Senate Bill No. 414-Committee on Natural Resources
(On Behalf of Washoe County)
May 22, 1997
____________
Referred to Committee on Natural Resources
SUMMARY--Revises provisions for water planning and remediation in certain counties. (BDR 48-683)
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 water; revising the provisions for planning and remediation in certain counties; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 540A of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.
Sec. 2 1. Before determining the boundaries of a district for remediation, the board shall hold a hearing. It shall cause notice of the hearing to be published at least once not less than 15 days before the hearing in a display advertisement at least 3 by 5 inches in size in a newspaper of general circulation in the county. The notice must contain a description of the boundaries of the district by assessor's parcel number, or by metes and bounds or other legal description, or state that a description of the boundaries of the district is on file at the office of the county clerk for public examination.
2. After the hearing, the board shall make such adjustments to the proposed boundaries of the district as appear to the board to be necessary, but the boundaries may not be expanded to include any property not included in the proposed boundaries of the district described in the notice of hearing or filed with the county clerk unless another hearing is held, after notice given by publication in the manner provided in subsection 1. After the hearing and any adjustment to the boundaries of the district required by this section, the board shall designate the boundaries of the district by ordinance, which may not be adopted as if an emergency existed.
3. The board may from time to time amend the boundaries of the district. Any such amendment must be made by ordinance adopted after a hearing held in the manner provided in subsection 1. Notice of that hearing must be given by publication in the manner provided in subsection 1. The board may not amend the boundaries of the district to exclude any property if bonds have been issued or other financial obligations incurred for the district until those bonds or other financial obligations have been paid in full.
4. The territory of the district established pursuant to subsection 2 and, if applicable, expanded pursuant to subsection 3 need not be contiguous.
Sec. 3 1. The board, by ordinance, which may not be adopted as if an emergency existed, may determine and from time to time redetermine the amount of an annual fee, to recover the costs of developing and carrying out the plan for remediation, to be imposed on the properties in the district for remediation. In making the determination, the board may apportion the fee on the basis of improved square footage, zoning, current or previous land use, area or any other factor determined relevant and equitable by the board. If the condition requiring remediation affects the quality or quantity of drinking water within the region, the fee must:
(a) Be based upon a percentage of the total amount billed in the preceding calendar year to each parcel or property within the district for water by the provider of retail water service to the parcel or property;
(b) Be weighted and adjusted between parcels or properties within the district, if applicable, to reflect varying levels of effect of the contamination, varying levels of value resulting from remediation or other factors deemed relevant by the board;
(c) For any parcel or property for which the fee is weighted or adjusted, not be less than one-half or more than twice the percentage established pursuant to paragraph (a); and
(d) For parcels or properties within the district where retail water service is not provided or for which a full calendar year's billing is unavailable, be based upon an estimated billing taking into account a partial year's billing extended to 12 months or an average of fees for parcels or properties with comparable zoning or uses.
2. A fee imposed pursuant to subsection 1 must be collected by the county treasurer with the general taxes of the county, and the payment therefor must be enforced in the same manner and with same remedies as are provided for the collection of general taxes.
3. If so requested by the county, all persons who sell water at wholesale or retail within the district shall furnish to the county, within 3 months after a request or at a later time specified by the board, a list identifying by assessor's parcel number each property for use on which water was sold and the amount billed with respect to each parcel for water during the year designated by the board. No charge may be made to the county for furnishing the list.
4. In lieu of the fee authorized by subsection 1, the board may constitute the district for remediation as a special taxing district and impose a general ad valorem tax on all taxable property in the district at a rate sufficient to pay the costs of developing and carrying out the plan for remediation. The board is the governing body of any special taxing district established pursuant to this subsection. The budget of any such special taxing district must be included as part of the budget of the county and its meetings must be held as part of the meetings of the board. Any tax imposed pursuant to this subsection is exempt from the limitations on taxes ad valorem stated in chapter 354 of NRS. No portion of any tax imposed pursuant to this subsection may be allocated to any redevelopment area or tax increment area whose boundaries overlap in whole or in part the district for remediation.
