Assembly Bill No. 241–Assemblyman Gustavson
(by request)

 

March 5, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to general improvement districts. (BDR 25‑815)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to general improvement districts; revising the definition of “publication”; authorizing a board of trustees of a district to increase the compensation of the trustees under certain circumstances; authorizing the board of trustees of a district to adopt and enforce regulations regarding the date on which a charge for services provided by the district becomes delinquent; making certain changes regarding the merger, consolidation or dissolution of certain districts; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 318.020 is hereby amended to read as follows:

1-2  318.020  As used in this chapter, unless the context otherwise

1-3  requires:

1-4  1.  “Acquisition,” “acquire” and “acquiring” each means

1-5  acquisition, extension, alteration, reconstruction, repair or other

1-6  improvement by purchase, construction, installation, reconstruction,

1-7  condemnation, lease, rent, gift, grant, bequest, devise, contract or

1-8  other acquisition, or any combination thereof.

1-9  2.  “Board of trustees” and “board” alone each means the board

1-10  of trustees of a district.

2-1  3.  “FM radio” means a system of radio broadcasting by means

2-2  of frequency modulation.

2-3  4.  “General improvement district” and “district” alone each

2-4  means any general improvement district organized or, in the case of

2-5  organizational provisions, proposed to be organized, pursuant to this

2-6  chapter.

2-7  5.  “Mail” means a single mailing first class or its equivalent,

2-8  postage prepaid, by deposit in the United States mails, at least 15

2-9  days before the designated time or event.

2-10      6.  “Project” and “improvement” each means any structure,

2-11  facility, undertaking or system which a district is authorized to

2-12  acquire, improve, equip, maintain or operate. A project may consist

2-13  of all kinds of personal and real property, including, but not limited

2-14  to, land, elements and fixtures thereon, property of any nature

2-15  appurtenant thereto or used in connection therewith, and every

2-16  estate, interest and right therein, legal or equitable, including terms

2-17  for years, or any combination thereof.

2-18      7.  “Publication” means publication [at least once a week for 3

2-19  consecutive weeks in at least] one time in a newspaper of general

2-20  circulation in the district[. It is not necessary that publication be

2-21  made on the same day of the week in each of the 3 calendar weeks,

2-22  but the first publication must be] at least 15 days before the

2-23  designated time or event.

2-24      8.  “Qualified elector” means a person who has registered to

2-25  vote in district elections.

2-26      9.  “Special assessment district” means any local public

2-27  improvement district organized within a general improvement

2-28  district by the board of trustees of such general improvement district

2-29  pursuant to this chapter.

2-30      10.  “Trustees” means the members of a board.

2-31      Sec. 2.  NRS 318.085 is hereby amended to read as follows:

2-32      318.085  Except as otherwise provided in NRS 318.0953 and

2-33  318.09533:

2-34      1.  After taking oaths and filing bonds, the board shall choose

2-35  one of its members as chairman of the board and president of the

2-36  district, and shall elect a secretary and a treasurer of the board and

2-37  of the district, who may or may not be members of the board. The

2-38  secretary and the treasurer may be one person.

2-39      2.  The board shall adopt a seal.

2-40      3.  The secretary shall keep, in a well-bound book, a record of

2-41  all of the board’s proceedings, minutes of all meetings, any

2-42  certificates, contracts, bonds given by employees and all corporate

2-43  acts. This book must be open to inspection of all owners of real

2-44  property in the district as well as to all other interested persons.

3-1  4.  The treasurer shall keep strict and accurate accounts of all

3-2  money received by and disbursed for and on behalf of the district in

3-3  permanent records. He shall file with the county clerk, at the

3-4  expense of the district, a corporate surety bond in an amount not

3-5  more than $50,000, the form and exact amount thereof to be

3-6  approved and determined, respectively, by the board of county

3-7  commissioners, conditioned for the faithful performance of the

3-8  duties of his office. Any other officer or trustee who actually

3-9  receives or disburses money of the district shall furnish a bond as

3-10  provided in this subsection. The board of county commissioners

3-11  may, upon good cause shown, increase or decrease the amount of

3-12  that bond.

