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. The legislature finds as facts that:

1-2 1. The reduction of federal activity at the Nevada Test Site has

1-3 affected the surrounding region in a manner and to a degree different from

1-4 the effects occurring elsewhere in the state, by eliminating employment

1-5 and otherwise diminishing the financial stability and economic vitality of

1-6 the communities in the region.

1-7 2. The affected communities, if they are to survive, must diversify

1-8 their economies by attracting new enterprises and rehabilitating existing

1-9 enterprises.

1-10 3. Existing general requirements pertaining to the management of

1-11 public property make the cooperative use of public property and resources

1-12 for that diversification and rehabilitation impractical.

1-13 4. Cooperative use of public and private resources has shown itself in

1-14 other states to be effective in economic diversification and rehabilitation.

2-1 5. The Nevada Test Site Development Corporation has been organized

2-2 as a Nevada corporation not for profit under section 3161 of the National

2-3 Defense Authorization Act of 1993, Public Law 102-484, to facilitate

2-4 economic development in the affected region.

2-5 6. A general law cannot be made applicable for the reasons explained

2-6 in the preceding subsections to enable the full cooperative use of public

2-7 and private resources to achieve the desired economic diversification and

2-8 rehabilitation of this region.

2-9 Sec. 2. As used in this act, the words and terms defined in sections 3

2-10 to 7, inclusive, of this act have the meanings ascribed to them in those

2-11 sections.

2-12 Sec. 3. "Affected community" means a political subdivision whose

2-13 population is less than 100,000 and a part of whose territory is located

2-14 within 125 miles of the outer boundary of the Nevada Test site.

2-15 Sec. 4. "Eligible," with respect to an economic development

2-16 organization not for profit, means an association or corporation recognized

2-17 and operating as:

2-18 1. A reuse organization pursuant to the provisions of section 3161 of

2-19 the National Defense Authorization Act of 1993, Public Law 102-484;

2-20 2. An economic development district pursuant to the provisions of the

2-21 Public Works and Economic Development Act of 1965, Public Law 89-

2-22 136; or

2-23 3. A local redevelopment authority pursuant to the provisions of the

2-24 Base Closure Community Redevelopment and Homeless Assistance Act of

2-25 1994, Public Law 103-421,

2-26 and having sufficient financial resources, fiscal responsibility and powers

2-27 to propose, plan, and carry out substantial projects of economic

2-28 development.

2-29 Sec. 5. "Political subdivision" means a county, city or unincorporated

2-30 town.

2-31 Sec. 6. "Population" has the meaning ascribed to it in NRS 0.050.

2-32 Sec. 7. "Regional development corporation" means a corporation for

2-33 public benefit organized in this state pursuant to this act and chapter 82 of

2-34 NRS.

2-35 Sec. 8. 1. One or more affected communities, together with the

2-36 Nevada Test Site Development Corporation or another eligible economic

2-37 development organization not for profit, may form a regional development

2-38 corporation to ensure the continuing economic and social viability and

2-39 vitality of the affected community.

2-40 2. Each political subdivision that desires to participate in forming such

2-41 a corporation must first enact an ordinance containing:

2-42 (a) Findings that:

3-1 (1) The economy of its territory needs revitalization, diversification

3-2 or stabilization, or any combination of these;

3-3 (2) The corporation will assist in satisfying those needs, in

3-4 accordance with a general plan for economic development then in force;

3-5 (3) The general welfare of its residents will be best served by

3-6 organizing the corporation; and

3-7 (4) The governing body has reviewed the qualifications of the

3-8 economic development organization not for profit with which it intends to

3-9 organize the corporation, and has found that organization to be eligible.

3-10 (b) The organization and composition of the corporation and the powers

3-11 to be delegated to it.

3-12 (c) The intended duration of the agreement under which the corporation

3-13 will be formed.

3-14 (d) The proposed method of financing the undertaking and providing a

3-15 budget for the corporation.

3-16 (e) The proposed method of acquiring, holding and disposing of real

3-17 and personal property for the undertaking, and the method by which the

3-18 political subdivision may furnish to or exchange with the corporation

3-19 personnel, property or facilities.

3-20 (f) The authorized use of any gain from the operation of the

3-21 corporation.

3-22 (g) The method for terminating the agreement and the corporation in

3-23 whole or in part and for disposing of property and other assets upon

3-24 termination.

3-25 Sec. 9. A regional development corporation must be formed in the

3-26 manner provided in NRS 82.081 to 82.116, inclusive. Except to the extent

3-27 superseded, enlarged or otherwise changed in application by this act, the

3-28 provisions of chapter 82 of NRS apply to such a corporation.

3-29 Sec. 10. In addition to the matters required by chapter 82 of NRS, the

3-30 articles of incorporation of a regional development corporation must

3-31 contain:

3-32 1. In the name of the corporation, the words "a regional development

3-33 corporation" or the initials "RDC";

3-34 2. The name and post office box or street address of each political

3-35 subdivision, and of the eligible economic development organization not for

3-36 profit, which are the incorporators;

3-37 3. The names of the members of the board of directors;

3-38 4. The purposes for which the corporation is organized;

3-39 5. A statement that the corporation may engage in any lawful activity

3-40 reasonably related to its purposes, and any desired limitation upon that

3-41 power; and

4-1 6. An authorization of or prohibition against reconveyance to a

4-2 member of the corporation of real or personal property contributed by the

4-3 member, and any desired restriction upon reconveyance.

