contractor [or higher-tiered subcontractor] receives payment for all or a portion of the work, labor, materials, equipment or services described in a request for payment submitted by the lower-tiered subcontractor,
Κ whichever is earlier.
2. If a higher-tiered contractor [or higher-tiered subcontractor] has complied with subsection 3, the higher-tiered contractor [or higher-tiered subcontractor] may:
(a) Withhold from any payment owed to the lower-tiered subcontractor:
(1) A retention amount that the [subcontractor] higher-tiered contractor is authorized to withhold pursuant to the [contract;] agreement, but the retention amount withheld must not exceed 10 percent of the payment that is required pursuant to subsection 1;
(2) An amount equal to the sum of the value of:
(I) Any work or labor that has not been performed or materials or equipment that has not been furnished for which payment is being sought [;] , unless the agreement otherwise allows or requires such a payment to be made; and
(II) Costs and expenses reasonably necessary to correct or repair any work which is the subject of the request for payment and which is not materially in compliance with the [subcontract] agreement to the extent that such costs and expenses exceed 50 percent of the retention amount withheld pursuant to subparagraph (1); and
(3) The amount the owner [, contractor or higher-tiered subcontractor] or higher-tiered contractor has paid or is required to pay pursuant to an official notice from a state agency or employee benefit trust fund, for which the owner [, contractor or higher-tiered subcontractor] or higher-tiered contractor is or may reasonably be liable for the lower-tiered subcontractor or his lower-tiered subcontractors in accordance with chapter 608, 612, 616A to 616D, inclusive, or 617 of NRS; and
(b) Require as a condition precedent to the payment of any amount due, lien releases furnished by the lower-tiered subcontractor and his lower-tiered subcontractors and suppliers [. For purposes of this paragraph:
(1) If the amount due is paid with a check or is not paid concurrently with the contractors or higher-tiered subcontractors receipt of the lien releases, the lien releases must be conditioned upon the check clearing the bank upon which it is drawn and the receipt of payment and shall be deemed to become unconditional upon the receipt of payment; and
κ2005 Statutes of Nevada, Page 1730 (CHAPTER 417, SB 300)κ
bank upon which it is drawn and the receipt of payment and shall be deemed to become unconditional upon the receipt of payment; and
(2) The lien releases must be limited to the amount of the payment received.] in accordance with the provisions of paragraphs (a) and (c) of subsection 4 of NRS 108.2457.
3. If, pursuant to subparagraph (2) or (3) of paragraph (a) of subsection 2 or paragraph (b) of subsection 2, a higher-tiered contractor [or higher-tiered subcontractor] intends to withhold any amount from a payment to be made to a lower-tiered subcontractor, the higher-tiered contractor [or higher-tiered subcontractor] must give, on or before the date the payment is due, a written notice to the lower-tiered subcontractor of any amount that will be withheld and give a copy of such notice to all reputed higher-tiered [subcontractors,] contractors and the owner. The written notice of withholding must:
(a) Identify the amount of the request for payment that will be withheld from the lower-tiered subcontractor;
(b) Give a reasonably detailed explanation of the condition or the reason the higher-tiered contractor [or higher-tiered subcontractor] will withhold that amount, including, without limitation, a specific reference to the provision or section of the [subcontract,] agreement with the lower-tiered subcontractor, and any documents relating thereto, and the applicable building code, law or regulation with which the lower-tiered subcontractor has failed to comply; and
(c) Be signed by an authorized agent of the higher-tiered contractor . [or higher-tiered subcontractor.]
4. A lower-tiered subcontractor who receives a notice of withholding pursuant to subsection 3 [may] or a notice of objection pursuant to subparagraph (2) of paragraph (b) may:
(a) Give the higher-tiered contractor a written notice and thereby dispute in good faith and for reasonable cause the amount withheld or the conditions or reasons for the withholding; or
(b) Correct any condition or reason for the withholding described in the notice of withholding and thereafter provide written notice to the higher-tiered contractor [or higher-tiered subcontractor] of the correction of [a condition described in the notice received pursuant to subsection 3.] the condition or reason for the withholding. The notice of correction must be sufficient to identify the scope and manner of the correction of the condition or reason for the withholding and be signed by an authorized representative of the lower-tiered subcontractor. If a higher-tiered contractor [or higher-tiered subcontractor] receives a written notice from the lower-tiered subcontractor of the correction of a condition or reason for the withholding pursuant to this [subsection,] paragraph, the higher-tiered contractor [or higher-tiered subcontractor must:
(a)] shall:
(1) Pay the amount withheld by the higher-tiered contractor [or higher-tiered subcontractor] for that condition or reason for the withholding on or before the date the next payment is due the lower-tiered subcontractor; or
[(b)] (2) Object to the scope and manner of the correction of the condition [,] or reason for the withholding, on or before the date the next payment is due to the lower-tiered subcontractor, in a written statement which sets forth the condition or reason for the objection and which complies with subsection 3.
κ2005 Statutes of Nevada, Page 1731 (CHAPTER 417, SB 300)κ
complies with subsection 3. If the higher-tiered contractor [or higher-tiered subcontractor] objects to the scope and manner of the correction of a condition [,] or reason for the withholding, he shall nevertheless pay to the lower-tiered subcontractor, along with the payment to be made pursuant to the lower-tiered subcontractors next payment request, the amount withheld for the correction of the conditions or reasons for the withholding to which the higher-tiered contractor [or higher-tiered subcontractor] no longer objects.
5. Except as otherwise allowed in subsections 2, 3 and 4, a higher-tiered contractor shall not withhold from a payment to be made to a lower-tiered subcontractor more than the retention amount.
Sec. 13. NRS 624.626 is hereby amended to read as follows:
624.626 1. If [a contractor or higher-tiered subcontractor fails to:
(a) Pay] :
(a) A higher-tiered contractor fails to pay the lower-tiered subcontractor within the time provided in subsection 1 or 4 of NRS 624.624;
(b) [Pay] A higher-tiered contractor fails to pay the lower-tiered subcontractor within 45 days after the 25th day of the month in which the lower-tiered subcontractor submits a request for payment, even if the higher-tiered contractor [or higher-tiered subcontractor] has not been paid and the [subcontract] agreement contains a provision which requires the higher-tiered contractor [or higher-tiered subcontractor] to pay the lower-tiered subcontractor only if or when the higher-tiered contractor [or higher-tiered subcontractor] is paid; [or
(c) Give]
(c) A higher-tiered contractor fails to give the lower-tiered subcontractor written notice of any withholding in the time and manner required by subsection 3 or 4 of NRS 624.624 [,] ;
(d) After receipt of a notice of withholding pursuant to subsection 3 or 4 of NRS 624.624, the lower-tiered subcontractor gives the higher-tiered contractor written notice pursuant to subsection 4 of NRS 624.624 and thereby disputes in good faith and for reasonable cause the amount withheld or the condition or reason for the withholding; or
(e) Within 30 days after the date that a written request for a change order is submitted by the lower-tiered subcontractor to the higher-tiered contractor, the higher-tiered contractor fails to:
(1) Issue the change order; or
(2) If the request for a change order is unreasonable, give written notice to the lower-tiered subcontractor of the reasons why the change order is unreasonable,
Κ the lower-tiered subcontractor may stop work under the [subcontract] agreement until payment is received if the lower-tiered subcontractor gives written notice to the higher-tiered contractor [or higher-tiered subcontractor] at least 10 days before stopping work.
2. If a lower-tiered subcontractor stops work pursuant to paragraph (a) , [or] (c) or (d) of subsection 1, the lower-tiered subcontractor may terminate the [subcontract] agreement with the higher-tiered contractor by giving written notice of the termination to the higher-tiered contractor [or higher-tiered subcontractor] after stopping work but at least 15 days before the termination of the [subcontract.] agreement. If the lower-tiered subcontractor is paid the amount due before the date for termination set forth in the written notice, the lower-tiered subcontractor shall not terminate the [subcontract] agreement and shall resume his work.
κ2005 Statutes of Nevada, Page 1732 (CHAPTER 417, SB 300)κ
in the written notice, the lower-tiered subcontractor shall not terminate the [subcontract] agreement and shall resume his work.
3. If a higher-tiered contractor fails to issue a change order or fails to give written notice pursuant to paragraph (e) of subsection 1:
(a) The agreement price must be increased by the amount sought in the request for a change order;
(b) The time for performance must be extended by the amount sought in the request for a change order;
(c) The lower-tiered subcontractor may submit to the higher-tiered contractor a bill or invoice for the labor, materials, equipment or services that are the subject of the request for a change order; and
(d) The higher-tiered contractor shall pay the lower-tiered subcontractor for such labor, materials, equipment or services with the next payment made to the lower-tiered subcontractor.
4. If an owner [, contractor or higher-tiered subcontractor] or higher-tiered contractor through his own act or neglect, or through an act or neglect of his agent, excluding acts of God, floods, fires, labor disputes, strikes or reasonable adjustments in work schedules, causes the work to be stopped for a period of 15 days or more, the lower-tiered subcontractor may terminate the [subcontract] agreement if:
(a) The lower-tiered subcontractor gives written notice of his intent to terminate to the higher-tiered contractor [or higher-tiered subcontractor] at least 10 days before terminating the [subcontract;] agreement; and
(b) The higher-tiered contractor [or higher-tiered subcontractor] fails to allow the lower-tiered subcontractor to resume the work within the time set forth in the written notice given pursuant to paragraph (a).
[4.] 5. If a lower-tiered subcontractor stops work pursuant to paragraph (a) , [or] (c) or (d) of subsection 1, the higher-tiered contractor [or higher-tiered subcontractor] may terminate the [subcontract] agreement by giving the lower-tiered subcontractor written notice of his intent to terminate at least 15 days before terminating the [subcontract.
5.] agreement.
6. If the [subcontract] agreement is terminated pursuant to subsection [3,] 4, or if the lower-tiered subcontractor stops work in accordance with this section and the [subcontract] agreement is terminated pursuant to subsection 2 or [4,] 5, the lower-tiered subcontractor is entitled to recover from the higher-tiered contractor [or higher-tiered subcontractor] with whom he has [contracted] entered into an agreement the amount found by a trier of fact to be due the lower-tiered subcontractor, including, without limitation:
(a) The cost of all work, labor, materials, equipment and services furnished by and through the lower-tiered subcontractor, including any [profit and] overhead the lower-tiered subcontractor and his lower-tiered subcontractors and suppliers incurred [or] and profit the lower-tiered subcontractor and his lower-tiered subcontractors and suppliers earned through the date of termination;
(b) The balance of the profit that the lower-tiered subcontractor and his lower-tiered subcontractors and suppliers would have received if the [subcontract] agreement had been performed in full;
(c) Interest [at a rate equal to the rate agreed upon in the subcontract or, if no interest rate is so provided, interest at a rate equal to the prime rate at the largest bank in this State, as determined by the Commissioner of Financial Institutions on January 1 or July 1, as the case may be, immediately preceding:
κ2005 Statutes of Nevada, Page 1733 (CHAPTER 417, SB 300)κ
Financial Institutions on January 1 or July 1, as the case may be, immediately preceding:
(1) The time the subcontract was signed; or
(2) If the subcontract was oral, the time the terms of the subcontract were agreed upon by the parties,
Κ plus 2 percent;] determined pursuant to NRS 624.630; and
(d) The reasonable costs, including court costs [,] and arbitration costs, incurred by the lower-tiered subcontractor and his lower-tiered subcontractors in collecting the amount due.
Κ [At] In any action brought to enforce the rights or obligations set forth in this subsection, the trier of fact may award reasonable attorneys fees to the lower-tiered subcontractor and his lower-tiered subcontractors and suppliers or, if the trier of fact determines that the lower-tiered subcontractor stopped work or terminated the [contract] agreement without a reasonable [cause,] basis in law or fact, the trier of fact may award reasonable attorneys fees and costs, including court costs and arbitration costs, to the higher-tiered contractor . [or higher-tiered subcontractor.
6.] 7. If a lower-tiered subcontractor stops work pursuant to this section, each lower-tiered subcontractor with whom the lower-tiered subcontractor has [contracted] entered into an agreement and who has not fully performed under the [contract] agreement may also stop work on the [project.] work of improvement. If a lower-tiered subcontractor terminates [a subcontract] an agreement pursuant to this section, all [such] of his lower-tiered subcontractors may terminate their [contracts] agreements with the lower-tiered subcontractor.
[7.] 8. The right of a lower-tiered subcontractor to stop work or terminate [a subcontract] an agreement pursuant to this section is in addition to all other rights that the lower-tiered subcontractor may have at law or in equity and does not impair or affect the right of a lower-tiered subcontractor to maintain a civil action or to submit any controversy arising under the [contract] agreement to arbitration.
[8.] 9. No lower-tiered subcontractor or his lower-tiered subcontractors [,] or suppliers, or their respective sureties, may be held liable for any delays or damages that an owner [, contractor] or higher-tiered [subcontractor] contractor may suffer as a result of the [subcontractor or] lower-tiered subcontractor and his lower-tiered subcontractors and suppliers stopping [his] their work or the provision of materials or equipment or terminating [a subcontract for reasonable cause] an agreement for a reasonable basis in law or fact and in accordance with this section.
Sec. 14. NRS 624.628 is hereby amended to read as follows:
624.628 1. A lower-tiered subcontractor shall provide a copy of any notice given to a higher-tiered contractor [or higher-tiered subcontractor] pursuant to this section or NRS 624.624 or 624.626 to each lower-tiered subcontractor with whom the lower-tiered subcontractor has [contracted] entered into an agreement and who has not fully performed under the [contract.] agreement. Upon receipt of payment pursuant to NRS 624.624, the lower-tiered subcontractor shall notify all [such] of his lower-tiered subcontractors in writing of his receipt of payment.
2. A lower-tiered subcontractor shall provide a copy of any notice given to a higher-tiered contractor [or higher-tiered subcontractor] pursuant to this section or NRS 624.624 or 624.626 to [each reputed higher-tiered subcontractor, contractor] all other higher-tiered contractors and the owner, if known.
κ2005 Statutes of Nevada, Page 1734 (CHAPTER 417, SB 300)κ
if known. The failure of a lower-tiered subcontractor to comply with this subsection does not invalidate any notice otherwise properly given.
3. A condition, stipulation or provision in [a subcontract or other] an agreement which [requires] :
(a) Requires a lower-tiered subcontractor to waive any rights provided in this section or NRS 624.624 [or 624.626,] , 624.626 or 624.630 or which limits those rights [,] ;
(b) Relieves a higher-tiered contractor of any obligation or liability imposed pursuant to this section, NRS 624.624, 624.626 or 624.630; or
(c) Requires a lower-tiered subcontractor to waive, release or extinguish a claim or right for damages or an extension of time that the lower-tiered subcontractor may otherwise possess or acquire as a result of delay, acceleration, disruption or an impact event that is unreasonable under the circumstances, that was not within the contemplation of the parties at the time the agreement was entered into, or for which the lower-tiered subcontractor is not responsible,
Κ is against public policy and is void [.] and unenforceable.
4. All notices required pursuant to this section or NRS 624.624 or 624.626 must be:
(a) Delivered personally, in which case the lower-tiered subcontractor shall obtain a notarized statement from the person who delivered the notice as proof of delivery;
(b) Sent by facsimile and delivered by regular mail, in which case the lower-tiered subcontractor shall retain proof of a successful transmission of the facsimile;
(c) Delivered by certified mail; or
(d) Delivered in the manner provided in the [contract.] agreement between the higher-tiered contractor and the lower-tiered subcontractor.
5. Within 5 days after [a] the owner or any higher-tiered contractor receives a written request for the information set forth in paragraphs (a), (b) and (c) from a lower-tiered subcontractor with respect to [a subcontract] an agreement that has not been fully performed, the owner or higher-tiered contractor shall notify the lower-tiered subcontractor in writing of the following:
(a) The date the owner or higher-tiered contractor made a specified payment to [his] the prime contractor or lower-tiered subcontractor;
(b) Whether the owner or higher-tiered contractor has paid [his] the prime contractor or lower-tiered subcontractor the entire amount of a specified payment; and
(c) The amount withheld by the owner or higher-tiered contractor of a specified payment to his prime contractor or lower-tiered subcontractor and the condition or reason for the withholding.
Sec. 15. NRS 624.630 is hereby amended to read as follows:
624.630 [1. Each contractor shall disburse money paid to him pursuant to NRS 624.620, including any interest which he receives, to his subcontractors and suppliers within 15 days after he receives the money, in direct proportion to the subcontractors and suppliers basis in the total contract between the contractor and the owner.
2.] Any money which is payable to a prime contractor, higher-tiered contractor or lower-tiered subcontractor pursuant to [this section] NRS 624.609, 624.610, 624.620, 624.624, 624.626 or 624.628 accrues interest from the time it becomes due at a rate equal to the [lowest daily prime rate at the three largest United States banking institutions on the date the contract is executed plus 2 percent, from 15 days after the date on which the money was received by the contractor] higher of:
κ2005 Statutes of Nevada, Page 1735 (CHAPTER 417, SB 300)κ
the three largest United States banking institutions on the date the contract is executed plus 2 percent, from 15 days after the date on which the money was received by the contractor] higher of:
1. The rate agreed upon in the agreement between the parties; or
2. The rate equal to the prime rate at the largest bank in this State, as determined by the Commissioner of Financial Institutions on January 1 or July 1, as the case may be, immediately preceding:
(a) The time at which the agreement was signed; or
(b) If the agreement was oral, the time at which the terms of the agreement were agreed to by the parties,
Κ plus 4 percent until the date of payment.
Sec. 16. NRS 99.040 is hereby amended to read as follows:
99.040 1. When there is no express contract in writing fixing a different rate of interest, interest must be allowed at a rate equal to the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the transaction, plus 2 percent, upon all money from the time it becomes due, in the following cases:
(a) Upon contracts, express or implied, other than book accounts.
(b) Upon the settlement of book or store accounts from the day on which the balance is ascertained.
(c) Upon money received to the use and benefit of another and detained without his consent.
(d) Upon wages or salary, if it is unpaid when due, after demand therefor has been made.
Κ The rate must be adjusted accordingly on each January 1 and July 1 thereafter until the judgment is satisfied.
2. The provisions of this section do not apply to money owed [:
(a) For the construction of a work of improvement pursuant to NRS 624.620; or
(b) By a contractor to his subcontractor] pursuant to chapter 624 of NRS which is governed by the provisions of NRS 624.630.
Sec. 17. This act becomes effective on July 1, 2005.
________
Assembly Bill No. 342Assemblymen Leslie, Perkins, Pierce and Buckley
CHAPTER 418
AN ACT relating to health care; expanding the classification of hospitals that the Director of the Department of Human Resources is required to audit to ensure compliance with various provisions to restrain the costs of health care; expanding the classification of hospitals that are required to provide information to the Department in a specific form; making various changes concerning the reporting of financial information by certain hospitals to the Department; making various changes concerning the reporting of information by the Department; requiring the Legislative Committee on Health Care to develop a plan concerning the provision of health care in this State; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
κ2005 Statutes of Nevada, Page 1736 (CHAPTER 418, AB 342)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 439B.440 is hereby amended to read as follows:
439B.440 1. The Director may by regulation require hospitals, other health facilities and providers of health services to submit such information as is reasonably necessary for the Director to carry out the provisions of this chapter.
2. Except as otherwise provided in subsection 3, the Director shall by regulation require an examination of a hospital by an independent auditor appointed by the Director to ensure compliance with this chapter. The audits must be scheduled on a regular basis but not more often than once each year. The hospital shall pay the costs of the audit. A hospital may contract with the auditor to conduct other work for the hospital in connection with the audit.
3. The Director shall not require an audit of a hospital which has less than [200] 100 beds or is subject to the provisions of chapter 450 of NRS. The Director shall by regulation require such a hospital to submit audits of the hospital on a regular basis but not more often than once each year.
4. If a hospital fails to comply with any regulation adopted pursuant to this section or the Director has reason to believe the hospital has violated any provision of this chapter, the Director may conduct an examination or contract for an independent examination of the hospital to determine whether it is in compliance with those provisions. The hospital which is the subject of such an examination is responsible for payment of the costs of the examination if the Director determines that the hospital did violate a provision of this chapter.
5. Any person who fails to submit information as required by any regulation adopted pursuant to this chapter to the Department or fails to submit to an audit or examination pursuant to this section is subject to an administrative fine of not more than $1,000 per violation per day until the required information is submitted or the person submits to the audit or examination.
Sec. 2. NRS 449.485 is hereby amended to read as follows:
449.485 1. Each hospital in this State shall use for all patients discharged the form commonly referred to as the UB-82, or a different form prescribed by the Director with the approval of a majority of the hospitals licensed in this State, and shall include in the form all information required by the Department.
2. The Department shall by regulation:
(a) Specify the information required to be included in the form for each patient; and
(b) Require each hospital to provide specified information from the form to the Department.
3. Each insurance company or other payer shall accept the form as the bill for services provided by hospitals in this State.
4. [Each] Except as otherwise provided in subsection 5, each hospital with 100 or more [than 200] beds shall provide the information required pursuant to paragraph (b) of subsection 2 on magnetic tape or by other means specified by the Department, or shall provide copies of the forms and pay the costs of entering the information manually from the copies.
κ2005 Statutes of Nevada, Page 1737 (CHAPTER 418, AB 342)κ
5. The Director may exempt a hospital from the requirements of subsection 4 if requiring the hospital to comply with the requirements would cause the hospital financial hardship.
Sec. 3. NRS 449.490 is hereby amended to read as follows:
449.490 1. Every institution which is subject to the provisions of NRS 449.450 to 449.530, inclusive, shall file with the Department the following financial statements or reports in a form and at intervals specified by the Director but at least annually:
(a) A balance sheet detailing the assets, liabilities and net worth of the institution for its fiscal year; and
(b) A statement of income and expenses for the fiscal year.
[Κ Each such institution]
2. Each hospital with 100 or more beds shall file with the Department in a form and at intervals specified by the Director but at least annually, a [proposed operating budget for the following fiscal year at least 30 days before the start of that fiscal year.
2.] capital improvement report which includes, without limitation, any major service line that the hospital has added or is in the process of adding since the previous report was filed, any major expansion of the existing facilities of the hospital that has been completed or is in the process of being completed since the previous report was filed and any major piece of equipment that the hospital has acquired or is in the process of acquiring since the previous report was filed.
3. In addition to the information required to be filed pursuant to subsections 1 and 2, each hospital with 100 or more beds shall file with the Department in a form and at intervals specified by the Director but at least annually:
(a) The corporate home office allocation methodology of the hospital, if any.
(b) The expenses that the hospital has incurred for providing community benefits and the in-kind services that the hospital has provided to the community in which it is located. For the purposes of this paragraph, community benefits includes, without limitation, goods, services and resources provided by a hospital to a community to address the specific needs and concerns of that community, services provided by a hospital to the uninsured and underserved persons in that community, training programs for employees in a community and health care services provided in areas of a community that have a critical shortage of such services, for which the hospital does not receive full reimbursement.
(c) A statement of its policies and procedures for providing discounted services to, or reducing charges for services provided to, persons without health insurance that are in addition to any reduction or discount required to be provided pursuant to NRS 439B.260.
(d) A statement of its policies regarding patients account receivables, including, without limitation, the manner in which a hospital collects or makes payment arrangements for patients account receivables, the factors that initiate collections and the method by which unpaid account receivables are collected.
4. A complete current charge master must be available at each hospital during normal business hours for review by the Director, any payor that has a contract with the hospital to pay for services provided by the hospital, any payor that has received a bill from the hospital and any state agency that is authorized to review such information.
κ2005 Statutes of Nevada, Page 1738 (CHAPTER 418, AB 342)κ
the hospital, any payor that has received a bill from the hospital and any state agency that is authorized to review such information.
5. The Director shall require the certification of specified financial reports by an independent certified public accountant and may require attestations from responsible officers of the institution that the reports are, to the best of their knowledge and belief, accurate and complete [.
3.] , to the extent that the certifications and attestations are not required by federal law.
6. The Director shall require the filing of all reports by specified dates, and may adopt regulations which assess penalties for failure to file as required, but he shall not require the submission of a final annual report sooner than 6 months after the close of the fiscal year, and may grant extensions to institutions which can show that the required information is not available on the required reporting date.
[4.] 7. All reports, except privileged medical information, filed under any provisions of NRS 449.450 to 449.530, inclusive, are open to public inspection and must be available for examination at the office of the Department during regular business hours.
Sec. 4. NRS 449.520 is hereby amended to read as follows:
449.520 1. On or before October 1 of each year, the Director shall prepare and transmit to the Governor , the Legislative Committee on Health Care and the Interim Finance Committee a report of the Departments operations and activities for the preceding fiscal year. [This report must include copies]
2. The report prepared pursuant to subsection 1 must include:
(a) Copies of all summaries, compilations and supplementary reports required by NRS 449.450 to 449.530, inclusive, together with such facts, suggestions and policy recommendations as the Director deems necessary [.] ;
(b) A summary of the trends of the audits of hospitals in this State that the Department required or performed during the previous year;
(c) An analysis of the trends in the costs, expenses and profits of hospitals in this State;
(d) An analysis of the corporate home office allocation methodologies of hospitals in this State;
(e) An examination and analysis of the manner in which hospitals are reporting the information that is required to be filed pursuant to NRS 449.490, including, without limitation, an examination and analysis of whether that information is being reported in a standard and consistent manner, which fairly reflect the operations of each hospital;
(f) A review and comparison of the policies and procedures used by hospitals in this State to provide discounted services to, and to reduce charges for services provided to, persons without health insurance; and
(g) A review and comparison of the policies and procedures used by hospitals in this State to collect unpaid charges for services provided by the hospitals.
3. The Legislative Committee on Health Care shall develop a comprehensive plan concerning the provision of health care in this State which includes, without limitation:
(a) A review of the health care needs in this State as identified by state agencies, local governments, providers of health care and the general public; and
κ2005 Statutes of Nevada, Page 1739 (CHAPTER 418, AB 342)κ
(b) A review of the capital improvement reports submitted by hospitals pursuant to subsection 2 of NRS 449.490.
Sec. 5. This act becomes effective upon passage and approval.
________
Senate Bill No. 509Committee on Taxation
CHAPTER 419
AN ACT relating to the taxation of property; making technical corrections to and providing for the administration of the provisions of Assembly Bill No. 489 of this session; providing for the allocation among taxing entities of certain reductions in ad valorem revenue; specifying the procedure for appealing determinations of the applicability of certain partial abatements of taxes; providing for the correction of the tax roll under certain circumstances when certain claims for a partial abatement are filed late; providing a penalty for falsely claiming to be entitled to certain partial abatements; specifying the order in which certain partial abatements and exemptions must be applied to reduce tax liability; clarifying certain provisions governing the determination of primary residences; exempting certain tax levies from the partial abatements; repealing the requirement for certain approval by the Nevada Tax Commission; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 361 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 22, inclusive, of this act.
Sec. 2. As used in sections 3 to 7, inclusive, of chapter 20, Statutes of Nevada 2005, and sections 2 to 17, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 13, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3. Abatement percentage means, with regard to any property for which the owner thereof is entitled to a partial abatement from taxation pursuant to:
1. Section 3 or 3.5 of chapter 20, Statutes of Nevada 2005, 3 percent;
2. Subsection 1 of section 4 of chapter 20, Statutes of Nevada 2005, the percentage determined pursuant to paragraph (b) of that subsection; or
3. Subsection 2 of section 4 of chapter 20, Statutes of Nevada 2005, the percentage determined pursuant to paragraph (b) of that subsection.
Sec. 4. Ad valorem taxes levied in a county means any ad valorem taxes levied by the State or any other taxing entity in a county.
Sec. 5. Base-year assessed value means the amount of the assessed value of the taxable property in a redevelopment area which is used for determining the amount of any distribution of the proceeds of ad valorem taxes to the redevelopment taxing entities in accordance with paragraph (a) of subsection 1 of NRS 279.676.
κ2005 Statutes of Nevada, Page 1740 (CHAPTER 419, SB 509)κ
Sec. 6. Base-year assessed value percentage means the percentage that results from dividing the base-year assessed value for a redevelopment area by the sum obtained by adding:
1. The base-year assessed value for the redevelopment area; and
2. Any incremental assessed value for the redevelopment area for the current year.
Sec. 7. Combined overlapping tax rate means the total ad valorem tax rate levied on a parcel or other taxable unit of property, excluding any portion thereof which is:
1. Exempt pursuant to section 5.5 or subsection 3 of section 6 of chapter 20, Statutes of Nevada 2005, from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of chapter 20, Statutes of Nevada 2005; or
2. Approved and levied pursuant to section 7 of chapter 20, Statutes of Nevada 2005, and exempt from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of chapter 20, Statutes of Nevada 2005.
Sec. 8. Incremental assessed value means the amount of the assessed value of the taxable property in a redevelopment area which is used for determining the amount of any distribution of the proceeds of ad valorem taxes to the redevelopment agency in accordance with paragraph (b) of subsection 1 of NRS 279.676.
Sec. 9. Parcel-proportionate share of the base value means the product of:
1. The assessed value of a parcel or other taxable unit of property for the current year; and
2. The base-year assessed value percentage for the current year for the redevelopment area in which the parcel or other taxable unit of property is located.
Sec. 10. Redevelopment agency means a redevelopment agency created pursuant to chapter 279 of NRS to which any of the proceeds of the ad valorem taxes levied in the redevelopment area are distributed in accordance with paragraph (b) of subsection 1 of NRS 279.676.
Sec. 11. Redevelopment area means a redevelopment area created pursuant to chapter 279 of NRS regarding which the redevelopment plan contains the provision authorized by NRS 279.676.
Sec. 12. Redevelopment taxing entity means a taxing entity to which any of the proceeds of the ad valorem taxes levied in a redevelopment area are distributed in accordance with paragraph (a) of subsection 1 of NRS 279.676.
Sec. 13. Taxing entity means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.
Sec. 14. 1. On or before August 1 of each fiscal year, the tax receiver of each county in which is located a redevelopment area for which there is any incremental assessed value shall determine for each parcel or other taxable unit of property in that redevelopment area, other than any property to which subsection 2 applies, for which the owner thereof is entitled to a partial abatement of taxes pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, and the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping tax rate applicable to the property for the immediately preceding fiscal year:
κ2005 Statutes of Nevada, Page 1741 (CHAPTER 419, SB 509)κ
combined overlapping tax rate applicable to the property for the immediately preceding fiscal year:
(a) The amount which equals the lesser of:
(1) The amount of the partial abatement of taxes to which the owner of that property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year; or
(2) The product of the parcel-proportionate share of the base value for that property for the current fiscal year and the greater of:
(I) Zero; or
(II) The rate that results when the rate obtained by adding the combined overlapping tax rate for that property for the immediately preceding fiscal year to a percentage of that rate which is equal to the abatement percentage applicable to the property for the current fiscal year, is subtracted from the combined overlapping tax rate for that property for the current fiscal year; and
(b) The amount which equals the difference between:
(1) The amount determined pursuant to paragraph (a); and
(2) The amount of the partial abatement of taxes to which the owner of that property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year.
2. On or before August 1 of each fiscal year, the Department shall determine for each parcel or other taxable unit of property which is valued pursuant to NRS 361.320 or 361.323 and apportioned to a redevelopment area for which there is any incremental assessed value, and for which the owner thereof is entitled to a partial abatement of taxes pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, and the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping tax rate applicable to the property for the immediately preceding fiscal year:
(a) The amount which equals the lesser of:
(1) The amount of the partial abatement of taxes to which the owner of that property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year; or
(2) The product of the parcel-proportionate share of the base value for that property for the current fiscal year and the greater of:
(I) Zero; or
(II) The rate that results when the rate obtained by adding the combined overlapping tax rate for that property for the immediately preceding fiscal year to a percentage of that rate which is equal to the abatement percentage applicable to the property for the current fiscal year, is subtracted from the combined overlapping tax rate for that property for the current fiscal year; and
(b) The amount which equals the difference between:
(1) The amount determined pursuant to paragraph (a); and
(2) The amount of the partial abatement of taxes to which the owner of that property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year.