3-13      5.  Each member of a board of trustees of a district organized or

3-14  reorganized pursuant to this chapter may receive as compensation

3-15  for his service not more than [$6,000] $12,000 per year, payable

3-16  monthly, if the budget is adequate and a majority of the members of

3-17  the board vote in favor of such compensation, but no member of the

3-18  board may receive any other compensation for his service to the

3-19  district as an employee or otherwise. [A] Each member of the board

3-20  [is not entitled to receive as compensation more than $1,800 per

3-21  year if the additional compensation is approved during the term of

3-22  the member.] must receive the same compensation. If a majority of

3-23  the members of the board vote in favor of an increase in the

3-24  compensation of the trustees, the increase may not take effect until

3-25  January 1 following the next biennial election of the district as set

3-26  forth in NRS 318.095.

3-27      Sec. 3.  NRS 318.197 is hereby amended to read as follows:

3-28      318.197  1.  The board may fix, and from time to time increase

3-29  or decrease, electric energy, cemetery, swimming pool, other

3-30  recreational facilities, television, FM radio, sewer, water, storm

3-31  drainage, flood control, snow removal, lighting, garbage or refuse

3-32  rates, tolls or charges other than special assessments, including, but

3-33  not limited to, service charges and standby service charges, for

3-34  services or facilities furnished by the district, charges for the

3-35  availability of service, annexation charges, and minimum charges,

3-36  and pledge the revenue for the payment of any indebtedness or

3-37  special obligations of the district.

3-38      2.  Upon compliance with subsection 9 and until paid, all rates,

3-39  tolls or charges constitute a perpetual lien on and against the

3-40  property served. A perpetual lien is prior and superior to all liens,

3-41  claims and titles other than liens of general taxes and special

3-42  assessments and is not subject to extinguishment by the sale of any

3-43  property on account of nonpayment of any liens, claims and titles

3-44  including the liens of general taxes and special assessments. A

3-45  perpetual lien must be foreclosed in the same manner as provided by

4-1  the laws of the State of Nevada for the foreclosure of mechanics’

4-2  liens. Before any lien is foreclosed, the board shall hold a hearing

4-3  thereon after providing notice thereof by publication and by

4-4  registered or certified first-class mail, postage prepaid, addressed to

4-5  the last known owner at his last known address according to the

4-6  records of the district and the real property assessment roll in the

4-7  county in which the property is located.

4-8  3.  The board shall prescribe and enforce regulations for

4-9  the connection with and the disconnection from properties of the

4-10  facilities of the district and the taking of its services.

4-11      4.  The board may provide for the collection of charges.

4-12  Provisions may be made for, but are not limited to:

4-13      (a) The granting of discounts for prompt payment of bills.

4-14      (b) The requiring of deposits or the prepayment of charges in an

4-15  amount not exceeding 1 year’s charges from persons receiving

4-16  service and using the facilities of the enterprise or from the owners

4-17  of property on which or in connection with which services and

4-18  facilities are to be used. In case of nonpayment of all or part of a

4-19  bill, the deposits or prepaid charges must be applied only insofar as

4-20  necessary to liquidate the cumulative amount of the charges plus

4-21  penalties and cost of collection.

4-22      (c) The requiring of a guaranty by the owner of property that the

4-23  bills for service to the property or the occupants thereof will be paid.

4-24      5.  The board may provide for a basic penalty for nonpayment

4-25  of the charges within the time and in the manner prescribed by it.

4-26  The basic penalty must not be more than 10 percent of each month’s

4-27  charges for the first month delinquent. In addition to the basic

4-28  penalty, the board may provide for a penalty of not exceeding 1.5

4-29  percent per month for nonpayment of the charges and basic penalty.

4-30  [On the first day of the calendar month following the date of

4-31  payment specified in the bill the] The board may prescribe and

4-32  enforce regulations that set forth the date on which a charge

4-33  becomes delinquent . [if the bill or that portion thereof which is not

4-34  in bona fide dispute remains unpaid.] The board may provide for

4-35  collection of the penalties provided for in this section.

4-36      6.  The board may provide that charges for any service must be

4-37  collected together with and not separately from the charges for any

4-38  other service rendered by it, and that all charges must be billed upon

4-39  the same bill and collected as one item.

