Senate Bill No. 312

Senate Bill No. 312-Committee on Government Affairs

April 17, 1997

____________

Referred to Committee on Government Affairs

SUMMARY--Makes various changes to provisions governing redevelopment. (BDR 22-61)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to redevelopment; providing for the termination of redevelopment plans; requiring each proposal for a redevelopment project instead of the redevelopment plan to include an employment plan; prohibiting a redevelopment agency from issuing securities and incurring debt to finance a redevelopment plan beyond 20 years after the date on which the plan is adopted; prohibiting the use for redevelopment of certain portions of taxes approved by the voters of a taxing agency for the repayment of bonded indebtedness or attributable to a new or increased tax rate; removing the limitation on the total revenue paid to all redevelopment agencies and tax increment areas of a municipality; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 NRS 279.438 is hereby amended to read as follows:
279.438 [An agency created] A redevelopment plan adopted before July 1, 1987, [expires] and any amendments to the plan must terminate at the end of the fiscal year in which the principal and interest of the last maturing of the securities issued before that date are fully paid or at the time provided in NRS 279.439, whichever is later.
Sec. 2 NRS 279.439 is hereby amended to read as follows:
279.439 [An agency created] A redevelopment plan adopted on or after July 1, 1987, [expires] and any amendments to the plan must terminate not later than 30 years after the date on which the [resolution adopted pursuant to NRS 279.428 becomes effective.] original redevelopment plan is adopted.
Sec. 3 NRS 279.482 is hereby amended to read as follows:
279.482 1. An agency may obligate lessees or purchasers of property acquired in a redevelopment project to:
[1.] (a) Use the property for the purpose designated in the redevelopment plans.
[2.] (b) Begin the redevelopment of the area within a period of time which the agency fixes as reasonable.
[3.] (c) Comply with other conditions which the agency deems necessary to carry out the purposes of NRS 279.382 to 279.685, inclusive.
2. As appropriate for the particular project, each proposal for a redevelopment project must also include an employment plan. The employment plan must include:
(a) A description of the existing opportunities for employment within the area;
(b) A projection of the effect that the redevelopment project will have on opportunities for employment within the area; and
(c) A description of the manner in which an employer relocating his business into the area plans to employ persons living within the area of operation who are:
(1) Economically disadvantaged;
(2) Physically handicapped;
(3) Members of racial minorities;
(4) Veterans; or
(5) Women.
Sec. 4 NRS 279.572 is hereby amended to read as follows:
279.572 [1.] Every redevelopment plan must show:
[(a)] 1. The amount of open space to be provided and the layout of streets [.
(b)] ;
2. Limitations on type, size, height, number and proposed use of buildings [.
(c)] ;
3. The approximate number of dwelling units [.
(d)] ;
4. The property to be devoted to public purposes and the nature of those purposes [.
(e)] ;
5. Other covenants, conditions and restrictions which the legislative body prescribes [.
(f)] ; and
6. The proposed method of financing the redevelopment plan in sufficient detail so that the legislative body may determine the economic feasibility of the plan.
[2. As appropriate for the particular project, each proposal for a project must also include an employment plan. The employment plan must include:
(a) A description of the existing opportunities for employment within the area.
(b) A projection of the effect that the redevelopment project will have on opportunities for employment within the area.
(c) A description of the manner in which an employer relocating his business into the area plans to employ persons living within the area of operation who are:
(1) Economically disadvantaged.
(2) Physically handicapped.
(3) Members of racial minorities.
(4) Veterans.
(5) Women.]
Sec. 5 NRS 279.619 is hereby amended to read as follows:
279.619 1. Securities must not be issued and no indebtedness may be incurred in any other manner, by or on behalf of an agency [after] to finance, in whole or in part, a redevelopment plan beyond 20 years after the date on which the [resolution adopted pursuant to NRS 279.428 becomes effective.] redevelopment plan is adopted, except that an agency may enter into leases or incur indebtedness for refunding securities or for medium-term obligations at any time before the termination of the redevelopment plan if the leases are terminated and the indebtedness is fully repaid no later than the termination of the redevelopment plan. The maturity date of any securities which are refunded must not extend beyond the [last original maturity date.] date of termination of the redevelopment plan.
2. Any securities issued by or on behalf of an agency to finance, in whole or in part, redevelopment pursuant to NRS 279.620 to 279.626, inclusive, and 279.634 to 279.672, inclusive, must mature and be fully paid, including any interest thereon, before the [expiration of the agency.] termination of the redevelopment plan.
Sec. 6 NRS 279.676 is hereby amended to read as follows:
279.676 1. Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in the redevelopment [project] area each year by or for the benefit of the state, any city, county, district or other public corporation, after the effective date of the ordinance approving the redevelopment plan, must be divided as follows:
(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment [project] area as shown upon the assessment roll used in connection with the taxation of the property by the taxing agency, last equalized before the effective date of the ordinance, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for such taxing agencies on all other property are paid. To allocate taxes levied by or for any taxing agency or agencies which did not include the territory in a redevelopment [project] area on the effective date of the ordinance but to which the territory has been annexed or otherwise included after the effective date, the assessment roll of the county last equalized on the effective date of the ordinance must be used in determining the assessed valuation of the taxable property in the [project] redevelopment area on the effective date. If property which was shown on the assessment roll used to determine the amount of taxes allocated to the taxing agencies is transferred to the state and becomes exempt from taxation, the assessed valuation of the exempt property as shown on that assessment roll must be subtracted from the assessed valuation used to determine the amount of revenue allocated to the taxing agencies.
(b) [That] Except as otherwise provided in paragraphs (c) and (d), that portion of the levied taxes each year in excess of [that] the amount set forth in paragraph (a) must be allocated to and when collected must be paid into a special fund of the redevelopment agency to pay the costs of redevelopment and to pay the principal of and interest on loans, money advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the redevelopment agency to finance or refinance, in whole or in part, [the redevelopment project.] redevelopment. Unless the total assessed valuation of the taxable property in a redevelopment [project] area exceeds the total assessed value of the taxable property in the [project] redevelopment area as shown by the last equalized assessment roll referred to in paragraph (a), all of the taxes levied and collected upon the taxable property in the redevelopment [project] area must be paid into the funds of the respective taxing agencies. When [such] the redevelopment plan is terminated pursuant to the provisions of NRS 279.438 and 279.439 and all loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the redevelopment [project] area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
(c) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a tax rate levied by a taxing agency to produce revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness that was approved by the voters of the taxing agency on or after July 1, 1997, must be allocated to and when collected must be paid into the debt service fund of that taxing agency.
(d) That portion of the taxes in excess of the amount set forth in paragraph (a) that is attributable to a new or increased tax rate levied by a taxing agency and was approved by the voters of the taxing agency on or after July 1, 1997, must be allocated to and when collected must be paid into the appropriate fund of the taxing agency.
2. Except as otherwise provided in subsection 3, in any fiscal year, the total revenue paid to a redevelopment agency [in combination with the total revenue paid to any other redevelopment agencies and any tax increment areas of a municipality] must not exceed:
(a) In a municipality whose population is 100,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.
(b) In a municipality whose population is less than 100,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.
If the revenue paid to a redevelopment agency must be limited pursuant to paragraph (a) or (b) and the [municipality] redevelopment agency has more than one redevelopment [agency or tax increment area, or one of each, the municipality] area, the redevelopment agency shall determine the allocation to each [agency and] area. Any revenue which would be allocated to a redevelopment agency but for the provisions of this section must be paid into the funds of the respective taxing agencies.
3. The taxing agencies shall continue to pay to a redevelopment agency any amount which was being paid before July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advanced or any other indebtedness, whether funded, refunded, assumed or otherwise incurred.
4. For the purposes of this section, the assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan is the assessment roll in existence on March 15 immediately preceding the effective date of the ordinance.
Sec. 7 NRS 279.010, 279.020, 279.030, 279.040, 279.050, 279.060, 279.070, 279.080, 279.090, 279.100, 279.110, 279.120, 279.130, 279.140, 279.150, 279.160, 279.170, 279.180, 279.190, 279.200, 279.210, 279.220, 279.230, 279.240, 279.250, 279.260, 279.270, 279.280, 279.285, 279.290, 279.300, 279.310, 279.311, 279.312, 279.313, 279.314, 279.315, 279.316, 279.317, 279.318, 279.320, 279.330, 279.340, 279.350, 279.360, 279.370 and 279.380 are hereby repealed.
Sec. 8 This act becomes effective upon passage and approval.