3. That portion of the amount of any reduction in the ad valorem taxes levied on any parcel or other taxable unit of property to which subsection 1 or 2 applies for a fiscal year as a result of the application of sections 3, 3.5 and 4 of chapter 20, Statutes of Nevada 2005, which is determined pursuant to:
κ2005 Statutes of Nevada, Page 1742 (CHAPTER 419, SB 509)κ
(a) Paragraph (a) of subsection 1 or paragraph (a) of subsection 2 for each such parcel or other taxable unit of property for which the combined overlapping tax rate for the current fiscal year has increased from the combined overlapping tax rate for the immediately preceding fiscal year by a percentage that exceeds the abatement percentage for that property, must be deducted from the amount of ad valorem taxes that each redevelopment taxing entity which has increased its rate of ad valorem taxes applicable to the property from the rate for the immediately preceding fiscal year, would otherwise be entitled to receive for the current fiscal year from the ad valorem taxes levied on the base-year assessed value for that property in the same proportion as that increase in its ad valorem tax rate bears to the total increase in the combined overlapping tax rate applicable to the property for the current fiscal year; and
(b) Paragraph (b) of subsection 1 or paragraph (b) of subsection 2 must be deducted from the amount of ad valorem taxes the redevelopment agency and each redevelopment taxing entity would otherwise be entitled to receive pursuant to paragraphs (b), (c) and (d) of subsection 1 of NRS 279.676 for the current fiscal year in the same proportion as each of those entities would otherwise share in the total amount distributed pursuant to those paragraphs.
Sec. 15. 1. On or before August 1 of each fiscal year, the tax receiver of each county shall determine for each parcel or other taxable unit of property located in that county, other than any property to which subsection 2 or section 14 of this act applies, for which the owner thereof is entitled to a partial abatement of taxes pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, and the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:
(a) The amount of the partial abatement of taxes to which the owner of the property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year; or
(b) The product of the assessed value of the property for the current fiscal year and the difference between:
(1) The combined overlapping tax rate applicable to the property for the current fiscal year; and
(2) The combined overlapping tax rate applicable to the property for the immediately preceding fiscal year.
2. On or before August 1 of each fiscal year, the Department shall determine for each parcel or other taxable unit of property which is valued pursuant to NRS 361.320 or 361.323, other than any property to which section 14 of this act applies, and for which the owner thereof is entitled to a partial abatement of taxes pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, and the combined overlapping tax rate applicable to the property for the current fiscal year exceeds the combined overlapping tax rate applicable to the property for the immediately preceding fiscal year, the amount which equals the lesser of:
(a) The amount of the partial abatement of taxes to which the owner of the property is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, for the current fiscal year; or
(b) The product of the assessed value of the property for the current fiscal year and the difference between:
κ2005 Statutes of Nevada, Page 1743 (CHAPTER 419, SB 509)κ
(1) The combined overlapping tax rate applicable to the property for the current fiscal year; and
(2) The combined overlapping tax rate applicable to the property for the immediately preceding fiscal year.
3. That portion of the amount of any reduction in the ad valorem taxes levied on any parcel or other taxable unit of property to which subsection 1 or 2 applies for a fiscal year as a result of the application of sections 3, 3.5 and 4 of chapter 20, Statutes of Nevada 2005, which is determined pursuant to subsection 1 or 2 must be deducted from the amount of ad valorem taxes that each taxing entity which has increased its rate of ad valorem taxes applicable to the property from the rate for the immediately preceding fiscal year, would otherwise be entitled to receive for the current fiscal year in the same proportion as that increase in its ad valorem tax rate bears to the total increase in the combined overlapping tax rate applicable to the property for the current fiscal year.
Sec. 16. Notwithstanding any other provision of sections 3 to 7, inclusive, of chapter 20, Statutes of Nevada 2005, and sections 2 to 17, inclusive, of this act to the contrary, after a parcel or other taxable unit of real property is annexed to a taxing entity:
1. The amount otherwise required to be determined pursuant to paragraph (a) of subsection 1 of section 3, paragraph (a) of subsection 1 of section 3.5, paragraph (a) of subsection 1 of section 4 or paragraph (a) of subsection 2 of section 4 of chapter 20, Statutes of Nevada 2005, with respect to that property for the first fiscal year in which that taxing entity is entitled to levy or require the levy on its behalf of any ad valorem taxes on the property as a result of that annexation of the property, shall be deemed to be the amount of ad valorem taxes which would have been levied on the property for the immediately preceding fiscal year if the annexation had occurred 1 year earlier, based upon the tax rates that would have applied to the property for the immediately preceding fiscal year if the annexation had occurred 1 year earlier and without regard to any exemptions from taxation that applied to the property for the immediately preceding fiscal year but do not apply to the property for the current fiscal year; and
2. For the purposes of any other calculations required pursuant to the provisions of sections 3 to 7, inclusive, of chapter 20, Statutes of Nevada 2005, and sections 2 to 17, inclusive, of this act, the combined overlapping tax rate applicable to that property for the fiscal year immediately preceding the first fiscal year in which that taxing entity is entitled to levy or require the levy on its behalf of any ad valorem taxes on the property as a result of that annexation of the property, shall be deemed to be the combined overlapping tax rate that would have applied to the property for that year if the annexation had occurred 1 year earlier.
Sec. 17. 1. The Committee on Local Government Finance may adopt:
(a) Such regulations as it determines to be appropriate for the administration and interpretation of the provisions of sections 14, 15 and 16 of this act; and
(b) Regulations which provide, in a manner that is consistent with the provisions of sections 14, 15 and 16 of this act, methodologies for allocating among the appropriate taxing entities the amount of any reduction in the ad valorem taxes levied on a parcel or other taxable unit of real property as a result of the application of sections 3, 3.5 and 4 of chapter 20, Statutes of Nevada 2005, if the property is included in or excluded from the boundaries of a redevelopment area, tax increment area or taxing entity after the effective date of this act.
κ2005 Statutes of Nevada, Page 1744 (CHAPTER 419, SB 509)κ
chapter 20, Statutes of Nevada 2005, if the property is included in or excluded from the boundaries of a redevelopment area, tax increment area or taxing entity after the effective date of this act.
2. Any regulations adopted by the Committee on Local Government Finance pursuant to this section must be adopted in the manner prescribed for state agencies in chapter 233B of NRS.
Sec. 18. 1. On or before March 5 of each year, the county assessor of each county shall provide to the Department, in addition to the information provided pursuant to NRS 361.390, such information regarding each parcel or other taxable unit of property in the county as the Department determines to be necessary to carry out subsection 2.
2. On or before March 25 of each year, the Department shall provide to each local government in this State a projection of the revenue the local government may receive for the upcoming fiscal year from ad valorem taxes.
Sec. 19. 1. A taxpayer who is aggrieved by a determination of the applicability of a partial abatement from taxation pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005, may, if the property which is the subject of that determination:
(a) Is not valued pursuant to NRS 361.320 or 361.323, submit a written petition for the review of that determination to the tax receiver of the county in which the property is located. The tax receiver shall, after consulting with the county assessor of that county regarding the determination and within 30 days after receiving the petition, render a decision on the petition and notify the taxpayer of that decision.
(b) Is valued pursuant to NRS 361.320 or 361.323, submit a written petition for the review of that determination to the Department. The Department shall, within 30 days after receiving the petition, render a decision on the petition and notify the taxpayer of that decision.
2. A taxpayer who is aggrieved by a decision rendered by a tax receiver or the Department pursuant to subsection 1 may, within 30 days after receiving notice of that decision, appeal the decision to the Nevada Tax Commission.
3. A taxpayer who is aggrieved by a determination of the Nevada Tax Commission rendered on an appeal made pursuant to subsection 2 is entitled to a judicial review of that determination.
Sec. 20. 1. If the tax receiver of a county determines that a taxpayer has claimed and is entitled to a partial abatement from taxation for a fiscal year pursuant to section 3 of chapter 20, Statutes of Nevada 2005, but that the taxpayer for good cause failed to claim the partial abatement before the extension of the tax roll for that fiscal year pursuant to NRS 361.465, the tax receiver may, with the concurrence of the tax assessor and without the approval of the board of county commissioners of that county, correct the tax roll of the county at any time during that fiscal year to indicate that the affected property is eligible for that partial abatement for that fiscal year.
2. If the tax receiver corrects the tax roll of the county pursuant to subsection 1 to indicate that the property of a taxpayer is eligible for a partial abatement from taxation for a fiscal year, the taxpayer is entitled to such a tax credit or refund, or combination thereof, as the tax receiver deems appropriate.
κ2005 Statutes of Nevada, Page 1745 (CHAPTER 419, SB 509)κ
Sec. 21. Any person who falsely claims to be entitled to a partial abatement from taxation pursuant to section 3 or 3.5 of chapter 20, Statutes of Nevada 2005, with the intent to evade the payment of the amount of ad valorem taxes required by law shall pay a penalty of three times the amount of the tax deficiency, in addition to the amount of the tax due and any other penalty provided by law.
Sec. 22. Any partial abatements and partial exemptions from taxation to which a person may be entitled pursuant to this chapter must be applied in the following order of priority:
1. Any partial abatement to which the person is entitled pursuant to section 3, 3.5 or 4 of chapter 20, Statutes of Nevada 2005.
2. Any partial exemptions to which the person is entitled pursuant to this chapter.
3. Any partial abatements to which the person is entitled pursuant to this chapter other than a partial abatement described in subsection 1.
Sec. 23. NRS 361.4545 is hereby amended to read as follows:
361.4545 1. On or before May 5 of each year , [or within 5 days after receiving the projections of revenue from the Department, whichever is later,] the ex officio tax receivers shall prepare and cause to be published in a newspaper of general circulation in their respective counties, a notice which contains at least the following information:
(a) A statement that the notice is not a bill for taxes owed but an informational notice. The notice must state:
(1) That public hearings will be held on the dates listed in the notice to adopt budgets and tax rates for the fiscal year beginning on July 1;
(2) That the purpose of the public hearings is to receive opinions from members of the public on the proposed budgets and tax rates before final action is taken thereon; and
(3) The tax rate to be imposed by the county and each political subdivision within the county for the ensuing fiscal year if the tentative budgets which affect the property in those areas become final budgets.
(b) A brief description of the limitation imposed by the Legislature on the revenue of the local governments.
(c) The dates, times and locations of all of the public hearings on the tentative budgets which affect the taxes on property.
(d) The names and addresses of the county assessor and ex officio tax receiver who may be consulted for further information.
(e) A brief statement of how property is assessed and how the combined tax rate is determined.
Κ The notice must be displayed in the format used for news and must be printed on at least one-half of a page of the newspaper.
2. Each ex officio tax receiver shall prepare and cause to be published in a newspaper of general circulation within the county:
(a) A notice, displayed in the format used for news and printed in not less than 8-point type, disclosing any increase in the property taxes as a result of any change in the tentative budget.
(b) A notice, displayed in the format used for advertisements and printed in not less than 8-point type on at least one quarter of a page of the newspaper, disclosing any amount in cents on each $100 of assessed valuation by which the highest combined tax rate for property in the county exceeds $3.64 on each $100 of assessed valuation.
κ2005 Statutes of Nevada, Page 1746 (CHAPTER 419, SB 509)κ
Κ These notices must be published within 10 days after the receipt of the information pursuant to NRS 354.596.
Sec. 24. NRS 361.455 is hereby amended to read as follows:
361.455 1. Unless individual tax rates are reduced pursuant to NRS 361.4547, immediately upon adoption of the final budgets, if the combined tax rate exceeds the limit imposed by NRS 361.453, the chairman of the board of county commissioners in each county concerned shall call a meeting of the governing boards of each of the local governments within the county for the purpose of establishing a combined tax rate that conforms to the statutory limit. The chairman shall convene the meeting no later than June [13] 20 of each year.
2. The governing boards of the local governments shall meet in public session and the county clerk shall keep appropriate records, pursuant to regulations of the Department, of all proceedings. The costs of taking and preparing the record of the proceedings, including the costs of transcribing and summarizing tape recordings, must be borne by the county and participating incorporated cities in proportion to the final tax rate as certified by the Department. The chairman of the board of county commissioners or his designee shall preside at the meeting. The governing boards shall explore areas of mutual concern so as to agree upon a combined tax rate that does not exceed the statutory limit.
3. The governing boards shall determine final decisions by a unanimous vote of all entities present and qualified to vote, as defined in this subsection. No ballot may be cast on behalf of any governing board unless a majority of the individual board is present. A majority vote of all members of each governing board is necessary to determine the ballot cast for that entity. All ballots must be cast not later than the day following the day the meeting is convened. The district attorney is the legal adviser for such proceedings.
4. The county clerk shall immediately thereafter advise the Department of the results of the ballots cast and the tax rates set for local governments concerned. If the ballots for the entities present at the meeting in the county are not unanimous, the county clerk shall transmit all records of the proceedings to the Department within 5 days after the meeting.
5. If a unanimous vote is not obtained and the combined rate in any county together with the established state tax rate exceeds the statutory limit, the Department shall examine the record of the discussions and the budgets of all local governments concerned. On June 25 or, if June 25 falls on a Saturday or Sunday, on the Monday next following, the Nevada Tax Commission shall meet to set the tax rates for the next succeeding year for all local governments so examined. In setting the tax rates for the next succeeding year the Nevada Tax Commission shall not reduce that portion of the proposed tax rate of the county school district for the operation and maintenance of public schools.
6. Any local government affected by a rate adjustment, made in accordance with the provisions of this section, which necessitates a budget revision shall file a copy of its revised budget by July 30 next after the approval and certification of the rate by the Nevada Tax Commission.
7. A copy of the certificate of the Nevada Tax Commission sent to the board of county commissioners must be forwarded to the county auditor.
κ2005 Statutes of Nevada, Page 1747 (CHAPTER 419, SB 509)κ
Sec. 25. Section 3 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 3. The Legislature hereby finds and declares that an increase in the tax bill of the owner of a home by more than 3 percent over the tax bill of that homeowner for the previous year constitutes a severe economic hardship within the meaning of subsection 10 of Section 1 of Article 10 of the Nevada Constitution. The Legislature therefore directs a partial abatement of taxes for such homeowners as follows:
1. Except as otherwise provided in [subsection 2] or required to carry out the provisions of subsection 2 and sections 5 [and] to 7 , inclusive, of this act, the owner of a single-family residence which is the primary residence of the owner is entitled to a partial abatement of the ad valorem taxes levied in a county on that property each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:
(a) The amount of all the ad valorem taxes:
(1) Levied in that county on the property for the immediately preceding fiscal year; or
(2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,
Κ whichever is greater; and
(b) Three percent of the amount determined pursuant to paragraph (a).
2. The provisions of subsection 1 do not apply to any property for which:
(a) No assessed valuation was separately established for the immediately preceding fiscal year; or
(b) The provisions of subsection 1 of section 4 of this act provide a greater abatement from taxation.
3. [The] Except as otherwise required to carry out the provisions of sections 14 to 17, inclusive, of Senate Bill No. 509 of this session and any regulations adopted pursuant thereto, the amount of any reduction in the ad valorem taxes levied in a county [which, if not] for a fiscal year as a result of the application of the provisions of subsection 1 [, would otherwise have been collected for any property for a fiscal year must, except as otherwise required to carry out the provisions of section 6 of this act,] must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.
κ2005 Statutes of Nevada, Page 1748 (CHAPTER 419, SB 509)κ
[The provisions of this subsection and section 6 of this act must not be applied in any manner that reduces the amount of the partial abatement to which an owner of property is entitled pursuant to subsection 1 for any fiscal year.]
4. The Nevada Tax Commission shall adopt such regulations as it deems appropriate to carry out this section [.] , including, without limitation, regulations providing a methodology for applying the partial abatement provided pursuant to subsection 1 to a parcel of real property of which only a portion qualifies as a single-family residence which is the primary residence of the owner and the remainder is used in another manner.
5. The owner of a single-family residence does not become ineligible for the partial abatement provided pursuant to subsection 1 as a result of:
(a) The operation of a home business out of a portion of that single-family residence; or
(b) The manner in which title is held by the owner if the owner occupies the residence, including, without limitation, if the owner has placed the title in a trust for purposes of estate planning.
6. For the purposes of this section:
(a) Ad valorem taxes levied in a county means any ad valorem taxes levied by the State or any other taxing entity in a county.
(b) Primary residence of the owner means a residence which:
(1) Is designated by the owner as the primary residence of the owner in this State, exclusive of any other residence of the owner in this State; and
(2) Is not rented, leased or otherwise made available for exclusive occupancy by any person other than the owner of the residence and members of the family of the owner of the residence.
(c) Single-family residence means a parcel or other unit of real property or unit of personal property which is intended or designed to be occupied by one family with facilities for living, sleeping, cooking and eating.
[(c)] (d) Taxing entity means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.
[(d)] (e) Unit of personal property includes, without limitation, any:
(1) Mobile or manufactured home, whether or not the owner thereof also owns the real property upon which it is located; or
(2) Taxable unit of a condominium, common-interest community, planned unit development or similar property,
Κ if classified as personal property for the purposes of this chapter.
[(e)] (f) Unit of real property includes, without limitation, any taxable unit of a condominium, common-interest community, planned unit development or similar property, if classified as real property for the purposes of this chapter.
Sec. 26. Section 3.5 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 3.5. The Legislature hereby finds and declares that many Nevadans who cannot afford to own their own homes would be adversely affected by large unanticipated increases in property taxes, as those tax increases are passed down to renters in the form of rent increases and therefore the benefits of a charitable exemption pursuant to subsection 8 of Section 1 of Article 10 of the Nevada Constitution should be afforded to those Nevadans through an abatement granted to the owners of residential rental dwellings who charge rent that does not exceed affordable housing standards for low-income housing.
κ2005 Statutes of Nevada, Page 1749 (CHAPTER 419, SB 509)κ
as those tax increases are passed down to renters in the form of rent increases and therefore the benefits of a charitable exemption pursuant to subsection 8 of Section 1 of Article 10 of the Nevada Constitution should be afforded to those Nevadans through an abatement granted to the owners of residential rental dwellings who charge rent that does not exceed affordable housing standards for low-income housing. The Legislature therefore directs a partial abatement of taxes for such owners as follows:
1. Except as otherwise provided in [subsection 2] or required to carry out the provisions of subsection 2 and sections 5 [and] to 7 , inclusive, of this act, if the amount of rent collected from each of the tenants of a residential dwelling does not exceed the fair market rent for the county in which the dwelling is located, as most recently published by the United States Department of Housing and Urban Development, the owner of the dwelling is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:
(a) The amount of all the ad valorem taxes:
(1) Levied in that county on the property for the immediately preceding fiscal year; or
(2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,
Κ whichever is greater; and
(b) Three percent of the amount determined pursuant to paragraph (a).
2. The provisions of subsection 1 do not apply to:
(a) Any hotels, motels or other forms of transient lodging;
(b) Any property for which no assessed valuation was separately established for the immediately preceding fiscal year; and
(c) Any property for which the provisions of subsection 1 of section 4 of this act provide a greater abatement from taxation.
3. [The] Except as otherwise required to carry out the provisions of sections 14 to 17, inclusive, of Senate Bill No. 509 of this session and any regulations adopted pursuant thereto, the amount of any reduction in the ad valorem taxes levied in a county [which, if not] for a fiscal year as a result of the application of the provisions of subsection 1 [, would otherwise have been collected for any property for a fiscal year must, except as otherwise required to carry out the provisions of section 6 of this act,] must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.
κ2005 Statutes of Nevada, Page 1750 (CHAPTER 419, SB 509)κ
to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year. [The provisions of this subsection and section 6 of this act must not be applied in any manner that reduces the amount of the partial abatement to which an owner of property is entitled pursuant to subsection 1 for any fiscal year.]
4. The Nevada Tax Commission shall adopt such regulations as it deems appropriate to carry out this section.
5. For the purposes of this section:
(a) Ad valorem taxes levied in a county means any ad valorem taxes levied by the State or any other taxing entity in a county.
(b) Taxing entity means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.
Sec. 27. Section 4 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 4. 1. Except as otherwise provided in [subsection 3] or required to carry out the provisions of subsection 3 and sections 5 [and] to 7 , inclusive, of this act, the owner of any parcel or other taxable unit of property, including property entered on the central assessment roll, for which an assessed valuation was separately established for the immediately preceding fiscal year is entitled to a partial abatement of the ad valorem taxes levied in a county on that property each fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any increase in the assessed valuation of the property from the immediately preceding fiscal year as a result of any improvement to or change in the actual or authorized use of the property, exceeds the sum obtained by adding:
(a) The amount of all the ad valorem taxes:
(1) Levied in that county on the property for the immediately preceding fiscal year; or
(2) Which would have been levied in that county on the property for the immediately preceding fiscal year if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,
Κ whichever is greater; and
(b) A percentage of the amount determined pursuant to paragraph (a) which is equal to:
(1) The lesser of:
(I) The average percentage of change in the assessed valuation of all the taxable property in the county, as determined by the Department, over the fiscal year in which the levy is made and the 9 immediately preceding fiscal years; or
(II) Eight percent; or
(2) Twice the percentage of increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (All Items) for the immediately preceding calendar year,
Κ whichever is greater.
κ2005 Statutes of Nevada, Page 1751 (CHAPTER 419, SB 509)κ
2. Except as otherwise provided in or required to carry out the provisions of sections 5 [and] to 7 , inclusive, of this act, the owner of any remainder parcel of real property for which no assessed valuation was separately established for the immediately preceding fiscal year, is entitled to a partial abatement of the ad valorem taxes levied in a county on that property for a fiscal year equal to the amount by which the product of the combined rate of all ad valorem taxes levied in that county on the property for that fiscal year and the amount of the assessed valuation of the property which is taxable in that county for that fiscal year, excluding any amount of that assessed valuation attributable to any improvement to or change in the actual or authorized use of the property that would not have been included in the calculation of the assessed valuation of the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year, exceeds the sum obtained by adding:
(a) The amount of all the ad valorem taxes:
(1) Which would have been levied in that county on the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year based upon all the assumptions, costs, values, calculations and other factors and considerations that would have been used for the valuation of that property for that prior fiscal year; or
(2) Which would have been levied in that county on the property for the immediately preceding fiscal year if an assessed valuation had been separately established for that property for that prior fiscal year based upon all the assumptions, costs, values, calculations and other factors and considerations that would have been used for the valuation of that property for that prior fiscal year, and if not for any exemptions from taxation that applied to the property for that prior fiscal year but do not apply to the property for the current fiscal year,
Κ whichever is greater; and
(b) A percentage of the amount determined pursuant to paragraph (a) which is equal to:
(1) The lesser of:
(I) The average percentage of change in the assessed valuation of all the taxable property in the county, as determined by the Department, over the fiscal year in which the levy is made and the 9 immediately preceding fiscal years; or
(II) Eight percent; or
(2) Twice the percentage of increase in the Consumer Price Index for all Urban Consumers, U.S. City Average (All Items) for the immediately preceding calendar year,
Κ whichever is greater.
3. The provisions of subsection 1 do not apply to any property for which the provisions of subsection 1 of section 3 or subsection 1 of section 3.5 of this act provide a greater abatement from taxation.
4. [The] Except as otherwise required to carry out the provisions of sections 14 to 17, inclusive, of Senate Bill No. 509 of this session and any regulations adopted pursuant thereto, the amount of any reduction in the ad valorem taxes levied in a county [which, if not] for a fiscal year as a result of the application of the provisions of subsections 1 and 2 [, would otherwise have been collected for any property for a fiscal year must, except as otherwise required to carry out the provisions of section 6 of this act,] must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.
κ2005 Statutes of Nevada, Page 1752 (CHAPTER 419, SB 509)κ
amount of any reduction in the ad valorem taxes levied in a county [which, if not] for a fiscal year as a result of the application of the provisions of subsections 1 and 2 [, would otherwise have been collected for any property for a fiscal year must, except as otherwise required to carry out the provisions of section 6 of this act,] must be deducted from the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for that fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year. [The provisions of this subsection and section 6 of this act must not be applied in any manner that reduces the amount of the partial abatement to which an owner of property is entitled pursuant to subsection 1 or 2 for any fiscal year.]
5. The Nevada Tax Commission shall adopt such regulations as it deems appropriate to ensure that this section is carried out in a uniform and equal manner.
6. For the purposes of this section:
(a) Ad valorem taxes levied in a county means any ad valorem taxes levied by the State or any other taxing entity in a county.
(b) Remainder parcel of real property means a parcel of real property which remains after the creation of new parcels of real property for development from one or more existing parcels of real property, if the use of that remaining parcel has not changed from the immediately preceding fiscal year.
(c) Taxing entity means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.
Sec. 28. Section 5 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 5. 1. Notwithstanding the provisions of sections 3, 3.5 and 4 of this act, if the taxable value of any parcel or other taxable unit of property:
(a) Decreases by 15 percent or more from its taxable value on :
(1) July 1, 2003; or
(2) July 1 of the second year immediately preceding the lien date for the current year,
Κ whichever is later; and
(b) For any fiscal year beginning on or after July 1, 2005, increases by 15 percent or more from its taxable value for the immediately preceding fiscal year,
Κ the amount of any ad valorem taxes levied in a county which, if not for the provisions of sections 3, 3.5 and 4 of this act, would otherwise have been collected for the property for that fiscal year as a result of that increase in taxable value, excluding any amount attributable to any increase in the taxable value of the property above the taxable value of the property on [July 1, 2003,] the most recent date determined pursuant to paragraph (a), must be levied on the property and carried forward each fiscal year, without any penalty or interest, in such a manner that one-third of that amount may be collected during that fiscal year and each of the succeeding 2 fiscal years.
κ2005 Statutes of Nevada, Page 1753 (CHAPTER 419, SB 509)κ
collected during that fiscal year and each of the succeeding 2 fiscal years.
2. The amount of any taxes which are carried forward and levied on any property pursuant to this section must be added to the amount of ad valorem taxes each taxing entity would otherwise be entitled to receive for a fiscal year in the same proportion as the rate of ad valorem taxes levied in the county on the property by or on behalf of that taxing entity for that fiscal year bears to the combined rate of all ad valorem taxes levied in the county on the property by or on behalf of all taxing entities for that fiscal year.
3. The Nevada Tax Commission shall adopt such regulations as it deems appropriate to ensure that this section is carried out in a uniform and equal manner.
4. For the purposes of this section:
(a) Ad valorem taxes levied in a county means any ad valorem taxes levied by the State or any other taxing entity in a county.
(b) Taxing entity means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.
Sec. 29. Chapter 20, Statutes of Nevada 2005, is hereby amended by adding thereto a new section designated sec. 5.5, following sec. 5, to read as follows:
Sec. 5.5. 1. Except as otherwise provided by specific statute, if any legislative act which becomes effective after April 6, 2005, imposes a duty on a taxing entity to levy a new ad valorem tax or to increase the rate of an existing ad valorem tax, the amount of the new tax or increase in the rate of the existing tax is exempt from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act.
2. For the purposes of this section, taxing entity does not include the State.
Sec. 30. Section 6 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 6. 1. A taxing entity may, if otherwise so authorized by law, increase the rate of an ad valorem tax imposed by or on behalf of that taxing entity for the payment of [an obligation] any obligations secured by the proceeds of that tax if:
(a) The taxing entity determines that [as a result of the application of sections 3, 3.5 and 4 of this act,] the additional tax rate is necessary for the taxing entity to satisfy [that obligation;] those obligations; and
(b) The additional tax rate is stated separately on the tax bill of each taxpayer, with a separate line that identifies the portion of the tax liability resulting from the additional levy.
2. For the purposes of subsection 1, an additional tax rate shall be deemed to be necessary to satisfy the obligations secured by the proceeds of an ad valorem tax if the rate of the ad valorem tax most recently levied for the payment of those obligations will not produce sufficient revenue, after considering the effect of the partial abatements from taxation provided pursuant to sections 3, 3.5 and 4 of this act, to satisfy those obligations during the next fiscal year.
κ2005 Statutes of Nevada, Page 1754 (CHAPTER 419, SB 509)κ
3. Except as otherwise provided in this subsection, any increase in the rate of an ad valorem tax authorized pursuant to this section must be included in the calculation of the partial abatements from taxation provided pursuant to sections 3, 3.5 and 4 of this act. An increase in the rate of an ad valorem tax authorized pursuant to this section is exempt from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act if the obligations for which that increase is imposed are issued:
(a) Before July 1, 2005; or
(b) On or after July 1, 2005, and, before the issuance of the obligations:
(1) The governing body of the taxing entity issuing the obligations makes a finding that no increase in the rate of an ad valorem tax is anticipated to be necessary for the payment of the obligations during the term thereof; and
(2) The debt management commission of the county in which the taxing entity is located approves that finding.
4. For the purposes of this section, taxing entity [means the State and any political subdivision or other legal entity in this State which has the right to receive money from ad valorem taxes.] does not include the State.
Sec. 31. Section 7 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 7. 1. In addition or as an alternative to increasing the rate of an ad valorem tax pursuant to section 6 of this act, a taxing entity may, if otherwise so authorized by law and upon the approval of a majority of the registered voters [of the county in which the taxing entity is located,] residing within the boundaries of the taxing entity and voting on the question, levy or require the levy on its behalf of an ad valorem tax at a rate that is exempt from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act.
2. The exemption set forth in subsection 1 from the partial abatements provided in sections 3, 3.5 and 4 of this act does not apply to any portion of a rate that was approved by the voters before [the effective date of this act.] April 6, 2005.
3. A question that is placed on the ballot pursuant to subsection 1 [must] :
(a) Must clearly indicate that any amount which is approved by the voters will be outside of the caps on an individuals liability for ad valorem taxes [.] ; and
(b) May indicate that no additional taxes or tax levy will result from the approval of the question by the voters only if that approval will not result in a reduction of the revenue of any other taxing entity.
4. For the purpose of obtaining the exemption set forth in subsection 1, a question submitted pursuant to NRS 350.020, 354.59817, 387.3285 or 387.3287 may be combined into a single question with a question submitted pursuant to subsection 1. If a question submitted by or on behalf of a taxing entity pursuant to NRS 350.020 is combined into a single question with a question submitted pursuant to subsection 1 and the combined question is approved by a majority of the registered voters voting on the question, the amount of the tax which the governing body of that taxing entity determines to be needed from year to year to repay the principal of and interest on the amount of any general obligations approved pursuant to that question is, except as otherwise provided in subsection 2 or unless the question provides otherwise, exempt pursuant to subsection 1 from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act.
κ2005 Statutes of Nevada, Page 1755 (CHAPTER 419, SB 509)κ
question, the amount of the tax which the governing body of that taxing entity determines to be needed from year to year to repay the principal of and interest on the amount of any general obligations approved pursuant to that question is, except as otherwise provided in subsection 2 or unless the question provides otherwise, exempt pursuant to subsection 1 from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act.
5. For the purposes of this section, taxing entity [means any political subdivision or other legal entity, other than the State, which has the right to receive money from any ad valorem taxes levied in a county.] does not include the State.
Sec. 32. Section 7.5 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 7.5. The Nevada Tax Commission shall adopt regulations which:
1. Provide for the creation of a simple, easily understood form [to be filled out] which may be completed by the owner [or operator] of any real property used to conduct a business [to apply to the county assessor to request that the property of the business be valued pursuant to the income approach to measure any obsolescence of the property for tax assessment purposes.] and used to:
(a) Compute and determine the value of the property using the income approach and to compare that value to the existing taxable value of the property to determine the existence of any obsolescence; and
(b) Apply to the appropriate county assessor or board of equalization for computation of the taxable value of the property in accordance with subsection 5 of NRS 361.227.
2. Clearly set forth the methodology for applying the income approach to valuation for tax purposes of real property used [in] to conduct a business [when necessary to measure the obsolescence of the property in language that is likely to make the methodology easily understood by any business owner.
3. Provide a procedure for a business to use the form required by subsection 1 in the most efficient manner possible to supply the information necessary to enable the county assessor to apply the income approach to the property of the business.] to determine whether obsolescence is a factor. The methodology must be described in a manner that may be easily understood by the owners of such property.
3. Will make available to the owner of any real property used to conduct a business information that will allow the owner to apply the income approach to establish the full cash value of the property for the purpose of comparing that value to the taxable value established by the county assessor.