4-40      7.  The board may enter into a written contract with any person,

4-41  firm or public or private corporation providing for the billing and

4-42  collection by the person, firm or corporation of the charges for the

4-43  service furnished by any enterprise. If all or any part of any bill

4-44  rendered by the person, firm or corporation pursuant to a contract is

4-45  not paid and if the person, firm or corporation renders any public

5-1  utility service to the person billed, the person, firm or corporation

5-2  may discontinue its utility service until the bill is paid, and the

5-3  contract between the board and the person, firm or corporation may

5-4  so provide.

5-5  8.  As a remedy established for the collection of due and unpaid

5-6  deposits and charges and the penalties thereon an action may be

5-7  brought in the name of the district in any court of competent

5-8  jurisdiction against the person or persons who occupied the property

5-9  when the service was rendered or the deposit became due or against

5-10  any person guaranteeing payment of bills, or against any or all such

5-11  persons, for the collection of the amount of the deposit or the

5-12  collection of delinquent charges and all penalties thereon.

5-13      9.  A lien against the property served is not effective until a

5-14  notice of the lien, separately prepared for each lot affected, is:

5-15      (a) Mailed to the last known owner at his last known address

5-16  according to the records of the district and the real property

5-17  assessment roll of the county in which the property is located;

5-18      (b) Delivered by the board to the office of the county recorder of

5-19  the county within which the property subject to such lien is located;

5-20      (c) Recorded by the county recorder in a book kept by him for

5-21  the purpose of recording instruments encumbering land; and

5-22      (d) Indexed in the real estate index as deeds and other

5-23  conveyances are required by law to be indexed.

5-24      Sec. 4.  NRS 318.490 is hereby amended to read as follows:

5-25      318.490  1.  Except as otherwise provided in NRS 318.492,

5-26  whenever a majority of the members of the board of county

5-27  commissioners of any county deem it to be in the best interests of

5-28  the county and of the district that the district be merged,

5-29  consolidated or dissolved, it shall so determine by ordinance, after

5-30  there is first found, determined and recited in the ordinance that:

5-31      (a) All outstanding indebtedness and bonds of all kinds of the

5-32  district have been paid or will be assumed by the resulting merged

5-33  or consolidated unit of government.

5-34      (b) The services of the district are no longer needed or can be

5-35  more effectively performed by an existing unit of government.

5-36      2.  [The] If a board of county commissioners determines to

5-37  merge, consolidate or dissolve a district that was, on October 1,

5-38  2003, exercising powers pursuant to NRS 318.140 and 318.144, in

5-39  addition to meeting the requirements set forth in subsection 1,

5-40  within 90 days after the ordinance is adopted by the board of

5-41  county commissioners the ordinance must be adopted by a

5-42  majority of the board of trustees of the district that is being

5-43  merged, consolidated or dissolved. A district described in this

5-44  subsection may not be merged, consolidated or dissolved if the

5-45  ordinance is not adopted by the board of the district.

6-1  3.  After an ordinance has been adopted pursuant to

6-2  subsection 1 and, if applicable, subsection 2, the county clerk shall

6-3  thereupon certify a copy of the ordinance to the board of the district

6-4  and shall mail written notice to all property owners within the

6-5  district in his county, containing the following:

6-6  (a) The adoption of the ordinance[;] by the board of county

6-7  commissioners and, if applicable, by the board of the district;

6-8  (b) The determination of the board of county commissioners that

6-9  the district should be dissolved, merged or consolidated; and

6-10      (c) The time and place for hearing on the dissolution, merger or

6-11  consolidation.

6-12      Sec. 5.  NRS 318.492 is hereby amended to read as follows:

6-13      318.492  1.  If all the territory within a district organized

6-14  pursuant to this chapter is included within the boundaries of a city

6-15  incorporated under the provisions of chapter 266 of NRS, the board

6-16  of county commissioners of the county shall, within 90 days after

6-17  the filing of the notice required by NRS 266.033, adopt an ordinance

6-18  providing for the merger of the district with the city and fixing a

6-19  time and place for a hearing on the merger.

6-20      2.  The county clerk shall certify a copy of the ordinance and

6-21  give notice of its adoption in the manner provided by subsection [2]

6-22  3 of NRS 318.490.

6-23      3.  The board of county commissioners shall thereafter proceed

6-24  to hear and determine the matter as provided in NRS 318.495 and

6-25  318.500.

 

6-26  H