Sec. 4 1. The board may issue bonds and otherwise borrow money in anticipation of the fees or taxes, or any combination thereof, collected pursuant to section 3 of this act to pay the costs of developing and carrying out the plan for remediation, including any of the costs mentioned in subsection 3 of NRS 540A.260.
2. The board may issue those bonds as, or may borrow money evidenced by, special obligations of the county secured solely by those fees or taxes, or any combination thereof, or general obligations of the county, whose payment is additionally secured by those fees or taxes, or any combination thereof.
3. The taxes or fees that are pledged as additional security for those general obligations are pledged revenues for the purposes of subsection 3 of NRS 350.020.
Sec. 5 1. Chapters 332 and 338 of NRS do not apply to a contract made by a person to accomplish the purposes of NRS 540A.250 to 540A.280, inclusive, and sections 2 to 6, inclusive, of this act or to a contract made by the county to carry out the plan for remediation with any provider of water service to the district for remediation.
2. The county need not own the property on which any remediation equipment or improvements are located or used, or acquire ownership of any remediation equipment or improvements whose cost is paid from money of the county, including proceeds of bonds issued pursuant to section 4 of this act, if the board determines there are adequate contractual safeguards to ensure that the equipment or improvements are used to further the plan for remediation.
Sec. 6 1. A determination by the board pursuant to NRS 540A.250 to 540A.280, inclusive, and sections 2 to 6, inclusive, of this act, including a determination of the boundaries of a district for remediation or any expansion thereof, determination of the costs of developing or carrying out a plan for remediation, determination of the apportionment of the fee to recover those costs pursuant to section 3 of this act, determination of the amount of any fee or tax pursuant to section 3 of this act, determination as to guidelines for the provision of any reimbursement of the cost of remediation pursuant to NRS 540A.270, determination of the amount of any reimbursements and any determinations made in connection with the issuance of bonds pursuant to section 4 of this act, is conclusive and incontestable in the absence of fraud or gross abuse of discretion.
2. A property owner or other person who is aggrieved by a determination of the board pursuant to NRS 540A.250 to 540A.280, inclusive, and sections 2 to 6, inclusive, of this act may seek review of the determination in the district court in and for the county within 15 days after the board makes the determination. Such a review may not be sought after the expiration of that period. If, in such an appeal, the court finds that the determination was a result of fraud or gross abuse of discretion, it shall remand the matter to the board for a new determination. If the court does not find the determination was a result of fraud or gross abuse of discretion, it shall uphold the action of the board.
Sec. 7 NRS 540A.070 is hereby amended to read as follows:
540A.0701. To fund the planning and administration required by this chapter [,] and the implementation of the plan developed pursuant to NRS 540A.130, the board may impose a fee at a rate of not to exceed 1.5 percent of the amount otherwise billed, to be collected by each supplier of water from its customers within the region. The fee must be imposed by ordinance [adopted in a manner other than is provided for in a case of emergency.] which may not be adopted as if an emergency existed.
2. A supplier or provider shall state separately on its billings to customers the amount charged because of any fee imposed pursuant to subsection 1.
Sec. 8 NRS 540A.150 is hereby amended to read as follows:
540A.1501. The plan must be consistent with and carry out the provisions of the comprehensive regional plan adopted by the governing board for regional planning pursuant to NRS 278.0276 and the comprehensive plans, area plans and master plans for the use of land which are adopted by local governmental entities within the region.
2. The plan must be consistent with and carry out or support the carrying out of all aspects of Public Law 101-618, 104 Stat. 3324.
3. The plan or an amendment must be consistent with the state water plan in effect at the time that the plan is adopted.
Sec. 9 NRS 540A.250 is hereby amended to read as follows:
540A.2501. The board [of county commissioners] shall create a district for remediation of the quality of water if the county or district health officer or the administrator of the division [of environmental protection of the state department of conservation and natural resources] certifies in writing to the board that a condition exists in an area of the region which is affecting or will affect the quality of water that is available for municipal, industrial or domestic use within the region.