Sec. 33. Section 8 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 8. NRS 361.465 is hereby amended to read as follows:
361.465 1. Immediately upon the levy of the tax rate the county clerk shall inform the county auditor of the action of the board of county commissioners. The county auditor shall proceed to extend the tax roll by:
κ2005 Statutes of Nevada, Page 1756 (CHAPTER 419, SB 509)κ
(a) Applying the tax rate levied to the total assessed valuation;
(b) Ascertaining the total taxes to be collected from each property owner; and
(c) Itemizing, separately for each property owner:
(1) The rate of tax applicable to him which is levied for each local government, debt service and any other recipient of the tax revenue so that the distribution of the total rate of tax levied upon his property is shown; and
(2) The total taxes that would have been collected from the owner if not for the provisions of sections 3 to [5,] 7, inclusive, of this act.
2. When the tax roll has been so extended, and not later than July 10 of each year, the county auditor shall deliver it, with his certificate attached, to the ex officio tax receiver of the county.
Sec. 34. Section 11 of Chapter 20, Statutes of Nevada 2005, is hereby amended to read as follows:
Sec. 11. 1. The provisions of sections 3 to 7, inclusive, of this act do not apply to any taxes imposed for any period ending on or before June 30, 2005.
2. Notwithstanding any provision of section 7 of this act to the contrary [, if] :
(a) If the levy of an ad valorem tax has been approved before April 6, 2005, by a majority of the registered voters [of a county before the effective date of this act] residing within the boundaries of a taxing entity and voting on the question, and no portion of that levy has commenced before [the effective date of this act,] April 6, 2005, that levy shall be deemed ; and
(b) If the issuance of a specified principal amount of general obligation bonds has been approved before April 6, 2005, by a majority of the registered voters residing within the boundaries of a taxing entity and voting on the question pursuant to NRS 350.020, and no portion of the levy required to repay the bonds has commenced before April 6, 2005, the levy required to repay the bonds shall be deemed,
Κ for all purposes, including, without limitation, for the purposes of section 7 of Senate Bill No. 509 of this session, to be approved and levied pursuant to section 7 of this act and to be exempt from each partial abatement from taxation provided pursuant to sections 3, 3.5 and 4 of this act.
3. For the purposes of this section, taxing entity means any political subdivision or other legal entity, other than the State, which has the right to receive money from any ad valorem taxes levied in a county.
Sec. 35. Section 9 of chapter 20, Statutes of Nevada 2005, is hereby repealed.
Sec. 36. Notwithstanding any provision of section 14 or 15 of this act to the contrary, the tax receiver of each county and the Department of Taxation:
1. Are not required to carry out the provisions of those sections before August 2, 2005; and
2. Shall carry out the provisions of those sections on or before October 1, 2005.
κ2005 Statutes of Nevada, Page 1757 (CHAPTER 419, SB 509)κ
Sec. 37. 1. This section and sections 1 to 17, inclusive, 19 to 22, inclusive, and 24 to 36, inclusive, of this act become effective upon passage and approval.
2. Sections 18 and 23 of this act become effective on January 1, 2006.
________
Senate Bill No. 389Committee on Taxation
CHAPTER 420
AN ACT relating to taxation; providing provisions for the creation of tax increment areas by municipalities to defray costs of certain undertakings; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Title 22 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 33, inclusive, of this act.
Sec. 2. Except as otherwise provided in this chapter or where the context otherwise requires, terms used or referred to in this chapter are as defined in the County Bond Law, insofar as they apply to counties, and the City Bond Law, insofar as they apply to cities, and except as otherwise provided in those laws, as defined in the Local Government Securities Law, but the definitions provided in this chapter, except where the context otherwise requires, govern the construction of this chapter.
Sec. 3. Clerk means the county clerk or city clerk, as appropriate.
Sec. 4. Cost of the undertaking or any phrase of similar import, means the cost of any project as the latter phrase is defined in the Local Government Securities Law.
Sec. 5. County means any county in this State.
Sec. 6. Engineer means the municipal engineer or firm of engineers employed by the municipality in connection with any undertaking, any project or the exercise of any power authorized in this chapter.
Sec. 7. Governing body means the board of county commissioners, the board of supervisors, the city council or the board of commissioners, as appropriate.
Sec. 8. Municipality means any county or city in this State.
Sec. 9. Newspaper means a newspaper printed in the English language at least once each calendar week of general circulation in the municipality.
Sec. 10. Posting means posting in three public places at or near the site of the undertaking or any project designated at least 20 days before the designated hearing or other time or event.
Sec. 11. Publication or publish means publication in at least one newspaper, except as otherwise expressly provided or necessarily implied in this chapter, at least once a week for 3 consecutive weeks by three weekly insertions, the first publication being at least 15 days before the designated time or event.
κ2005 Statutes of Nevada, Page 1758 (CHAPTER 420, SB 389)κ
insertions, the first publication being at least 15 days before the designated time or event.
Sec. 12. Specially benefited zone means an area which is specially benefited by an undertaking under this chapter.
Sec. 13. Tax increment account means a special account created pursuant to section 24 of this act.
Sec. 14. Tax increment area means the area:
1. Whose boundaries are coterminous with those of a specially benefited zone established as provided in section 17 of this act;
2. Specially benefited by an undertaking under this chapter;
3. Designated by ordinance as provided in section 24 of this act; and
4. In which is located the taxable property the assessed valuation of which is the basis for the allocation of tax proceeds to the tax increment account pursuant to section 27 of this act.
Sec. 15. Undertaking means any enterprise to acquire, improve, equip, or any combination thereof:
1. In the case of counties:
(a) A drainage and flood control project, as defined in NRS 244A.027;
(b) An overpass project, as defined in NRS 244A.037;
(c) A sewerage project, as defined in NRS 244A.0505;
(d) A street project, as defined in NRS 244A.053;
(e) An underpass project, as defined in NRS 244A.055; or
(f) A water project, as defined in NRS 244A.056.
2. In the case of cities:
(a) A drainage project or flood control project, as defined in NRS 268.682;
(b) An overpass project, as defined in NRS 268.700;
(c) A sewerage project, as defined in NRS 268.714;
(d) A street project, as defined in NRS 268.722;
(e) An underpass project, as defined in NRS 268.726; or
(f) A water project, as defined in NRS 268.728.
Sec. 16. (Deleted by amendment.)
Sec. 17. 1. Except as otherwise provided in subsections 2, 3 and 4, the governing body of a municipality, on the behalf and in the name of the municipality, may designate a tax increment area comprising any specially benefited zone within the municipality designated for the purpose of creating a special account for the payment of bonds or other securities issued to defray the cost of an undertaking, including, without limitation, the condemnation of property for an undertaking, as supplemented by the Local Government Securities Law, except as otherwise provided in this chapter.
2. The right-of-way property of a railroad company that is under the jurisdiction of the Surface Transportation Board must not be included in a tax increment area unless the inclusion of the property is mutually agreed upon by the governing body and the railroad company.
3. A tax increment area may not include a property that is, at the time the boundaries of the tax increment area are created, included within a redevelopment area previously established pursuant to the laws of this State.
4. The taxable property of a tax increment area must not be included in any subsequently created tax increment area until at least 50 years after the effective date of creation of the first tax increment area in which the property was included.
κ2005 Statutes of Nevada, Page 1759 (CHAPTER 420, SB 389)κ
the effective date of creation of the first tax increment area in which the property was included.
Sec. 18. 1. Whenever the governing body of a municipality is of the opinion that the interests of the municipality and the public require an undertaking, the governing body, by resolution, shall direct the engineer to prepare:
(a) Preliminary plans and a preliminary estimate of the cost of the undertaking, including, without limitation, all estimated financing costs to be capitalized with the proceeds of the securities issued by the municipality and all other estimated incidental costs relating to the undertaking;
(b) A statement of the proposed tax increment area pertaining thereto, the last finalized amount of the assessed valuation of the taxable property in such area, and the amount of taxes, including in such amount the sum of any unpaid taxes, whether or not delinquent, resulting from the last taxation of the property, based upon the records of the county assessor and the county treasurer; and
(c) A statement of the estimated amount of the tax proceeds to be credited annually to the tax increment account during the term of the proposed securities payable therefrom.
2. The resolution must describe the undertaking in general terms and must state:
(a) What portion of the expense of the undertaking will be paid with the proceeds of securities issued by the municipality in anticipation of tax proceeds to be credited to the tax increment account and payable wholly or in part therefrom;
(b) How the remaining portion of the expense of the undertaking, if any, is to be financed; and
(c) The basic security and any additional security for the payment of securities of the municipality pertaining to the undertaking.
3. The resolution must designate the tax increment area or its location, so that the various tracts of taxable real property and any taxable personal property can be identified and determined to be within or without the proposed tax increment area, but need not describe in minute detail each tract of real property proposed to be included within the tax increment area.
4. The engineer shall file with the clerk the preliminary plans, estimate of costs and statements.
5. Upon the filing of the preliminary plans, estimate of costs and statements with the clerk, the governing body shall examine the preliminary plans, estimate of costs and statements, and if the governing body approves of the preliminary plans, estimate of costs and statements, it shall by resolution provisionally order the undertaking.
Sec. 19. 1. In the resolution making the provisional order, the governing body shall set a time and place for a meeting to consider the ordering of the undertaking and hear all complaints, protests, objections and other relevant comments concerning the undertaking that are made in accordance with subsection 2. The time for the meeting must be at least 20 days after the date the governing body adopts the resolution that provisionally orders the undertaking.
2. The Federal Government, the State, any public body, or any natural person who resides in the municipality or owns taxable personal or real property in the municipality, or any representative of any such natural person or entity, may submit a complaint, protest, objection or other comment about the undertaking before the governing body.
κ2005 Statutes of Nevada, Page 1760 (CHAPTER 420, SB 389)κ
person or entity, may submit a complaint, protest, objection or other comment about the undertaking before the governing body. If such an entity or person desires to submit a complaint, protest, objection or other comment about the undertaking for consideration by the governing body, the entity or person must:
(a) File a written complaint, protest, objection or other comment about the undertaking with the clerk at least 3 days before the date of the meeting described in subsection 1;
(b) Present an oral complaint, protest, objection or other comment about the undertaking to the governing body at the meeting described in subsection 1; or
(c) Present the complaint, protest, objection or other comment in the manner required pursuant to paragraphs (a) and (b).
3. Notice of the meeting described in subsection 1 must be given:
(a) To all persons on the list established pursuant to section 20 of this act, by mailing;
(b) By posting; and
(c) By publication.
4. The notice must:
(a) Describe the undertaking and the project or projects relating thereto without mentioning minor details or incidentals;
(b) State the preliminary estimate of the cost of the undertaking, including all incidental costs, as stated in the preliminary plans, estimate of costs and statements of the engineer filed with the clerk pursuant to section 18 of this act;
(c) Describe the proposed tax increment area pertaining to the undertaking, the last finalized amount of the assessed valuation of the taxable property in the area, and the amount of taxes, including in such amount the sum of any unpaid taxes, whether or not delinquent, resulting from the last taxation of the property, based upon the records of the county assessor and the county treasurer;
(d) State what portion of the expense of the undertaking will be paid with the proceeds of securities issued by the municipality in anticipation of tax proceeds to be credited to the tax increment account and payable wholly or in part therefrom, and state the basic security and any additional security for the payment of securities of the municipality pertaining to the undertaking;
(e) State how the remaining portion of the expense, if any, is to be financed;
(f) State the estimated amount of the tax proceeds to be credited annually to the tax increment account pertaining to the undertaking during the term of the proposed securities payable from such proceeds, and the estimated amount of any net revenues derived annually from the operation of the project or projects pertaining to the undertaking and pledged for the payment of those securities;
(g) State the estimated aggregate principal amount to be borrowed by the issuance of the securities, excluding proceeds thereof to fund or refund outstanding securities, and the estimated total bond requirements of the securities;
(h) Find, determine and declare that the estimated tax proceeds to be credited to the tax increment account and any such net pledged revenues will be fully sufficient to pay the bond requirements of the securities as they become due; and
κ2005 Statutes of Nevada, Page 1761 (CHAPTER 420, SB 389)κ
will be fully sufficient to pay the bond requirements of the securities as they become due; and
(i) State the date, time and place of the meeting described in subsection 1.
5. All proceedings may be modified or rescinded wholly or in part by resolution adopted by the governing body at any time before the governing body passes the ordinance ordering the undertaking and creating the tax increment area and the tax increment account pertaining thereto pursuant to section 24 of this act.
6. Except as otherwise provided in this section, a public body shall not make a substantial change in the undertaking, the preliminary estimates, the proposed tax increment area or other statements relating thereto after the first publication or posting of notice or after the first mailing of notice to the property owners, whichever occurs first, without additional notice and a hearing pursuant to this section. A public body may delete a portion of the undertaking and property from the proposed tax increment area without notice and a hearing pursuant to this section. A subsequent final determination of the amount of assessed valuation of taxable property in the tax increment area or a subsequent levy of taxes does not adversely affect proceedings taken pursuant to this chapter.
7. The engineer may make minor changes in and develop the undertaking as to the time, plans and materials entering into the undertaking at any time before its completion. Any minor changes authorized by this subsection must be made a matter of public record at a public meeting of the governing body.
Sec. 20. 1. The governing body shall cause a list of the names and addresses of all persons who reside within a proposed tax increment area and who own taxable property within a proposed tax increment area to be created. The names and addresses for the list may be obtained from the records of the county assessor or from such other sources as the clerk or the engineer deems available. A list of such names and addresses pertaining to any tax increment area may be revised from time to time, but must be revised at least once every 12 months if the list is needed for a period longer than 12 months.
2. If notice is required to be mailed pursuant to this chapter, the notice must be sent by prepaid, first-class mail, to the last known address of the person to whom the notice is being sent.
3. The mailing of any notice required in this chapter must be verified by the affidavit or certificate of the engineer, clerk, deputy or other person mailing the notice. Each verification of mailing must be filed with the clerk and be retained in the records of the municipality at least until all bonds and any other securities pertaining to a tax increment account have been paid in full, or any claim is barred by a statute of limitations.
4. A verification of mailing is prima facie evidence of the mailing of the notice in accordance with the requirements of this section.
Sec. 21. 1. The posting of any notice required in this chapter must be verified by the affidavit or certificate of the engineer, clerk, deputy or other person posting the notice. Each verification of posting must be filed with the clerk and must be retained in the records of the municipality at least until the bonds and other securities pertaining to a tax increment account have been paid in full and until any claim is barred by a statute of limitations.
κ2005 Statutes of Nevada, Page 1762 (CHAPTER 420, SB 389)κ
2. A verification of posting is prima facie evidence of the posting of the notice in accordance with the requirements of this section.
Sec. 22. 1. Any notice required to be published pursuant to this chapter must be published in a newspaper of general circulation within the area of the tax increment area about which the notice relates at least once a week for 3 consecutive weeks. The first publication must be at least 15 days before the designated time or event, and the last publication must be at least 14 days after the first publication.
2. Publication is complete on the day of the last publication.
3. Any publication required in this chapter must be verified by the affidavit of the person who publishes the notice. Each verification of publication must be filed with the clerk and must be retained in the records of the municipality at least until all the bonds and any other securities pertaining to a tax increment account have been paid in full, or any claim is barred by a statute of limitations.
4. A verification of publication is prima facie evidence of the publication of the notice in accordance with the requirements of this section.
Sec. 23. 1. At the time and place of the hearing, the governing body shall cause to be read and consider all written complaints, protests, objections and other relevant comments made in accordance with section 19 of this act and to hear all oral complaints, protests, objections and other relevant comments made pursuant to that section.
2. After considering all written and oral complaints, protests, objections and other relevant comments that were properly submitted and after considering any other relevant material put forth, if the governing body determines that the undertaking, or a part thereof, is not in the public interest:
(a) The governing body, by resolution, shall make an order which states that the undertaking or a part of the undertaking, as appropriate, is not in the public interest and which states the reasons that the undertaking, or part of the undertaking, is not in the public interest;
(b) The public body may, by resolution and in accordance with the notice and hearing requirements of this chapter, modify the proposed tax increment area or undertaking to conform to the order; and
(c) The undertaking or part of the undertaking, as appropriate, must be stopped until the governing body adopts a new resolution for the undertaking which conforms to the order.
3. Any complaint, protest or objection to the regularity, validity and correctness of the proceedings taken and the documents made before the date of the hearing is waived unless presented in the manner specified in this chapter.
Sec. 24. 1. If, after considering all written and oral complaints, protests, objections and other relevant comments that were properly submitted and after considering any other relevant material put forth, the governing body determines that the undertaking is in the public interest and defines that public interest, the governing body shall determine whether to proceed with the undertaking. If the governing body has ordered any modification to an undertaking and desires to proceed, it shall direct the engineer to modify the plans, estimate of costs and statements, as appropriate.
κ2005 Statutes of Nevada, Page 1763 (CHAPTER 420, SB 389)κ
2. The engineer, if so directed, shall appropriately modify them and file the modified plans, estimate of costs and statements, as appropriate, with the clerk.
3. When the plans, estimates and statements are filed with the clerk and are satisfactory to the governing body, if the governing body wants to proceed with the undertaking, the governing body shall, by ordinance:
(a) Overrule all complaints, protests and objections not otherwise acted upon;
(b) Order the undertaking;
(c) Describe the tax increment area pertaining to the undertaking; and
(d) Create the tax increment account for the undertaking.
4. The governing body must adopt the ordinance in the same manner as a regular ordinance.
Sec. 25. 1. The governing body may amend an ordinance adopted pursuant to section 24 of this act by adopting a supplemental ordinance, introduced and adopted in the same manner as a regular ordinance, to:
(a) Modify the undertaking by specifying new projects or removing or modifying projects specified in the original ordinance;
(b) Add areas to or remove areas from a tax increment area; and
(c) Make such other changes, additions or deletions as the governing body determines will further its objectives within the tax increment area.
2. If a proposed amendment would add any area to or remove any area from a tax increment area, the governing body shall provide by mail notice of the date, time and place of the meeting at which the proposed amendment will be considered to the last known owner or owners of each tract of land proposed to be added or removed.
3. The amount of taxes to be allocated to a tax increment account pursuant to section 27 of this act must be computed separately for the original tax increment area and each addition of land thereto.
Sec. 26. The provisions of NRS 338.010 to 338.090, inclusive, apply to any construction work to be performed under any contract or other agreement related to an undertaking ordered by a governing body pursuant to this chapter.
Sec. 27. 1. After the effective date of the ordinance adopted pursuant to section 24 of this act, any taxes levied upon taxable property in the tax increment area each year by or for the benefit of the State, the municipality and any public body must be divided as follows:
(a) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of those taxing agencies upon the total sum of the assessed value of the taxable property in the tax increment area as shown upon the last equalized assessment roll used in connection with the taxation of the property by the taxing agency, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid.
(b) Except as otherwise provided in this section, the portion of the taxes levied each year in excess of the amount determined pursuant to paragraph (a) must be allocated to, and when collected must be paid into, the tax increment account pertaining to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, incurred by the municipality to finance or refinance, in whole or in part, the undertaking. Unless the total assessed valuation of the taxable property in the tax increment area exceeds the total assessed value of the taxable property in the area as shown by the last equalized assessment roll referred to in this subsection, all of the taxes levied and collected upon the taxable property in the area must be paid into the funds of the respective taxing agencies.
κ2005 Statutes of Nevada, Page 1764 (CHAPTER 420, SB 389)κ
assessed valuation of the taxable property in the tax increment area exceeds the total assessed value of the taxable property in the area as shown by the last equalized assessment roll referred to in this subsection, all of the taxes levied and collected upon the taxable property in the area must be paid into the funds of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the tax increment area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
(c) The amount of the taxes levied each year which are paid into the tax increment account pursuant to paragraph (b) must be limited by the governing body to an amount not to exceed the combined total amount required for annual debt service of the project or projects acquired, improved or equipped, or any combination thereof, as part of the undertaking.
(d) Any revenues generated within the tax increment district in excess of the amount referenced in paragraph (c), if any, will be paid into the funds of the respective taxing agencies in the same proportion as their base amount was distributed.
2. In any fiscal year, the total revenue paid to a tax increment area in combination with the total revenue paid to any other tax increment areas and any redevelopment agencies of a municipality must not exceed:
(a) In a municipality whose population is 100,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.
(b) In a municipality whose population is less than 100,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.
Κ If the revenue paid to a tax increment area must be limited pursuant to paragraph (a) or (b) and the municipality has more than one redevelopment agency or tax increment area, or one of each, the municipality shall determine the allocation to each agency and area. Any revenue that would be allocated to a tax increment area but for the provisions of this section must be paid into the funds of the respective taxing agencies.
3. The portion of the taxes levied each year in excess of the amount determined pursuant to paragraph (a) of subsection 1 which is attributable to any tax rate levied by a taxing agency:
(a) To produce revenue in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness that was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the debt service fund of that taxing agency.
(b) In excess of any tax rate of that taxing agency applicable to the last taxation of the property before the effective date of the ordinance, if that additional rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.
(c) Pursuant to NRS 387.3285 or 387.3287, if that rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.
κ2005 Statutes of Nevada, Page 1765 (CHAPTER 420, SB 389)κ
voting upon the question, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.
(d) For the support of the public schools within a county school district pursuant to NRS 387.195, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.
4. The provisions of paragraph (a) of subsection 3 include, without limitation, a tax rate approved for bonds of a county school district issued pursuant to NRS 350.020, including, without limitation, amounts necessary for a reserve account in the debt service fund.
5. As used in this section, the term last equalized assessment roll means the assessment roll in existence on the 15th day of March immediately preceding the effective date of the ordinance.
Sec. 28. The allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811 does not apply to tax increment areas created pursuant to this chapter.
Sec. 29. The Federal Government, the State, any public body or any natural person filing a written complaint, protest or objection in the manner and within the time provided in section 19 of this act, may, within 30 days after the governing body has finally passed on the complaint, protest or objection by resolution pursuant to section 23 of this act or by ordinance pursuant to section 24 of this act, commence an action or suit in a court of competent jurisdiction to correct or set aside the determination, but thereafter all actions or suits attacking the validity of the proceedings are perpetually barred.
Sec. 30. 1. To defray in whole or in part the cost of any undertaking, a municipality may issue the following securities:
(a) Notes;
(b) Warrants;
(c) Interim debentures;
(d) Bonds; and
(e) Temporary bonds.
2. Any net revenues derived from the operation of a project acquired, improved or equipped, or any combination thereof, as part of the undertaking must be pledged for the payment of any securities issued pursuant to this section. The securities must be made payable from any such net pledged revenues as the bond requirements become due from time to time by the bond ordinance, trust indenture or other proceedings that authorize the issuance of the securities or otherwise pertain to their issuance.
3. Securities issued pursuant to this section:
(a) Must be made payable from tax proceeds accounted for in the tax increment account; and
(b) May, at the option of the municipality and if otherwise so authorized by law, be made payable from the taxes levied by the municipality against all taxable property within the municipality.
Κ The municipality may also issue general obligation securities other than the ones authorized by this chapter that are made payable from taxes without also making the securities payable from any net pledged revenues or tax proceeds accounted for in a tax increment account, or from both of those sources of revenue.
κ2005 Statutes of Nevada, Page 1766 (CHAPTER 420, SB 389)κ
4. Any securities payable only in the manner provided in either paragraph (a) of subsection 3 or both subsection 2 and paragraph (a) of subsection 3:
(a) Are special obligations of the municipality and are not in their issuance subject to any debt limitation imposed by law;
(b) While they are outstanding, do not exhaust the debt incurring power of the municipality; and
(c) May be issued under the provisions of the Local Government Securities Law, except as otherwise provided in this chapter, without any compliance with the provisions of NRS 350.020 to 350.070, inclusive, except as otherwise provided in the Local Government Securities Law, only after the issuance of municipal bonds is approved under the provisions of NRS 350.011 to 350.0165, inclusive.
5. Any securities payable from taxes in the manner provided in paragraph (b) of subsection 3, regardless of whether they are also payable in the manner provided in paragraph (a) of subsection 3 or in both subsection 2 and paragraph (a) of subsection 3:
(a) Are general obligations of the municipality and are in their issuance subject to such debt limitation;
(b) While they are outstanding, do exhaust the power of the municipality to incur debt; and
(c) May be issued under the provisions of the Local Government Securities Law only after the issuance of municipal bonds is approved under the provisions of:
(1) NRS 350.011 to 350.0165, inclusive; or
(2) NRS 350.020 to 350.070, inclusive,
Κ except for the issuance of notes or warrants under the Local Government Securities Law that are payable out of the revenues for the current year and are not to be funded with the proceeds of interim debentures or bonds in the absence of such bond approval under the two acts designated in subparagraphs (1) and (2).
6. In the proceedings for the advancement of money, or the making of loans, or the incurrence of any indebtedness, whether funded, refunded, assumed or otherwise, by the municipality to finance or refinance, in whole or in part, the undertaking, the portion of taxes mentioned in subsection 2 of section 27 of this act must be irrevocably pledged for the payment of the bond requirements of the loans, advances or indebtedness. The provisions in the Local Government Securities Law pertaining to net pledged revenues are applicable to such a pledge to secure the payment of tax increment bonds.
Sec. 31. Any securities issued by a municipality for a tax increment area pursuant to this chapter must mature and be fully paid, including any interest thereon, before the expiration of the tax increment area.
Sec. 32. A tax increment area must expire not more than 30 years after the date on which the ordinance which creates the area becomes effective.
Sec. 33. 1. This chapter, without reference to other statutes of this State, except as otherwise expressly provided in this chapter, constitutes full authority for the exercise of powers granted in this chapter.
2. No other law with regard to the exercise of any power granted in this chapter that provides for an election, requires an approval, or in any way impedes or restricts the carrying out of the acts authorized to be done applies to any acts taken under this chapter, except as provided in this chapter.
κ2005 Statutes of Nevada, Page 1767 (CHAPTER 420, SB 389)κ
applies to any acts taken under this chapter, except as provided in this chapter.
3. The powers conferred by this chapter are in addition and supplemental to, and not in substitution for, and the limitations imposed by this chapter do not affect the powers conferred by, any other law.
Sec. 34. NRS 274.240 is hereby amended to read as follows:
274.240 To encourage the revitalization of specially benefited zones, the governing body of a designating municipality may:
1. Issue bonds or other securities authorized by other law for the purposes of economic development and use the proceeds for loans to any new or expanding qualified businesses in the specially benefited zone.
2. Reduce or eliminate any license or franchise tax, fee or service charge which would otherwise be imposed against qualified businesses within the specially benefited zone.
3. Develop and carry out, alone or where feasible with the participation of one or more designated neighborhood organizations as provided in NRS 274.250, programs to improve needed governmental services within the specially benefited zone.
4. Develop and carry out a plan to:
(a) Ensure the availability of resources to assist residents of the specially benefited zone in their own efforts to improve the condition of property and the availability and quality of public services within the zone.
(b) Provide or seek assistance for persons or businesses displaced as a result of undertakings or other activities conducted pursuant to this chapter.
5. Provide financing by tax increment pursuant to sections 2 to 33, inclusive, of this act.
6. Cooperate with any other governmental agency to provide any other incentive likely to encourage private investment within the specially benefited zone.
Sec. 35. NRS 354.59811 is hereby amended to read as follows:
354.59811 1. Except as otherwise provided in NRS 244.377, 354.59813, 354.59815, 354.59818, 354.5982, 354.5987, 354.705, 354.723, 450.425, 450.760, 540A.265 and 543.600, and section 28 of this act, for each fiscal year beginning on or after July 1, 1989, the maximum amount of money that a local government, except a school district, a district to provide a telephone number for emergencies or a redevelopment agency, may receive from taxes ad valorem, other than those attributable to the net proceeds of minerals or those levied for the payment of bonded indebtedness and interest thereon incurred as general long-term debt of the issuer, or for the payment of obligations issued to pay the cost of a water project pursuant to NRS 349.950, or for the payment of obligations under a capital lease executed before April 30, 1981, must be calculated as follows:
(a) The rate must be set so that when applied to the current fiscal years assessed valuation of all property which was on the preceding fiscal years assessment roll, together with the assessed valuation of property on the central assessment roll which was allocated to the local government, but excluding any assessed valuation attributable to the net proceeds of minerals, assessed valuation attributable to a redevelopment area and assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation, it will produce 106 percent of the maximum revenue allowable from taxes ad valorem for the preceding fiscal year, except that the rate so determined must not be less than the rate allowed for the previous fiscal year, except for any decrease attributable to the imposition of a tax pursuant to NRS 354.59813 in the previous year.
κ2005 Statutes of Nevada, Page 1768 (CHAPTER 420, SB 389)κ
determined must not be less than the rate allowed for the previous fiscal year, except for any decrease attributable to the imposition of a tax pursuant to NRS 354.59813 in the previous year.
(b) This rate must then be applied to the total assessed valuation, excluding the assessed valuation attributable to the net proceeds of minerals and the assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation, but including new real property, possessory interests and mobile homes, for the current fiscal year to determine the allowed revenue from taxes ad valorem for the local government.
2. As used in this section, general long-term debt does not include debt created for medium-term obligations pursuant to NRS 350.087 to 350.095, inclusive.
Sec. 36. This act becomes effective on July 1, 2005.
________
Senate Bill No. 515Committee on Taxation
CHAPTER 421
AN ACT relating to taxation; revising various provisions governing sales and use taxes for clarification and consistency and to carry out the Streamlined Sales and Use Tax Agreement; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 360B of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 24, inclusive, of this act.
Sec. 2. In administering the provisions of this chapter and chapters 372 and 374 of NRS, and in carrying out the provisions of the Agreement, the Department shall construe the terms defined in sections 3 to 21, inclusive, of this act, unless the context otherwise requires, in the manner prescribed by those sections.
Sec. 3. Alcoholic beverages means beverages that are suitable for human consumption and contain one-half of 1 percent or more of alcohol by volume.
Sec. 4. Computer means an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions.
Sec. 5. Computer software means a set of coded instructions designed to cause a computer or automatic data processing equipment to perform a task.
Sec. 6. Delivered electronically means delivered to a purchaser by means other than tangible storage media.
Sec. 7. Delivery charges means charges by a seller of personal property for the preparation and delivery of the property to a location designated by the purchaser of the property, including, but not limited to, charges for transportation, shipping, postage, handling, crating and packing.
κ2005 Statutes of Nevada, Page 1769 (CHAPTER 421, SB 515)κ
charges for transportation, shipping, postage, handling, crating and packing.
Sec. 8. Dietary supplement means any product, other than tobacco, intended to supplement the diet that:
1. Contains one or more of the following dietary ingredients:
(a) A vitamin;
(b) A mineral;
(c) An herb or other botanical;
(d) An amino acid;
(e) A dietary substance for use by humans to supplement the diet by increasing the total dietary intake; or
(f) A concentrate, metabolite, constituent, extract or combination of any ingredient described in paragraphs (a) to (e), inclusive;
2. Is intended for ingestion in the form of a tablet, capsule, powder, softgel, gelcap or liquid or, if not intended for ingestion in such a form, is not represented as conventional food and is not represented for use as a sole item of a meal or of the diet; and
3. Is required to be labeled as a dietary supplement in accordance with 21 C.F.R. § 101.36.
Sec. 9. Drug means a compound, substance or preparation, and any component of a compound, substance or preparation, other than a food, a food ingredient, a dietary supplement and an alcoholic beverage, which is:
1. Recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or in any supplement thereto;
2. Intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease; or
3. Intended to affect the structure or any function of the body.
Sec. 10. Electronic means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities.
Sec. 11. Food and food ingredients means substances, whether in liquid, concentrated, solid, frozen, dried or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for their taste or nutritional value, except alcoholic beverages and tobacco.
Sec. 12. 1. Except as otherwise provided in this section, lease or rental means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. The term:
(a) Includes future options to purchase or extend; and
(b) Excludes:
(1) A transfer of possession or control under a security agreement or plan for deferred payment that requires the transfer of title upon completion of the required payments;
(2) A transfer of possession or control under an agreement that requires the transfer of title upon completion of required payments and payment of an option price that does not exceed the greater of $100 or one percent of the total required payments;
(3) The provision of tangible personal property together with an operator for a fixed or indeterminate period, if the operator:
(I) Is necessary for the property to perform as designed; and
(II) Does anything more than maintain, inspect and set up the property; and
κ2005 Statutes of Nevada, Page 1770 (CHAPTER 421, SB 515)κ
(4) Agreements covering motor vehicles and trailers pursuant to which the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property, as described in 26 U.S.C. § 7701(h)(1).