5-1 Sec. 11. 1. The number of members of the board of directors of a

5-2 regional development corporation must be an odd number, not more than

5-3 11, that is equal to the number of incorporating members or a multiple of

5-4 the number of incorporating members plus one or two members elected

5-5 pursuant to subsection 3.

5-6 2. The governing body of each political subdivision which joined in

5-7 organizing the corporation shall appoint at least one member to the board

5-8 of directors and may agree to appoint an equal number of additional

5-9 members, not to exceed the sum of 11 when combined with the member or

5-10 members elected pursuant to subsection 3.

5-11 3. The appointed members shall by a two-thirds vote elect one or two

5-12 additional members.

5-13 Sec. 12. The purposes for which a regional development corporation

5-14 is organized must be to:

5-15 1. Assist, promote, encourage, develop and advance the economic

5-16 welfare of the affected communities in accordance with their general plans

5-17 for economic development;

5-18 2. Facilitate and assist in the location of new business in the affected

5-19 communities, and to rehabilitate and revitalize existing business;

5-20 3. Stimulate and assist in the expansion of activity that will tend to

5-21 promote the development and diversification of business resulting in the

5-22 economic stability of the affected communities;

5-23 4. Provide new opportunities for employment in the affected

5-24 communities; and

5-25 5. Cooperate and act in conjunction with governmental agencies and

5-26 public or private organizations whose objectives are the support and

5-27 advancement of commercial, industrial, agricultural or recreational activity

5-28 that would advance the economic welfare of the affected communities,

5-29 promote economic diversification, and effectuate their plans for economic

5-30 development.

5-31 Sec. 13. 1. Each political subdivision and eligible economic

5-32 development organization not for profit which joins in the organization of

5-33 a regional development corporation is a member of the corporation.

5-34 2. After the formation of a regional development corporation, other

5-35 political subdivisions, eligible economic development organizations not for

5-36 profit, quasi-public agencies, including economic development authorities

5-37 formed by interlocal agreement, corporations whether or not for profit,

5-38 other business associations, or natural persons may request membership in,

5-39 and if accepted become members of, the regional development

5-40 corporation. A member so admitted may not appoint a member of the

5-41 board of directors.

6-1 3. The articles of incorporation or bylaws of the regional development

6-2 corporation must establish:

6-3 (a) Criteria or procedures for admission, but may not dispense with

6-4 contribution of assets, personnel or services to the corporation; and

6-5 (b) The scope of participation for admitted members, which may vary

6-6 according to the nature of the admitted member.

6-7 4. An admitted member may be expelled or suspended, or the

6-8 membership terminated, in accordance with the provisions of NRS 82.251.

6-9 If a member is admitted for a fixed term, the membership expires at the

6-10 end of the term.

6-11 5. If the board of directors determines that the actions of an

6-12 incorporator require its expulsion or the termination of its membership, the

6-13 regional development corporation must be dissolved in the manner

6-14 provided in NRS 82.491 to 82.521, inclusive, for involuntary dissolution.

6-15 Sec. 14. 1. A political subdivision that is an incorporator of a

6-16 regional development corporation may furnish or exchange personnel,

6-17 equipment, property or facilities to or with the corporation, and commit

6-18 itself to the payment of money for the formation and operation of the

6-19 corporation, to the extent provided in the ordinance adopted pursuant to

6-20 section 8 of this act.

6-21 2. After the organization of a regional development corporation, an

6-22 incorporator or admitted member may contribute by conveying any land,

6-23 improvements, facilities and public works, or by providing personnel or

6-24 professional services, to the corporation which its governing body deems

6-25 necessary or desirable, without charge or competitive disposal. In dividing

6-26 the assets of a regional development corporation upon dissolution, each

6-27 member must be credited for the value of all contributions.

6-28 3. Contributions of real property may be made on the condition that

6-29 upon dissolution of the corporation, if the contributed real property is still

6-30 held by the corporation, it will be reconveyed to the contributor, but such a

6-31 condition is not effective if, because of subsequent development of the

6-32 property or for any other reason, reconveyance would result in an unfair

6-33 division of assets among the members.

6-34 4. Reconveyance of real property or return of personal property to a

6-35 member is not a distribution of gain or profit to the member for the

6-36 purposes of NRS 82.136.

6-37 Sec. 15. In a civil action brought against an officer, employee,

6-38 director or agent of a regional development corporation based on an act or

6-39 omission related to his duty or employment, the corporation shall provide

6-40 or reimburse the costs of his defense and indemnify him if a judgment is

6-41 rendered against him, unless:

7-1 1. He failed to cooperate in good faith in the defense of the action;

7-2 2. The act or omission was not within the scope of his duty to or

7-3 employment with the corporation; or

7-4 3. The act or omission was wanton or malicious.

7-5 Sec. 16. This act becomes effective upon passage and approval.