2. Upon receipt of the certificate, the board shall proceed, in cooperation with the health officer and the division, to verify the existence and extent of the condition and establish the appropriate boundaries of the district. Money expended by the board for this purpose may be recovered, after the district is established, [pursuant to a plan of assessment for the district.] from the proceeds of bonds issued pursuant to section 4 of this act or from a fee or tax imposed pursuant to section 3 of this act.
3. The district created pursuant to this section must include : [, without limitation:]
(a) The [entire] area where the condition which requires remediation is determined by the board to be present [;
(b) The entire area] or for which remediation is determined by the board to be necessary [; and
(c) Any other area which will benefit directly or indirectly from the protection of the quality or quantity of water which is available for municipal, industrial or domestic use.] , including any area to which the condition is expected to migrate unless remediation is carried out; and
(b) If the board determines that the condition which requires remediation affects the quantity or quality of drinking water within the region, the wholesale and retail service area of any provider of water that has used or uses for any portion of its supply wells located in the area described in paragraph (a).
Sec. 10 NRS 540A.260 is hereby amended to read as follows:
540A.2601. Before creating a district for remediation pursuant to NRS 540A.250, the board [of county commissioners] shall prepare a plan for remediation which must be approved by the division . [of environmental protection of the state department of conservation and natural resources.]
2. The plan for remediation may include [, without limitation,] any action which is reasonable and economically feasible in the event of the release or threat of release of any hazardous substance into the environment which may affect the water quality in this state. Such action may include : [, without limitation:]
(a) Monitoring, assessing and evaluating the water which may be affected by the substance;
(b) Removing or disposing of the substance or remedying the condition of the water in any other manner; and
(c) Taking such actions as are necessary to prevent, minimize or mitigate damage to the affected water.
3. After the plan for remediation is approved by the division, the board shall determine [:
(a) The basis upon which assessments may equitably and proportionally be imposed upon property within the district; and
(b) The amount of the assessment to be imposed upon each parcel of land within the district, identified by the parcel number assigned for the purpose of taxation ad valorem.
4. Any assessment imposed pursuant to this section must be imposed equitably and proportionately on the basis of the quantity of water delivered to or diverted on the property for municipal, industrial or domestic use during the calendar year immediately preceding the assessment, as determined from information available to the board, or on the special benefit accruing to the property from remedying the condition, or a combination thereof, but in no event may any assessment exceed the reasonable market value of the property as determined by the board. If water was delivered to or diverted on the property for less than a full calendar year preceding the assessment or not at all, the board shall consider any benefit to the property from the protection of the quality or quantity of water available for municipal, industrial or domestic uses in making the assessment, as well as the special benefit accruing to the property from remedying the condition.
5.] , and may from time to time redetermine, the costs of developing and carrying out the plan for remediation. The costs may include all or part of:
(a) The cost of acquisition, construction, equipment or other improvement of real and personal property in developing and carrying out the plan for remediation;
(b) The cost of engineering and design in connection with developing and carrying out the plan for remediation;
(c) The cost of operation, maintenance, monitoring, administration, collection and other continuing charges in connection with developing and carrying out the plan for remediation;
(d) Any reimbursements as provided in subsection 2 of NRS 540A.250 or NRS 540A.270;
(e) Principal, interest and other charges due in connection with bonds or other borrowing incurred to pay the costs of developing and carrying out the plan for remediation;
(f) The cost of operation, maintenance, administration and other continuing charges in connection with carrying out the responsibilities of the district for remediation, including the cost to notify the general public of the plan for remediation and the activities of the district; and
(g) All other costs and expenses that the board determines are reasonably related to the development and carrying out of the plan for remediation or the financing thereof, or to the activities or responsibilities of the district for remediation.