2. The provisions of subsection 1:
(a) Apply regardless of whether a transaction is characterized as a lease or rental under generally accepted accounting principles, the Internal Revenue Code, the Uniform Commercial Code or any other provisions of federal, state or local law.
(b) Do not apply to any leases or rentals existing on June 15, 2005.
Sec. 13. Medicine includes any drug.
Sec. 14. Prepared food means:
1. Food sold in a heated state or heated by the seller;
2. Two or more food ingredients mixed or combined by the seller for sale as a single item, unless the food ingredients:
(a) Are only cut, repackaged or pasteurized by the seller; or
(b) Contain any raw eggs, fish, meat or poultry, or other such raw animal foods, for which cooking by the consumer is recommended pursuant to the Food Code published by the Food and Drug Administration of the United States Department of Health and Human Services; and
3. Food sold with eating utensils provided by the seller, including plates, knives, forks, spoons, glasses, cups, napkins or straws. For the purposes of this paragraph, plates does not include any containers or packaging used to transport food.
Sec. 15. Prescription means an order, formula or recipe issued in any form of oral, written, electronic or other means of transmission by a duly licensed practitioner authorized by the laws of this State.
Sec. 16. Prewritten computer software means computer software, including any prewritten upgrades, which is not designed and developed by the author or other creator to the specifications of a specific purchaser, and computer software designed and developed by the author or other creator to the specifications of a specific purchaser when it is sold to a person other than the specific purchaser. For the purposes of this section:
1. The combining of two or more prewritten computer software programs or prewritten portions thereof does not cause the combination to be other than prewritten computer software.
2. When a person modifies or enhances any computer software of which the person is not the author or creator, that person shall be deemed to be the author or creator only of those modifications or enhancements.
3. Any prewritten computer software or a prewritten portion thereof that is modified or enhanced to any degree remains prewritten computer software if that modification or enhancement is designed and developed to the specifications of a specific purchaser, except that the modification or enhancement does not constitute prewritten computer software if there is a reasonable, separately stated charge or an invoice or other statement of the price given to the purchaser for that modification or enhancement.
Sec. 17. Prosthetic device means a replacement, corrective or supportive device, including any repair and replacement parts therefor, worn on or in the body:
1. To replace artificially a missing portion of the body;
2. To prevent or correct a physical deformity or malfunction; or
κ2005 Statutes of Nevada, Page 1771 (CHAPTER 421, SB 515)κ
3. To support a weak or deformed portion of the body,
Κ except that the term does not include any corrective eyeglasses, contact lenses or hearing aids.
Sec. 18. 1. Sales price means the total amount of consideration, including cash, credit, property and services, for which personal property is sold, leased or rented, valued in money, whether received in money or otherwise, and without any deduction for:
(a) The sellers cost of the property sold;
(b) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;
(c) Any charges by the seller for any services necessary to complete the sale, including any delivery charges and excluding any installation charges which are stated separately pursuant to NRS 360B.290; and
(d) Except as otherwise provided in subsection 2, any credit for any trade-in.
2. The term does not include:
(a) Any installation charges which are stated separately pursuant to NRS 360B.290;
(b) The value of any exempt personal property given to the purchaser if:
(1) The exempt property and any taxable property are sold as a single product or piece of merchandise; and
(2) The value of the exempt property is stated separately pursuant to NRS 360B.290;
(c) Any credit for any trade-in which is:
(1) Specifically exempted from the sales price pursuant to chapter 372 or 374 of NRS; and
(2) Stated separately pursuant to NRS 360B.290;
(d) Any discounts, including those in the form of cash, term or coupons that are not reimbursed by a third party, which are allowed by a seller and taken by the purchaser on a sale;
(e) Any interest, financing and carrying charges from credit extended on the sale of personal property, if stated separately pursuant to NRS 360B.290; and
(f) Any taxes legally imposed directly on the consumer which are stated separately pursuant to NRS 360B.290.
Sec. 19. Tangible personal property includes, but is not limited to, electricity, water, gas, steam and prewritten computer software.
Sec. 20. Tobacco means cigarettes, cigars, chewing or pipe tobacco, or any other item that contains tobacco.
Sec. 21. Tonics and vitamins includes dietary supplements.
Sec. 22. 1. The Department shall provide public notification to consumers of tangible personal property, including purchasers who are exempt from any sales and use taxes, of the practices of this State relating to the collection, use and retention of any personally identifiable information.
2. The Department shall not retain any personally identifiable information if the information is no longer required to ensure the validity of exemptions from sales and use taxes.
3. When any personally identifiable information that identifies a natural person is retained by or on behalf of the State, that person is entitled to reasonable access to that information to correct any portion thereof which has been inaccurately recorded.
κ2005 Statutes of Nevada, Page 1772 (CHAPTER 421, SB 515)κ
entitled to reasonable access to that information to correct any portion thereof which has been inaccurately recorded.
4. If any person or other entity, except a state which is a member of the Agreement or any person or other entity who is entitled to such information pursuant to any state law or the Agreement, requests any personally identifiable information maintained by the Department, the Department shall make a reasonable and timely effort to notify any person who is identified by the requested information.
5. The Attorney General shall enforce the provisions of this section.
6. As used in this section, personally identifiable information means information that identifies:
(a) A participant in the system created pursuant to the Agreement; or
(b) A consumer of tangible personal property who deals with a registered seller that elects to use a certified service provider as its agent to perform all the functions of the seller relating to sales and use taxes, other than the obligation of the seller to remit the taxes on its own purchases.
Sec. 23. If a shipment of tangible personal property which is sold to a purchaser includes both taxable and exempt property, the seller of the property:
1. Shall allocate any delivery charges the seller imposes by using a percentage based on:
(a) The total sales price of the taxable property compared to the total sales price of all the property in the shipment; or
(b) The total weight of the taxable property compared to the total weight of all the property in the shipment;
2. Shall apply the applicable tax to the percentage of the delivery charges allocated to the taxable property; and
3. Shall not apply the tax to the percentage of the delivery charges allocated to the exempt property.
Sec. 24. 1. No purchaser may commence or maintain any cause of action against any seller for the refund of any sales or use tax erroneously or illegally collected by the seller unless:
(a) The purchaser provides the seller with written notice of his request for a refund, containing such information as is necessary to determine the validity of the request; and
(b) The seller:
(1) Denies the request; or
(2) Fails to respond to the request within 60 days after receiving the notice of the request provided in accordance with paragraph (a).
2. For the purposes of any action brought by a purchaser against a seller for the refund of any sales or use tax erroneously or illegally collected by the seller, the seller is presumed to have a reasonable business practice regarding the collection of sales and use taxes if the seller:
(a) Uses a provider or system, including a proprietary system, that is certified by this State; and
(b) Has remitted to this State all sales and use taxes collected on behalf of this State and each local government in this State, less any deductions, credits and collection allowances to which the seller is entitled.
Sec. 25. NRS 360B.010 is hereby amended to read as follows:
360B.010 NRS 360B.010 to 360B.375, inclusive, and sections 2 to 24, inclusive, of this act shall be known as the Simplified Sales and Use Tax Administration Act.
κ2005 Statutes of Nevada, Page 1773 (CHAPTER 421, SB 515)κ
Sec. 26. NRS 360B.200 is hereby amended to read as follows:
360B.200 1. The Department shall, in cooperation with any other states that are members of the Agreement, establish and maintain a central, electronic registration system that allows a seller to register to collect and remit the sales and use taxes imposed in this State and in the other states that are members of the Agreement.
2. A seller who registers pursuant to this section agrees to collect and remit sales and use taxes in accordance with the provisions of this chapter, the regulations of the Department and the applicable law of each state that is a member of the Agreement, including any state that becomes a member of the Agreement after the registration of the seller pursuant to this section. The cancellation or revocation of the registration of a seller pursuant to this section, the withdrawal of a state from the Agreement or the revocation of the Agreement does not relieve a seller from liability pursuant to this subsection to remit any taxes previously or subsequently collected on behalf of a state.
3. When registering pursuant to this section, a seller may:
(a) Elect to use a certified service provider as its agent to perform all the functions of the seller relating to sales and use taxes, other than the obligation of the seller to remit the taxes on its own purchases;
(b) Elect to use a certified automated system to calculate the amount of sales or use taxes due on its sales transactions;
(c) Under such conditions as the Department deems appropriate [,] in accordance with the Agreement, elect to use its own proprietary automated system to calculate the amount of sales or use taxes due on its sales transactions; or
(d) Elect to use any other method authorized by the Department for performing the functions of the seller relating to sales and use taxes.
4. A seller who registers pursuant to this section agrees to submit its sales and use tax returns, and to remit any sales and use taxes due, to the Department at such times and in such a manner and format as the Department prescribes by regulation. Those regulations must:
(a) Require from each seller who registers pursuant to this section:
(1) Only one tax return for each taxing period for all the sales and use taxes collected on behalf of this State and each local government in this State; and
(2) Only one remittance of taxes for each tax return, except that the Department may require additional remittances of taxes if:
(I) The seller collects more than $30,000 in sales and use taxes on behalf of this State and the local governments in this State during the preceding calendar year;
(II) The amount of the additional remittance is determined by a method of calculation instead of by the actual amount collected; and
(III) The seller is not required to file any tax returns in addition to those otherwise required in accordance with this subsection.
(b) Allow any seller who registers pursuant to this section and makes an election pursuant to paragraph (a), (b) or (c) of subsection 3 to submit tax returns in a simplified format that does not include any more data fields than are permitted in accordance with the Agreement.
(c) Allow any seller who registers pursuant to this section, does not maintain a place of business in this State and has not made an election pursuant to paragraph (a), (b) or (c) of subsection 3, to file tax returns at a frequency that does not exceed once per year unless the seller accumulates more than $1,000 in the collection of sales and use taxes on behalf of this State and the local governments in this State.
κ2005 Statutes of Nevada, Page 1774 (CHAPTER 421, SB 515)κ
frequency that does not exceed once per year unless the seller accumulates more than $1,000 in the collection of sales and use taxes on behalf of this State and the local governments in this State.
(d) Provide an alternative method for a seller who registers pursuant to this section to make tax payments the same day as the seller intends if an electronic transfer of money fails.
(e) Require any data that accompanies the remittance of a tax payment by or on behalf of a seller who registers pursuant to this section to be formatted using uniform codes for the type of tax and payment in accordance with the Agreement.
5. The registration of a seller and the collection and remission of sales and use taxes pursuant to this section may not be considered as a factor in determining whether a seller has a nexus with this State for the purposes of determining his liability to pay any tax imposed by this State.
Sec. 27. NRS 360B.280 is hereby amended to read as follows:
360B.280 1. A purchaser of direct mail must provide to the seller at the time of the purchase:
(a) If the seller does not maintain a place of business in this State:
(1) A form for direct mail approved by the Department;
(2) An informational statement of the jurisdictions to which the direct mail will be delivered to recipients; or
(3) [The] Documentation of the direct pay permit of the purchaser issued pursuant to NRS 360B.260; or
(b) If the seller maintains a place of business in this State, an informational statement of the jurisdictions to which the direct mail will be delivered to recipients.
Κ If a purchaser of direct mail provides documentation of a direct pay permit to a seller in accordance with subparagraph (3) of paragraph (a), the seller shall not require the purchaser to comply with any other provision of that paragraph.
2. Notwithstanding the provisions of NRS 360B.350 to 360B.375, inclusive:
(a) Upon the receipt pursuant to subsection 1 of:
(1) A form for direct mail by a seller who does not maintain a place of business in this State:
(I) The seller is relieved of any liability for the collection, payment or remission of any sales or use taxes applicable to the purchase of direct mail by that purchaser from that seller; and
(II) The purchaser is liable for any sales or use taxes applicable to the purchase of direct mail by that purchaser from that seller.
Κ Any form for direct mail provided to a seller pursuant to this subparagraph applies to all future sales of direct mail made by that seller to that purchaser until the purchaser delivers a written notice of revocation to the seller.
(2) An informational statement by any seller, the seller shall collect, pay or remit any applicable sales and use taxes in accordance with the information contained in that statement. In the absence of bad faith, the seller is relieved of any liability to collect, pay or remit any sales and use taxes other than in accordance with that information received.
(b) If a purchaser of direct mail does not comply with subsection 1, the seller shall determine the location of the sale pursuant to subsection 5 of NRS 360B.360 and collect, pay or remit any applicable sales and use taxes.
κ2005 Statutes of Nevada, Page 1775 (CHAPTER 421, SB 515)κ
This paragraph does not limit the liability of the purchaser for the payment of any of those taxes.
3. As used in this section, direct mail means printed material delivered or distributed by the United States Postal Service or another delivery service to a mass audience or to addresses contained on a mailing list provided by a purchaser or at the direction of a purchaser when the cost of the items purchased is not billed directly to the recipients. The term includes tangible personal property supplied directly or indirectly by the purchaser to the seller of the direct mail for inclusion in the package containing the printed material. The term does not include multiple items of printed material delivered to a single address.
Sec. 28. NRS 360B.290 is hereby amended to read as follows:
360B.290 Any invoice, billing or other document given to a purchaser that indicates the sales price for which tangible personal property is sold must state separately any amount received by the seller for:
1. [Services that are necessary to complete the sale, including delivery and installation charges;] Any installation charges for the property;
2. The value of any exempt property given to the purchaser if [taxable and] the exempt property and any taxable property are sold as a single product or piece of merchandise; [and
3. Credit given to the purchaser.]
3. Any credit for any trade-in which is specifically exempted from the sales price of the property pursuant to chapter 372 or 374 of NRS;
4. Any interest, financing and carrying charges from credit extended on the sale; and
5. Any taxes legally imposed directly on the consumer.
Sec. 29. NRS 372.355 is hereby amended to read as follows:
372.355 Except as otherwise provided in NRS 372.380 or required by the Department pursuant to NRS 360B.200, the taxes imposed by this chapter are due and payable to the Department monthly on or before the last day of the month next succeeding each month.
Sec. 30. NRS 372.690 is hereby amended to read as follows:
372.690 1. If judgment is rendered for the plaintiff, the amount of the judgment must first be credited as follows:
(a) If the judgment is for a refund of sales taxes, it must be credited on any amount of sales or use tax due from the plaintiff [.] pursuant to this chapter.
(b) If the judgment is for a refund of use taxes, it must be credited on any amount of use tax due from the plaintiff [.] pursuant to this chapter.
2. The balance of the judgment must be refunded to the plaintiff.
Sec. 31. Chapter 374 of NRS is hereby amended by adding thereto a new section to read as follows:
Person includes any individual, firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, business trust, receiver, trustee, syndicate, cooperative, assignee, or any other group or combination acting as a unit, but does not include the United States, this State or any agency thereof, or any city, county, district or other political subdivision of this State.
Sec. 32. NRS 374.020 is hereby amended to read as follows:
374.020 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 374.025 to 374.108, inclusive, and section 31 of this act have the meanings ascribed to them in those sections.
κ2005 Statutes of Nevada, Page 1776 (CHAPTER 421, SB 515)κ
Sec. 33. NRS 374.085 is hereby amended to read as follows:
374.085 [Storage, use or other consumption does] Storage and use do not include:
1. The keeping, retaining or exercising any right or power over tangible personal property for the purpose of subsequently transporting it outside the State for use thereafter solely outside the State, or for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into, other tangible personal property to be transported outside the State and thereafter used solely outside the State; or
2. The keeping, retaining or exercising any right or power over tangible property that:
(a) Meets the requirements of subparagraphs (1) and (2) of paragraph (a) of subsection 4 of NRS 374.291;
(b) Is made available for sale within 2 years after it is acquired; and
(c) Is made available for viewing by the public or prospective purchasers, or both, within 2 years after it is acquired, whether or not a fee is charged for viewing it and whether or not it is also used for purposes other than viewing.
Sec. 34. NRS 374.085 is hereby amended to read as follows:
374.085 [Storage, use or other consumption does] Storage and use do not include the keeping, retaining or exercising any right or power over tangible personal property for the purpose of subsequently transporting it outside the State for use thereafter solely outside the State, or for the purpose of being processed, fabricated or manufactured into, attached to, or incorporated into, other tangible personal property to be transported outside the State and thereafter used solely outside the State.
Sec. 35. NRS 374.321 is hereby amended to read as follows:
374.321 1. There are exempted from the taxes imposed by this chapter an amount equal to 40 percent of the gross receipts from the sales and storage, use or other consumption of new manufactured homes and new mobile homes.
2. There are exempted from the taxes imposed by this chapter the gross receipts from the sales and storage, use or other consumption of used manufactured homes and used mobile homes for which taxes under this chapter have been paid [.] as a result of a previous sale, storage, use or consumption.
3. As used in this section:
(a) Manufactured home has the meaning ascribed to it in NRS 489.113; and
(b) Mobile home has the meaning ascribed to it in NRS 489.120. The term does not include a motor home as defined in NRS 482.071.
Sec. 36. NRS 374.345 is hereby amended to read as follows:
374.345 The taxes imposed under this chapter apply to the sale of tangible personal property to and the storage, use or other consumption in this State of tangible personal property by a contractor for a governmental, religious or charitable entity which is otherwise exempted from the tax, unless the contractor is a constituent part of that entity.
Sec. 37. NRS 374.635 is hereby amended to read as follows:
374.635 1. If the Department determines that any amount, penalty or interest has been paid more than once or has been erroneously or illegally collected or computed, the Department shall set forth that fact in the records of the Department and shall certify to the board of county commissioners the amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid.
κ2005 Statutes of Nevada, Page 1777 (CHAPTER 421, SB 515)κ
amount collected in excess of the amount legally due and the person from whom it was collected or by whom paid. If approved by the board of county commissioners, the excess amount collected or paid must be credited on any amounts then due from the person pursuant to this chapter, and the balance must be refunded to the person, or his successors, administrators or executors.
2. Any overpayment of the use tax by a purchaser to a retailer who is required to collect the tax and who gives the purchaser a receipt therefor pursuant to NRS 374.190 to 374.260, inclusive, and 374.727, must be credited or refunded by the county [.] to the purchaser.
Sec. 38. NRS 374.695 is hereby amended to read as follows:
374.695 1. If judgment is rendered for the plaintiff, the amount of the judgment must first be credited as follows:
(a) If the judgment is for a refund of sales taxes, it must be credited on any amount of sales or use tax [or amount of use tax] due from the plaintiff [.] pursuant to this chapter.
(b) If the judgment is for a refund of use taxes, it must be credited on any [use tax or] amount of use tax due from the plaintiff pursuant to [NRS 374.190 to 374.260, inclusive, and 374.727.] this chapter.
2. The balance of the judgment must be refunded to the plaintiff.
Sec. 39. Section 24 of Chapter 364, Statutes of Nevada 2001, as amended by Chapter 400, Statutes of Nevada 2003, at page 2395, is hereby amended to read as follows:
Sec. 24. 1. This section, sections 1 to 13, inclusive, and 17 to 23, inclusive, of this act become effective upon passage and approval.
2. Section 16 of this act becomes effective on the date this state becomes a member of the streamlined sales and use tax agreement.
3. Sections 14 and 15 of this act become effective on [January 1, 2006.] June 15, 2005.
Sec. 40. Section 136 of Chapter 400, Statutes of Nevada 2003, at page 2408, is hereby amended to read as follows:
Sec. 136. 1. Except as otherwise provided in this section, the Department of Taxation shall waive the amount of any sales and use taxes, and any penalties and interest thereon, otherwise due in this state from a seller at the time the seller registers pursuant to section 9 of this act if the seller:
(a) During the [year 2005:] 12 months immediately preceding the effective date of this States participation in the Streamlined Sales and Use Tax Agreement:
(1) Did not hold a sellers permit issued pursuant to chapter 372 or 374 of NRS; and
(2) Was not registered as a retailer pursuant to chapter 372 or 374 of NRS;
(b) Registers pursuant to section 9 of this act [no later than December 31, 2006;] within 12 months after the effective date of this States participation in the Streamlined Sales and Use Tax Agreement; and
(c) Remains registered pursuant to section 9 of this act for at least 36 months and collects and remits to this state all sales and use taxes due in this state for that period.
Κ Each statutory period of limitation applicable to any procedure or proceeding for the collection or enforcement of any sales or use tax due from a seller at the time the seller registers as provided in paragraph (b) is tolled for 36 months from the commencement of that registration.
κ2005 Statutes of Nevada, Page 1778 (CHAPTER 421, SB 515)κ
due from a seller at the time the seller registers as provided in paragraph (b) is tolled for 36 months from the commencement of that registration.
2. The Department of Taxation shall not, pursuant to this section, waive any liability of a seller:
(a) Regarding any matter for which the seller received notice of the commencement of an audit which, including any related administrative and judicial procedures, has not been finally resolved before the registration of the seller pursuant to section 9 of this act.
(b) For any sales and use taxes collected by the seller or paid or remitted to the State before the registration of the seller pursuant to section 9 of this act.
(c) For any fraud or material misrepresentation of a material fact committed by the seller.
(d) For any sales or use taxes due from the seller in his capacity as a buyer and not as a seller.
3. For the purposes of this section, the words and terms defined in NRS 360B.040 to 360B.100, inclusive, as amended by this act, have the meanings ascribed to them in those sections.
Sec. 41. Section 137 of Chapter 400, Statutes of Nevada 2003, at page 2409, is hereby amended to read as follows:
Sec. 137. The amendatory provisions of sections 83, 84, 85, 87 to 92, inclusive, and 94 to 101, inclusive, of this act do not apply to any ordinance enacted before [January 1, 2006.] June 15, 2005.
Sec. 42. Section 139 of Chapter 400, Statutes of Nevada 2003, at page 2409, is hereby amended to read as follows:
Sec. 139. 1. This section and section 102 of this act become effective upon passage and approval.
2. Sections 103 to 135, inclusive, of this act become effective on July 1, 2003.
3. Sections 1 to 29, inclusive, 32 to 38, inclusive, 40 to 50, inclusive, 52 to 57, inclusive, 66, 67, 69 to 72, inclusive, 74 to 80, inclusive, 83, 84, 85, 87 to 92, inclusive, 94 to 101, inclusive, 136 and 137 of this act become effective:
(a) Upon passage and approval for the purposes of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
(b) On [January 1, 2006,] June 15, 2005, for all other purposes.
4. Sections 30 and 39 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is approved by the voters at the general election on November 2, 2004.
5. Sections 31, 51, 58 to 65, inclusive, 68, 73, 81, 82, 86, 93 and 138 of this act become effective on January 1, 2006, only if the proposal submitted pursuant to sections 103 to 107, inclusive, of this act is not approved by the voters at the general election on November 2, 2004.
Sec. 43. 1. This section and sections 1 to 33, inclusive, and 35 to 42, inclusive, of this act become effective on June 15, 2005.
2. Section 33 of this act expires by limitation on December 31, 2005.
3. Section 34 of this act becomes effective on January 1, 2006.
________
κ2005 Statutes of Nevada, Page 1779κ
Senate Bill No. 391Committee on Taxation
CHAPTER 422
AN ACT relating to the taxation of financial institutions; revising the provisions governing liability for the tax on financial institutions; providing additional procedures for enforcement of that tax; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 363A.050 is hereby amended to read as follows:
363A.050 1. Except as otherwise provided in subsection 2, financial institution means:
(a) An institution licensed, registered or otherwise authorized to do business in this State pursuant to the provisions of chapter 604, 645B [, 645E or 649] or 645E of NRS or title 55 or 56 of NRS, or a similar institution chartered or licensed pursuant to federal law [and doing business in this State;
(b) Any person primarily engaged in:
(1) The purchase, sale and brokerage of securities;
(2) Originating, underwriting and distributing issues of securities;
(3) Buying and selling commodity contracts on either a spot or future basis for the persons own account or for the account of others, if the person is a member or is associated with a member of a recognized commodity exchange;
(4) Furnishing space and other facilities to members for the purpose of buying, selling or otherwise trading in stocks, stock options, bonds or commodity contracts;
(5) Furnishing investment information and advice to others concerning securities on a contract or fee basis;
(6) Furnishing services to holders of or brokers or dealers in securities or commodities;
(7) Holding or owning the securities of banks for the sole purpose of exercising some degree of control over the activities of the banks whose securities the person holds;
(8) Holding or owning securities of companies other than banks, for the sole purpose of exercising some degree of control over the activities of the companies whose securities the person holds;
(9) Issuing shares, other than unit investment trusts and face-amount certificate companies, whose shares contain a provision requiring redemption by the company upon request of the holder of the security;
(10) Issuing shares, other than unit investment trusts and face-amount certificate companies, whose shares contain no provision requiring redemption by the company upon request by the holder of the security;
(11) Issuing unit investment trusts or face-amount certificates;
(12) The management of the money of trusts and foundations organized for religious, educational, charitable or nonprofit research purposes;
κ2005 Statutes of Nevada, Page 1780 (CHAPTER 422, SB 391)κ
(13) The management of the money of trusts and foundations organized for purposes other than religious, educational, charitable or nonprofit research;
(14) Investing in oil and gas royalties or leases, or fractional interests therein;
(15) Owning or leasing franchises, patents and copyrights which the person in turn licenses others to use;
(16) Closed-end investments in real estate or related mortgage assets operating in such a manner as to meet the requirements of the Real Estate Investment Trust Act of 1960, as amended;
(17) Investing; or
(18) Any combination of the activities described in this paragraph,
Κ who is doing business in this State;
(c) Any other person conducting loan or credit card processing activities in this State; and
(d) Any other bank, bank holding company, national bank, savings association, federal savings bank, trust company, credit union, building and loan association, investment company, registered broker or dealer in securities or commodities, finance company, dealer in commercial paper or other business entity engaged in the business of lending money, providing credit, securitizing receivables or fleet leasing, or any related business entity, doing business in this State.] ;
(b) A person licensed or registered or required to be licensed or registered pursuant to NRS 90.310, 90.330, 90.453, 686A.340 or 688C.190;
(c) A person holding or required to hold a solicitation permit or license pursuant to NRS 692B.040, 692B.190 or 692B.260;
(d) A person designated or registered or required to be designated or registered pursuant to the Commodity Exchange Act, the Securities Exchange Act of 1934, the Public Utility Holding Company Act of 1935, the Investment Company Act of 1940 or the Investment Advisers Act of 1940, as amended;
(e) A person licensed pursuant to 7 U.S.C. § 2009cc-3 to operate as a rural business investment company;
(f) A person registered or required to be registered as a savings and loan holding company pursuant to 12 U.S.C. § 1467a;
(g) A person registered or required to be registered as a bank holding company pursuant to 12 U.S.C. § 1844;
(h) An investment bank holding company supervised pursuant to 15 U.S.C. § 78q;
(i) A person electing to be treated as a business development company pursuant to 15 U.S.C. § 80a-53;
(j) A person licensed pursuant to 15 U.S.C. § 681 to operate as a small business investment company;
(k) A person granted final approval pursuant to 15 U.S.C. § 689c to operate as a new markets venture capital company;
(l) A person qualifying as and electing to be considered a real estate investment trust pursuant to 26 U.S.C. § 856;
(m) A bank, as defined in 12 U.S.C. § 1813(a);
(n) A savings association, as defined in 12 U.S.C. § 1813(b);
(o) A savings bank, as defined in 12 U.S.C. § 1813(g);
(p) A thrift institution, as defined in 12 U.S.C. § 1841(i);
κ2005 Statutes of Nevada, Page 1781 (CHAPTER 422, SB 391)κ
(q) A national banking association organized under the National Bank Act;
(r) An entity that is related to any of the entities described in paragraphs (a), (b), (d) to (k), inclusive, and (m) to (q), inclusive, regardless of whether the entity described in any of those paragraphs is doing business in this State; and
(s) An issuer or a service provider,
Κ who is doing business in this State.
2. The term does not include [a] :
(a) A credit union organized under the provisions of chapter 678 of NRS or the Federal Credit Union Act [.] ;
(b) A federal land credit association, farm credit bank, agricultural credit association or similar institution organized under the provisions of the Farm Credit Act; and
(c) Any person or other entity that this State is prohibited from taxing under the Constitution, laws or treaties of the United States or the Nevada Constitution.
3. For the purposes of this section:
(a) Credit card has the meaning ascribed to it in NRS 97A.050.
(b) Entity includes, without limitation, any corporation, limited-liability company, association, organization, company, firm, partnership, joint venture, trust, business trust, receiver, trustee, syndicate, cooperative or assignee, or any other group or combination acting as a unit.
(c) Issuer has the meaning ascribed to it in NRS 97A.100, except that the term does not include a seller of goods or provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he sells or the services he provides.
(d) Entities are related if at least 50 percent of the interest, either by vote or value, in each entity is owned, either directly or indirectly, by the same entity, including either of those entities.
(e) Service provider has the meaning ascribed to it in NRS 97A.130, except that the term does not include a service provider who acts in that capacity solely on behalf of a seller of goods or provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he sells or the services he provides.
Sec. 2. NRS 90.420 is hereby amended to read as follows:
90.420 1. The Administrator by order may deny, suspend or revoke any license, fine any licensed person, limit the activities governed by this chapter that an applicant or licensed person may perform in this State, bar an applicant or licensed person from association with a licensed broker-dealer or investment adviser or bar from employment with a licensed broker-dealer or investment adviser a person who is a partner, officer, director, sales representative, investment adviser or representative of an investment adviser, or a person occupying a similar status or performing a similar function for an applicant or licensed person, if the Administrator finds that the order is in the public interest and that the applicant or licensed person or, in the case of a broker-dealer or investment adviser, any partner, officer, director, sales representative, investment adviser, representative of an investment adviser, or person occupying a similar status or performing similar functions or any person directly or indirectly controlling the broker-dealer or investment adviser:
κ2005 Statutes of Nevada, Page 1782 (CHAPTER 422, SB 391)κ
(a) Has filed an application for licensing with the Administrator which, as of its effective date, or as of any date after filing in the case of an order denying effectiveness, was incomplete in a material respect or contained a statement that was, in light of the circumstances under which it was made, false or misleading with respect to a material fact;
(b) Has violated or failed to comply with a provision of this chapter as now or formerly in effect or a regulation or order adopted or issued under this chapter;
(c) Is the subject of an adjudication or determination after notice and opportunity for hearing, within the last 5 years by a securities agency or administrator of another state or a court of competent jurisdiction that the person has violated the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act or the securities law of any other state, but only if the acts constituting the violation of that states law would constitute a violation of this chapter had the acts taken place in this State;
(d) Within the last 10 years has been convicted of a felony or misdemeanor which the Administrator finds:
(1) Involves the purchase or sale of a security, taking a false oath, making a false report, bribery, perjury, burglary, robbery or conspiracy to commit any of the foregoing offenses;
(2) Arises out of the conduct of business as a broker-dealer, investment adviser, depository institution, insurance company or fiduciary; or
(3) Involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion or misappropriation of money or securities or conspiracy to commit any of the foregoing offenses;
(e) Is or has been permanently or temporarily enjoined by any court of competent jurisdiction, unless the order has been vacated, from acting as an investment adviser, representative of an investment adviser, underwriter, broker-dealer or as an affiliated person or employee of an investment company, depository institution or insurance company or from engaging in or continuing any conduct or practice in connection with any of the foregoing activities or in connection with the purchase or sale of a security;
(f) Is or has been the subject of an order of the Administrator, unless the order has been vacated, denying, suspending or revoking his license as a broker-dealer, sales representative, investment adviser or representative of an investment adviser;
(g) Is or has been the subject of any of the following orders which were issued within the last 5 years, unless the order has been vacated:
(1) An order by the securities agency or administrator of another state, Canadian province or territory or by the Securities and Exchange Commission or a comparable regulatory agency of another country, entered after notice and opportunity for hearing, denying, suspending or revoking the persons license as a broker-dealer, sales representative, investment adviser or representative of an investment adviser;
(2) A suspension or expulsion from membership in or association with a member of a self-regulatory organization;
(3) An order of the United States Postal Service relating to fraud;
(4) An order to cease and desist entered after notice and opportunity for hearing by the Administrator, the securities agency or administrator of another state, Canadian province or territory, the Securities and Exchange Commission or a comparable regulatory agency of another country, or the Commodity Futures Trading Commission; or
κ2005 Statutes of Nevada, Page 1783 (CHAPTER 422, SB 391)κ
another state, Canadian province or territory, the Securities and Exchange Commission or a comparable regulatory agency of another country, or the Commodity Futures Trading Commission; or
(5) An order by the Commodity Futures Trading Commission denying, suspending or revoking registration under the Commodity Exchange Act;
(h) Has engaged in unethical or dishonest practices in the securities business;
(i) Is insolvent, either in the sense that liabilities exceed assets or in the sense that obligations cannot be met as they mature, but the Administrator may not enter an order against a broker-dealer or investment adviser under this paragraph without a finding of insolvency as to the broker-dealer or investment adviser;
(j) Has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS;
(k) Is determined by the Administrator in compliance with NRS 90.430 not to be qualified on the basis of lack of training, experience and knowledge of the securities business; or
[(k)] (l) Has failed reasonably to supervise a sales representative, employee or representative of an investment adviser.