LEADLINES OF REPEALED SECTIONS

279.010 Short title.
279.020 Definitions.
279.030 "Agency" and "urban renewal agency" defined.
279.040 "Area of operation" defined.
279.050 "Blighted area" defined.
279.060 "Board" and "commission" defined.
279.070 "Bonds" defined.
279.080 "Clerk" defined.
279.090 "Federal Government" defined.
279.100 "Housing authority" defined.
279.110 "Local governing body" defined.
279.120 "Mayor" defined.
279.130 "Municipality" defined.
279.140 "Obligee" defined.
279.150 "Person" defined.
279.160 "Public body" defined.
279.170 "Public officer" defined.
279.180 "Real property" defined.
279.190 "Slum area" defined.
279.200 "Urban renewal area" defined.
279.210 "Urban renewal plan" defined.
279.220 "Urban renewal project" defined.
279.230 Findings and declarations.
279.240 Encouragement of private enterprise.
279.250 Workable program.
279.260 Finding of necessity by local governing body.
279.270 Preparation and tentative approval of urban renewal projects and plans; submission to voters; determinations of governing body required for acquisition of open land; modification of plan; exceptions.
279.280 Powers of municipality.
279.285 Applicability of provisions governing payment of prevailing wage for public works projects.
279.290 Eminent domain.
279.300 Disposal or retention of property in urban renewal area: Procedures; conditions; temporary operation and maintenance of property.
279.310 Issuance of bonds.
279.311 Special proceeding to determine validity of renewal plan and bonds.
279.312 Petition for special proceeding in rem: Form; contents.
279.313 Judgment; jurisdiction; publication of court's order.
279.314 Delivery of order by mail to person affected.
279.315 Appearance of persons interested or affected; answer; motion to dismiss; similar proceedings may be enjoined or consolidated.
279.316 Applicability of Nevada Rules of Civil Procedure and Rules of Appellate Procedure; time limited for contest of agency's determinations.
279.317 Relief from judgment; new trial; appeal.
279.318 Effect of judgment.
279.320 Bonds as legal investments.
279.330 Property exempt from taxes and from levy and sale by virtue of an execution.
279.340 Powers of public body.
279.350 Title of purchaser.
279.360 Exercise of powers in carrying out urban renewal project.
279.370 Urban renewal agency.
279.380 Interested public officials, commissioners or employees.