Senate Bill No. 225–Committee on Government Affairs

 

March 3, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Authorizes general improvement district to file petition in bankruptcy pursuant to the
Federal Bankruptcy Act and clarifies status of general improvement district as municipality. (BDR 25‑1091)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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

 

AN ACT relating to general improvement districts; authorizing a general improvement district to file a petition in bankruptcy and be a debtor pursuant to the Federal Bankruptcy Act; clarifying that a general improvement district is 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:

 

1-1  Section 1. Chapter 318 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  A general improvement district, in its capacity as a

1-4  municipality, may file a petition and be a debtor pursuant to the

1-5  Federal Bankruptcy Act, 11 U.S.C. §§ 101 et seq., as amended,

1-6  including, but not limited to, chapter 9 of that title.

1-7  Sec. 2.  NRS 318.015 is hereby amended to read as follows:

1-8  318.015  1.  It is hereby declared as a matter of legislative

1-9  determination that [the] :

1-10      (a) The organization of districts having the purposes, powers,

1-11  rights, privileges and immunities provided in this chapter will serve

1-12  a public use and will promote the health, safety, prosperity, security

2-1  and general welfare of the inhabitants thereof and of the State of

2-2  Nevada; [that the]

2-3  (b) The acquisition, improvement, maintenance and operation of

2-4  any project authorized in this chapter is in the public interest and

2-5  constitutes a part of the established and permanent policy of the

2-6  State of Nevada; and [that each]

2-7  (c) Each district organized pursuant to the provisions of this

2-8  chapter [shall be] is a governmental subdivision of the State of

2-9  Nevada, a body corporate and politic and a municipality having the

2-10  form of a quasi-municipal corporation.

2-11  For the accomplishment of these purposes the provisions of this

2-12  chapter shall be broadly construed.

2-13      2.  It is hereby further declared that the provisions of this

2-14  chapter are not intended to provide a method for financing the costs

2-15  of developing private property.

2-16      3.  It is hereby further declared as a matter of legislative

2-17  determination that the notice provided for in this chapter for each

2-18  hearing and action to be taken is reasonably calculated to inform the

2-19  parties of all proceedings which may directly and adversely affect

2-20  their legally protected interest.

2-21      Sec. 3.  NRS 318.075 is hereby amended to read as follows:

2-22      318.075  1.  Except as otherwise provided in subsection 2, the

2-23  adoption of the ordinance creating the district [shall] finally and

2-24  conclusively [establish] establishes the regular organization of the

2-25  district against all persons, which district [shall thenceforth be] is a

2-26  governmental subdivision of the State of Nevada, a body corporate

2-27  and politic and a municipality having the form of a quasi-municipal

2-28  corporation.

2-29      2.  Within 30 days immediately following the effective date of

2-30  such ordinance any person who has filed a written protest, as

2-31  provided in NRS 318.065, [shall have] has the right to commence

2-32  an action in any court of competent jurisdiction to set aside such

2-33  determination. Thereafter all actions or suits attacking the regularity,

2-34  validity and correctness of that ordinance and all proceedings,

2-35  determinations and instruments taken, adopted or made [prior to

2-36  such] before the ordinance’s final passage[, shall be] are

2-37  perpetually barred.

2-38      3.  Within 30 days after the effective date of the ordinance

2-39  creating the district, the county clerk shall file a copy of the

2-40  ordinance in his office and shall cause to be filed an additional copy

2-41  of the ordinance in the Office of the Secretary of State, which filings

2-42  [shall be] are without fee and [be] are otherwise in the same manner

2-43  as articles of incorporation are required to be filed under chapter 78

2-44  of NRS.

3-1  Sec. 4.  A general improvement district that was organized

3-2  before the effective date of this act shall be deemed to have been a

3-3  municipality from the date of its organization.

3-4  Sec. 5.  This act becomes effective upon passage and approval.

 

3-5  H