EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 450 of NRS is hereby amended by adding thereto a

1-17 hospital district within a reasonable period after the dissolution of the

2-1 district, before dissolving the district pursuant to subsection 1 the board

2-2 of county commissioners may levy a property tax on all of the taxable

2-3 property in the district that is sufficient, when combined with any

2-4 revenue from taxes currently being levied in the district, to repay the

2-5 outstanding obligations of the hospital district within a reasonable period

2-6 after the dissolution of the district. The allowed revenue from taxes ad

2-7 valorem determined pursuant to NRS 354.59811 does not apply to any

2-8 additional property tax levied pursuant to this subsection. If the hospital

2-9 district is being managed by the department of taxation pursuant to NRS

2-10 354.685 to 354.725, inclusive, at the time of dissolution, the rate levied

2-11 pursuant to this subsection must not be included in the total ad valorem

2-12 tax levy for the purposes of the application of the limitation in NRS

2-13 361.453 but the rate levied when combined with all other overlapping

2-14 rates levied in the state must not exceed $4.50 on each $100 of assessed

2-15 valuation. The board of county commissioners shall discontinue any rate

2-16 levied pursuant to this subsection on a date that will ensure that no taxes

2-17 are collected for this purpose after the outstanding obligations of the

2-18 hospital district have been paid in full.

2-19 3. If, at the time of the dissolution of the hospital district, there are

2-20 any outstanding loans, bonded indebtedness or other obligations of the

2-21 hospital district, including, without limitation, unpaid obligations to

2-22 organizations such as the public employees’ retirement system, unpaid

2-23 salaries or unpaid loans made to the hospital district by the county, the

2-24 taxes being levied in the district at the time of dissolution must continue

2-25 to be levied and collected in the same manner as if the hospital district

2-26 had not been dissolved until all outstanding obligations of the district

2-27 have been paid in full, but for all other purposes the hospital district shall

2-28 be deemed dissolved from the time the resolution is filed pursuant to

2-29 subsection 1.

2-30 4. If the hospital district is being managed by the department of

2-31 taxation pursuant to NRS 354.685 to 354.725, inclusive, at the time of

2-32 dissolution, the management ceases upon dissolution but the board of

2-33 county commissioners shall continue to make such financial reports to

2-34 the department of taxation as the department deems necessary until all

2-35 outstanding obligations of the hospital district have been paid in full.

2-36 5. The property of the dissolved hospital district may be retained by

2-37 the board of county commissioners for use as a hospital or disposed of in

2-38 any manner the board deems appropriate. Any proceeds of the sale or

2-39 other transfer of the property of the dissolved hospital district and any

2-40 proceeds from taxes which had been levied and received by the hospital

2-41 district before dissolution, whether levied for operating purposes or for

2-42 the repayment of debt, must be used by the board of county

2-43 commissioners to repay any indebtedness of the hospital district.

3-1 Sec. 2. NRS 354.59811 is hereby amended to read as follows:

3-2 354.59811 Except as otherwise provided in NRS 350.087, 354.59813,

3-33 allowed revenue from taxes ad valorem for the local government.

3-34 Sec. 3. NRS 354.695 is hereby amended to read as follows:

3-35 354.695 1. As soon as practicable after taking over the management

3-42 government;

4-1 (c) Provide for the appointment of any other persons necessary to enable

4-2 the local government to provide the basic services for which it was created

4-3 in the most economical and efficient manner possible;

4-4 (d) Establish an accounting system and separate bank accounts, if

4-5 necessary, to receive and expend all money and assets of the local

4-6 government;

4-7 (e) Impose such hiring restrictions as deemed necessary after

4-8 considering the recommendations of the financial manager;

4-9 (f) Negotiate and approve all contracts entered into by or on behalf of

4-10 the local government before execution and enter into such contracts on

4-11 behalf of the local government as the department deems necessary;

4-12 (g) Negotiate and approve all collective bargaining contracts to be

4-13 entered into by the local government, except issues submitted to a

4-14 factfinder whose findings and recommendations are final and binding

4-15 pursuant to the provisions of the Local Government Employee-

4-16 Management Relations Act;

4-17 (h) Approve all expenditures of money from any fund or account and all

4-18 transfers of money from one fund to another;

4-19 (i) Employ such technicians as are necessary for the improvement of the

4-20 financial condition of the local government;

4-21 (j) Meet with the creditors of the local government and formulate a debt

4-22 liquidation program;

4-23 (k) Approve the issuance of bonds or other forms of indebtedness by the

4-24 local government;

4-25 (l) Discharge any of the outstanding debts and obligations of the local

4-26 government; and

4-27 (m) Take any other actions necessary to ensure that the local

4-28 government provides the basic services for which it was created in the most

4-29 economical and efficient manner possible.

4-30 2. The department may provide for reimbursement from the local

4-31 government for the expenses it incurs in managing the local government. If

4-32 such reimbursement is not possible, the department may request an

4-33 allocation by the interim finance committee from the contingency fund

4-34 pursuant to NRS 353.266, 353.268 and 353.269.

4-35 3. The governing body of a local government which is being managed

4-36 by the department pursuant to this section may make recommendations to

4-37 the department or the financial manager concerning the management of the

4-38 local government.

4-39 4. Each state agency, board, department, commission, committee or

4-40 other entity of the state shall provide such technical assistance concerning

4-41 the management of the local government as is requested by the department.

5-1 5. The department may delegate any of the powers and duties imposed

5-2 by this section to the financial manager appointed pursuant to paragraph (b)

5-3 of subsection 1.

5-4 6. [Once] Except as otherwise provided in section 1 of this act, once

5-5 the department has taken over the management of a local government

5-6 pursuant to the provisions of subsection 1, that management may only be

5-7 terminated pursuant to NRS 354.725.

5-8 Sec. 4. NRS 361.453 is hereby amended to read as follows:

5-9 361.453 Except as otherwise provided in NRS 354.705 [,] and section

5-14 year.

5-15 Sec. 5. This act becomes effective upon passage and approval.