2. The Administrator may not institute a proceeding on the basis of a fact or transaction known to the director when the license became effective unless the proceeding is instituted within 90 days after issuance of the license.
3. If the Administrator finds that an applicant or licensed person is no longer in existence or has ceased to do business as a broker-dealer, sales representative, investment adviser or representative of an investment adviser or is adjudicated mentally incompetent or subjected to the control of a committee, conservator or guardian or cannot be located after reasonable search, the Administrator may by order deny the application or revoke the license.
Sec. 3. NRS 90.730 is hereby amended to read as follows:
90.730 1. Except as otherwise provided in subsection 2, information and records filed with or obtained by the Administrator are public information and are available for public examination.
2. Except as otherwise provided in subsections 3 and 4, the following information and records do not constitute public information under subsection 1 and are confidential:
(a) Information or records obtained by the Administrator in connection with an investigation concerning possible violations of this chapter; and
(b) Information or records filed with the Administrator in connection with a registration statement filed under this chapter or a report under NRS 90.390 which constitute trade secrets or commercial or financial information of a person for which that person is entitled to and has asserted a claim of privilege or confidentiality authorized by law.
3. The Administrator may submit any information or evidence obtained in connection with an investigation to the :
(a) Attorney General or appropriate district attorney for the purpose of prosecuting a criminal action under this chapter [.] ; and
(b) Department of Taxation for its use in carrying out the provisions of chapter 363A of NRS.
κ2005 Statutes of Nevada, Page 1784 (CHAPTER 422, SB 391)κ
4. The Administrator may disclose any information obtained in connection with an investigation pursuant to NRS 90.620 to the agencies and administrators specified in subsection 1 of NRS 90.740 but only if disclosure is provided for the purpose of a civil, administrative or criminal investigation or proceeding, and the receiving agency or administrator represents in writing that under applicable law protections exist to preserve the integrity, confidentiality and security of the information.
5. This chapter does not create any privilege or diminish any privilege existing at common law, by statute, regulation or otherwise.
Sec. 4. NRS 649.395 is hereby amended to read as follows:
649.395 1. The Commissioner may impose an administrative fine, not to exceed $500 for each violation, or suspend or revoke the license of a collection agency, or both impose a fine and suspend or revoke the license, by an order made in writing and filed in his office and served on the licensee by registered or certified mail at the address shown in the records of the Commissioner, if:
(a) The licensee is adjudged liable in any court of law for breach of any bond given under the provisions of this chapter; or
(b) After notice and hearing, the licensee is found guilty of:
(1) Fraud or misrepresentation;
(2) An act or omission inconsistent with the faithful discharge of his duties and obligations; or
(3) A violation of any provision of this chapter . [; or
(c) The Commissioner determines that the licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS.]
2. The Commissioner may suspend or revoke the license of a collection agency without notice and hearing if:
(a) The suspension or revocation is necessary for the immediate protection of the public; and
(b) The licensee is afforded a hearing to contest the suspension or revocation within 20 days after the written order of suspension or revocation is served upon the licensee.
3. Upon revocation of his license, all rights of the licensee under this chapter terminate, and no application may be received from any person whose license has once been revoked.
4. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
Sec. 5. NRS 683A.451 is hereby amended to read as follows:
683A.451 The Commissioner may refuse to issue a license or certificate pursuant to this chapter or may place any person to whom a license or certificate is issued pursuant to this chapter on probation, suspend him for not more than 12 months, or revoke or refuse to renew his license or certificate, or may impose an administrative fine or take any combination of the foregoing actions, for one or more of the following causes:
1. Providing incorrect, misleading, incomplete or partially untrue information in his application for a license.
2. Violating a law regulating insurance, or violating a regulation, order or subpoena of the Commissioner or an equivalent officer of another state.
3. Obtaining or attempting to obtain a license through misrepresentation or fraud.
4. Misappropriating, converting or improperly withholding money or property received in the course of the business of insurance.
κ2005 Statutes of Nevada, Page 1785 (CHAPTER 422, SB 391)κ
5. Intentionally misrepresenting the terms of an actual or proposed contract of or application for insurance.
6. Conviction of a felony.
7. Admitting or being found to have committed an unfair trade practice or fraud.
8. Using fraudulent, coercive or dishonest practices, or demonstrated incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this State or elsewhere.
9. Denial, suspension or revocation of a license as a producer of insurance, or its equivalent, in any other state, territory or province.
10. Forging anothers name to an application for insurance or any other document relating to the transaction of insurance.
11. Improperly using notes or other reference material to complete an examination for a license related to insurance.
12. Knowingly accepting business related to insurance from an unlicensed person.
13. Failing to comply with an administrative or judicial order imposing an obligation of child support.
14. Failing to pay a tax as required pursuant to the provisions of chapter 363A of NRS.
Sec. 6. NRS 688C.210 is hereby amended to read as follows:
688C.210 After notice, and after a hearing if requested, the Commissioner may suspend, revoke, refuse to issue or refuse to renew a license under this chapter if he finds that:
1. There was material misrepresentation in the application for the license;
2. The licensee or an officer, partner, member or significant managerial employee has been convicted of fraudulent or dishonest practices, is subject to a final administrative action for disqualification, or is otherwise shown to be untrustworthy or incompetent;
3. A provider of viatical settlements has engaged in a pattern of unreasonable payments to viators;
4. The applicant or licensee has been found guilty of, or pleaded guilty or nolo contendere to, a felony or a misdemeanor involving fraud, forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud or any crime involving moral turpitude, whether or not a judgment of conviction has been entered by the court;
5. A provider of viatical settlements has entered into a viatical settlement in a form not approved pursuant to NRS 688C.220;
6. A provider of viatical settlements has failed to honor obligations of a viatical settlement;
7. The licensee no longer meets a requirement for initial licensure;
8. A provider of viatical settlements has assigned, transferred or pledged a viaticated policy to a person other than another provider licensed under this chapter, a purchaser of the viatical settlement, a special organization or a trust for a related provider;
9. The applicant or licensee has provided materially untrue information to an insurer that issued a policy that is the subject of a viatical settlement; [or]
10. The applicant or licensee has failed to pay a tax as required pursuant to the provisions of chapter 363A of NRS; or
11. The applicant or licensee has violated a provision of this chapter.
κ2005 Statutes of Nevada, Page 1786 (CHAPTER 422, SB 391)κ
Sec. 7. This act becomes effective on July 1, 2005.
________
Senate Bill No. 326Senator Care
CHAPTER 423
AN ACT relating to eminent domain; limiting the public purposes for which the right of eminent domain may be exercised; restricting the authority of a redevelopment agency to acquire real property by eminent domain; limiting the use and reconveyance of real property acquired by eminent domain; requiring an agency that acquires real property on which a business is conducted to compensate the owner of the business for the loss of goodwill under certain circumstances; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 37 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 3 and 4 of this act.
Sec. 2. 1. Notwithstanding any other provision of law, an agency may not exercise the power of eminent domain to acquire a parcel of property or group of contiguous parcels of property that is more than 40 acres in area for the purpose of open-space use unless:
(a) Before the governing body of the agency votes to commence an action in eminent domain to acquire the property, the agency has negotiated with the owner of the property, in good faith, for a period of not less than 24 months beginning on the date on which the agency provided the written offer of compensation to the owner of the property pursuant to subsection 2, to reach an agreement regarding the amount of compensation to be paid for the property;
(b) The use of property for the purpose of open-space use conforms with any applicable provisions of the applicable:
(1) Master plan adopted pursuant to chapter 278 of NRS;
(2) Zoning regulations adopted pursuant to chapter 278 of NRS; and
(3) Open-space plan adopted pursuant to chapter 376A of NRS;
(c) Each acre of the property is necessary for the purpose of open-space use and will be devoted to open-space use for not less than 50 years; and
(d) If the agency is seeking to acquire water rights appurtenant to the property, the agency uses the water beneficially on the property for the purpose of open-space use.
2. To satisfy the requirement to have negotiated with the owner of the property in good faith, pursuant to paragraph (a) of subsection 1, an agency must, at a minimum:
(a) Provide to the owner of the property, by personal delivery or by certified mail, return receipt requested, a written offer of compensation that includes:
κ2005 Statutes of Nevada, Page 1787 (CHAPTER 423, SB 326)κ
(1) A copy of the appraisal report upon which the offer of compensation is based;
(2) A detailed description of the nature of the intended use of each acre of the property and the specific reasons for the necessity of acquiring each acre of the property for the purpose of open-space use;
(3) If the agency is seeking to acquire any water rights appurtenant to the property, a detailed description of the intended beneficial use of the water rights on the property and the specific reasons for the necessity of acquiring the water rights; and
(4) The value of the property, plus damages, if any, as appraised by the agency; and
(b) Attempt to engage in meaningful negotiations with the owner of the property at least once per calendar month during the period described in paragraph (a) of subsection 1.
3. As used in this section:
(a) Agency means the State of Nevada, any political subdivision of the State or any other governmental entity that possesses the power of eminent domain.
(b) Open-space plan has the meaning ascribed to it in NRS 376A.010.
(c) Open-space use means the use of property:
(1) To promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment; or
(2) To protect, conserve or preserve wildlife habitat.
Sec. 3. Notwithstanding any other provision of law, if the State of Nevada, any political subdivision of the State or other governmental entity that has acquired property pursuant to the provisions of this chapter:
1. Fails to use the property for the public purpose for which it was acquired; and
2. Seeks to convey the right, title or interest in all or part of that property to any person,
Κ within 15 years after the property is acquired, the person from whom the property was acquired or his successor in interest must be granted the right of first refusal to purchase the right, title or interest in the property sought to be conveyed for fair market value which shall be deemed to be an amount which does not exceed the proportional amount paid by the State, political subdivision or other governmental entity for the acquisition of the property.
Sec. 4. 1. In addition to any amount of compensation determined pursuant to NRS 37.110, the owner of a business conducted on property that is acquired pursuant to this chapter must be compensated for loss of goodwill if:
(a) The condemnation causes the business to be dissolved and the business cannot be relocated for reasons beyond the control of the owner, including, without limitation, the unavailability of a new franchise or when the value of the business is inextricably tied to the unique location of the property being condemned; and
(b) The owner of the business has a property interest in the property acquired pursuant to this chapter.
2. As used in this section, goodwill means the component of value attributed to the reputation, loyal customer base, ability to attract new customers and location of a business.
κ2005 Statutes of Nevada, Page 1788 (CHAPTER 423, SB 326)κ
customers and location of a business. The term does not include the loss of anticipated profits or loss of business opportunity.
Sec. 5. NRS 244.290 is hereby amended to read as follows:
244.290 1. Except as otherwise provided in NRS 278.480 for the vacation of streets and easements, the board of county commissioners of any county may reconvey all the right, title and interest of the county in and to any land donated, dedicated, acquired in accordance with chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding for a public park, public square, public landing, agricultural fairground, aviation field, automobile parking ground or facility for the accommodation of the traveling public, or land held in trust for the public for any other public use or uses, or any part thereof, to the person:
(a) By whom the land was donated or dedicated or to his heirs, assigns or successors, upon such terms as may be prescribed by a resolution of the board; or
(b) From whom the land was acquired in accordance with the provisions of chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding, or to his heirs, assigns or successors, except as otherwise provided in section 3 of this act, for an amount equal to the appraised value of the land at the time of the reconveyance.
Κ The reconveyance may be made whether the land is held by the county solely or as tenant in common with any municipality or other political subdivision of this State under the dedication.
2. If the county has a planning commission, the board shall refer the proposal for reconveyance to the planning commission which shall consider the proposal and submit its recommendation to the board.
3. The board shall hold at least one public hearing upon the proposal for reconveyance. Notice of the time and place of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the county;
(b) Mailed to all owners of record of real property located within 300 feet of the land proposed for reconveyance; and
(c) Posted in a conspicuous place on the property and, in this case, must set forth additionally the extent of the proposal for reconveyance.
Κ The hearing must be held not less than 10 days nor more than 40 days after the notice is so published, mailed and posted.
4. If the board, after the hearing, determines that maintenance of the property by the county solely or with a co-owner is unnecessarily burdensome or that reconveyance would be otherwise advantageous to the county and its citizens, the board shall formally adopt a resolution stating that determination. Upon the adoption of the resolution, the chairman of the board shall execute a deed of reconveyance on behalf of the county and the county clerk shall attest the deed under the seal of the county.
5. The board may sell land which has been donated, dedicated, acquired in accordance with chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding, for a public purpose described in subsection 1, or may exchange that land for other land of equal value, if:
(a) The person from whom the land was received or acquired or his successor in interest refuses to accept the reconveyance or states in writing that he is unable to accept the reconveyance; or
(b) The land has been combined with other land owned by the county and improved in such manner as would reasonably preclude the division of the land, together with the land with which it has been combined, into separate parcels.
κ2005 Statutes of Nevada, Page 1789 (CHAPTER 423, SB 326)κ
the land, together with the land with which it has been combined, into separate parcels.
Sec. 6. NRS 268.050 is hereby amended to read as follows:
268.050 1. The governing body of any incorporated city in this State may reconvey all the right, title and interest of the city in and to any land donated, dedicated, acquired in accordance with chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding, for a public park, public square, public landing, agricultural fairground, aviation field, automobile parking ground or facility for the accommodation of the traveling public, or land held in trust for the public for any other public use or uses, or any part thereof, to the person:
(a) By whom the land was donated or dedicated or to his heirs, assigns or successors, upon such terms as may be prescribed by a resolution of the governing body; or
(b) From whom the land was acquired in accordance with chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding, or to his heirs, assigns or successors, except as otherwise provided in section 3 of this act, for an amount equal to the appraised value of the land at the time of the reconveyance.
Κ The reconveyance may be made whether the land is held by the city solely or as tenant in common with any other municipality or other political subdivision of this State under the dedication.
2. If the city has a planning commission, the governing body shall refer the proposal for reconveyance to the planning commission which shall consider the proposal and submit its recommendation to the governing body.
3. The governing body shall hold at least one public hearing upon the proposal for reconveyance. Notice of the time and place of the hearing must be:
(a) Published at least once in a newspaper of general circulation in the city or county;
(b) Mailed to all owners of record of real property located within 300 feet of the land proposed for reconveyance; and
(c) Posted in a conspicuous place on the property and, in this case, must set forth additionally the extent of the proposal for reconveyance.
Κ The hearing must be held not less than 10 days nor more than 40 days after the notice is so published, mailed and posted.
4. If the governing body, after the hearing, determines that maintenance of the property by the city solely or with a co-owner is unnecessarily burdensome or that reconveyance would be otherwise advantageous to the city and its citizens, the governing body shall formally adopt a resolution stating that determination. Upon the adoption of the resolution, the presiding officer of the governing body shall execute a deed of reconveyance on behalf of the city and the city clerk shall attest the deed under the seal of the city.
5. The governing body may sell land which has been donated, dedicated, acquired in accordance with chapter 37 of NRS, or purchased under the threat of an eminent domain proceeding, for a public purpose described in subsection 1, or may exchange that land for other land of equal value, if:
(a) The person from whom the land was received or acquired or his successor in interest refuses to accept the reconveyance or states in writing that he is unable to accept the reconveyance; or
κ2005 Statutes of Nevada, Page 1790 (CHAPTER 423, SB 326)κ
(b) The land has been combined with other land owned by the city and improved in such a manner as would reasonably preclude the division of the land, together with the land with which it has been combined, into separate parcels.
Sec. 7. NRS 279.471 is hereby amended to read as follows:
279.471 1. Except as otherwise provided in this subsection, an agency may exercise the power of eminent domain to acquire property for a redevelopment project only if the agency adopts a resolution that includes a written finding by the agency that a condition of blight exists for each individual parcel of property to be acquired by eminent domain. An agency may exercise the power of eminent domain to acquire a parcel of property that is not blighted for a redevelopment project if the agency adopts a resolution that includes a written finding by the agency that a condition of blight exists for at least two-thirds of the property within the redevelopment area at the time the redevelopment area was created.
2. In addition to the requirement set forth in subsection 1, in a county whose population is 100,000 or more, an agency may exercise the power of eminent domain to acquire property for a redevelopment project only if:
(a) The property sought to be acquired is necessary to carry out the redevelopment plan;
(b) The agency has adopted a resolution of necessity that complies with the requirements set forth in subsection [2;] 3; and
(c) The agency has made every reasonable effort to negotiate the purchase of the property.
[2.] 3. A resolution of necessity required pursuant to paragraph (b) of subsection [1] 2 must set forth:
(a) A statement that the property will be acquired for purposes of redevelopment as authorized pursuant to subsection 17 of NRS 37.010 and subsection 2 of NRS 279.470;
(b) A reasonably detailed description of the property to be acquired;
(c) A finding by the agency that the public interest and necessity require the acquisition of the property;
(d) A finding by the agency that acquisition of the property will be the option for redevelopment that is most compatible with the greatest public good and the least private injury; and
(e) A finding by the agency that acquisition of the property is necessary for purposes of redevelopment.
[3.] 4. After an agency adopts a resolution [of necessity,] pursuant to subsection 1 or 2, the resolution so adopted and the findings set forth in the resolution are final and conclusive and are not subject to judicial review unless credible evidence is adduced to suggest that the resolution or the findings set forth therein were procured through bribery or fraud.
Sec. 8. NRS 408.533 is hereby amended to read as follows:
408.533 1. [All] Except as otherwise provided in section 3 of this act, all real property, interests therein or improvements thereon and personal property acquired before, on or after April 1, 1957, in accordance with the provisions of NRS 408.487 and 408.489 must, after approval by the Board and if no longer needed for highway purposes, be disposed of by the Director in accordance with the provisions of subsection 2, except that:
(a) When the property was originally donated to the State, no charge may be made if it is returned to the original owner or to the holder of the reversionary right.
κ2005 Statutes of Nevada, Page 1791 (CHAPTER 423, SB 326)κ
(b) When the property has been wholly or partially paid for by towns, cities or counties, disposal of the property and of money received therefor must be agreed upon by the governing bodies of the towns, cities and counties and the Department.
(c) When the title to the real property has been acquired in fee pursuant to NRS 408.487 and 408.489 and, in the opinion of the Board, a sale by means of a public auction or sealed bids is uneconomical or impractical because:
(1) There is no access to the property;
(2) The property has value or an increased value only to a single adjoining property owner; or
(3) Such a sale would work an undue hardship upon a property owner as a result of a severance of the property of that owner or a denial of access to a public highway,
Κ the Board may enter into a direct sale of the property with such an owner or any other person for its fair market value.
(d) When the property has been acquired and the property or any portion of the property is no longer needed for highway purposes, the Department shall give notice of its intention to dispose of the property by publication in a newspaper of general circulation in the county where the property is situated. The notice must include the Departments appraisal of the fair market value of the property. Any person from whom the property was purchased or his heir or grantee may purchase the property at its fair market value by direct sale from the Department within 60 days after the notice is published. If more than one person qualified to purchase the property by direct sale pursuant to this paragraph so requests, the person with the superior claim, as determined by the Department in its sole discretion, is entitled to purchase the property by direct sale. If a person who is entitled to purchase the property by direct sale pursuant to this paragraph reasonably believes that the Departments appraisal of the property is greater than the fair market value of the property, the person may file an objection to the appraisal with the Department. The Department shall set forth the procedure for filing an objection and the process under which a final determination will be made of the fair market value of the property for which an objection is filed. The Department shall sell the property in the manner provided in subsection 2 if:
(1) No person requests to purchase the property by direct sale within 60 days after the notice is published pursuant to this paragraph; or
(2) A person who files an objection pursuant to this paragraph fails, within 10 business days after he receives a written notice of the final determination of the fair market value of the property, to notify the Department in writing that he wishes to purchase the property at the fair market value set forth in the notice.
(e) When the property is sought by another public agency for a reasonable public use, the Department may first offer the property to the public agency at its fair market value.
2. All property, interests or improvements not included within the provisions of subsection 1 must first be offered for sale by the Department singly or in combination at public auction or by sealed bids. If the highest bid received is 90 percent or more of the Departments appraisal of the fair market value of the property, the property may be sold to the highest bidder. The notice and the terms of the sale must be published in a newspaper of general circulation in the county where the property is situated. The auctions and openings of bids must be conducted by the Department.
κ2005 Statutes of Nevada, Page 1792 (CHAPTER 423, SB 326)κ
and openings of bids must be conducted by the Department. If the property cannot be sold for 90 percent or more of its fair market value, the Department may enter into a written listing agreement with a person licensed pursuant to chapter 645 of NRS to sell or lease the property for 90 percent or more of its fair market value.
3. It is conclusively presumed in favor of the Department and any purchaser for value that the Department acted within its lawful authority in acquiring and disposing of the property, and that the Director acted within his lawful authority in executing any conveyance vesting title in the purchaser. All such conveyances must be quitclaim in nature and the Department shall not warrant title, furnish title insurance or pay the tax on transfer of real property.
4. No person has a right of action against the Department or its employees for a violation of this section. This subsection does not prevent an action by the Attorney General on behalf of the State of Nevada or any aggrieved person.
5. All sums of money received by the Department for the sale of real and personal property must be deposited with the State Treasurer to be credited to the State Highway Fund, unless the Federal Highway Administration participated in acquisition of the property, in which case a pro rata share of the money obtained by disposal of the property must be paid to the Federal Highway Administration.
6. The Department may reserve and except easements, rights or interests from the conveyance of any real property disposed of in accordance with this section or exchanged pursuant to subsection 5 of NRS 408.489. The easements, rights or interests include, but are not limited to:
(a) Abutters rights of light, view or air.
(b) Easements of access to and from abutting land.
(c) Covenants prohibiting the use of signs, structures or devices advertising activities not conducted, services not rendered or goods not produced or available on the real property.
Sec. 9. The provisions of this act apply to an action in eminent domain that is filed on or after the effective date of this act.
Sec. 10. This act becomes effective upon passage and approval.
________
Senate Bill No. 467Committee on Government Affairs
CHAPTER 424
AN ACT relating to public works; requiring only first tier subcontractors to be listed in the bid by the prime contractor in certain circumstances; providing an exception to the competitive bidding process in certain circumstances; requiring an arbitration clause in certain public works contracts; revising the requirements for a request for preliminary proposals for the design and construction of certain public works; decreasing the required number of proposals required before awarding a contract to a design-build team; requiring certain proposals and related information to be made available to the public; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
κ2005 Statutes of Nevada, Page 1793 (CHAPTER 424, SB 467)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 338.010 is hereby amended to read as follows:
338.010 As used in this chapter:
1. Authorized representative means a person designated by a [governing] public body to be responsible for the development [and] , solicitation, award or administration of contracts for public works pursuant to this chapter.
2. Contract means a written contract entered into between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work.
3. Contractor means:
(a) A person who is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS.
(b) A design-build team.
4. Day labor means all cases where public bodies, their officers, agents or employees, hire, supervise and pay the wages thereof directly to a workman or workmen employed by them on public works by the day and not under a contract in writing.
5. Design-build contract means a contract between a public body and a design-build team in which the design-build team agrees to design and construct a public work.
6. Design-build team means an entity that consists of:
(a) At least one person who is licensed as a general engineering contractor or a general building contractor pursuant to chapter 624 of NRS; and
(b) For a public work that consists of:
(1) A building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS.
(2) Anything other than a building and its site, at least one person who holds a certificate of registration to practice architecture pursuant to chapter 623 of NRS or landscape architecture pursuant to chapter 623A of NRS or who is licensed as a professional engineer pursuant to chapter 625 of NRS.
7. Design professional means:
(a) A person who is licensed as a professional engineer pursuant to chapter 625 of NRS;
(b) A person who is licensed as a professional land surveyor pursuant to chapter 625 of NRS;
(c) A person who holds a certificate of registration to engage in the practice of architecture, interior design or residential design pursuant to chapter 623 of NRS;
(d) A person who holds a certificate of registration to engage in the practice of landscape architecture pursuant to chapter 623A of NRS; or
(e) A business entity that engages in the practice of professional engineering, land surveying, architecture or landscape architecture.
8. Eligible bidder means a person who is:
(a) Found to be a responsible and responsive contractor by a local government or its authorized representative which requests bids for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373; or
κ2005 Statutes of Nevada, Page 1794 (CHAPTER 424, SB 467)κ
(b) Determined by a public body or its authorized representative which awarded a contract for a public work pursuant to NRS 338.1375 to 338.139, inclusive, to be qualified to bid on that contract pursuant to NRS 338.1379 or 338.1382.
9. General contractor means a person who is licensed to conduct business in one, or both, of the following branches of the contracting business:
(a) General engineering contracting, as described in subsection 2 of NRS 624.215.
(b) General building contracting, as described in subsection 3 of NRS 624.215.
10. Governing body means the board, council, commission or other body in which the general legislative and fiscal powers of a local government are vested.
11. Local government means every political subdivision or other entity which has the right to levy or receive money from ad valorem or other taxes or any mandatory assessments, and includes, without limitation, counties, cities, towns, boards, school districts and other districts organized pursuant to chapters 244A, 309, 318, 379, 474, 538, 541, 543 and 555 of NRS, NRS 450.550 to 450.750, inclusive, and any agency or department of a county or city which prepares a budget separate from that of the parent political subdivision. The term includes a person who has been designated by the governing body of a local government to serve as its authorized representative.
12. Offense means failing to:
(a) Pay the prevailing wage required pursuant to this chapter;
(b) Pay the contributions for unemployment compensation required pursuant to chapter 612 of NRS;
(c) Provide and secure compensation for employees required pursuant to chapters 616A to 617, inclusive, of NRS; or
(d) Comply with subsection 4 or 5 of NRS 338.070.
13. Prime contractor means a contractor who:
(a) Contracts to construct an entire project;
(b) Coordinates all work performed on the entire project;
(c) Uses his own workforce to perform all or a part of the public work; and
(d) Contracts for the services of any subcontractor or independent contractor or is responsible for payment to any contracted subcontractors or independent contractors.
Κ The term includes, without limitation, a general contractor or a specialty contractor who is authorized to bid on a project pursuant to NRS 338.139 or 338.148.
14. Public body means the State, county, city, town, school district or any public agency of this State or its political subdivisions sponsoring or financing a public work.
15. Public work means any project for the new construction, repair or reconstruction of:
(a) A project financed in whole or in part from public money for:
(1) Public buildings;
(2) Jails and prisons;
(3) Public roads;
(4) Public highways;
κ2005 Statutes of Nevada, Page 1795 (CHAPTER 424, SB 467)κ
(5) Public streets and alleys;
(6) Public utilities;
(7) Publicly owned water mains and sewers;
(8) Public parks and playgrounds;
(9) Public convention facilities which are financed at least in part with public money; and
(10) All other publicly owned works and property.
(b) A building for the University and Community College System of Nevada of which 25 percent or more of the costs of the building as a whole are paid from money appropriated by this State or from federal money.
16. Specialty contractor means a person who is licensed to conduct business as described in subsection 4 of NRS 624.215.
17. Stand-alone underground utility project means an underground utility project that is not integrated into a larger project, including, without limitation:
(a) An underground sewer line or an underground pipeline for the conveyance of water, including facilities appurtenant thereto; and
(b) A project for the construction or installation of a storm drain, including facilities appurtenant thereto,
Κ that is not located at the site of a public work for the design and construction of which a public body is authorized to contract with a design-build team pursuant to subsection 2 of NRS 338.1711.
18. Subcontract means a written contract entered into between:
(a) A contractor and a subcontractor or supplier; or
(b) A subcontractor and another subcontractor or supplier,
Κ for the provision of labor, materials, equipment or supplies for a construction project.
19. Subcontractor means a person who:
(a) Is licensed pursuant to the provisions of chapter 624 of NRS or performs such work that he is not required to be licensed pursuant to chapter 624 of NRS; and
(b) Contracts with a contractor, another subcontractor or a supplier to provide labor, materials or services for a construction project.
20. Supplier means a person who provides materials, equipment or supplies for a construction project.
21. Wages means:
(a) The basic hourly rate of pay; and
(b) The amount of pension, health and welfare, vacation and holiday pay, the cost of apprenticeship training or other similar programs or other bona fide fringe benefits which are a benefit to the workman.
22. Workman means a skilled mechanic, skilled workman, semiskilled mechanic, semiskilled workman or unskilled workman in the service of a contractor or subcontractor under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully employed. The term does not include a design professional.
Secs. 2 and 3. (Deleted by amendment.)
Sec. 4. NRS 338.1377 is hereby amended to read as follows:
338.1377 Except as otherwise provided in NRS 338.1382, if a governing body that sponsors or finances a public work elects to award contracts for public works pursuant to the provisions of NRS 338.1377 to 338.139, inclusive, the governing body shall adopt the following criteria for determining whether a person who has applied pursuant to NRS 338.1379 is qualified to bid on contracts for public works of the local government:
κ2005 Statutes of Nevada, Page 1796 (CHAPTER 424, SB 467)κ
determining whether a person who has applied pursuant to NRS 338.1379 is qualified to bid on contracts for public works of the local government:
1. Whether the applicant possesses a valid contractors license of a class corresponding to the work to be required by the local government;
2. Whether the applicant has the ability to obtain the necessary bonding for the work to be required by the local government;
3. Whether the applicant has successfully completed [one or more] an appropriate number of projects as determined by the local government, but not to exceed 5 projects, during the 5 years immediately preceding the date of application of similar size, scope or type as the work to be required by the local government;
4. Whether the principal personnel employed by the applicant have the necessary professional qualifications and experience for the work to be required by the local government;
5. Whether the applicant has breached any contracts with a public agency or person in this State or any other state during the 5 years immediately preceding the date of application;
6. Whether the applicant has been disqualified from being awarded a contract pursuant to NRS 338.017 or 338.13895;
7. Whether the applicant has been convicted of a violation for discrimination in employment during the 2 years immediately preceding the date of application;
8. Whether the applicant has the ability to obtain and maintain insurance coverage for public liability and property damage within limits sufficient to protect the applicant and all the subcontractors of the applicant from claims for personal injury, accidental death and damage to property that may arise in connection with the work to be required by the local government;
9. Whether the applicant has established a safety program that complies with the requirements of chapter 618 of NRS;
10. Whether the applicant has been disciplined or fined by the State Contractors Board or another state or federal agency for conduct that relates to the ability of the applicant to perform the work to be required by the local government;
11. Whether, during the 5 years immediately preceding the date of application, the applicant has filed as a debtor under the provisions of the United States Bankruptcy Code;
12. Whether the application of the applicant is truthful and complete; and
13. Whether, during the 5 years immediately preceding the date of application, the applicant has, as a result of causes within the control of the applicant or a subcontractor or supplier of the applicant, failed to perform any contract:
(a) In the manner specified by the contract and any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative;
(b) Within the time specified by the contract unless extended by the person or governmental entity that awarded the contract or its authorized representative; or
(c) For the amount of money specified in the contract or as modified by any change orders initiated or approved by the person or governmental entity that awarded the contract or its authorized representative.
κ2005 Statutes of Nevada, Page 1797 (CHAPTER 424, SB 467)κ
Κ Evidence of the failures described in this subsection may include, without limitation, the assessment of liquidated damages against the applicant, the forfeiture of any bonds posted by the applicant, an arbitration award granted against the applicant or a decision by a court of law against the applicant.
Sec. 4.5. NRS 338.1378 is hereby amended to read as follows:
338.1378 1. Before a [governing body] local government accepts applications pursuant to NRS 338.1379, the [governing body] local government must, in accordance with subsection 2, advertise in a newspaper that is:
(a) Qualified pursuant to the provisions of chapter 238 of NRS; and
(b) Published in a county in which the contracts for the potential public works will be performed or, if no qualified newspaper is published in that county, published in a qualified newspaper that is published in the State of Nevada and which has a general circulation in the county in which the contracts for the potential public works will be performed.