4. An owner or lessee of property within the district who did not cause or contribute to the condition which the district was created to remedy is not subject to criminal or civil liability, including, without limitation, any liability for the cost of remediation or any related damage or injury caused by the condition, except to the extent of any unpaid assessments levied against the property.
[6. In preparing the plan, establishing the district, implementing the plan, establishing an assessment roll, hearing complaints, objections or protests to assessments, levying assessments, apportioning assessments based upon a division of a tract, refunding a surplus, paying deficiencies in assessments, pledging revenues, determining assessments, placing omitted property on the assessment roll, issuing bonds and collecting and enforcing delinquent assessments the board shall, to the extent practicable, comply with the provisions of chapter 271 of NRS and the owners of property must be granted the rights and remedies provided for owners of property in chapter 271 of NRS, except that the provisions of NRS 271.306 do not apply to this chapter.
7. Notwithstanding any other provision of law, no]
5. No person, governmental agency or charitable organization, whether or not otherwise exempt from assessment or taxation, except the Federal Government, is exempt from an assessment levied pursuant to this section.
Sec. 11 NRS 540A.270 is hereby amended to read as follows:
540A.2701. The board [of county commissioners] may reimburse a person, governmental agency or public utility for any expenses incurred in identifying, studying and remedying, or attempting in good faith to remedy, the condition before the district is created [.] , or thereafter for costs and expenses that are in conformity with and further the plan for remediation or operation of the district. No reimbursement may be allowed for any expense that any person incurs in connection with disturbing the ground for the construction or improvement of property in the district unless the board determines that the cost or expense is in furtherance of the plan for remediation and is a cost or expense which would have been cost-effective and beneficial to incur to further the plan for remediation.
2. The board may establish criteria for the reimbursement of a person, governmental agency or public utility for expenses pursuant to subsection 1. The criteria must include adequate safeguards so that costs reimbursed include only the actual costs of the activities undertaken as provided in this section. No reimbursement may be provided for any cost incurred after the creation of the district unless before the cost is incurred by the person or entity seeking reimbursement, the amount is approved by the board and the board determines that the cost is in furtherance of the plan for remediation. The board may establish criteria with respect to the amount of reimbursement for particular activities and with respect to the process to be followed in establishing reasonable costs for reimbursement, including, at the board's discretion, any requirement for bidding on any construction or any acquisition of equipment.
3. The reimursement may be made only if money is available from the proceeds of bonds issued or from fees or taxes imposed pursuant to NRS 540A.250 to 540A.280, inclusive, and sections 2 to 6, inclusive, of this act which are not otherwise required to be expended for other purposes. Those sections do not constitute a requirement that the county make any reimbursements.
Sec. 12 NRS 540A.280 is hereby amended to read as follows:
540A.280[Any recovery from a person who has caused or contributed to the condition requiring remediation must be used to offset the cost of remediation and must be credited to the assessments.]
1. If, during an investigation to establish the boundary of a district for remediation, development of a plan for remediation or the carrying out of the plan, the board acquires evidence that a person has caused or contributed to the condition requiring remediation, the board shall provide this evidence to the division for appropriate action. In addition to any other action authorized by statute, the department may by legal action recover from the person responsible the costs of remediation incurred by the county or district. Any monetary recovery from the person responsible, excluding any money recovered as a penalty, must be distributed and applied in the following order of priority:
(a) To the department to pay the costs of recovery and to offset the costs of remediation incurred by the department; and
(b) To the board to offset the costs of remediation incurred by the county or district.
2. Any recovery distributed to the board must be used to reduce the fee or tax or to defray any increase in the fee or tax that would otherwise be charged against the parcels or properties within the district, as determined by the board.
