[Rev. 1/30/2019 4:36:26 PM]
κ2013 Statutes of Nevada, Page 3073κ
Senate Bill No. 123Senator Atkinson
Joint Sponsors: Assemblymen Bobzien and Kirkpatrick
CHAPTER 490
[Approved: June 11, 2013]
AN ACT relating to energy; requiring certain electric utilities in this State to file with the Public Utilities Commission of Nevada an emissions reduction and capacity replacement plan; prescribing the minimum requirements of such a plan; providing for the recovery of certain costs relating to an emissions reduction and capacity replacement plan; prescribing the powers and duties of the Commission and the Division of Environmental Protection of the State Department of Conservation and Natural Resources with respect to such a plan; providing for the mitigation of certain amounts in excess of a utilitys total revenue requirement; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Section 7 of this bill requires an electric utility which primarily serves densely populated counties (currently only Clark County) and which, in the most recently completed calendar year or in any other calendar year within the 7 calendar years immediately preceding the most recently completed calendar year, had a gross operating revenue of $250,000,000 or more in this State to submit to the Public Utilities Commission of Nevada a comprehensive plan for the reduction of emissions from coal-fired electric generating plants and the replacement of the capacity of such plants with increased capacity from renewable energy facilities and other electric generating plants. Section 7 prescribes the minimum requirements of such an emissions reduction and capacity replacement plan, which include: (1) the retirement or elimination of not less than 800 megawatts of coal-fired electric generating capacity on or before December 31, 2019; (2) the construction or acquisition of, or contracting for, 350 megawatts of electric generating capacity from renewable energy facilities; and (3) the construction or acquisition of 550 megawatts of electric generating capacity from other electric generating plants. Section 9 of this bill provides for the recovery of certain costs incurred by an electric utility in carrying out an emissions reduction and capacity replacement plan.
Sections 10, 18 and 19 of this bill provide that the Division of Environmental Protection of the State Department of Conservation and Natural Resources has exclusive jurisdiction to supervise and regulate the remediation of any site previously used for the production of electricity from a coal-fired electric generating plant, including authority to regulate and supervise the remediation of surface water and groundwater and solid-waste disposal operations located at such a site. Additionally, sections 10 and 20 of this bill provide that the Division has exclusive authority to regulate emissions from any renewable energy facility or electric generating plant constructed on a site previously used for the production of electricity from a coal-fired electric generating plant.
Section 12 of this bill establishes provisions concerning the filing of an amendment to a utilitys emissions reduction and capacity replacement plan for purposes of the Commissions approval and acceptance of certain contracts between the utility and a renewable energy facility. Section 12.5 of this bill provides that if the Commission deems inadequate any portion of a utilitys emissions reduction and capacity replacement plan or an amendment to the plan, the Commission may recommend a modification to the plan or amendment, and the utility may accept the modification or withdraw the proposed plan or amendment.
κ2013 Statutes of Nevada, Page 3074 (CHAPTER 490, SB 123)κ
Existing law establishes provisions governing public hearings on the adequacy of a utilitys plan to increase its supply of electricity or decrease demands made on its system. (NRS 704.746) Section 16 of this bill authorizes the Commission to give preference to the measures and sources of supply that provide the greatest opportunity for the creation of new jobs in this State. Section 16 also requires the Commission, after a hearing, to review and accept or modify an emissions reduction and capacity replacement plan. Section 16 requires the Commission, in reviewing such a plan, to consider: (1) the cost to the customers of the electric utility to implement the plan; (2) whether the plan provides the greatest economic benefit to this State; (3) whether the plan provides the greatest opportunities for the creation of new jobs in this State; and (4) whether the plan represents the best value to the customers of the electric utility.
Existing law requires the Commission to issue an order to accept as filed a utilitys plan to increase its supply of electricity or to decrease demands on its system or to specify any portions of such a plan as inadequate. (NRS 704.751) Section 17 of this bill revises the time in which a utility may file an amendment to its plan and also requires that any order issued by the Commission accepting an element of an emissions reduction and capacity replacement plan must authorize a utility to construct or to acquire and own electric generating plants necessary to implement the utilitys emissions reduction and capacity replacement plan.
Section 22 of this bill provides that this bill becomes effective upon passage and approval.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 13, inclusive, of this act.
Sec. 2. As used in sections 2 to 13, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2.5 to 6, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 2.5. Coal-fired electric generating plant means an electric generating plant which burns coal to produce electricity and which is owned, in whole or in part, by an electric utility.
Sec. 3. (Deleted by amendment.)
Sec. 4. Electric utility means an electric utility that primarily serves densely populated counties, as that term is defined in paragraph (c) of subsection 17 of NRS 704.110.
Sec. 5. Emissions reduction and capacity replacement plan means a plan filed by an electric utility with the Commission pursuant to section 7 of this act.
Sec. 6. Renewable energy facility means an electric generating facility that uses renewable energy to produce electricity. As used in this section, renewable energy has the meaning ascribed to it in NRS 704.7811.
Sec. 7. 1. An electric utility shall file with the Commission, as part of the plan required to be submitted pursuant to NRS 704.741, a comprehensive plan for the reduction of emissions from coal-fired electric generating plants and the replacement of the capacity of such plants with increased capacity from renewable energy facilities and other electric generating plants.
2. The emissions reduction and capacity replacement plan must provide:
κ2013 Statutes of Nevada, Page 3075 (CHAPTER 490, SB 123)κ
(a) For the retirement or elimination of:
(1) Not less than 300 megawatts of coal-fired electric generating capacity on or before December 31, 2014;
(2) In addition to the generating capacity retired or eliminated pursuant to subparagraph (1), not less than 250 megawatts of coal-fired electric generating capacity on or before December 31, 2017; and
(3) In addition to the generating capacity retired or eliminated pursuant to subparagraphs (1) and (2), not less than 250 megawatts of coal-fired electric generating capacity on or before December 31, 2019.
Κ For the purposes of this paragraph, the generating capacity of a coal-fired electric generating plant must be determined by reference to the most recent resource plan filed by the electric utility pursuant to NRS 704.741 and accepted by the Commission pursuant to NRS 704.751.
(b) For the construction or acquisition of, or contracting for, 350 megawatts of electric generating capacity from renewable energy facilities. The electric utility shall:
(1) Issue a request for proposals for 100 megawatts of electric generating capacity from new renewable energy facilities on or before December 31, 2014;
(2) In addition to the request for proposals issued pursuant to subparagraph (1), issue a request for proposals for 100 megawatts of electric generating capacity from new renewable energy facilities on or before December 31, 2015;
(3) In addition to the requests for proposals issued pursuant to subparagraphs (1) and (2), issue a request for proposals for 100 megawatts of electric generating capacity from new renewable energy facilities on or before December 31, 2016;
(4) Review each proposal received pursuant to subparagraphs (1), (2) and (3) and identify those renewable energy facilities that will provide:
(I) The greatest economic benefit to this State;
(II) The greatest opportunity for the creation of new jobs in this State; and
(III) The best value to customers of the electric utility;
(5) Negotiate, in good faith, to construct, acquire or contract with the renewable energy facilities identified pursuant to subparagraph (4), and file with the Commission an amendment to the plan each time the utility wishes to construct, acquire or contract with such facilities; and
(6) Begin, on or before December 31, 2017, the construction or acquisition of a portion of new renewable energy facilities with a generating capacity of 50 megawatts to be owned and operated by the electric utility, and complete construction of such facilities on or before December 31, 2021.
Κ For the purposes of this paragraph, the generating capacity of a renewable energy facility must be determined by the nameplate capacity of the facility.
(c) For the electric utility to construct or acquire and own electric generating plants with an electric generating capacity of 550 megawatts, which must be constructed or acquired to replace, in an orderly and structured manner, the coal-fired electric generating capacity retired or eliminated pursuant to paragraph (a).
κ2013 Statutes of Nevada, Page 3076 (CHAPTER 490, SB 123)κ
(d) If the plan includes the construction or acquisition of one or more natural gas-fired electric generating plants, a strategy for the commercially reasonable physical procurement of fixed-price natural gas by the electric utility.
(e) A plan for tracking and specifying the accounting treatment for all costs associated with the decommissioning of the coal-fired electric generating plants identified for retirement or elimination.
Κ For the purposes of this subsection, an electric utility shall be deemed to own, acquire, retire or eliminate only its pro rata portion of any electric generating facility that is not wholly owned by the electric utility and, except as otherwise provided in paragraph (b), capacity means an amount of firm electric generating capacity used by the electric utility for the purpose of preparing a plan filed with the Commission pursuant to NRS 704.736 to 704.754, inclusive.
3. In addition to the requirements for an emissions reduction and capacity replacement plan set forth in subsection 2, the plan may include additional utility facilities, electric generating plants, elements or programs necessary to carry out the plan, including, without limitation:
(a) The construction of natural gas pipelines necessary for the operation of any new natural gas-fired electric generating plants included in the plan;
(b) Entering into contracts for the transportation of natural gas necessary for the operation of any natural gas-fired electric generating plants included in the plan; and
(c) The construction of transmission lines and related infrastructure necessary for the operation or interconnection of any electric generating plants included in the plan.
Sec. 8. (Deleted by amendment.)
Sec. 9. An electric utility shall, upon the completion of construction or acquisition of any electric generating plant or other facility constructed or acquired pursuant to an emissions reduction and capacity replacement plan accepted by the Commission pursuant to NRS 704.751, begin recording in a regulatory asset, with carrying charges, an amount that reflects a return on the electric utilitys investment in the facility, depreciation of the utilitys investment in the facility and the cost of operating and maintaining the facility.
Sec. 10. 1. To ensure the remediation and, when possible, the reuse of any site used for the production of electricity from a coal-fired electric generating plant in this State, the Division of Environmental Protection of the State Department of Conservation and Natural Resources has exclusive jurisdiction to supervise and regulate the remediation of such sites, including, without limitation, exclusive authority to regulate and supervise the remediation of surface water and groundwater and solid-waste disposal operations located at such a site.
2. The Division of Environmental Protection has exclusive authority to regulate emissions from any electric generating plant constructed on a site previously used for the production of electricity from a coal-fired electric generating plant.
Sec. 11. If, in any general rate proceeding filed by an electric utility before June 1, 2018, the utility includes a request for recovery of any amount related to the implementation of an emissions reduction and capacity replacement plan and recovery of such an amount would result in an increase in the electric utilitys total revenue requirement of more than 5 percent, the utility must propose a method or mechanism by which such excess may be mitigated.
κ2013 Statutes of Nevada, Page 3077 (CHAPTER 490, SB 123)κ
an increase in the electric utilitys total revenue requirement of more than 5 percent, the utility must propose a method or mechanism by which such excess may be mitigated. The Commission may accept or reject such a rate method or mechanism. If the mitigation method or mechanism is approved by the Commission, the utility shall record any deferred revenue in a regulatory asset account and may calculate carrying charges on the unamortized balance of the regulatory asset.
Sec. 12. 1. An electric utility shall file with the Commission an amendment to the utilitys emissions reduction and capacity replacement plan each time the utility requests approval and acceptance by the Commission of any contract with a new renewable energy facility as the result of a request for proposals pursuant to the current emissions reduction and capacity replacement plan. The Commission may approve and accept the renewable energy facility if the Commission determines that:
(a) The facility is a renewable energy system as defined in NRS 704.7815; and
(b) The terms and conditions of the contract are just and reasonable and satisfy the capacity requirements set forth in subsection 2 of section 7 of this act.
2. In considering a contract pursuant to subsection 1, the Commission shall, in addition to considering the cost to customers of the electric utility, give consideration to those contracts or renewable energy facilities that will provide:
(a) The greatest economic benefit to this State;
(b) The greatest opportunity for the creation of new jobs in this State; and
(c) The best value to customers of the electric utility.
Sec. 12.5. If the Commission deems inadequate any portion of an emissions reduction and capacity replacement plan or any amendment to the plan, the Commission may recommend to the electric utility a modification of that portion of the plan or amendment, and the electric utility may:
1. Accept the modification; or
2. Withdraw the proposed plan or amendment.
Sec. 13. The Commission shall adopt any regulations necessary to carry out the provisions of sections 2 to 13, inclusive, of this act.
Sec. 14. (Deleted by amendment.)
Sec. 15. NRS 704.110 is hereby amended to read as follows:
704.110 Except as otherwise provided in NRS 704.075 and 704.68861 to 704.68887, inclusive, or as may otherwise be provided by the Commission pursuant to NRS 704.095 or 704.097:
1. If a public utility files with the Commission an application to make changes in any schedule, including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the Commission shall investigate the propriety of the proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an annual deferred energy accounting adjustment application, the Consumers Advocate shall be deemed a party of record.
2. Except as otherwise provided in subsection 3, if a public utility files with the Commission an application to make changes in any schedule, the Commission shall, not later than 210 days after the date on which the application is filed, issue a written order approving or disapproving, in whole or in part, the proposed changes.
κ2013 Statutes of Nevada, Page 3078 (CHAPTER 490, SB 123)κ
Commission shall, not later than 210 days after the date on which the application is filed, issue a written order approving or disapproving, in whole or in part, the proposed changes.
3. If a public utility files with the Commission a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. Except as otherwise provided in subsection 4, in determining whether to approve or disapprove any increased rates, the Commission shall consider evidence in support of the increased rates based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the Commission and the Commission has approved the increased rates. The Commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utilitys plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the date on which the certification required by this subsection is filed with the Commission, or within the period set forth in subsection 2, whichever time is longer, the Commission shall make such order in reference to the increased rates as is required by this chapter. The following public utilities shall each file a general rate application pursuant to this subsection based on the following schedule:
(a) An electric utility that primarily serves less densely populated counties shall file a general rate application not later than 5 p.m. on or before the first Monday in June 2010, and at least once every 36 months thereafter.
(b) An electric utility that primarily serves densely populated counties shall file a general rate application not later than 5 p.m. on or before the first Monday in June 2011, and at least once every 36 months thereafter.
(c) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had not filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2008, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission. If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the public utility meets the requirements of this paragraph for either service.
(d) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2009, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission.
κ2013 Statutes of Nevada, Page 3079 (CHAPTER 490, SB 123)κ
application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2009, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission. If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the public utility meets the requirements of this paragraph for either service.
Κ The Commission shall adopt regulations setting forth standards for waivers pursuant to paragraphs (c) and (d) and for including the costs incurred by the public utility in preparing and presenting the general rate application before the effective date of any change in rates.
4. In addition to submitting the statement required pursuant to subsection 3, a public utility may submit with its general rate application a statement showing the effects, on an annualized basis, of all expected changes in circumstances. If such a statement is filed, it must include all increases and decreases in revenue and expenses which may occur within 210 days after the date on which its general rate application is filed with the Commission if such expected changes in circumstances are reasonably known and are measurable with reasonable accuracy. If a public utility submits such a statement, the public utility has the burden of proving that the expected changes in circumstances set forth in the statement are reasonably known and are measurable with reasonable accuracy. The Commission shall consider expected changes in circumstances to be reasonably known and measurable with reasonable accuracy if the expected changes in circumstances consist of specific and identifiable events or programs rather than general trends, patterns or developments, have an objectively high probability of occurring to the degree, in the amount and at the time expected, are primarily measurable by recorded or verifiable revenues and expenses and are easily and objectively calculated, with the calculation of the expected changes relying only secondarily on estimates, forecasts, projections or budgets. If the Commission determines that the public utility has met its burden of proof:
(a) The Commission shall consider the statement submitted pursuant to this subsection and evidence relevant to the statement, including all reasonable projected or forecasted offsets in revenue and expenses that are directly attributable to or associated with the expected changes in circumstances under consideration, in addition to the statement required pursuant to subsection 3 as evidence in establishing just and reasonable rates for the public utility; and
(b) The public utility is not required to file with the Commission the certification that would otherwise be required pursuant to subsection 3.
5. If a public utility files with the Commission an application to make changes in any schedule and the Commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the Commission.
6. If a public utility files with the Commission a general rate application, the public utility shall not file with the Commission another general rate application until all pending general rate applications filed by that public utility have been decided by the Commission unless, after application and hearing, the Commission determines that a substantial financial emergency would exist if the public utility is not permitted to file another general rate application sooner.
κ2013 Statutes of Nevada, Page 3080 (CHAPTER 490, SB 123)κ
financial emergency would exist if the public utility is not permitted to file another general rate application sooner. The provisions of this subsection do not prohibit the public utility from filing with the Commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 7, a quarterly rate adjustment pursuant to subsection 8 or 10, any information relating to deferred accounting requirements pursuant to NRS 704.185 or an annual deferred energy accounting adjustment application pursuant to NRS 704.187, if the public utility is otherwise authorized to so file by those provisions.
7. A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to:
(a) An electric utility which is required to adjust its rates on a quarterly basis pursuant to subsection 10; or
(b) A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis pursuant to subsection 8.
8. A public utility which purchases natural gas for resale must request approval from the Commission to adjust its rates on a quarterly basis between annual rate adjustment applications based on changes in the public utilitys recorded costs of natural gas purchased for resale. A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis may request approval from the Commission to make quarterly adjustments to its deferred energy accounting adjustment. The Commission shall approve or deny such a request not later than 120 days after the application is filed with the Commission. The Commission may approve the request if the Commission finds that approval of the request is in the public interest. If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of a public utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 2.5 cents per therm of natural gas. If the balance of the public utilitys deferred account varies by less than 5 percent from the public utilitys annual recorded costs of natural gas which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per therm of natural gas.
9. If the Commission approves a request to make any rate adjustments on a quarterly basis pursuant to subsection 8:
(a) The public utility shall file written notice with the Commission before the public utility makes a quarterly rate adjustment. A quarterly rate adjustment is not subject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(b) The public utility shall provide written notice of each quarterly rate adjustment to its customers by including the written notice with a customers regular monthly bill. The public utility shall begin providing such written notice to its customers not later than 30 days after the date on which the public utility files its written notice with the Commission pursuant to paragraph (a). The written notice that is included with a customers regular monthly bill:
(1) Must be printed separately on fluorescent-colored paper and must not be attached to the pages of the bill; and
(2) Must include the following:
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(I) The total amount of the increase or decrease in the public utilitys revenues from the rate adjustment, stated in dollars and as a percentage;
(II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;
(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;
(IV) A statement that the transactions and recorded costs of natural gas which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review the annual rate adjustment application pursuant to paragraph (d); and
(V) Any other information required by the Commission.
(c) The public utility shall file an annual rate adjustment application with the Commission. The annual rate adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(d) The proceeding regarding the annual rate adjustment application must include a review of each quarterly rate adjustment and the transactions and recorded costs of natural gas included in each quarterly filing and the annual rate adjustment application. There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application, and the public utility has the burden of proving reasonableness and prudence in the proceeding.
(e) The Commission shall not allow the public utility to recover any recorded costs of natural gas which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the public utility, and the Commission shall order the public utility to adjust its rates if the Commission determines that any recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application were not reasonable or prudent.
10. An electric utility shall adjust its rates on a quarterly basis based on changes in the electric utilitys recorded costs of purchased fuel or purchased power. In addition to adjusting its rates on a quarterly basis, an electric utility may request approval from the Commission to make quarterly adjustments to its deferred energy accounting adjustment. The Commission shall approve or deny such a request not later than 120 days after the application is filed with the Commission. The Commission may approve the request if the Commission finds that approval of the request is in the public interest. If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of an electric utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 0.25 cents per kilowatt-hour of electricity. If the balance of the electric utilitys deferred account varies by less than 5 percent from the electric utilitys annual recorded costs for purchased fuel or purchased power which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per kilowatt-hour of electricity.
11. A quarterly rate adjustment filed pursuant to subsection 10 is subject to the following requirements:
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(a) The electric utility shall file written notice with the Commission on or before August 15, 2007, and every quarter thereafter of the quarterly rate adjustment to be made by the electric utility for the following quarter. The first quarterly rate adjustment by the electric utility will take effect on October 1, 2007, and each subsequent quarterly rate adjustment will take effect every quarter thereafter. The first quarterly adjustment to a deferred energy accounting adjustment must be made pursuant to an order issued by the Commission approving the application of an electric utility to make quarterly adjustments to its deferred energy accounting adjustment. A quarterly rate adjustment is not subject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(b) The electric utility shall provide written notice of each quarterly rate adjustment to its customers by including the written notice with a customers regular monthly bill. The electric utility shall begin providing such written notice to its customers not later than 30 days after the date on which the electric utility files a written notice with the Commission pursuant to paragraph (a). The written notice that is included with a customers regular monthly bill:
(1) Must be printed separately on fluorescent-colored paper and must not be attached to the pages of the bill; and
(2) Must include the following:
(I) The total amount of the increase or decrease in the electric utilitys revenues from the rate adjustment, stated in dollars and as a percentage;
(II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;
(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;
(IV) A statement that the transactions and recorded costs of purchased fuel or purchased power which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review the annual deferred energy accounting adjustment application pursuant to paragraph (d); and
(V) Any other information required by the Commission.
(c) The electric utility shall file an annual deferred energy accounting adjustment application pursuant to NRS 704.187 with the Commission. The annual deferred energy accounting adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.
(d) The proceeding regarding the annual deferred energy accounting adjustment application must include a review of each quarterly rate adjustment and the transactions and recorded costs of purchased fuel and purchased power included in each quarterly filing and the annual deferred energy accounting adjustment application. There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting adjustment application, and the electric utility has the burden of proving reasonableness and prudence in the proceeding.
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(e) The Commission shall not allow the electric utility to recover any recorded costs of purchased fuel and purchased power which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the electric utility, and the Commission shall order the electric utility to adjust its rates if the Commission determines that any recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting adjustment application were not reasonable or prudent.
12. If an electric utility files an annual deferred energy accounting adjustment application pursuant to subsection 11 and NRS 704.187 while a general rate application is pending, the electric utility shall:
(a) Submit with its annual deferred energy accounting adjustment application information relating to the cost of service and rate design; and
(b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.
13. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto , or the retirement or elimination of a utility facility identified in an emissions reduction and capacity replacement plan submitted pursuant to section 7 of this act and accepted by the Commission for retirement or elimination pursuant to NRS 704.751 and the regulations adopted pursuant thereto, shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing , or retiring or eliminating, as applicable, such a facility.
14. In regard to any rate or schedule approved or disapproved pursuant to this section, the Commission may, after a hearing:
(a) Upon the request of the utility, approve a new rate but delay the implementation of that new rate:
(1) Until a date determined by the Commission; and
(2) Under conditions as determined by the Commission, including, without limitation, a requirement that interest charges be included in the collection of the new rate; and
(b) Authorize a utility to implement a reduced rate for low-income residential customers.
15. The Commission may, upon request and for good cause shown, permit a public utility which purchases natural gas for resale or an electric utility to make a quarterly adjustment to its deferred energy accounting adjustment in excess of the maximum allowable adjustment pursuant to subsection 8 or 10.
16. A public utility which purchases natural gas for resale or an electric utility that makes quarterly adjustments to its deferred energy accounting adjustment pursuant to subsection 8 or 10 may submit to the Commission for approval an application to discontinue making quarterly adjustments to its deferred energy accounting adjustment and to subsequently make annual adjustments to its deferred energy accounting adjustment. The Commission may approve an application submitted pursuant to this subsection if the Commission finds that approval of the application is in the public interest.
17. As used in this section:
(a) Deferred energy accounting adjustment means the rate of a public utility which purchases natural gas for resale or an electric utility that is calculated by dividing the balance of a deferred account during a specified period by the total therms or kilowatt-hours which have been sold in the geographical area to which the rate applies during the specified period.
κ2013 Statutes of Nevada, Page 3084 (CHAPTER 490, SB 123)κ
calculated by dividing the balance of a deferred account during a specified period by the total therms or kilowatt-hours which have been sold in the geographical area to which the rate applies during the specified period.
(b) Electric utility has the meaning ascribed to it in NRS 704.187.
(c) Electric utility that primarily serves densely populated counties means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is 700,000 or more than it does from customers located in counties whose population is less than 700,000.
(d) Electric utility that primarily serves less densely populated counties means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is less than 700,000 than it does from customers located in counties whose population is 700,000 or more.
Sec. 16. NRS 704.746 is hereby amended to read as follows:
704.746 1. After a utility has filed its plan pursuant to NRS 704.741, the Commission shall convene a public hearing on the adequacy of the plan.
2. The Commission shall determine the parties to the public hearing on the adequacy of the plan. A person or governmental entity may petition the Commission for leave to intervene as a party. The Commission must grant a petition to intervene as a party in the hearing if the person or entity has relevant material evidence to provide concerning the adequacy of the plan. The Commission may limit participation of an intervener in the hearing to avoid duplication and may prohibit continued participation in the hearing by an intervener if the Commission determines that continued participation will unduly broaden the issues, will not provide additional relevant material evidence or is not necessary to further the public interest.
3. In addition to any party to the hearing, any interested person may make comments to the Commission regarding the contents and adequacy of the plan.
4. After the hearing, the Commission shall determine whether:
(a) The forecast requirements of the utility are based on substantially accurate data and an adequate method of forecasting.
(b) The plan identifies and takes into account any present and projected reductions in the demand for energy that may result from measures to improve energy efficiency in the industrial, commercial, residential and energy producing sectors of the area being served.
(c) The plan adequately demonstrates the economic, environmental and other benefits to this State and to the customers of the utility, associated with the following possible measures and sources of supply:
(1) Improvements in energy efficiency;
(2) Pooling of power;
(3) Purchases of power from neighboring states or countries;
(4) Facilities that operate on solar or geothermal energy or wind;
(5) Facilities that operate on the principle of cogeneration or hydrogeneration;
(6) Other generation facilities; and
(7) Other transmission facilities.
5. The Commission may give preference to the measures and sources of supply set forth in paragraph (c) of subsection 4 that:
κ2013 Statutes of Nevada, Page 3085 (CHAPTER 490, SB 123)κ
(a) Provide the greatest economic and environmental benefits to the State;
(b) Are consistent with the provisions of this section; [and]
(c) Provide levels of service that are adequate and reliable [.] ; and
(d) Provide the greatest opportunity for the creation of new jobs in this State.
6. The Commission shall:
(a) Adopt regulations which determine the level of preference to be given to those measures and sources of supply; and
(b) Consider the value to the public of using water efficiently when it is determining those preferences.
7. The Commission shall:
(a) Consider the level of financial commitment from developers of renewable energy projects in each renewable energy zone, as designated pursuant to subsection 2 of NRS 704.741; and
(b) Adopt regulations establishing a process for considering such commitments including, without limitation, contracts for the sale of energy, leases of land and mineral rights, cash deposits and letters of credit.
8. The Commission shall, after a hearing, review and accept or modify an emissions reduction and capacity replacement plan which includes each element required by section 7 of this act. In considering whether to accept or modify an emissions reduction and capacity replacement plan, the Commission shall consider:
(a) The cost to the customers of the electric utility to implement the plan;
(b) Whether the plan provides the greatest economic benefit to this State;
(c) Whether the plan provides the greatest opportunities for the creation of new jobs in this State; and
(d) Whether the plan represents the best value to the customers of the electric utility.
Sec. 17. NRS 704.751 is hereby amended to read as follows:
704.751 1. After a utility has filed the plan required pursuant to NRS 704.741, the Commission shall issue an order accepting the plan as filed or specifying any portions of the plan it deems to be inadequate:
(a) Within 135 days for any portion of the plan relating to the energy supply plan for the utility for the 3 years covered by the plan; and
(b) Within 180 days for all portions of the plan not described in paragraph (a).
2. If a utility files an amendment to a plan, the Commission shall issue an order accepting the amendment as filed or specifying any portions of the amendment it deems to be inadequate [within] :
(a) Within 135 days [of] after the filing of the amendment [.] ; or
(b) Within 180 days after the filing of the amendment for all portions of the amendment which contain an element of the emissions reduction and capacity replacement plan.
3. All prudent and reasonable expenditures made to develop the utilitys plan, including environmental, engineering and other studies, must be recovered from the rates charged to the utilitys customers.
4. The Commission may accept a transmission plan submitted pursuant to subsection 4 of NRS 704.741 for a renewable energy zone if the Commission determines that the construction or expansion of transmission facilities would facilitate the utility meeting the portfolio standard, as defined in NRS 704.7805.
κ2013 Statutes of Nevada, Page 3086 (CHAPTER 490, SB 123)κ
Commission determines that the construction or expansion of transmission facilities would facilitate the utility meeting the portfolio standard, as defined in NRS 704.7805.
5. The Commission shall adopt regulations establishing the criteria for determining the adequacy of a transmission plan submitted pursuant to subsection 4 of NRS 704.741.
6. Any order issued by the Commission accepting an element of an emissions reduction and capacity replacement plan must include provisions authorizing the electric utility to construct or acquire and own electric generating plants necessary to meet the capacity amounts approved in, and carry out the provisions of, the plan. As used in this subsection, capacity means an amount of firm electric generating capacity used by the electric utility for the purpose of preparing a plan filed with the Commission pursuant to NRS 704.736 to 704.754, inclusive.
Sec. 18. NRS 704.7588 is hereby amended to read as follows:
704.7588 Except as otherwise provided in NRS 704.7591 [:] and sections 2 to 13, inclusive, of this act:
1. Before July 1, 2003, an electric utility shall not dispose of a generation asset.
2. On or after July 1, 2003, an electric utility shall not dispose of a generation asset unless, before the disposal, the Commission approves the disposal by a written order issued in accordance with the provisions of this section.
3. Not sooner than January 1, 2003, an electric utility may file with the Commission an application to dispose of a generation asset on or after July 1, 2003. If an electric utility files such an application, the Commission shall not approve the application unless the Commission finds that the disposal of the generation asset will be in the public interest. The Commission shall issue a written order approving or disapproving the application. The Commission may base its approval of the application upon such terms, conditions or modifications as the Commission deems appropriate.
4. If an electric utility files an application to dispose of a generation asset, the Consumers Advocate shall be deemed a party of record.
5. If the Commission approves an application to dispose of a generation asset before July 1, 2003, the order of the Commission approving the application:
(a) May not become effective sooner than July 1, 2003;
(b) Does not create any vested rights before the effective date of the order; and
(c) For the purposes of NRS 703.373, shall be deemed a final decision on the date on which the order is issued by the Commission.
Sec. 19. NRS 444.495 is hereby amended to read as follows:
444.495 Solid waste management authority means:
1. [The] Except as otherwise provided in subsection 2, the district board of health in any area in which a health district has been created pursuant to NRS 439.362 or 439.370 and in any area over which the board has authority pursuant to an interlocal agreement, if the board has adopted all regulations that are necessary to carry out the provisions of NRS 444.440 to 444.620, inclusive.
2. In all other areas of the State [,] and pursuant to section 10 of this act, at any site previously used for the production of electricity from a coal-fired electric generating plant in this State, the Division of Environmental Protection of the State Department of Conservation and Natural Resources.
κ2013 Statutes of Nevada, Page 3087 (CHAPTER 490, SB 123)κ
coal-fired electric generating plant in this State, the Division of Environmental Protection of the State Department of Conservation and Natural Resources.
Sec. 20. NRS 445B.500 is hereby amended to read as follows:
445B.500 1. Except as otherwise provided in this section and in NRS 445B.310 [:] and section 10 of this act:
(a) The district board of health, county board of health or board of county commissioners in each county whose population is 100,000 or more shall establish a program for the control of air pollution and administer the program within its jurisdiction unless superseded.
(b) The program:
(1) Must include, without limitation, standards for the control of emissions, emergency procedures and variance procedures established by ordinance or local regulation which are equivalent to or stricter than those established by statute or state regulation;
(2) May, in a county whose population is 700,000 or more, include requirements for the creation, receipt and exchange for consideration of credits to reduce and control air contaminants in accordance with NRS 445B.508; and
(3) Must provide for adequate administration, enforcement, financing and staff.
(c) The district board of health, county board of health or board of county commissioners is designated as the air pollution control agency of the county for the purposes of NRS 445B.100 to 445B.640, inclusive, and the Federal Act insofar as it pertains to local programs, and that agency is authorized to take all action necessary to secure for the county the benefits of the Federal Act.
(d) Powers and responsibilities provided for in NRS 445B.210, 445B.240 to 445B.470, inclusive, 445B.560, 445B.570, 445B.580 and 445B.640 are binding upon and inure to the benefit of local air pollution control authorities within their jurisdiction.
2. The local air pollution control board shall carry out all provisions of NRS 445B.215 with the exception that notices of public hearings must be given in any newspaper, qualified pursuant to the provisions of chapter 238 of NRS, once a week for 3 weeks. The notice must specify with particularity the reasons for the proposed regulations and provide other informative details. NRS 445B.215 does not apply to the adoption of existing regulations upon transfer of authority as provided in NRS 445B.610.
3. In a county whose population is 700,000 or more, the local air pollution control board may delegate to an independent hearing officer or hearing board its authority to determine violations and levy administrative penalties for violations of the provisions of NRS 445B.100 to 445B.450, inclusive, and 445B.500 to 445B.640, inclusive, or any regulation adopted pursuant to those sections. If such a delegation is made, 17.5 percent of any penalty collected must be deposited in the county treasury in an account to be administered by the local air pollution control board to a maximum of $17,500 per year. The money in the account may only be used to defray the administrative expenses incurred by the local air pollution control board in enforcing the provisions of NRS 445B.100 to 445B.640, inclusive. The remainder of the penalty must be deposited in the county school district fund of the county where the violation occurred and must be accounted for separately in the fund. A school district may spend the money received pursuant to this section only in accordance with an annual spending plan that is approved by the local air pollution control board and shall submit an annual report to that board detailing the expenditures of the school district under the plan.
κ2013 Statutes of Nevada, Page 3088 (CHAPTER 490, SB 123)κ
pursuant to this section only in accordance with an annual spending plan that is approved by the local air pollution control board and shall submit an annual report to that board detailing the expenditures of the school district under the plan. A local air pollution control board shall approve an annual spending plan if the proposed expenditures set forth in the plan are reasonable and limited to:
(a) Programs of education on topics relating to air quality; and
(b) Projects to improve air quality, including, without limitation, the purchase and installation of equipment to retrofit school buses of the school district to use biodiesel, compressed natural gas or a similar fuel formulated to reduce emissions from the amount of emissions produced by the use of traditional fuels such as gasoline and diesel fuel,
Κ which are consistent with the state implementation plan adopted by this State pursuant to 42 U.S.C. §§ 7410 and 7502.
4. Any county whose population is less than 100,000 or any city may meet the requirements of this section for administration and enforcement through cooperative or interlocal agreement with one or more other counties, or through agreement with the State, or may establish its own program for the control of air pollution. If the county establishes such a program, it is subject to the approval of the Commission.
5. No district board of health, county board of health or board of county commissioners may adopt any regulation or establish a compliance schedule, variance order or other enforcement action relating to the control of emissions from plants which generate electricity by using steam produced by the burning of fossil fuel.
6. As used in this section, plants which generate electricity by using steam produced by the burning of fossil fuel means plants that burn fossil fuels in a boiler to produce steam for the production of electricity. The term does not include any plant which uses technology for a simple or combined cycle combustion turbine, regardless of whether the plant includes duct burners.
Sec. 21. (Deleted by amendment.)
Sec. 21.5. The amendatory provisions of this act do not prohibit an electric utility, as defined in section 4 of this act, from requesting pursuant to NRS 704.736 to 704.751, inclusive, or the Public Utilities Commission of Nevada from authorizing, the issuance by the electric utility of requests for proposals for renewable energy facilities in addition to any requests for proposals necessary to carry out the provisions of paragraph (b) of subsection 2 of section 7 of this act, but the electric utility must demonstrate that the issuance of any such request for proposals for renewable energy facilities complies with the requirements of NRS 704.7801 to 704.7828, inclusive.
Sec. 22. This act becomes effective upon passage and approval.
________
κ2013 Statutes of Nevada, Page 3089κ
Senate Bill No. 165Senators Ford, Smith, Denis, Hutchison, Roberson; Atkinson, Jones, Kihuen, Manendo, Parks, Segerblom, Spearman and Woodhouse
Joint Sponsors: Assemblymen Aizley, Frierson, Horne, Fiore; Kirkpatrick and Spiegel
CHAPTER 491
[Approved: June 11, 2013]
AN ACT relating to taxation; authorizing the Office of Economic Development to approve and issue a certificate of transferable tax credits to a producer that produces a qualified film or other production in this State under certain circumstances; providing for the calculation of the transferable tax credits; requiring the Office to provide notice of certain hearings; requiring a producer to return any portion of transferable tax credits to which he or she is not entitled; authorizing the governing body of a city or county to grant abatements of certain permitting and licensing fees imposed or charged by the city or county; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Section 8 of this bill authorizes a producer that produces a film, television or other media production in this State to apply, on or before December 31, 2017, to the Office of Economic Development for a certificate of transferable tax credits. Section 8 requires the Office to approve transferable tax credits for such a producer if, in addition to certain other requirements: (1) the production is in the economic interest of this State; (2) at least 60 percent of the total qualified expenditures and production costs for the production will be incurred in this State; and (3) the production costs of the qualified production exceed $500,000. Upon approval of transferable tax credits and a determination of the amount of tax credits by the Office, section 8 requires the Office to issue to the producer a certificate of transferable tax credits. Section 8 also sets forth the fees and taxes to which the transferable tax credits may be applied. Additionally, section 8 requires that, at the completion of the qualified production, the producer provide the Office with an audit of the qualified production that is certified by an independent certified public accountant in this State who is approved by the Office. Section 9 of this bill sets forth the types of qualified expenditures and production costs that may serve as a basis for transferable tax credits, and sections 10-12 of this bill provide for the calculation of the transferable tax credits. Section 12 prohibits the Office from approving any applications for transferable tax credits received on or after January 1, 2018. Section 14 of this bill requires the Office to meet certain notice requirements before holding a hearing to approve or disapprove an application for transferable tax credits. Section 16 of this bill requires a producer to repay any portion of transferable tax credits to which the producer is not entitled if the producer becomes ineligible for the tax credits after receiving the tax credits.
Section 15.5 of this bill authorizes the governing body of a city or county to grant to the producer of a qualified production an abatement of all or any percentage of the amount of certain permitting fees and licensing fees imposed by the city or county if the governing body provides by ordinance for a pilot project for the abatement of such fees.
Section 19 of this bill provides that this bill expires on June 30, 2023.
κ2013 Statutes of Nevada, Page 3090 (CHAPTER 491, SB 165)κ
EXPLANATION
Matter in bolded italics is
new; matter between brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 360 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 17, inclusive, of this act.
Sec. 2. As used in sections 2 to 17, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 2.5 to 7, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 2.5. Above-the-line personnel means a producer, director, writer, actor, other than an extra, or other similar personnel whose compensation is negotiated before the start of the qualified production. The term does not include below-the-line personnel.
Sec. 3. (Deleted by amendment.)
Sec. 3.5. Below-the-line personnel means a person employed to work on a qualified production after production begins and before production is completed, including, without limitation, a best boy, boom operator, camera loader, camera operator, assistant camera operator, compositor, dialogue editor, film editor, assistant film editor, focus puller, Foley operator, Foley editor, gaffer, grip, key grip, lighting crew, lighting board operator, lighting technician, music editor, sound editor, sound effects editor, sound mixer, steadicam operator, first assistant camera operator, second assistant camera operator, digital imaging technician, camera operator working with a director of photography, electric best boy, grip best boy, dolly grip, rigging grip, assistant key for makeup, assistant key for hair, assistant script supervisor, set construction foreperson, lead set dresser, assistant key for wardrobe, scenic foreperson, assistant propmaster, assistant audio mixer, assistant boom person, assistant key for special effects and other similar personnel. The term does not include above-the-line personnel.
Sec. 4. Nevada business means a proprietorship, corporation, partnership, company, association, trust, unincorporated organization or other enterprise that:
1. Has a physical location and at least one full-time equivalent employee in this State; and
2. Is licensed to transact business in this State.
Sec. 5. Nevada resident means a bona fide resident as that term is defined in NRS 361.015.
Sec. 6. Producer means a natural person or business that finances, arranges to finance or supervises the production of a qualified production.
Sec. 7. 1. Qualified production includes preproduction, production and postproduction and means:
(a) A theatrical, direct-to-video or other media motion picture.
(b) A made-for-television motion picture.
(c) Visual effects or digital animation sequences.
(d) A television pilot program.
(e) Interstitial television programming.
(f) A television, Internet or other media series, including, without limitation, a comedy, drama, miniseries, soap opera, talk show or telenovela.
κ2013 Statutes of Nevada, Page 3091 (CHAPTER 491, SB 165)κ
(g) A national or regional commercial or series of commercials.
(h) An infomercial.
(i) An interstitial advertisement.
(j) A music video.
(k) A documentary film or series.
(l) Other visual media productions, including, without limitation, video games and mobile applications.
2. The term does not include:
(a) A news, weather or current events program.
(b) A production that is primarily produced for industrial, corporate or institutional use.
(c) A telethon or any production that solicits money, other than a production which is produced for national distribution.
(d) A political advertisement.
(e) A sporting event.
(f) A gala or awards show.
(g) Any other type of production that is excluded by regulations adopted by the Office of Economic Development pursuant to section 8 of this act.
Sec. 8. 1. A producer of a qualified production that is produced in this State in whole or in part may, on or before December 31, 2017, apply to the Office of Economic Development for a certificate of eligibility for transferable tax credits for any qualified expenditures and production costs identified in section 9 of this act. The transferable tax credits may be applied to:
(a) Any tax imposed by chapters 363A and 363B of NRS;
(b) The gaming license fees imposed by the provisions of NRS 463.370;
(c) Any tax imposed pursuant to chapter 680B of NRS; or
(d) Any combination of the fees and taxes described in paragraphs (a), (b) and (c).
2. The Office shall approve an application for a certificate of eligibility for transferable tax credits if the Office finds that the producer of the qualified production qualifies for the transferable tax credits pursuant to subsection 3 and shall calculate the estimated amount of the transferable tax credits pursuant to sections 10, 11 and 12 of this act.
3. To be eligible for transferable tax credits pursuant to this section, a producer must:
(a) Submit an application that meets the requirements of subsection 4;
(b) Provide proof satisfactory to the Office that the qualified production is in the economic interest of the State;
(c) Provide proof satisfactory to the Office that 50 percent or more of the funding for the qualified production has been placed in an escrow account or trust account for the benefit of the qualified production;
(d) Provide proof satisfactory to the Office that at least 60 percent of the total qualified expenditures and production costs for the qualified production, including preproduction and postproduction, will be incurred in this State;
(e) At the completion of the qualified production, provide the Office with an audit of the qualified production that includes an itemized report of qualified expenditures and production costs which:
(1) Shows that the qualified production incurred qualified expenditures and production costs in this State of $500,000 or more; and
κ2013 Statutes of Nevada, Page 3092 (CHAPTER 491, SB 165)κ
(2) Is certified by an independent certified public accountant in this State who is approved by the Office;
(f) Pay the cost of the audit required by paragraph (e); and
(g) Meet any other requirements prescribed by regulation pursuant to this section.
4. An application submitted pursuant to subsection 3 must contain:
(a) A script, storyboard or synopsis of the qualified production;
(b) The names of the producer, director and proposed cast;
(c) An estimated timeline to complete the qualified production;
(d) A detailed budget for the entire production, including projected expenses incurred outside of Nevada;
(e) Details regarding the financing of the project, including, without limitation, any information relating to a binding financing commitment, loan application, commitment letter or investment letter;
(f) An insurance certificate, binder or quote for general liability insurance of $1,000,000 or more;
(g) The business address of the producer, which must be an address in this State;
(h) Proof that the qualified production meets any applicable requirements relating to workers compensation insurance;
(i) Proof that the producer has secured all licenses required to do business in each location in this State at which the qualified production will be produced; and
(j) Any other information required by regulations adopted by the Office pursuant to subsection 8.
5. If the Office approves an application for a certificate of eligibility for transferable tax credits pursuant to this section, the Office shall immediately forward a copy of the certificate of eligibility which identifies the estimated amount of the tax credits available pursuant to section 10 of this act to:
(a) The applicant;
(b) The Department; and
(c) The State Gaming Control Board.