2. An advertisement required pursuant to subsection 1:
(a) Must be published at least once not less than 21 days before applications are to be submitted to the [governing body;] local government; and
(b) Must include:
(1) A description of the potential public works for which applications to qualify as a bidder are being accepted;
(2) The time and place at which applications are to be submitted to the [governing body;] local government;
(3) The place at which applications may be obtained; and
(4) Any other information that the [governing body] local government deems necessary.
Sec. 5. NRS 338.1379 is hereby amended to read as follows:
338.1379 1. Except as otherwise provided in NRS 338.1382, a contractor who wishes to qualify as a bidder on a contract for a public work must submit an application to the State Public Works Board or the [governing body.] local government.
2. Upon receipt of an application pursuant to subsection 1, the State Public Works Board or the [governing body] local government shall:
(a) Investigate the applicant to determine whether he is qualified to bid on a contract; and
(b) After conducting the investigation, determine whether the applicant is qualified to bid on a contract. The determination must be made within 45 days after receipt of the application.
3. The State Public Works Board or the [governing body] local government shall notify each applicant in writing of its determination. If an application is denied, the notice must set forth the reasons for the denial and inform the applicant of his right to a hearing pursuant to NRS 338.1381.
4. The State Public Works Board or the [governing body] local government may determine an applicant is qualified to bid:
(a) On a specific project; or
(b) On more than one project over a period of [12 months; or
(c) On more than one project over a period of 24 months.] time to be determined by the State Public Works Board or the local government.
5. The State Public Works Board shall not use any criteria other than criteria adopted by regulation pursuant to NRS 338.1375 in determining whether to approve or deny an application.
κ2005 Statutes of Nevada, Page 1798 (CHAPTER 424, SB 467)κ
6. The [governing body] local government shall not use any criteria other than the criteria described in NRS 338.1377 in determining whether to approve or deny an application.
7. Financial information and other data pertaining to the net worth of an applicant which is gathered by or provided to the State Public Works Board or a [governing body] local government to determine the financial ability of an applicant to perform a contract is confidential and not open to public inspection.
Sec. 6. NRS 338.1381 is hereby amended to read as follows:
338.1381 1. If, within 10 days after receipt of the notice denying an application pursuant to NRS 338.1379 or disqualifying a subcontractor pursuant to NRS 338.1376, the applicant or subcontractor, as applicable, files a written request for a hearing with the State Public Works Board or the [governing body,] local government, the Board or governing body shall set the matter for a hearing within 20 days after receipt of the request. The hearing must be held not later than 45 days after the receipt of the request for a hearing unless the parties, by written stipulation, agree to extend the time.
2. The hearing must be held at a time and place prescribed by the Board or [governing body.] local government. At least 10 days before the date set for the hearing, the Board or [governing body] local government shall serve the applicant or subcontractor with written notice of the hearing. The notice may be served by personal delivery to the applicant or subcontractor or by certified mail to the last known business or residential address of the applicant or subcontractor.
3. The applicant or subcontractor has the burden at the hearing of proving by substantial evidence that the applicant is entitled to be qualified to bid on a contract for a public work, or that the subcontractor is qualified to be a subcontractor on a contract for a public work.
4. In conducting a hearing pursuant to this section, the Board or governing body may:
(a) Administer oaths;
(b) Take testimony;
(c) Issue subpoenas to compel the attendance of witnesses to testify before the Board or governing body;
(d) Require the production of related books, papers and documents; and
(e) Issue commissions to take testimony.
5. If a witness refuses to attend or testify or produce books, papers or documents as required by the subpoena issued pursuant to subsection 4, the Board or governing body may petition the district court to order the witness to appear or testify or produce the requested books, papers or documents.
6. The Board or governing body shall issue a decision on the matter [within 5 days after] during the hearing . [and notify the applicant, in writing, of its decision within 15 days after it is issued.] The decision of the Board or governing body is a final decision for purposes of judicial review.
Sec. 7. NRS 338.1385 is hereby amended to read as follows:
338.1385 1. Except as otherwise provided in subsection [8] 9 and NRS 338.1906 and 338.1907, this State, or a governing body or its authorized representative that awards a contract for a public work in accordance with paragraph (a) of subsection 1 of NRS 338.1373 shall not:
(a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work.
κ2005 Statutes of Nevada, Page 1799 (CHAPTER 424, SB 467)κ
performed for bids for the public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.
(b) Commence a public work for which the estimated cost is $100,000 or less unless it complies with the provisions of NRS 338.1386, 338.13862 and 338.13864.
(c) Divide a public work into separate portions to avoid the requirements of paragraph (a) or (b).
2. At least once each quarter, the authorized representative of a public body shall report to the public body any contract that [he] the authorized representative awarded pursuant to subsection 1 in the immediately preceding quarter.
3. Each advertisement for bids must include a provision that sets forth the requirement that a contractor must be qualified pursuant to NRS 338.1379 or 338.1382 to bid on the contract.
4. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the public work must be awarded on the basis of bids received.
5. Except as otherwise provided in subsection 6 and NRS 338.1389, a public body or its authorized representative shall award a contract to the lowest responsive and responsible bidder.
6. Any bids received in response to an advertisement for bids may be rejected if the public body or its authorized representative responsible for awarding the contract determines that:
(a) The bidder is not a qualified bidder pursuant to NRS 338.1379 or 338.1382;
(b) The bidder is not responsive or responsible;
(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plans or specifications; or
(d) The public interest would be served by such a rejection.
7. A public body may let a contract without competitive bidding if no bids were received in response to an advertisement for bids and:
(a) The public body publishes a notice stating that no bids were received and that the contract may be let without further bidding;
(b) The public body considers any bid submitted in response to the notice published pursuant to paragraph (a);
(c) The public body lets the contract not less than 7 days after publishing a notice pursuant to paragraph (a); and
(d) The contract is awarded to the bidder who has submitted the lowest responsive and responsible bid.
8. Before a public body may commence the performance of a public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, the public body shall prepare and make available for public inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the public body intends to assign to the public work, together with their classifications and an estimate of the direct and indirect costs of their labor;
κ2005 Statutes of Nevada, Page 1800 (CHAPTER 424, SB 467)κ
(b) A list of all equipment that the public body intends to use on the public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;
(c) An estimate of the cost of administrative support for the persons assigned to the public work;
(d) An estimate of the total cost of the public work, including the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and
(e) An estimate of the amount of money the public body expects to save by rejecting the bids and performing the public work itself.
[8.] 9. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district;
(d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or
(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.
Sec. 8. NRS 338.1385 is hereby amended to read as follows:
338.1385 1. Except as otherwise provided in subsection [8,] 9, this State, or a governing body or its authorized representative that awards a contract for a public work in accordance with paragraph (a) of subsection 1 of NRS 338.1373 shall not:
(a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and having a general circulation within the county.
(b) Commence a public work for which the estimated cost is $100,000 or less unless it complies with the provisions of NRS 338.1386, 338.13862 and 338.13864.
(c) Divide a public work into separate portions to avoid the requirements of paragraph (a) or (b).
2. At least once each quarter, the authorized representative of a public body shall report to the public body any contract that [he] the authorized representative awarded pursuant to subsection 1 in the immediately preceding quarter.
3. Each advertisement for bids must include a provision that sets forth the requirement that a contractor must be qualified pursuant to NRS 338.1379 or 338.1382 to bid on the contract.
4. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the public work must be awarded on the basis of bids received.
κ2005 Statutes of Nevada, Page 1801 (CHAPTER 424, SB 467)κ
5. Except as otherwise provided in subsection 6 and NRS 338.1389, a public body or its authorized representative shall award a contract to the lowest responsive and responsible bidder.
6. Any bids received in response to an advertisement for bids may be rejected if the public body or its authorized representative responsible for awarding the contract determines that:
(a) The bidder is not a qualified bidder pursuant to NRS 338.1379 or 338.1382;
(b) The bidder is not responsive or responsible;
(c) The quality of the services, materials, equipment or labor offered does not conform to the approved plans or specifications; or
(d) The public interest would be served by such a rejection.
7. A public body may let a contract without competitive bidding if no bids were received in response to an advertisement for bids and:
(a) The public body publishes a notice stating that no bids were received and that the contract may be let without further bidding;
(b) The public body considers any bid submitted in response to the notice published pursuant to paragraph (a);
(c) The public body lets the contract not less than 7 days after publishing a notice pursuant to paragraph (a); and
(d) The contract is awarded to the lowest responsive and responsible bidder.
8. Before a public body may commence the performance of a public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, the public body shall prepare and make available for public inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the public body intends to assign to the public work, together with their classifications and an estimate of the direct and indirect costs of their labor;
(b) A list of all equipment that the public body intends to use on the public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;
(c) An estimate of the cost of administrative support for the persons assigned to the public work;
(d) An estimate of the total cost of the public work, including, the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and
(e) An estimate of the amount of money the public body expects to save by rejecting the bids and performing the public work itself.
[8.] 9. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district; [or]
(d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or
κ2005 Statutes of Nevada, Page 1802 (CHAPTER 424, SB 467)κ
(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.
Secs. 9-11. (Deleted by amendment.)
Sec. 12. NRS 338.13895 is hereby amended to read as follows:
338.13895 1. [A public body or its authorized representative awarding a contract for a public work] The State Public Works Board shall not award [the] a contract to a person who, at the time of the bid, is not properly licensed under the provisions of chapter 624 of NRS or if the contract would exceed the limit of his license. A subcontractor who is:
(a) Named in the bid for the contract as a subcontractor who will provide a portion of the work on the public work pursuant to NRS 338.141; and
(b) Not properly licensed for that portion of the work, or who, at the time of the bid, is on disqualified status with the State Public Works Board pursuant to NRS 338.1376,
Κ shall be deemed unacceptable. If the subcontractor is deemed unacceptable pursuant to this subsection, the contractor shall provide an acceptable subcontractor.
2. A local government awarding a contract for a public work shall not award the contract to a person who, at the time of the bid, is not properly licensed under the provisions of chapter 624 of NRS or if the contract would exceed the limit of his license. A subcontractor who is:
(a) Named in the bid for the contract as a subcontractor who will provide a portion of the work on the public work pursuant to NRS 338.141; and
(b) Not properly licensed for that portion of work,
Κ shall be deemed unacceptable. If the subcontractor is deemed unacceptable pursuant to this subsection, the contractor shall provide an acceptable subcontractor with no increase in the amount of the contract.
3. If, after awarding the contract, but before commencement of the work, the public body or its authorized representative discovers that the person to whom the contract was awarded is not licensed, or that the contract would exceed his license, the public body or its authorized representative shall rescind the award of the contract and may accept the next lowest bid for that public work from a responsive bidder who was determined by the public body or its authorized representative to be a qualified bidder pursuant to NRS 338.1379 or 338.1382 without requiring that new bids be submitted.
Sec. 12.5. (Deleted by amendment.)
Sec. 13. NRS 338.140 is hereby amended to read as follows:
338.140 1. A public body shall not draft or cause to be drafted specifications for bids, in connection with a public work:
(a) In such a manner as to limit the bidding, directly or indirectly, to any one specific concern.
(b) Except in those instances where the product is designated to match others in use on a particular public improvement either completed or in the course of completion, calling for a designated material, product, thing or service by specific brand or trade name unless the specification lists at least two brands or trade names of comparable quality or utility and is followed by the words or equal so that bidders may furnish any equal material, product, thing or service.
κ2005 Statutes of Nevada, Page 1803 (CHAPTER 424, SB 467)κ
(c) In such a manner as to hold the bidder to whom such contract is awarded responsible for extra costs incurred as a result of errors or omissions by the public body in the contract documents.
(d) In such a manner as to require a bidder to furnish to the public body, whether before or after the bid is submitted, documents generated in the preparation or determination of prices included in the bid, except when requested by the public body for:
(1) A determination of the price of additional work performed pursuant to a change order;
(2) An evaluation of claims for costs incurred for the performance of additional work;
(3) Preparation for arbitration or litigation; [or]
(4) A determination of the validity of the protest of a bid;
(5) A determination of the validity of an increase or decrease in the price of a contract in accordance with a provision in the contract which authorizes such an increase or decrease to correspond to changing market conditions; or
(6) Any combination thereof.
Κ A document furnished to a public body pursuant to this paragraph is confidential and must be returned to the bidder.
2. In those cases involving a unique or novel product application required to be used in the public interest, or where only one brand or trade name is known to the public body, it may list only one.
3. Specifications must provide a period of time of at least 7 days after award of the contract for submission of data substantiating a request for a substitution of an equal item.
Sec. 14. NRS 338.141 is hereby amended to read as follows:
338.141 1. Except as otherwise provided in NRS 338.1727, each bid submitted to a public body for any public work to which paragraph (a) of subsection 1 of NRS 338.1385 or paragraph (a) of subsection 1 of NRS 338.143 applies, must include:
(a) If the public body provides a list of the labor or portions of the public work which are estimated by the public body to exceed 3 percent of the estimated cost of the public work, the name of each first tier subcontractor who will provide such labor or portion of the work on the public work which is estimated to exceed 3 percent of the estimated cost of the public work; or
(b) If the public body does not provide a list of the labor or portions of the public work which are estimated by the public body to exceed 3 percent of the estimated cost of the public work, the name of each first tier subcontractor who will provide labor or a portion of the work on the public work to the prime contractor for which the first tier subcontractor will be paid an amount exceeding 5 percent of the prime contractors total bid. If the bid is submitted pursuant to this paragraph, within 2 hours after the completion of the opening of the bids, the contractors who submitted the three lowest bids must submit a list containing the name of each first tier subcontractor who will provide labor or a portion of the work on the public work to the prime contractor for which the first tier subcontractor will be paid an amount exceeding 1 percent of the prime contractors total bid or $50,000, whichever is greater, and the number of the license issued to the first tier subcontractor pursuant to chapter 624 of NRS.
κ2005 Statutes of Nevada, Page 1804 (CHAPTER 424, SB 467)κ
2. The lists required by subsection 1 must include a description of the labor or portion of the work which each first tier subcontractor named in the list will provide to the prime contractor.
3. A prime contractor shall include his name on a list required by paragraph (a) of subsection 1 if he will perform any of the work required to be listed pursuant to paragraph (a) of subsection 1.
4. Except as otherwise provided in this subsection, if a contractor:
(a) Fails to submit the list within the required time; or
(b) Submits a list that includes the name of a subcontractor who, at the time of the submission of the list, is on disqualified status with the State Public Works Board pursuant to NRS 338.1376,
Κ the contractors bid shall be deemed not responsive. A contractors bid shall not be deemed not responsive on the grounds that the contractor submitted a list that includes the name of a subcontractor who, at the time of the submission of the list, is on disqualified status with the State Public Works Board pursuant to NRS 338.1376 if the contractor, before the award of the contract, provides an acceptable replacement subcontractor in the manner set forth in subsection 1 or 2 of NRS 338.13895.
5. A contractor whose bid is accepted shall not substitute a subcontractor for any subcontractor who is named in the bid, unless:
(a) The public body or its authorized representative objects to the subcontractor, requests in writing a change in the subcontractor and pays any increase in costs resulting from the change.
(b) The substitution is approved by the public body or its authorized representative. The substitution must be approved if the public body or its authorized representative determines that:
(1) The named subcontractor, after having a reasonable opportunity, fails or refuses to execute a written contract with the contractor which was offered to the named subcontractor with the same general terms that all other subcontractors on the project were offered;
(2) The named subcontractor files for bankruptcy or becomes insolvent;
(3) The named subcontractor fails or refuses to perform his subcontract within a reasonable time or is unable to furnish a performance bond and payment bond pursuant to NRS 339.025; or
(4) The named subcontractor is not properly licensed to provide that labor or portion of the work.
(c) If the public body awarding the contract is a governing body, the public body or its authorized representative, in awarding the contract pursuant to NRS 338.1375 to 338.139, inclusive:
(1) Applies such criteria set forth in NRS 338.1377 as are appropriate for subcontractors and determines that the subcontractor does not meet that criteria; and
(2) Requests in writing a substitution of the subcontractor.
6. If a contractor indicates pursuant to subsection 1 that he will perform a portion of work on the public work and thereafter requests to substitute a subcontractor to perform such work, the contractor shall provide to the public body a written explanation in the form required by the public body which contains the reasons that:
(a) A subcontractor was not originally contemplated to be used on that portion of the public work; and
(b) The substitution is in the best interest of the public body.
κ2005 Statutes of Nevada, Page 1805 (CHAPTER 424, SB 467)κ
7. As used in this section [, general] :
(a) First tier subcontractor means a subcontractor who contracts directly with a prime contractor to provide labor, materials or services for a construction project.
(b) General terms means the terms and conditions of a contract that set the basic requirements for a public work and apply without regard to the particular trade or specialty of a subcontractor, but does not include any provision that controls or relates to the specific portion of the public work that will be completed by a subcontractor, including, without limitation, the materials to be used by the subcontractor or other details of the work to be performed by the subcontractor.
Sec. 15. NRS 338.143 is hereby amended to read as follows:
338.143 1. Except as otherwise provided in subsection [7] 8 and NRS 338.1907, a local government or its authorized representative that awards a contract for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373 shall not:
(a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.
(b) Commence a public work for which the estimated cost is $100,000 or less unless it complies with the provisions of NRS 338.1442, 338.1444 and 338.1446.
(c) Divide a project work into separate portions to avoid the requirements of paragraph (a) or (b).
2. At least once each quarter, the authorized representative of a local government shall report to the [local government] governing body any contract that [he] the authorized representative awarded pursuant to subsection 1 in the immediately preceding quarter.
3. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the public work must be awarded on the basis of bids received.
4. Except as otherwise provided in subsection 5 and NRS 338.147, the local government or its authorized representative shall award a contract to the lowest responsive and responsible bidder.
5. Any bids received in response to an advertisement for bids may be rejected if the local government or its authorized representative responsible for awarding the contract determines that:
(a) The bidder is not responsive or responsible;
(b) The quality of the services, materials, equipment or labor offered does not conform to the approved plans or specifications; or
(c) The public interest would be served by such a rejection.
6. A local government may let a contract without competitive bidding if no bids were received in response to an advertisement for bids and:
(a) The local government publishes a notice stating that no bids were received and that the contract may be let without further bidding;
(b) The local government considers any bid submitted in response to the notice published pursuant to paragraph (a);
κ2005 Statutes of Nevada, Page 1806 (CHAPTER 424, SB 467)κ
(c) The local government lets the contract not less than 7 days after publishing a notice pursuant to paragraph (a); and
(d) The contract is awarded to the lowest responsive and responsible bidder.
7. Before a local government may commence the performance of a public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, the local government shall prepare and make available for public inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the local government intends to assign to the public work, together with their classifications and an estimate of the direct and indirect costs of their labor;
(b) A list of all equipment that the local government intends to use on the public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;
(c) An estimate of the cost of administrative support for the persons assigned to the public work;
(d) An estimate of the total cost of the public work, including the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and
(e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the public work itself.
[7.] 8. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district;
(d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or
(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.
Sec. 16. NRS 338.143 is hereby amended to read as follows:
338.143 1. Except as otherwise provided in subsection [7,] 8, a local government or its authorized representative that awards a contract for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373 shall not:
(a) Commence a public work for which the estimated cost exceeds $100,000 unless it advertises in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed for bids for the public work. If no qualified newspaper is published within the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation within the county.
(b) Commence a public work for which the estimated cost is $100,000 or less unless it complies with the provisions of NRS 338.1442, 338.1444 or 338.1446.
κ2005 Statutes of Nevada, Page 1807 (CHAPTER 424, SB 467)κ
(c) Divide a public work into separate portions to avoid the requirements of paragraph (a) or (b).
2. At least once each quarter, the authorized representative of a local government shall report to the [local government] governing body any contract that [he] the authorized representative awarded pursuant to subsection 1 in the immediately preceding quarter.
3. Approved plans and specifications for the bids must be on file at a place and time stated in the advertisement for the inspection of all persons desiring to bid thereon and for other interested persons. Contracts for the public work must be awarded on the basis of bids received.
4. Except as otherwise provided in subsection 5 and NRS 338.147, the local government or its authorized representative shall award a contract to the lowest responsive and responsible bidder.
5. Any bids received in response to an advertisement for bids may be rejected if the local government or its authorized representative responsible for awarding the contract determines that:
(a) The bidder is not responsive or responsible;
(b) The quality of the services, materials, equipment or labor offered does not conform to the approved plans or specifications; or
(c) The public interest would be served by such a rejection.
6. A local government may let a contract without competitive bidding if no bids were received in response to an advertisement for bids and:
(a) The local government publishes a notice stating that no bids were received and that the contract may be let without further bidding;
(b) The local government considers any bid submitted in response to the notice published pursuant to paragraph (a);
(c) The local government lets the contract not less than 7 days after publishing a notice pursuant to paragraph (a); and
(d) The contract is awarded to the lowest responsive and responsible bidder.
7. Before a local government may commence the performance of a public work itself pursuant to the provisions of this section, based upon a determination that the public interest would be served by rejecting any bids received in response to an advertisement for bids, the local government shall prepare and make available for public inspection a written statement containing:
(a) A list of all persons, including supervisors, whom the local government intends to assign to the public work, together with their classifications and an estimate of the direct and indirect costs of their labor;
(b) A list of all equipment that the local government intends to use on the public work, together with an estimate of the number of hours each item of equipment will be used and the hourly cost to use each item of equipment;
(c) An estimate of the cost of administrative support for the persons assigned to the public work;
(d) An estimate of the total cost of the public work, including the fair market value of or, if known, the actual cost of all materials, supplies, labor and equipment to be used for the public work; and
(e) An estimate of the amount of money the local government expects to save by rejecting the bids and performing the public work itself.
[7.] 8. This section does not apply to:
(a) Any utility subject to the provisions of chapter 318 or 710 of NRS;
κ2005 Statutes of Nevada, Page 1808 (CHAPTER 424, SB 467)κ
(b) Any work of construction, reconstruction, improvement and maintenance of highways subject to NRS 408.323 or 408.327;
(c) Normal maintenance of the property of a school district;
(d) The Las Vegas Valley Water District created pursuant to chapter 167, Statutes of Nevada 1947, the Moapa Valley Water District created pursuant to chapter 477, Statutes of Nevada 1983 or the Virgin Valley Water District created pursuant to chapter 100, Statutes of Nevada 1993; or
(e) The design and construction of a public work for which a public body contracts with a design-build team pursuant to NRS 338.1711 to 338.1727, inclusive.
Secs. 17-19. (Deleted by amendment.)
Sec. 20. NRS 338.150 is hereby amended to read as follows:
338.150 1. Except as otherwise provided in subsection 3, any public body charged with the drafting of specifications for a public work shall include in the specifications a clause [permitting] requiring arbitration of a dispute arising between the public body and the contractor engaged on a public work if the dispute cannot otherwise be settled.
2. Any dispute requiring arbitration must be handled in accordance with the construction industrys rules for arbitration as administered by the American Arbitration Association or the Nevada Arbitration Association.
3. The provisions of subsection 1 do not require the Department of Transportation to include such a clause in any contract entered into by the Department.
4. This section does not prohibit the use of alternate dispute resolution methods before arbitration.
Sec. 21. NRS 338.1711 is hereby amended to read as follows:
338.1711 1. Except as otherwise provided in this section and NRS 338.161 to 338.168, inclusive, a public body shall contract with a prime contractor for the construction of a public work for which the estimated cost exceeds $100,000.
2. A public body may contract with a design-build team for the design and construction of a public work that is a discrete project if the public body [determines that:
(a) The public work is:
(1) A plant or facility for the treatment and pumping of water or the treatment and disposal of wastewater or sewage, the estimated cost of which exceeds $100,000,000; or
(2) Any other type of public work, except a stand-alone underground utility project, the estimated cost of which exceeds $20,000,000; and
(b) Contracting with a design-build team will enable the public body to:
(1) Design and construct the public work at a cost that is significantly lower than the cost that the public body would incur to design and construct the public work using a different method;
(2) Design and construct the public work in a shorter time than would be required to design and construct the public work using a different method, if exigent circumstances require that the public work be designed and constructed within a short time; or
(3) Ensure that the design and construction of the public work is properly coordinated, if the public work is unique, highly technical and complex in nature.
3. Except as otherwise provided in subsection 4, each state agency and each department, division, board, unit or agency of a local government may contract with a design-build team for the design and construction of a public work if the public body that is responsible for financing the public work determines that:
κ2005 Statutes of Nevada, Page 1809 (CHAPTER 424, SB 467)κ
contract with a design-build team for the design and construction of a public work if the public body that is responsible for financing the public work determines that:
(a) The estimated cost of the public work is:
(1) At least $250,000 but less than $20,000,000 if the public work is] has approved the use of a design-build team for the design and construction of the public work and the public work:
(a) Is the construction of a park and appurtenances thereto, the rehabilitation or remodeling of a public building, or the construction of an addition to a public building;
[(2) At least $500,000 but less than $20,000,000 if the public work is the construction of a new public building;
(3) At least $5,000,000 but less than $100,000,000 if the public work is the construction, alteration or repair of a plant or facility for the treatment and pumping of water or the treatment and disposal of wastewater or sewage; or
(4) At least $5,000,000 but less than $20,000,000 if the public work is the construction, alteration or repair of any other fixed works as described in subsection 2 of NRS 624.215; and
(b) Contracting with a design-build team will enable the public body to:
(1) Design and construct the public work at a cost that is significantly lower than the cost that the public body would incur to design and construct the public work using a different method;
(2) Design and construct the public work in a shorter time than would be required to design and construct the public work using a different method, if exigent circumstances require that the public work be designed and constructed within a short time; or
(3) Ensure that the design and construction of the public work is properly coordinated, if the public work is unique, highly technical and complex in nature.
4. Each state agency and each department, division, board, unit or agency of a local government may contract with a design-build team once during each fiscal year for the design and construction of a public work subject to the provisions of subparagraph (4) of paragraph (a) of subsection 3.
5. Notwithstanding the provisions of subsections 1 to 4, inclusive, a public body may contract with:
(a) A nonprofit organization for the design and construction of a project to restore, enhance or develop wetlands.
(b) A prime contractor or design-build team with respect to a public work if the public body determines that the public work is:
(1) Not part of a larger public work; and
(2) Limited in scope to:
(I) Removal of asbestos;
(II) Replacement of equipment or systems for heating, ventilation and air-conditioning;
(III) Replacement of a roof;
(IV) Landscaping; or
(V) Restoration, enhancement or development of wetlands.
6. A public body that is required to contract with a prime contractor pursuant to subsection 1 or elects to contract with a prime contractor pursuant to subsection 5 shall select the prime contractor in accordance with the procedures for bidding that are set forth in:
κ2005 Statutes of Nevada, Page 1810 (CHAPTER 424, SB 467)κ
pursuant to subsection 5 shall select the prime contractor in accordance with the procedures for bidding that are set forth in:
(a) The provisions of NRS 338.1375 to 338.139, inclusive; or
(b) NRS 338.143 to 338.148, inclusive, if the public body is a local government that elects to award a contract for a public work in accordance with paragraph (b) of subsection 1 of NRS 338.1373.
7. As used in this section, state agency includes an agency, bureau, board, commission, department, division or any other unit of the Legislative Department, Judicial Department or Executive Department of State Government or the University and Community College System of Nevada.] or
(b) Has an estimated cost which exceeds $10,000,000.
Sec. 22. NRS 338.1715 is hereby amended to read as follows:
338.1715 A public body that contracts with a design-build team pursuant to NRS 338.1711 [and 338.1713] shall select the design-build team in accordance with the provisions of NRS 338.1721 to 338.1727, inclusive.
Sec. 23. NRS 338.1721 is hereby amended to read as follows:
338.1721 To qualify to participate in a project for the design and construction of a public work, a design-build team must:
1. [Obtain] Have the ability to obtain a performance bond and payment bond as required pursuant to NRS 339.025;
2. [Obtain] Have the ability to obtain insurance covering general liability and liability for errors and omissions;
3. Not have been found liable for breach of contract with respect to a previous project, other than a breach for legitimate cause [;] , during the 5 years immediately preceding the date of the advertisement for preliminary proposals;
4. Not have been disqualified from being awarded a contract pursuant to NRS 338.017, 338.13895, 338.1475 or 408.333;
5. Ensure that the members of the design-build team possess the licenses and certificates required to carry out the functions of their respective professions within this State; and
6. If the project is for the design and construction of a public work of the State, ensure that the prime contractor is qualified to bid on a public work of the State pursuant to NRS 338.1379.
Sec. 24. NRS 338.1723 is hereby amended to read as follows:
338.1723 1. A public body shall advertise for preliminary proposals for the design and construction of a public work by a design-build team in a newspaper qualified pursuant to chapter 238 of NRS that is published in the county where the public work will be performed. If no qualified newspaper is published in the county where the public work will be performed, the required advertisement must be published in some qualified newspaper that is printed in the State of Nevada and has a general circulation in the county.
2. A request for preliminary proposals published pursuant to subsection 1 must include, without limitation:
(a) A description of the public work to be designed and constructed;
(b) [Separate estimates] An estimate of the [costs of designing and constructing] cost to design and construct the public work;
(c) The dates on which it is anticipated that the separate phases of the design and construction of the public work will begin and end;
(d) The date by which preliminary proposals must be submitted to the public body [, which must not be less than 30 days after the date that the request for preliminary proposals is first published in a newspaper pursuant to subsection 1;
κ2005 Statutes of Nevada, Page 1811 (CHAPTER 424, SB 467)κ
request for preliminary proposals is first published in a newspaper pursuant to subsection 1;
(e) A statement setting forth the place and time in which a design-build team desiring to submit a proposal for the public work may obtain the information necessary to submit a proposal, including, without limitation, the information set forth in subsection 3; and
(f)] ;
(e) If the proposal is for a public work of the State, a statement setting forth that the prime contractor must be qualified to bid on a public work of the State pursuant to NRS 338.1379 before submitting a preliminary proposal [.
3. A public body shall maintain at the time and place set forth in the request for preliminary proposals the following information for inspection by a design-build team desiring to submit a proposal for the public work:
(a) The] ;
(f) A description of the extent to which designs must be completed for both preliminary and final proposals and any other requirements for the design and construction of the public work that the public body determines to be necessary;
[(b)] (g) A list of the requirements set forth in NRS 338.1721;
[(c)] (h) A list of the factors and relative weight assigned to each factor that the public body will use to evaluate design-build teams who submit a proposal for the public work [, including, without limitation:
(1) The relative weight to be assigned to each factor pursuant to NRS 338.1727; and
(2) A disclosure of whether the factors that are not related to cost are, when considered as a group, more or less important in the process of evaluation than the factor of cost;
(d)] ;
(i) Notice that a design-build team desiring to submit a proposal for the public work must include with its proposal the information used by the public body to determine finalists among the design-build teams submitting proposals pursuant to subsection 2 of NRS 338.1725 and a description of that information;
[(e) A statement that a design-build team whose prime contractor holds a certificate of eligibility to receive a preference in bidding on public works issued pursuant to NRS 338.1389 or 338.147 should submit a copy of the certificate of eligibility with its proposal; and
(f)] and
(j) A statement as to whether a design-build team that is selected as a finalist pursuant to NRS 338.1725 but is not awarded the design-build contract pursuant to NRS 338.1727 will be partially reimbursed for the cost of preparing a final proposal and, if so, an estimate of the amount of the partial reimbursement.
Sec. 25. NRS 338.1725 is hereby amended to read as follows:
338.1725 1. The public body shall select at least [three] two but not more than [five] four finalists from among the design-build teams that submitted preliminary proposals. If the public body does not receive at least [three] two preliminary proposals from design-build teams that the public body determines to be qualified pursuant to this section and NRS 338.1721, the public body may not contract with a design-build team for the design and construction of the public work.
κ2005 Statutes of Nevada, Page 1812 (CHAPTER 424, SB 467)κ
2. The public body shall select finalists pursuant to subsection 1 by:
(a) Verifying that each design-build team which submitted a preliminary proposal satisfies the requirements of NRS 338.1721; and
(b) Conducting an evaluation of the qualifications of each design-build team that submitted a preliminary proposal, including, without limitation, an evaluation of:
(1) The professional qualifications and experience of the members of the design-build team;
(2) The performance history of the members of the design-build team concerning other recent, similar projects completed by those members, if any;
(3) The safety programs established and the safety records accumulated by the members of the design-build team; and
(4) The proposed plan of the design-build team to manage the design and construction of the public work that sets forth in detail the ability of the design-build team to design and construct the public work . [; and
(5) The degree to which the preliminary proposal is responsive to the requirements of the public body for the submittal of a preliminary proposal.]