3. As used in this section, "department" means the state department of conservation and natural resources.
Sec. 13. NRS 279.676 is hereby amended to read as follows:
279.6761. Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in the redevelopment project 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 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 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 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 section 3 of this act, that portion of the levied taxes each year in excess of that amount must be allocated to and when collected must be paid into a special fund of the redevelopment agency 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. Unless the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in the project 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 must be paid into the funds of the respective taxing agencies. When such 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 must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
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 has more than one redevelopment agency or tax increment area, or one of each, the municipality shall determine the allocation to each agency and area. Any revenue 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. 14. NRS 354.59811 is hereby amended to read as follows:
354.59811Except as otherwise provided in NRS 350.087, 354.59813, 354.59815, 354.5982, 354.5987, 354.59871, 354.705, 450.425 and 543.600, and section 3 of this act, for each fiscal year beginning on or after July 1, 1989, the maximum amount of money that a local government, except a school district, a district to provide a telephone number for emergencies, or a redevelopment agency, may receive from taxes ad valorem, other than those attributable to the net proceeds of minerals or those levied for the payment of bonded indebtedness and interest thereon incurred as a general or medium-term obligation 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:
1. The rate must be set so that when applied to the current fiscal year's assessed valuation of all property which was on the preceding fiscal year's assessment roll, together with the assessed valuation of property on the central assessment roll which was allocated to the local government, but excluding any assessed valuation attributable to the net proceeds of minerals, assessed valuation attributable to a redevelopment area or tax increment 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.
2. This rate must then be applied to the total assessed valuation, excluding the assessed valuation attributable to the net proceeds of minerals and the assessed valuation of a fire protection district attributable to real property which is transferred from private ownership to public ownership for the purpose of conservation but including new real property, possessory interests and mobile homes, for the current fiscal year to determine the allowed revenue from taxes ad valorem for the local government.
Sec. 15. NRS 361B.260 is hereby amended to read as follows:
361B.2601. After the effective date of the ordinance, including any supplemental ordinance adopted pursuant to NRS 361B.250, unconditionally ordering the undertaking and providing for financing by tax increment, any taxes levied upon taxable property in the tax increment area each year by or for the benefit of the state, the municipality and any public body must be divided as follows:
(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of those taxing agencies upon the total sum of the assessed value of the taxable property in the tax increment area as shown upon the 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 the taxing agencies as taxes on all other property are paid.
(b) Except as otherwise provided in subsection 2 [,] and section 3 of this act, the portion of the levied taxes each year in excess of that amount must be allocated to and when collected must be paid into the tax increment account pertaining to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the municipality to finance or refinance, in whole or in part, the undertaking. Unless the total assessed valuation of the taxable property in the tax increment area exceeds the total assessed value of the taxable property in the area as shown by the last equalized assessment roll referred to in subsection 1, all of the taxes levied and collected upon the taxable property in the area must be paid into the funds of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.
2. Except as otherwise provided in subsection 3, in any fiscal year, the total revenue paid to a tax increment area in combination with the total revenue paid to any other tax increment areas and any redevelopment agencies of a municipality must not exceed:
(a) In a municipality whose population is 100,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.
(b) In a municipality whose population is less than 100,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.
If the revenue paid to a tax increment area must be limited pursuant to paragraph (a) or (b) and the municipality has more than one redevelopment agency or tax increment area, or one of each, the municipality shall determine the allocation to each agency and area. Any revenue which would be allocated to a tax increment area but for the provisions of this section must be paid into the funds of the respective taxing agencies.
3. The taxing agencies shall continue to pay to a tax increment area any amount which was being paid before July 1, 1987, and in anticipation of which the area 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 last equalized assessment roll referred to in subsection 1 is the assessment roll in existence on the 15th day of March immediately preceding the effective date of the ordinance.
Sec. 16. Section 44 of chapter 688, Statutes of Nevada 1995, at page 2665, is hereby amended to read as follows:
Sec. 44. 1. This section and sections 1 to 33, inclusive, 34, 34.5 and 35 to 43, inclusive, of this act become effective on July 1, 1995.
2. Sections 33.5 and 34.7 become effective on July 30, 1997.
[3. Sections 2 to 27, inclusive, and 39 expire by limitation on July 30, 1997.]
Sec. 17. This act becomes effective on July 1, 1997.