6. Within 14 business days after receipt of an audit provided by the producer pursuant to paragraph (e) of subsection 3 and any other accountings or other information required by the Office, the Office shall determine whether to certify the audit and make a final determination of whether a certificate of transferable tax credits will be issued. If the Office certifies the audit and determines that all other requirements for the transferable tax credits have been met, the Office shall notify the producer that the transferable tax credits will be issued. Within 30 days after the receipt of the notice, the producer shall make an irrevocable declaration of the amount of transferable tax credits that will be applied to each fee or tax set forth in subsection 1, thereby accounting for all of the credits which will be issued. Upon receipt of the declaration, the Office shall issue to the eligible producer a certificate of transferable tax credits in the amount approved by the Office for the fees or taxes included in the declaration of the producer. The producer shall notify the Office upon transferring any of the transferable tax credits. The Office shall notify the Department and the State Gaming Control Board of all transferable tax credits issued, segregated by each fee or tax set forth in subsection 1, and the amount of any transferable tax credits transferred.
κ2013 Statutes of Nevada, Page 3093 (CHAPTER 491, SB 165)κ
7. An applicant for transferable tax credits pursuant to this section shall, upon the request of the Executive Director of the Office, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 3.
8. The Office:
(a) Shall adopt regulations prescribing:
(1) Any additional requirements to receive transferable tax credits;
(2) Any additional qualified expenditures or production costs that may serve as the basis for transferable tax credits pursuant to section 9 of this act;
(3) Any additional information that must be included with an application pursuant to subsection 4;
(4) The application review process;
(5) Any type of qualified production which, due to obscene or sexually explicit material, is not eligible for transferable tax credits; and
(6) The requirements for notice pursuant to section 14 of this act; and
(b) May adopt any other regulations that are necessary to carry out the provisions of sections 2 to 17, inclusive, of this act.
9. The Nevada Tax Commission and the Nevada Gaming Commission:
(a) Shall adopt regulations prescribing the manner in which transferable tax credits will be administered.
(b) May adopt any other regulations that are necessary to carry out the provisions of sections 2 to 17, inclusive, of this act.
Sec. 9. 1. Qualified expenditures and production costs that may serve as a basis for transferable tax credits issued pursuant to section 8 of this act must be purchases of tangible personal property or services from a Nevada business on or after the date on which an applicant submits an application for the transferable tax credits, must be customary and reasonable and must relate to:
(a) Set construction and operation;
(b) Wardrobe and makeup;
(c) Photography, sound and lighting;
(d) Filming, film processing and film editing;
(e) The rental or leasing of facilities, equipment and vehicles;
(f) Food and lodging;
(g) Editing, sound mixing, special effects, visual effects and other postproduction services;
(h) The payroll for Nevada residents or other personnel who provided services in this State;
(i) Payment for goods or services provided by a Nevada business;
(j) The design, construction, improvement or repair of property, infrastructure, equipment or a production or postproduction facility;
(k) State and local government taxes to the extent not included as part of another cost reported pursuant to this section;
(l) Fees paid to a producer who is a Nevada resident; and
(m) Any other transaction, service or activity authorized in regulations adopted by the Office of Economic Development pursuant to section 8 of this act.
κ2013 Statutes of Nevada, Page 3094 (CHAPTER 491, SB 165)κ
2. Expenditures and costs:
(a) Related to:
(1) The acquisition, transfer or use of transferable tax credits;
(2) Marketing and distribution;
(3) Financing, depreciation and amortization;
(4) The payment of any profits as a result of the qualified production;
(5) The payment for the cost of the audit required by section 8 of this act; and
(6) The payment for any goods or services that are not directly attributable to the qualified production;
(b) For which reimbursement is received, or for which reimbursement is reasonably expected to be received;
(c) Which provide a pass-through benefit to a person who is not a Nevada resident; or
(d) Which have been previously claimed as a basis for transferable tax credits,
Κ are not eligible to serve as a basis for transferable tax credits issued pursuant to section 8 of this act.
Sec. 10. 1. Except as otherwise provided in subsection 3 and sections 11 and 12 of this act, the base amount of transferable tax credits issued to an eligible producer pursuant to section 8 of this act must equal 15 percent of the cumulative qualified expenditures and production costs.
2. Except as otherwise provided in subsection 3 and section 12 of this act, in addition to the base amount calculated pursuant to subsection 1, transferable tax credits issued to an eligible producer pursuant to section 8 of this act must include credits in an amount equal to:
(a) An additional 2 percent of the cumulative qualified expenditures and production costs if more than 50 percent of the below-the-line personnel of the qualified production are Nevada residents; and
(b) An additional 2 percent of the cumulative qualified expenditures and production costs if more than 50 percent of the filming days of the qualified production occurred in a county in this State in which, in each of the 2 years immediately preceding the date of application, qualified productions incurred less than $10,000,000 of direct expenditures.
3. The Office may:
(a) Reduce the cumulative amount of transferable tax credits that are calculated pursuant to this section by an amount equal to any damages incurred by the State or any political subdivision of the State as a result of a qualified production that is produced in this State; or
(b) Withhold the transferable tax credits, in whole or in part, until any pending legal action in this State against a producer or involving a qualified production is resolved.
Sec. 11. 1. In calculating the base amount of transferable tax credits pursuant to subsection 1 of section 10 of this act:
(a) Wages and salaries, including fringe benefits, paid to above-the-line personnel who are not Nevada residents must be included in the calculation at a rate of 12 percent.
(b) Wages and salaries, including fringe benefits, paid to below-the-line personnel who are not Nevada residents:
κ2013 Statutes of Nevada, Page 3095 (CHAPTER 491, SB 165)κ
(1) For the period beginning January 1, 2014, and ending December 31, 2015, must be included in the calculation at a rate of 12 percent.
(2) For the period beginning January 1, 2016, and ending December 31, 2016, must be included in the calculation at a rate of 10 percent.
(3) For the period beginning January 1, 2017, and ending December 31, 2017, must be included in the calculation at a rate of 8 percent.
2. As used in this section, fringe benefits means employee expenses paid by an employer for the use of a persons services, including, without limitation, payments made to a governmental entity, union dues, health insurance premiums, payments to a pension plan and payments for workers compensation insurance.
Sec. 12. 1. Except as otherwise provided in this subsection, the Office of Economic Development shall not approve any application for transferable tax credits:
(a) If approval of the application would cause the total amount of transferable tax credits approved pursuant to section 8 of this act for the current fiscal year to exceed $20,000,000. If the Office does not approve $20,000,000 of transferable tax credits during any fiscal year, the remaining amount of transferable tax credits must be carried forward and made available for approval during the immediately following 2 fiscal years.
(b) Received on or after January 1, 2018.
2. The transferable tax credits issued to any producer for any qualified production pursuant to section 8 of this act:
(a) Must not exceed a total amount of $6,000,000; and
(b) Expire 4 years after the date on which the transferable tax credits are issued to the producer.
3. For the purposes of calculating qualified expenditures and production costs:
(a) The compensation payable to all producers who are Nevada residents must not exceed 10 percent of the portion of the total budget of the qualified production that was expended in or attributable to any expenses incurred in this State.
(b) The compensation payable to all producers who are not Nevada residents must not exceed 5 percent of the portion of the total budget of the qualified production that was expended in or attributable to any expenses incurred in this State.
(c) The compensation payable to any employee, independent contractor or any other person paid a wage or salary as compensation for providing labor services on the production of the qualified production must not exceed $750,000.
Sec. 13. (Deleted by amendment.)
Sec. 14. 1. An application for a certificate of eligibility for transferable tax credits submitted pursuant to section 8 of this act must be submitted not earlier than 90 days before the date of commencement of principal photography of the qualified production, if any. The Office of Economic Development shall prescribe by regulation the procedure for determining the date of commencement of qualified productions that do not include photography for the purposes of this section.
κ2013 Statutes of Nevada, Page 3096 (CHAPTER 491, SB 165)κ
2. If the Office of Economic Development receives an application for transferable tax credits pursuant to section 8 of this act, the Office shall, not later than 30 days before a hearing on the application, provide notice of the hearing to:
(a) The applicant;
(b) The Department; and
(c) The State Gaming Control Board.
3. The notice required by this section must set forth the date, time and location of the hearing on the application. The date of the hearing must be not later than 60 days after the Office receives the completed application.
4. The Office shall issue a decision on the application not later than 30 days after the conclusion of the hearing on the application.
5. The producer of a qualified production shall submit all accountings and other required information to the Office and the Department not later than 30 days after completion of the qualified production. Production of the qualified production must be completed within 1 year after the date of commencement of principal photography. If the Office or the Department determines that information submitted pursuant to this subsection is incomplete, the producer shall, not later than 30 days after receiving notice that the information is incomplete, provide to the Office or the Department, as applicable, all additional information required by the Office or the Department.
6. The Office shall give priority to the approval and processing of an application submitted by the producer of a qualified production that promotes tourism in the State of Nevada.
Sec. 15. (Deleted by amendment.)
Sec. 15.5. 1. For the purpose of encouraging local economic development, the governing body of a city or county may, on or before December 31, 2017, grant to a producer of a qualified production for which a certificate of eligibility for transferable tax credits has been approved pursuant to section 8 of this act an abatement of all or any percentage of the amount of any permitting fee or licensing fee which the local government is authorized to impose or charge pursuant to chapter 244 or 268 of NRS.
2. Before granting any abatement pursuant to this section, the governing body of the city or county must provide by ordinance for a pilot project for granting abatements to producers of qualified productions for which a certificate of eligibility for transferable tax credits has been approved pursuant to section 8 of this act.
3. A governing body of a city or county that grants an abatement pursuant to this section shall, on or before October 1 of each year in which such an abatement is granted, prepare and submit to the Governor and to the Director of the Legislative Counsel Bureau for transmittal to the Legislature an annual report which includes, for the immediately preceding fiscal year:
(a) The number of qualified productions produced within the jurisdiction of the governing body for which a certificate of eligibility for transferable tax credits was approved;
(b) The number and dollar value of the abatements granted by the governing body pursuant to this section;
κ2013 Statutes of Nevada, Page 3097 (CHAPTER 491, SB 165)κ
(c) The number of persons within the jurisdiction of the governing body that were employed by each qualified production and the amount of wages paid to those persons; and
(d) The period during which each qualified production was produced within the jurisdiction of the governing body.
Sec. 16. 1. A producer that is found to have submitted any false statement, representation or certification in any document submitted for the purpose of obtaining transferable tax credits or who otherwise becomes ineligible for transferable tax credits after receiving the transferable tax credits pursuant to section 8 of this act shall repay to the Department or the State Gaming Control Board, as applicable, any portion of the transferable tax credits to which the producer is not entitled.
2. Transferable tax credits purchased in good faith are not subject to forfeiture unless the transferee submitted fraudulent information in connection with the purchase.
Sec. 17. The Office of Economic Development shall, on or before October 1 of each year, prepare and submit to the Governor and to the Director of the Legislative Counsel Bureau for transmittal to the Legislature an annual report which includes, for the immediately preceding fiscal year:
1. The number of applications submitted for transferable tax credits;
2. The number of qualified productions for which transferable tax credits were approved;
3. The amount of transferable tax credits approved;
4. The amount of transferable tax credits used;
5. The amount of transferable tax credits transferred;
6. The amount of transferable tax credits taken against each allowable fee or tax, including the actual amount used and outstanding, in total and for each qualified production;
7. The total amount of the qualified expenses and production costs incurred by each qualified production and the portion of those expenses and costs that were incurred in Nevada;
8. The number of persons in Nevada employed by each qualified production and the amount of wages paid to those persons; and
9. The period during which each qualified production was in Nevada and employed persons in Nevada.
Sec. 18. The Office of Economic Development, the Nevada Gaming Commission and the Nevada Tax Commission shall each adopt such regulations as are respectively required to implement the provisions of sections 2 to 17, inclusive, of this act on or before December 31, 2013.
Sec. 19. 1. This act becomes effective 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 on January 1, 2014, for all other purposes.
2. This act expires by limitation on June 30, 2023.
________
κ2013 Statutes of Nevada, Page 3098κ
Senate Bill No. 293Senator Smith
CHAPTER 492
[Approved: June 11, 2013]
AN ACT making an appropriation to the Trust Account for the Education of Dependent Children; and providing other matters properly relating thereto.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. There is hereby appropriated from the State General Fund to the Trust Account for the Education of Dependent Children created by NRS 396.545:
For the Fiscal Year 2013-2014................................................... $20,000
For the Fiscal Year 2014-2015................................................... $20,000
Sec. 2. This act becomes effective on July 1, 2013.
________
Senate Bill No. 322Committee on Transportation
CHAPTER 493
[Approved: June 11, 2013]
AN ACT relating to the Department of Transportation; revising the composition of the Board of Directors of the Department; revising provisions relating to the appointment of persons to the Board; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for a seven-member Board of Directors that administers the Department of Transportation. (NRS 408.106) The Board includes the Governor, the Lieutenant Governor, the Attorney General and the State Controller, all of whom serve ex officio, and three members who are appointed by the Governor, who must be residents of the State of Nevada and who must each reside in a different highway district. This bill: (1) removes from the Board the Attorney General; (2) adds an additional member who must be appointed by the Governor; and (3) requires that the members appointed by the Governor reside in certain highway districts.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 408.106 is hereby amended to read as follows:
408.106 1. There is hereby created a Department of Transportation, administered by a seven-member Board of Directors consisting of the Governor, the Lieutenant Governor, [the Attorney General] and the State Controller, who serve ex officio, and [three] four members who are appointed by the Governor.
κ2013 Statutes of Nevada, Page 3099 (CHAPTER 493, SB 322)κ
Governor, the Lieutenant Governor, [the Attorney General] and the State Controller, who serve ex officio, and [three] four members who are appointed by the Governor. If one of the [four] three constitutional offices is vacant, the Secretary of State shall serve ex officio on the Board until the vacancy is filled.
2. The Governor shall appoint as members of the Board [three] four persons who are residents of Nevada, informed on and interested in the construction and maintenance of highways and other matters relating to transportation. [Each of the three] The members so appointed must [reside in a different highway district and] be residents of Nevada as follows:
(a) Two members who must reside in a highway district that includes a county whose population is 700,000 or more;
(b) One member who must reside in a highway district that includes a county whose population is 100,000 or more but less than 700,000; and
(c) One member who must reside in a highway district that does not include a county whose population is 100,000 or more.
3. All the members appointed pursuant to subsection 2 must be informed on and interested in the construction and maintenance of highways and other matters relating to transportation, and must possess at least one of the following qualifications:
(a) Knowledge of engineering evidenced by the possession of a bachelor of science degree in civil or structural engineering and licensure in this State as a professional engineer.
(b) Demonstrated expertise in financial matters and business administration.
(c) Demonstrated expertise in the business of construction evidenced by the possession of a license as a general contractor and experience as a principal officer of a firm licensed in this State.
Κ The Governor shall not appoint to the Board any person who is currently employed in the field of or has a substantial financial interest in the construction or maintenance of highways in this State.
[3.] 4. The Governor shall serve as the Chair of the Board and the members of the Board shall elect annually a Vice Chair.
[4.] 5. Each member of the Board who is not a public officer is entitled to receive as compensation $80 for each day or portion of a day during which the member attends a meeting of the Board or is otherwise engaged in the business of the Board plus the per diem allowance and travel expenses provided for state officers and employees generally.
[5.] 6. After the initial terms, the appointed members of the Board shall serve terms of 4 years.
7. As used in this section, highway district means a portion of this State designated by the Board as a highway district for the purposes of carrying out the duties of the Board.
Secs. 2 and 3. (Deleted by amendment.)
Sec. 4. This act becomes effective on January 1, 2014.
________
κ2013 Statutes of Nevada, Page 3100κ
Senate Bill No. 391Senators Cegavske, Goicoechea, Hammond, Hutchison, Roberson; Gustavson, Hardy and Settelmeyer
CHAPTER 494
[Approved: June 11, 2013]
AN ACT relating to education; directing the Legislative Commission to appoint a committee to conduct an interim study concerning the governance structure of and funding methods for community colleges in this State; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for the administration of community colleges by the Board of Regents of the University of Nevada within the Nevada System of Higher Education. (NRS 396.020) Section 2 of this bill directs the Legislative Commission to appoint a committee to conduct an interim study concerning the governance structure of and funding methods for community colleges in this State. Section 3 of this bill requires the committee to appoint two or more subcommittees, including the Subcommittee on Governance and Funding and the Subcommittee on Academics and Workforce Alignment, and to develop the mission and duties of each subcommittee. Section 3.5 of this bill requires the Legislative Counsel Bureau and the Nevada System of Higher Education to provide administrative and technical assistance to the committee and its subcommittees at the request of the Chair of the committee.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Legislature hereby finds and declares that:
1. The Nevada System of Higher Education, which is governed by the Board of Regents of the University of Nevada, encompasses several different types of institutions of higher education, including, without limitation, community colleges;
2. Community colleges are a key component of the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development;
3. Certain community colleges have a regional presence for vast areas of rural Nevada;
4. Recent economic problems in this State highlight the need for community colleges to be responsive to the students, business communities and regions of this State that they serve; and
5. It is important to determine whether a new method of governing and funding community colleges in this State is necessary to improve and advance the purpose of the States community colleges.
Sec. 2. 1. The Legislative Commission shall appoint a committee to conduct an interim study concerning the governance structure of and funding methods for community colleges in this State.
2. The committee must be composed of six Legislators as follows:
κ2013 Statutes of Nevada, Page 3101 (CHAPTER 494, SB 391)κ
(a) Two members appointed by the Majority Leader of the Senate;
(b) Two members appointed by the Speaker of the Assembly;
(c) One member appointed by the Minority Leader of the Senate; and
(d) One member appointed by the Minority Leader of the Assembly.
3. The Majority Leader of the Senate shall appoint a Chair and Vice Chair of the committee.
4. The committee shall consult with and solicit input from persons and organizations with expertise in matters relevant to the governance structures of and funding methods for community colleges in this State.
5. The committee shall submit a report of its findings, including, without limitation, any proposed changes to the governance structure of or funding methods for community colleges in this State and any recommendations for legislation, to the 78th Session of the Nevada Legislature.
Sec. 3. In studying the governance structures of and funding methods for community colleges in this State, the committee appointed pursuant to section 2 shall:
1. Appoint two or more subcommittees, which must include:
(a) The Subcommittee on Governance and Funding, which consists of:
(1) Three members who are members of the committee appointed pursuant to section 2 of this act, appointed by the Chair of the committee;
(2) One member who is a member of the Board of Regents of the University of Nevada, appointed by the Chair of the Board;
(3) One member who is a representative of K-12 education, appointed by the Superintendent of Public Instruction;
(4) Two members who are representatives of local governments, appointed by the Nevada Association of Counties, or its successor organization;
(5) One member who is a representative of local governments, appointed by the Nevada League of Cities, or its successor organization; and
(6) Any other members appointed by the Chair of the committee.
(b) The Subcommittee on Academics and Workforce Alignment, which consists of:
(1) Three members who are members of the committee appointed pursuant to section 2 of this act, appointed by the Chair of the committee;
(2) One member who is a member of the Board of Regents of the University of Nevada, appointed by the Chair of the Board;
(3) Three members who are representatives of the business and economic development communities of this State, one of whom must be a representative of northern Nevada, one of whom must be a representative of southern Nevada and one of whom must be a representative of rural Nevada, appointed by the Executive Director of the Office of Economic Development;
(4) One member who is a representative of the Department of Employment, Training and Rehabilitation, appointed by the Director of the Department; and
(5) Any other members appointed by the Chair of the committee.
2. Develop the mission and duties of each subcommittee appointed pursuant to subsection 1, which must include, without limitation:
(a) Reviewing national best practices of governance of and funding methods for community colleges;
κ2013 Statutes of Nevada, Page 3102 (CHAPTER 494, SB 391)κ
(b) Examining effective relationships among local school districts, workforce development and community colleges and making recommendations concerning how this State can strengthen such relationships to improve student achievement;
(c) Examining effective relationships between business and industry and community colleges and making recommendations concerning how this State can strengthen such relationships to better prepare students for entry into the workforce;
(d) Reviewing the mission of each community college in this State, which must include a determination of whether, over the 10-year period immediately preceding the review, the mission of the community college has changed and whether changes to the academic programs of the community college have enhanced or undermined that mission; and
(e) Determining whether it is advisable to transfer the administration of community colleges from the Board of Regents of the University of Nevada to another governmental entity and:
(1) If such a transfer is determined to be advisable, determining the best methods of accomplishing the transfer; and
(2) If such a transfer is determined not to be advisable, determining whether there are other options available that would improve the governance structure of and funding methods for community colleges.
Sec. 3.5. The Legislative Counsel Bureau and the Nevada System of Higher Education shall provide administrative and technical assistance to the committee appointed pursuant to section 2 of this act and its subcommittees as requested by the Chair of the committee.
Sec. 4. This act becomes effective on July 1, 2013.
________
κ2013 Statutes of Nevada, Page 3103κ
Senate Bill No. 400Senator Segerblom
CHAPTER 495
[Approved: June 11, 2013]
AN ACT relating to taxes; contingently revising provisions governing the taxation of mines, mining claims and the extraction of minerals; exempting certain property from the property tax; providing that the taxable value of property must exclude the value of any mineral deposit in its natural state attached to the land; revising provisions relating to the taxation of certain uses of property otherwise exempted from taxation; imposing an excise tax upon mineral extraction and mineral royalties and providing for the administration and collection of the tax; providing penalties; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under the Nevada Constitution, the Legislature must impose a tax upon the net proceeds of all minerals extracted in this State at a rate not to exceed 5 percent of the net proceeds, and the net proceeds are not subject to any other tax. The Nevada Constitution also exempts mines and mining claims from the property tax. (Nev. Const. Art. 10, §§ 1(1), 5)
During the 76th Session of the Legislature in 2011, the Legislature passed Senate Joint Resolution No. 15 (S.J.R. 15), which proposes to amend the Nevada Constitution to remove these constitutional limitations on the Legislatures power to tax mines, mining claims and mineral extraction. (File Number 44, Statutes of Nevada 2011, p. 3871) As required for such constitutional amendments, the 77th Session of the Legislature in 2013 also passed the constitutional amendments proposed by S.J.R. 15. However, the constitutional amendments do not become a part of the Constitution unless S.J.R. 15 is approved and ratified by the voters at the general election on November 4, 2014. (Nev. Const. Art. 16, § 1)
As a fundamental rule of state constitutional law, the Legislature may pass any law which the Constitution does not clearly prohibit. (Koscot Interplanetary, Inc. v. Draney, 90 Nev. 450, 456 (1974); City of Las Vegas v. Ackerman, 85 Nev. 493, 501-02 (1969)) Therefore, except when expressly limited by the Constitution, the Legislature has unrestricted power to tax and regulate all activities, trades and businesses. (Matthews v. State ex rel. Nev. Tax Commn, 83 Nev. 266, 268 (1967); Ex parte Dixon, 43 Nev. 196, 205-07 (1919); Ex parte Robinson, 12 Nev. 263, 268-69 (1877); Gibson v. Mason, 5 Nev. 283, 292-93 (1869)) If S.J.R. 15 becomes effective, it will remove long-standing constitutional limitations on the Legislatures power to tax mines, mining claims and mineral extraction, and the Legislature would be restored to its full unrestricted power to impose an excise tax upon mining operations for the privilege of engaging in mineral extraction in Nevada.
This bill amends existing law governing the taxation of mines, mining claims and mineral extraction, but the amendments do not become effective unless the voters approve and ratify S.J.R. 15. In particular, section 50 of this bill makes such amendments effective on November 25, 2014, the day on which S.J.R. 15 will become effective if it is declared to be approved and ratified by the voters according to the official canvass of the election returns which will be held on that date under existing law. (Nev. Const. Art. 5, § 4; NRS 293.395; Torvinen v. Rollins, 93 Nev. 92, 94 (1977)) If this bill becomes effective, it makes various changes to the property tax and the existing tax upon minerals and mineral royalties.
Sections 10-32 of this bill revise the existing tax upon minerals and royalties and designate it as an excise tax upon mineral extraction and royalties. (Chapter 362 of NRS) An excise tax is a tax imposed for the privilege of carrying on a business or engaging in an activity, and an excise tax is not an ad valorem or property tax because an excise tax is based on the privilege of using property, rather than the value and ownership of the property.
κ2013 Statutes of Nevada, Page 3104 (CHAPTER 495, SB 400)κ
engaging in an activity, and an excise tax is not an ad valorem or property tax because an excise tax is based on the privilege of using property, rather than the value and ownership of the property. (State, Gaming Commn v. Southwest Sec., 108 Nev. 379, 383-84 (1992); 71 Am. Jur. 2d State and Local Taxation § 23 (2012)) Because an excise tax is not an ad valorem or property tax, an excise tax is not subject to the provisions of the Nevada Constitution that require a uniform and equal rate of assessment and taxation for ad valorem or property taxes. (Nev. Const. Art. 10, § 1(1); Ex parte Dixon, 43 Nev. 196, 204-05 (1919); Ex parte Cohn, 13 Nev. 424, 426-27 (1878); Ex parte Robinson, 12 Nev. 263, 268-71 (1877)) Therefore, an excise tax may have graduated tax rates based on the type of business or activity being conducted or the amount of gross and net revenue generated by the business or activity, and such differing tax rates do not violate the Constitution. (Ex parte Dixon, 43 Nev. 196, 204-05 (1919); Ex parte Cohn, 13 Nev. 424, 426-27 (1878)) In the context of mining operations, an excise tax is typically calculated based on the type of mineral being extracted and the gross yield and net proceeds generated by the mining operation. (Idaho Gold Dredging Co. v. Balderston, 78 P.2d 105 (Idaho 1938))
Section 12 of this bill provides that for the privilege of engaging in mineral extraction in the State of Nevada, there is imposed an excise tax upon mineral extraction by each extractive operation based on the Department of Taxations determination and certification of the gross yield and net proceeds from the mineral extraction. Section 12 also provides that the excise tax upon mineral extraction is not an ad valorem or property tax upon the value of the mineral extracted. (NRS 362.100) Sections 12-32 of this bill maintain, with certain technical revisions, the methods, standards and procedures used by the Department of Taxation to determine and certify the gross yield and net proceeds and to impose and collect the excise tax upon mineral extraction and royalties. (NRS 362.100-362.240)
With certain exceptions, existing law imposes a graduated tax rate upon the net proceeds of all minerals extracted, with a minimum rate of 2 percent and a maximum rate of 5 percent. Existing law also imposes a tax rate upon mineral royalties of 5 percent. (NRS 362.140) A portion of the revenue generated by the existing tax upon minerals and royalties is appropriated to each local government or other local taxing entity in an amount equal to the rate of tax ad valorem for local purposes in that jurisdiction multiplied by the net proceeds extracted from that jurisdiction, plus a pro rata share of any penalties and interest collected by the Department of Taxation for any late payment of the tax. (NRS 362.170)
Sections 22, 25 and 26 preserve, without change, the amounts appropriated to each local government or other local taxing entity from the revenue generated by the excise tax upon mineral extraction and royalties. (NRS 362.140, 362.170) In addition, section 22 preserves, without change, the existing tax rates applied to royalties and each extractive operation. (NRS 362.140) Section 21 provides that any person who challenges the excise tax may bring an appeal to the Nevada Tax Commission, but the person must timely pay the excise tax under protest while the appeal is pending. (NRS 362.135)
Under existing law, extracted minerals are a type of personal property. (City of Virginia v. Chollar-Potosi Gold & Silver Mining Co., 2 Nev. 86, 91 (1866)) The mineral royalties paid by each extractive operation are also a type of personal property. (Atty Gen. Op. 1901-11 (Dec. 24, 1901)) Under the Nevada Constitution, the Legislature may exempt personal property from the property tax. (Nev. Const. Art. 10, § 1(6))
Section 2.5 of this bill exempts from the property tax: (1) extracted minerals if the person who engaged in the mineral extraction is subject to the excise tax upon mineral extraction, but only when the extracted minerals are in the possession of the person who engaged in the mineral extraction; and (2) the royalties received from mineral extraction if the person who received the royalties is subject to the excise tax upon royalties. Existing law governing the property tax excepts from the definition of personal property any gold-bearing and silver-bearing ores, quartz or minerals from which gold or silver is extracted. (NRS 361.030) Section 3 of this bill removes this exception because such extracted minerals are exempted from the property tax under section 2.5.
κ2013 Statutes of Nevada, Page 3105 (CHAPTER 495, SB 400)κ
Under the Nevada Constitution, the Legislature may exempt from the property tax any property that is used to encourage the conservation of energy or the substitution of other sources for fossil sources of energy. (Nev. Const. Art. 10, § 1(8)) Section 2.7 of this bill enacts such an exemption for real property used in an extractive operation extracting geothermal resources. However, the exemption does not extend to improvements and other types of property used in connection with the extractive operation which are currently subject to the property tax under existing law. (NRS 362.100; Gold Hill v. Caledonia Silver Mining Co., 10 F. Cas. 550, 550-52 (C.C.D. Nev. 1879))
Existing law provides that if real property which is exempt from the property tax is leased, loaned or otherwise made available and used for certain purposes, such use is subject to the property tax. However, existing law contains certain exceptions. (NRS 361.157) Section 3.5 of this bill adds to those exceptions, and provides that the possession or use of exempt property as a mining claim does not subject the mining claim to the property tax.
Under the Nevada Constitution, the Legislature must enact such regulations as will secure a just valuation for taxation of all property subject to the property tax, and the Legislature may prescribe how certain natural components of the land must be valued in determining the taxable value of property. (Nev. Const. Art. 10, § 1(1)) Section 4 of this bill provides that in determining the taxable value of property, the value of any mineral deposit in its natural state attached to the land must be excluded from the computation of the taxable value of the property. (NRS 361.227)
Sections 1.5, 2, 7-9 and 33-48 of this bill make conforming changes to existing law that are necessary because of the enactment of the excise tax upon mineral extraction and royalties and because of the repeal of the constitutional provisions governing the taxation of mines, mining claims and mineral extraction proposed by S.J.R. 15. However, those sections maintain, without change, how the State and local governments must treat the net proceeds from mineral extraction and royalties in making various tax, revenue and spending calculations under existing law.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. 1. The Legislature hereby finds and declares that:
(a) In 2011, pursuant to Section 1 of Article 16 of the Nevada Constitution, the 76th Session of the Legislature proposed, agreed to and passed Senate Joint Resolution No. 15, which was published as file number 44, Statutes of Nevada 2011, at page 3871;
(b) Senate Joint Resolution No. 15 proposes to amend the Nevada Constitution to remove constitutional limitations on the Legislatures power to tax mines, mining claims and the extraction of minerals in Sections 1 and 5 of Article 10 of the Nevada Constitution;
(c) In 2013, the 77th Session of the Legislature also agreed to and passed the constitutional amendments proposed by Senate Joint Resolution No. 15 pursuant to Section 1 of Article 16 of the Nevada Constitution;
(d) At the general election on November 4, 2014, the constitutional amendments proposed by Senate Joint Resolution No. 15 will be submitted to the voters for their approval and ratification or their disapproval and rejection; and
(e) If the voters approve and ratify the constitutional amendments proposed by Senate Joint Resolution No. 15, the Legislature will be restored to its full power to determine by law and as a matter of public policy:
κ2013 Statutes of Nevada, Page 3106 (CHAPTER 495, SB 400)κ
(1) The most appropriate and effective method to tax mining operations extracting minerals from this State, which provide important economic benefits to Nevada but which extract vast quantities of Nevadas most valuable yet nonrenewable and finite mineral resources; and
(2) The most appropriate and effective approach to balance the economic benefits of mineral extraction with its various environmental and ecological impacts to best protect and benefit the publics health, safety and welfare and to provide the greatest opportunities for education, prosperity and success for the people of this State.
2. The Legislature hereby further finds and declares that:
(a) Pursuant to Sections 1 and 5 of Article 10 of the Nevada Constitution, the Legislature must impose a tax upon the net proceeds of all minerals extracted in this State at a rate not to exceed 5 percent of the net proceeds, and no other tax may be imposed upon a mineral or its proceeds until the identity of the proceeds as such is lost;
(b) In accordance with Sections 1 and 5 of Article 10 of the Nevada Constitution, the Legislature enacted the provisions of NRS 362.100 to 362.240, inclusive, as they existed before the effective date of this act, to impose a tax upon the net proceeds of all minerals extracted in this State at a rate not to exceed 5 percent of the net proceeds;
(c) If the voters approve and ratify the constitutional amendments proposed by Senate Joint Resolution No. 15, the Legislature will have the power to substitute and replace the provisions of NRS 362.100 to 362.240, inclusive, as they existed before the effective date of this act, with the provisions of this act which impose an excise tax upon mineral extraction by each mining operation for the privilege of engaging in mineral extraction in this State;
(d) Pursuant to Section 1 of Article 10 of the Nevada Constitution, the Legislature has the power to exempt personal property from the property tax;
(e) Personal property includes extracted minerals, which are measured by the gross yield and net proceeds from mineral extraction by each extractive operation, and it also includes the mineral royalties paid by each extractive operation; and
(f) As an exercise of the legislative authority of this State and as a matter of public policy, this act:
(1) To the extent provided in section 2.5 of this act, exempts from the property tax extracted minerals, which are measured by the gross yield and net proceeds from mineral extraction by each extractive operation, and the mineral royalties paid by each extractive operation;
(2) Substitutes and replaces the provisions of NRS 362.100 to 362.240, inclusive, as they existed before the effective date of this act, with the provisions of this act;
(3) Imposes, for the privilege of engaging in mineral extraction in this State, an excise tax upon mineral extraction by each extractive operation and upon the mineral royalties paid by each extractive operation at tax rates that are equal to the tax rates imposed by the provisions of NRS 362.100 to 362.240, inclusive, as they existed before the effective date of this act; and
(4) Does not impose an ad valorem or property tax upon the value of the mineral extracted or the gross yield or net proceeds from the mineral extraction by each extractive operation or the mineral royalties paid by each extractive operation.
3. The Legislature hereby further finds and declares that:
κ2013 Statutes of Nevada, Page 3107 (CHAPTER 495, SB 400)κ
(a) Pursuant to Section 1 of Article 10 of the Nevada Constitution, the Legislature has the power to exempt from taxation any property that is used to encourage the conservation of energy or the substitution of other sources for fossil sources of energy;
(b) When certain real property is used in an extractive operation extracting geothermal resources, the real property is being used to encourage the conservation of energy or the substitution of other sources for fossil sources of energy; and
(c) As an exercise of the legislative authority of this State and as a matter of public policy, this act exempts from the property tax certain real property that is used in an extractive operation extracting geothermal resources to the extent provided in section 2.7 of this act.
4. The Legislature hereby further finds and declares that:
(a) Pursuant to Section 1 of Article 10 of the Nevada Constitution, the Legislature has a duty to enact such regulations as will secure a just valuation for taxation of all property subject to the property tax, and the Legislature may prescribe how certain natural components of the land must be valued in determining the taxable value of property;
(b) When determining the taxable value of property, the potential existence, quantity, quality, extractability or profitability of any mineral deposit in its natural state attached to the land are all matters that are inherently uncertain, doubtful and speculative, and as a general rule, such matters are not reasonably, reliably or consistently knowable or discoverable until the minerals are extracted from the land;
(c) It would not secure a just valuation for taxation to include in the computation of the taxable value of the land any uncertain, doubtful and speculative estimates of the value of any mineral deposit in its natural state attached to the land because such estimates could not be reasonably, reliably or consistently applied in a uniform and equal manner to all lands in this State; and
(d) As an exercise of the legislative authority of this State and as a matter of public policy, this act provides that in determining the taxable value of any property subject to the property tax, the value of any mineral deposit in its natural state attached to the land must be excluded from the computation of the taxable value of the property.
Sec. 1.5. NRS 360.690 is hereby amended to read as follows:
360.690 1. Except as otherwise provided in NRS 360.730, the Executive Director shall estimate monthly the amount each local government, special district and enterprise district will receive from the Account pursuant to the provisions of this section.
2. The Executive Director shall establish a base monthly allocation for each local government, special district and enterprise district by dividing the amount determined pursuant to NRS 360.680 for each local government, special district and enterprise district by 12, and the State Treasurer shall, except as otherwise provided in subsections 3 to 8, inclusive, remit monthly that amount to each local government, special district and enterprise district.
3. If, after making the allocation to each enterprise district for the month, the Executive Director determines there is not sufficient money available in the countys subaccount in the Account to allocate to each local government and special district the base monthly allocation determined pursuant to subsection 2, he or she shall prorate the money in the countys subaccount and allocate to each local government and special district an amount equal to its proportionate percentage of the total amount of the base monthly allocations determined pursuant to subsection 2 for all local governments and special districts within the county.
κ2013 Statutes of Nevada, Page 3108 (CHAPTER 495, SB 400)κ
amount equal to its proportionate percentage of the total amount of the base monthly allocations determined pursuant to subsection 2 for all local governments and special districts within the county. The State Treasurer shall remit that amount to the local government or special district.
4. Except as otherwise provided in subsections 5 to 8, inclusive, if the Executive Director determines that there is money remaining in the countys subaccount in the Account after the base monthly allocation determined pursuant to subsection 2 has been allocated to each local government, special district and enterprise district, he or she shall immediately determine and allocate each:
(a) Local governments share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by the sum of the:
(I) Average percentage of change in the population of the local government over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9; and
(II) Average percentage of change in the assessed valuation of the taxable property in the local government, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each local government an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (b), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount; and
(b) Special districts share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by the average change in the assessed valuation of the taxable property in the special district, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each special district an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (a), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount.
Κ The State Treasurer shall remit the amount allocated to each local government or special district pursuant to this subsection.
κ2013 Statutes of Nevada, Page 3109 (CHAPTER 495, SB 400)κ
5. Except as otherwise provided in subsection 6 or 7, if the Executive Director determines that there is money remaining in the countys subaccount in the Account after the base monthly allocation determined pursuant to subsection 2 has been allocated to each local government, special district and enterprise district and that the average amount over the 5 fiscal years immediately preceding the year in which the allocation is made of the assessed valuation of taxable property which is attributable to the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, in the county is equal to at least $50,000,000 , or that the average percentage of change in population of the county over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9, is a negative figure, or that the average amount over the 5 fiscal years immediately preceding the year in which the allocation is made of the assessed valuation of taxable property which is attributable to the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, in the county is equal to at least $50,000,000 and the average percentage of change in population of the county over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9, is a negative figure, the Executive Director shall immediately determine and allocate each:
(a) Local governments share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the sum of the:
(I) Average percentage of change in the population of the local government over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9; and
(II) Average percentage of change in the assessed valuation of the taxable property in the local government, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each local government an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (b), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount; and
(b) Special districts share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the average change in the assessed valuation of the taxable property in the special district, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
κ2013 Statutes of Nevada, Page 3110 (CHAPTER 495, SB 400)κ
excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each special district an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (a), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount.
Κ The State Treasurer shall remit the amount allocated to each local government or special district pursuant to this subsection.
6. Except as otherwise provided in subsection 8, if the Executive Director determines that there is money remaining in the countys subaccount in the Account after the base monthly allocation determined pursuant to subsection 2 has been allocated to each local government, special district and enterprise district, that the sum of the average percentage of change in population and the average percentage of change in the assessed valuation of taxable property, as calculated pursuant to subparagraph (1) of paragraph (a) of subsection 4 for each of those local governments, is a negative figure, and that the average change in the assessed valuation of the taxable property in each of those special districts, as calculated pursuant to subparagraph (1) of paragraph (b) of subsection 4, is a negative figure, he or she shall immediately determine and allocate each:
(a) Local governments share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the sum of the:
(I) Average percentage of change in the population of the local government over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9; and
(II) Average percentage of change in the assessed valuation of the taxable property in the local government, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each local government an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (b), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount; and
(b) Special districts share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the average change in the assessed valuation of the taxable property in the special district, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
κ2013 Statutes of Nevada, Page 3111 (CHAPTER 495, SB 400)κ
proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each special district an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (a), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount.
Κ The State Treasurer shall remit the amount allocated to each local government or special district pursuant to this subsection.
7. Except as otherwise provided in subsection 8, if the Executive Director determines that there is money remaining in the countys subaccount in the Account after the base monthly allocation determined pursuant to subsection 2 has been allocated to each local government, special district and enterprise district, that the sum of the average percentage of change in population and the average percentage of change in the assessed valuation of taxable property, as calculated pursuant to subparagraph (1) of paragraph (a) of subsection 4 for each of those local governments, is a negative figure, and that the average change in the assessed valuation of the taxable property in any of those special districts, as calculated pursuant to subparagraph (1) of paragraph (b) of subsection 4, is a positive figure, he or she shall immediately determine and allocate each:
(a) Local governments share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the sum of the:
(I) Average percentage of change in the population of the local government over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9; and
(II) Average percentage of change in the assessed valuation of the taxable property in the local government, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each local government an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (b), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount; and
(b) Special districts share of the remaining money by:
(1) Multiplying one-twelfth of the amount allocated pursuant to NRS 360.680 by 1 plus the sum of the:
κ2013 Statutes of Nevada, Page 3112 (CHAPTER 495, SB 400)κ
(I) Average percentage of change in the population of the county over the 5 fiscal years immediately preceding the year in which the allocation is made, as certified by the Governor pursuant to NRS 360.285, except as otherwise provided in subsection 9; and
(II) Average change in the assessed valuation of the taxable property in the special district, including assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, over the year in which the allocation is made, as projected by the Department, and the 4 fiscal years immediately preceding the year in which the allocation is made; and
(2) Using the figure calculated pursuant to subparagraph (1) to calculate and allocate to each special district an amount equal to the proportion that the figure calculated pursuant to subparagraph (1) bears to the total amount of the figures calculated pursuant to subparagraph (1) of this paragraph and subparagraph (1) of paragraph (a), respectively, for the local governments and special districts located in the same county multiplied by the total amount available in the subaccount.
Κ The State Treasurer shall remit the amount allocated to each local government or special district pursuant to this subsection.
8. The Executive Director shall not allocate any amount to a local government or special district pursuant to subsection 4, 5, 6 or 7 unless the amount distributed and allocated to each of the local governments and special districts in the county in each preceding month of the fiscal year in which the allocation is to be made was at least equal to the base monthly allocation determined pursuant to subsection 2. If the amounts distributed to the local governments and special districts in the county for the preceding months of the fiscal year in which the allocation is to be made were less than the base monthly allocation determined pursuant to subsection 2 and the Executive Director determines there is money remaining in the countys subaccount in the Account after the distribution for the month has been made, he or she shall:
(a) Determine the amount by which the base monthly allocations determined pursuant to subsection 2 for each local government and special district in the county for the preceding months of the fiscal year in which the allocation is to be made exceeds the amounts actually received by the local governments and special districts in the county for the same period; and
(b) Compare the amount determined pursuant to paragraph (a) to the amount of money remaining in the countys subaccount in the Account to determine which amount is greater.
Κ If the Executive Director determines that the amount determined pursuant to paragraph (a) is greater, he or she shall allocate the money remaining in the countys subaccount in the Account pursuant to the provisions of subsection 3. If the Executive Director determines that the amount of money remaining in the countys subaccount in the Account is greater, he or she shall first allocate the money necessary for each local government and special district to receive the base monthly allocation determined pursuant to subsection 2 and the State Treasurer shall remit that money so allocated. The Executive Director shall allocate any additional money in the countys subaccount in the Account pursuant to the provisions of subsection 4, 5, 6 or 7, as appropriate.
κ2013 Statutes of Nevada, Page 3113 (CHAPTER 495, SB 400)κ
9. The percentage changes in population calculated pursuant to subsections 4 to 7, inclusive, must:
(a) Except as otherwise provided in paragraph (c), if the Bureau of the Census of the United States Department of Commerce issues population totals that conflict with the totals certified by the Governor pursuant to NRS 360.285, be an estimate of the change in population for the calendar year, based upon the population totals issued by the Bureau of the Census.
(b) If a new method of determining population is established pursuant to NRS 360.283, be adjusted in a manner that will result in the percentage change being based on population determined pursuant to the new method for both the fiscal year in which the allocation is made and the fiscal year immediately preceding the year in which the allocation is made.