3. After the selection of finalists pursuant to this section, the public body shall make available to the public the results of the evaluations of preliminary proposals conducted pursuant to paragraph (b) of subsection 2 and the rankings of the design-build teams who submitted preliminary proposals.
Sec. 26. NRS 338.1727 is hereby amended to read as follows:
338.1727 1. After selecting the finalists pursuant to NRS 338.1725, the public body shall provide to each finalist a request for final proposals for the public work. The request for final proposals must:
(a) Set forth the factors that the public body will use to select a design-build team to design and construct the public work, including the relative weight to be assigned to each factor; and
(b) Set forth the date by which final proposals must be submitted to the public body.
2. If one or more of the finalists selected pursuant to NRS 338.1725 is disqualified or withdraws, the public body may select a design-build team from the remaining finalist or finalists . [if at least two finalists remain.]
3. Except as otherwise provided in this subsection, in assigning the relative weight to each factor for selecting a design-build team pursuant to subsection 1, the public body shall assign, without limitation, a relative weight of 5 percent to the possession of a certificate of eligibility to receive a preference in bidding on public works and a relative weight of at least 30 percent to the proposed cost of design and construction of the public work. If any federal statute or regulation precludes the granting of federal assistance or reduces the amount of that assistance for a particular public work because of the provisions of this subsection relating to preference in bidding on public works, those provisions of this subsection do not apply insofar as their application would preclude or reduce federal assistance for that public work.
4. A final proposal submitted by a design-build team pursuant to this section must be prepared thoroughly and be responsive to the criteria that the public body will use to select a design-build team to design and construct the public work described in subsection 1. A design-build team that submits a final proposal which is not responsive shall not be awarded the contract and shall not be eligible for the partial reimbursement of costs provided for in subsection 7.
κ2005 Statutes of Nevada, Page 1813 (CHAPTER 424, SB 467)κ
and shall not be eligible for the partial reimbursement of costs provided for in subsection 7.
5. A final proposal is exempt from the requirements of NRS 338.141.
[5.] 6. After receiving and evaluating the final proposals for the public work, the public body, at a regularly scheduled meeting, shall:
(a) Select the [most cost-effective and responsive] final proposal, using the criteria set forth pursuant to subsections 1 and 3 [;] , and award the design-build contract to the design-build team whose proposal is selected; or
(b) Reject all the final proposals.
[6.] 7. If a public body selects a final proposal and awards a design-build contract pursuant to paragraph (a) of subsection [5,] 6, the public body shall [, at a regularly scheduled meeting:
(a) Review and ratify the selection.
(b) Award the design-build contract to the design-build team whose proposal is selected.
(c)] :
(a) Partially reimburse the unsuccessful finalists if partial reimbursement was provided for in the request for preliminary proposals pursuant to paragraph [(f)] (j) of subsection [3] 2 of NRS 338.1723. The amount of reimbursement must not exceed, for each unsuccessful finalist, 3 percent of the total amount to be paid to the design-build team as set forth in the design-build contract.
[(d)] (b) Make available to the public [a summary setting forth the factors used by the public body to select the successful design-build team] the results of the evaluation of final proposals that was conducted and the ranking of the design-build teams who submitted final proposals. The public body shall not release to a third party, or otherwise make public, financial or proprietary information submitted by a design-build team.
[7.] 8. A contract awarded pursuant to this section:
(a) Must comply with the provisions of NRS 338.020 to 338.090, inclusive.
(b) Must specify:
(1) An amount that is the maximum amount that the public body will pay for the performance of all the work required by the contract, excluding any amount related to costs that may be incurred as a result of unexpected conditions or occurrences as authorized by the contract;
(2) An amount that is the maximum amount that the public body will pay for the performance of the professional services required by the contract; and
(3) A date by which performance of the work required by the contract must be completed.
(c) May set forth the terms by which the design-build team agrees to name the public body, at the cost of the public body, as an additional insured in an insurance policy held by the design-build team.
(d) Except as otherwise provided in paragraph (e), must not require the design professional to defend, indemnify or hold harmless the public body or the employees, officers or agents of that public body from any liability, damage, loss, claim, action or proceeding caused by the negligence, errors, omissions, recklessness or intentional misconduct of the employees, officers and agents of the public body.
κ2005 Statutes of Nevada, Page 1814 (CHAPTER 424, SB 467)κ
(e) May require the design-build team to defend, indemnify and hold harmless the public body, and the employees, officers and agents of the public body from any liabilities, damages, losses, claims, actions or proceedings, including, without limitation, reasonable attorneys fees, that are caused by the negligence, errors, omissions, recklessness or intentional misconduct of the design-build team or the employees or agents of the design-build team in the performance of the contract.
[8. A]
(f) Must require that the design-build team to whom a contract is awarded [pursuant to this section shall:
(a) Assume] assume overall responsibility for ensuring that the design and construction of the public work is completed in a satisfactory manner . [; and
(b) Use the workforce of the prime contractor on the design-build team to construct at least 15 percent of the public work.]
9. Upon award of the design-build contract, the public body shall make available to the public copies of all preliminary and final proposals received.
Sec. 27. NRS 338.400 is hereby amended to read as follows:
338.400 As used in NRS 338.400 to 338.645, inclusive, unless the context otherwise requires, the words and terms defined in NRS [338.405 to 338.450,] 338.415 to 338.435, inclusive, have the meanings ascribed to them in those sections.
Sec. 28. NRS 338.525 is hereby amended to read as follows:
338.525 1. A public body may, but is not required to, withhold from a progress payment or retainage payment an amount sufficient to pay the expenses the public body reasonably expects to incur as a result of the failure of the contractor to comply with the contract or applicable building code, law or regulation.
2. A public body shall, within 20 days after it receives a progress bill or retainage bill from a contractor, give a written notice to the contractor of any amount that will be withheld pursuant to this section. The written notice must set forth:
(a) The amount of the progress payment or retainage payment that will be withheld from the contractor; and
(b) A detailed explanation of the reason the public body will withhold that amount, including, without limitation, a specific reference to the provision or section of the contract, or any documents related thereto, or the applicable building code, law or regulation with which the contractor has failed to comply.
Κ The written notice must be signed by an authorized agent of the public body.
3. If the public body receives a written notice of the correction of the condition that is the reason for the withholding, signed by an authorized agent of the contractor, the public body shall , after confirming that the condition has been corrected, pay the amount withheld by the public body within 30 days after the public body receives the next progress bill or retainage bill.
Sec. 29. NRS 339.025 is hereby amended to read as follows:
339.025 1. Before any contract, except one subject to the provisions of chapter 408 of NRS, exceeding [$35,000] $100,000 for any project for the new construction, repair or reconstruction of any public building or other public work or public improvement of any contracting body is awarded to any contractor, he shall furnish to the contracting body the following bonds which become binding upon the award of the contract to the contractor:
κ2005 Statutes of Nevada, Page 1815 (CHAPTER 424, SB 467)κ
public work or public improvement of any contracting body is awarded to any contractor, he shall furnish to the contracting body the following bonds which become binding upon the award of the contract to the contractor:
(a) A performance bond in an amount to be fixed by the contracting body, but not less than 50 percent of the contract amount, conditioned upon the faithful performance of the contract in accordance with the plans, specifications and conditions of the contract. The bond must be solely for the protection of the contracting body which awarded the contract.
(b) A payment bond in an amount to be fixed by the contracting body, but not less than 50 percent of the contract amount. The bond must be solely for the protection of claimants supplying labor or materials to the contractor to whom the contract was awarded, or to any of his subcontractors, in the prosecution of the work provided for in such contract.
2. If a general contractor has been awarded a contract, except one subject to the provisions of chapter 408 of NRS, by the State Public Works Board for any project for new construction, repair or reconstruction of any public building or other public work or public improvement, each of his subcontractors who will perform work on the contract that exceeds $50,000 or 1 percent of the proposed project, whichever amount is greater, shall furnish a bond to the Board in an amount to be fixed by the Board.
3. Each of the bonds required pursuant to this section must be executed by one or more surety companies authorized to do business in the State of Nevada. If the contracting body is the State of Nevada or any officer, employee, board, bureau, commission, department, agency or institution thereof, the bonds must be payable to the State of Nevada. If the contracting body is other than one of those enumerated in this subsection, the bonds must be payable to the other contracting body.
4. Each of the bonds must be filed in the office of the contracting body which awarded the contract for which the bonds were given.
5. [Nothing in this section prohibits] This section does not prohibit a contracting body from requiring bonds.
Sec. 30. NRS 338.1713, 338.405, 338.410, 338.440, 338.445 and 338.450 are hereby repealed.
Sec. 31. 1. This section and sections 1 to 7, inclusive, 9 to 15, inclusive, and 17 to 30, inclusive, of this act become effective on October 1, 2005.
2. Sections 7 and 15 of this act expire by limitation on April 30, 2013.
3. Sections 8 and 16 of this act become effective on May 1, 2013.
________
Assembly Bill No. 236Assemblyman Hardy
CHAPTER 425
AN ACT relating to energy; revising provisions governing net metering systems; exempting certain types of renewable energy systems from the requirements of the Utility Environmental Protection Act; prohibiting certain restrictions on the location and use of wind energy systems; requiring local building codes and zoning ordinances to allow the use of certain types of renewable energy systems under certain circumstances; and providing other matters properly relating thereto.
κ2005 Statutes of Nevada, Page 1816 (CHAPTER 425, AB 236)κ
[Approved: June 14, 2005]
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 704.771 is hereby amended to read as follows:
704.771 Net metering system means a facility or energy system for the generation of electricity that:
1. Uses renewable energy as its primary source of energy to generate electricity;
2. Has a generating capacity of not more than [30] 150 kilowatts;
3. Is located on the customer-generators premises;
4. Operates in parallel with the utilitys transmission and distribution facilities; and
5. Is intended primarily to offset part or all of the customer-generators requirements for electricity.
Sec. 2. NRS 704.773 is hereby amended to read as follows:
704.773 1. A utility shall offer net metering, as set forth in NRS 704.775, to the customer-generators operating within its service area [.
2. A] until the cumulative capacity of all such net metering systems is equal to 1 percent of the utilitys peak capacity.
2. If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of not more than 30 kilowatts, the utility:
(a) Shall offer to make available to [each of its customer-generators who has accepted its offer for net metering] the customer-generator an energy meter that is capable of registering the flow of electricity in two directions.
(b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.
(c) Shall not charge a customer-generator any fee or charge that would increase the customer-generators minimum monthly charge to an amount greater than that of other customers of the utility in the same rate class as the customer-generator.
3. If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of more than 30 kilowatts, the utility may:
(a) Require the customer-generator to install at its own cost an energy meter that is capable of measuring generation output and customer load.
(b) Charge the customer-generator any applicable fee or charge charged to other customers of the utility in the same rate class as the customer-generator, including, without limitation, customer, demand and facility charges.
Sec. 3. NRS 704.775 is hereby amended to read as follows:
704.775 1. The billing period for net metering [may be either] must be a monthly period . [or, with the written consent of the customer-generator, an annual period.
2. The]
2. If a customer-generators net metering system has a capacity of not more than 30 kilowatts, the net energy measurement must be calculated in the following manner:
κ2005 Statutes of Nevada, Page 1817 (CHAPTER 425, AB 236)κ
(a) The utility shall measure , in kilowatt hours, the net electricity produced or consumed during the billing period, in accordance with normal metering practices.
(b) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility.
(c) If the electricity generated by the customer-generator which is fed back to the utility exceeds the electricity supplied by the utility during the billing period:
(1) Neither the utility nor the customer-generator is entitled to compensation for electricity provided to the other during the billing period . [; and]
(2) The excess electricity which is fed back to the utility during the billing period is carried forward to the next billing period as an addition to the kilowatt hours generated by the customer-generator in that billing period. If the customer-generator is billed for electricity pursuant to a time-of-use rate schedule, the excess electricity carried forward must be added to the same time-of-use period as the time-of-use period in which it was generated unless the subsequent billing period lacks a corresponding time-of-use period. In that case, the excess electricity carried forward must be apportioned evenly among the available time-of-use periods.
(3) Excess electricity may be carried forward to subsequent billing periods indefinitely, but a customer-generator is not entitled to receive compensation for any excess electricity that remains if:
(I) The net metering system ceases to operate or is disconnected from the utilitys transmission and distribution facilities;
(II) The customer-generator ceases to be a customer of the utility at the premises served by the net metering system; or
(III) The customer-generator transfers the net metering system to another person.
(4) The excess electricity which is fed back to the utility shall be deemed to be electricity that the utility generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to NRS 704.7801 to 704.7828, inclusive.
3. If a customer-generators net metering system has a capacity of more than 30 kilowatts, the net energy measurement must be calculated in the following manner:
(a) The utility shall:
(1) Measure, in kilowatt hours, the amount of electricity supplied by the utility to the customer-generator during the billing period and calculate its value using the tariff that would be applicable if the customer-generator did not use a net metering system; and
(2) Measure, in kilowatt hours, the amount of electricity generated by the customer-generator which is fed back to the utility during the billing period and calculate its value at a rate that is consistent with the rate used to calculate the value of the electricity supplied by the utility.
(b) If the value of electricity supplied by the utility exceeds the value of the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net value of the electricity supplied by the utility.
κ2005 Statutes of Nevada, Page 1818 (CHAPTER 425, AB 236)κ
(c) If the value of the electricity generated by the customer-generator which is fed back to the utility exceeds the value of the electricity supplied by the utility during the billing period:
(1) Neither the utility nor the customer-generator is entitled to compensation for the value of the electricity provided to the other during the billing period.
(2) The value of the excess electricity:
(I) Must not be shown as a credit on the customer-generators bill for that billing period but must be reflected as a credit that is carried forward to offset the value of the electricity supplied by the utility during a subsequent billing period. At the discretion of the utility, the credit may be in a dollar amount or in kilowatt hours. If the credit is reflected as excess electricity and the customer-generator is billed for electricity pursuant to a time-of-use rate schedule, the excess electricity carried forward must be added to the same time-of-use period as the time-of-use period in which it was generated unless the subsequent billing period lacks a corresponding time-of-use period. In that case, the excess electricity carried forward must be apportioned evenly among the available time-of-use periods. Excess electricity may be carried forward to subsequent billing periods indefinitely, but a customer-generator is not entitled to receive compensation for any excess electricity that remains if the net metering system ceases to operate or is disconnected from the utilitys transmission and distribution facilities, the customer-generator ceases to be a customer of the utility at the premises served by the net metering system or the customer-generator transfers the net metering system to another person.
(II) Does not reduce any other fee or charge imposed by the utility.
(3) The excess electricity which is fed back to the utility shall be deemed to be electricity that the utility generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to NRS 704.7801 to 704.7828, inclusive.
4. A bill for electrical service is due at the time established pursuant to the terms of the contract between the utility and the customer-generator.
Sec. 4. NRS 704.860 is hereby amended to read as follows:
704.860 Utility facility means:
1. Electric generating plants and their associated facilities, [other than] except:
(a) Electric generating plants and their associated facilities that are or will be located entirely within the boundaries of a county whose population is 100,000 or more [.] ; or
(b) Electric generating plants and their associated facilities which use or will use renewable energy, as defined in NRS 704.7811, as their primary source of energy to generate electricity and which have or will have a generating capacity of not more than 150 kilowatts, including, without limitation, a net metering system, as defined in NRS 704.771.
Κ As used in this subsection, associated facilities includes, without limitation, any facilities for the storage, transmission or treatment of water, including, without limitation, facilities to supply water or for the treatment or disposal of wastewater, which support or service an electric generating plant.
2. Electric transmission lines and transmission substations that:
(a) Are designed to operate at 200 kilovolts or more;
(b) Are not required by local ordinance to be placed underground; and
κ2005 Statutes of Nevada, Page 1819 (CHAPTER 425, AB 236)κ
(c) Are constructed outside any incorporated city.
3. Gas transmission lines, storage plants, compressor stations and their associated facilities when constructed outside:
(a) Any incorporated city; and
(b) Any county whose population is 100,000 or more.
4. Water storage, transmission and treatment facilities, other than facilities for the storage, transmission or treatment of water from mining operations.
5. Sewer transmission and treatment facilities.
Sec. 5. NRS 111.239 is hereby amended to read as follows:
111.239 1. Any covenant, restriction or condition contained in a deed, contract or other legal instrument which affects the transfer, sale or any other interest in real property that prohibits or unreasonably restricts the owner of the property from using a system for obtaining solar or wind energy on his property is void and unenforceable.
2. For the purposes of this section, unreasonably restricts the use of a system for obtaining solar or wind energy means placing a restriction or requirement on the use of such a system which significantly decreases the efficiency or performance of the system and does not allow for the use of an alternative system at a comparable cost and with comparable efficiency and performance.
Sec. 6. NRS 116.2111 is hereby amended to read as follows:
116.2111 1. Except as otherwise provided in this section and subject to the provisions of the declaration and other provisions of law, a units owner:
(a) May make any improvements or alterations to his unit that do not impair the structural integrity or mechanical systems or lessen the support of any portion of the common-interest community;
(b) May not change the appearance of the common elements, or the exterior appearance of a unit or any other portion of the common-interest community, without permission of the association; and
(c) After acquiring an adjoining unit or an adjoining part of an adjoining unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a common element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the common-interest community. Removal of partitions or creation of apertures under this paragraph is not an alteration of boundaries.
2. An association may not:
(a) Unreasonably restrict, prohibit or otherwise impede the lawful rights of a units owner to have reasonable access to his unit.
(b) Unreasonably restrict, prohibit or withhold approval for a units owner to add to a unit:
(1) Improvements such as ramps, railings or elevators that are necessary to improve access to the unit for any occupant of the unit who has a disability;
(2) Additional locks to improve the security of the unit; [or]
(3) Shutters to improve the security of the unit or to [aid in reducing] reduce the costs of energy for the unit [.] ; or
(4) A system that uses wind energy to reduce the costs of energy for the unit if the boundaries of the unit encompass 2 acres or more within the common-interest community.
κ2005 Statutes of Nevada, Page 1820 (CHAPTER 425, AB 236)κ
(c) With regard to approving or disapproving any improvement or alteration made to a unit, act in violation of any state or federal law.
3. Any improvement or alteration made pursuant to subsection 2 that is visible from any other portion of the common-interest community must be installed, constructed or added in accordance with the procedures set forth in the governing documents of the association and must be selected or designed to the maximum extent practicable to be compatible with the style of the common-interest community.
4. A units owner may not add to the unit a system that uses wind energy as described in subparagraph 4 of paragraph (b) of subsection 2 unless he first obtains the written consent of each owner of property within 300 feet of any boundary of the unit.
Sec. 7. NRS 278.0208 is hereby amended to read as follows:
278.0208 1. A governing body shall not adopt an ordinance, regulation or plan or take any other action that prohibits or unreasonably restricts the owner of real property from using a system for obtaining solar or wind energy on his property.
2. Any covenant, restriction or condition contained in a deed, contract or other legal instrument which affects the transfer, sale or any other interest in real property that prohibits or unreasonably restricts the owner of the property from using a system for obtaining solar or wind energy on his property is void and unenforceable.
3. For the purposes of this section, unreasonably restricting the use of a system for obtaining solar or wind energy means placing a restriction or requirement on the use of such a system which significantly decreases the efficiency or performance of the system and does not allow for the use of an alternative system at a comparable cost and with comparable efficiency and performance.
Sec. 8. NRS 278.160 is hereby amended to read as follows:
278.160 1. Except as otherwise provided in subsection 4 of NRS 278.150 and subsection 3 of NRS 278.170, the master plan, with the accompanying charts, drawings, diagrams, schedules and reports, may include such of the following subject matter or portions thereof as are appropriate to the city, county or region, and as may be made the basis for the physical development thereof:
(a) Community design. Standards and principles governing the subdivision of land and suggestive patterns for community design and development.
(b) Conservation plan. For the conservation, development and utilization of natural resources, including, without limitation, water and its hydraulic force, underground water, water supply, solar or wind energy, forests, soils, rivers and other waters, harbors, fisheries, wildlife, minerals and other natural resources. The plan must also cover the reclamation of land and waters, flood control, prevention and control of the pollution of streams and other waters, regulation of the use of land in stream channels and other areas required for the accomplishment of the conservation plan, prevention, control and correction of the erosion of soils through proper clearing, grading and landscaping, beaches and shores, and protection of watersheds. The plan must also indicate the maximum tolerable level of air pollution.
(c) Economic plan. Showing recommended schedules for the allocation and expenditure of public money in order to provide for the economical and timely execution of the various components of the plan.
κ2005 Statutes of Nevada, Page 1821 (CHAPTER 425, AB 236)κ
(d) Historical properties preservation plan. An inventory of significant historical, archaeological and architectural properties as defined by a city, county or region, and a statement of methods to encourage the preservation of those properties.
(e) Housing plan. The housing plan must include, without limitation:
(1) An inventory of housing conditions, needs and plans and procedures for improving housing standards and for providing adequate housing.
(2) An inventory of affordable housing in the community.
(3) An analysis of the demographic characteristics of the community.
(4) A determination of the present and prospective need for affordable housing in the community.
(5) An analysis of any impediments to the development of affordable housing and the development of policies to mitigate those impediments.
(6) An analysis of the characteristics of the land that is the most appropriate for the construction of affordable housing.
(7) An analysis of the needs and appropriate methods for the construction of affordable housing or the conversion or rehabilitation of existing housing to affordable housing.
(8) A plan for maintaining and developing affordable housing to meet the housing needs of the community.
(f) Land use plan. An inventory and classification of types of natural land and of existing land cover and uses, and comprehensive plans for the most desirable utilization of land. The land use plan may include a provision concerning the acquisition and use of land that is under federal management within the city, county or region, including, without limitation, a plan or statement of policy prepared pursuant to NRS 321.7355.
(g) Population plan. An estimate of the total population which the natural resources of the city, county or region will support on a continuing basis without unreasonable impairment.
(h) Public buildings. Showing locations and arrangement of civic centers and all other public buildings, including the architecture thereof and the landscape treatment of the grounds thereof.
(i) Public services and facilities. Showing general plans for sewage, drainage and utilities, and rights-of-way, easements and facilities therefor, including, without limitation, any utility projects required to be reported pursuant to NRS 278.145.
(j) Recreation plan. Showing a comprehensive system of recreation areas, including, without limitation, natural reservations, parks, parkways, trails, reserved riverbank strips, beaches, playgrounds and other recreation areas, including, when practicable, the locations and proposed development thereof.
(k) Rural neighborhoods preservation plan. In any county whose population is 400,000 or more, showing general plans to preserve the character and density of rural neighborhoods.
(l) Safety plan. In any county whose population is 400,000 or more, identifying potential types of natural and man-made hazards, including, without limitation, hazards from floods, landslides or fires, or resulting from the manufacture, storage, transfer or use of bulk quantities of hazardous materials. The plan may set forth policies for avoiding or minimizing the risks from those hazards.
κ2005 Statutes of Nevada, Page 1822 (CHAPTER 425, AB 236)κ
(m) School facilities plan. Showing the general locations of current and future school facilities based upon information furnished by the appropriate local school district.
(n) Seismic safety plan. Consisting of an identification and appraisal of seismic hazards such as susceptibility to surface ruptures from faulting, to ground shaking or to ground failures.
(o) Solid waste disposal plan. Showing general plans for the disposal of solid waste.
(p) Streets and highways plan. Showing the general locations and widths of a comprehensive system of major traffic thoroughfares and other traffic ways and of streets and the recommended treatment thereof, building line setbacks, and a system of naming or numbering streets and numbering houses, with recommendations concerning proposed changes.
(q) Transit plan. Showing a proposed multimodal system of transit lines, including mass transit, streetcar, motorcoach and trolley coach lines, paths for bicycles and pedestrians, and related facilities.
(r) Transportation plan. Showing a comprehensive transportation system, including, without limitation, locations of rights-of-way, terminals, viaducts and grade separations. The plan may also include port, harbor, aviation and related facilities.
2. The commission may prepare and adopt, as part of the master plan, other and additional plans and reports dealing with such other subjects as may in its judgment relate to the physical development of the city, county or region, and nothing contained in NRS 278.010 to 278.630, inclusive, prohibits the preparation and adoption of any such subject as a part of the master plan.
Sec. 9. NRS 278.250 is hereby amended to read as follows:
278.250 1. For the purposes of NRS 278.010 to 278.630, inclusive, the governing body may divide the city, county or region into zoning districts of such number, shape and area as are best suited to carry out the purposes of NRS 278.010 to 278.630, inclusive. Within the zoning district , it may regulate and restrict the erection, construction, reconstruction, alteration, repair or use of buildings, structures or land.
2. The zoning regulations must be adopted in accordance with the master plan for land use and be designed:
(a) To preserve the quality of air and water resources.
(b) To promote the conservation of open space and the protection of other natural and scenic resources from unreasonable impairment.
(c) To provide for recreational needs.
(d) To protect life and property in areas subject to floods, landslides and other natural disasters.
(e) To conform to the adopted population plan, if required by NRS 278.170.
(f) To develop a timely, orderly and efficient arrangement of transportation and public facilities and services, including facilities and services for bicycles.
(g) To ensure that the development on land is commensurate with the character and the physical limitations of the land.
(h) To take into account the immediate and long-range financial impact of the application of particular land to particular kinds of development, and the relative suitability of the land for development.
(i) To promote health and the general welfare.
κ2005 Statutes of Nevada, Page 1823 (CHAPTER 425, AB 236)κ
(j) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing.
(k) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods.
(l) To promote systems which use solar or wind energy.
3. The zoning regulations must be adopted with reasonable consideration, among other things, to the character of the area and its peculiar suitability for particular uses, and with a view to conserving the value of buildings and encouraging the most appropriate use of land throughout the city, county or region.
4. In exercising the powers granted in this section, the governing body may use any controls relating to land use or principles of zoning that the governing body determines to be appropriate, including, without limitation, density bonuses, inclusionary zoning and minimum density zoning.
5. As used in this section:
(a) Density bonus means an incentive granted by a governing body to a developer of real property that authorizes the developer to build at a greater density than would otherwise be allowed under the master plan, in exchange for an agreement by the developer to perform certain functions that the governing body determines to be socially desirable, including, without limitation, developing an area to include a certain proportion of affordable housing.
(b) Inclusionary zoning means a type of zoning pursuant to which a governing body requires or provides incentives to a developer who builds residential dwellings to build a certain percentage of those dwellings as affordable housing.
(c) Minimum density zoning means a type of zoning pursuant to which development must be carried out at or above a certain density to maintain conformance with the master plan.
Sec. 10. NRS 278.580 is hereby amended to read as follows:
278.580 1. Subject to the limitation set forth in NRS 244.368, the governing body of any city or county may adopt a building code, specifying the design, soundness and materials of structures, and may adopt rules, ordinances and regulations for the enforcement of the building code.
2. The governing body may also fix a reasonable schedule of fees for the issuance of building permits. A schedule of fees so fixed does not apply to the State of Nevada, the University and Community College System of Nevada or any school district, except that such entities may contract with the governing body to pay such fees for the issuance of building permits, the review of plans and the inspection of construction. Except as it may agree to in such a contract, a governing body is not required to provide for the review of plans or the inspection of construction with respect to a structure of the State of Nevada, the University and Community College System of Nevada or any school district.
3. Notwithstanding any other provision of law, the State and its political subdivisions shall comply with all zoning regulations adopted pursuant to this chapter, except for the expansion of any activity existing on April 23, 1971.
4. A governing body shall amend its building codes and, if necessary, its zoning ordinances and regulations to permit the use of [straw] :
κ2005 Statutes of Nevada, Page 1824 (CHAPTER 425, AB 236)κ
(a) Straw or other materials and technologies which conserve scarce natural resources or resources that are renewable in the construction of a structure ; and [the use of]
(b) Systems which use solar or wind energy to reduce the costs of energy for [the heating of] a structure [,] if such systems and structures are otherwise in compliance with applicable building codes and zoning ordinances, including those relating to the design, location and soundness of such systems and structures,
Κ to the extent the local climate allows [.] for the use of such materials, technologies, resources and systems.
5. The amendments required by subsection 4 may address, without limitation:
(a) The inclusion of characteristics of land and structures that are most appropriate for the construction and use of systems using solar and wind energy.
(b) The recognition of any impediments to the development of systems using solar and wind energy.
(c) The preparation of design standards for the construction, conversion or rehabilitation of new and existing systems using solar and wind energy.
6. A governing body shall amend its building codes to include:
(a) The seismic provisions of the International Building Code published by the International Code Council; and
(b) Standards for the investigation of hazards relating to seismic activity, including, without limitation, potential surface ruptures and liquefaction.
Sec. 11. The Legislature hereby declares that wind energy is a clean, renewable energy source, the use of which must be promoted. Regional planning is needed for communities to choose good turbine locations where wind is available. The provisions of this act allow the governing bodies of cities and counties to promote the use of this renewable resource while promoting the general welfare by regulating the location, height and noise level of wind turbines, as well as the parcel size on which turbines may be placed. The provisions of this act require cities and counties to balance the effects that wind turbines have on the environment through the existing master plan and zoning process.
________
Senate Bill No. 411Committee on Government Affairs
CHAPTER 426
AN ACT relating to local improvements; revising various provisions governing local improvements and the payment of assessments related to a local improvement; and providing other matters properly relating thereto.
[Approved: June 14, 2005]
κ2005 Statutes of Nevada, Page 1825 (CHAPTER 426, SB 411)κ
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 271 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. If the assessable property within an improvement district includes tracts of land owned by the municipality, the levy of assessments against the tracts of land owned by the municipality must not exceed 15 percent of the total amount of assessments against all tracts of land within the improvement district.
Sec. 3. Except as otherwise provided in NRS 271.595, any payment related to an assessment on property that a person, this State or any political subdivision of this State sends to a municipality by mail that is received by the municipality without a postmark or with an illegible postmark shall be deemed to have been made on a date which is 2 business days before the date on which the municipality received the payment.
Sec. 4. NRS 271.040 is hereby amended to read as follows:
271.040 Assessable property means the tracts of land specially benefited by any project the cost of which is wholly or partly defrayed by the municipality by the levy of assessments, except:
1. Any tract owned by the Federal Government, in the absence of its consent to the assessment . [, or the municipality.]
2. Any tract owned by the municipality, unless the governing body of the municipality adopts a resolution finding that the tract is specially benefited by the project.
3. Any street or other public right-of-way.
Sec. 5. NRS 271.130 is hereby amended to read as follows:
271.130 Improvement district means the geographical area within the municipality designated and delineated by the governing body, in which [improvement district is located the facilities or project, or an interest therein, the cost of which is to be defrayed wholly or in part by the levy of special assessments, and] is located each tract to be assessed [therefor.] for a project. An improvement district may consist of noncontiguous areas. Improvement districts shall be designated by consecutive numbers or in some other manner to identify separately each such district in the municipality.
Sec. 6. NRS 271.170 is hereby amended to read as follows:
271.170 Posting means posting , [in three public places at or near the site of the project designated] at least 20 days prior to the designated hearing or other time or event [.] :
1. On the website of the municipality, if any; or
2. In three public places located on public property at or near the site of the project.
Sec. 7. NRS 271.280 is hereby amended to read as follows:
271.280 1. Whenever the governing body [is of the opinion that the interest of the municipality requires] of a municipality determines to form an improvement district to conduct any project, [the governing body, by resolution, shall direct] the engineer [to prepare, or may, after he has prepared, ratify:] shall prepare and file with the clerk:
(a) Preliminary plans showing:
(1) A typical section of the contemplated improvement.
(2) The type or types of material, approximate thickness and wideness.
κ2005 Statutes of Nevada, Page 1826 (CHAPTER 426, SB 411)κ
(3) A preliminary estimate of the cost of the project, including incidental costs.
(b) An assessment plat showing:
(1) The area to be assessed.
(2) Except as otherwise provided in NRS 271.378, the amount of maximum benefits estimated to be assessed against each tract in the assessment area.
