1. Joint Sponsor: Senator McGinness

CHAPTER........

Section 1. The legislature finds as facts that:

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

the surrounding region in a manner and to a degree different from the

effects occurring elsewhere in the state, by eliminating employment and

otherwise diminishing the financial stability and economic vitality of the

communities in the region.

2. The affected communities, if they are to survive, must diversify their

economies by attracting new enterprises and rehabilitating existing

enterprises.

3. Existing general requirements pertaining to the management of

public property make the cooperative use of public property and resources

for that diversification and rehabilitation impractical.

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

other states to be effective in economic diversification and rehabilitation.

5. The Nevada Test Site Development Corporation has been organized

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

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

economic development in the affected region.

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

in the preceding subsections to enable the full cooperative use of public and

private resources to achieve the desired economic diversification and

rehabilitation of this region.

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

6, inclusive, of this act have the meanings ascribed to them in those

sections.

Sec. 3. "Affected community" means:

1. Esmeralda, Lincoln and Nye Counties and any city or

unincorporated town therein; and

2. The town of Indian Springs in Clark County.

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

organization not for profit, means an association or corporation recognized

and operating as:

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

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

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

Public Works and Economic Development Act of 1965, Public Law
89-136; or

3. A local redevelopment authority pursuant to the provisions of the

Base Closure Community Redevelopment and Homeless Assistance Act of

1994, Public Law 103-421,

and having sufficient financial resources, fiscal responsibility and powers to

propose, plan, and carry out substantial projects of economic development.

Sec. 5. "Population" has the meaning ascribed to it in NRS 0.050.

Sec. 6. "Regional development corporation" means a corporation for

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

NRS.

Sec. 7. 1. One or more affected communities, together with the

Nevada Test Site Development Corporation or another eligible economic

development organization not for profit, may form a regional development

corporation to ensure the continuing economic and social viability and

vitality of the affected community.

2. The governing body of each affected community that desires to

participate in forming such a corporation must first enact an ordinance

containing:

(a) Findings that:

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

stabilization, or any combination of these;

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

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

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

organizing the corporation; and

(4) The governing body has reviewed the qualifications of the

economic development organization not for profit with which it intends to

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

(b) The organization and composition of the corporation and the powers

to be delegated to it.

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

will be formed.

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

budget for the corporation.

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

personal property for the undertaking, and the method by which the

affected community may furnish to or exchange with the corporation

personnel, property or facilities.

(f) The authorized use of any gain from the operation of the corporation.

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

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

termination.

Sec. 8. A regional development corporation must be formed in the

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

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

provisions of chapter 82 of NRS apply to such a corporation.

Sec. 9. In addition to the matters required by chapter 82 of NRS, the

articles of incorporation of a regional development corporation must

contain:

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

corporation" or the initials "RDC";

2. The name and post office box or street address of each affected

community, and of the eligible economic development organization not for

profit, which are the incorporators;

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

4. The purposes for which the corporation is organized;

5. A statement that the corporation may, except as otherwise provided

in subsection 2 of section 11 of this act, engage in any lawful activity

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

power; and

6. An authorization of or prohibition against reconveyance to a

member of the corporation of real or personal property contributed by the

member, and any desired restriction upon reconveyance.

Sec. 10. 1. The number of members of the board of directors of a

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

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

the number of incorporating members plus one or two members elected

pursuant to subsection 3.

2. The governing body of each affected community which joined in

organizing the corporation shall appoint at least one member to the board

of directors and may agree to appoint an equal number of additional

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

members elected pursuant to subsection 3.

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

additional members.

Sec. 11. 1. Except as otherwise provided in subsection 2, the

purposes for which a regional development corporation is organized must

be to:

(a) Assist, promote, encourage, develop and advance the economic

welfare of the affected communities in accordance with their general plans

for economic development;

(b) Facilitate and assist in the location of new business in the affected

communities, and to rehabilitate and revitalize existing business;

(c) Stimulate and assist in the expansion of activity that will tend to

promote the development and diversification of business resulting in the

economic stability of the affected communities;

(d) Provide new opportunities for employment in the affected

communities; and

(e) Cooperate and act in conjunction with governmental agencies and

public or private organizations whose objectives are the support and

advancement of commercial, industrial, agricultural or recreational activity

that would advance the economic welfare of the affected communities,

promote economic diversification, and effectuate their plans for economic

development.

2. A regional development corporation must not be organized for the

purpose of engaging in any activity which promotes, facilitates or otherwise

relates to the transportation, disposal or storage of high-level radioactive

waste.

Sec. 12. 1. Each affected community and eligible economic

development organization not for profit which joins in the organization of a

regional development corporation is a member of the corporation.

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

affected communities, eligible economic development organizations not for

profit, quasi-public agencies, including economic development authorities

formed by interlocal agreement, corporations whether or not for profit,

other business associations, or natural persons may request membership in,

and if accepted become members of, the regional development corporation.

A member so admitted may not appoint a member of the board of directors.

3. The articles of incorporation or bylaws of the regional development

corporation must establish:

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

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

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

according to the nature of the admitted member.

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

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

If a member is admitted for a fixed term, the membership expires at the end

of the term.

5. If the board of directors determines that the actions of an

incorporator require its expulsion or the termination of its membership, the

regional development corporation must be dissolved in the manner

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

Sec. 13. 1. An affected community that is an incorporator of a

regional development corporation may furnish or exchange personnel,

equipment, property or facilities to or with the corporation, and commit

itself to the payment of money for the formation and operation of the

corporation, to the extent provided in the ordinance adopted pursuant to

section 7 of this act.

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

incorporator or admitted member may contribute by conveying any land,

improvements, facilities and public works, or by providing personnel or

professional services, to the corporation which its governing body deems

necessary or desirable, without charge or competitive disposal. In dividing

the assets of a regional development corporation upon dissolution, each

member must be credited for the value of all contributions.

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

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

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

condition is not effective if, because of subsequent development of the

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

division of assets among the members.

4. Reconveyance of real property or return of personal property to a

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

purposes of NRS 82.136.

Sec. 14. In a civil action brought against an officer, employee, director

or agent of a regional development corporation based on an act or omission

related to his duty or employment, the corporation shall provide or

reimburse the costs of his defense and indemnify him if a judgment is

rendered against him, unless:

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

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

employment with the corporation; or

3. The act or omission was wanton or malicious.

Sec. 15. A regional development corporation shall not engage in any

activity which promotes, facilities or otherwise relates to the transportation,

disposal or storage of high-level radioactive waste.

Sec. 16. This act becomes effective upon passage and approval.

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