(c) If a local government files a formal appeal with the Bureau of the Census concerning the population total of the local government issued by the Bureau of the Census, be calculated using the population total certified by the Governor pursuant to NRS 360.285 until the appeal is resolved. If additional money is allocated to the local government because the population total certified by the Governor is greater than the population total issued by the Bureau of the Census, the State Treasurer shall deposit that additional money in a separate interest-bearing account. Upon resolution of the appeal, if the population total finally determined pursuant to the appeal is:
(1) Equal to or less than the population total initially issued by the Bureau of the Census, the State Treasurer shall transfer the total amount in the separate interest-bearing account, including interest but excluding any administrative fees, to the Local Government Tax Distribution Account for allocation among the local governments in the county pursuant to subsection 4, 5, 6 or 7, as appropriate.
(2) Greater than the population total initially issued by the Bureau of the Census, the Executive Director shall calculate the amount that would have been allocated to the local government pursuant to subsection 4, 5, 6 or 7, as appropriate, if the population total finally determined pursuant to the appeal had been used and the State Treasurer shall remit to the local government an amount equal to the difference between the amount actually distributed and the amount calculated pursuant to this subparagraph or the total amount in the separate interest-bearing account, including interest but excluding any administrative fees, whichever is less.
10. On or before February 15 of each year, the Executive Director shall provide to each local government, special district and enterprise district a preliminary estimate of the revenue it will receive from the Account for that fiscal year.
11. On or before March 15 of each year, the Executive Director shall:
(a) Make an estimate of the receipts from each tax included in the Account on an accrual basis for the next fiscal year in accordance with generally accepted accounting principles, including an estimate for each county of the receipts from each tax included in the Account; and
(b) Provide to each local government, special district and enterprise district an estimate of the amount that local government, special district or enterprise district would receive based upon the estimate made pursuant to paragraph (a) and calculated pursuant to the provisions of this section.
12. A local government, special district or enterprise district may use the estimate provided by the Executive Director pursuant to subsection 11 in the preparation of its budget.
κ2013 Statutes of Nevada, Page 3114 (CHAPTER 495, SB 400)κ
Sec. 2. NRS 360.695 is hereby amended to read as follows:
360.695 1. If the population and assessed valuation of the taxable property, except any assessed valuation attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, within a local government or special district has decreased in each of the 3 fiscal years immediately preceding the current fiscal year, the Executive Director shall review the amount allocated to the local government or special district from the Account pursuant to NRS 360.680, to determine whether to adjust the allocation. The local government or special district may submit information to assist the Executive Director in making a determination. If the Executive Director determines that an adjustment to the allocation of the local government or special district is necessary, the Executive Director shall submit his or her findings on the matter to the Committee on Local Government Finance.
2. The Committee on Local Government Finance shall review the findings submitted by the Executive Director pursuant to subsection 1. If the Committee determines that an adjustment to the amount allocated to the local government or special district pursuant to NRS 360.680 is appropriate, the Committee shall submit a recommendation to the Nevada Tax Commission that sets forth the amount of the recommended adjustment. If the Committee determines that the adjustment is not appropriate, that decision is not subject to review by the Nevada Tax Commission.
3. The Nevada Tax Commission shall schedule a public hearing within 30 days after the Committee on Local Government Finance submits its recommendation. The Nevada Tax Commission shall provide public notice of the hearing at least 10 days before the date on which the hearing will be held. The Executive Director shall provide copies of all documents relevant to the adjustment recommended by the Committee on Local Government Finance to the governing body of each local government and special district that is located in the same county as the local government or special district that is subject to the recommended adjustment.
4. If, after the public hearing, the Nevada Tax Commission determines that the recommended adjustment is appropriate, it shall order the Executive Director to adjust the amount allocated to the local government or special district pursuant to NRS 360.680.
Sec. 2.3. Chapter 361 of NRS is hereby amended by adding thereto the provisions set forth as sections 2.5 and 2.7 of this act.
Sec. 2.5. The following personal property is exempt from taxation:
1. Extracted minerals, which are measured by the gross yield and net proceeds from mineral extraction, if the person who engaged in the mineral extraction is subject to the excise tax upon mineral extraction pursuant to the provisions of NRS 362.100 to 362.240, inclusive, but only when the extracted minerals are in the possession of the person who engaged in the mineral extraction.
2. The royalties received from mineral extraction if the person who received the royalties is subject to the excise tax upon royalties pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
Sec. 2.7. 1. Except as otherwise provided in subsection 2 of NRS 362.100, real property that is used in an extractive operation extracting geothermal resources is exempt from taxation if the person who engaged in the mineral extraction is subject to the excise tax upon mineral extraction pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
κ2013 Statutes of Nevada, Page 3115 (CHAPTER 495, SB 400)κ
the mineral extraction is subject to the excise tax upon mineral extraction pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
2. As used in this section, extractive operation has the meaning ascribed to it in NRS 362.010.
Sec. 3. NRS 361.030 is hereby amended to read as follows:
361.030 [1.] Personal property means:
[(a)] 1. All household and kitchen furniture.
[(b)] 2. All law, medical and miscellaneous libraries.
[(c)] 3. All goods, wares and merchandise.
[(d)] 4. All chattels of every kind and description, except vehicles as defined in NRS 371.020.
[(e)] 5. Stocks of goods on hand.
[(f)] 6. Any vehicle not included in the definition of vehicle in NRS 371.020.
[(g)] 7. All locomotives, cars, rolling stock and other personal property used in operating any railroad within the State.
[(h)] 8. All machines and machinery, all works and improvements, all steamers, vessels and watercraft of every kind and name navigating or used upon the waters of any river or lake within this State or having a general depot or terminus within this State.
[(i)] 9. The money, property and effects of every kind, except real estate, of all banks, banking institutions or firms, bankers, moneylenders and brokers.
[(j)] 10. All property of whatever kind or nature, except vehicles as defined in NRS 371.020, not included in the term real estate as that term is defined in NRS 361.035.
[2. Gold-bearing and silver-bearing ores, quartz or minerals from which gold or silver is extracted, when in the hands of the producers thereof, shall not mean, not be taken to mean, nor be listed and assessed under the term personal property as used in this section, but are specially excepted therefrom, and shall be listed, assessed and taxed as provided by law.]
Sec. 3.5. NRS 361.157 is hereby amended to read as follows:
361.157 1. When any real estate or portion of real estate which for any reason is exempt from taxation is leased, loaned or otherwise made available to and used by a natural person, association, partnership or corporation in connection with a business conducted for profit or as a residence, or both, the leasehold interest, possessory interest, beneficial interest or beneficial use of the lessee or user of the property is subject to taxation to the extent the:
(a) Portion of the property leased or used; and
(b) Percentage of time during the fiscal year that the property is leased by the lessee or used by the user, in accordance with NRS 361.2275,
Κ can be segregated and identified. The taxable value of the interest or use must be determined in the manner provided in subsection 3 of NRS 361.227 and in accordance with NRS 361.2275.
2. Subsection 1 does not apply to:
(a) Property located upon a public airport, park, market or fairground, or any property owned by a public airport, unless the property owned by the public airport is not located upon the public airport and the property is leased, loaned or otherwise made available for purposes other than for the purposes of a public airport, including, without limitation, residential, commercial or industrial purposes;
κ2013 Statutes of Nevada, Page 3116 (CHAPTER 495, SB 400)κ
(b) Federal property for which payments are made in lieu of taxes in amounts equivalent to taxes which might otherwise be lawfully assessed;
(c) Property of any state-supported educational institution, except any part of such property located within a tax increment area created pursuant to NRS 278C.155;
(d) Property leased or otherwise made available to and used by a natural person, private association, private corporation, municipal corporation, quasi-municipal corporation or a political subdivision under the provisions of the Taylor Grazing Act or by the United States Forest Service or the Bureau of Reclamation of the United States Department of the Interior;
(e) Property of any Indian or of any Indian tribe, band or community which is held in trust by the United States or subject to a restriction against alienation by the United States;
(f) Vending stand locations and facilities operated by persons who are blind under the auspices of the Bureau of Services to Persons Who Are Blind or Visually Impaired of the Rehabilitation Division of the Department of Employment, Training and Rehabilitation, whether or not the property is owned by the federal, state or a local government;
(g) Leases held by a natural person, corporation, association, municipal corporation, quasi-municipal corporation or political subdivision for development of geothermal resources, but only for resources which have not been put into commercial production;
(h) The use of exempt property that is leased, loaned or made available to a public officer or employee, incident to or in the course of public employment;
(i) A parsonage owned by a recognized religious society or corporation when used exclusively as a parsonage;
(j) Property owned by a charitable or religious organization all, or a portion, of which is made available to and is used as a residence by a natural person in connection with carrying out the activities of the organization;
(k) Property owned by a governmental entity and used to provide shelter at a reduced rate to elderly persons or persons having low incomes;
(l) The occasional rental of meeting rooms or similar facilities for periods of less than 30 consecutive days;
(m) The use of exempt property to provide day care for children if the day care is provided by a nonprofit organization; [or]
(n) Any lease, easement, operating agreement, license, permit or right of entry for any exempt state property granted by the Department or the Regional Transportation Commission of Southern Nevada pursuant to section 45 of the Boulder City Bypass Toll Road Demonstration Project Act [.] ; or
(o) The possession or use of exempt property as a mining claim.
3. Taxes must be assessed to lessees or users of exempt real estate and collected in the same manner as taxes assessed to owners of other real estate, except that taxes due under this section do not become a lien against the property. When due, the taxes constitute a debt due from the lessee or user to the county for which the taxes were assessed and, if unpaid, are recoverable by the county in the proper court of the county.
Sec. 4. NRS 361.227 is hereby amended to read as follows:
361.227 1. Any person determining the taxable value of real property shall appraise:
κ2013 Statutes of Nevada, Page 3117 (CHAPTER 495, SB 400)κ
(a) The full cash value of:
(1) Vacant land by considering the uses to which it may lawfully be put, any legal or physical restrictions upon those uses, the character of the terrain, and the uses of other land in the vicinity.
(2) Improved land consistently with the use to which the improvements are being put.
(b) Any improvements made on the land by subtracting from the cost of replacement of the improvements all applicable depreciation and obsolescence. Depreciation of an improvement made on real property must be calculated at 1.5 percent of the cost of replacement for each year of adjusted actual age of the improvement, up to a maximum of 50 years.
2. The unit of appraisal must be a single parcel unless:
(a) The location of the improvements causes two or more parcels to function as a single parcel;
(b) The parcel is one of a group of contiguous parcels which qualifies for valuation as a subdivision pursuant to the regulations of the Nevada Tax Commission; or
(c) In the professional judgment of the person determining the taxable value, the parcel is one of a group of parcels which should be valued as a collective unit.
3. The taxable value of a leasehold interest, possessory interest, beneficial interest or beneficial use for the purpose of NRS 361.157 or 361.159 must be determined in the same manner as the taxable value of the property would otherwise be determined if the lessee or user of the property was the owner of the property and it was not exempt from taxation, except that the taxable value so determined must be reduced by a percentage of the taxable value that is equal to the:
(a) Percentage of the property that is not actually leased by the lessee or used by the user during the fiscal year; and
(b) Percentage of time that the property is not actually leased by the lessee or used by the user during the fiscal year, which must be determined in accordance with NRS 361.2275.
4. The taxable value of other taxable personal property, except a mobile or manufactured home, must be determined by subtracting from the cost of replacement of the property all applicable depreciation and obsolescence. Depreciation of a billboard must be calculated at 1.5 percent of the cost of replacement for each year after the year of acquisition of the billboard, up to a maximum of 50 years.
5. In determining the taxable value of property, the value of any mineral deposit in its natural state attached to the land must be excluded from the computation of the taxable value of the property.
6. The computed taxable value of any property must not exceed its full cash value. Each person determining the taxable value of property shall reduce it if necessary to comply with this requirement. A person determining whether taxable value exceeds that full cash value or whether obsolescence is a factor in valuation may consider:
(a) Comparative sales, based on prices actually paid in market transactions.
(b) A summation of the estimated full cash value of the land and contributory value of the improvements.
(c) Capitalization of the fair economic income expectancy or fair economic rent, or an analysis of the discounted cash flow.
κ2013 Statutes of Nevada, Page 3118 (CHAPTER 495, SB 400)κ
Κ A county assessor is required to make the reduction prescribed in this subsection if the owner calls to his or her attention the facts warranting it, if the county assessor discovers those facts during physical reappraisal of the property or if the county assessor is otherwise aware of those facts.
[6.] 7. The Nevada Tax Commission shall, by regulation, establish:
(a) Standards for determining the cost of replacement of improvements of various kinds.
(b) Standards for determining the cost of replacement of personal property of various kinds. The standards must include a separate index of factors for application to the acquisition cost of a billboard to determine its replacement cost.
(c) Schedules of depreciation for personal property based on its estimated life.
(d) Criteria for the valuation of two or more parcels as a subdivision.
[7.] 8. In determining, for the purpose of computing taxable value, the cost of replacement of:
(a) Any personal property, the cost of all improvements of the personal property, including any additions to or renovations of the personal property, but excluding routine maintenance and repairs, must be added to the cost of acquisition of the personal property.
(b) An improvement made on land, a county assessor may use any final representations of the improvement prepared by the architect or builder of the improvement, including, without limitation, any final building plans, drawings, sketches and surveys, and any specifications included in such representations, as a basis for establishing any relevant measurements of size or quantity.
[8.] 9. The county assessor shall, upon the request of the owner, furnish within 15 days to the owner a copy of the most recent appraisal of the property, including, without limitation, copies of any sales data, materials presented on appeal to the county board of equalization or State Board of Equalization and other materials used to determine or defend the taxable value of the property.
[9.] 10. The provisions of this section do not apply to property which is assessed pursuant to NRS 361.320.
Secs. 5 and 6. (Deleted by amendment.)
Sec. 7. NRS 361.2285 is hereby amended to read as follows:
361.2285 The Nevada Tax Commission shall adopt regulations which:
1. Provide for the creation of a simple, easily understood form which may be completed by the owner of any real property used to conduct a business 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] 6 of NRS 361.227.
2. Clearly set forth the methodology for applying the income approach to valuation for tax purposes of real property used to conduct a 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.
κ2013 Statutes of Nevada, Page 3119 (CHAPTER 495, SB 400)κ
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. 8. NRS 361.390 is hereby amended to read as follows:
361.390 Each county assessor shall:
1. File with or cause to be filed with the Secretary of the State Board of Equalization, on or before March 10 of each year, the tax roll, or a true copy thereof, of his or her county for the current year as corrected by the county board of equalization.
2. Prepare and file with the Department on or before January 31, March 5 and October 31 of each year, a segregation report showing the assessed values for each taxing entity within the county on a form prescribed by the Department. The assessor shall make projections of assessed value for the current fiscal year and the upcoming fiscal year regarding real and personal property for which the taxable value is determined by the assessor. The Department shall make any projections required for the upcoming fiscal year regarding the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, and any property for which the taxable value is determined by the Nevada Tax Commission.
3. Prepare and file with the Department on or before May 5 for the unsecured roll, on or before August 10 for the secured roll, and on or before October 31 for the unsecured roll and the secured roll, a statistical report showing values for all categories of property on a form prescribed by the Department.
Sec. 9. NRS 361.405 is hereby amended to read as follows:
361.405 1. [The] As soon as reasonably practicable, the Secretary of the State Board of Equalization [forthwith] or the Executive Director of the Department, as applicable, shall certify any change made by the Board or the Nevada Tax Commission in the assessed valuation of any property , in whole or in part , to the county auditor of the county where the property is assessed, and whenever the valuation of any property is raised, the Secretary of the State Board of Equalization or the Executive Director of the Department, as applicable, shall forward by certified mail , to the property owner or owners affected, notice of the increased valuation.
2. As soon as changes resulting from cases having a substantial effect on tax revenues have been certified to the county auditor by the Secretary of the State Board of Equalization [,] or the Executive Director of the Department, as applicable, the county auditor shall:
(a) Enter all such changes , [and] the value of any construction work in progress and the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, which were certified to [him or her] the county auditor by the Department, on the assessment roll before the delivery thereof to the tax receiver.
(b) Add up the valuations and enter the total valuation of each kind of property and the total valuation of all property on the assessment roll.
(c) Certify the results to the board of county commissioners and the Department.
3. The board of county commissioners shall not levy a tax on the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, which are added to the assessed valuation pursuant to paragraph (a) of subsection 2, but, except as otherwise provided by specific statute, the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, must be included in the assessed valuation of the taxable property of the county and all local governments in the county for the determination of the rate of tax and all other purposes for which assessed valuation is used.
κ2013 Statutes of Nevada, Page 3120 (CHAPTER 495, SB 400)κ
excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, which are added to the assessed valuation pursuant to paragraph (a) of subsection 2, but, except as otherwise provided by specific statute, the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, must be included in the assessed valuation of the taxable property of the county and all local governments in the county for the determination of the rate of tax and all other purposes for which assessed valuation is used.
4. As soon as changes resulting from cases having less than a substantial effect on tax revenue have been certified to the county tax receiver by the Secretary of the State Board of Equalization [,] or the Executive Director of the Department, as applicable, the county tax receiver shall adjust the assessment roll or the tax statement or make a tax refund, as directed by the State Board of Equalization [.] or the Nevada Tax Commission.
Sec. 10. Chapter 362 of NRS is hereby amended by adding thereto a new section to read as follows:
The Legislature hereby finds and declares that:
1. Within the State of Nevada, there are many valuable yet nonrenewable and finite mineral resources.
2. The extraction of minerals from the State of Nevada is an important economic activity that is essential to the prosperity of this State and the Nation.
3. Although beneficial, the extraction of minerals from the State of Nevada comes with various environmental and ecological impacts.
4. For the protection and benefit of the publics health, safety and welfare, this chapter imposes, for the privilege of engaging in mineral extraction in the State of Nevada, an excise tax upon mineral extraction by each extractive operation and upon all royalties paid by each extractive operation.
5. This chapter does not impose an ad valorem or property tax upon the value of the mineral extracted or the gross yield or net proceeds from the mineral extraction by each extractive operation or the royalties paid by each extractive operation.
Sec. 11. NRS 362.010 is hereby amended to read as follows:
362.010 As used in this chapter, unless the context otherwise requires:
1. Extractive operation or operation means each geographically separate extractive location in this State where a person engages in mineral extraction. The term includes, without limitation, a mining operation defined in NRS 519A.080, and for each such operation, its location is the location described in the plan or amended plan filed by the person pursuant to NRS 519A.200 to 519A.260, inclusive.
2. Gross yield from mineral extraction or gross yield means the gross yield from mineral extraction by each extractive operation as determined and certified pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
3. Mine means an excavation in the earth from which ores, coal or other mineral substances are extracted, or a subterranean natural deposit of minerals located and identified as such by the staking of a claim or other method recognized by law. The term includes , without limitation, a well drilled to extract minerals.
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[2.] 4. Mineral includes , without limitation, oil, gas and other hydrocarbons . [, but] The term does not include sand, gravel or water, except hot water or steam in an operation extracting geothermal resources for profit.
[3.] 5. Mineral extraction means any act, process, system or method by, through or from which ores, coal or other mineral substances are extracted. The term includes, without limitation, the use of a well drilled to extract minerals.
6. Net proceeds from mineral extraction or net proceeds means the net proceeds from mineral extraction by each extractive operation as determined and certified pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
7. Patented mine or mining claim means each separate, whole or fractional patented mining location, whether such whole or fractional mining location is covered by an independent patent or is included under a single patent with other mining locations.
8. Royalty means a portion of the proceeds from mineral extraction which is paid for the privilege of extracting the mineral. The term does not include:
(a) Rents or other compensatory payments which are fixed and certain in amount and payable periodically over the duration of the lease regardless of the extent of extractions; or
(b) Minimum royalties covering periods when no mineral is extracted if the payments are fixed and certain in amount and payable on a regular periodic basis.
9. Tax upon mineral extraction means the excise tax upon mineral extraction imposed and collected pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
10. Tax upon royalties means the excise tax upon royalties imposed and collected pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
Sec. 12. NRS 362.100 is hereby amended to read as follows:
362.100 1. The provisions of NRS 362.100 to 362.240, inclusive:
(a) Impose, for the privilege of engaging in mineral extraction in the State of Nevada, an excise tax upon mineral extraction by each extractive operation based on the Departments determination and certification of the gross yield and net proceeds from the mineral extraction and upon all royalties paid by each extractive operation; and
(b) Do not impose an ad valorem or property tax upon the value of the mineral extracted or the gross yield or net proceeds from the mineral extraction by each extractive operation or the royalties paid by each extractive operation.
2. In administering the provisions of NRS 362.100 to 362.240, inclusive, the Department shall:
(a) Investigate and determine the gross yield and net proceeds [of all minerals extracted] from mineral extraction by each extractive operation and certify [them] the gross yield and net proceeds as provided in NRS 362.100 to 362.240, inclusive.
(b) Appraise and assess all reduction, smelting and milling works, plants and facilities, whether or not associated with a mine, all drilling rigs, and all supplies, machinery, equipment, apparatus, facilities, buildings, structures and other improvements used in connection with any mining, drilling, reduction, smelting or milling operation as provided in chapter 361 of NRS.
κ2013 Statutes of Nevada, Page 3122 (CHAPTER 495, SB 400)κ
supplies, machinery, equipment, apparatus, facilities, buildings, structures and other improvements used in connection with any mining, drilling, reduction, smelting or milling operation as provided in chapter 361 of NRS.
[2. As used in this section, net proceeds of all minerals extracted includes the proceeds of]
(c) Deposit all taxes, interest and penalties it receives pursuant to the provisions of NRS 362.100 to 362.240, inclusive, in the State Treasury for credit to the State General Fund and, after being apportioned and appropriated as required by law, for credit to the proper account or fund for distribution to local governments pursuant to NRS 362.170.
3. The provisions of NRS 362.100 to 362.240, inclusive, apply to all extractive operations, including, without limitation, all:
(a) Operating mines;
(b) Operating oil and gas wells;
(c) Operations extracting geothermal resources for profit, except an operation which uses natural hot water to enhance the growth of animal or plant life; and
(d) Operations extracting minerals from natural solutions.
Sec. 13. NRS 362.110 is hereby amended to read as follows:
362.110 1. [Every] Each person [extracting any] who engages in mineral [in this State:] extraction:
(a) Shall, on or before February 16 of each year, file with the Department a statement showing the gross yield and claimed net proceeds from each [geographically separate] extractive operation [where a mineral is extracted by that person] and all royalties paid by each extractive operation during the calendar year immediately preceding the year in which the statement is filed.
(b) May have up to 30 days after filing the statement required by paragraph (a) to file an amended statement.
2. The statement must:
(a) Show the claimed deductions from the gross yield in the detail set forth in NRS 362.120. The deductions are limited to the costs incurred during the calendar year immediately preceding the year in which the statement is filed.
(b) Be in the form prescribed by the Department.
(c) Be verified by the manager, superintendent, secretary or treasurer of the corporation, or by the owner of the operation [,] or, if the owner is a natural person, by someone authorized in his or her behalf.
Sec. 14. NRS 362.110 is hereby amended to read as follows:
362.110 1. [Every] Each person [extracting any] who engages in mineral [in this State or receiving any royalty:] extraction:
(a) Shall, on or before February 16 of each year, file with the Department a statement showing the gross yield and claimed net proceeds from each [geographically separate] extractive operation [where a mineral is extracted by that person] and all royalties paid by each extractive operation during the calendar year immediately preceding the year in which the statement is filed.
(b) May have up to 30 days after filing the statement required by paragraph (a) to file an amended statement.
2. The statement must:
κ2013 Statutes of Nevada, Page 3123 (CHAPTER 495, SB 400)κ
(a) Show the claimed deductions from the gross yield in the detail set forth in NRS 362.120. The deductions are limited to the costs incurred during the calendar year immediately preceding the year in which the statement is filed.
(b) Be in the form prescribed by the Department.
(c) Be verified by the manager, superintendent, secretary or treasurer of the corporation, or by the owner of the operation [,] or, if the owner is a natural person, by someone authorized in his or her behalf.
3. Each [recipient of a royalty as described in subsection 1] person who receives any royalties from an extractive operation shall annually file with the Department a [list] statement showing the amount of the royalties and each of the lessees or sublessees who paid the royalties and who is responsible for the taxes upon mineral extraction due [in connection with] from the extractive operation . [or operations included in the statement filed pursuant to subsections 1 and 2.]
Sec. 15. NRS 362.115 is hereby amended to read as follows:
362.115 1. In addition to the statement [required by subsection 1 of] filed pursuant to NRS 362.110, each person [extracting any] who engages in mineral [in this State:] extraction:
(a) Shall, on or before March 1 of each year, file with the Department a statement showing the estimated gross yield and estimated net proceeds from each [such] extractive operation for the entire current calendar year and an estimate of all royalties that will be paid [during] by each extractive operation for the entire current calendar year and shall pay the tax upon [the net proceeds] mineral extraction and the tax upon [the] royalties [so estimated.] based on the estimates. The estimated payment may be reduced by the amount of any credit to which the taxpayer is entitled pursuant to NRS 362.130. The amount [of] paid for the tax [paid] upon royalties must be deducted from the payment of the royalties [.] to the recipient.
(b) May file with the Department a quarterly report stating an estimate for the year and the actual quarterly amounts of production, gross yield and net proceeds as of March 31, June 30, September 30 and December 31, and pay any additional amount due. The additional estimated tax liability must be calculated by determining the difference between the revised estimates of net proceeds based on the recent production figures as indicated by the quarterly reports and the original estimate supplied pursuant to paragraph (a). If the person chooses to submit such reports, the reports must be submitted on a form prescribed by the Department not later than the last day of the month following the end of the calendar quarter and payment must be made within 30 days after filing any quarterly report that indicates an additional estimated tax liability.
2. The Department shall:
(a) Use the statement filed pursuant to subsection 1 to prepare estimates for use by local governments in the preparation of their budgets; and
(b) Submit those estimates to the affected local governments on or before March 15 of each year.
Sec. 16. NRS 362.115 is hereby amended to read as follows:
362.115 1. In addition to the statement [required by subsection 1 of] filed pursuant to NRS 362.110, each person [extracting any] who engages in mineral [in this State] extraction shall, on or before March 1 of each year, file with the Department a statement showing the estimated gross yield and estimated net proceeds from each [such] extractive operation for the entire current calendar year and an estimate of all royalties that will be paid [during] by each extractive operation for the entire current calendar year.
κ2013 Statutes of Nevada, Page 3124 (CHAPTER 495, SB 400)κ
current calendar year and an estimate of all royalties that will be paid [during] by each extractive operation for the entire current calendar year.
2. The Department shall:
(a) Use the statement filed pursuant to subsection 1 only to prepare estimates for use by local governments in the preparation of their budgets; and
(b) Submit those estimates to the local governments on or before March 15 of each year.
Sec. 17. NRS 362.120 is hereby amended to read as follows:
362.120 1. The Department shall, from the statement filed pursuant to NRS 362.110 and from all obtainable data, evidence and reports, compute in dollars and cents the gross yield and net proceeds [of] from each extractive operation for the calendar year immediately preceding the year in which the statement is filed.
2. The computation of the gross yield must include [the value of] , without limitation, any mineral extracted which , during that period, was:
(a) Sold;
(b) Exchanged for any thing or service;
(c) Removed from the State in a form ready for use or sale; or
(d) Used in a manufacturing process or in providing a service . [,
Κ during that period.]
3. The computation of the net proceeds [are] must be ascertained and determined by subtracting from the gross yield the following deductions for costs incurred during that period, and none other:
(a) The actual cost of extracting the mineral, which is limited to direct costs for activities performed in the State of Nevada.
(b) The actual cost of transporting the mineral to the place or places of reduction, refining and sale.
(c) The actual cost of reduction, refining and sale.
(d) The actual cost of delivering the mineral.
(e) The actual cost of maintenance and repairs of:
(1) All machinery, equipment, apparatus and facilities used in the mine.
(2) All milling, refining, smelting and reduction works, plants and facilities.
(3) All facilities and equipment for transportation except those that are under the jurisdiction of the Public Utilities Commission of Nevada or the Nevada Transportation Authority.
(f) Depreciation of the original capitalized cost of the machinery, equipment, apparatus, works, plants and facilities mentioned in paragraph (e). The annual depreciation charge consists of amortization of the original cost in a manner prescribed by regulation of the Nevada Tax Commission. The probable life of the property represented by the original cost must be considered in computing the depreciation charge.
(g) All money paid as contributions or payments under the unemployment compensation law of the State of Nevada, as contained in chapter 612 of NRS, all money paid as contributions under the Social Security Act of the Federal Government, and all money paid to either the State of Nevada or the Federal Government under any amendment to either or both of the statutes mentioned in this paragraph.
κ2013 Statutes of Nevada, Page 3125 (CHAPTER 495, SB 400)κ
(h) The costs of employee travel which occurs within the State of Nevada and which is directly related to mining operations within the State of Nevada.
(i) The costs of Nevada-based corporate services relating to paragraphs (e) to (h), inclusive.
(j) The actual cost of developmental work in or about the mine or upon a group of mines when operated as a unit, which is limited to work that is necessary to the operation of the mine or group of mines.
(k) The costs of reclamation work in the years the reclamation work occurred, including, without limitation, costs associated with the remediation of a site.
(l) All money paid as royalties by a lessee or sublessee of a mine or well, or by both, in determining the net proceeds of the lessee or sublessee, or both.
4. Royalties deducted by a lessee or sublessee constitute part of the net proceeds [of the minerals extracted,] from mineral extraction, and the tax upon [which a tax] royalties must be levied against the person to whom the [royalty has been] royalties are paid.
5. [Every] Each person [acquiring] who acquires any interest in property in the State of Nevada to engage in [the] mineral extraction [of minerals] and who incurs any of the expenses mentioned in subsection 3 shall report those expenses and the recipient of any royalty to the Department on forms provided by the Department. The Department shall report annually to the Mining Oversight and Accountability Commission the expenses and deductions of each mining operation in the State of Nevada.
6. The several deductions mentioned in subsection 3 do not include any expenditures for salaries, or any portion of salaries, of any person not actually engaged in:
(a) The working of the mine;
(b) The operating of the mill, smelter or reduction works;
(c) The operating of the facilities or equipment for transportation;
(d) Superintending the management of any of those operations;
(e) The State of Nevada, in office, clerical or engineering work necessary or proper in connection with any of those operations; or
(f) Nevada-based corporate services.
7. The following expenses are specifically excluded from any deductions from the gross yield:
(a) The costs of employee housing.
(b) Except as otherwise provided in paragraph (h) of subsection 3, the costs of employee travel.
(c) The costs of severing the employment of any employees.
(d) Any dues paid to a third-party organization or trade association to promote or advertise a product.
(e) Expenses relating to governmental relations or to compensate a natural person or entity to influence legislative decisions.
(f) The costs of mineral exploration.
(g) Any federal, state or local taxes.
8. As used in this section, Nevada-based corporate services means corporate services which are performed in the State of Nevada from an office located in this State and which directly support mining operations in this State, including, without limitation, accounting functions relating to mining operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.
κ2013 Statutes of Nevada, Page 3126 (CHAPTER 495, SB 400)κ
operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.
Sec. 18. NRS 362.120 is hereby amended to read as follows:
362.120 1. The Department shall, from the statement filed pursuant to NRS 362.110 and from all obtainable data, evidence and reports, compute in dollars and cents the gross yield and net proceeds [of] from each extractive operation for the calendar year immediately preceding the year in which the statement is filed.
2. The computation of the gross yield must include [the value of] , without limitation, any mineral extracted which , during that period, was:
(a) Sold;
(b) Exchanged for any thing or service;
(c) Removed from the State in a form ready for use or sale; or
(d) Used in a manufacturing process or in providing a service . [,
Κ during that period.]
3. The computation of the net proceeds [are] must be ascertained and determined by subtracting from the gross yield the following deductions for costs incurred during that period, and none other:
(a) The actual cost of extracting the mineral, which is limited to direct costs for activities performed in the State of Nevada.
(b) The actual cost of transporting the mineral to the place or places of reduction, refining and sale.
(c) The actual cost of reduction, refining and sale.
(d) The actual cost of delivering the mineral.
(e) The actual cost of maintenance and repairs of:
(1) All machinery, equipment, apparatus and facilities used in the mine.
(2) All milling, refining, smelting and reduction works, plants and facilities.
(3) All facilities and equipment for transportation except those that are under the jurisdiction of the Public Utilities Commission of Nevada or the Nevada Transportation Authority.
(f) Depreciation of the original capitalized cost of the machinery, equipment, apparatus, works, plants and facilities mentioned in paragraph (e). The annual depreciation charge consists of amortization of the original cost in a manner prescribed by regulation of the Nevada Tax Commission. The probable life of the property represented by the original cost must be considered in computing the depreciation charge.
(g) All money expended for premiums for industrial insurance, and the actual cost of hospital and medical attention and accident benefits and group insurance for employees actually engaged in mining operations within the State of Nevada.
(h) All money paid as contributions or payments under the unemployment compensation law of the State of Nevada, as contained in chapter 612 of NRS, all money paid as contributions under the Social Security Act of the Federal Government, and all money paid to either the State of Nevada or the Federal Government under any amendment to either or both of the statutes mentioned in this paragraph.
(i) The costs of employee travel which occurs within the State of Nevada and which is directly related to mining operations within the State of Nevada.
κ2013 Statutes of Nevada, Page 3127 (CHAPTER 495, SB 400)κ
(j) The costs of Nevada-based corporate services relating to paragraphs (e) to (i), inclusive.
(k) The actual cost of developmental work in or about the mine or upon a group of mines when operated as a unit, which is limited to work that is necessary to the operation of the mine or group of mines.
(l) The costs of reclamation work in the years the reclamation work occurred, including, without limitation, costs associated with the remediation of a site.
(m) All money paid as royalties by a lessee or sublessee of a mine or well, or by both, in determining the net proceeds of the lessee or sublessee, or both.
4. Royalties deducted by a lessee or sublessee constitute part of the net proceeds [of the minerals extracted,] from mineral extraction, and the tax upon [which a tax] royalties must be levied against the person to whom the [royalty has been] royalties are paid.
5. [Every] Each person [acquiring] who acquires any interest in property in the State of Nevada to engage in [the] mineral extraction [of minerals] and who incurs any of the expenses mentioned in subsection 3 shall report those expenses and the recipient of any royalty to the Department on forms provided by the Department. The Department shall report annually to the Mining Oversight and Accountability Commission the expenses and deductions of each mining operation in the State of Nevada.
6. The several deductions mentioned in subsection 3 do not include any expenditures for salaries, or any portion of salaries, of any person not actually engaged in:
(a) The working of the mine;
(b) The operating of the mill, smelter or reduction works;
(c) The operating of the facilities or equipment for transportation;
(d) Superintending the management of any of those operations;
(e) The State of Nevada, in office, clerical or engineering work necessary or proper in connection with any of those operations; or
(f) Nevada-based corporate services.
7. The following expenses are specifically excluded from any deductions from the gross yield:
(a) The costs of employee housing.
(b) Except as otherwise provided in paragraph (i) of subsection 3, the costs of employee travel.
(c) The costs of severing the employment of any employees.
(d) Any dues paid to a third-party organization or trade association to promote or advertise a product.
(e) Expenses relating to governmental relations or to compensate a natural person or entity to influence legislative decisions.
(f) The costs of mineral exploration.
(g) Any federal, state or local taxes.
8. As used in this section, Nevada-based corporate services means corporate services which are performed in the State of Nevada from an office located in this State and which directly support mining operations in this State, including, without limitation, accounting functions relating to mining operations at a mine site in this State such as payroll, accounts payable, production reporting, cost reporting, state and local tax reporting and recordkeeping concerning property.
κ2013 Statutes of Nevada, Page 3128 (CHAPTER 495, SB 400)κ
Sec. 19. NRS 362.130 is hereby amended to read as follows:
362.130 1. When the Department determines from the annual statement filed pursuant to NRS 362.110 the net proceeds [of any minerals extracted,] from mineral extraction, it shall prepare its certificate of the amount of the net proceeds, the amount of the estimated tax paid in the prior calendar year pursuant to paragraph (a) of subsection 1 of NRS 362.115 and any additional payments made pursuant to paragraph (b) of subsection 1 of that section, and the balance of the tax due, if any, and send a copy of the certificate to the owner or operator of the [mine.] extractive operation.
2. The certificate must be prepared and mailed not later than:
(a) April 20 immediately following the month of February during which the annual statement was filed; or
(b) April 30 immediately thereafter if an amended statement is filed in a timely manner.
3. The tax due as indicated in the certificate and any penalty must be paid on or before May 10 of the year in which the certificate is received.
4. If the amount paid pursuant to paragraph (a) of subsection 1 of NRS 362.115 in the prior calendar year is less than 90 percent of the amount certified pursuant to this section, the amount due must include a penalty of 10 percent of the amount by which the tax was underpaid unless:
(a) The amount paid pursuant to paragraph (a) of subsection 1 of NRS 362.115 in the prior calendar year is equal to or greater than the total liability of the operation for the preceding calendar year; or
(b) The person files quarterly reports pursuant to paragraph (b) of subsection 1 of NRS 362.115 in a timely manner for that year and the total of all payments exceeds 90 percent of the amount certified.
5. If an overpayment was made, the overpayment must be credited toward the payment due on March 1 of the next calendar year. If the certificate shows a net loss for the year covered by the certificate or an amount of tax due for that year which is less than an overpayment made for the preceding year, the amount or remaining amount of the overpayment must, after being credited against any amount then due from the taxpayer in accordance with NRS 360.236, be refunded to the taxpayer within 30 days after the certification was sent to the taxpayer.
Sec. 20. NRS 362.130 is hereby amended to read as follows:
362.130 1. When the Department determines from the annual statement filed pursuant to NRS 362.110 the net proceeds [of any minerals extracted,] from mineral extraction, it shall prepare its certificate of the amount of the net proceeds and the tax due and send a copy of the certificate to the owner [of the mine,] or operator of the [mine or] extractive operation and the recipient of [the] any royalty, as the case may be.
2. The certificate must be prepared and mailed not later than:
(a) April 20 immediately following the month of February during which the annual statement was filed; or
(b) April 30 immediately thereafter if an amended statement is filed in a timely manner.
3. The tax due as indicated in the certificate must be paid on or before May 10 of the year in which the certificate is received.
4. If an overpayment was made, the overpayment must be credited toward the payment due on May 10 of the next calendar year. If the certificate shows a net loss for the year covered by the certificate or an amount of tax due for that year which is less than an overpayment made for the preceding year, the amount or remaining amount of the overpayment must, after being credited against any amount then due from the taxpayer in accordance with NRS 360.236, be refunded to the taxpayer within 30 days after the certification was sent to the taxpayer.
κ2013 Statutes of Nevada, Page 3129 (CHAPTER 495, SB 400)κ
the preceding year, the amount or remaining amount of the overpayment must, after being credited against any amount then due from the taxpayer in accordance with NRS 360.236, be refunded to the taxpayer within 30 days after the certification was sent to the taxpayer.
Sec. 21. NRS 362.135 is hereby amended to read as follows:
362.135 1. Any person dissatisfied by any certification [of] or taxation by the Department pursuant to the provisions of NRS 362.100 to 362.240, inclusive, may appeal from that determination to the [State Board of Equalization. The appeal must be filed within 30 days after the certification is sent to the taxpayer.] Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245.
2. Pending determination of the appeal, the person certified as owing the tax shall pay it on or before the date due, and the tax is considered to be paid under protest.
Sec. 22. NRS 362.140 is hereby amended to read as follows:
362.140 1. There is hereby imposed an excise tax upon mineral extraction by each extractive operation. Except as otherwise provided in this section, the rate of tax upon [the net proceeds of] mineral extraction by each [geographically separate] extractive operation depends upon the ratio of the net proceeds to the gross proceeds [of] from that operation as a whole, according to the following table:
Net Proceeds as Percentage Rate of Tax as Percentage
of Gross Proceeds of Net Proceeds
Less than 10............................................................................... 2.00
10 or more but less than 18..................................................... 2.50
18 or more but less than 26..................................................... 3.00
26 or more but less than 34..................................................... 3.50
34 or more but less than 42..................................................... 4.00
42 or more but less than 50..................................................... 4.50
50 or more................................................................................... 5.00
2. If the combined rate of tax ad valorem , [which would be assessed but for the provisions of Section 5 of Article 10 of the Constitution of this state,] including any rate levied by the State of Nevada, [upon] for property at the situs of the extractive operation is more than 2 percent, the minimum rate of tax [under this section equals that] upon mineral extraction by the operation is an amount equal to the combined rate of tax ad valorem [.] multiplied by the net proceeds.
3. There is hereby imposed an excise tax upon royalties. The rate of tax upon royalties is 5 percent [.
4. The] , regardless of the rate of tax upon [the net proceeds of] mineral extraction which is imposed on the extractive operation that pays the royalties.
4. If a geothermal operation is taxable pursuant to NRS 362.100 to 362.240, inclusive, the rate of tax upon mineral extraction by the operation is an amount equal to the combined rate of tax ad valorem [applicable to the] , including any rate levied by the State of Nevada, for property at the situs of the operation [.
5. The rate of tax upon] multiplied by the net proceeds.
κ2013 Statutes of Nevada, Page 3130 (CHAPTER 495, SB 400)κ
5. Except as otherwise provided in subsection 4, if an extractive operation extracts minerals for which the net proceeds in a calendar year exceed $4,000,000 , the rate of tax upon mineral extraction by the operation is an amount equal to 5 percent [.] multiplied by the net proceeds.
Sec. 23. NRS 362.150 is hereby amended to read as follows:
362.150 1. Every tax [levied under the authority or provisions of NRS 362.100 to 362.240, inclusive, on the proceeds of minerals extracted] upon mineral extraction is hereby made a lien on [the] :
(a) The mines of the taxpayer from which the minerals are extracted [for sale or reduction, and also on all] ; and
(b) All machinery, fixtures, equipment and stockpiles of the taxpayer located at the [mine site] mines of the taxpayer or elsewhere in the State.
2. The lien attaches on [the 1st day of] January 1 of each year, for the calendar year commencing on that day , and may not be removed or satisfied until the taxes are all paid [,] or the title to [those] the mines or property of the taxpayer has vested absolutely in a purchaser under a sale for [those] the unpaid taxes.
Sec. 24. NRS 362.160 is hereby amended to read as follows:
362.160 1. Except as otherwise provided in NRS 360.232 and 360.320, if the amount of any tax [required by NRS 362.100 to 362.240, inclusive,] upon mineral extraction or royalties is not paid by the taxpayer within 10 days after it is due, it is delinquent and must be collected as other delinquent taxes are collected by law, together with a penalty of 10 percent of the amount of the tax which is owed, as determined by the Department, in addition to the tax, plus interest at the rate of 1 percent per month, or fraction of a month, from the date the tax was due until the date of payment.
2. Any [person extracting any mineral or receiving a royalty] taxpayer against whom a penalty and interest is imposed pursuant to this section may appeal from the imposition of the penalty and interest to the Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245.
Sec. 25. NRS 362.170 is hereby amended to read as follows:
362.170 1. There is hereby appropriated to each county the total of the amounts obtained by multiplying, for each extractive operation situated within the county, the net proceeds [of] from that operation and any royalties paid by that operation, as estimated and paid pursuant to NRS 362.115, plus any amounts paid pursuant to NRS 362.130 by the combined rate of tax ad valorem for the fiscal year to which the payments apply, excluding any rate levied by the State of Nevada, for property at [that site,] the situs of the operation, plus a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to the county. The Department shall report to the State Controller on or before May 25 of each year the amount appropriated to each county, as calculated for each operation from the estimate provided pursuant to NRS 362.115 for the current calendar year and any adjustments made pursuant to NRS 362.130 for the preceding calendar year. The State Controller shall distribute all money due to a county on or before May 30 of each year. The Department shall report to the State Controller any additional payments made pursuant to paragraph (b) of subsection 1 of NRS 362.115 within 15 days after receipt of the payment, and the State Controller shall distribute the money to the appropriate county within 5 days after receipt of the report from the Department. For the purposes of this subsection, payments made pursuant to paragraph (b) of subsection 1 of NRS 362.115 apply to the fiscal year in which the statement of the estimated net proceeds is filed pursuant to paragraph (a) of subsection 1 of NRS 362.115.
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subsection 1 of NRS 362.115 apply to the fiscal year in which the statement of the estimated net proceeds is filed pursuant to paragraph (a) of subsection 1 of NRS 362.115.
2. The county treasurer shall apportion to each local government or other local entity an amount calculated by:
(a) Determining the total of the amounts obtained by multiplying, for each extractive operation situated within its jurisdiction, the net proceeds [of] from that operation and any [royalty payments] royalties paid by that operation, by the rate of tax ad valorem levied on behalf of that local government or other local entity;
(b) Adding to the amount determined pursuant to paragraph (a) a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to that local government or other local entity; and
(c) Subtracting from the amount determined pursuant to paragraph (b) a commission of 5 percent of that amount, of which 3 percent must be deposited in the county general fund and 2 percent must be accounted for separately in the account for the acquisition and improvement of technology in the office of the county assessor created pursuant to NRS 250.085.
3. The amounts apportioned pursuant to subsection 2, including, without limitation, the amount retained by the county [and] , but excluding the countys percentage commission, must be applied to the uses for which each levy was authorized in the same proportion as the rate of each levy bears to the total rate.
4. The Department shall report to the State Controller on or before May 25 of each year the total amount received [as] for the benefit of the State of Nevada from the tax upon [the net proceeds of] mineral extraction by geothermal [resources] operations, which equals the product of [those] the net proceeds from those operations multiplied by the rate of tax [levied] ad valorem levied by the State of Nevada.
Sec. 26. NRS 362.170 is hereby amended to read as follows:
362.170 1. There is hereby appropriated to each county the total of the amounts obtained by multiplying, for each extractive operation situated within the county, the net proceeds [of] from that operation and any royalties paid by that operation, by the combined rate of tax ad valorem, excluding any rate levied by the State of Nevada, for property at [that site,] the situs of the operation, plus a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to the county. The Department shall report to the State Controller on or before May 25 of each year the amount appropriated to each county, as calculated for each operation from the final statement made in February of that year for the preceding calendar year. The State Controller shall distribute all money due to a county on or before May 30 of each year.
2. The county treasurer shall apportion to each local government or other local entity an amount calculated by:
(a) Determining the total of the amounts obtained by multiplying, for each extractive operation situated within its jurisdiction, the net proceeds [of] from that operation and any [royalty payments] royalties paid by that operation, by the rate of tax ad valorem levied on behalf of that local government or other local entity;
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(b) Adding to the amount determined pursuant to paragraph (a) a pro rata share of any penalties and interest collected by the Department for the late payment of taxes distributed to that local government or other local entity; and
(c) Subtracting from the amount determined pursuant to paragraph (b) a commission of 3 percent of that amount which must be deposited in the county general fund.
3. The amounts apportioned pursuant to subsection 2, including, without limitation, the amount retained by the county [and] , but excluding the countys percentage commission, must be applied to the uses for which each levy was authorized in the same proportion as the rate of each levy bears to the total rate.
4. The Department shall report to the State Controller on or before May 25 of each year the total amount received [as] for the benefit of the State of Nevada from the tax upon [the net proceeds of] mineral extraction by geothermal [resources] operations, which equals the product of [those] the net proceeds from those operations multiplied by the rate of tax [levied] ad valorem levied by the State of Nevada.
Sec. 27. NRS 362.171 is hereby amended to read as follows:
362.171 1. Each county to which money is appropriated by subsection 1 of NRS 362.170 may set aside a percentage of that appropriation to establish a county fund for mitigation. Money from the fund may be appropriated by the board of county commissioners only to mitigate adverse effects upon the county, or the school district located in the county, which result from:
(a) A decline in the revenue received by the county from the tax [on the net proceeds of minerals] upon mineral extraction during the 2 fiscal years immediately preceding the current fiscal year; or
(b) The opening or closing of an extractive operation from [the net proceeds of] which revenue has been or is reasonably expected to be [derived pursuant to this chapter.] received by the county from the tax upon mineral extraction.
2. Each school district to which money is apportioned by a county pursuant to subsection 2 of NRS 362.170 may set aside a percentage of the amount apportioned to establish a school district fund for mitigation. Except as otherwise provided in subsection 3, money from the fund may be used by the school district only to mitigate adverse effects upon the school district which result from:
(a) A decline in the revenue received by the school district from the tax [on the net proceeds of minerals;] upon mineral extraction;
(b) The opening or closing of an extractive operation from [the net proceeds of] which revenue has been or is reasonably expected to be [derived pursuant to this chapter;] received by the school district from the tax upon mineral extraction; or
(c) Expenses incurred by the school district arising from a natural disaster.
3. In addition to the authorized uses for mitigation set forth in subsection 2, a school district in a county whose population is less than 4,500 may, as the board of trustees of the school district determines is necessary, use the money from the fund established pursuant to subsection 2:
(a) To retire bonds issued by the school district or any other outstanding obligations of the school district; and
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(b) To continue the instructional programs of the school district or the services and activities that are necessary to support those instructional programs, which would otherwise be reduced or eliminated if not for the provisions of this section.
Κ Before authorizing the expenditure of money pursuant to this subsection, the board of trustees shall hold at least one public hearing on the matter.
Sec. 28. NRS 362.175 is hereby amended to read as follows:
362.175 1. If at any time, in the opinion of the Executive Director, it becomes impossible or impractical to collect any unpaid tax [certified on the proceeds of minerals extracted,] upon mineral extraction or royalties, the Executive Director may apply to the Nevada Tax Commission to have the amount of the unpaid tax and the name of the [person against whom the tax is certified] delinquent taxpayer removed from the tax records of the Department.
2. If the Nevada Tax Commission approves the application, the Department may remove the name and amount from its tax records.
Sec. 29. NRS 362.180 is hereby amended to read as follows:
362.180 In any [suit] action arising [concerning the certification and taxation of the net proceeds of minerals extracted,] pursuant to the provisions of NRS 362.100 to 362.240, inclusive, the burden of proof is upon the taxpayer to show , if the taxpayer so alleges or contends , that [the] any certification or taxation by the Department is unjust, improper or otherwise invalid.
Sec. 30. NRS 362.200 is hereby amended to read as follows:
362.200 1. The Department may examine the records of any person [operating or receiving] who engages in mineral extraction or receives royalties from any extractive operation . [in this state.] The records are subject to examination at all times by the Department or its authorized agents and must remain available for examination for a period of 4 years from the date of any entry therein.
2. If the Department examines the records of any person whose gross yield from an extractive operation was $100,000 or more, as reported to the Department for any annual reporting period during the 4 years immediately preceding the examination [was $100,000 or more] , and the person keeps his or her [books and] records pertaining to that operation or royalties outside this state, the person shall pay an amount per day equal to the amount set by law for out-of-state travel for each day or fraction thereof during which an examiner is actually engaged in examining the [books,] records, plus the actual expenses of that examiner during the time he or she is absent from Carson City, Nevada, for the purpose of making the examination, but the time must not exceed 1 day going to and 1 day coming from the place of examination. No more than one examination may be charged against a person in any 1 fiscal year.
3. The Department may hold hearings and summon and subpoena witnesses to appear and testify upon any subject material to [the determination of the net proceeds of minerals extracted.] any certification or taxation by the Department pursuant to the provisions of NRS 362.100 to 362.240, inclusive. The hearings may be held at any place the Department designates, after not less than 10 days notice of the time and place of the hearing given in writing to the [owner or operator of the mine.] taxpayer. The [owner or operator] taxpayer is entitled, on request made to the Executive Director, to the issuance of the Departments subpoena requiring witnesses in behalf of the [owner or operator] taxpayer to appear and testify at such hearing.
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Executive Director, to the issuance of the Departments subpoena requiring witnesses in behalf of the [owner or operator] taxpayer to appear and testify at such hearing.
4. The failure of a witness to obey the subpoena of the Department subjects the witness to the same penalties prescribed by law for failure to obey a subpoena of a district court.
Sec. 31. NRS 362.230 is hereby amended to read as follows:
362.230 1. [Every] If any person [extracting any] engages in mineral [in this state, or receiving a royalty in connection therewith, who] extraction or receives royalties from any extractive operation and fails to file with the Department [the statements provided for in] a statement required by NRS 362.100 to 362.240, inclusive, during the time and in the manner [provided for in NRS 362.100 to 362.240, inclusive,] required by those sections:
(a) The person shall pay a penalty of not more than $5,000 [. If any such person fails to file the statement, the] for each such violation; and
(b) The Department may ascertain and certify the amount of the gross yield, net proceeds [of the minerals extracted or the value of the royalty] and royalties received from the extractive operation from all data and information obtainable, and the amount of the tax due must be computed on the basis of the [amount due] amounts so ascertained and certified [.] by the Department.
2. The Executive Director shall determine the amount of the penalty [. This] imposed against the person, and the penalty becomes a debt due the State of Nevada . [and, upon collection, must be deposited in the State Treasury to the credit of the State General Fund.]
3. Any person [extracting any mineral or receiving a royalty] against whom a penalty is imposed pursuant to this section may appeal from the imposition of the penalty to the Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245.
Sec. 32. NRS 362.240 is hereby amended to read as follows:
362.240 [Any person who]
1. If any person verifies under oath to the truthfulness of a statement required by NRS 362.100 to 362.240, inclusive, that is false in any material respect , the person shall [be liable to] pay a penalty of not more than 15 percent of the amount of the tax [as determined by the] due as a result of the violation.
2. The Executive Director [after reasonable notice and hearing.] shall determine the amount of the penalty imposed against the person, and the penalty becomes a debt due the State of Nevada.
3. Any person against whom a penalty is imposed pursuant to this section may appeal from the imposition of the penalty to the Nevada Tax Commission by filing a notice of appeal in accordance with the requirements set forth in NRS 360.245.
Sec. 33. NRS 377B.170 is hereby amended to read as follows:
377B.170 1. In a county whose population is 700,000 or more and in which a water authority exists, the water authority shall enter into an interlocal agreement with a city or town located in the county whose territory is not within the boundaries of the area served by the water authority or with a public entity in the county which provides water or wastewater services and which is not a member of the water authority to provide a distribution from the infrastructure fund of the water authority to the city, town or public entity after the city, town or public entity has filed with the water authority a detailed plan for acquiring, establishing, constructing, improving or equipping, or any combination thereof, a water or wastewater facility.
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detailed plan for acquiring, establishing, constructing, improving or equipping, or any combination thereof, a water or wastewater facility.
2. Such a city, town or public entity may request annually from the infrastructure fund of the water authority an amount of the proceeds of the tax for infrastructure received annually by the water authority that is equal to the proportion that the assessed valuation of taxable property within the boundaries of the city or town or the area served by the public entity, except any assessed valuation attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, bears to the total assessed valuation of taxable property within the county, except any assessed valuation attributable to the net proceeds [of minerals.] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive. If the boundaries of such a city or town overlap with the boundaries of a public entity in such a county which provides water or wastewater services and which is not a member of the water authority, the water authority shall apportion equally between the city or town and the public entity the distribution from the infrastructure fund attributable to the assessed valuation in the area where the boundaries overlap.
3. The water authority shall not unreasonably refuse a request from such a city, town or public entity for a distribution from the infrastructure fund pursuant to the provisions of this section.
Sec. 34. NRS 349.238 is hereby amended to read as follows:
349.238 1. There must be levied annually a special tax on all property, both real and personal, subject to taxation within the boundaries of the State of Nevada, that is fully sufficient , together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, and without regard to any statutory limitations now or hereafter existing, to pay the interest on the general obligation state securities and to pay and retire the securities as provided in the State Securities Law and in any act supplemental hereto. The amount of money to be raised by the tax must be included in the annual estimate or budget for each county in the state for each year for which the tax is hereby required to be levied. The tax must be levied and collected in the same manner and at the same time as other taxes are levied and collected.
2. The proceeds thereof levied to pay interest on the securities must be kept by the State Treasurer in a special fund, separate and apart from all other funds, and the proceeds of the tax levied to pay the principal of the securities must be kept by the Treasurer in a special fund, separate and apart from all other funds. The two special funds must be used for no other purpose than the payment of the interest on the securities and the principal thereof, respectively, when due.
Sec. 35. NRS 350.592 is hereby amended to read as follows:
350.592 1. There must be levied annually in due season a special tax on all property, both real and personal, subject to taxation within the boundaries of the municipality, that is fully sufficient , together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, and without regard to any statutory or charter tax limitations other than the limitation set forth in NRS 361.453, to pay the interest on the general obligation municipal securities and to pay and retire the securities as provided in the Local Government Securities Law and in any act supplemental hereto.
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limitation set forth in NRS 361.453, to pay the interest on the general obligation municipal securities and to pay and retire the securities as provided in the Local Government Securities Law and in any act supplemental hereto. The amount of money to be raised by the tax must be included in the annual estimate or budget for each county within the state for each year for which the tax is hereby required to be levied. The tax must be levied and collected in the same manner and at the same time as other taxes are levied and collected.
2. The proceeds thereof levied to pay interest on the securities must be kept by the treasurer in a special fund, separate and apart from all other funds, and the proceeds of the tax levied to pay the principal of the securities must be kept by the treasurer in a special fund, separate and apart from all other funds. The two special funds must be used for no other purpose than the payment of the interest on the securities and the principal thereof, respectively, when due; but, except as prevented by any contractual limitations imposed upon the municipality by proceedings appertaining to its outstanding securities, the municipality may provide for a consolidated debt service fund to pay principal of and interest on outstanding securities, when due.
Sec. 36. NRS 354.59811 is hereby amended to read as follows:
354.59811 1. Except as otherwise provided in NRS 244.377, 278C.260, 354.59813, 354.59815, 354.59818, 354.5982, 354.5987, 354.705, 354.723, 450.425, 450.760, 540A.265 and 543.600, 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] taxes attributable to the net proceeds [of minerals or those] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, or taxes 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,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, 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.
(b) This rate must then be applied to the total assessed valuation, excluding the assessed valuation attributable to the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, 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.
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pursuant to the provisions of NRS 362.100 to 362.240, inclusive, 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. 37. NRS 354.59813 is hereby amended to read as follows:
354.59813 1. In addition to the allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811, if the estimate of the revenue available from the supplemental city-county relief tax to the county as determined by the Executive Director of the Department of Taxation pursuant to the provisions of subsection 11 of NRS 360.690 is less than the amount of money that would be generated by applying a tax rate of $1.15 per $100 of assessed valuation to the assessed valuation of the county, except any assessed valuation attributable to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, the governing body of each local government may levy an additional tax ad valorem for operating purposes. The total tax levied by the governing body of a local government pursuant to this section must not exceed a rate calculated to produce revenue equal to the difference between the:
(a) Amount of revenue from supplemental city-county relief tax estimated to be received by the county pursuant to subsection 11 of NRS 360.690; and
(b) The tax that the county would have been estimated to receive if the estimate for the total revenue available from the tax was equal to the amount of money that would be generated by applying a tax rate of $1.15 per $100 of assessed valuation to the assessed valuation of the county,
Κ multiplied by the proportion determined for the local government pursuant to subparagraph (2) of paragraph (a) of subsection 4 of NRS 360.690, subparagraph (2) of paragraph (a) of subsection 6 of NRS 360.690 or subparagraph (2) of paragraph (a) of subsection 7 of NRS 360.690, as appropriate.
2. Any additional taxes ad valorem levied as a result of the application of this section must not be included in the base from which the allowed revenue from taxes ad valorem for the next subsequent year is computed.
3. As used in this section, local government has the meaning ascribed to it in NRS 360.640.
Sec. 38. NRS 354.598747 is hereby amended to read as follows:
354.598747 1. To calculate the amount to be distributed pursuant to the provisions of NRS 360.680 and 360.690 from a countys subaccount in the Local Government Tax Distribution Account to a local government, special district or enterprise district after it assumes the functions of another local government, special district or enterprise district:
(a) Except as otherwise provided in this section, the Executive Director of the Department of Taxation shall:
(1) Add the amounts calculated pursuant to subsection 1 or 2 of NRS 360.680 for each local government, special district or enterprise district and allocate the combined amount to the local government, special district or enterprise district that assumes the functions; and
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allocate the combined amount to the local government, special district or enterprise district that assumes the functions; and
(2) If applicable, add the average change in population and average change in the assessed valuation of taxable property that would otherwise be allowed to the local government or special district whose functions are assumed, including the assessed valuation attributable to a redevelopment agency but excluding the portion attributable to the net proceeds [of minerals, pursuant to] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, as appropriate under subsection 4, 5, 6 or 7 of NRS 360.690, [as appropriate,] to the average change in population and average change in assessed valuation for the local government, special district or enterprise district that assumes the functions.
(b) If two or more local governments, special districts or enterprise districts assume the functions of another local government, special district or enterprise district, the additional revenue must be divided among the local governments, special districts or enterprise districts that assume the functions on the basis of the proportionate costs of the functions assumed.
Κ The Nevada Tax Commission shall not allow any increase in the allowed revenue from the taxes contained in the countys subaccount in the Local Government Tax Distribution Account if the increase would result in a decrease in revenue of any local government, special district or enterprise district in the county that does not assume those functions. If more than one local government, special district or enterprise district assumes the functions, the Nevada Tax Commission shall determine the appropriate amounts calculated pursuant to subparagraphs (1) and (2) of paragraph (a).
2. If a city disincorporates, the board of county commissioners of the county in which the city is located must determine the amount the unincorporated town created by the disincorporation will receive pursuant to the provisions of NRS 360.600 to 360.740, inclusive.
3. As used in this section:
(a) Enterprise district has the meaning ascribed to it in NRS 360.620.
(b) Local government has the meaning ascribed to it in NRS 360.640.
(c) Special district has the meaning ascribed to it in NRS 360.650.
Sec. 39. NRS 380.130 is hereby amended to read as follows:
380.130 1. Whenever it appears to the board of county commissioners of any county having a law library that for any reason any debt incurred in the purchase and establishment of the library has not been fully paid or materially reduced with the money provided by the provisions of NRS 380.110, within the period of 5 years immediately preceding, the board of county commissioners may, at the next annual tax levy, levy a special tax upon all taxable property within the county, both real and personal , that is sufficient, together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, to raise a sum which will discharge any such indebtedness, but no more. The money must be placed in the law library fund in the county treasury and must be used for the payment of the indebtedness and for no other purpose.
2. In lieu of the levy of a special tax as provided in subsection 1, the board of county commissioners of any county having a law library may, in the discretion of the board of county commissioners, transfer from the general funds of the county to the law library fund a sufficient sum of money to pay any debts incurred in the purchase and establishment and maintenance of the library, which has not been fully paid or materially reduced with the money provided by the provisions of NRS 380.110, within the period of 5 years immediately preceding March 1, 1959.
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general funds of the county to the law library fund a sufficient sum of money to pay any debts incurred in the purchase and establishment and maintenance of the library, which has not been fully paid or materially reduced with the money provided by the provisions of NRS 380.110, within the period of 5 years immediately preceding March 1, 1959.
Sec. 40. NRS 387.1235 is hereby amended to read as follows:
387.1235 1. Except as otherwise provided in subsection 2, local funds available are the sum of:
(a) The amount of one-third of the tax collected pursuant to subsection 1 of NRS 387.195 for the school district for the concurrent school year; and
(b) The proceeds of the local school support tax imposed by chapter 374 of NRS, excluding any amounts required to be remitted pursuant to NRS 360.850 and 360.855. The Department of Taxation shall furnish an estimate of these proceeds to the Superintendent of Public Instruction on or before July 15 for the fiscal year then begun, and the Superintendent shall adjust the final apportionment of the current school year to reflect any difference between the estimate and actual receipts.
2. The amount of the local funds computed [under] pursuant to subsection 1 that is [attributable to] based on any assessed valuation attributable to the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, must be held in reserve and may not be considered as local funds available until the succeeding fiscal year.
Sec. 41. NRS 387.195 is hereby amended to read as follows:
387.195 1. Each board of county commissioners shall levy a tax of 75 cents on each $100 of assessed valuation of taxable property within the county for the support of the public schools within the county school district.
2. The amount of the tax collected pursuant to subsection 1 that is based on any assessed valuation attributable to the net proceeds [of minerals] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, must not be considered as available to pay liabilities of the fiscal year in which the tax is collected but must be deferred for use in the subsequent fiscal year. The annual budget for the school district must only consider as an available source the amount of the tax [on the net proceeds of minerals which was] collected in the prior fiscal year [.] that is based on any assessed valuation attributable to the net proceeds from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive.
3. In addition to any tax levied in accordance with subsection 1, each board of county commissioners shall levy a tax for the payment of interest and redemption of outstanding bonds of the county school district.
4. The tax collected pursuant to subsection 1 and any interest earned from the investment of the proceeds of that tax must be credited to the countys school district fund.
5. The tax collected pursuant to subsection 3 and any interest earned from the investment of the proceeds of that tax must be credited to the county school districts debt service fund.
Sec. 42. NRS 450.660 is hereby amended to read as follows:
450.660 1. At the time of making the levy of county taxes for that year, each board of trustees shall levy a tax that is sufficient, together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, to raise the amount so budgeted upon any real and personal property that is subject to taxation within the boundaries of the district.
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tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, to raise the amount so budgeted upon any real and personal property that is subject to taxation within the boundaries of the district. Any tax levied on interstate or intercounty telephone lines, power lines and other public utility lines pursuant to this section must be based upon valuations as established by the Nevada Tax Commission pursuant to the provisions of NRS 361.315 to 361.330, inclusive.
2. When levied, the tax must be:
(a) Entered upon the assessment rolls of each county that is included within the district; and
(b) Collected in the same manner as state and county taxes.
3. When the tax is collected it must be:
(a) Placed in the treasury of the county in which the district hospital is located;
(b) Credited to the current expense fund of the district; and
(c) Used only for the purpose for which it was raised.
Sec. 43. NRS 474.190 is hereby amended to read as follows:
474.190 1. Subject to the provisions of subsection 3, the board of directors of each county fire protection district shall prepare annual budgets in accordance with NRS 354.470 to 354.626, inclusive.
2. The budget of a district must be based on estimates of the amount of money that will be needed to defray the expenses of the district and to meet unforeseen emergencies and the amount of a fire protection tax that is sufficient, together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, to raise such sums.
3. The amount of money to be raised for the purpose of establishing, equipping and maintaining the district with fire-fighting facilities must not in any 1 year exceed 1 percent of the assessed value of the property described in NRS 474.200 and any net proceeds [of minerals derived] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, within the boundaries of the district.
Sec. 44. NRS 474.510 is hereby amended to read as follows:
474.510 1. The board of fire commissioners shall prepare an annual budget in accordance with the provisions of NRS 354.470 to 354.626, inclusive, for each district organized in accordance with NRS 474.460.
2. Each budget must be based on estimates of the amount of money which will be needed to defray the expenses of the district and to meet unforeseen emergencies and the amount of a fire protection tax that is sufficient, together with the revenue which will result from application of the rate to the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, to raise such sums.
3. At the time of making the levy of county taxes for the year, the board of county commissioners shall levy the tax provided by subsection 2, upon all property, both real and personal, subject to taxation within the boundaries of the district. Any tax levied on interstate or intercounty telephone lines, power lines and other public utility lines as authorized in this section must be based upon valuations established by the Nevada Tax Commission pursuant to the provisions of NRS 361.315 to 361.330, inclusive.
κ2013 Statutes of Nevada, Page 3141 (CHAPTER 495, SB 400)κ
4. The amount of tax to be collected for the purposes of this section must not exceed, in any 1 year, 1 percent of the value of the property described in subsection 3 and any net proceeds [of minerals derived] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, within the boundaries of the district.
5. If levied, the tax must be entered upon the assessment roll and collected in the same manner as state and county taxes. Taxes may be paid in four approximately equal installments at the times specified in NRS 361.483, and the same penalties as specified in NRS 361.483 must be added for failure to pay the taxes.
6. For the purposes of NRS 474.460 to 474.540, inclusive, the treasurer of the district shall keep two separate funds for each district, one to be known as the district fire protection operating fund and one to be known as the district emergency fund. The money collected to defray the expenses of any district organized pursuant to NRS 474.460 must be deposited in the district fire protection operating fund, and the money collected to meet unforeseen emergencies must be deposited in the district emergency fund. The district emergency fund must be used solely for emergencies and must not be used for regular operating expenses. The money deposited in the district emergency fund must not exceed the sum of $1,000,000. Any interest earned on the money in the district emergency fund that causes the balance in that fund to exceed $1,000,000 must be credited to the district fire protection operating fund.
7. For the purposes of subsection 6, an emergency includes, without limitation, any event that:
(a) Causes widespread or severe damage to property or injury to or the death of persons within the district;
(b) As determined by the district fire chief, requires immediate action to protect the health, safety and welfare of persons who reside within the district; and
(c) Requires the district to provide money to obtain a matching grant from an agency of the Federal Government to repair damage caused by a natural disaster that occurred within the district.
Sec. 45. NRS 514A.060 is hereby amended to read as follows:
514A.060 Notwithstanding any other provision of law, the Commission shall provide oversight of compliance with Nevada law relating to the activities of each state agency, board, bureau, commission, department or division with respect to the taxation, operation, safety and environmental regulation of mines and mining in this State, including, without limitation, the activities of:
1. The Nevada Tax Commission and the Department of Taxation in the administration of the provisions of NRS 362.100 to 362.240, inclusive, concerning the taxation of the net proceeds [of minerals pursuant to chapter 362 of NRS and Section 5 of Article 10 of the Nevada Constitution.] from mineral extraction and royalties.
2. The Division of Industrial Relations of the Department of Business and Industry in [administering] the administration of the provisions of chapter 512 of NRS concerning the safe and healthful working conditions at mines.
3. The Commission on Mineral Resources and the Division of Minerals of the Commission in the administration of the provisions of chapters 513 and 522 of NRS concerning the conduct of mining operations and operations for the production of oil, gas and geothermal energy in the State.
κ2013 Statutes of Nevada, Page 3142 (CHAPTER 495, SB 400)κ
and 522 of NRS concerning the conduct of mining operations and operations for the production of oil, gas and geothermal energy in the State.
4. The Bureau of Mines and Geology of the State of Nevada in the Public Service Division of the Nevada System of Higher Education in [its] the administration of the provisions of chapter 514 of NRS.
5. The Division of Environmental Protection of the State Department of Conservation and Natural Resources in [its] the administration of the provisions of chapter 519A of NRS concerning the reclamation of mined land, areas of exploration and former areas of mining or exploration.
Sec. 46. NRS 514A.110 is hereby amended to read as follows:
514A.110 A permanent regulation adopted by the:
1. Nevada Tax Commission, pursuant to NRS 360.090, concerning any taxation related to the extraction of any mineral in this State, including, without limitation, the taxation of the net proceeds from mineral extraction and royalties pursuant to [chapter 362 of NRS and Section 5 of Article 10 of the Nevada Constitution;] NRS 362.100 to 362.240, inclusive;
2. Administrator of the Division of Industrial Relations of the Department of Business and Industry for mine health and safety pursuant to NRS 512.131;
3. Commission on Mineral Resources pursuant to NRS 513.063, 513.094 or 519A.290; and
4. State Environmental Commission pursuant to NRS 519A.160,
Κ is not effective unless it is reviewed by the Mining Oversight and Accountability Commission before it is approved pursuant to chapter 233B of NRS by the Legislative Commission or the Subcommittee to Review Regulations appointed pursuant to subsection 6 of NRS 233B.067. After conducting its review of the regulation, the Mining Oversight and Accountability Commission shall provide a report of its findings and recommendations regarding the regulation to the Legislative Counsel for submission to the Legislative Commission or the Subcommittee to Review Regulations, as appropriate.
Sec. 47. NRS 522.115 is hereby amended to read as follows:
522.115 1. For purposes of determining the respective rights of the lessor and lessee and the owners of a royalty interest, overriding royalty interest and any other nonworking interest in the money earned from an oil and gas lease or other agreement concerning the sale of the production from an oil or gas well located in this state:
(a) The lessee is liable for all of the costs of production, which must be deducted from the working interest.
(b) The lessors interest, the mineral owners royalty interest and the overriding royalty interest must not be decreased by the costs of production.
(c) The following information must be reported with each remittance, unless otherwise reported each month, to the owner of an interest:
(1) The name or number used to identify the lease, property or well;
(2) The month and year during which any sale occurred for which payment is being made;
(3) The total number of barrels of oil or thousands of cubic feet of gas sold;
(4) The price per barrel of oil or the price per thousand cubic feet of gas;
(5) The total amount of state taxes on the net proceeds [of minerals,] from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, taxes ad valorem and other taxes on the production from an oil or gas well, if the payment of those taxes reduces the amount paid to the owner of an interest;
κ2013 Statutes of Nevada, Page 3143 (CHAPTER 495, SB 400)κ
the provisions of NRS 362.100 to 362.240, inclusive, taxes ad valorem and other taxes on the production from an oil or gas well, if the payment of those taxes reduces the amount paid to the owner of an interest;
(6) An itemized list of any other deductions or adjustments that reduce the amount paid to the owner of an interest;
(7) The net value of total sales after deductions or adjustments that reduce the amount paid to the owner of an interest;
(8) The percentage share of the owner of an interest in the sales of the production from the oil or gas well, lease or property as expressed by a decimal number;
(9) The share of the total value attributed to the owner of an interest in the sales of the production from the oil or gas well, lease or property before any deductions or adjustments and after any deductions or adjustments; and
(10) A name and an address where the owner of an interest may receive clarification of the information reported pursuant to this paragraph and additional information concerning the owners interest. If information is requested by certified mail, an answer must be mailed by certified mail within 30 days after receipt of the request.
2. Any person who fails to report information pursuant to paragraph (c) of subsection 1 is liable to the affected owner of an interest, except for the working interest, in the amount of $100 for each violation and $100 for each month that elapses thereafter until the information is provided.
3. As used in this section, the term costs of production means all costs incurred for the exploration and development of, primary or enhanced recovery of oil or gas from, and operations associated with the abandonment of, an oil or gas well, including costs associated with the:
(a) Acquisition of an oil and gas lease;
(b) Drilling and completion of the well;
(c) Pumping or lifting, recycling, gathering, compressing, pressurizing, heater treating, dehydrating, separating and storing of oil or gas; and
(d) Transporting of oil to storage tanks, or gas into the pipeline for delivery.
Κ The term does not include the reasonable and actual direct costs associated with transporting oil from storage tanks to the market, gas from the point of entry into the pipeline to the market or the processing of gas in a processing plant.
Sec. 48. NRS 362.105 is hereby repealed.
Sec. 49. In accordance with Section 6 of Article 10 of the Nevada Constitution and NRS 218D.350, the Legislature hereby finds and declares that each exemption provided by this act from any ad valorem tax on property:
1. Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted;
2. Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged; and
κ2013 Statutes of Nevada, Page 3144 (CHAPTER 495, SB 400)κ
3. Will cease to be effective on the specific date set forth in section 50 of this act.
Sec. 50. 1. Except as otherwise provided in this section, this act becomes effective on November 25, 2014, only if pursuant to Section 1 of Article 16 of the Nevada Constitution, the provisions of Senate Joint Resolution No. 15, which were proposed, agreed to and passed by the 76th Session of the Legislature and published as file number 44, Statutes of Nevada 2011, at page 3871, and which were also agreed to and passed by the 77th Session of the Legislature, are approved and ratified by the voters at the general election on November 4, 2014.
2. If this act becomes effective pursuant to subsection 1:
(a) Sections 13, 15, 19 and 25 of this act become effective on November 25, 2014, only if sections 1, 2, 3 and 5 of chapter 4, Statutes of Nevada 2008, 25th Special Session, at pages 15, 16 and 17, have not expired by limitation on or before that date. If sections 13, 15, 19 and 25 of this act become effective on November 25, 2014, and sections 1, 2, 3 and 5 of chapter 4, Statutes of Nevada 2008, 25th Special Session, at pages 15, 16 and 17, expire by limitation after November 25, 2014, sections 13, 15, 19 and 25 of this act expire by limitation on the day on which sections 1, 2, 3 and 5 of chapter 4, Statutes of Nevada 2008, 25th Special Session, at pages 15, 16 and 17, expire by limitation.
(b) Sections 14, 16, 20 and 26 of this act become effective:
(1) On November 25, 2014, only if sections 13, 15, 19 and 25 of this act do not become effective on November 25, 2014, pursuant to paragraph (a); or
(2) On the day after sections 13, 15, 19 and 25 of this act expire by limitation only if those sections become effective on November 25, 2014, and thereafter expire by limitation pursuant to paragraph (a).
3. If this act becomes effective pursuant to subsection 1:
(a) Section 17 of this act becomes effective on November 25, 2014, only if section 12.7 of chapter 449, Statutes of Nevada 2011, at page 2696, does not become effective on or before that date. If section 17 of this act becomes effective on November 25, 2014, and section 12.7 of chapter 449, Statutes of Nevada 2011, at page 2696, becomes effective after November 25, 2014, section 17 of this act expires by limitation on the day on which section 12.7 of chapter 449, Statutes of Nevada 2011, at page 2696, becomes effective.
(b) Section 18 of this act becomes effective:
(1) On November 25, 2014, only if section 17 of this act does not become effective on November 25, 2014, pursuant to paragraph (a); or
(2) On the day after section 17 of this act expires by limitation only if that section becomes effective on November 25, 2014, and thereafter expires by limitation pursuant to paragraph (a).
4. Sections 2.5 and 2.7 of this act expire by limitation on June 30, 2053.
________
κ2013 Statutes of Nevada, Page 3145κ
Senate Bill No. 407Senators Smith and Woodhouse
Joint Sponsor: Assemblywoman Dondero Loop
CHAPTER 496
[Approved: June 11, 2013]
AN ACT relating to education; revising provisions governing the policies for the evaluation of teachers and school-based administrators; requiring the State Board of Education to prescribe the pupil achievement data to be used in the evaluation of teachers and school-based administrators; requiring the Teachers and Leaders Council of Nevada to make recommendations to the State Board concerning the evaluation of counselors, librarians and other licensed educational personnel; temporarily delaying the implementation of a program of performance pay and enhanced compensation for teachers and administrators by school districts; temporarily delaying the implementation of the statewide performance evaluation system and providing for a validation study of the system for teachers and school-based administrators and a validation study for counselors, librarians and other licensed educational personnel; authorizing a school district to submit an application to the Department of Education to opt out of the delay of the implementation of the statewide performance evaluation system for its teachers and school-based administrators; making an appropriation; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the board of trustees of each school district to establish a program of performance pay and enhanced compensation for licensed teachers and administrators and requires each board to implement the program commencing with the 2014-2015 school year. (NRS 391.168) Section 2 of this bill delays the implementation of the program to the 2015-2016 school year.
Existing law requires that, effective July 1, 2013, the policies for the evaluation of teachers and administrators must: (1) designate an employees overall performance as highly effective, effective, minimally effective or ineffective; and (2) provide that certain information on pupil achievement data maintained by the automated system of accountability information for Nevada must account for at least 50 percent of the evaluation. (NRS 391.3125, 391.3127) Sections 4, 5 and 10 of this bill change the source of the pupil achievement data, upon which 50 percent of the evaluation is based, to data prescribed by the State Board of Education. Sections 4 and 5 also set forth an observation schedule for the evaluation of teachers and administrators based upon the evaluation designation of the employee in the immediately preceding school year. In addition, sections 4 and 5 provide that pupil achievement data must not be used in the evaluation of a probationary teacher or probationary administrator in his or her initial year of employment, with the exception of a postprobationary teacher or administrator who is deemed to be a probationary employee. Section 5 further provides that the policy for the evaluation of administrators applies only to those administrators who primarily provide administrative services at the school level and who do not primarily provide direct instructional services to pupils.
κ2013 Statutes of Nevada, Page 3146 (CHAPTER 496, SB 407)κ
Under existing law, the Teachers and Leaders Council of Nevada is required to make recommendations to the State Board for the establishment of the statewide performance evaluation system for teachers and administrators. (NRS 391.450-391.465) Section 9 of this bill requires the Council to also: (1) make recommendations to the State Board for the evaluation of school counselors, librarians and other licensed educational personnel; and (2) develop and recommend to the State Board a process for peer evaluations of teachers by qualified educational personnel. Section 16 of this bill makes an appropriation to the Teachers and Leaders Council of Nevada for costs associated with the work of the Council.
Sections 16.3-22 of this bill address the period during which the new statewide performance evaluation system will be implemented. Section 19 provides for a validation study of the statewide performance evaluation system for the 2013-2014 school year, with a representative sample of teachers and school-based administrators selected by the Department of Education in consultation with the participating school districts. Sections 17-18.7 provide that for the 2013-2014 school year, all teachers and administrators who are employed by school districts that participate in the validation study and all counselors, librarians and other licensed educational personnel employed by each school district will be evaluated in accordance with the system for evaluations pursuant to which employees are designated as satisfactory or unsatisfactory. Section 16.5 authorizes a school district to submit an application to the Department of Education to opt out of the delay of the statewide performance evaluation system and implement the system for its teachers and administrators commencing with the 2013-2014 school year. Section 16.5 further provides that if such an application is approved by the Department, the school district is not required to participate in the validation study for its teachers and school-based administrators but may, upon approval of the Department, participate in a portion of the validation study. Section 16.3 authorizes the Department of Education to request a work program revision to transfer, in the second year of the biennium, money that is in the Reserve Category to the Regional Professional Development Category for use by the regional training programs for the professional development of teachers and administrators to implement the statewide performance evaluation system. Section 16.3 also requires the Department of Education, on or before August 1, 2014, to submit a report of the results of the validation study and the Departments determination of whether all school districts are prepared to implement the statewide performance evaluation system for the 2014-2015 school year. Section 16.3 further requires the Interim Finance Committee to make a determination whether all school districts are prepared to implement the statewide performance evaluation system for the 2014-2015 school year. If the Interim Finance Committee determines that all school districts are prepared: (1) all school districts that participated in the validation study shall implement the statewide performance evaluation system for its teachers and school-based administrators commencing with the 2014-2015 school year; and (2) the Department of Education may request a work program revision to transfer not more than $1,315,000 for use by the regional training programs. If the Interim Finance Committee determines that all school districts are not prepared: (1) a second validation study of the statewide performance evaluation system for teachers and school-based administrators must be conducted for the 2014-2015 school year; and (2) the Department of Education may request a work program revision to transfer not more than $986,250 for use by the regional training programs. Section 16.7 authorizes a school district that participated in the validation study for the 2013-2014 school year to submit an application to the Department of Education to opt out of the delay of the statewide performance evaluation system and implement the system for its teachers and school-based administrators commencing with the 2014-2015 school year. For the 2014-2015 school year, the Department of Education, in consultation with the 17 school districts, is required to select a representative sample of counselors, librarians and other licensed educational personnel, except for teachers and administrators, to undergo evaluations under the new statewide performance evaluation system in addition to being evaluated under the satisfactory or unsatisfactory system. Commencing with the 2015-2016 school year, all counselors, librarians and other licensed educational personnel are required to be evaluated pursuant to the new statewide performance evaluation system.
κ2013 Statutes of Nevada, Page 3147 (CHAPTER 496, SB 407)κ
counselors, librarians and other licensed educational personnel are required to be evaluated pursuant to the new statewide performance evaluation system. Sections 19 and 21 prohibit the basing of any decisions regarding an employees suspension, demotion, dismissal or refusal to reemploy upon the evaluations conducted as part of either validation study.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 386.650 is hereby amended to read as follows:
386.650 1. The Department shall establish and maintain an automated system of accountability information for Nevada. The system must:
(a) Have the capacity to provide and report information, including, without limitation, the results of the achievement of pupils:
(1) In the manner required by 20 U.S.C. §§ 6301 et seq., and the regulations adopted pursuant thereto, and NRS 385.3469 and 385.347; and
(2) In a separate reporting for each group of pupils identified in paragraph (b) of subsection 1 of NRS 385.361;
(b) Include a system of unique identification for each pupil:
(1) To ensure that individual pupils may be tracked over time throughout this State; and
(2) That, to the extent practicable, may be used for purposes of identifying a pupil for both the public schools and the Nevada System of Higher Education, if that pupil enrolls in the System after graduation from high school;
(c) Have the capacity to provide longitudinal comparisons of the academic achievement, rate of attendance and rate of graduation of pupils over time throughout this State;
(d) Have the capacity to perform a variety of longitudinal analyses of the results of individual pupils on assessments, including, without limitation, the results of pupils by classroom and by school;
(e) Have the capacity to identify which teachers are assigned to individual pupils;
(f) Have the capacity to provide other information concerning schools and school districts that is not linked to individual pupils, including, without limitation, the designation of schools and school districts pursuant to NRS 385.3623 and 385.377, respectively, and an identification of which schools, if any, are persistently dangerous;
(g) Have the capacity to access financial accountability information for each public school, including, without limitation, each charter school, for each school district and for this State as a whole; and
(h) Be designed to improve the ability of the Department, the sponsors of charter schools, the school districts and the public schools in this State, including, without limitation, charter schools, to account for the pupils who are enrolled in the public schools, including, without limitation, charter schools.
Κ The information maintained pursuant to paragraphs (c), (d) and (e) must be used for the purpose of improving the achievement of pupils and improving classroom instruction. [The information] Except as otherwise provided in subsection 9 of NRS 391.3125 and subsection 8 of NRS 391.3127, information on pupil achievement data, as prescribed by the State Board pursuant to NRS 391.465, must account for at least 50 percent, but must not be used as the sole criterion, in evaluating the performance of or taking disciplinary action against an individual teacher or other employee.
κ2013 Statutes of Nevada, Page 3148 (CHAPTER 496, SB 407)κ
State Board pursuant to NRS 391.465, must account for at least 50 percent, but must not be used as the sole criterion, in evaluating the performance of or taking disciplinary action against an individual teacher or other employee.
2. The board of trustees of each school district shall:
(a) Adopt and maintain the program prescribed by the Superintendent of Public Instruction pursuant to subsection 3 for the collection, maintenance and transfer of data from the records of individual pupils to the automated system of information, including, without limitation, the development of plans for the educational technology which is necessary to adopt and maintain the program;
(b) Provide to the Department electronic data concerning pupils as required by the Superintendent of Public Instruction pursuant to subsection 3; and
(c) Ensure that an electronic record is maintained in accordance with subsection 3 of NRS 386.655.
3. The Superintendent of Public Instruction shall:
(a) Prescribe a uniform program throughout this State for the collection, maintenance and transfer of data that each school district must adopt, which must include standardized software;
(b) Prescribe the data to be collected and reported to the Department by each school district and each sponsor of a charter school pursuant to subsection 2 and by each university school for profoundly gifted pupils;
(c) Prescribe the format for the data;
(d) Prescribe the date by which each school district shall report the data to the Department;
(e) Prescribe the date by which each charter school shall report the data to the sponsor of the charter school;
(f) Prescribe the date by which each university school for profoundly gifted pupils shall report the data to the Department;
(g) Prescribe standardized codes for all data elements used within the automated system and all exchanges of data within the automated system, including, without limitation, data concerning:
(1) Individual pupils;
(2) Individual teachers;
(3) Individual schools and school districts; and
(4) Programs and financial information;
(h) Provide technical assistance to each school district to ensure that the data from each public school in the school district, including, without limitation, each charter school and university school for profoundly gifted pupils located within the school district, is compatible with the automated system of information and comparable to the data reported by other school districts; and
(i) Provide for the analysis and reporting of the data in the automated system of information.
4. The Department shall establish, to the extent authorized by the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant thereto, a mechanism by which persons or entities, including, without limitation, state officers who are members of the Executive or Legislative Branch, administrators of public schools and school districts, teachers and other educational personnel, and parents and guardians, will have different types of access to the accountability information contained within the automated system to the extent that such information is necessary for the performance of a duty or to the extent that such information may be made available to the general public without posing a threat to the confidentiality of an individual pupil.
κ2013 Statutes of Nevada, Page 3149 (CHAPTER 496, SB 407)κ
information is necessary for the performance of a duty or to the extent that such information may be made available to the general public without posing a threat to the confidentiality of an individual pupil.
5. The Department may, to the extent authorized by the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant thereto, enter into an agreement with the Nevada System of Higher Education to provide access to data contained within the automated system for research purposes.
Sec. 1.5. Chapter 391 of NRS is hereby amended by adding thereto a new section to read as follows:
On or before August 1 of each year, the board of trustees of each school district shall submit a report to the State Board and the Teachers and Leaders Council of Nevada created by NRS 391.455 concerning the implementation and effectiveness of the process for peer evaluations of teachers set forth in the regulations adopted by the State Board pursuant to paragraph (f) of subsection 2 of NRS 391.465, including, without limitation, any recommendations for revisions to the process of peer evaluations.
Sec. 2. NRS 391.168 is hereby amended to read as follows:
391.168 1. The board of trustees of each school district shall:
(a) Establish a program of performance pay and enhanced compensation for the recruitment and retention of licensed teachers and administrators which must be negotiated pursuant to chapter 288 of NRS; and
(b) Commencing with the [2014-2015] 2015-2016 school year, implement the program established pursuant to paragraph (a).
2. The program of performance pay and enhanced compensation established by a school district pursuant to subsection 1 must have as its primary focus the improvement in the academic achievement of pupils and must give appropriate consideration to implementation in at-risk schools. In addition, the program may include, without limitation, the following components:
(a) Career leadership advancement options to maximize the retention of teachers in the classroom and the retention of administrators;
(b) Professional development;
(c) Group incentives; and
(d) Multiple assessments of individual teachers and administrators, with primary emphasis on individual pupil improvement and growth in academic achievement, including, without limitation, portfolios of instruction, leadership and professional growth, and other appropriate measures of teacher and administrator performance which must be considered.
Sec. 3. NRS 391.3115 is hereby amended to read as follows:
391.3115 1. The demotion, suspension, dismissal and nonreemployment provisions of NRS 391.311 to 391.3197, inclusive, do not apply to:
(a) Substitute teachers; or
(b) Adult education teachers.
2. The admonition, demotion, suspension, dismissal and nonreemployment provisions of NRS 391.311 to 391.3194, inclusive, do not apply to:
(a) A probationary teacher. The policy for evaluations prescribed in NRS 391.3125 and 391.3128 applies to a probationary teacher.
κ2013 Statutes of Nevada, Page 3150 (CHAPTER 496, SB 407)κ
(b) A new employee who is employed as a probationary administrator [.] primarily to provide administrative services at the school level and not primarily to provide direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal. The policy for evaluations prescribed in NRS 391.3127 and 391.3128 applies to such a probationary administrator.
3. The admonition, demotion and suspension provisions of NRS 391.311 to 391.3194, inclusive, do not apply to a postprobationary teacher who is employed as a probationary administrator primarily to provide administrative services at the school level and not primarily to provide direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal, with respect to his or her employment in the administrative position. The policy for evaluations prescribed in NRS 391.3127 and 391.3128 applies to such a probationary administrator.
4. The provisions of NRS 391.311 to 391.3194, inclusive, do not apply to a teacher whose employment is suspended or terminated pursuant to subsection 3 of NRS 391.120 or NRS 391.3015 for failure to maintain a license in force.
5. A licensed employee who is employed in a position fully funded by a federal or private categorical grant or to replace another licensed employee during that employees leave of absence is employed only for the duration of the grant or leave. Such a licensed employee and licensed employees who are employed on temporary contracts for 90 school days or less, or its equivalent in a school district operating under an alternative schedule authorized pursuant to NRS 388.090, to replace licensed employees whose employment has terminated after the beginning of the school year are entitled to credit for that time in fulfilling any period of probation and during that time the provisions of NRS 391.311 to 391.3197, inclusive, for demotion, suspension or dismissal apply to them.
Sec. 4. NRS 391.3125 is hereby amended to read as follows:
391.3125 1. It is the intent of the Legislature that a uniform system be developed for objective evaluation of teachers and other licensed personnel in each school district.
2. Each board, following consultation with and involvement of elected representatives of the teachers or their designees, shall develop a policy for objective evaluations in narrative form. The policy must comply with the statewide performance evaluation system established by the State Board pursuant to NRS 391.465. The policy must set forth a means according to which an employees overall performance is determined to be highly effective, effective, minimally effective or ineffective. [The] Except as otherwise provided in subsection 9, the policy must require that [the information maintained pursuant to paragraphs (c), (d) and (e) of subsection 1 of NRS 386.650] pupil achievement data, as prescribed by the State Board pursuant to NRS 391.465, account for at least 50 percent of the evaluation. The policy may include an evaluation by the teacher, pupils, administrators or other teachers or any combination thereof. In a similar manner, counselors, librarians and other licensed personnel must be evaluated . [on forms developed specifically for their respective specialties.] A copy of the policy adopted by the board must be filed with the Department.
κ2013 Statutes of Nevada, Page 3151 (CHAPTER 496, SB 407)κ
Department. The primary purpose of an evaluation is to provide a format for constructive assistance. Evaluations, while not the sole criterion, must be used in the dismissal process.
3. [A conference and a written evaluation for a probationary employee must be concluded not later than:
(a) December 1;
(b) February 1; and
(c) April 1,
Κ of each school year of the probationary period, except that a probationary employee assigned to a school that operates all year must be evaluated at least three times during each 12 months of employment on a schedule determined by the board. An administrator charged with the evaluation of a probationary teacher shall personally observe the performance of the teacher in the classroom for not less than a cumulative total of 60 minutes during each evaluation period, with at least one observation during that 60-minute evaluation period consisting of at least 45 consecutive minutes.
4. Except as otherwise provided in this subsection, each postprobationary teacher must be evaluated at least once each year.] The person charged with the evaluation of a teacher pursuant to this section shall hold a conference with the teacher before and after each scheduled observation of the teacher during the school year.
4. A probationary teacher must be evaluated three times during each school year of his or her probationary employment. Each evaluation must include at least one scheduled observation of the teacher during the school year as follows:
(a) The first scheduled observation must occur within 40 days after the first day of instruction of the school year;
(b) The second scheduled observation must occur after 40 days but within 80 days after the first day of instruction of the school year; and
(c) The third scheduled observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
5. If a postprobationary teacher receives an evaluation designating his or her overall performance as minimally effective or ineffective, the postprobationary teacher must be evaluated three times in the immediately succeeding school year [. An administrator charged with the evaluation of a postprobationary teacher shall personally observe the performance of the teacher in the classroom for not less than a cumulative total of 60 minutes during each evaluation period, with at least one observation during that 60-minute evaluation period consisting of at least 30 consecutive minutes.] in accordance with the observation schedule set forth in subsection 4. If a postprobationary teacher is evaluated three times in a school year and he or she receives an evaluation designating his or her overall performance as minimally effective or ineffective on the first or second evaluation, or both evaluations, the postprobationary teacher may request that the third evaluation be conducted by another administrator. If a postprobationary teacher requests that his or her third evaluation be conducted by another administrator, that administrator must be:
(a) Employed by the school district or, if the school district has five or fewer administrators, employed by another school district in this State; and
(b) Selected by the postprobationary teacher from a list of three candidates submitted by the superintendent.
κ2013 Statutes of Nevada, Page 3152 (CHAPTER 496, SB 407)κ
[5.] 6. If a postprobationary teacher receives an evaluation designating his or her overall performance as effective, the postprobationary teacher must be evaluated one time in the immediately succeeding school year. The evaluation must include at least two scheduled observations as follows:
(a) The first scheduled observation must occur within 80 days after the first day of instruction of the school year; and
(b) The second scheduled observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
7. If a postprobationary teacher receives an evaluation designating his or her overall performance as highly effective, the postprobationary teacher must be evaluated one time in the immediately succeeding school year. The evaluation must include at least one scheduled observation which must occur within 120 days after the first day of instruction of the school year.
8. The evaluation of a probationary teacher or a postprobationary teacher pursuant to this section must comply with the regulations of the State Board adopted pursuant to NRS 391.465, which must include, without limitation:
(a) An evaluation of the [classroom management skills of the teacher;
(b) A review of the lesson plans and the work log or grade book of pupils prepared by the teacher;
(c) An evaluation of whether the curriculum taught by the teacher is aligned with the standards of content and performance established pursuant to NRS 389.520, as applicable for the grade level taught by the teacher;
(d) An evaluation of whether the teacher is appropriately addressing the needs of the pupils in the classroom, including, without limitation, special educational needs, cultural and ethnic diversity, the needs of pupils enrolled in advanced courses of study and the needs of pupils who are limited English proficient;
(e)] instructional practice of the teacher in the classroom;
(b) An evaluation of the professional responsibilities of the teacher to support learning and promote the effectiveness of the school community;
(c) Except as otherwise provided in subsection 9, an evaluation of the performance of pupils enrolled in the school;
(d) An evaluation of whether the teacher employs practices and strategies to involve and engage the parents and families of pupils in the classroom;
[(f) If necessary, recommendations]
(e) Recommendations for improvements in the performance of the teacher;
[(g)] (f) A description of the action that will be taken to assist the teacher in [correcting any deficiencies reported in the evaluation;] the areas of instructional practice, professional responsibilities and the performance of pupils; and
[(h)] (g) A statement by the administrator who evaluated the teacher indicating the amount of time that the administrator personally observed the performance of the teacher in the classroom.
[6.] 9. The evaluation of a probationary teacher in his or her initial year of employment as a probationary teacher must not include an evaluation of the performance of pupils enrolled in the school. This subsection does not apply to a postprobationary employee who is deemed to be a probationary employee pursuant to NRS 391.3129.
κ2013 Statutes of Nevada, Page 3153 (CHAPTER 496, SB 407)κ
subsection does not apply to a postprobationary employee who is deemed to be a probationary employee pursuant to NRS 391.3129.
10. The teacher must receive a copy of each evaluation not later than 15 days after the evaluation. A copy of the evaluation and the teachers response must be permanently attached to the teachers personnel file. Upon the request of a teacher, a reasonable effort must be made to assist the teacher to [correct those deficiencies] improve his or her performance based upon the recommendations reported in the evaluation of the teacher . [for which the teacher requests assistance.]
Sec. 5. NRS 391.3127 is hereby amended to read as follows:
391.3127 1. Each board, following consultation with and involvement of elected representatives of administrative personnel or their designated representatives, shall develop an objective policy for the objective evaluation of administrators in narrative form. The policy must provide for the evaluation of those administrators who provide primarily administrative services at the school level and who do not provide primarily direct instructional services to pupils, regardless of whether such an administrator is licensed as a teacher or administrator, including, without limitation, a principal and a vice principal. The policy must comply with the statewide performance evaluation system established by the State Board pursuant to NRS 391.465. The policy must set forth a means according to which an administrators overall performance is determined to be highly effective, effective, minimally effective or ineffective. [The] Except as otherwise provided in subsection 8, the policy must require that [the information maintained pursuant to paragraphs (c), (d) and (e) of subsection 1 of NRS 386.650] pupil achievement data, as prescribed by the State Board pursuant to NRS 391.465, account for at least 50 percent of the evaluation. The policy may include an evaluation by the administrator, superintendent, pupils or other administrators or any combination thereof. A copy of the policy adopted by the board must be filed with the Department and made available to the Commission.
2. [Each administrator must be evaluated in writing at least once a year.
3.] The person charged with the evaluation of an administrator pursuant to this section shall hold a conference with the administrator before and after each scheduled observation of the administrator during the school year.
3. A probationary administrator must be evaluated three times during each school year of his or her probationary employment. Each evaluation must include at least one scheduled observation of the probationary administrator during the school year as follows:
(a) The first scheduled observation must occur within 40 days after the first day of instruction of the school year;
(b) The second scheduled observation must occur after 40 days but within 80 days after the first day of instruction of the school year; and
(c) The third scheduled observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
4. If a postprobationary administrator receives an evaluation designating his or her overall performance as minimally effective or ineffective, the postprobationary administrator must be evaluated three times in the immediately succeeding school year in accordance with the observation schedule set forth in subsection 3. If a postprobationary administrator is evaluated three times in a school year and he or she receives an evaluation designating his or her overall performance as minimally effective or ineffective on the first or second evaluation, or both evaluations, the postprobationary administrator may request that the third evaluation be conducted by another administrator.
κ2013 Statutes of Nevada, Page 3154 (CHAPTER 496, SB 407)κ
receives an evaluation designating his or her overall performance as minimally effective or ineffective on the first or second evaluation, or both evaluations, the postprobationary administrator may request that the third evaluation be conducted by another administrator. If a postprobationary administrator requests that his or her third evaluation be conducted by another administrator, that administrator must be:
(a) Employed by the school district or, if the school district has five or fewer administrators, employed by another school district in this State; and
(b) Selected by the postprobationary administrator from a list of three candidates submitted by the superintendent.
5. If a postprobationary administrator receives an evaluation designating his or her overall performance as effective, the postprobationary administrator must be evaluated one time in the immediately succeeding school year. The evaluation must include at least two scheduled observations as follows:
(a) The first scheduled observation must occur within 80 days after the first day of instruction of the school year; and
(b) The second scheduled observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
6. If a postprobationary administrator receives an evaluation designating his or her overall performance as highly effective, the postprobationary administrator must be evaluated one time in the immediately succeeding school year. The evaluation must include at least one scheduled observation which must occur within 120 days after the first day of instruction of the school year.
7. The evaluation of an administrator pursuant to this section must comply with the regulations of the State Board adopted pursuant to NRS 391.465, which must include, without limitation:
(a) An evaluation of the instructional leadership practices of the administrator at the school;
(b) An evaluation of the professional responsibilities of the administrator to support learning and promote the effectiveness of the school community;
(c) Except as otherwise provided in subsection 8, an evaluation of the performance of pupils enrolled in the school;
(d) An evaluation of whether the administrator employs practices and strategies to involve and engage the parents and families of pupils enrolled in the school;
(e) Recommendations for improvements in the performance of the administrator; and
(f) A description of the action that will be taken to assist the administrator in the areas of instructional leadership practice, professional responsibilities and the performance of pupils.
8. The evaluation of a probationary administrator in his or her initial year of probationary employment must not include an evaluation of the performance of pupils enrolled in the school. This subsection does not apply to a postprobationary employee who is deemed to be a probationary employee pursuant to NRS 391.3129.
9. Each probationary administrator is subject to the provisions of NRS 391.3128 and 391.3197.
[4.] 10. Before a superintendent transfers or assigns an administrator to another administrative position as part of an administrative reorganization, if the transfer or reassignment is to a position of lower rank, responsibility or pay, the superintendent shall give written notice of the proposed transfer or assignment to the administrator at least 30 days before the date on which it is to be effective.
κ2013 Statutes of Nevada, Page 3155 (CHAPTER 496, SB 407)κ
the transfer or reassignment is to a position of lower rank, responsibility or pay, the superintendent shall give written notice of the proposed transfer or assignment to the administrator at least 30 days before the date on which it is to be effective. The administrator may appeal the decision of the superintendent to the board by requesting a hearing in writing to the president of the board within 5 days after receiving the notice from the superintendent. The board shall hear the matter within 10 days after the president receives the request, and shall render its decision within 5 days after the hearing. The decision of the board is final.
Sec. 6. NRS 391.3128 is hereby amended to read as follows:
391.3128 1. If a written evaluation of a probationary teacher , or a probationary administrator who provides primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether the probationary administrator is licensed as a teacher or administrator, including, without limitation, a principal and vice principal, designates the overall performance of the teacher or administrator as minimally effective or ineffective:
(a) The written evaluation must include the following statement: Please be advised that, pursuant to Nevada law, your contract may not be renewed for the next school year. If you receive a minimally effective or ineffective evaluation on the first or second evaluation, or both evaluations for this school year, [and if you have another evaluation remaining this school year,] you may request that the third evaluation be conducted by another administrator. You may also request, to the administrator who conducted the evaluation, reasonable assistance in [correcting the deficiencies] improving your performance based upon the recommendations reported in the evaluation for which you request assistance, and upon such request, a reasonable effort will be made to assist you in [correcting those deficiencies.] improving your performance.
(b) The probationary teacher or probationary administrator, as applicable, must acknowledge in writing that he or she has received and understands the statement described in paragraph (a).
2. If a probationary teacher or probationary administrator to which subsection 1 applies requests that his or her next evaluation be conducted by another administrator in accordance with the notice required by subsection 1, the administrator conducting the evaluation must be:
(a) Employed by the school district or, if the school district has five or fewer administrators, employed by another school district in this State; and
(b) Selected by the probationary teacher or probationary administrator, as applicable, from a list of three candidates submitted by the superintendent.
3. If a probationary teacher or probationary administrator to which subsection 1 applies requests assistance in correcting deficiencies reported in his or her evaluation, the administrator who conducted the evaluation shall ensure that a reasonable effort is made to assist the probationary teacher or probationary administrator in correcting those deficiencies.
Sec. 7. (Deleted by amendment.)
Sec. 8. NRS 391.3197 is hereby amended to read as follows:
391.3197 1. A probationary employee is employed on a contract basis for three 1-year periods and has no right to employment after any of the three probationary contract years.
2. The board shall notify each probationary employee in writing on or before May 1 of the first, second and third school years of the employees probationary period, as appropriate, whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee.
κ2013 Statutes of Nevada, Page 3156 (CHAPTER 496, SB 407)κ
probationary period, as appropriate, whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee. Failure of the board to notify the probationary employee in writing on or before May 1 in the first or second year of the probationary period does not entitle the employee to postprobationary status. The employee must advise the board in writing on or before May 10 of the first, second or third year of the employees probationary period, as appropriate, of the employees acceptance of reemployment. If a probationary employee is assigned to a school that operates all year, the board shall notify the employee in writing, in the first, second and third years of the employees probationary period, no later than 45 days before his or her last day of work for the year under his or her contract whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee. Failure of the board to notify a probationary employee in writing within the prescribed period in the first or second year of the probationary period does not entitle the employee to postprobationary status. The employee must advise the board in writing within 10 days after the date of notification of his or her acceptance or rejection of reemployment for another year. Failure to advise the board of the employees acceptance of reemployment pursuant to this subsection constitutes rejection of the contract.
3. A probationary employee who:
(a) Completes a 3-year probationary period;
(b) Receives a designation of highly effective or effective on each of his or her performance evaluations for 2 consecutive school years; and
(c) Receives a notice of reemployment from the school district in the third year of the employees probationary period,
Κ is entitled to be a postprobationary employee in the ensuing year of employment.
4. If a probationary employee is notified that the employee will not be reemployed for the school year following the 3-year probationary period, his or her employment ends on the last day of the current school year. The notice that the employee will not be reemployed must include a statement of the reasons for that decision.
5. A new employee who is employed as an administrator to provide primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether the administrator is licensed as a teacher or administrator, including, without limitation, a principal and vice principal, or a postprobationary teacher who is employed as an administrator to provide those administrative services shall be deemed to be a probationary employee for the purposes of this section and must serve a 3-year probationary period as an administrator in accordance with the provisions of this section. If:
(a) A postprobationary teacher who is an administrator is not reemployed as an administrator after any year of his or her probationary period; and
(b) There is a position as a teacher available for the ensuing school year in the school district in which the person is employed,
Κ the board of trustees of the school district shall, on or before May 1, offer the person a contract as a teacher for the ensuing school year. The person may accept the contract in writing on or before May 10.
κ2013 Statutes of Nevada, Page 3157 (CHAPTER 496, SB 407)κ
may accept the contract in writing on or before May 10. If the person fails to accept the contract as a teacher, the person shall be deemed to have rejected the offer of a contract as a teacher.
6. An administrator who has completed his or her probationary period pursuant to subsection 5 and is thereafter promoted to the position of principal must serve an additional probationary period of 1 year in the position of principal. If an administrator is promoted to the position of principal before completion of his or her probationary period pursuant to subsection 5, the administrator must serve the remainder of his or her probationary period pursuant to subsection 5 or an additional probationary period of 1 year in the position of principal, whichever is longer. If the administrator serving the additional probationary period is not reemployed as a principal after the expiration of the probationary period or additional probationary period, as applicable, the board of trustees of the school district in which the person is employed shall, on or before May 1, offer the person a contract for the ensuing school year for the administrative position in which the person attained postprobationary status. The person may accept the contract in writing on or before May 10. If the person fails to accept such a contract, the person shall be deemed to have rejected the offer of employment.
7. If a probationary employee receives notice that he or she will be dismissed before the completion of the current school year, the probationary employee may request an expedited hearing pursuant to the Expedited Labor Arbitration Procedures established by the American Arbitration Association or its successor organization.
Sec. 8.5. NRS 391.450 is hereby amended to read as follows:
391.450 As used in NRS 391.450 to 391.465, inclusive, and section 1.5 of this act, Council means the Teachers and Leaders Council of Nevada created by NRS 391.455.
Sec. 9. NRS 391.460 is hereby amended to read as follows:
391.460 1. The Council shall:
(a) Make recommendations to the State Board concerning the adoption of regulations for establishing a statewide performance evaluation system to ensure that teachers , [and] administrators who provide primarily administrative services at the school level and who do not provide primarily direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal, counselors, librarians and other licensed educational personnel employed by school districts are:
(1) Evaluated using multiple, fair, timely, rigorous and valid methods, which includes evaluations based upon pupil achievement data as required by NRS [386.650 and] 391.465;
(2) Afforded a meaningful opportunity to improve their effectiveness through professional development that is linked to their evaluations; and
(3) Provided with the means to share effective educational methods with other teachers , [and] administrators , counselors, librarians and other licensed educational personnel throughout this State.
(b) Develop and recommend to the State Board a plan, including duties and associated costs, for the development and implementation of the performance evaluation system by the Department and school districts.
(c) Consider the role of professional standards for teachers , [and] administrators to which paragraph (a) applies, counselors, librarians and other licensed educational personnel and, as it determines appropriate, develop a plan for recommending the adoption of such standards by the State Board.
κ2013 Statutes of Nevada, Page 3158 (CHAPTER 496, SB 407)κ
other licensed educational personnel and, as it determines appropriate, develop a plan for recommending the adoption of such standards by the State Board.
(d) Develop and recommend to the State Board a process for peer evaluations of teachers by qualified educational personnel which is designed to provide assistance to teachers in meeting the standards of effective teaching, and includes, without limitation, conducting observations, participating in conferences before and after observations of the teacher and providing information and resources to the teacher about strategies for effective teaching.
2. The performance evaluation system recommended by the Council must ensure that:
(a) Data derived from the evaluations is used to create professional development programs that enhance the effectiveness of teachers , [and] administrators [;] , counselors, librarians and other licensed educational personnel; and
(b) A timeline is included for monitoring the performance evaluation system at least annually for quality, reliability, validity, fairness, consistency and objectivity.
3. The Council may establish such working groups, task forces and similar entities from within or outside its membership as necessary to address specific issues or otherwise to assist in its work.
4. The State Board shall consider the recommendations made by the Council pursuant to this section and shall adopt regulations establishing a statewide performance evaluation system as required by NRS 391.465.
Sec. 10. NRS 391.465 is hereby amended to read as follows:
391.465 1. The State Board shall, based upon the recommendations of the Teachers and Leaders Council of Nevada submitted pursuant to NRS 391.460, adopt regulations establishing a statewide performance evaluation system which incorporates multiple measures of an employees performance.
2. The statewide performance evaluation system must:
(a) Require that an employees overall performance is determined to be:
(1) Highly effective;
(2) Effective;
(3) Minimally effective; or
(4) Ineffective.
(b) Include the criteria for making each designation identified in paragraph (a).
(c) [Require] Except as otherwise provided in subsection 9 of NRS 391.3125 and subsection 8 of NRS 391.3127, require that [the information maintained pursuant to paragraphs (c), (d) and (e) of subsection 1 of NRS 386.650] pupil achievement data account for at least 50 percent of the evaluation.
(d) Prescribe the pupil achievement data that must be used as part of the evaluation system pursuant to paragraph (c).
(e) Include an evaluation of whether the teacher , or administrator who provides primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether the probationary administrator is licensed as a teacher or administrator, including, without limitation, a principal and vice principal, employs practices and strategies to involve and engage the parents and families of pupils.
κ2013 Statutes of Nevada, Page 3159 (CHAPTER 496, SB 407)κ
(f) Include a process for peer evaluations of teachers by qualified educational personnel which is designed to provide assistance to teachers in meeting the standards of effective teaching, and includes, without limitation, conducting observations, participating in conferences before and after observations of the teacher and providing information and resources to the teacher about strategies for effective teaching. The regulations must include the criteria for school districts to determine which educational personnel are qualified to conduct peer reviews pursuant to the process.
Sec. 11. Section 22 of chapter 379, Statutes of Nevada 2011, at page 2298, is hereby amended to read as follows:
Sec. 22. The board of trustees of each school district shall:
1. Commencing with the [2013-2104] 2013-2014 school year, implement and carry out the policies for evaluations of teachers and administrators required by NRS 391.3125, as amended by section 14 of this act, NRS 391.3127, as amended by section 16 of this act, NRS 391.3197, as amended by section 19.5 of this act, and section 20 of this act.
2. Commencing with the 2013-2014 school year, implement and carry out section 20.5 of this act . [if, and only if, Assembly Bill No. 225 of this session is enacted by the Legislature and becomes effective.]
3. Commencing with the [2014-2015] 2015-2016 school year, implement and carry out the program of performance pay and enhanced compensation established by the board of trustees pursuant to section 8 of this act.
Sec. 12. Section 23 of chapter 379, Statutes of Nevada 2011, at page 2298, is hereby amended to read as follows:
Sec. 23. 1. This section and sections 1 to 7, inclusive, 9 to 13, inclusive, 15, 17, 18, 19, 19.6, 19.7, 19.8, 21 and 22 of this act become effective on July 1, 2011.
2. Sections 8, 14, 16, 19.5 [and] , 20 and 20.5 of this act become effective on July 1, 2013.
[3. Section 20.5 of this act becomes effective on July 1, 2013, if, and only if, Assembly Bill No. 225 of this session is enacted by the Legislature and becomes effective.]
Sec. 13. Section 12 of chapter 487, Statutes of Nevada 2011, at page 3095, is hereby amended to read as follows:
Sec. 12. On or before [June 1,] August 15, 2013, the State Board of Education shall, based upon the recommendations of the Teachers and Leaders Council of Nevada submitted pursuant to section 6 of this act, adopt regulations establishing a statewide performance evaluation system for teachers and administrators that complies with section 7 of this act.
Sec. 14. (Deleted by amendment.)
Sec. 15. Section 21 of chapter 379, Statutes of Nevada 2011, at page 2298, is hereby repealed.
Sec. 16. 1. There is hereby appropriated from the Educational Trust Account in the State General Fund created by NRS 120A.610 to the Department of Education for the costs associated with the work of the Teachers and Leaders Council of Nevada created by NRS 391.455 required by the provisions of this act the following sums:
κ2013 Statutes of Nevada, Page 3160 (CHAPTER 496, SB 407)κ
For the Fiscal Year 2013-2014....................................................... $50,000
For the Fiscal Year 2014-2015....................................................... $50,000
2. The sums appropriated by subsection 1 are available for either fiscal year. Any remaining balance of those sums must not be committed for expenditure after June 30, 2015, by the Department of Education or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 18, 2015, by either the Department of Education or the entity to which the money was subsequently granted or transferred, and must be reverted to the Educational Trust Account in the State General Fund on or before September 18, 2015.
Sec. 16.3. 1. On or before August 1, 2014, the Department of Education shall submit a report to the Interim Finance Committee which includes, without limitation:
(a) An assessment of the results of the validation study of the statewide performance evaluation system conducted pursuant to section 19 of this act;
(b) The effectiveness of each school district that participated in the validation study in implementing the statewide performance evaluation system; and
(c) The determination of the Department whether all school districts that participated in the validation study are prepared, commencing with the 2014-2015 school year, to implement the statewide performance evaluation system for all of its teachers and administrators.
2. On or before August 15, 2014, the Interim Finance Committee shall review the report submitted by the Department of Education pursuant to subsection 1 and make a determination whether all school districts that participated in the validation study are prepared to implement the statewide performance evaluation system for all of its teachers and administrators commencing with the 2014-2015 school year.
3. If the Interim Finance Committee determines that all school districts which participated in the validation study are prepared to implement, during the 2014-2015 school year, the statewide performance evaluation system:
(a) All school districts that participated in the validation study shall implement the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, for its teachers and administrators commencing with the 2014-2015 school year and each school year thereafter.
(b) The Department of Education may request a work program revision pursuant to NRS 353.220 to transfer not more than $1,315,000 from the Reserve Category to the Regional Professional Development Category in the Account for Programs for Innovation and the Prevention of Remediation created by NRS 385.379 for use by the regional training programs for the professional development of teachers and administrators to implement the statewide performance evaluation system.
4. If the Interim Finance Committee determines that all school districts that participated in the validation study are not prepared to implement, during the 2014-2015 school year, the statewide performance evaluation system:
(a) Except as otherwise provided in section 16.7 of this act, all school districts that participated in the validation study shall comply with the policies for the evaluations of teachers and administrators prescribed by sections 17 and 18 of this act for the 2014-2015 school year and also participate in a second validation study of the statewide performance evaluation system for that school year pursuant to section 19 of this act.
κ2013 Statutes of Nevada, Page 3161 (CHAPTER 496, SB 407)κ
participate in a second validation study of the statewide performance evaluation system for that school year pursuant to section 19 of this act.
(b) The Department of Education may request a work program revision pursuant to NRS 353.220 to transfer not more than $986,250 from the Reserve Category to the Regional Professional Development Category in the Account for Programs for Innovation and the Prevention of Remediation created by NRS 385.379 for use by the regional training programs for the professional development of teachers and administrators to implement the statewide performance evaluation system.
5. On or before September 1, 2014, the Department of Education shall provide notice to the board of trustees of each school district concerning the determination made by the Interim Finance Committee pursuant to subsection 2.
6. As used in this section, administrator means an administrator employed by a school district who provides primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal.
Sec. 16.5. 1. The board of trustees of a school district that is prepared, commencing with the 2013-2014 school year, to implement the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, for its teachers and administrators and does not want to delay the implementation of the evaluation system may submit an application on a form prescribed by the Department of Education which includes information demonstrating that the school district is prepared to implement the statewide performance evaluation system for all of its teachers and administrators and any other information requested by the Department.
2. Upon review of the application submitted pursuant to subsection 1, the Department of Education may approve the application if the Department determines that the school district is prepared to implement the statewide performance evaluation system commencing with the 2013-2014 school year and each school year thereafter.
3. A school district whose application is approved by the Department pursuant to subsection 2 is not required to participate in the validation study of the statewide performance evaluation system conducted pursuant to section 19 of this act during the 2013-2014 school year and, if applicable, the 2014-2015 school year. Upon the request of such a school district, the Department may authorize the school district to participate in a portion of the validation study.
4. As used in this section, administrator means an administrator employed by a school district who provides primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal.
Sec. 16.7. 1. If the Interim Finance Committee makes a determination pursuant to section 16.3 of this act that all school districts which participated in the validation study pursuant to section 19 of this act are not prepared to implement the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, the board of trustees of a school district that participated in the validation study and that is prepared, commencing with the 2014-2015 school year, to implement the statewide performance evaluation system for its teachers and administrators and does not want to delay the implementation of the evaluation system may submit an application on a form prescribed by the Department of Education which includes information demonstrating that the school district is prepared to implement the evaluation system for all of its teachers and administrators and any other information requested by the Department.
κ2013 Statutes of Nevada, Page 3162 (CHAPTER 496, SB 407)κ
with the 2014-2015 school year, to implement the statewide performance evaluation system for its teachers and administrators and does not want to delay the implementation of the evaluation system may submit an application on a form prescribed by the Department of Education which includes information demonstrating that the school district is prepared to implement the evaluation system for all of its teachers and administrators and any other information requested by the Department.
2. Upon review of the application submitted pursuant to subsection 1, the Department of Education may approve the application if the Department determines that the school district is prepared to implement the statewide performance evaluation system commencing with the 2014-2015 school year.
3. A school district whose application is approved by the Department pursuant to subsection 2 is not required to participate in the validation study of the statewide performance evaluation system conducted pursuant to section 19 of this act for the 2014-2015 school year. Upon the request of such a school district, the Department may authorize the school district to participate in a portion of the validation study.
4. As used in this section, administrator means an administrator employed by a school district who provides primarily administrative services at the school level and who does not provide primarily direct instructional services to pupils, regardless of whether licensed as a teacher or administrator, including, without limitation, a principal and vice principal.
Sec. 17. 1. It is the intent of the Legislature that a uniform system be developed for objective evaluation of teachers and other licensed personnel in each school district. Except as otherwise provided in section 16.5 of this act, for the 2013-2014 school year, the board of trustees of each school district shall comply with the policy for the evaluation of teachers, counselors, librarians and other licensed educational personnel, except for administrators, as set forth in this section. For the 2014-2015 school year, the board of trustees of each school district shall comply with the policy for the evaluation of counselors, librarians and other licensed educational personnel, except for teachers and administrators, as set forth in this section.
2. Except as otherwise provided in sections 16.5 and 16.7 of this act, if the Interim Finance Committee makes a determination pursuant to section 16.3 of this act that all school districts which participated in the validation study of the statewide performance evaluation system pursuant to section 19 of this act are not prepared to implement the evaluation system, the board of trustees of each school district shall, for the 2014-2015 school year, comply with the policy for the evaluation of teachers as set forth in this section.
3. Each board of trustees, following consultation with and involvement of elected representatives of the teachers or their designees, shall develop a policy for objective evaluations in narrative form. The policy must set forth a means according to which an employees overall performance may be determined to be satisfactory or unsatisfactory. The policy must require that the information maintained pursuant to paragraphs (c), (d) and (e) of subsection 1 of NRS 386.650 account for a significant portion of the evaluation, as determined by the board of trustees. The policy may include an evaluation by the teacher, pupils, administrators or other teachers or any combination thereof. In a similar manner, counselors, librarians and other licensed personnel must be evaluated on forms developed specifically for their respective specialties. A copy of the policy adopted by the board of trustees must be filed with the Department of Education.
κ2013 Statutes of Nevada, Page 3163 (CHAPTER 496, SB 407)κ
trustees must be filed with the Department of Education. The primary purpose of an evaluation is to provide a format for constructive assistance. Evaluations, while not the sole criterion, must be used in the dismissal process.
4. A conference and a written evaluation for a probationary employee must be concluded not later than:
(a) December 1;
(b) February 1; and
(c) April 1,
Κ of each school year of the probationary period, except that a probationary employee assigned to a school that operates all year must be evaluated at least three times during each 12 months of employment on a schedule determined by the board of trustees. An administrator charged with the evaluation of a probationary teacher shall personally observe the performance of the teacher in the classroom for not less than a cumulative total of 60 minutes during each evaluation period, with at least one observation during that 60-minute evaluation period consisting of at least 45 consecutive minutes.
5. Except as otherwise provided in this subsection, each postprobationary teacher must be evaluated at least once each year. If a postprobationary teacher receives an unsatisfactory evaluation, the postprobationary teacher must be evaluated three times in the immediately succeeding school year. An administrator charged with the evaluation of a postprobationary teacher shall personally observe the performance of the teacher in the classroom for not less than a cumulative total of 60 minutes during each evaluation period, with at least one observation during that 60-minute evaluation period consisting of at least 30 consecutive minutes. If a postprobationary teacher is evaluated three times in a school year and he or she receives an unsatisfactory evaluation on the first or second evaluation, or both evaluations, the postprobationary teacher may request that the third evaluation be conducted by another administrator. If a postprobationary teacher requests that his or her third evaluation be conducted by another administrator, that administrator must be:
(a) Employed by the school district or, if the school district has five or fewer administrators, employed by another school district in this State; and
(b) Selected by the postprobationary teacher from a list of three candidates submitted by the superintendent.
6. The evaluation of a probationary teacher or a postprobationary teacher must include, without limitation:
(a) An evaluation of the classroom management skills of the teacher;
(b) A review of the lesson plans and the work log or grade book of pupils prepared by the teacher;
(c) An evaluation of whether the curriculum taught by the teacher is aligned with the standards of content and performance established pursuant to NRS 389.520, as applicable for the grade level taught by the teacher;
(d) An evaluation of whether the teacher is appropriately addressing the needs of the pupils in the classroom, including, without limitation, special educational needs, cultural and ethnic diversity, the needs of pupils enrolled in advanced courses of study and the needs of pupils who are limited English proficient;
(e) If necessary, recommendations for improvements in the performance of the teacher;
κ2013 Statutes of Nevada, Page 3164 (CHAPTER 496, SB 407)κ
(f) A description of the action that will be taken to assist the teacher in correcting any deficiencies reported in the evaluation; and
(g) A statement by the administrator who evaluated the teacher indicating the amount of time that the administrator personally observed the performance of the teacher in the classroom.
7. The teacher must receive a copy of each evaluation not later than 15 days after the evaluation. A copy of the evaluation and the teachers response must be permanently attached to the teachers personnel file. Upon the request of a teacher, a reasonable effort must be made to assist the teacher to correct those deficiencies reported in the evaluation of the teacher for which the teacher requests assistance.
Sec. 18. 1. Except as otherwise provided in section 16.5 of this act, for the 2013-2014 school year, the board of trustees of each school district shall comply with the policy for the evaluation of administrators as set forth in this section. Except as otherwise provided in sections 16.5 and 16.7 of this act, if the Interim Finance Committee makes a determination pursuant to section 16.3 of this act that all school districts which participated in the validation study of the statewide performance evaluation system pursuant to section 19 of this act are not prepared to implement the evaluation system, the board of trustees of each school district shall, for the 2014-2015 school year, comply with the policy for the evaluation of administrators as set forth in this section.
2. Each board of trustees, following consultation with and involvement of elected representatives of administrative personnel or their designated representatives, shall develop an objective policy for the objective evaluation of administrators in narrative form. The policy must set forth a means according to which an administrators overall performance may be determined to be satisfactory or unsatisfactory. The policy must require that the information maintained pursuant to paragraphs (c), (d) and (e) of subsection 1 of NRS 386.650 account for a significant portion of the evaluation, as determined by the board of trustees. The policy may include an evaluation by the administrator, superintendent, pupils or other administrators or any combination thereof. A copy of the policy adopted by the board of trustees must be filed with the Department of Education and made available to the Commission on Professional Standards in Education.
3. Each administrator must be evaluated in writing at least once a year.
4. Each probationary administrator is subject to the provisions of NRS 391.3128 and 391.3197.
5. Before a superintendent of a school district transfers or assigns an administrator to another administrative position as part of an administrative reorganization, if the transfer or reassignment is to a position of lower rank, responsibility or pay, the superintendent shall give written notice of the proposed transfer or assignment to the administrator at least 30 days before the date on which it is to be effective. The administrator may appeal the decision of the superintendent to the board of trustees by requesting a hearing in writing to the president of the board within 5 days after receiving the notice from the superintendent. The board of trustees shall hear the matter within 10 days after the president receives the request, and shall render its decision within 5 days after the hearing. The decision of the board of trustees is final.
κ2013 Statutes of Nevada, Page 3165 (CHAPTER 496, SB 407)κ
Sec. 18.5. 1. If a written evaluation of a probationary teacher or probationary administrator who is employed by a school district that conducts evaluations pursuant to sections 17 and 18 of this act for the 2013-2014 school year or the 2014-2015 school year, or both, designates the overall performance of the teacher or administrator as unsatisfactory:
(a) The written evaluation must include the following statement: Please be advised that, pursuant to Nevada law, your contract may not be renewed for the next school year. If you receive an unsatisfactory evaluation on the first or second evaluation, or both evaluations for this school year, and if you have another evaluation remaining this school year, you may request that the evaluation be conducted by another administrator. You may also request, to the administrator who conducted the evaluation, reasonable assistance in correcting the deficiencies reported in the evaluation for which you request assistance, and upon such request, a reasonable effort will be made to assist you in correcting those deficiencies.
(b) The probationary teacher or probationary administrator, as applicable, must acknowledge in writing that he or she has received and understands the statement described in paragraph (a).
2. If a probationary teacher or probationary administrator requests that his or her next evaluation be conducted by another administrator in accordance with the notice required by subsection 1, the administrator conducting the evaluation must be:
(a) Employed by the school district or, if the school district has five or fewer administrators, employed by another school district in this State; and
(b) Selected by the probationary teacher or probationary administrator, as applicable, from a list of three candidates submitted by the superintendent.
3. If a probationary teacher or probationary administrator requests assistance in correcting deficiencies reported in his or her evaluation, the administrator who conducted the evaluation shall ensure that a reasonable effort is made to assist the probationary teacher or probationary administrator in correcting those deficiencies.
Sec. 18.7. 1. The provisions of this section apply to probationary employees who are employed by a school district that conducts evaluations pursuant to sections 17 and 18 of this act for the 2013-2014 school year or the 2014-2015 school year, or both, for each school year that the school district conducts evaluations pursuant to those sections.
2. A probationary employee is employed on a contract basis for three 1-year periods and has no right to employment after any of the three probationary contract years.
3. The board shall notify each probationary employee in writing on or before May 1 of the first, second and third school years of the employees probationary period, as appropriate, whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee. Failure of the board to notify the probationary employee in writing on or before May 1 in the first or second year of the probationary period does not entitle the employee to postprobationary status. The employee must advise the board in writing on or before May 10 of the first, second or third year of the employees probationary period, as appropriate, of the employees acceptance of reemployment. If a probationary employee is assigned to a school that operates all year, the board shall notify the employee in writing, in the first, second and third years of the employees probationary period, not later than 45 days before his or her last day of work for the year under his or her contract whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee.
κ2013 Statutes of Nevada, Page 3166 (CHAPTER 496, SB 407)κ
second and third years of the employees probationary period, not later than 45 days before his or her last day of work for the year under his or her contract whether the employee is to be reemployed for the second or third year of the probationary period or for the fourth school year as a postprobationary employee. Failure of the board to notify a probationary employee in writing within the prescribed period in the first or second year of the probationary period does not entitle the employee to postprobationary status. The employee must advise the board in writing within 10 days after the date of notification of his or her acceptance or rejection of reemployment for another year. Failure to advise the board of the employees acceptance of reemployment pursuant to this subsection constitutes rejection of the contract.
4. A probationary employee who:
(a) Completes a 3-year probationary period;
(b) Receives a designation of satisfactory on each of his or her performance evaluations for 2 consecutive school years; and
(c) Receives a notice of reemployment from the school district in the third year of the employees probationary period,
Κ is entitled to be a postprobationary employee in the ensuing year of employment.
5. If a probationary employee is notified that the employee will not be reemployed for the school year following the 3-year probationary period, his or her employment ends on the last day of the current school year. The notice that the employee will not be reemployed must include a statement of the reasons for that decision.
6. A new employee who is employed as an administrator or a postprobationary teacher who is employed as an administrator shall be deemed to be a probationary employee for the purposes of this section and must serve a 3-year probationary period as an administrator in accordance with the provisions of this section. If:
(a) A postprobationary teacher who is an administrator is not reemployed as an administrator after any year of his or her probationary period; and
(b) There is a position as a teacher available for the ensuing school year in the school district in which the person is employed,
Κ the board of trustees of the school district shall, on or before May 1, offer the person a contract as a teacher for the ensuing school year. The person may accept the contract in writing on or before May 10. If the person fails to accept the contract as a teacher, the person shall be deemed to have rejected the offer of a contract as a teacher.
7. An administrator who has completed his or her probationary period pursuant to subsection 6 and is thereafter promoted to the position of principal must serve an additional probationary period of 1 year in the position of principal. If an administrator is promoted to the position of principal before completion of his or her probationary period pursuant to subsection 6, the administrator must serve the remainder of his or her probationary period pursuant to subsection 6 or an additional probationary period of 1 year in the position of principal, whichever is longer. If the administrator serving the additional probationary period is not reemployed as a principal after the expiration of the probationary period or additional probationary period, as applicable, the board of trustees of the school district in which the person is employed shall, on or before May 1, offer the person a contract for the ensuing school year for the administrative position in which the person attained postprobationary status.
κ2013 Statutes of Nevada, Page 3167 (CHAPTER 496, SB 407)κ
the person attained postprobationary status. The person may accept the contract in writing on or before May 10. If the person fails to accept such a contract, the person shall be deemed to have rejected the offer of employment.
8. If a probationary employee receives notice that he or she will be dismissed before the completion of the current school year, the probationary employee may request an expedited hearing pursuant to the Expedited Labor Arbitration Procedures established by the American Arbitration Association or its successor organization.
Sec. 19. 1. Except as otherwise provided by section 16.5 of this act, each school district shall participate in the validation study of the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, for the 2013-2014 school year. Except as otherwise provided in sections 16.5 and 16.7 of this act, if the Interim Finance Committee makes a determination pursuant to section 16.3 of this act that all school districts which participated in the validation study of the statewide performance evaluation system for the 2013-2014 school year are not prepared to implement the evaluation system, those school districts must participate in a second validation study of the evaluation system for the 2014-2015 school year.
2. On or before August 1, 2013, and, if applicable, on or before August 1, 2014, the Department of Education shall, in consultation with the boards of trustees of the school districts that do not have an application approved by the Department to opt out of the delay of the implementation of the statewide performance evaluation system pursuant to section 16.5 or 16.7 of this act, as applicable, select a representative sample of teachers and administrators for a validation study of the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act. In addition, if the Department has approved a school district that opted out of the delay of the implementation of the statewide performance evaluation system to participate in a portion of the validation study, the Department shall, in consultation with that school district, select a representative sample of teachers and administrators for the portion of the validation study the Department has approved for the school districts participation. The administrators selected for the validation study must provide primarily administrative services at the school level and not provide primarily direct instructional services to pupils, regardless of whether such an administrator is licensed as a teacher or administrator, including, without limitation, a principal and vice principal.
3. For the 2013-2014 school year and, if applicable, for the 2014-2015 school year:
(a) Some evaluations of teachers and administrators pursuant to the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, will be conducted as set forth in this section for purposes of a validation study concurrently with the evaluations required by sections 17 and 18 of this act, as applicable.
(b) Decisions regarding the suspension, demotion, dismissal and refusal to reemploy must not be based upon any results of the evaluations conducted pursuant to this section for purposes of the validation study.
4. For those school districts that have not opted out of the delay of the implementation of the statewide performance evaluation system, the teachers who are selected for the validation study must be evaluated in accordance with section 17 of this act and in accordance with the policy for evaluations set forth in NRS 391.3125, as amended by section 4 of this act.
κ2013 Statutes of Nevada, Page 3168 (CHAPTER 496, SB 407)κ
who are selected for the validation study must be evaluated in accordance with section 17 of this act and in accordance with the policy for evaluations set forth in NRS 391.3125, as amended by section 4 of this act.
5. For those school districts that have not opted out of the delay of the implementation of the statewide performance evaluation system, the administrators who are selected for the validation study must be evaluated in accordance with section 18 of this act and in accordance with the policy for evaluations set forth in NRS 391.3127, as amended by section 5 of this act.
Sec. 20. 1. If a validation study is not conducted pursuant to section 19 of this act for the 2014-2015 school year, each postprobationary teacher and administrator who is employed by a school district that did not opt out of the delay of the implementation of the statewide performance evaluation system and that participated in the validation study during the 2013-2014 school year must be evaluated during the 2014-2015 school year pursuant to NRS 391.3125 or 391.3127, as amended by sections 4 and 5 of this act, respectively, and must, as part of the evaluation, be observed at least two times as follows:
(a) The first observation must occur within 80 days after the first day of instruction of the school year; and
(b) The second observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
2. For the 2015-2016 school year and each school year thereafter, each postprobationary teacher and administrator who is evaluated pursuant to NRS 391.3125 or 391.3127, as amended by sections 4 and 5 of this act, respectively, must, as part of the evaluation, be observed in accordance with the observation schedule set forth in NRS 391.3125 or 391.3127, as applicable, based upon the designation of the overall performance of the employee for the 2014-2015 school year.
Sec. 20.5. 1. If a validation study is conducted pursuant to section 19 of this act for the 2014-2015 school year, each postprobationary teacher and administrator who is employed by a school district that did not opt out of the delay of the implementation of the statewide performance evaluation system and that participated in the validation study for that school year must be evaluated during the 2015-2016 school year pursuant to NRS 391.3125 or 391.3127, as amended by sections 4 and 5 of this act, respectively, and must, as part of the evaluation, be observed at least two times as follows:
(a) The first observation must occur within 80 days after the first day of instruction of the school year; and
(b) The second observation must occur after 80 days but within 120 days after the first day of instruction of the school year.
2. For the 2016-2017 school year and each school year thereafter, each postprobationary teacher and administrator who is evaluated pursuant to NRS 391.3125 or 391.3127, as amended by sections 4 and 5 of this act, respectively, must, as part of the evaluation, be observed in accordance with the observation schedule set forth in NRS 391.3125 or 391.3127, as applicable, based upon the designation of the overall performance of the employee for the 2015-2016 school year.
Sec. 21. 1. On or before August 1, 2014, the Department of Education shall, in consultation with the boards of trustees of the 17 school districts, select a representative sample of counselors, librarians and other licensed educational personnel, except for teachers and administrators, for a validation study of the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act.
κ2013 Statutes of Nevada, Page 3169 (CHAPTER 496, SB 407)κ
the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act. Each school district shall participate in the validation study.
2. For the 2014-2015 school year:
(a) The evaluations of counselors, librarians and other licensed educational personnel, except for teachers and administrators, pursuant to the statewide performance evaluation system adopted by the State Board of Education pursuant to NRS 391.465, as amended by section 10 of this act, will be conducted as set forth in this section for purposes of a validation study concurrently with the evaluations required by section 17 of this act.
(b) Decisions regarding the suspension, demotion, dismissal and refusal to reemploy must not be based upon any results of the evaluations conducted pursuant to this section for purposes of the validation study.
3. The counselors, librarians and other licensed educational personnel who are selected for the validation study must be evaluated in accordance with section 17 of this act and in accordance with the policy for evaluations set forth in NRS 391.3125, as amended by section 4 of this act.
Sec. 22. Commencing with the 2015-2016 school year, the board of trustees of each school district shall implement and carry out the policy for evaluations of counselors, librarians and other licensed educational personnel, except for teachers and administrators, required by NRS 391.3125, as amended by section 4 of this act.
Sec. 23. 1. This section and section 16 of this act become effective upon passage and approval.
2. Sections 1 to 15, inclusive, and 16.3 to 22, inclusive, of this act become effective on July 1, 2013.
________
Senate Bill No. 410Senators Parks, Spearman, Segerblom, Kihuen; Atkinson, Gustavson, Jones, Manendo, Smith and Woodhouse
Joint Sponsors: Assemblymen Healey, Ohrenschall; Aizley, Daly, Dondero Loop, Fiore, Hogan, Martin, Pierce, Spiegel and Swank
CHAPTER 497
[Approved: June 11, 2013]
AN ACT relating to hypodermic devices; authorizing certain entities to establish a program for the safe distribution and disposal of hypodermic devices and certain other material; requiring the State Board of Health to establish guidelines governing such a program; providing that the possession of a trace amount of a controlled substance is not a criminal offense in certain circumstances; removing hypodermic devices from the list of paraphernalia that is prohibited for delivery, sale, possession, manufacture or use in this State; providing that hypodermic devices may be sold or furnished without a prescription if not prohibited by federal law in certain circumstances; repealing a provision which makes it a crime to misuse a hypodermic device; and providing other matters properly relating thereto.
κ2013 Statutes of Nevada, Page 3170 (CHAPTER 497, SB 410)κ
Legislative Counsels Digest:
Section 4 of this bill authorizes a governmental entity, a tax-exempt nonprofit corporation, a public health program, a licensed medical facility or a person who has a tax-exempt nonprofit corporation as a fiscal sponsor, to establish a program for the safe distribution and disposal of hypodermic devices. Section 4.5 of this bill requires the State Board of Health to establish guidelines governing such a program. Sections 5-7 of this bill enact provisions governing the operation of a sterile hypodermic device program, including, without limitation, the training of the staff and volunteers of the program and the devices, material and information that a program may provide. Section 8 of this bill provides that the State, any of its political subdivisions and a sterile hypodermic device program and its staff and volunteers are exempt from civil liability relating to the operation of a sterile hypodermic device program. Section 9 of this bill: (1) provides for the confidentiality of any record which is obtained or created in the operation of a sterile hypodermic device program; (2) provides that such records are not discoverable or admissible in criminal proceedings; (3) prohibits the use of records obtained from a sterile hypodermic device program as a basis for initiating a criminal charge, or to substantiate a criminal charge, against a person who participates in the program; and (4) provides that the staff and volunteers of a sterile hypodermic device program cannot be compelled to provide evidence in criminal proceedings concerning information known to the staff member or volunteer through the program.
Existing law prohibits the possession of a controlled substance. (NRS 453.336) Section 11 of this bill provides that a person does not violate this provision if he or she has a trace amount of a controlled substance that is in or on a hypodermic device that was obtained from a sterile hypodermic device program.
Existing law prohibits the delivery, sale, possession or manufacture of certain drug paraphernalia when the person engaging in the act reasonably should know that it will be used for an illegal purpose. (NRS 453.560) Existing law further makes it a felony for a person to deliver drug paraphernalia to a minor who is at least 3 years younger than the person. (NRS 453.562) Section 12 of this bill removes hypodermic devices from the list of items that may be found to constitute drug paraphernalia.
Existing law authorizes the sale of hypodermic devices which are not restricted by federal law to being sold by prescription to be sold without a prescription for certain limited purposes. (NRS 454.480) Section 15 of this bill removes the restrictions so that hypodermic devices may be sold or furnished without a prescription for any purpose so long as the sale of such devices is not restricted by federal law.
Section 16 of this bill repeals a provision which makes it a misdemeanor to use or allow the use of a hypodermic device for a purpose other than that for which it was purchased, because the specific uses were removed in section 15.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
Whereas, The human immunodeficiency virus, hepatitis and other infectious diseases that may be transmitted through the use of unsterile hypodermic devices such as syringes and needles pose a major health threat in the United States, causing thousands of deaths and millions of dollars in preventable health care costs each year; and
Whereas, The lack of availability of sterile hypodermic devices is a major cause of this serious health threat; and
Whereas, Hundreds of studies have demonstrated that making sterile hypodermic devices available to persons who inject drugs reduces the spread of infectious disease and does not encourage drug use; and
Whereas, The trend among states has been to deregulate the possession, sale and use of hypodermic devices and to make such devices more accessible; and
κ2013 Statutes of Nevada, Page 3171 (CHAPTER 497, SB 410)κ
Whereas, Increasing access to sterile hypodermic devices is necessary to control the spread of life-threatening infectious diseases; now, therefore,
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 439 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.
Sec. 2. The Legislature hereby declares that the purpose of sections 2 to 10, inclusive, of this act is to enable the use of sterile hypodermic devices and other related material for use among people who inject drugs for the purpose of reducing the intravenous transmission of diseases. The provisions of sections 2 to 10, inclusive, of this act are intended to:
1. Ensure the availability and accessibility of sterile hypodermic devices by encouraging distribution of such devices by various means.
2. Provide for the effective operation of sterile hypodermic device programs that protect the human rights of people who use such programs.
3. Guarantee that sterile hypodermic devices and other sterile injection supplies are not deemed illegal.
4. Ensure that sterile hypodermic device programs operate in harmony with law enforcement activities.
Sec. 3. As used in sections 2 to 10, inclusive, of this act, sterile hypodermic device program or program means a program established pursuant to section 4 of this act for the safe distribution and disposal of hypodermic devices.
Sec. 4. 1. A governmental entity, a nonprofit corporation that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), a public health program, a medical facility or a person who has a fiscal sponsor that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3), may establish a sterile hypodermic device program in this State.
2. As used in this section:
(a) Medical facility has the meaning ascribed to it in NRS 449.0151.
(b) Public health program has the meaning ascribed to it in NRS 454.00973.
Sec. 4.5. The State Board of Health shall establish guidelines governing the operation of the program which provide for, without limitation:
1. The recording of the quantities of hypodermic devices distributed and collected by the program; and
2. The procedures for the safe collection and disposal of used hypodermic devices.
Sec. 5. A sterile hypodermic device program shall:
1. Establish and follow procedures for the safe collection and disposal of used hypodermic devices and other related material pursuant to guidelines established by the State Board of Health.
2. Provide community outreach and educational programs concerning:
(a) The safer use of hypodermic devices to avoid disease and infection; and
(b) The safe disposal of hypodermic devices.
κ2013 Statutes of Nevada, Page 3172 (CHAPTER 497, SB 410)κ
3. Report the quantities of hypodermic devices distributed and collected by the program to the State Board of Health at least semiannually.
Sec. 6. All staff and volunteers of a sterile hypodermic device program shall complete training which includes, without limitation, the following information:
1. The policies and procedures of the program and relevant regulations, including, without limitation, emergency and safety policies and procedures;
2. Legal and law enforcement issues and policies regarding hypodermic devices;
3. Overdose prevention, recognition and response;
4. The risk of blood-borne diseases that may result from the use of hypodermic devices;
5. Methods for preventing the transmission or contraction of blood-borne diseases;
6. The dangers of injecting drugs and the manner in which to access treatment;
7. Information concerning the human immunodeficiency virus and hepatitis virus and the prevention of the spread of these viruses;
8. The safe disposal of hypodermic devices, including, without limitation, procedures concerning accidental needle sticks; and
9. Cultural competency, including, without limitation, sensitivity to the needs of children, lesbian, gay, bisexual and transgendered individuals, racial and ethnic minorities, women, sex workers and any other participant population.
Sec. 7. A sterile hypodermic device program may provide:
1. Sterile hypodermic devices and other related material for safer injection drug use; and
2. Information concerning:
(a) The risks associated with the use of controlled substances;
(b) Drug dependence treatment services and other health services;
(c) Support services for people with drug dependence and their families;
(d) Methods for preventing the transmission or contraction of blood-borne diseases;
(e) Employment and vocational training services and centers; and
(f) Legal aid services.
Sec. 8. The State, any political subdivision thereof, a sterile hypodermic device program and the staff and volunteers thereof are not subject to civil liability in relation to any act or failure to act in connection with the operation of a sterile hypodermic device program, if the act or failure to act was in good faith for the purpose of executing the provisions of sections 2 to 10, inclusive, of this act, and was not a reckless act or failure to act.
Sec. 9. 1. Any record of a person which is created or obtained for use by a sterile hypodermic device program must be kept confidential and:
(a) Is not open for public inspection or disclosure;
(b) Must not be shared with any other person or entity without the consent of the person to whom the record relates; and
(c) Must not be discoverable or admissible during any legal proceeding.
κ2013 Statutes of Nevada, Page 3173 (CHAPTER 497, SB 410)κ
2. A record described in subsection 1 must not be used:
(a) To initiate or substantiate any criminal charge against a person who participates in the sterile hypodermic device program; or
(b) As grounds for conducting any investigation of a person who participates in the sterile hypodermic device program.
3. The staff and volunteers of a sterile hypodermic device program shall not be compelled to provide evidence in any criminal proceeding conducted pursuant to the laws of this State concerning any information that was entrusted to them or became known to them through the program.
4. The use of any personal information of any person who participates in a sterile hypodermic device program or of the staff or volunteers of the sterile hypodermic device program in research and evaluation must be done in such a manner as to guarantee the anonymity of the person.
5. Aggregate data from a sterile hypodermic device program, including, without limitation, demographic information, the number of clients contacted and the types of referrals may be made available to the public.
Sec. 10. No person shall be subject to any discrimination in the operation of a sterile hypodermic device program on the basis of race, color, religion, sex, sexual orientation, gender identity or expression, age, political affiliation, disability, national origin, residence, frequency of injection or controlled substance used.
Sec. 11. NRS 453.336 is hereby amended to read as follows:
453.336 1. [A] Except as otherwise provided in subsection 5, a person shall not knowingly or intentionally possess a controlled substance, unless the substance was obtained directly from, or pursuant to, a prescription or order of a physician, physician assistant licensed pursuant to chapter 630 or 633 of NRS, dentist, podiatric physician, optometrist, advanced practitioner of nursing or veterinarian while acting in the course of his or her professional practice, or except as otherwise authorized by the provisions of NRS 453.005 to 453.552, inclusive.
2. Except as otherwise provided in subsections 3 and 4 and in NRS 453.3363, and unless a greater penalty is provided in NRS 212.160, 453.3385, 453.339 or 453.3395, a person who violates this section shall be punished:
(a) For the first or second offense, if the controlled substance is listed in schedule I, II, III or IV, for a category E felony as provided in NRS 193.130.
(b) For a third or subsequent offense, if the controlled substance is listed in schedule I, II, III or IV, or if the offender has previously been convicted two or more times in the aggregate of any violation of the law of the United States or of any state, territory or district relating to a controlled substance, for a category D felony as provided in NRS 193.130, and may be further punished by a fine of not more than $20,000.
(c) For the first offense, if the controlled substance is listed in schedule V, for a category E felony as provided in NRS 193.130.
(d) For a second or subsequent offense, if the controlled substance is listed in schedule V, for a category D felony as provided in NRS 193.130.
3. Unless a greater penalty is provided in NRS 212.160, 453.337 or 453.3385, a person who is convicted of the possession of flunitrazepam or gamma-hydroxybutyrate, or any substance for which flunitrazepam or gamma-hydroxybutyrate is an immediate precursor, is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years.
κ2013 Statutes of Nevada, Page 3174 (CHAPTER 497, SB 410)κ
felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 6 years.
4. Unless a greater penalty is provided pursuant to NRS 212.160, a person who is convicted of the possession of 1 ounce or less of marijuana:
(a) For the first offense, is guilty of a misdemeanor and shall be:
(1) Punished by a fine of not more than $600; or
(2) Examined by an approved facility for the treatment of abuse of drugs to determine whether the person is a drug addict and is likely to be rehabilitated through treatment and, if the examination reveals that the person is a drug addict and is likely to be rehabilitated through treatment, assigned to a program of treatment and rehabilitation pursuant to NRS 453.580.
(b) For the second offense, is guilty of a misdemeanor and shall be:
(1) Punished by a fine of not more than $1,000; or
(2) Assigned to a program of treatment and rehabilitation pursuant to NRS 453.580.
(c) For the third offense, is guilty of a gross misdemeanor and shall be punished as provided in NRS 193.140.
(d) For a fourth or subsequent offense, is guilty of a category E felony and shall be punished as provided in NRS 193.130.
5. It is not a violation of this section if a person possesses a trace amount of a controlled substance and that trace amount is in or on a hypodermic device obtained from a sterile hypodermic device program pursuant to sections 2 to 10, inclusive, of this act.
6. As used in this section [, controlled] :
(a) Controlled substance includes flunitrazepam, gamma-hydroxybutyrate and each substance for which flunitrazepam or gamma-hydroxybutyrate is an immediate precursor.
(b) Sterile hypodermic device program has the meaning ascribed to it in section 3 of this act.
Sec. 12. NRS 453.554 is hereby amended to read as follows:
453.554 [As]
1. Except as otherwise provided in subsection 2, as used in NRS 453.554 to 453.566, inclusive, unless the context otherwise requires, drug paraphernalia means all equipment, products and materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, preparing, testing, analyzing, packaging, repackaging, storing, containing, concealing, [injecting,] ingesting, inhaling or otherwise introducing into the human body a controlled substance in violation of this chapter. The term includes, but is not limited to:
[1.] (a) Kits used, intended for use, or designed for use in planting, propagating, cultivating, growing or harvesting of any species of plant which is a controlled substance or from which a controlled substance can be derived;
[2.] (b) Kits used, intended for use, or designed for use in manufacturing, compounding, converting, producing or preparing controlled substances;
[3.] (c) Isomerization devices used, intended for use, or designed for use in increasing the potency of any species of plant which is a controlled substance;
κ2013 Statutes of Nevada, Page 3175 (CHAPTER 497, SB 410)κ
[4.] (d) Testing equipment used, intended for use, or designed for use in identifying, or in analyzing the strength, effectiveness or purity of controlled substances;
[5.] (e) Scales and balances used, intended for use, or designed for use in weighing or measuring controlled substances;
[6.] (f) Diluents and adulterants, such as quinine hydrochloride, mannitol, mannite, dextrose and lactose, used, intended for use, or designed for use in cutting controlled substances;
[7.] (g) Separation gins and sifters used, intended for use, or designed for use in removing twigs and seeds from, or in otherwise cleaning or refining marijuana;
[8.] (h) Blenders, bowls, containers, spoons and mixing devices used, intended for use, or designed for use in compounding controlled substances;
[9.] (i) Capsules, balloons, envelopes and other containers used, intended for use, or designed for use in packaging small quantities of controlled substances;
[10.] (j) Containers and other objects used, intended for use, or designed for use in storing or concealing controlled substances; and
[11.] (k) Objects used, intended for use, or designed for use in ingesting, inhaling or otherwise introducing marijuana, cocaine, hashish or hashish oil into the human body, such as:
[(a)] (1) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes with or without screens, permanent screens, hashish heads or punctured metal bowls;
[(b)] (2) Water pipes;
[(c)] (3) Smoking masks;
[(d)] (4) Roach clips, which are objects used to hold burning material, such as a marijuana cigarette, that has become too small or too short to be held in the hand;
[(e)] (5) Cocaine spoons and cocaine vials;
[(f)] (6) Carburetor pipes and carburetion tubes and devices;
[(g)] (7) Chamber pipes;
[(h)] (8) Electric pipes;
[(i)] (9) Air-driven pipes;
[(j)] (10) Chillums;
[(k)] (11) Bongs; and
[(l)] (12) Ice pipes or chillers.
2. The term does not include any type of hypodermic syringe, needle, instrument, device or implement intended or capable of being adapted for the purpose of administering drugs by subcutaneous, intramuscular or intravenous injection.
Sec. 13. NRS 453.560 is hereby amended to read as follows:
453.560 Unless a greater penalty is provided in NRS 212.160, a person who delivers or sells, possesses with the intent to deliver or sell, or manufactures with the intent to deliver or sell any drug paraphernalia, knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, prepare, test, analyze, pack, repack, store, contain, conceal, [inject,] ingest, inhale or otherwise introduce into the human body a controlled substance in violation of this chapter is guilty of a category E felony and shall be punished as provided in NRS 193.130.
κ2013 Statutes of Nevada, Page 3176 (CHAPTER 497, SB 410)κ
Sec. 14. NRS 453.566 is hereby amended to read as follows:
453.566 Any person who uses, or possesses with intent to use, drug paraphernalia to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, prepare, test, analyze, pack, repack, store, contain, conceal, [inject,] ingest, inhale or otherwise introduce into the human body a controlled substance in violation of this chapter is guilty of a misdemeanor.
Sec. 15. NRS 454.480 is hereby amended to read as follows:
454.480 1. Hypodermic devices which are not restricted by federal law to sale by or on the order of a physician may be sold by a pharmacist, or by a person in a pharmacy under the direction of a pharmacist, on the prescription of a physician, dentist or veterinarian, or of an advanced practitioner of nursing who is a practitioner. Those prescriptions must be filed as required by NRS 639.236, and may be refilled as authorized by the prescriber. Records of refilling must be maintained as required by NRS 639.2393 to 639.2397, inclusive.
2. Hypodermic devices which are not restricted by federal law to sale by or on the order of a physician may be sold or furnished without a prescription . [for the following purposes:
(a) For use in the treatment of persons having asthma or diabetes.
(b) For use in injecting intramuscular or subcutaneous medications prescribed by a practitioner for the treatment of human beings.
(c) For use in an ambulance or by a fire-fighting agency for which a permit is held pursuant to NRS 450B.200 or 450B.210.
(d) For the injection of drugs in animals or poultry.
(e) For commercial or industrial use or use by jewelers or other merchants having need for those devices in the conduct of their business, or by hobbyists if the seller is satisfied that the device will be used for legitimate purposes.
(f) For use by funeral directors and embalmers, licensed medical technicians or technologists, or research laboratories.]
Sec. 16. NRS 454.520 is hereby repealed.
Sec. 17. This act becomes effective on July 1, 2013.
________
κ2013 Statutes of Nevada, Page 3177κ
Senate Bill No. 425Committee on Judiciary
CHAPTER 498
[Approved: June 11, 2013]
AN ACT relating to gaming; requiring the Nevada Gaming Commission to study and review certain issues relating to pari-mutuel wagering; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law prohibits a person who is licensed to engage in off-track pari-mutuel wagering from: (1) accepting less than the full face value of an off-track pari-mutuel wager; (2) agreeing to refund or rebate a portion or percentage of the full face value of an off-track pari-mutuel wager; or (3) increasing the payoff of or paying a bonus on a winning off-track pari-mutuel wager. (NRS 464.075) This bill requires the Nevada Gaming Commission to study and review issues relating to the offering of rebates on pari-mutuel wagers, including the feasibility of: (1) accepting less than the full face value of an off-track pari-mutuel wager; (2) agreeing to refund or rebate a portion or percentage of the full face value of an off-track pari-mutuel wager; and (3) increasing the payoff of or paying a bonus on a winning off-track pari-mutuel wager. This bill further requires the Commission to adopt regulations exempting certain bets, refunds, rebates, payoffs or bonuses relating to off-track pari-mutuel wagering from the current prohibition under state law if, after studying and reviewing the issue, the Commission determines that it is in the best interests of this State and licensed gaming in this State.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections 1-3. (Deleted by amendment.)
Sec. 3.5. 1. Not later than January 1, 2014, the Nevada Gaming Commission shall study and review issues relating to the offering of rebates on pari-mutuel wagers. The Commission shall evaluate the feasibility of:
(a) Accepting less than the full value of an off-track pari-mutuel wager;
(b) Agreeing to refund or rebate a portion or percentage of the full face value of an off-track pari-mutuel wager; or
(c) Increasing the payoff of or paying a bonus on a winning off-track pari-mutuel wager.
2. If the Commission determines that exempting certain bets, refunds, rebates, payoffs or bonuses from the provisions of subsection 1 of NRS 464.075:
(a) Is in the best interests of the State and licensed gaming in this State, the Commission shall adopt regulations pursuant to subsection 4 of NRS 464.075 not later than April 1, 2014.
(b) Is not in the best interests of the State and licensed gaming in this State, the Commission shall, following the conclusion of the Commissions study and review, report its findings at the next regularly scheduled meeting of the Legislative Commission.
Sec. 4. This act becomes effective upon passage and approval.
________
κ2013 Statutes of Nevada, Page 3178κ
Senate Bill No. 450Committee on Health and Human Services
CHAPTER 499
[Approved: June 11, 2013]
AN ACT relating to public health; revising the qualifications for certain district health officers; revising provisions relating to medical records; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law provides for the appointment of a State Health Officer by the Director of the Department of Health and Human Services and establishes the qualifications for that position. (NRS 439.090, 439.100) Existing law further creates a health district in a county whose population is 700,000 or more. Such a health district has a health department consisting of a district health officer and a district board of health. (NRS 439.362) Existing law requires the district board of health in such a county to appoint a district health officer for the health district and establishes the qualifications for the district health officer. (NRS 439.368) Section 1 of this bill revises the qualifications of the district health officer. Section 2 of this bill allows a person who is serving as the district health officer of a county whose population is 700,000 or more (currently Clark County) on July 1, 2013, to continue to serve in that capacity until his or her successor is appointed.
Existing law requires a provider of health care, including a facility that maintains the health care records of patients, to make the health care records of a patient available for inspection in certain circumstances. (NRS 629.021, 629.061) Section 1.2 of this bill extends the period of time within which a provider of health care must make health care records available for inspection in certain circumstances. Section 1.8 of this bill repeals a provision making it a misdemeanor for a physician licensed pursuant to chapter 630 of NRS to willfully fail or refuse to comply with this requirement.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 439.368 is hereby amended to read as follows:
439.368 1. The district board of health shall appoint a district health officer for the health district who shall have full authority as a county health officer in the health district.
2. The district health officer must:
(a) Be licensed to practice medicine or osteopathic medicine in this State [; and] or be eligible for such a license and obtain such a license within 12 months after being appointed as district health officer;
(b) Have at least [the following additional education and experience:
(1) A masters degree in public health, health care administration, public administration, business administration or a related field; and
(2) Ten] 5 years of management experience [in an administrative position] in a local, state or national public health department, program, organization or agency ; and
κ2013 Statutes of Nevada, Page 3179 (CHAPTER 499, SB 450)κ
(c) Have:
(1) At least a masters degree in public health, health care administration, public administration, business administration or a related field;
(2) Work experience which is deemed to be equivalent to a degree described in subparagraph (1), which may include, without limitation, relevant work experience with a national organization which conducts research on issues concerning public health; or
(3) Obtained certification from or be eligible to be certified by the American Board of Preventive Medicine, the American Osteopathic Board of Preventive Medicine, a successor organization or, if there is no successor organization, by a similar organization designated by the district board of health.
3. The district health officer is entitled to receive a salary fixed by the district board of health and serves at the pleasure of the board.
4. Any clinical program of a district board of health which requires medical assessment must be carried out under the direction of a physician.
Sec. 1.2. NRS 629.061 is hereby amended to read as follows:
629.061 1. Each provider of health care shall make the health care records of a patient available for physical inspection by:
(a) The patient or a representative with written authorization from the patient;
(b) The personal representative of the estate of a deceased patient;
(c) Any trustee of a living trust created by a deceased patient;
(d) The parent or guardian of a deceased patient who died before reaching the age of majority;
(e) An investigator for the Attorney General or a grand jury investigating an alleged violation of NRS 200.495, 200.5091 to 200.50995, inclusive, or 422.540 to 422.570, inclusive;
(f) An investigator for the Attorney General investigating an alleged violation of NRS 616D.200, 616D.220, 616D.240 or 616D.300 to 616D.440, inclusive, or any fraud in the administration of chapter 616A, 616B, 616C, 616D or 617 of NRS or in the provision of benefits for industrial insurance; or
(g) Any authorized representative or investigator of a state licensing board during the course of any investigation authorized by law.
[Κ] 2. The records described in subsection 1 must be made available at a place within the depository convenient for physical inspection. [If] Except as otherwise provided in subsection 3, if the records are located [within] :
(a) Within this State, the provider shall make any records requested pursuant to this section available for inspection within [5] 10 working days after the request. [If the records are located outside]
(b) Outside this State, the provider shall make any records requested pursuant to this section available in this State for inspection within [10] 20 working days after the request.
[2.] 3. If the records described in subsection 1 are requested pursuant to paragraph (e), (f) or (g) of subsection 1 and the investigator, grand jury or authorized representative, as applicable, declares that exigent circumstances exist which require the immediate production of the records, the provider shall make any records which are located:
(a) Within this State available for inspection within 5 working days after the request.
κ2013 Statutes of Nevada, Page 3180 (CHAPTER 499, SB 450)κ
(b) Outside this State available for inspection within 10 working days after the request.
4. Except as otherwise provided in subsection [3,] 5, the provider of health care shall also furnish a copy of the records to each person described in subsection 1 who requests it and pays the actual cost of postage, if any, the costs of making the copy, not to exceed 60 cents per page for photocopies and a reasonable cost for copies of X-ray photographs and other health care records produced by similar processes. No administrative fee or additional service fee of any kind may be charged for furnishing such a copy.
[3.] 5. The provider of health care shall also furnish a copy of any records that are necessary to support a claim or appeal under any provision of the Social Security Act, 42 U.S.C. §§ 301 et seq., or under any federal or state financial needs-based benefit program, without charge, to a patient, or a representative with written authorization from the patient, who requests it, if the request is accompanied by documentation of the claim or appeal. A copying fee, not to exceed 60 cents per page for photocopies and a reasonable cost for copies of X-ray photographs and other health care records produced by similar processes, may be charged by the provider of health care for furnishing a second copy of the records to support the same claim or appeal. No administrative fee or additional service fee of any kind may be charged for furnishing such a copy. The provider of health care shall furnish the copy of the records requested pursuant to this subsection within 30 days after the date of receipt of the request, and the provider of health care shall not deny the furnishing of a copy of the records pursuant to this subsection solely because the patient is unable to pay the fees established in this subsection.
[4.] 6. Each person who owns or operates an ambulance in this State shall make the records regarding a sick or injured patient available for physical inspection by:
(a) The patient or a representative with written authorization from the patient;
(b) The personal representative of the estate of a deceased patient;
(c) Any trustee of a living trust created by a deceased patient;
(d) The parent or guardian of a deceased patient who died before reaching the age of majority; or
(e) Any authorized representative or investigator of a state licensing board during the course of any investigation authorized by law.
Κ The records must be made available at a place within the depository convenient for physical inspection, and inspection must be permitted at all reasonable office hours and for a reasonable length of time. The person who owns or operates an ambulance shall also furnish a copy of the records to each person described in this subsection who requests it and pays the actual cost of postage, if any, and the costs of making the copy, not to exceed 60 cents per page for photocopies. No administrative fee or additional service fee of any kind may be charged for furnishing a copy of the records.
[5.] 7. Records made available to a representative or investigator must not be used at any public hearing unless:
(a) The patient named in the records has consented in writing to their use; or
(b) Appropriate procedures are utilized to protect the identity of the patient from public disclosure.
[6.] 8. Subsection [5] 7 does not prohibit:
κ2013 Statutes of Nevada, Page 3181 (CHAPTER 499, SB 450)κ
(a) A state licensing board from providing to a provider of health care or owner or operator of an ambulance against whom a complaint or written allegation has been filed, or to his or her attorney, information on the identity of a patient whose records may be used in a public hearing relating to the complaint or allegation, but the provider of health care or owner or operator of an ambulance and the attorney shall keep the information confidential.
(b) The Attorney General from using health care records in the course of a civil or criminal action against the patient or provider of health care.
[7.] 9. A provider of health care or owner or operator of an ambulance and his or her agents and employees are immune from any civil action for any disclosures made in accordance with the provisions of this section or any consequential damages.
[8.] 10. For the purposes of this section:
(a) Guardian means a person who has qualified as the guardian of a minor pursuant to testamentary or judicial appointment, but does not include a guardian ad litem.
(b) Living trust means an inter vivos trust created by a natural person:
(1) Which was revocable by the person during the lifetime of the person; and
(2) Who was one of the beneficiaries of the trust during the lifetime of the person.
(c) Parent means a natural or adoptive parent whose parental rights have not been terminated.
(d) Personal representative has the meaning ascribed to it in NRS 132.265.
Sec. 1.8. NRS 630.405 is hereby repealed.
Sec. 2. Notwithstanding the amendatory provisions of section 1 of this act, any person who, on July 1, 2013, is serving as the district health officer in a county whose population is 700,000 or more and who is otherwise qualified to serve as the district health officer on that date may continue to serve in that capacity until his or her successor is appointed by the district board of health.
Sec. 3. This act becomes effective on July 1, 2013.
________
Senate Bill No. 500Committee on Education
CHAPTER 500
[Approved: June 11, 2013]
AN ACT relating to education; creating the Task Force on K-12 Public Education Funding to recommend a plan for funding public schools based upon a weighted formula that takes into account the individual educational needs and demographic characteristics of pupils; prescribing the membership and duties of the Task Force; and providing other matters properly relating thereto.
κ2013 Statutes of Nevada, Page 3182 (CHAPTER 500, SB 500)κ
Legislative Counsels Digest:
Under existing law, the Nevada Plan for School Finance provides for the financial support of the school districts, charter schools and university schools for profoundly gifted pupils. The formula in the Nevada Plan is expressed as: State financial aid to school districts equals the difference between school district basic support guarantee and local available funds produced by mandatory taxes minus all the local funds attributable to pupils who reside in the county but attend a charter school or a university school for profoundly gifted pupils. (NRS 387.121) The basic support guarantee for each school district is computed by multiplying the basic support guarantee per pupil that is established by law for the school district for each school year by pupil enrollment and adding funding for special education program units. (NRS 387.1221-387.1233; see, e.g., chapter 370, Statutes of Nevada 2011, p. 2139) This bill creates the Task Force on K-12 Public Education Funding to recommend a plan for implementing a funding formula that takes into account the needs of, and the costs to educate, pupils based upon the individual educational needs and demographic characteristics of pupils, including, without limitation, pupils from low-income families, pupils with disabilities and pupils who have limited proficiency in the English language.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. The Nevada Legislature hereby finds and declares that:
1. It is the intended goal of the Legislature to equitably fund public education in this State and ensure that the public education funding formula properly accounts for the needs of, and the costs to educate, pupils based upon the individual educational needs and demographic characteristics of pupils, including, without limitation, pupils from low-income families, pupils with disabilities and pupils who have limited proficiency in the English language.
2. The Legislature seeks to revise the formula used to fund public education in Nevada to account for pupils with varying educational needs and demographic characteristics in each school district in this State.
Sec. 2. 1. The Task Force on K-12 Public Education Funding is hereby created. The Task Force consists of:
(a) The Superintendent of Public Instruction or his or her designee;
(b) The Director of the State Public Charter School Authority or his or her designee;
(c) One member appointed by the Nevada Association of School Superintendents, in consultation with the Nevada Association of School Administrators;
(d) One member appointed by the Nevada Association of School Boards;
(e) One member appointed by the Nevada Parent Teacher Association;
(f) One member appointed by the Nevada State Education Association;
(g) Two members appointed by the Governor, one of whom is a financial officer of a county school district and one of whom is a parent or legal guardian of a pupil enrolled in a public school in this State;
(h) One member appointed by the Advisory Council on Parental Involvement and Family Engagement;
(i) Two members appointed by the Majority Leader of the Senate as follows:
(1) One Senator; and
(2) One person who is a current or former licensed educator;
κ2013 Statutes of Nevada, Page 3183 (CHAPTER 500, SB 500)κ
(j) Two members appointed by the Speaker of the Assembly as follows:
(1) One Assemblyman or Assemblywoman; and
(2) One person who is a current or former licensed educator;
(k) One member of the Senate appointed by the Minority Leader of the Senate; and
(l) One member of the Assembly appointed by the Minority Leader of the Assembly.
2. In appointing members of the Task Force pursuant to subsection 1, the appointing authorities shall coordinate the appointments, to the extent practicable, so that the members of the Task Force represent the geographic and ethnic diversity of this State.
3. Any vacancy occurring in the appointed membership of the Task Force must be filled in the same manner as the original appointment not later than 30 days after the vacancy occurs.
4. The Task Force shall hold its first meeting as soon as practicable on or after July 1, 2013, upon the call of the Governor. At the first meeting of the Task Force, the members of the Task Force shall elect a Chair, who must be either a Senator or an Assemblyman or Assemblywoman.
5. Including the first meeting held pursuant to subsection 4, the Task Force shall meet not more than six times each year at the call of the Chair.
6. A majority of the members of the Task Force constitutes a quorum for the transaction of business, and a majority of those members present at any meeting is sufficient for any official action taken by the Task Force.
7. The Chair of the Task Force may appoint such subcommittees from within or outside the membership of the Task Force as the Chair determines necessary to carry out the duties of the Task Force.
8. The Chair of the Task Force shall appoint a technical advisory committee consisting of persons who have knowledge, experience or expertise in K-12 public school finance as follows:
(a) One representative of the Clark County School District;
(b) One representative of the Washoe County School District;
(c) One representative of a county school district other than the Clark County School District or the Washoe County School District; and
(d) Any other persons who have knowledge, experience or expertise in the area of K-12 public school finance.
9. The members of the Task Force, a subcommittee of the Task Force and the technical advisory committee serve without compensation.
10. The Director of the Legislative Counsel Bureau shall provide administrative support to the Task Force.
Sec. 3. 1. The Task Force on K-12 Public Education Funding created by section 2 of this act shall:
(a) Conduct a review of the report entitled Study of a New Method of Funding for Public Schools in Nevada published by the American Institutes for Research on September 25, 2012;
(b) Survey the weighted pupil public education funding formulas which are used in other states;
(c) Develop a plan for revising and implementing Nevadas public education funding formula in a manner which equitably accounts for the needs of, and the costs to educate, pupils based upon the individual educational needs and demographic characteristics of pupils, including, without limitation, pupils from low-income families, pupils with disabilities and pupils who have limited proficiency in the English language through a weighted funding formula; and
κ2013 Statutes of Nevada, Page 3184 (CHAPTER 500, SB 500)κ
(d) Not later than June 30, 2014, prepare a written report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the 78th Session of the Nevada Legislature which includes recommendations for implementing the plan developed pursuant to paragraph (c) for Nevadas public education funding formula in the executive budget prepared for the 2015-2017 biennium.
2. The Task Force, a subcommittee of the Task Force or the technical advisory committee of the Task Force may seek the input, advice and assistance of persons and organizations with the knowledge, interest or expertise relevant to the duties of the Task Force.
Sec. 4. As soon as practicable after the effective date of this act but not later than July 1, 2013, the members of the Task Force on K-12 Public Education Funding must be appointed as prescribed by section 2 of this act.
Sec. 5. This act:
1. Becomes effective upon passage and approval for the purpose of appointing members to the Task Force on K-12 Public Education Funding created by section 2 of this act and on July 1, 2013, for all other purposes.
2. Expires by limitation on June 30, 2015.
________
Senate Bill No. 519Committee on Finance
CHAPTER 501
[Approved: June 11, 2013]
AN ACT relating to Medicaid; authorizing the Director of the Department of Corrections to apply on behalf of a prisoner for a determination of Medicaid eligibility; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing federal regulations require the Division of Health Care Financing and Policy of the Department of Health and Human Services to allow an applicant to have another person assist the applicant with the application process for determining Medicaid eligibility. (42 C.F.R. § 435.908) This bill authorizes the Director of the Department of Corrections or his or her designee, after informing a prisoner, to apply for a determination of Medicaid eligibility on behalf of the prisoner.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 209 of NRS is hereby amended by adding thereto a new section to read as follows:
The Director of the Department or his or her designee may, after informing an offender, apply for a determination of eligibility for Medicaid on behalf of the offender.
Sec. 2. This act becomes effective upon passage and approval.
________
κ2013 Statutes of Nevada, Page 3185κ
Assembly Bill No. 33Committee on Commerce and Labor
CHAPTER 502
[Approved: June 11, 2013]
AN ACT relating to energy; revising provisions governing the partial abatement of certain property taxes for certain buildings and structures which meet certain energy efficiency standards; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law requires the Director of the Office of Energy to grant a partial abatement of certain property taxes for the: (1) construction of a building or other structure that meets certain energy efficiency standards under the Green Building Rating System adopted by the Director; or (2) renovation by certain manufacturers of an existing building or other structure to bring the building or other structure into compliance with such energy efficiency standards. Existing law provides that the Green Building Rating System adopted by the Director must include standards and ratings equivalent to those provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System. (NRS 701A.100, 701A.110, 701A.115) Section 1 of this bill provides that the Green Building Rating System adopted by the Director must include standards and ratings equivalent to those provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System or an equivalent rating system. Section 1 additionally revises provisions relating to the Green Building Rating System used by the Director to determine the eligibility of a building or other structure for certain tax abatements.
Section 4 of this bill repeals the provisions which authorize partial abatements of property taxes specifically for certain manufacturers who renovate existing buildings. Section 2 of this bill provides that a partial abatement for a building or other structure that qualifies for the abatement under the Leadership in Energy and Environmental Design Existing Buildings: Operations and Maintenance rating system, or an equivalent rating system, must be for a period of not more than 5 years. Section 2 also prohibits the Director from granting a partial abatement unless the application for the partial abatement has been approved or deemed approved by the board of county commissioners. Section 2 further prohibits the Director from granting a partial abatement for a building or structure that qualifies under such a rating system in an amount which exceeds $100,000 annually.
Section 3.5 of this bill provides that this bill does not apply to a building or other structure for which a partial abatement has been received or for which an application for a partial abatement has otherwise been submitted pursuant to NRS 701A.110 before the effective date of this act.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 701A.100 is hereby amended to read as follows:
701A.100 1. The Director of the Office of Energy shall adopt a Green Building Rating System for the purposes of determining the eligibility of a building or other structure for a tax abatement pursuant to NRS 701A.110 . [and 701A.115.]
2. The Green Building Rating System must include standards and ratings equivalent to the standards and ratings provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System [,] or an equivalent rating system, except that the standards adopted by the Director:
κ2013 Statutes of Nevada, Page 3186 (CHAPTER 502, AB 33)κ
Leadership in Energy and Environmental Design Green Building Rating System [,] or an equivalent rating system, except that the standards adopted by the Director:
(a) Except as otherwise provided in paragraphs (b) and (c), must not include:
(1) Any standard that has not been included in the Leadership in Energy and Environmental Design Green Building Rating System or the equivalent rating system for at least 2 years; or
(2) Standards for homes;
(b) Must provide reasonable exceptions based on the size of the area occupied by the building or other structure; and
(c) Must require a building or other structure to obtain:
(1) At least [3] 5 points [of] in the Optimize Energy Performance credit [for energy conservation] , or its equivalent, to meet the equivalent of the silver level;
(2) At least [5] 7 points [of] in the Optimize Energy Performance credit [for energy conservation] , or its equivalent, to meet the equivalent of the gold level; and
(3) At least [8] 11 points [of] in the Optimize Energy Performance credit [for energy conservation] , or its equivalent, to meet the equivalent of the platinum level.
3. As used in this section, home means a building or other structure for which the principal use is as a residential dwelling for not more than four families.
Sec. 2. NRS 701A.110 is hereby amended to read as follows:
701A.110 1. Except as otherwise provided in this section, the Director, in consultation with the Office of Economic Development, shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure that is determined to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100, if:
(a) No funding is provided by any governmental entity in this State for the acquisition, design , [or] construction or renovation of the building or other structure or for the acquisition of any land therefor. For the purposes of this paragraph:
(1) Private activity bonds must not be considered funding provided by a governmental entity.
(2) The term private activity bond has the meaning ascribed to it in 26 U.S.C. § 141.
(b) The owner of the property:
(1) Submits an application for the partial abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.
(2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100.
κ2013 Statutes of Nevada, Page 3187 (CHAPTER 502, AB 33)κ
by the Director pursuant to NRS 701A.100. The Director may, for good cause shown, extend the period for providing such proof.
(3) Files a copy of each application and amended application submitted to the Director pursuant to subparagraph (1) with the:
(I) Chief of the Budget Division of the Department of Administration;
(II) Department of Taxation;
(III) County assessor;
(IV) County treasurer;
(V) Office of Economic Development;
(VI) Board of county commissioners; and
(VII) City manager and city council, if any.
(c) The abatement is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.
2. The Director shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to this section by the owner of the property unless the application is approved or deemed approved by the board of county commissioners pursuant to this subsection. The board of county commissioners of a county must provide notice to the Director that the board intends to consider an application and, if such notice is given, must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners:
(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;
(b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that:
(1) The projected cost of the services that the local government is required to provide to the building or other structure for which the abatement is received will exceed the amount of tax revenue that the local government is projected to receive as a result of the abatement; or
(2) The projected financial benefits that will result to the county from any employment resulting from the use of the building or other structure and from capital investments by the owner of the building or other structure in the county will not exceed the projected loss of tax revenue that will result from the abatement; and
(c) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.
Κ If the board of county commissioners does not approve or deny the application pursuant to this subsection within 30 days after the board receives a copy of the application, the application shall be deemed approved.
3. As soon as practicable after the Director receives the application and proof required by subsection 1, the Director, in consultation with the Office of Economic Development, shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:
(a) Department of Taxation;
(b) County assessor;
κ2013 Statutes of Nevada, Page 3188 (CHAPTER 502, AB 33)κ
(c) County treasurer; and
(d) Office of Economic Development.
[3.] 4. The Director may, with the assistance of the Chief of the Budget Division and the Department of Taxation, publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and on each affected local government. If the Director publishes a fiscal note that estimates the fiscal impact of the partial abatement on local government, the Director shall forward a copy of the fiscal note to each affected local government. As soon as practicable after receiving a copy of a certificate of eligibility pursuant to subsection [2,] 3, the Department of Taxation shall forward a copy of the certificate to each affected local government.
[4.] 5. The partial abatement [:] for:
(a) [Must] A building or other structure must, except as otherwise provided in paragraph (b), be for a duration of not more than 10 years and in an annual amount that equals, for a building or other structure that meets the equivalent of:
(1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be [payable] owed for the building or other structure, excluding the associated land;
(2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be [payable] owed for the building or other structure, excluding the associated land; or
(3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be [payable] owed for the building or other structure, excluding the associated land.
(b) [Does] A building or other structure that qualifies for an abatement under the Leadership in Energy and Environmental Design Existing Buildings: Operations and Maintenance rating system, or its equivalent, must be for a duration of not more than 5 years and in an annual amount that equals, except as otherwise provided in subsection 6, for a building or other structure that meets the equivalent of:
(1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land;
(2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; or
(3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land.
6. The Director shall not grant a partial abatement of more than $100,000 in any year for a building or other structure that qualifies for an abatement pursuant to paragraph (b) of subsection 5.
7. A partial abatement granted pursuant to this section:
κ2013 Statutes of Nevada, Page 3189 (CHAPTER 502, AB 33)κ
(a) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.
[(c)] (b) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:
(1) Department of Taxation, who shall immediately notify each affected local government of the determination;
(2) County assessor;
(3) County treasurer; and
(4) Office of Economic Development.
[(d) Must not be for an existing building or structure that is renovated.
5.] 8. If a partial abatement terminates pursuant to paragraph [(c)] (b) of subsection [4,] 7, the owner of the property to which the partial abatement applied shall repay to the county treasurer the amount of the exemption that was allowed pursuant to this section before the date of that termination. The owner shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.
[6.] 9. The Director, in consultation with the Office of Economic Development, shall adopt regulations:
(a) Establishing the qualifications and methods to determine eligibility for and the duration of the abatement;
(b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and
(c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (b) of subsection 1,
Κ and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.
[7.] 10. The Director shall:
(a) Cooperate with the Office of Economic Development in carrying out the provisions of this section; and
(b) Submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section.
[8.] 11. As used in this section:
(a) Building or other structure does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families.
(b) Director means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(c) Taxes imposed for public education means:
κ2013 Statutes of Nevada, Page 3190 (CHAPTER 502, AB 33)κ
(1) Any ad valorem tax authorized or required by chapter 387 of NRS;
(2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and
(3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.
Sec. 3. The Legislature hereby finds that each exemption provided by this act from any ad valorem tax on property:
1. Will achieve a bona fide social or economic purpose and that the benefits of the exemption are expected to exceed any adverse effect of the exemption on the provision of services to the public by the State or a local government that would otherwise receive revenue from the tax from which the exemption would be granted; and
2. Will not impair adversely the ability of the State or a local government to pay, when due, all interest and principal on any outstanding bonds or any other obligations for which revenue from the tax from which the exemption would be granted was pledged.
Sec. 3.5. The amendatory provisions of this act do not apply to a building or other structure for which an abatement has been received or for which an application for an abatement has otherwise been submitted pursuant to NRS 701A.110 before the effective date of this act.
Sec. 4. 1. NRS 701A.115 is hereby repealed.
2. Section 21 of chapter 298, Statutes of Nevada 2011, at page 1656, is hereby repealed.
Sec. 5. This act becomes effective upon passage and approval.
________
κ2013 Statutes of Nevada, Page 3191κ
Assembly Bill No. 167Committee on Transportation
CHAPTER 503
[Approved: June 11, 2013]
AN ACT relating to motor vehicles; establishing requirements for the permitting of a motor vehicle that is operated on the highways of this State for a business purpose within this State; requiring that such a motor vehicle complies with certain provisions; providing a penalty; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Under existing law, certain nonresident owners of motor vehicles that are used in this State for a gainful purpose must register such motor vehicles in this State. (NRS 482.385) Section 1 of this bill requires a nonresident who is not a natural person, owns a vehicle of a type subject to registration in this State and allows that vehicle to be operated in this State for business purposes within this State to obtain a nonresident business permit for the motor vehicle within 10 days after the commencement of such operation of the vehicle. Such a permit would require the payment of a fee, is nontransferable and is valid for 1 year. Section 1 also requires such a motor vehicle to comply with the registration, insurance and emissions testing requirements, if any, of the out-of-state location where the nonresident is a resident. If the location where the nonresident is a resident does not require emissions testing, section 1 requires such a motor vehicle to undergo emissions testing as if it were the vehicle of a Nevada resident. The provisions of section 1 do not apply to certain motor carriers or apportioned vehicles or vehicles that are leased or rented to lessees by short-term lessors.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 482 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in this section, NRS 482.390 and 706.801 to 706.861, inclusive, a nonresident who:
(a) Is not a natural person;
(b) Is the owner of a vehicle of a type subject to registration pursuant to the provisions of this chapter; and
(c) Allows that vehicle to be operated in this State by an employee, independent contractor or any other person for the purpose of engaging in the business of the nonresident within this State,
Κ shall, within 10 days after the commencement of such operation, apply for a nonresident business permit for the vehicle.
2. The Department shall grant an application for the permitting of a vehicle pursuant to subsection 1 if the nonresident owner of the vehicle:
(a) Submits proof that the vehicle has been registered for the current year in the state, country or other place of which the owner is a resident;
(b) Submits proof that the vehicle is currently insured in compliance with the laws of the state, country or other place of which the owner is a resident;
κ2013 Statutes of Nevada, Page 3192 (CHAPTER 503, AB 167)κ
(c) Submits proof that the vehicle has been tested for emissions in compliance with the laws of the state, country or other place of which the owner is a resident or, if the place where the owner is a resident does not require the testing of the emissions of motor vehicles, complies with the provisions of NRS 445B.700 to 445B.815, inclusive, and the regulations adopted pursuant thereto for the vehicle as if the vehicle were required to comply with those provisions; and
(d) Pays a fee of:
(1) Two hundred dollars for the first vehicle for which the owner obtains a permit pursuant to this section.
(2) One hundred and fifty dollars for each additional vehicle for which the owner obtains a permit pursuant to this section.
3. The Department shall issue to a nonresident owner who obtains a permit for a vehicle pursuant to this section an indicator for the permitted vehicle that must be displayed on the permitted vehicle when the permitted vehicle is operated in this State. The indicator issued pursuant to this subsection is nontransferable and expires 1 year after the date of issuance.
4. All fees paid pursuant to subsection 2 must be deposited with the State Treasurer for credit to the State Highway Fund and expended pursuant to subsection 2 of NRS 408.235.
5. A person who violates the provisions of this section is guilty of a misdemeanor and shall be punished:
(a) For the first offense, by a fine of not more than $500.
(b) For the second and each subsequent offense, by a fine of not more than $750.
Κ The failure of a person to comply with the provisions of this section for each vehicle to which this section applies constitutes a separate offense.
6. A vehicle may be cited for a violation of this section regardless of whether it is in operation or is parked on a highway, in a public parking lot or on private property which is open to the public if, after communicating with the owner or operator of the vehicle, the peace officer issuing the citation determines that the vehicle is required to be permitted pursuant to subsection 1. As used in this subsection, peace officer includes a constable.
7. The Department may adopt such regulations as are necessary to carry out the provisions of this section.
8. The provisions of this section do not apply with respect to a vehicle that is leased or rented to a lessee by a short-term lessor, as that term is defined in subsection 5 of NRS 482.053.
Sec. 2. NRS 482.103 is hereby amended to read as follows:
482.103 1. Resident includes, but is not limited to, a person:
(a) Whose legal residence is in the State of Nevada.
(b) Who engages in intrastate business and operates in such a business any motor vehicle, trailer or semitrailer, or any person maintaining such vehicles in this State, as the home state of such vehicles.
(c) Who physically resides in this State and engages in a trade, profession, occupation or accepts gainful employment in this State.
(d) Who declares that he or she is a resident of Nevada for purposes of obtaining privileges not ordinarily extended to nonresidents of this State.
2. The term does not include a person who is an actual tourist, an out-of-state student, a border state employee or a seasonal resident.
κ2013 Statutes of Nevada, Page 3193 (CHAPTER 503, AB 167)κ
3. The provisions of this section do not apply to persons who operate vehicles in this State under the provisions of NRS 482.385, 482.390, 482.395 or 706.801 to 706.861, inclusive [.] , or section 1 of this act.
Sec. 3. NRS 482.385 is hereby amended to read as follows:
482.385 1. Except as otherwise provided in subsections 5 and 7 and NRS 482.390, and section 1 of this act, a nonresident owner of a vehicle of a type subject to registration pursuant to the provisions of this chapter, owning any vehicle which has been registered for the current year in the state, country or other place of which the owner is a resident and which at all times when operated in this State has displayed upon it the registration license plate issued for the vehicle in the place of residence of the owner, may operate or permit the operation of the vehicle within this State without its registration in this State pursuant to the provisions of this chapter and without the payment of any registration fees to this State:
(a) For a period of not more than 30 days in the aggregate in any 1 calendar year; and
(b) Notwithstanding the provisions of paragraph (a), during any period in which the owner is:
(1) On active duty in the military service of the United States;
(2) An out-of-state student;
(3) Registered as a student at a college or university located outside this State and who is in the State for a period of not more than 6 months to participate in a work-study program for which the student earns academic credits from the college or university; or
(4) A migrant or seasonal farm worker.
2. This section does not:
(a) Prohibit the use of manufacturers, distributors or dealers license plates issued by any state or country by any nonresident in the operation of any vehicle on the public highways of this State.
(b) Require registration of vehicles of a type subject to registration pursuant to the provisions of this chapter operated by nonresident common motor carriers of persons or property, contract motor carriers of persons or property, or private motor carriers of property as stated in NRS 482.390.
(c) Require registration of a vehicle operated by a border state employee.
3. Except as otherwise provided in subsection 5, when a person, formerly a nonresident, becomes a resident of this State, the person shall:
(a) Within 30 days after becoming a resident; or
(b) At the time he or she obtains a drivers license,
Κ whichever occurs earlier, apply for the registration of each vehicle the person owns which is operated in this State. When a person, formerly a nonresident, applies for a drivers license in this State, the Department shall inform the person of the requirements imposed by this subsection and of the penalties that may be imposed for failure to comply with the provisions of this subsection.
4. A citation may be issued pursuant to subsection 1, 3 or 5 only if the violation is discovered when the vehicle is halted or its driver arrested for another alleged violation or offense. The Department shall maintain or cause to be maintained a list or other record of persons who fail to comply with the provisions of subsection 3 and shall, at least once each month, provide a copy of that list or record to the Department of Public Safety.
5. Except as otherwise provided in this subsection [,] and section 1 of this act, a resident or nonresident owner of a vehicle of a type subject to registration pursuant to the provisions of this chapter who engages in a trade, profession or occupation or accepts gainful employment in this State or who enrolls his or her children in a public school in this State shall, within 30 days after the commencement of such employment or enrollment, apply for the registration of each vehicle the person owns which is operated in this State.
κ2013 Statutes of Nevada, Page 3194 (CHAPTER 503, AB 167)κ
registration pursuant to the provisions of this chapter who engages in a trade, profession or occupation or accepts gainful employment in this State or who enrolls his or her children in a public school in this State shall, within 30 days after the commencement of such employment or enrollment, apply for the registration of each vehicle the person owns which is operated in this State. The provisions of this subsection do not apply to a nonresident who is:
(a) On active duty in the military service of the United States;
(b) An out-of-state student;
(c) Registered as a student at a college or university located outside this State and who is in the State for a period of not more than 6 months to participate in a work-study program for which the student earns academic credits from the college or university; or
(d) A migrant or seasonal farm worker.
6. A person who violates the provisions of subsection 1, 3 or 5 is guilty of a misdemeanor and, except as otherwise provided in this subsection, shall be punished by a fine of $1,000. The fine imposed pursuant to this subsection is in addition to any fine or penalty imposed for the other alleged violation or offense for which the vehicle was halted or its driver arrested pursuant to subsection 4. The fine imposed pursuant to this subsection may be reduced to not less than $200 if the person presents evidence at the time of the hearing that the person has registered the vehicle pursuant to this chapter.
7. Any resident operating upon a highway of this State a motor vehicle which is owned by a nonresident and which is furnished to the resident operator for his or her continuous use within this State, shall cause that vehicle to be registered within 30 days after beginning its operation within this State.
8. A person registering a vehicle pursuant to the provisions of subsection 1, 3, 5, 7 or 9 or pursuant to NRS 482.390:
(a) Must be assessed the registration fees and governmental services tax, as required by the provisions of this chapter and chapter 371 of NRS; and
(b) Must not be allowed credit on those taxes and fees for the unused months of the previous registration.
9. If a vehicle is used in this State for a gainful purpose, the owner shall immediately apply to the Department for registration, except as otherwise provided in NRS 482.390, 482.395 and 706.801 to 706.861, inclusive [.] , and section 1 of this act.
10. An owner registering a vehicle pursuant to the provisions of this section shall surrender the existing nonresident license plates and registration certificates to the Department for cancellation.
11. A vehicle may be cited for a violation of this section regardless of whether it is in operation or is parked on a highway, in a public parking lot or on private property which is open to the public if, after communicating with the owner or operator of the vehicle, the peace officer issuing the citation determines that:
(a) The owner of the vehicle is a resident of this State;
(b) The vehicle is used in this State for a gainful purpose;
(c) Except as otherwise provided in paragraph (b) of subsection 1, the owner of the vehicle is a nonresident and has operated the vehicle in this State for more than 30 days in the aggregate in any 1 calendar year; or
(d) The owner of the vehicle is a nonresident required to register the vehicle pursuant to subsection 5.
Κ As used in this subsection, peace officer includes a constable.
κ2013 Statutes of Nevada, Page 3195 (CHAPTER 503, AB 167)κ
Sec. 4. NRS 482.500 is hereby amended to read as follows:
482.500 1. Except as otherwise provided in subsection 2 or 3, whenever upon application any duplicate or substitute certificate of registration, indicator, decal or number plate is issued, the following fees must be paid:
For a certificate of registration........................................................... $5.00
For every substitute number plate or set of plates............................ 5.00
For every duplicate number plate or set of plates........................... 10.00
For every decal displaying a county name........................................... .50
For every other indicator, decal, license plate sticker or tab........... 5.00
2. The following fees must be paid for any replacement plate or set of plates issued for the following special license plates:
(a) For any special plate issued pursuant to NRS 482.3667, 482.367002, 482.3672, 482.3675, 482.370 to 482.376, inclusive, or 482.379 to 482.3818, inclusive, a fee of $10.
(b) For any special plate issued pursuant to NRS 482.368, 482.3765, 482.377 or 482.378, a fee of $5.
(c) Except as otherwise provided in paragraph (a) of subsection 1 of NRS 482.3824, for any souvenir license plate issued pursuant to NRS 482.3825 or sample license plate issued pursuant to NRS 482.2703, a fee equal to that established by the Director for the issuance of those plates.
3. A fee must not be charged for a duplicate or substitute of a decal issued pursuant to NRS 482.37635.
4. The fees which are paid for duplicate number plates and decals displaying county names must be deposited with the State Treasurer for credit to the Motor Vehicle Fund and allocated to the Department to defray the costs of duplicating the plates and manufacturing the decals.
Sec. 5. This act becomes effective:
1. Upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and
2. On January 1, 2014, for all other purposes.
________
κ2013 Statutes of Nevada, Page 3196κ
Assembly Bill No. 239Assemblywoman Kirkpatrick
CHAPTER 504
[Approved: June 11, 2013]
AN ACT relating to energy; authorizing the Director of the Office of Energy to charge and collect certain fees from applicants for certain energy-related tax incentives; revising provisions relating to eligibility for and approval of applicants for certain energy-related tax incentives; revising permissible uses of money in the Renewable Energy Fund; revising provisions relating to land use planning and the granting by local governments of permits for the construction of certain utility projects; establishing the Economic Development Electric Rate Rider Program; requiring the Public Utilities Commission of Nevada, in consultation with the Office of Economic Development, to administer the Program; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law authorizes the Director of the Office of Energy to grant partial abatements of certain taxes to eligible applicants. (NRS 701A.110, 701A.115, 701A.360, 701A.390) Sections 1, 2 and 7 of this bill authorize the Director to charge and collect a fee from each applicant in an amount not to exceed the actual cost to the Director of processing the application. Section 3 of this bill removes from the list of persons who are eligible for a partial abatement of certain taxes a person who operates a facility for the transmission of electricity generated from renewable energy or geothermal resources. Section 4 of this bill revises the authority of a board of county commissioners relating to the approval of an application for a partial abatement of taxes submitted by a person who operates a facility for the generation of electricity from renewable energy. Section 4 additionally revises provisions governing the wages and benefits that must be provided to employees working on the construction of such a facility. Section 6 of this bill removes the requirement that a certain percentage of the property taxes collected from a person who is receiving a partial abatement of taxes which would otherwise be allocated and distributed to local governments be deposited in the Renewable Energy Fund.
Section 7.5 of this bill revises the permissible uses by the Director of money in the Renewable Energy Fund.
Sections 10-21 of this bill establish the Economic Development Electric Rate Rider Program, a 5-year program to encourage the location or relocation of new commercial and industrial businesses in this State by providing discounted rates for electricity to eligible participants. Section 14 requires the Public Utilities Commission of Nevada, in consultation with the Office of Economic Development, to administer the Program. Section 14 additionally requires the Commission to establish an amount of electric generating capacity, not to exceed 50 megawatts, that each electric utility in this State is required to set aside for allocation pursuant to the Program. Section 15 authorizes a person who, in anticipation of the incentive provided pursuant to the Program, locates or intends to locate a new commercial or industrial business in this State to submit an application to the Office of Economic Development to participate in the Program. Section 15 requires an applicant to obtain initial approval and a letter of eligibility from the Office. Once an applicant has obtained initial approval and a letter of eligibility from the Office, section 16 requires the Commission to establish the discounted rates for electricity available to the applicant and to establish and approve the terms of the contract which the applicant must enter into with an electric utility. Section 17 provides that an electric utility is required to recover the amount of the discount provided to a participant from the deferred energy account of the electric utility. Section 21 requires the Commission to prepare and submit a report to the Legislature concerning the Program.
κ2013 Statutes of Nevada, Page 3197 (CHAPTER 504, AB 239)κ
Section 21.5 of this bill provides that a public utility is not required to include a utility facility, the construction of which has been approved by the Commission, in the integrated resource plan of the utility if the facility is not intended to serve customers in this State and the cost of the facility will not be included in the rates charged by the utility.
Existing law requires a person who wishes to obtain a permit for a utility facility to file certain applications with the Commission if a federal agency is required to conduct an environmental analysis of the proposed utility facility. (NRS 704.870) Sections 23 and 24 of this bill require such a person to file a notice with the Commission not later than the date on which the person files with the appropriate federal agency.
Sections 27.1-27.9 of this bill revise provisions relating to land use permits for the construction of certain utility projects. Section 27.5 requires a planning commission or governing body that is required to prepare and adopt a master plan to include in the master plan an aboveground utility plan. Section 27.7 requires each governing body of a local government to establish a process for the issuance of: (1) permits for the construction of aboveground utility projects; (2) special use permits for the construction of aboveground utility projects which are to be constructed outside of the corridors identified in the master plan; and (3) special use permits for the construction of renewable energy generation projects with a nameplate capacity of 10 megawatts or more. Section 27.9 provides that an applicant for such a special use permit may appeal certain decisions of the planning commission or governing body concerning the application to the Public Utilities Commission of Nevada.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 701A.110 is hereby amended to read as follows:
701A.110 1. Except as otherwise provided in this section, the Director, in consultation with the Office of Economic Development, shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure that is determined to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100, if:
(a) No funding is provided by any governmental entity in this State for the acquisition, design or construction of the building or other structure or for the acquisition of any land therefor. For the purposes of this paragraph:
(1) Private activity bonds must not be considered funding provided by a governmental entity.
(2) The term private activity bond has the meaning ascribed to it in 26 U.S.C. § 141.
(b) The owner of the property:
(1) Submits an application for the partial abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.
(2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100.
κ2013 Statutes of Nevada, Page 3198 (CHAPTER 504, AB 239)κ
determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100. The Director may, for good cause shown, extend the period for providing such proof.
(3) Files a copy of each application and amended application submitted to the Director pursuant to subparagraph (1) with the:
(I) Chief of the Budget Division of the Department of Administration;
(II) Department of Taxation;
(III) County assessor;
(IV) County treasurer;
(V) Office of Economic Development;
(VI) Board of county commissioners; and
(VII) City manager and city council, if any.
(c) The abatement is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.
2. As soon as practicable after the Director receives the application and proof required by subsection 1, the Director, in consultation with the Office of Economic Development, shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:
(a) Department of Taxation;
(b) County assessor;
(c) County treasurer; and
(d) Office of Economic Development.
3. The Director may, with the assistance of the Chief of the Budget Division and the Department of Taxation, publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and on each affected local government. If the Director publishes a fiscal note that estimates the fiscal impact of the partial abatement on local government, the Director shall forward a copy of the fiscal note to each affected local government. As soon as practicable after receiving a copy of a certificate of eligibility pursuant to subsection 2, the Department of Taxation shall forward a copy of the certificate to each affected local government.
4. The partial abatement:
(a) Must be for a duration of not more than 10 years and in an annual amount that equals, for a building or other structure that meets the equivalent of:
(1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land;
(2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land; or
(3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land.
κ2013 Statutes of Nevada, Page 3199 (CHAPTER 504, AB 239)κ
(b) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.
(c) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:
(1) Department of Taxation, who shall immediately notify each affected local government of the determination;
(2) County assessor;
(3) County treasurer; and
(4) Office of Economic Development.
(d) Must not be for an existing building or structure that is renovated.
5. If a partial abatement terminates pursuant to paragraph (c) of subsection 4, the owner of the property to which the partial abatement applied shall repay to the county treasurer the amount of the exemption that was allowed pursuant to this section before the date of that termination. The owner shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.
6. The Director, in consultation with the Office of Economic Development, shall adopt regulations:
(a) Establishing the qualifications and methods to determine eligibility for the abatement;
(b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and
(c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (b) of subsection 1,
Κ and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.
7. The Director shall:
(a) Cooperate with the Office of Economic Development in carrying out the provisions of this section; and
(b) Submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section.
8. The Director may charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to this section. The amount of the fee must not exceed the actual cost to the Director for processing the application and evaluating the proof submitted by the applicant pursuant to subsection 1 and making the determination concerning eligibility for the partial abatement required by subsection 2.
9. As used in this section:
κ2013 Statutes of Nevada, Page 3200 (CHAPTER 504, AB 239)κ
(a) Building or other structure does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families.
(b) Director means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(c) Taxes imposed for public education means:
(1) Any ad valorem tax authorized or required by chapter 387 of NRS;
(2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and
(3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.
Sec. 2. NRS 701A.115 is hereby amended to read as follows:
701A.115 1. Except as otherwise provided in this section, the Director of the Office of Energy shall grant a partial abatement from the portion of taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on an existing building or other structure which is renovated for use by a manufacturer if:
(a) The building or other structure is determined after the renovation to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100.
(b) The applicant:
(1) Is a manufacturer who intends to locate a new manufacturing business in this State;
(2) Employs at least 25 full-time employees at the new manufacturing business in this State during the entire period in which the applicant will receive the tax abatement; and
(3) The average hourly wage that will be paid by the manufacturer to its employees in this State is at least 100 percent of the average statewide hourly wage or the average countywide hourly wage, whichever is less, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.
(c) No funding is provided by any governmental entity in this State for the acquisition, design, construction or renovation of the building or other structure or for the acquisition of any land therefore. For the purpose of this paragraph:
(1) Private activity bonds must not be considered funding provided by a governmental entity.
(2) The term private activity bond has the meaning ascribed to it in 26 U.S.C. § 141.
(d) The manufacturer:
(1) Submits an application for the abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes.
(2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100.
κ2013 Statutes of Nevada, Page 3201 (CHAPTER 504, AB 239)κ
the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100. The Director may, for good cause shown, extend the period for providing such proof.
(3) Files a copy of each application and amended application submitted to the Director pursuant to subparagraph (1) with the:
(I) Chief of the Budget Division of the Department of Administration;
(II) Department of Taxation;
(III) County assessor;
(IV) County treasurer;
(V) Office of Economic Development;
(VI) Board of county commissioners; and
(VII) City manager and city council, if any.
2. As soon as practicable after the Director receives an application and proof required by subsection 1, the Director shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:
(a) Department of Taxation;
(b) County assessor;
(c) County treasurer; and
(d) Office of Economic Development.
3. As soon as practicable after receiving a copy of:
(a) An application pursuant to subparagraph (3) of paragraph (d) of subsection 1:
(1) The Chief of the Budget Division shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State; and
(2) The Department of Taxation shall publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on each affected local government, and forward a copy of the fiscal note to each affected local government.
(b) A certificate of eligibility pursuant to subsection 2, the Department of Taxation shall forward a copy of the certificate to each affected local government.
4. The partial abatement:
(a) Must be for a duration not to exceed 1 year, and in an annual amount that equals, for a building or other structure that meets the equivalent of:
(1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land;
(2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land; or
(3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be payable for the building or other structure, excluding the associated land.
κ2013 Statutes of Nevada, Page 3202 (CHAPTER 504, AB 239)κ
(b) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.
(c) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:
(1) Department of Taxation, who shall immediately notify each affected local government of the determination;
(2) County assessor;
(3) County treasurer; and
(4) Office of Economic Development.
5. The Director shall adopt regulations:
(a) Establishing the qualifications and methods to determine eligibility for the abatement;
(b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and
(c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (d) of subsection 1,
Κ and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.
6. The Director may charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to this section. The amount of the fee must not exceed the actual cost to the Director for processing the application and evaluating the proof submitted by the applicant pursuant to subsection 1 and making the determination concerning eligibility for the partial abatement required by subsection 2.
7. As used in this section:
(a) Building or other structure does not include any building or other structure for which the principal use is as a residential dwelling, even if the building or other structure is used for more than four families.
(b) Director means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(c) Manufacturer means a person engaged primarily in manufacturing or processing which changes raw or unfinished materials into another form or creates another product.
(d) Taxes imposed for public education means:
(1) Any ad valorem tax authorized or required by chapter 387 of NRS;
(2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and
(3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.
κ2013 Statutes of Nevada, Page 3203 (CHAPTER 504, AB 239)κ
Sec. 2.5. NRS 701A.340 is hereby amended to read as follows:
701A.340 1. Renewable energy means:
(a) Biomass;
(b) Fuel cells;
(c) Geothermal energy;
(d) Solar energy;
[(d)] (e) Waterpower; or
[(e)] (f) Wind.
2. The term does not include coal, natural gas, oil, propane or any other fossil fuel [, geothermal energy] or nuclear energy.
Sec. 3. NRS 701A.360 is hereby amended to read as follows:
701A.360 1. A person who intends to locate a facility for the generation of process heat from solar renewable energy [,] or a wholesale facility for the generation of electricity from renewable energy [, a facility for the generation of electricity from geothermal resources or a facility for the transmission of electricity produced from renewable energy or geothermal resources] in this State may apply to the Director for a partial abatement of the local sales and use taxes, the taxes imposed pursuant to chapter 361 of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS. An applicant may submit a copy of the application to the board of county commissioners at any time after the applicant has submitted the application to the Director.
2. A facility that is owned, operated, leased or otherwise controlled by a governmental entity is not eligible for an abatement pursuant to NRS 701A.300 to 701A.390, inclusive.
3. As soon as practicable after the Director receives an application for a partial abatement, the Director shall forward a copy of the application to:
(a) The Chief of the Budget Division of the Department of Administration;
(b) The Department of Taxation;
(c) The board of county commissioners;
(d) The county assessor;
(e) The county treasurer; and
(f) The Office of Economic Development.
4. With the copy of the application forwarded to the county treasurer, the Director shall include a notice that the local jurisdiction may request a presentation regarding the facility. A request for a presentation must be made within 30 days after receipt of the application.
5. The Director shall hold a public hearing on the application. The hearing must not be held earlier than 30 days after all persons listed in subsection 3 have received a copy of the application.
Sec. 4. NRS 701A.365 is hereby amended to read as follows:
701A.365 1. Except as otherwise provided in subsection 2, the Director, in consultation with the Office of Economic Development, shall approve an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, if the Director, in consultation with the Office of Economic Development, makes the following determinations:
(a) The applicant has executed an agreement with the Director which must:
(1) State that the facility will, after the date on which a certificate of eligibility for the abatement is issued pursuant to NRS 701A.370, continue in operation in this State for a period specified by the Director, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and
κ2013 Statutes of Nevada, Page 3204 (CHAPTER 504, AB 239)κ
operation in this State for a period specified by the Director, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and
(2) Bind the successors in interest in the facility for the specified period.
(b) The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.
(c) No funding is or will be provided by any governmental entity in this State for the acquisition, design or construction of the facility or for the acquisition of any land therefor, except any private activity bonds as defined in 26 U.S.C. § 141.
(d) If the facility will be located in a county whose population is 100,000 or more or a city whose population is 60,000 or more, the facility meets the following requirements:
(1) There will be 75 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Director for good cause, at least [30] 50 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $10,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) [The] Except as otherwise provided in subsection 6, the average hourly wage of the employees working on the construction of the facility will be at least [150] 175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that is provided by a third-party administrator and includes [an option for] health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Director by regulation pursuant to NRS 701A.390.
(e) If the facility will be located in a county whose population is less than 100,000 or a city whose population is less than 60,000, the facility meets the following requirements:
(1) There will be 50 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Director for good cause, at least [30] 50 percent who are residents of Nevada;
(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State;
(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
κ2013 Statutes of Nevada, Page 3205 (CHAPTER 504, AB 239)κ
by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) [The] Except as otherwise provided in subsection 6, the average hourly wage of the employees working on the construction of the facility will be at least [150] 175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the construction of the facility must be provided a health insurance plan that is provided by a third-party administrator and includes [an option for] health insurance coverage for dependents of the employees; and
(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Director by regulation pursuant to NRS 701A.390.
(f) The financial benefits that will result to this State from the employment by the facility of the residents of this State and from capital investments by the facility in this State will exceed the loss of tax revenue that will result from the abatement.
(g) The facility is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.
2. The Director shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to NRS 701A.360 by a facility for the generation of process heat from solar renewable energy or a wholesale facility for the generation of electricity from [geothermal resources] renewable energy unless the application is approved or deemed approved pursuant to this subsection. The board of county commissioners of a county must provide notice to the Director that the board intends to consider an application and, if such notice is given, must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners [must] :
(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;
(b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that:
(1) The projected cost of the services that the local government is required to provide to the facility will exceed the amount of tax revenue that the local government is projected to receive as a result of the abatement; or
(2) The projected financial benefits that will result to the county from the employment by the facility of the residents of this State and from capital investments by the facility in the county will not exceed the projected loss of tax revenue that will result from the abatement;
(c) Must not condition the approval of the application on a requirement that the facility [for the generation of electricity from geothermal resources] agree to purchase, lease or otherwise acquire in its own name or on behalf of the county any infrastructure, equipment, facilities or other property in the county that is not directly related to or otherwise necessary for the construction and operation of the facility [.] ; and
κ2013 Statutes of Nevada, Page 3206 (CHAPTER 504, AB 239)κ
(d) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.
Κ If the board of county commissioners does not approve or deny the application within 30 days after the board receives from the Director a copy of the application, the application shall be deemed [denied.] approved.
3. Notwithstanding the provisions of subsection 1, the Director, in consultation with the Office of Economic Development, may, if the Director, in consultation with the Office, determines that such action is necessary:
(a) Approve an application for a partial abatement for a facility that does not meet the requirements set forth in paragraph (d) or (e) of subsection 1; or
(b) Add additional requirements that a facility must meet to qualify for a partial abatement.
4. The Director shall cooperate with the Office of Economic Development in carrying out the provisions of this section.
5. The Director shall submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section.
6. The provisions of subparagraph (4) of paragraph (d) of subsection 1 and subparagraph (4) of paragraph (e) of subsection 1 concerning the average hourly wage of the employees working on the construction of a facility do not apply to the wages of an apprentice as that term is defined in NRS 610.010.
7. As used in this section, wage or wages has the meaning ascribed to it in NRS 338.010.
Sec. 5. (Deleted by amendment.)
Sec. 6. NRS 701A.385 is hereby amended to read as follows:
701A.385 Notwithstanding any statutory provision to the contrary, if the Director approves an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, of [:
1. Property taxes imposed pursuant to chapter 361 of NRS, the amount of all the property taxes which are collected from the facility for the period of the abatement must be allocated and distributed in such a manner that:
(a) Forty-five percent of that amount is deposited in the Renewable Energy Fund created by NRS 701A.450; and
(b) Fifty-five percent of that amount is distributed to the local governmental entities that would otherwise be entitled to receive those taxes in proportion to the relative amount of those taxes those entities would otherwise be entitled to receive.
2. Local] local sales and use taxes, the State Controller shall allocate, transfer and remit an amount equal to all the sales and use taxes imposed in this State and collected from the facility for the period of the abatement in the same manner as if that amount consisted solely of the proceeds of taxes imposed by NRS 374.110 and 374.190.
Sec. 7. NRS 701A.390 is hereby amended to read as follows:
701A.390 The Director:
1. Shall adopt regulations:
(a) Prescribing the minimum level of benefits that a facility must provide to its employees if the facility is going to use benefits paid to employees as a basis to qualify for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive;
κ2013 Statutes of Nevada, Page 3207 (CHAPTER 504, AB 239)κ
(b) Prescribing such requirements for an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, as will ensure that all information and other documentation necessary for the Director, in consultation with the Office of Economic Development, to make an appropriate determination is filed with the Director;
(c) Requiring each recipient of a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, to file annually with the Director such information and documentation as may be necessary for the Director to determine whether the recipient is in compliance with any eligibility requirements for the abatement; and
(d) Regarding the capital investment that a facility must make to meet the requirement set forth in paragraph (d) or (e) of subsection 1 of NRS 701A.365; and
2. May adopt such other regulations as the Director determines to be necessary to carry out the provisions of NRS 701A.300 to 701A.390, inclusive [.] ; and
3. May charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive. The amount of the fee must not exceed the actual cost to the Director for processing and approving the application.
Sec. 7.5. NRS 701A.450 is hereby amended to read as follows:
701A.450 1. The Renewable Energy Fund is hereby created.
2. The Director of the Office of Energy appointed pursuant to NRS 701.150 shall administer the Fund.
3. The interest and income earned on the money in the Fund must be credited to the Fund.
4. Not less than 75 percent of the money in the Fund must be used to offset the cost of electricity to or the use of electricity by retail customers of a public utility that is subject to the portfolio standard established by the Public Utilities Commission of Nevada pursuant to NRS 704.7821.
5. The Director of the Office of Energy may establish other uses of the money in the Fund by regulation.
Sec. 8. Chapter 704 of NRS is hereby amended by adding thereto the provisions set forth as sections 9 to 21.5, inclusive, of this act.
Sec. 9. (Deleted by amendment.)
Sec. 10. As used in sections 10 to 21, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 11, 12 and 13 of this act have the meanings ascribed to them in those sections.
Sec. 11. Electric utility has the meaning ascribed to it in NRS 704.187.
Sec. 12. Participant means an applicant who has received initial approval and a letter of eligibility from the Office of Economic Development pursuant to section 15 of this act and who enters into a contract approved by the Commission pursuant to section 16 of this act.
Sec. 13. Program means the Economic Development Electric Rate Rider Program established by section 14 of this act to carry out the provisions of sections 10 to 21, inclusive, of this act.
Sec. 14. 1. The Economic Development Electric Rate Rider Program is hereby established for the purpose of attracting new commercial and industrial businesses to this State. The Commission, in consultation with the Office of Economic Development, shall administer the Program.
κ2013 Statutes of Nevada, Page 3208 (CHAPTER 504, AB 239)κ
2. Each electric utility in this State shall set aside an amount of capacity determined by the Commission for allocation to new customers pursuant to the Program, but the total amount of capacity that the Commission may require to be set aside by all electric utilities in this State pursuant to this subsection must not exceed 50 megawatts.
Sec. 15. 1. A person who, in anticipation of the incentive provided pursuant to the Program, locates or intends to locate a new commercial or industrial business in this State may apply to the Office of Economic Development to participate in the Program.
2. An application to participate in the Program must be submitted on a form approved by the Office of Economic Development and must include:
(a) The name, business address and telephone number of the applicant;
(b) The location or proposed location of the applicants facility and a detailed description of the facility;
(c) Proof satisfactory to the Office of Economic Development that the applicant satisfies the criteria for eligibility set forth in subsection 3;
(d) An attestation, on a form approved by the Office of Economic Development, that but for the incentive provided pursuant to the Program, the applicant would not have located or intended to locate the business in this State; and
(e) Any other information required by the Office of Economic Development.
3. To be eligible for participation in the Program, an applicant must demonstrate that:
(a) The applicant is or intends to be a new commercial or industrial customer of an electric utility in this State;
(b) The applicant is not, and has not been during the immediately preceding 12 months, a customer of any other electric utility in this State;
(c) The new load to be served by the electric utility is more than 300 kilowatts;
(d) The electric utility has determined that the applicants use of the load is not for a project, purpose or facility which carries an abnormal risk or is seasonal, intermittent or temporary; and
(e) The applicant has applied for each economic incentive, including, without limitation, any abatement or partial abatement of taxes, offered by the State or any local government for which the applicant is eligible.
4. Upon the receipt of a completed application, the Office of Economic Development shall consider the application and make a determination of whether the applicant satisfies the criteria for eligibility. If the Office of Economic Development determines that the applicant satisfies the criteria for eligibility, the Office of Economic Development may give initial approval to the applicant.
5. If the Office of Economic Development gives initial approval to an applicant, the Office of Economic Development shall:
(a) Provide notice of the initial approval to the applicant;
(b) Issue to the applicant a letter of eligibility; and
(c) Forward a copy of the applicants application and letter of eligibility to the Commission.
κ2013 Statutes of Nevada, Page 3209 (CHAPTER 504, AB 239)κ
Sec. 16. 1. Upon receipt of an application and letter of eligibility pursuant to paragraph (c) of subsection 5 of section 15 of this act, the Commission shall:
(a) Review the application;
(b) Establish the rates which may be charged to the applicant by the electric utility that will serve the load of the applicant; and
(c) In addition to the terms required by subsection 3, establish any additional terms which must be included in the contract between the applicant and the electric utility.
2. Before any applicant enters into a contract with an electric utility pursuant to the Program, the applicant shall:
(a) Provide to the electric utility that will serve the load of the applicant access to the applicants facility or plans for the facility for the purpose of the electric utility making recommendations concerning the energy efficiency of the facility; and
(b) Provide proof satisfactory to the Commission that the new load under the contract will have an annual load factor of 50 percent or more for each year of the term of the contract.
3. An applicant may participate in the Program pursuant to a contract which is entered into by the applicant and the electric utility that will serve the load of the applicant and which is approved by the Commission. A contract entered into pursuant to this section must include provisions setting forth:
(a) The term of the contract, which must be 5 years;
(b) The term of the discounts applicable under the Program, which must be 4 years;
(c) The rates to be paid for electricity by the participant;
(d) That the discount approved by the Commission does not apply to up-front costs, the base tariff general rate, any otherwise applicable tariff or any taxes, surcharges, amortization or program rate elements;
(e) The deposit requirements, which must be based on the rates applicable under the second year of the contract;
(f) That the participant ceases to be eligible for any discounted rates for electricity if the participant fails to satisfy any requirements set forth in the contract or sections 10 to 21, inclusive, of this act or any regulations adopted pursuant thereto; and
(g) Any additional requirements prescribed by the Commission.
4. An electric utility shall prepare a contract to be entered into by the electric utility and a participant and submit the contract to the Commission for approval. Upon approval of the contract by the Commission, the electric utility and the applicant may enter into the contract and the applicant may participate in the Program. The Commission shall forward a copy of the approved contract to the Office of Economic Development.
Sec. 17. Notwithstanding any other provision of this chapter, an electric utility that enters into a contract with a participant pursuant to section 16 of this act shall, in the manner provided pursuant to the regulations adopted by the Commission pursuant to paragraph (c) of subsection 1 of section 20 of this act, recover through a deferred energy accounting adjustment application an amount equal to the discount provided to the participant pursuant to the contract.
Sec. 18. If the Commission determines that a participant in the Program has failed to fulfill any requirement of the contract or carry out any duty imposed pursuant to the Program, the Commission shall issue an order requiring the participant to pay to the electric utility an amount equal to the rate which would have been charged but for the participants participation in the Program.
κ2013 Statutes of Nevada, Page 3210 (CHAPTER 504, AB 239)κ
any duty imposed pursuant to the Program, the Commission shall issue an order requiring the participant to pay to the electric utility an amount equal to the rate which would have been charged but for the participants participation in the Program.
Sec. 19. The Office of Economic Development shall not accept an application or give initial approval to any applicant for participation in the Program, and the Commission shall not approve an applicant for participation in the Program, after the earlier of December 31, 2017, or the date on which the capacity set aside for allocation pursuant to the Program is fully allocated.
Sec. 20. The Commission, in consultation with the Office of Economic Development:
1. Shall adopt regulations:
(a) Establishing the discounted electric rates that may be charged by an electric utility pursuant to the Program, which must be established as a percentage of the base tariff energy rate and for which:
(1) In the first year of a contract entered into pursuant to section 16 of this act, the reduction in the rates as a result of the discount must not exceed 30 percent of the base tariff energy rate;
(2) In the second year of a contract entered into pursuant to section 16 of this act, the reduction in the rates as a result of the discount must not exceed 20 percent of the base tariff energy rate;
(3) In the third year of a contract entered into pursuant to section 16 of this act, the reduction in the rates as a result of the discount must not exceed 20 percent of the base tariff energy rate; and
(4) In the fourth year of a contract entered into pursuant to section 16 of this act, the reduction in the rates as a result of the discount must not exceed 10 percent of the base tariff energy rate;
(b) Prescribing the form and content of the contract entered into pursuant to section 16 of this act;
(c) Prescribing the procedure by which an electric utility is authorized to recover through a deferred energy accounting adjustment application the amount of the discount provided to a participant in the Program; and
(d) Prescribing any additional information which must be submitted by an applicant for participation in the Program.
2. May adopt any other regulations it determines are necessary to carry out the provisions of sections 10 to 21, inclusive, of this act.
Sec. 21. The Commission shall, on or before December 31, 2014, prepare a written report concerning the Program and submit the report to the Director of the Legislative Counsel Bureau for transmittal to the 78th Session of the Legislature. The report must include, without limitation, information concerning:
1. The number of participants in the Program;
2. The amount of electricity allocated pursuant to the Program;
3. The total amount of the discounts provided pursuant to the Program; and
4. The remaining amount of electricity available for allocation pursuant to the Program.
Sec. 21.5. If the Commission approves an application submitted by a public utility pursuant to NRS 704.820 to 704.900, inclusive, for a utility facility which is not intended to serve customers in this State and the cost of which will not be included in the rates of that public utility, the public utility is not required to include the utility facility in any plan filed pursuant to NRS 704.741.
κ2013 Statutes of Nevada, Page 3211 (CHAPTER 504, AB 239)κ
of which will not be included in the rates of that public utility, the public utility is not required to include the utility facility in any plan filed pursuant to NRS 704.741.
Sec. 22. NRS 704.848 is hereby amended to read as follows:
704.848 1. Other permitting entity means any state or local entity:
(a) That is responsible for the enforcement of environmental laws and whose approval is required for the construction of a utility facility, including, without limitation, the State Environmental Commission, the State Department of Conservation and Natural Resources and a local air pollution control board; or
(b) Whose approval is required for granting any variance, special use permit, conditional use permit or other special exception under NRS 278.010 to 278.319, inclusive, and sections 27.1 to 27.9, inclusive, of this act, or 278.640 to 278.675, inclusive, or any regulation or ordinance adopted pursuant thereto, that is required for the construction of a utility facility.
2. The term does not include the Commission or the State Engineer.
Sec. 23. NRS 704.870 is hereby amended to read as follows:
704.870 1. Except as otherwise provided in subsection 2, a person who wishes to obtain a permit for a utility facility must file with the Commission an application, in such form as the Commission prescribes, containing:
(a) A description of the location and of the utility facility to be built thereon;
(b) A summary of any studies which have been made of the environmental impact of the facility; and
(c) A description of any reasonable alternate location or locations for the proposed facility, a description of the comparative merits or detriments of each location submitted, and a statement of the reasons why the primary proposed location is best suited for the facility.
Κ A copy or copies of the studies referred to in paragraph (b) must be filed with the Commission and be available for public inspection.
2. If a person wishes to obtain a permit for a utility facility and a federal agency is required to conduct an environmental analysis of the proposed utility facility, the person must:
(a) Not later than the date on which the person files with the appropriate federal agency an application for approval for the construction of the utility facility, file with the Commission and each other permitting entity [an application,] a notice, in such a form as the Commission or other permitting entity prescribes ; [, containing:
(1) A general description of the proposed utility facility; and
(2) A summary of any studies which the applicant anticipates will be made of the environmental impact of the facility;] and
(b) Not later than 30 days after the issuance by the appropriate federal agency of [a] either the final environmental assessment or final environmental impact statement , but not the record of decision or similar document, relating to the construction of the utility facility:
(1) File with the Commission an [amended] application that complies with the provisions of subsection 1; and
(2) File with each other permitting entity an [amended] application for a permit, license or other approval for the construction of the utility facility.
κ2013 Statutes of Nevada, Page 3212 (CHAPTER 504, AB 239)κ
3. A copy of each application [and amended application] filed with the Commission must be filed with the Administrator of the Division of Environmental Protection of the State Department of Conservation and Natural Resources.
4. Each application [and amended application] filed with the Commission must be accompanied by:
(a) Proof of service of a copy of the application [or amended application] on the clerk of each local government in the area in which any portion of the facility is to be located, both as primarily and as alternatively proposed; and
(b) Proof that public notice thereof was given to persons residing in the municipalities entitled to receive notice pursuant to paragraph (a) by the publication of a summary of the application [or amended application] in newspapers published and distributed in the area in which the utility facility is proposed to be located.
5. Not later than 5 business days after the Commission receives an application [or amended application] pursuant to this section, the Commission shall issue a notice concerning the [application or amended] application. Any person who wishes to become a party to a permit proceeding pursuant to NRS 704.885 must file with the Commission the appropriate document required by NRS 704.885 within the time frame set forth in the notice issued by the Commission pursuant to this subsection.
Sec. 24. NRS 704.8905 is hereby amended to read as follows:
704.8905 1. Except as otherwise required to comply with federal law:
(a) Not later than 150 days after a person has filed an application regarding a utility facility pursuant to subsection 1 of NRS 704.870:
(1) The Commission shall grant or deny approval of that application; and
(2) Each other permitting entity shall, if an application for a permit, license or other approval for the construction of the utility facility was filed with the other permitting entity on or before the date on which the applicant filed the application pursuant to subsection 1 of NRS 704.870, grant or deny the application filed with the other permitting entity.
(b) Not later than 120 days after a person has filed an [amended] application regarding a utility facility pursuant to subsection 2 of NRS 704.870:
(1) The Commission shall grant or deny approval of the [amended] application; and
(2) Each other permitting entity shall, if an application for a permit, license or other approval for the construction of the utility facility was filed with the other permitting entity on or before the date on which the applicant filed with the appropriate federal agency an application for approval for the construction of the utility facility, grant or deny the [amended] application filed with the other permitting entity.
2. The Commission or other permitting entity shall make its determination upon the record and may grant or deny the application as filed, or grant the application upon such terms, conditions or modifications of the construction, operation or maintenance of the utility facility as the Commission or other permitting entity deems appropriate.
3. The Commission shall serve a copy of its order and any opinion issued with it upon each party to the proceeding before the Commission.
κ2013 Statutes of Nevada, Page 3213 (CHAPTER 504, AB 239)κ
Sec. 25. NRS 119.128 is hereby amended to read as follows:
119.128 An exemption pursuant to this chapter is not an exemption from the provisions of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
Sec. 26. NRS 119.340 is hereby amended to read as follows:
119.340 The provisions of this chapter are in addition to and not a substitute for NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
Sec. 27. Chapter 278 of NRS is hereby amended by adding thereto the provisions set forth as sections 27.1 to 27.9, inclusive, of this act.
Sec. 27.1. As used in sections 27.1 to 27.9, inclusive, of this act, unless the context otherwise requires, aboveground utility means an aboveground electric transmission line which is designed to operate at 200 kilovolts or more and which has been approved for construction after October 1, 1991, by the State or Federal Government or a governing body.
Sec. 27.5. 1. A planning commission or governing body that is required to prepare and adopt a master plan pursuant to the provisions of this chapter shall develop and include in that plan an aboveground utility plan as described in subsection 2. The aboveground utility plan must:
(a) In a county whose population is 700,000 or more, conform with the comprehensive regional policy plan developed pursuant to NRS 278.02528; and
(b) In a county whose population is 100,000 or more but less than 700,000, conform with the comprehensive regional plan developed pursuant to NRS 278.0272.
2. An aboveground utility plan developed by a planning commission or governing body pursuant to this section must:
(a) Provide a process for the designation of corridors for the construction of aboveground utility projects;
(b) Be consistent with any transmission plan prepared by the Office of Energy;
(c) To ensure the continuity of transmission corridors, be consistent with the aboveground utility plan of each adjacent jurisdiction; and
(d) Be consistent with any resource management plan prepared by the Bureau of Land Management applicable to the jurisdiction of the planning commission or governing body, including, without limitation, by ensuring that the aboveground utility plan developed by the planning commission or governing body provides for connectivity between any noncontiguous transmission corridors identified in the plan prepared by the Bureau of Land Management.
3. In developing an aboveground utility plan, a planning commission or governing body shall:
(a) Cooperate with the Bureau of Land Management, the Office of Energy and the planning commission or governing body of each adjacent jurisdiction to ensure that the aboveground utility plan adopted by the planning commission or governing body is consistent with any resource management plan prepared by the Bureau of Land Management, any transmission plan adopted by the Office of Energy and the aboveground utility plan developed by the planning commission or governing body of each adjacent jurisdiction; and
κ2013 Statutes of Nevada, Page 3214 (CHAPTER 504, AB 239)κ
(b) Submit a copy of the aboveground utility plan, including all maps and exhibits adopted as part of the plan, to the Public Utilities Commission of Nevada and the Office of Energy.
Sec. 27.7. Each governing body:
1. Shall establish a process for the issuance of a permit for the construction of an aboveground utility project which is located in a corridor for the construction of aboveground utility projects identified in the master plan adopted by the planning commission or governing body.
2. Shall establish a process for the issuance of a special use permit for the construction of an aboveground utility project which is not located in a corridor for the construction of aboveground utility projects identified in the master plan adopted by the planning commission or governing body. The process adopted by the governing body must include, without limitation, provisions:
(a) Requiring the planning commission or the governing body to review each completed application at a public hearing;
(b) Requiring the applicant to provide proof satisfactory to the planning commission or the governing body that the construction of the aboveground utility project does not conflict with any existing or planned infrastructure or other utility projects; and
(c) Authorizing the planning commission or the governing body to issue or deny the issuance of a special use permit for the construction of an aboveground utility project based on the proximity of the proposed site of the aboveground utility project to any school, hospital or urban residential area with a dwelling density greater than 2 units per gross acre.
3. Shall establish a process for the issuance of a special use permit for the construction of a renewable energy generation project with a nameplate capacity of 10 megawatts or more which must include, without limitation, provisions:
(a) Establishing the required contents of an application;
(b) Establishing the criteria by which the planning commission or the governing body will evaluate an application; and
(c) Requiring the planning commission or the governing body to review each completed application at a public hearing not later than 65 days after receiving the complete application.
4. May establish an expedited process for the issuance of a permit or special use permit described in subsections 1, 2 and 3 if the governing body determines that:
(a) The project will be located in an isolated or rural area; and
(b) There is minimal risk of disturbance to residents as a result of the construction of the project.
Sec. 27.9. 1. An applicant for the issuance of a special use permit for the construction of any utility project or for the construction of a renewable energy generation project with a nameplate capacity of 10 megawatts or more who:
(a) Believes that the decision of the planning commission or governing body to approve or deny the applicants application was not timely; or
(b) Disagrees with any conditions imposed by the special use permit issued by the planning commission or governing body,
Κ may, in the manner prescribed by the Public Utilities Commission of Nevada by regulation, petition the Public Utilities Commission of Nevada to review the decision of the planning commission or governing body.
κ2013 Statutes of Nevada, Page 3215 (CHAPTER 504, AB 239)κ
2. A petition submitted to the Public Utilities Commission of Nevada pursuant to this section must include:
(a) The name, mailing address and telephone number of the petitioner;
(b) The name of the planning commission or governing body to whom the petitioner applied for a special use permit;
(c) A statement of the decision of the planning commission or governing body from which review is sought;
(d) A statement of the resolution sought by the petitioner;
(e) A statement of the legal basis for the resolution sought by the petitioner;
(f) A copy of the application and all supporting documents submitted by the petitioner to the planning commission or governing body;
(g) A copy of each document issued by the planning commission or governing body relating to the application; and
(h) Any other information required by the Public Utilities Commission of Nevada.
3. In any proceeding before the Public Utilities Commission of Nevada concerning a petition submitted pursuant to this section, the parties:
(a) Must include:
(1) The petitioner;
(2) The planning commission or governing body whose decision is the subject of the petition; and
(3) The Regulatory Operations Staff of the Public Utilities Commission of Nevada; and
(b) May include:
(1) The Bureau of Consumer Protection in the Office of the Attorney General, upon the filing by the Bureau of Consumer Protection of a notice to intervene; and
(2) Any other person or entity that participated in any proceeding before the planning commission or governing body relating to the application for the issuance of a special use permit, if the person or entity petitions the Public Utilities Commission of Nevada for, and is granted, leave to intervene.
4. Not later than 150 days after receiving a petition to review the decision of a planning commission or governing body, the Public Utilities Commission of Nevada shall issue an order:
(a) Approving the decision of the planning commission or governing body;
(b) Directing the planning commission or governing body to issue a special use permit with such terms and conditions as the Public Utilities Commission of Nevada determines are reasonable; or
(c) Directing the planning commission or governing body to modify the terms and conditions of a special use permit in the manner prescribed by the Public Utilities Commission of Nevada.
5. An order issued by the Public Utilities Commission of Nevada pursuant to this section is final for the purposes of judicial review.
6. The Public Utilities Commission of Nevada shall adopt such regulations as it determines necessary to carry out the provisions of this section.
κ2013 Statutes of Nevada, Page 3216 (CHAPTER 504, AB 239)κ
Sec. 28. NRS 278.010 is hereby amended to read as follows:
278.010 As used in NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 278.0105 to 278.0195, inclusive, have the meanings ascribed to them in those sections.
Sec. 29. NRS 278.016 is hereby amended to read as follows:
278.016 Local ordinance means an ordinance enacted by the governing body of any city or county, pursuant to the powers granted in NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
Sec. 30. NRS 278.02327 is hereby amended to read as follows:
278.02327 1. Any application submitted to a governing body or its designee that concerns any matter relating to land use planning pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, or any ordinance, resolution or regulation adopted pursuant thereto, may not be accepted by the governing body or its designee if the application is incomplete.
2. The governing body or its designee shall, within 3 working days after receiving an application of the type described in subsection 1:
(a) Review the application for completeness;
(b) Accept the application if the governing body or its designee finds that the application is complete or return the application if the governing body or its designee finds that the application is incomplete; and
(c) If the governing body or its designee returns the application:
(1) Provide to the applicant a description of the additional information required; and
(2) If requested by the applicant, provide to the applicant a copy of the relevant provision of the ordinance, resolution or regulation which specifically requires the additional information or an explanation of why the additional information is necessary.
Sec. 31. NRS 278.0233 is hereby amended to read as follows:
278.0233 1. Any person who has any right, title or interest in real property, and who has filed with the appropriate state or local agency an application for a permit which is required by statute or an ordinance, resolution or regulation adopted pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act before that person may improve, convey or otherwise put that property to use, may bring an action against the agency to recover actual damages caused by:
(a) Any final action, decision or order of the agency which imposes requirements, limitations or conditions upon the use of the property in excess of those authorized by ordinances, resolutions or regulations adopted pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act in effect on the date the application was filed, and which:
(1) Is arbitrary or capricious; or
(2) Is unlawful or exceeds lawful authority.
(b) Any final action, decision or order of the agency imposing a tax, fee or other monetary charge that is not expressly authorized by statute or that is in excess of the amount expressly authorized by statute.
(c) The failure of the agency to act on that application within the time for that action as limited by statute, ordinance or regulation.
2. An action must not be brought under subsection 1:
κ2013 Statutes of Nevada, Page 3217 (CHAPTER 504, AB 239)κ
(a) Where the agency did not know, or reasonably could not have known, that its action, decision or order was unlawful or in excess of its authority.
(b) Based on the invalidation of an ordinance, resolution or regulation in effect on the date the application for the permit was filed.
(c) Where a lawful action, decision or order of the agency is taken or made to prevent a condition which would constitute a threat to the health, safety, morals or general welfare of the community.
(d) Where the applicant agrees in writing to extensions of time concerning his or her application.
(e) Where the applicant agrees in writing or orally on the record during a hearing to the requirements, limitations or conditions imposed by the action, decision or order, unless the applicant expressly states in writing or orally on the record during the hearing that a requirement, limitation or condition is agreed to under protest and specifies which paragraph of subsection 1 provides cause for the protest.
(f) For unintentional procedural or ministerial errors of the agency.
(g) Unless all administrative remedies have been exhausted.
(h) Against any individual member of the agency.
Sec. 32. NRS 278.0235 is hereby amended to read as follows:
278.0235 No action or proceeding may be commenced for the purpose of seeking judicial relief or review from or with respect to any final action, decision or order of any governing body, commission or board authorized by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act unless the action or proceeding is commenced within 25 days after the date of filing of notice of the final action, decision or order with the clerk or secretary of the governing body, commission or board.
Sec. 33. NRS 278.024 is hereby amended to read as follows:
278.024 1. In the region of this State for which there has been created by NRS 278.780 to 278.828, inclusive, a regional planning agency, the powers conferred by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act upon any other authority are subordinate to the powers of such regional planning agency, and may be exercised only to the extent that their exercise does not conflict with any ordinance or plan adopted by such regional planning agency. The powers conferred by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act shall be exercised whenever appropriate in furtherance of a plan adopted by the regional planning agency.
2. Upon the adoption by a regional planning agency created by NRS 278.780 to 278.828, inclusive, of any regional plan, any plan adopted pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act shall cease to be effective as to the territory embraced in such regional plan. Each planning commission and governing body whose previously adopted plan is so affected shall, within 90 days after the effective date of the regional plan, initiate any necessary procedure to revise its plan and any related zoning ordinances which affect adjacent territory.
Sec. 34. NRS 278.025 is hereby amended to read as follows:
278.025 1. In any region of this State for which there has been created by interstate compact a regional planning agency, the powers conferred by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act are subordinate to the powers of such regional planning agency, and may be exercised only to the extent that their exercise does not conflict with any ordinance or plan adopted by such regional planning agency.
κ2013 Statutes of Nevada, Page 3218 (CHAPTER 504, AB 239)κ
any ordinance or plan adopted by such regional planning agency. The powers conferred by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act shall be exercised whenever appropriate in furtherance of a plan adopted by the regional planning agency.
2. Upon the adoption by a regional planning agency created by interstate compact of any regional plan or interim plan, any plan adopted pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act shall cease to be effective as to the territory embraced in such regional or interim plan. Each planning commission and governing body whose previously adopted plan is so affected shall, within 90 days after the effective date of the regional or interim plan, initiate any necessary procedure to revise its plan and any related zoning ordinances which affect adjacent territory.
Sec. 35. NRS 278.02788 is hereby amended to read as follows:
278.02788 1. If a city has a sphere of influence that is designated in the comprehensive regional plan, the city shall adopt a master plan concerning the territory within the sphere of influence. The master plan and any ordinance required by the master plan must be consistent with the comprehensive regional plan. After adoption and certification of a master plan concerning the territory within the sphere of influence and after adopting the ordinances required by the master plan, if any, the city may exercise any power conferred pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act within its sphere of influence.
2. If the comprehensive regional plan designates that all or part of the sphere of influence of a city is a joint planning area, the master plan and any ordinance adopted by the city pursuant to subsection 1 must be consistent with the master plan that is adopted for the joint planning area.
3. Before certification of the master plan for the sphere of influence pursuant to NRS 278.028, any action taken by the county pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act within the sphere of influence of a city must be consistent with the comprehensive regional plan.
4. A person, county or city that is represented on the governing board and is aggrieved by a final determination of the county or, after the certification of the master plan for a sphere of influence, is aggrieved by a final determination of the city, concerning zoning, a subdivision map, a parcel map or the use of land within the sphere of influence may appeal the decision to the regional planning commission within 30 days after the determination. A person, county or city that is aggrieved by the determination of the regional planning commission may appeal the decision to the governing board within 30 days after the determination. A person, county or city that is aggrieved by the determination of the governing board may seek judicial review of the decision within 25 days after the determination.
Sec. 36. NRS 278.130 is hereby amended to read as follows:
278.130 1. If the governing body of a city or county collaborates in the creation of a regional planning commission and does not create a separate city or county planning commission, the regional planning commission shall perform for the city or county all the duties and functions delegated to a city or county planning commission by the terms of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
κ2013 Statutes of Nevada, Page 3219 (CHAPTER 504, AB 239)κ
2. If a regional planning commission has duties and functions pursuant to NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act which parallel the duties and functions of a city or county planning commission, the city or county planning commission has the responsibility for making decisions pertaining to planning which have a local effect, and the regional planning commission has the responsibility for making decisions pertaining to planning which have a regional or intergovernmental effect.
Sec. 37. NRS 278.140 is hereby amended to read as follows:
278.140 1. The formation of regional planning districts is authorized and a regional planning commission may be created, in accordance with the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, in lieu of separate city or county planning commissions as may be required or authorized by NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
2. Regional planning districts shall consist of a portion of a political subdivision, two or more contiguous political subdivisions or contiguous portions of two or more political subdivisions.
3. All territory embraced within a regional planning district shall be contiguous, except where the regional district is composed of two or more municipalities such territories need not be contiguous.
4. In a regional planning district, a regional planning commission shall function in all respects in accordance with the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, except that the plans of the regional planning commission shall coordinate the plans of any city or county planning commission within the region.
5. Reports required by NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act to be made to a governing body of a city or a county shall be made to the governing body of each city or county within the region, and the procedure set forth in NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act for action with respect to maps or subdivisions shall not be followed by the regional planning commission for subdivisions which lie within any territory in which there exists a functioning county or city planning commission.
Sec. 38. (Deleted by amendment.)
Sec. 39. NRS 278.150 is hereby amended to read as follows:
278.150 1. The planning commission shall prepare and adopt a comprehensive, long-term general plan for the physical development of the city, county or region which in the commissions judgment bears relation to the planning thereof.
2. The plan must be known as the master plan, and must be so prepared that all or portions thereof, except as otherwise provided in subsections 3 and 4, may be adopted by the governing body, as provided in NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act as a basis for the development of the city, county or region for such reasonable period of time next ensuing after the adoption thereof as may practically be covered thereby.
3. In counties whose population is 100,000 or more but less than 700,000, if the governing body of the city or county adopts only a portion of the master plan, it shall include in that portion a conservation plan, a housing plan and a population plan as provided in NRS 278.160.
κ2013 Statutes of Nevada, Page 3220 (CHAPTER 504, AB 239)κ
4. In counties whose population is 700,000 or more, the governing body of the city or county shall adopt a master plan for all of the city or county that must address each of the subjects set forth in subsection 1 of NRS 278.160.
Sec. 40. 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.
(d) Historic neighborhood preservation plan. The plan:
(1) Must include, without limitation:
(I) A plan to inventory historic neighborhoods.
(II) A statement of goals and methods to encourage the preservation of historic neighborhoods.
(2) May include, without limitation, the creation of a commission to monitor and promote the preservation of historic neighborhoods.
(e) Historical properties preservation plan. An inventory of significant historical, archaeological, paleontological and architectural properties as defined by a city, county or region, and a statement of methods to encourage the preservation of those properties.
(f) 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 to individuals and families in the community, regardless of income level.
(2) An inventory of existing affordable housing in the community, including, without limitation, housing that is available to rent or own, housing that is subsidized either directly or indirectly by this State, an agency or political subdivision of this State, or the Federal Government or an agency of the Federal Government, and housing that is accessible to persons with disabilities.
(3) An analysis of projected growth and the demographic characteristics of the community.
κ2013 Statutes of Nevada, Page 3221 (CHAPTER 504, AB 239)κ
(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 suitable for residential development. The analysis must include, without limitation:
(I) A determination of whether the existing infrastructure is sufficient to sustain the current needs and projected growth of the community; and
(II) An inventory of available parcels that are suitable for residential development and any zoning, environmental and other land-use planning restrictions that affect such parcels.
(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 for a period of at least 5 years.
(g) 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:
(1) Must address, if applicable:
(I) Mixed-use development, transit-oriented development, master-planned communities and gaming enterprise districts; and
(II) The coordination and compatibility of land uses with any military installation in the city, county or region, taking into account the location, purpose and stated mission of the military installation.
(2) 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.
(h) 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.
(i) 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.
(j) 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.
(k) 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.
(l) Rural neighborhoods preservation plan. In any county whose population is 700,000 or more, showing general plans to preserve the character and density of rural neighborhoods.
(m) Safety plan. In any county whose population is 700,000 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.
κ2013 Statutes of Nevada, Page 3222 (CHAPTER 504, AB 239)κ
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.
(n) School facilities plan. Showing the general locations of current and future school facilities based upon information furnished by the appropriate local school district.
(o) 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.
(p) Solid waste disposal plan. Showing general plans for the disposal of solid waste.
(q) 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.
(r) Transit plan. Showing a proposed multimodal system of transit lines, including mass transit, streetcar, motorcoach and trolley coach lines, paths for bicycles and pedestrians, satellite parking and related facilities.
(s) 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.
(t) Aboveground utility plan. Showing corridors designated for the construction of aboveground utilities.
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, and sections 27.1 to 27.9, inclusive, of this act prohibits the preparation and adoption of any such subject as a part of the master plan.
Sec. 41. NRS 278.190 is hereby amended to read as follows:
278.190 1. The commission shall endeavor to promote public interest in and understanding of the master plan and of official plans and regulations relating thereto. As a means of furthering the purpose of a master plan, the commission shall annually make recommendations to the governing body for the implementation of the plan.
2. It also shall consult and advise with public officials and agencies, public utility companies, civic, educational, professional and other organizations, and with citizens generally with relation to the carrying out of such plans.
3. The commission, and its members, officers and employees, in the performance of their functions, may enter upon any land and make examinations and surveys and place and maintain necessary monuments and marks thereon.
4. In general, the commission shall have such power as may be necessary to enable it to fulfill its functions and carry out the provisions of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
Sec. 42. NRS 278.200 is hereby amended to read as follows:
278.200 The master plan shall be a map, together with such charts, drawings, diagrams, schedules, reports, ordinances, or other printed or published material, or any one or a combination of any of the foregoing as may be considered essential to the purposes of NRS 278.010 to 278.630, inclusive [.]
κ2013 Statutes of Nevada, Page 3223 (CHAPTER 504, AB 239)κ
published material, or any one or a combination of any of the foregoing as may be considered essential to the purposes of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
Sec. 43. NRS 278.250 is hereby amended to read as follows:
278.250 1. For the purposes of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, 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 [.] , and sections 27.1 to 27.9, inclusive, of this act. 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 consider existing views and access to solar resources by studying the height of new buildings which will cast shadows on surrounding residential and commercial developments.
(d) To reduce the consumption of energy by encouraging the use of products and materials which maximize energy efficiency in the construction of buildings.
(e) To provide for recreational needs.
(f) To protect life and property in areas subject to floods, landslides and other natural disasters.
(g) To conform to the adopted population plan, if required by NRS 278.170.
(h) To develop a timely, orderly and efficient arrangement of transportation and public facilities and services, including public access and sidewalks for pedestrians, and facilities and services for bicycles.
(i) To ensure that the development on land is commensurate with the character and the physical limitations of the land.
(j) 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.
(k) To promote health and the general welfare.
(l) To ensure the development of an adequate supply of housing for the community, including the development of affordable housing.
(m) To ensure the protection of existing neighborhoods and communities, including the protection of rural preservation neighborhoods and, in counties whose population is 700,000 or more, the protection of historic neighborhoods.
(n) To promote systems which use solar or wind energy.
(o) To foster the coordination and compatibility of land uses with any military installation in the city, county or region, taking into account the location, purpose and stated mission of the military installation.
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.
κ2013 Statutes of Nevada, Page 3224 (CHAPTER 504, AB 239)κ
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. 44. NRS 278.300 is hereby amended to read as follows:
278.300 1. The board of adjustment shall have the following powers:
(a) To hear and decide appeals where it is alleged by the appellant that there is an error in any order, requirement, decision or refusal made by an administrative official or agency based on or made in the enforcement of any zoning regulation or any regulation relating to the location or soundness of structures.
(b) To hear and decide, in accordance with the provisions of any such regulation, requests for variances, or for interpretation of any map, or for decisions upon other special questions upon which the board is authorized by any such regulation to pass.
(c) Where by reason of exceptional narrowness, shallowness, or shape of a specific piece of property at the time of the enactment of the regulation, or by reason of exceptional topographic conditions or other extraordinary and exceptional situation or condition of the piece of property, the strict application of any regulation enacted under NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act would result in peculiar and exceptional practical difficulties to, or exceptional and undue hardships upon, the owner of the property, to authorize a variance from that strict application so as to relieve the difficulties or hardship, if the relief may be granted without substantial detriment to the public good, without substantial impairment of affected natural resources and without substantially impairing the intent and purpose of any ordinance or resolution.
(d) To hear and decide requests for special use permits or other special exceptions, in such cases and under such conditions as the regulations may prescribe.
2. The majority vote of the board of adjustment is necessary to reverse any order, requirement, decision or determination of any administrative official or agency, or to decide in favor of the appellant.
Sec. 45. NRS 278.320 is hereby amended to read as follows:
278.320 1. Subdivision means any land, vacant or improved, which is divided or proposed to be divided into five or more lots, parcels, sites, units or plots, for the purpose of any transfer or development, or any proposed transfer or development, unless exempted by one of the following provisions:
κ2013 Statutes of Nevada, Page 3225 (CHAPTER 504, AB 239)κ
units or plots, for the purpose of any transfer or development, or any proposed transfer or development, unless exempted by one of the following provisions:
(a) The term subdivision does not apply to any division of land which is subject to the provisions of NRS 278.471 to 278.4725, inclusive.
(b) Any joint tenancy or tenancy in common shall be deemed a single interest in land.
(c) Unless a method of disposition is adopted for the purpose of evading this chapter or would have the effect of evading this chapter, the term subdivision does not apply to:
(1) Any division of land which is ordered by any court in this State or created by operation of law;
(2) A lien, mortgage, deed of trust or any other security instrument;
(3) A security or unit of interest in any investment trust regulated under the laws of this State or any other interest in an investment entity;
(4) Cemetery lots; or
(5) An interest in oil, gas, minerals or building materials, which are now or hereafter severed from the surface ownership of real property.
2. A common-interest community consisting of five or more units shall be deemed to be a subdivision of land within the meaning of this section, but need only comply with NRS 278.326 to 278.460, inclusive, and 278.473 to 278.490, inclusive.
3. The board of county commissioners of any county may exempt any parcel or parcels of land from the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, if:
(a) The land is owned by a railroad company or by a nonprofit corporation organized and existing pursuant to the provisions of chapter 81 or 82 of NRS which is an immediate successor in title to a railroad company, and the land was in the past used in connection with any railroad operation; and
(b) Other persons now permanently reside on the land.
4. Except as otherwise provided in subsection 5, this chapter, including, without limitation, any requirements relating to the adjustment of boundary lines or the filing of a parcel map or record of survey, does not apply to the division, exchange or transfer of land for agricultural purposes if each parcel resulting from such a division, exchange or transfer:
(a) Is 10 acres or more in size, unless local zoning laws require a larger minimum parcel size, in which case each parcel resulting from the division, exchange or transfer must comply with the parcel size required by those local zoning laws;
(b) Has a zoning classification that is consistent with the designation in the master plan, if any, regarding land use for the parcel;
(c) Can be described by reference to the standard subdivisions used in the United States Public Land Survey System;
(d) Qualifies for agricultural use assessment under NRS 361A.100 to 361A.160, inclusive, and any regulations adopted pursuant thereto; and
(e) Is accessible:
(1) By way of an existing street, road or highway;
(2) Through other adjacent lands owned by the same person; or
(3) By way of an easement for agricultural purposes that was granted in connection with the division, exchange or transfer.
κ2013 Statutes of Nevada, Page 3226 (CHAPTER 504, AB 239)κ
5. The exemption from the provisions of this chapter, which exemption is set forth in subsection 4, does not apply with respect to any parcel resulting from the division, exchange or transfer of agricultural lands if:
(a) Such resulting parcel ceases to qualify for agricultural use assessment under NRS 361A.100 to 361A.160, inclusive, and any regulations adopted pursuant thereto; or
(b) New commercial buildings or residential dwelling units are proposed to be constructed on the parcel after the date on which the division, exchange or transfer took place. The provisions of this paragraph do not prohibit the expansion, repair, reconstruction, renovation or replacement of preexisting buildings or dwelling units that are:
(1) Dilapidated;
(2) Dangerous;
(3) At risk of being declared a public nuisance;
(4) Damaged or destroyed by fire, flood, earthquake or any natural or man-made disaster; or
(5) Otherwise in need of expansion, repair, reconstruction, renovation or replacement.
Sec. 46. NRS 278.325 is hereby amended to read as follows:
278.325 1. If a subdivision is proposed on land which is zoned for industrial or commercial development, neither the tentative nor the final map need show any division of the land into lots or parcels, but the streets and any other required improvements are subject to the requirements of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
2. No parcel of land may be sold for residential use from a subdivision whose final map does not show a division of the land into lots.
3. Except as otherwise provided in subsection 4, a boundary or line must not be created by a conveyance of a parcel from an industrial or commercial subdivision unless a professional land surveyor has surveyed the boundary or line and set the monuments. The surveyor shall file a record of the survey pursuant to the requirements set forth in NRS 625.340. Any conveyance of such a parcel must contain a legal description of the parcel that is independent of the record of survey.
4. The provisions of subsection 3 do not apply to a boundary or line that is created entirely within an existing industrial or commercial building. A certificate prepared by a professional engineer or registered architect certifying compliance with the applicable law of this State in effect at the time of the preparation of the certificate and with the building code in effect at the time the building was constructed must be attached to any document which proposes to subdivide such a building.
5. A certificate prepared pursuant to subsection 4 for a building located in a county whose population is 700,000 or more must be reviewed, approved and signed by the building official having jurisdiction over the area within which the building is situated.
Sec. 47. NRS 278.326 is hereby amended to read as follows:
278.326 1. Local subdivision ordinances shall be enacted by the governing body of every incorporated city and every county, prescribing regulations which, in addition to the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act govern matters of improvements, mapping, accuracy, engineering and related subjects, but shall not be in conflict with NRS 278.010 to 278.630, inclusive [.]
κ2013 Statutes of Nevada, Page 3227 (CHAPTER 504, AB 239)κ
subjects, but shall not be in conflict with NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
2. The subdivider shall comply with the provisions of the appropriate local ordinance before the final map is approved.
Sec. 48. NRS 278.327 is hereby amended to read as follows:
278.327 Approval of any map pursuant to the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act does not in itself prohibit the further division of the lots, parcels, sites, units or plots described, but any such further division shall conform to the applicable provisions of those sections.
Sec. 49. NRS 278.590 is hereby amended to read as follows:
278.590 1. It is unlawful for any person to contract to sell, to sell or to transfer any subdivision or any part thereof, or land divided pursuant to a parcel map or map of division into large parcels, unless:
(a) The required map thereof, in full compliance with the appropriate provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, and any local ordinance, has been recorded in the office of the recorder of each county in which the subdivision or land divided is located; or
(b) The person is contractually obligated to record the required map before title is transferred or possession is delivered, whichever is earlier, as provided in paragraph (a).
2. A person who violates the provisions of subsection 1 is guilty of a misdemeanor and is liable for a civil penalty of not more than $300 for each lot or parcel sold or transferred.
3. This section does not bar any legal, equitable or summary remedy to which any aggrieved municipality or other political subdivision, or any person, may otherwise be entitled, and any such municipality or other political subdivision or person may file suit in the district court of the county in which any property attempted to be divided or sold in violation of any provision of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act is located to restrain or enjoin any attempted or proposed division or transfer in violation of those sections.
Sec. 50. NRS 278.630 is hereby amended to read as follows:
278.630 1. When there is no final map, parcel map or map of division into large parcels as required by the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, then the county assessor shall:
(a) Determine any apparent discrepancies with respect to the provisions of NRS 278.010 to 278.630, inclusive [;] , and sections 27.1 to 27.9, inclusive, of this act;
(b) Report his or her determinations to the governing body of the county or city in which such apparent violation occurs in writing, including, without limitation, by noting such determinations in the appropriate parcel record of the county assessor; and
(c) Not place on the tax roll or maps of the county assessor any land for which the county assessor has determined that a discrepancy exists with respect to the provisions of NRS 278.010 to 278.630, inclusive [.] , and sections 27.1 to 27.9, inclusive, of this act.
2. Upon receipt of the report, the governing body shall cause an investigation to be made by the district attorneys office when such lands are within an unincorporated area, or by the city attorney when such lands are within a city, the county recorder and any planning commission having jurisdiction over the lands in question.
κ2013 Statutes of Nevada, Page 3228 (CHAPTER 504, AB 239)κ
are within a city, the county recorder and any planning commission having jurisdiction over the lands in question.
3. If the report shows evidence of violation of the provisions of NRS 278.010 to 278.630, inclusive, and sections 27.1 to 27.9, inclusive, of this act, with respect to the division of lands or upon the filing of a verified complaint by any municipality or other political subdivision or person, firm or corporation with respect to violation of the provisions of those sections, the district attorney of each county in this State shall prosecute all such violations in respective counties in which the violations occur.
Sec. 50.5. Each planning commission, as defined in NRS 278.013, and governing body, as defined in NRS 278.015, shall adopt the aboveground utility plan required by section 27.5 of this act on or before December 31, 2014.
Sec. 51. The Public Utilities Commission of Nevada shall adopt the regulations required by sections 20 and 27.9 of this act on or before December 31, 2013.
Sec. 52. Notwithstanding any other provision of law to the contrary, any application for a partial abatement of the local sales and use taxes, the taxes imposed pursuant to chapter 361 of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS submitted by an applicant pursuant to NRS 701A.360 on or after the effective date of this section is subject to the provisions of NRS 701A.360, 701A.365, 701A.370, 701A.385 and 701A.390 as amended by sections 3 to 7, inclusive, of this act, and the Director of the Office of Energy shall not, before July 1, 2013, approve any such application submitted on or after the effective date of this section but before July 1, 2013.
Sec. 52.5. The provisions of sections 27.1 to 27.9, inclusive, of this act and the amendatory provisions of sections 28 to 50, inclusive, of this act do not apply to an application for the issuance of a special use permit for the construction of a utility project, as that term is defined in NRS 278.0195, or for the construction of a renewable energy generation project, as that term is defined in NRS 278.01735, with a nameplate capacity of 10 megawatts or more which is submitted by an applicant to a planning commission or the governing body of a local government before July 1, 2013.
Sec. 53. 1. This section and section 52 of this act become effective upon passage and approval.
2. Sections 1 to 51, inclusive, and 52.5 of this act become effective on July 1, 2013.
3. Sections 10 to 21, inclusive, of this act expire by limitation on June 30, 2018.
4. Sections 2.5 to 7, inclusive, of this act expire by limitation on June 30, 2049.
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κ2013 Statutes of Nevada, Page 3229κ
Assembly Bill No. 260Assemblymen Elliot Anderson and Bustamante Adams
Joint Sponsor: Senator Spearman
CHAPTER 505
[Approved: June 11, 2013]
AN ACT relating to the Nevada System of Higher Education; clarifying provisions governing tuition charges assessed against certain students; revising provisions relating to exemptions from tuition charges for veterans of the Armed Forces of the United States who were honorably discharged; and providing other matters properly relating thereto.
Legislative Counsels Digest:
Existing law authorizes the Board of Regents of the University of Nevada to assess tuition charges against students who are not residents of Nevada at all campuses of the Nevada System of Higher Education. The tuition charges are in addition to registration fees and other fees assessed against students who are residents of Nevada. Existing law also provides that tuition must be free for certain students and veterans. (NRS 396.540) This bill clarifies the statutory provisions governing the assessment of tuition charges. Additionally, this bill revises the group of veterans against whom tuition charges must not be assessed by: (1) removing the requirement that such veterans were, at some point, on active duty while stationed at a military installation in the State of Nevada or a military installation in another state which has a specific nexus to this State; and (2) requiring that such veterans were honorably discharged within the 2 years immediately preceding the date of matriculation of the veteran at a university, state college or community college within the System. However, this bill authorizes the Board of Regents to grant more favorable exemptions from tuition charges for veterans who were honorably discharged if required for the receipt of federal money.
EXPLANATION Matter in bolded italics is new; matter between
brackets [omitted material] is material to be
omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 396.540 is hereby amended to read as follows:
396.540 1. For the purposes of this section:
(a) Bona fide resident shall be construed in accordance with the provisions of NRS 10.155 and policies established by the Board of Regents, to the extent that those policies do not conflict with any statute. The qualification bona fide is intended to ensure that the residence is genuine and established for purposes other than the avoidance of tuition.
(b) Matriculation has the meaning ascribed to it in regulations adopted by the Board of Regents.
(c) Tuition charge means a charge assessed against students who are not residents of Nevada and which is in addition to registration fees or other fees assessed against students who are residents of Nevada.
2. The Board of Regents may fix a tuition charge for students at all campuses of the System, but tuition charges must not be [free to:] assessed against:
(a) All students whose families have been bona fide residents of the State of Nevada for at least 12 months before the matriculation of the student at a university, state college or community college within the System;
κ2013 Statutes of Nevada, Page 3230 (CHAPTER 505, AB 260)κ
(b) All students whose families reside outside of the State of Nevada, providing such students have themselves been bona fide residents of the State of Nevada for at least 12 months before their matriculation at a university, state college or community college within the System;
(c) All public school teachers who are employed full-time by school districts in the State of Nevada;
(d) All full-time teachers in private elementary, secondary and postsecondary educational institutions in the State of Nevada whose curricula meet the requirements of chapter 394 of NRS;
(e) Employees of the System who take classes other than during their regular working hours;
(f) Members of the Armed Forces of the United States who are on active duty and stationed at a military installation in the State of Nevada; and
(g) [Veterans] Except as otherwise provided in subsection 3, veterans of the Armed Forces of the United States who were honorably discharged [and who were on active duty while stationed at a military installation in the State of Nevada or a military installation in another state which has a specific nexus to this State, including, without limitation, the Marine Corps Mountain Warfare Training Center located at Pickel Meadow, California, on the date of discharge.] within the 2 years immediately preceding the date of matriculation of the veteran at a university, state college or community college within the System.
3. The Board of Regents may grant more favorable exemptions from tuition charges for veterans of the Armed Forces of the United States who were honorably discharged than the exemption provided pursuant to paragraph (g) of subsection 2, if required for the receipt of federal money.
4. The Board of Regents may grant [tuitions free] exemptions from tuition charges each semester to other worthwhile and deserving students from other states and foreign countries, in a number not to exceed a number equal to 3 percent of the total matriculated enrollment of students for the last preceding fall semester.
Sec. 1.5. NRS 396.543 is hereby amended to read as follows:
396.543 1. The Board of Regents may enter into an agreement with another state for the granting of full or partial waivers of the nonresident tuition to residents of the other state who are students at or are eligible for admission to any branch of the System if the agreement provides that, under substantially the same circumstances, the other state will grant reciprocal waivers to residents of Nevada who are students at or are eligible for admission to universities or colleges in the other state.
2. Each agreement must specify:
(a) The criteria for granting the waivers; and
(b) The specific universities, state colleges and community colleges for which the waivers will be granted.
3. The Board of Regents shall provide by regulation for the administration of any waivers for which an agreement is entered into pursuant to subsection 1.
4. The waivers granted pursuant to this section must not be included in the number of waivers determined for the purpose of applying the limitation in subsection [3] 4 of NRS 396.540.
Sec. 2. This act becomes effective on July 1, 2013.
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