(c) If a resolution of the governing body does not otherwise provide, the information required pursuant to the provisions of subsections 2 to 7, inclusive.
Κ The governing body is not required to employ the services of an appraiser to estimate or to assist the engineer in estimating the benefits to be derived from the project.
2. The [resolution or ratification] preliminary plans may provide for one or more types of construction, and the engineer shall separately estimate the cost of each type of construction. The estimate may be made in a lump sum or by unit prices, as the engineer determines is most desirable for the improvement complete in place.
3. [The] A resolution or document [ratified] prepared by the engineer pursuant to subsection 1 must describe the project in general terms.
4. The resolution or document [ratified] must state:
(a) What part or portion of the expense of the project is of special benefit and therefore is to be paid by assessments.
(b) What part, if any, has been or is proposed to be defrayed with money derived from other than the levy of assessments.
(c) The basis by which the cost will be apportioned and assessments levied.
5. If the assessment is not to be made according to front feet, the resolution or document [ratified] must:
(a) By apt description designate the improvement district, including the tracts to be assessed.
(b) Describe definitely the location of the project.
(c) State that the assessment is to be made upon all the tracts benefited by the project proportionately to the benefits received.
6. If the assessment is to be upon the abutting property upon a frontage basis, it is sufficient for the resolution or document [ratified] so to state and to define the location of the project to be made.
7. It is not necessary in any case to describe minutely in the resolution or document [ratified] each particular tract to be assessed, but simply to designate the property, improvement district or the location, so that the various parts to be assessed can be ascertained and determined to be within or without the proposed improvement district.
8. If the preliminary plans include a commercial area vitalization project, then in addition to the other requirements in this section, before the plans are ratified by the governing body, the plans must include a plan for the management of the proposed improvement district which must include, without limitation:
(a) The improvements proposed for each year of the first 5 fiscal years of the proposed improvement district;
(b) An estimate of the total amount to be expended on improvements in the first year of operation;
κ2005 Statutes of Nevada, Page 1827 (CHAPTER 426, SB 411)κ
(c) A list of any other special assessments that are currently being levied within the proposed improvement district;
(d) The name of any proposed association; and
(e) Any other matter that the governing body requires to be set forth in the plan.
9. [The engineer shall forthwith prepare and file with the clerk:
(a) The preliminary plans; and
(b) The assessment plat.
10.] Upon the filing of the plans [and plat,] , plat and, if the engineer prepares a document pursuant to paragraph (c) of subsection 1, the document prepared by the engineer pursuant to paragraph (c) of subsection 1, they must be examined by the governing body. If the plans , [and] plat and document, if any, are found to be satisfactory, the governing body shall make a provisional order by resolution to the effect that the project will be acquired or improved, or both acquired and improved.
Sec. 8. NRS 271.405 is hereby amended to read as follows:
271.405 1. All assessments made in pursuance of the assessment ordinance are due and payable without demand within 30 days after the effective date of the assessment ordinance.
2. All such assessments may at the election of the owner be paid in installments with interest as hereinafter provided, whenever the governing body so authorizes the payment of assessments.
3. Failure to pay the whole assessment within 30 days is conclusively considered an election on the part of all persons interested, whether under disability or otherwise, to pay in installments the amount of the assessment then unpaid.
4. All persons so electing to pay in installments are conclusively considered as consenting to such projects, and such an election is conclusively considered as a waiver of all rights to question the power or jurisdiction of the municipality to acquire or improve the projects, the quality of the work, the regularity or sufficiency of the proceedings or the validity or correctness of the assessment.
5. The owner of any tract assessed may at any time pay the whole unpaid principal with the interest accrued to the next interest payment date, together with penalties, if any. The governing body may require in the assessment ordinance the payment of a premium for any such prepayment, which must not exceed [by more than 3 percent the Index of Twenty Bonds which is in effect at the time the election is made, as a percentage] 5 percent of the installment or installments of principal so prepaid.
6. Subject to the foregoing provisions, all installments, both of principal and interest, are payable at such times as may be determined in and by the assessment ordinance.
7. The clerk shall give notice by publication or by mail of the levy of any assessment, of the fact that it is payable, and of the last day for its payment as herein provided.
Sec. 9. NRS 271.415 is hereby amended to read as follows:
271.415 1. In case of an election to pay in installments, the assessment may be made payable in any manner sufficient to pay the principal and interest in not less than 2 nor more than [21] 30 years after the effective date of the assessment ordinance.
2. Interest in all cases on the unpaid balance accruing from the effective date of the assessment ordinance until the respective due dates of the installments is payable at the times specified by the governing body in the assessment ordinance.
κ2005 Statutes of Nevada, Page 1828 (CHAPTER 426, SB 411)κ
installments is payable at the times specified by the governing body in the assessment ordinance. Except as otherwise provided in NRS 271.487 and 271.730, the governing body shall:
(a) Before assessment bonds are issued or if bonds are not issued, fix by resolution or ordinance, or authorize the chief administrative officer or chief financial officer of the municipality to fix, the rate or rates of the interest on the unpaid balance of the assessment [by resolution] at any time after the adoption of the assessment ordinance; or
(b) If assessment bonds are sold, fix or adjust , or authorize the chief administrative officer or chief financial officer of the municipality to fix or adjust, the rate or rates of interest on the unpaid balance of the assessment due after the date the bonds are sold at no more than 1 percent above the highest rate of interest payable on the assessment bonds at any maturity.
3. This section does not limit the discretion of the governing body in determining whether assessments are payable in installments and the time the first installment of principal or interest, or both, and any subsequent installments thereof, are due.
4. The governing body in the assessment ordinance shall state the number of installments in which assessments may be paid, the period of payment, any privileges of making prepayments and any premium to be paid to the municipality for exercising any such privilege, the rate of interest upon the unpaid balance of the assessment and accrued interest after any delinquency at a rate not exceeding 2 percent per month, and any penalties and collection costs payable after delinquency.
5. The county or municipal officer who has been directed by the governing body to collect assessments shall give notice by publication or by mail of any installment which is payable and of the last day for its payment as provided in this section and in the assessment ordinance.
6. The governing body in the assessment ordinance may provide for the application of a credit against the payment of an assessment to the extent that the principal of the bonds has been paid with the unexpended balance of the proceeds of the bonds pursuant to subsection [6] 7 of NRS 271.485. The governing body shall apply the credit pro rata, based on the original assessment on the assessed property, against the payment of the assessment due from the person who owns the assessed property on the date of the application of the credit.
7. At any time after fixing the rate of interest on the assessment, the governing body may reduce the rate of interest on the unpaid balance of an assessment that is due if:
(a) The reduction is not prohibited by any covenant made for the benefit of the owners of the bonds or interim warrants issued for the district; and
(b) The reduced rate of interest is not lower than the average rate of interest on the outstanding bonds or interim warrants.
Sec. 10. NRS 271.420 is hereby amended to read as follows:
271.420 1. The payment of the amount so assessed, including each installment thereof, the interest thereon, and any penalties and collection costs, is secured by an assessment lien upon the tract assessed from the effective date of the assessment ordinance.
2. The final assessment roll, endorsed by the clerk as the roll designated in the assessment ordinance, must be recorded in the office of the county recorder together with a statement that the current payment status of any of the assessments may be obtained from the county or municipal officer who has been directed by the governing body to collect the assessment.
κ2005 Statutes of Nevada, Page 1829 (CHAPTER 426, SB 411)κ
has been directed by the governing body to collect the assessment. Neither the failure to record the assessment roll as provided in this subsection nor any defect in the roll as recorded affects the validity of the assessments, the lien for the payment thereof or the priority of that lien.
3. [The] Notwithstanding the provisions of any other specific statute, the lien upon each tract assessed is:
(a) Coequal with the latest lien thereon to secure the payment of general taxes.
(b) Not subject to extinguishment by the sale of any property on account of the nonpayment of general taxes.
(c) Prior and superior to all liens, claims, encumbrances and titles other than the liens of assessments and general taxes [.] attached to the tract pursuant to the provisions of NRS 361.450.
4. No statute of limitations begins to run against any assessment nor the assessment lien to secure its payment until after the last installment of principal thereof becomes due.
Sec. 11. NRS 271.425 is hereby amended to read as follows:
271.425 1. If a tract is divided after a special assessment thereon has been levied and divided into installments and before the collection of all the installments, the governing body may require the treasurer to apportion the uncollected amounts upon the several parts of land so divided.
2. If two or more tracts are combined or combined and redivided into two or more different tracts after a special assessment thereon has been levied and divided into installments and before the collection of all the installments, the governing body may require the treasurer to combine or combine and reapportion the uncollected amounts upon the part or parts of land that exist after the combination or combination and redivision.
3. Except to the extent limited in an ordinance that authorizes or otherwise pertains to the issuance of bonds for an improvement district, the governing body may reapportion assessments which have been levied pursuant to this chapter or apportioned pursuant to this section with the unanimous written consent of all the owners of property whose assessments will be increased by the reapportionment. The governing body is not required to obtain the consent of an owner of property whose assessment will not be affected or will be decreased by the reapportionment.
4. Assessments may be combined or reapportioned, or both, pursuant to subsections 2 and 3, only if the governing body finds that the proposed action will not:
(a) Materially or adversely impair the obligation of the municipality with respect to any outstanding bond secured by assessments; or
(b) Increase the principal balance of any assessment to an amount such that the aggregate amount which is assessed against a tract exceeds the minimum benefit to the tract that is estimated to result from the project which is financed by the assessment.
5. The report of an apportionment, combination or reapportionment pursuant to this section, when approved by the governing body, is conclusive on all the parties, and all assessments thereafter made upon the tracts must be according to the apportionment, combination or reapportionment so approved.
6. The report, when approved, must be recorded in the office of the county recorder together with a statement that the current payment status of any of the assessments may be obtained from the county or municipal officer who has been directed by the governing body to collect the assessment.
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who has been directed by the governing body to collect the assessment. Neither the failure to record the report as provided in this subsection nor any defect in the report as recorded affects the validity of the assessments, the lien for the payment thereof or the priority of that lien.
7. The governing body may by ordinance delegate to the chief financial officer or treasurer of the municipality the duties required of the governing body pursuant to this section in connection with the apportionment, combination or reapportionment of assessments. If the governing body adopts such an ordinance, the ordinance must establish parameters for the chief financial officer or treasurer in the performance of such duties.
Sec. 12. NRS 271.428 is hereby amended to read as follows:
271.428 1. When all outstanding bonds, principal, interest and prior redemption premiums, if any, of such a district have been paid and any surplus amounts remain in the fund established pursuant to NRS 271.490 to the credit of the district, the surplus after the payment of valid claims for refund, if any, must be transferred to a surplus and deficiency fund. The governing body may at any time, by resolution or ordinance, authorize the deposit of any money otherwise available to the surplus and deficiency fund.
2. Amounts in the surplus and deficiency fund may be used by the governing body to pay costs incurred in connection with:
(a) The issuance of refunding bonds pursuant to NRS 271.488; or
(b) Collecting delinquent assessments pursuant to NRS 271.445 and 271.540 to 271.630, inclusive.
3. Whenever there is a deficiency in any fund established pursuant to NRS 271.490 for the payment of the bonds and interest thereon for any improvement district created pursuant to former NRS 244A.193 or pursuant to NRS 271.325 or 318.070, the deficiency must first be paid out of the surplus and deficiency fund to the extent of the money available in the fund before any payment is made out of the general fund of the municipality as provided by NRS 271.495.
[3.] 4. Amounts in the surplus and deficiency fund which exceed 10 percent of the principal amount of outstanding bonds of the municipality for all improvement districts created pursuant to former NRS 244A.193 or pursuant to NRS 271.325 or 318.070 at the end of each fiscal year may be used:
(a) To make up deficiencies in any assessment which proves insufficient to pay for the cost of the project or work for which the assessment has been levied.
(b) To advance amounts for the cost of any project or work in any district created pursuant to any of these sections.
(c) To provide for the payment of assessments levied against, or attributable to, property owned by the municipality or the Federal Government.
[4.] 5. At the end of each fiscal year any excess amount described in subsection [3] 4 may be transferred to the general fund of the municipality as the governing body directs by resolution.
Sec. 13. NRS 271.429 is hereby amended to read as follows:
271.429 1. Except as otherwise provided in subsection 2, when all outstanding bonds, principal, interest and prior redemption premiums, if any, of a district have been paid, surplus amounts remaining in the special fund created for that district pursuant to NRS 271.490 must be refunded as follows:
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created for that district pursuant to NRS 271.490 must be refunded as follows:
(a) If amounts have been advanced from the general fund of the municipality as required by NRS 271.495 for the payment of any bonds or interest thereon of such district, those amounts must first be returned to the general fund of the municipality.
(b) If a surplus and deficiency fund has been established pursuant to NRS 271.428, and amounts have been advanced from the surplus and deficiency fund for the payment of bonds or interest thereon of such district, those amounts must be returned to the surplus and deficiency fund.
(c) The treasurer shall thereupon determine the amount remaining in the fund created for the district pursuant to NRS 271.490 and deduct therefrom the amount of administrative costs of returning that surplus [.] and any other administrative costs incurred by the municipality related to the improvement district or the project which have not been otherwise reimbursed. An amount equal to the actual administrative costs must be returned to the fund from which the administrative costs were paid.
(d) If the remaining surplus is [$10,000] $25,000 or less, that amount must be deposited to the surplus and deficiency fund.
(e) If the remaining surplus is more than [$10,000,] $25,000, the treasurer shall:
(1) Deposit [$10,000] $25,000 in the surplus and deficiency fund;
(2) Apportion the amount of the surplus in excess of [$10,000] $25,000 among the tracts of land assessed in the district; and
(3) Report this apportionment to the governing body.
(f) Upon the approval of this apportionment by the governing body, the treasurer shall thereupon give notice by mail and by publication of the availability of the surplus for refund.
(g) The notice must also state that the owner or owners of record on the date specified by the notice of each tract of land which was assessed may request the refund of the surplus apportioned to that tract by filing a claim therefor with the treasurer within 60 days after the date of the mailing of the notice. Thereafter claims for such refunds are perpetually barred.
(h) Surplus amounts, if any, remaining after the payment of all valid claims filed with the treasurer within the 60-day period must be transferred to the surplus and deficiency fund.
(i) Valid claims for refund filed in excess of the surplus available for each separate tract may be apportioned ratably among the claimants by the treasurer.
2. Subsection 1 does not apply to change or alter the distribution of any surplus pursuant to a written agreement that was entered into by a district on or before June 18, 1993.
Sec. 14. NRS 271.445 is hereby amended to read as follows:
271.445 1. When any assessment is so levied by ordinance against property, including, without limitation, property owned by a person or property owned by this State or any political subdivision of this State, and is payable, the governing body shall direct:
(a) The clerk to report to the county assessor a description of such tracts as are contained in the roll, with the amount of the assessment levied upon each and the name of the owner or occupant against whom the assessment was made.
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(b) The municipal treasurer or the county treasurer to collect the several sums so assessed.
2. If the municipal treasurer has been directed to collect unpaid assessments, the amount so levied in the assessment roll against property, including, without limitation, property owned by a person or property owned by this State or any political subdivision of this State, shall be collected and enforced, both before and after delinquency, in the manner provided in NRS 271.540 to 271.625, inclusive, except as otherwise provided in the ordinance levying the assessments.
3. If the county treasurer has been directed to collect unpaid assessments, the amount so levied in the assessment roll against property, including, without limitation, property owned by a person or property owned by this State or any political subdivision of this State, shall be collected and enforced, both before and after delinquency, by the county treasurer and other county officers, as provided by law, with the other taxes in the general assessment roll of the county, and in the same manner, except as otherwise provided in the ordinance levying the assessments.
4. Such amounts shall continue to be a lien upon the tracts assessed until paid, as provided in NRS 271.420.
5. When such amount is collected, it shall be credited to the proper funds.
6. The assessment roll and the certified ordinance levying the assessment shall be prima facie evidence of the regularity of the proceedings in making the assessment and of the right to recover judgment therefor.
7. The ordinance authorizing the levy of assessments must allow the governing body to authorize the treasurer to reduce or waive for good cause the collection of any penalties assessed pursuant to subsection 4 of NRS 271.415 and any interest incurred pursuant to NRS 271.585.
Sec. 15. NRS 271.485 is hereby amended to read as follows:
271.485 1. Any bonds issued pursuant to this chapter may be sold in such a manner as may be approved by the governing body to defray the cost of the project, including all proper incidental expenses. The governing body may issue a single issue of bonds to defray the costs of projects in two or more improvement districts if the principal amount of those bonds does not exceed the total uncollected assessments levied in each improvement district.
2. Bonds must be sold in the manner prescribed in NRS 350.105 to 350.195, inclusive:
(a) For not less than the principal amount thereof and accrued interest thereon; or
(b) At the option of the governing body, below par at a discount not exceeding 9 percent of the principal amount and except as otherwise provided in NRS 271.487 and 271.730, at a price which will not result in an effective interest rate which exceeds by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted if the maximum or any lesser amount of discount permitted by the governing body has been capitalized as a cost of the project.
3. Except as otherwise provided in subsection 4 and NRS 271.487 and 271.730, the rate of interest of the bonds must not at any time exceed the rate of interest, or lower or lowest rate if more than one, borne by the special assessments, but any rate of interest of the bonds may be the same as or less than any rate of interest of the assessment, subject to the limitation provided in subsection 2, as the governing body may determine.
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than any rate of interest of the assessment, subject to the limitation provided in subsection 2, as the governing body may determine.
4. Except as otherwise provided in NRS 271.730, if a governing body creates a district pursuant to the provisions of NRS 271.710, the governing body or chief financial officer of the municipality shall, in consultation with a financial advisor or the underwriter of the bonds, fix the rate of interest of the bonds at a rate of interest such that the principal and interest due on the bonds in each year, net of any interest capitalized from the proceeds of the bonds, will not exceed the amount of principal and interest to be collected on the special assessments during that year.
5. The governing body may employ legal, fiscal, engineering and other expert services in connection with any project authorized by this chapter and the authorization, issuance and sale of bonds.
[5.] 6. Any accrued interest [and any premium] must be applied to the payment of the interest on or the principal of the bonds, or both interest and principal.
[6.] 7. Any unexpended balance of the proceeds of the bond remaining after the completion of the project for which the bonds were issued must be paid immediately into the fund created for the payment of the principal of the bonds and must be used therefor, subject to the provisions as to the times and methods for their payment as stated in the bonds and the proceedings authorizing their issuance.
[7.] 8. The validity of the bonds must not be dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition or improvement of the project for which the bonds are issued.
[8.] 9. A purchaser of the bonds is not responsible for the application of the proceeds of the bonds by the municipality or any of its officers, agents and employees.
[9.] 10. The governing body may enter into a contract to sell special assessment bonds at any time but, if the governing body so contracts before it awards a construction contract or otherwise contracts for acquiring or improving the project, the governing body may terminate the contract to sell the bonds, if:
(a) Before awarding the construction contract or otherwise contracting for the acquisition or improvement of the project, it determines not to acquire or improve the project; and
(b) It has not elected to proceed pursuant to subsection 2 or 3 of NRS 271.330, but has elected to proceed pursuant to subsection 1 of that section.
[10.] 11. If the governing body ceases to have jurisdiction to proceed, because the requisite proportion of owners of the frontage to be assessed, or of the area, zone or other basis of assessment, file written complaints, protests and objections to the project, as provided in NRS 271.306, or for any other reason, any contract to sell special assessment bonds is terminated and becomes inoperative.
Sec. 16. NRS 271.488 is hereby amended to read as follows:
271.488 1. The governing body may issue one or more series of bonds to refund all or any portion of the outstanding bonds of one or more improvement districts. The bonds must be issued pursuant to the provisions of this chapter and the Local Government Securities Law.
2. For the purposes of the Local Government Securities Law, the bonds issued to refund all or any portion of the outstanding bonds of one or more improvement districts shall be deemed special obligations and the assessments shall be deemed net pledged revenues.
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assessments shall be deemed net pledged revenues. [If] Except as otherwise provided in subsection 7, if the bonds are issued, the governing body shall, by resolution, reduce the rate of interest on the uncollected installments of assessments. The rate of interest must not exceed the amount set forth in NRS 271.415, plus any amount necessary to pay the costs of the refunding.
3. Refinancing bonds issued pursuant to the provisions of this section must be secured by the assessments levied against specifically identified tracts of assessable property and may have any other terms or security that are allowed for any other bonds issued pursuant to the provisions of this chapter, except any bond issued to refund all or any portion of the outstanding bonds of one or more improvement districts must mature within [20] 30 years after the date such a bond is issued.
4. A refunding bond issued pursuant to this section may refund all or any portion of the outstanding bonds of one or more improvement districts and may be secured by a combination of assessments levied on all or a specifically identified portion of the assessed property located within the district or districts.
5. Two or more series of refunding bonds may be issued to refund the outstanding bonds of one or more districts and each series may be secured by assessments levied on different portions of assessed property located within the district or districts whose bonds are outstanding.
6. Except as otherwise provided in subsection 7 or 8, the governing body, in connection with the issuance of refunding bonds pursuant to this section, may amend the assessment ordinance to amend the following terms of all or a portion of the assessments authorized in the ordinance:
(a) The rate of interest the governing body charges on unpaid installments;
(b) Any penalties for prepayment of assessments;
(c) The amounts of unpaid installments;
(d) The principal balance of assessments;
(e) The dates upon which unpaid installments are due;
(f) The number of years over which unpaid installments are due; and
(g) Any other term, if the term, as amended, would comply with the provisions of this chapter.
7. Before a governing body may amend an assessment ordinance to increase the principal and interest of any assessment, the number of years over which unpaid installments are due or the amount of any unpaid installments, it must:
(a) Obtain the written consent of the owner of each tract that would be affected by the proposed amendment to the ordinance; or
(b) Hold a hearing on the proposed amendment and give notice of that hearing in the manner set forth in NRS 271.305. If the owners of the tracts upon which more than one-half of the affected assessments, measured by the unpaid assessment balance, submit written protests to the governing body on or before the date of the hearing, the governing body shall not adopt the proposed amendment to the assessment ordinance.
8. To issue refunding bonds or to amend an assessment ordinance pursuant to this section, the governing body must find that:
(a) The obligation of the municipality will not be materially or adversely impaired with respect to any outstanding bond secured by assessments; and
(b) The principal balance of any assessment will not increase to an amount such that the aggregate amount that is assessed against the tract exceeds the minimum benefit to the tract that is estimated to result from the project that is financed by the assessment and the refunding of the outstanding bonds.
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exceeds the minimum benefit to the tract that is estimated to result from the project that is financed by the assessment and the refunding of the outstanding bonds.
Sec. 17. NRS 271.490 is hereby amended to read as follows:
271.490 [The]
1. Except as otherwise provided in subsection 3, the assessments, when levied, shall be and remain a lien on the respective tracts of land assessed until paid, as provided herein, and, when collected, shall be placed in a special fund and as such shall at all times constitute a sinking fund for and be deemed specially appropriated to the payment of the assessment bonds and interest thereon, and shall not be used for any other purpose until the bonds and interest thereon are fully paid, except for the assessments paid during the 30-day payment period provided in NRS 271.405 and applied directly to the costs of the project.
2. Penalties, collection costs and interest on a delinquency imposed pursuant to subsection 4 of NRS 271.415 or 271.585 in connection with the collection of an assessment or an installment payment that is not paid when it comes due may be deposited in any fund or account of the municipality designated by the governing body or designated by the chief financial officer of the municipality if the governing body has authorized the chief financial officer to make such a designation.
3. If permitted by the ordinance authorizing the issuance of a bond, the assessments and any penalties, collection costs or interest not needed in any year to pay the principal and interest on the bonds may be used to pay the administrative costs of the municipality incurred in connection with the district and the collection of the assessments.
Sec. 18. NRS 271.515 is hereby amended to read as follows:
271.515 1. Any assessment bonds:
(a) Must bear such date or dates;
(b) Must mature in such denomination or denominations at such time or times, but in no event commencing later than [1 year] 3 years nor exceeding [20] 30 years after their date;
(c) Must bear interest payable at such intervals, but not less often than annually;
(d) Must be payable in such medium of payment at such place or places within and without the State, including, but not limited to, the office of the county treasurer; and
(e) At the option of the governing body, may be made subject to prior redemption in advance of maturity, in such order or by lot or otherwise, at such time or times, without or with the payment of a premium or premiums not exceeding [9] 5 percent of the principal amount of each bond so redeemed,
Κ as provided by ordinance.
2. Bonds may be issued with privileges for registration for payment as to principal, or both principal and interest, and the bonds may provide for the endorsing of payments of interest thereon. The bonds generally must be issued in such manner, in such form, with such recitals, terms, covenants and conditions, with such provisions for conversion into bonds of other denominations, and with such other details, as may be provided by the governing body in the ordinance or ordinances authorizing the bonds, except as herein otherwise provided.
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3. Pending preparations of the definitive bonds, interim or temporary bonds, in such form and with such provisions as the governing body may determine, may be issued.
4. Except for payment provisions herein expressly provided, the bonds and such interim or temporary bonds must be fully negotiable within the meaning of and for all the purposes of the Uniform Commercial Code — Negotiable Instruments and the Uniform Commercial Code — Investment Securities.
5. Notwithstanding any other provisions of law, the governing body, in any proceedings authorizing bonds hereunder, may:
(a) Provide for the initial issuance of one or more bonds, in this subsection called bond, aggregating the amount of the entire issue or any portion thereof.
(b) Make such provision for installment payments of the principal amount of any such bond as it may consider desirable.
(c) Provide for the making of any such bond payable to bearer or otherwise, registrable as to principal, or as to both principal and interest, and for the endorsing of payments of interest on such bond.
(d) Make provision in any such proceedings for the manner and circumstances in and under which any such bond may in the future, at the request of the holder thereof, be converted into bonds of larger or smaller denominations.
6. Any bonds may be issued hereunder with provisions for their reissuance, and the terms and conditions thereof, whether lost, apparently destroyed, wrongfully taken, or for any other reason, as provided in the Uniform Commercial Code — Investment Securities, or otherwise.
7. Any bond must be executed in the name of and on behalf of the municipality and signed by the mayor, chairman or other presiding officer of the governing body, countersigned by the treasurer of the municipality, with the seal of the municipality affixed thereto and attested by the clerk.
8. Any bond may be executed as provided in the Uniform Facsimile Signatures of Public Officials Act.
9. The bonds bearing the signatures of the officers in office at the time of the signing thereof are the valid and binding obligations of the municipality, notwithstanding that before the delivery thereof and payment therefor, any or all of the persons whose signatures appear thereon have ceased to fill their respective offices.
10. Any officer herein authorized or permitted to sign any bond, at the time of its execution and of the execution of a signature certificate, may adopt as and for his own facsimile signature the facsimile signature of his predecessor in office in the event that such facsimile signature appears upon the bond.
Sec. 19. NRS 271.545 is hereby amended to read as follows:
271.545 1. All assessments and installments thereof shall be collected and enforced by the municipal treasurer at the times and in the manner provided by the Consolidated Local Improvements Law and as hereafter provided. As soon as any assessment or installment becomes delinquent, the municipal treasurer shall mark the same delinquent on the assessment roll. Within 60 days thereafter, the governing body shall direct the municipal treasurer to give notice of the sale of the property or properties subject to the lien of a delinquent installment or the entire assessment if the governing body has exercised its option to cause the whole amount of the unpaid principal to become due and payable.
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body has exercised its option to cause the whole amount of the unpaid principal to become due and payable. The notice shall contain:
[1.] (a) The name of each last known owner of each tract upon which an assessment or installment thereof is delinquent, or if not known that the name is unknown.
[2.] (b) A description of each tract upon which an assessment is delinquent, and the total amount due thereon, including the delinquent installment or the whole assessment, as the case may be, accrued interest upon the whole amount of unpaid principal to the date of delinquency, interest upon unpaid principal and accrued interest from the date of delinquency to the date of sale at a rate not exceeding 1 percent per month, penalties and collection costs, including attorneys fees.
[3.] (c) A statement of the time and place of sale.
[4.] (d) A statement that each property described will be sold to satisfy the total amount due thereon as aforesaid.
2. A governing body may adopt an ordinance to establish the procedures for conducting a sale of a property pursuant to the provisions of NRS 271.540 to 271.620, inclusive, including, without limitation, the method of determining the person who shall be permitted to purchase a property at such a sale.
Sec. 20. NRS 271.595 is hereby amended to read as follows:
271.595 1. Any property sold for an assessment, or any installment thereof, is subject to redemption by the former owner, or his grantee, mortgagee, heir or other representative after:
(a) If there was a permanent residential dwelling unit or any other significant permanent improvement on the property at the time the sale was held pursuant to NRS 271.555, as determined by the governing body, at any time within 2 years; or
(b) In all other cases, at any time within 120 days,
Κ after the date of the certificate of sale, upon payment to the municipal treasurer of the amount for which the property was sold, with interest thereon at a rate of not exceeding 1 percent per month, together with all taxes and special assessments, or installments thereof, interest, penalties, costs and other charges, thereon paid by the purchaser since the sale, with like interest thereon. Unless written notice of taxes and assessments subsequently paid, and the amount thereof, is deposited with the treasurer, redemption may be made without their inclusion.
2. On any redemption being made, the treasurer shall give to the redemptioner a certificate of redemption, and pay over the amount received to the purchaser of the certificate of sale or his assigns.
3. If no redemption is made within the period of redemption as determined pursuant to subsection 1, the treasurer shall, on demand of the purchaser or his assigns, and the surrender to him of the certificate of sale, execute to the purchaser or his assigns a deed to the property. No deed may be executed until the holder of the certificate of sale has notified the owners of the property that he holds the certificate, and that he will demand a deed therefor. The notice must be given by personal service upon the owner. However, if an owner is not a resident of the State or cannot be found within the State after diligent search, the notice may be given by publication. The notice and return thereof, with the affidavit of the person, or in the case of the municipality, of the clerk, claiming a deed, showing that service was made, must be filed with the treasurer.
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4. If redemption is not made within 60 days after the date of service, or the date of the first publication of the notice, as the case may be, the holder of the certificate of sale is entitled to a deed. The deed must be executed only for the property described in the certificate, and after payment of all delinquent taxes and special assessments, or installments thereof, whether levied or assessed before or after the issuance of the certificate of sale. A deed may be issued to any municipality for the face amount of the certificate of sale, plus accrued interest from the date of sale to the date of the execution of the deed at a rate of not exceeding 1 percent per month.
5. Any payment related to a redemption pursuant to this section sent to a municipality by mail shall be deemed to have been made on the date on which the municipality received the payment.
Sec. 21. NRS 271.710 is hereby amended to read as follows:
271.710 1. A governing body may adopt an ordinance pursuant to NRS 271.325 creating a district and ordering a project to be acquired or improved and may contract with a person to construct or improve a project, issue bonds or otherwise finance the cost of the project and levy assessments, without complying with the provisions of NRS 271.305 to 271.320, inclusive, 271.330 to 271.345, inclusive, 271.380 and 271.385 and , except as otherwise provided in this section, the provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, chapters 332, 338 and 339 of NRS, if the governing body has entered into a written agreement with the owners of all of the assessable property within the district which states that:
(a) The governing body agrees to enter into a contract for the acquisition, construction or improvement of the project or projects in the district which includes:
(1) A provision stating that the requirements of NRS 338.010 to 338.090, inclusive, apply to any construction work to be performed under the contract; and
(2) The price, stated as a lump sum or as unit prices, which the governing body agrees to pay for the project if the project meets all requirements and specifications in the contract.
(b) The owners of the assessable property agree that if the rate of interest on any assessment levied for the district is determined from time to time as provided in NRS 271.487, the owners will provide written notice to the governing body in a timely manner when a parcel of the assessable property in the district is sold to a person who intends to occupy a dwelling unit on the parcel as his residence.
(c) The owners of the assessable property agree that the governing body may create the district, levy the assessments and for all other purposes relating to the district proceed pursuant to the provisions of this section.
2. If an ordinance is adopted and the agreement entered into pursuant to subsection 1 so states:
(a) The governing body may amend the ordinance creating the district, change the assessment roll and redistribute the assessments required by NRS 271.390 in the same manner in which these actions were originally taken to add additional property to the district. The assessments may be redistributed between the assessable property originally in the district and the additional assessable property if: