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 affected

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

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

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

1-6 communities in the region.

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

1-8 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 and

2-7 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 to

2-10 6, inclusive, of this act have the meanings ascribed to them in those

2-11 sections.

2-12 Sec. 3. "Affected community" means

2-13 1. Esmeralda, Lincoln and Nye Counties and any city or

2-14 unincorporated town therein; and

2-15 2. The town of Indian Springs in Clark Clounty.

2-16 Sec. 4. "Eligible," with respect to an economic development

2-17 organization not for profit, means an association or corporation recognized

2-18 and operating as:

2-19 1. A reuse organization pursuant to the provisions of section 3161 of

2-20 the National Defense Authorization Act of 1993, Public Law 102-484;

2-21 2. An economic development district pursuant to the provisions of the

2-22 Public Works and Economic Development Act of 1965, Public Law 89-

2-23 136; or

2-24 3. A local redevelopment authority pursuant to the provisions of the

2-25 Base Closure Community Redevelopment and Homeless Assistance Act of

2-26 1994, Public Law 103-421,

2-27 and having sufficient financial resources, fiscal responsibility and powers to

2-28 propose, plan, and carry out substantial projects of economic development.

2-29 Sec. 5. "Population" has the meaning ascribed to it in NRS 0.050.

2-30 Sec. 6. "Regional development corporation" means a corporation for

2-31 public benefit organized in this state pursuant to this act and chapter 82 of

2-32 NRS.

2-33 Sec. 7. 1. One or more affected communities, together with the

2-34 Nevada Test Site Development Corporation or another eligible economic

2-35 development organization not for profit, may form a regional development

2-36 corporation to ensure the continuing economic and social viability and

2-37 vitality of the affected community.

2-38 2. The governing body of each affected community that desires to

2-39 participate in forming such a corporation must first enact an ordinance

2-40 containing:

2-41 (a) Findings that:

2-42 (1) The economy of its territory needs revitalization, diversification or

2-43 stabilization, or any combination of these;

3-1 (2) The corporation will assist in satisfying those needs, in

3-2 accordance with a general plan for economic development then in force;

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

3-4 organizing the corporation; and

3-5 (4) The governing body has reviewed the qualifications of the

3-6 economic development organization not for profit with which it intends to

3-7 organize the corporation, and has found that organization to be eligible.

3-8 (b) The organization and composition of the corporation and the powers

3-9 to be delegated to it.

3-10 (c) The intended duration of the agreement under which the corporation

3-11 will be formed.

3-12 (d) The proposed method of financing the undertaking and providing a

3-13 budget for the corporation.

3-14 (e) The proposed method of acquiring, holding and disposing of real and

3-15 personal property for the undertaking, and the method by which the

3-16 affected community may furnish to or exchange with the corporation

3-17 personnel, property or facilities.

3-18 (f) The authorized use of any gain from the operation of the corporation.

3-19 (g) The method for terminating the agreement and the corporation in

3-20 whole or in part and for disposing of property and other assets upon

3-21 termination.

3-22 Sec. 8. A regional development corporation must be formed in the

3-23 manner provided in NRS 82.081 to 82.116, inclusive. Except to the extent

3-24 superseded, enlarged or otherwise changed in application by this act, the

3-25 provisions of chapter 82 of NRS apply to such a corporation.

3-26 Sec. 9. In addition to the matters required by chapter 82 of NRS, the

3-27 articles of incorporation of a regional development corporation must

3-28 contain:

3-29 1. In the name of the corporation, the words "a regional development

3-30 corporation" or the initials "RDC";

3-31 2. The name and post office box or street address of each affected

3-32 community, and of the eligible economic development organization not for

3-33 profit, which are the incorporators;

3-34 3. The names of the members of the board of directors;

3-35 4. The purposes for which the corporation is organized;

3-36 5. A statement that the corporation may, except as otherwise provided

3-37 in subsection 2 of section 11 of this act, engage in any lawful activity

3-38 reasonably related to its purposes, and any desired limitation upon that

3-39 power; and

3-40 6. An authorization of or prohibition against reconveyance to a

3-41 member of the corporation of real or personal property contributed by the

3-42 member, and any desired restriction upon reconveyance.

4-1 Sec. 10. 1. The number of members of the board of directors of a

4-2 regional development corporation must be an odd number, not more than

4-3 11, that is equal to the number of incorporating members or a multiple of

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

4-5 pursuant to subsection 3.

4-6 2. The governing body of each affected community which joined in

4-7 organizing the corporation shall appoint at least one member to the board

4-8 of directors and may agree to appoint an equal number of additional

4-9 members, not to exceed the sum of 11 when combined with the member or

4-10 members elected pursuant to subsection 3.

4-11 3. The appointed members shall by a two-thirds vote elect one or two

4-12 additional members.

4-13 Sec. 11. 1. Except as otherwise provided in subsection 2, the

4-14 purposes for which a regional development corporation is organized must

4-15 be to:

4-16 (a) Assist, promote, encourage, develop and advance the economic

4-17 welfare of the affected communities in accordance with their general plans

4-18 for economic development;

4-19 (b) Facilitate and assist in the location of new business in the affected

4-20 communities, and to rehabilitate and revitalize existing business;

4-21 (c) Stimulate and assist in the expansion of activity that will tend to

4-22 promote the development and diversification of business resulting in the

4-23 economic stability of the affected communities;

4-24 (d) Provide new opportunities for employment in the affected

4-25 communities; and

4-26 (e) Cooperate and act in conjunction with governmental agencies and

4-27 public or private organizations whose objectives are the support and

4-28 advancement of commercial, industrial, agricultural or recreational activity

4-29 that would advance the economic welfare of the affected communities,

4-30 promote economic diversification, and effectuate their plans for economic

4-31 development.

4-32 2. A regional development corporation must not be organized for the

4-33 purpose of engaging in any activity which promotes, facilitates or otherwise

4-34 relates to the transportation, disposal or storage of high-level radioactive

4-35 waste.

4-36 Sec. 12. 1. Each affected community and eligible economic

4-37 development organization not for profit which joins in the organization of a

4-38 regional development corporation is a member of the corporation.

4-39 2. After the formation of a regional development corporation, other

4-40 affected communities, eligible economic development organizations not for

4-41 profit, quasi-public agencies, including economic development authorities

4-42 formed by interlocal agreement, corporations whether or not for profit,

4-43 other business associations, or natural persons may request membership in,

5-1 and if accepted become members of, the regional development corporation.

5-2 A member so admitted may not appoint a member of the board of directors.

5-3 3. The articles of incorporation or bylaws of the regional development

5-4 corporation must establish:

5-5 (a) Criteria or procedures for admission, but may not dispense with

5-6 contribution of assets, personnel or services to the corporation; and

5-7 (b) The scope of participation for admitted members, which may vary

5-8 according to the nature of the admitted member.

5-9 4. An admitted member may be expelled or suspended, or the

5-10 membership terminated, in accordance with the provisions of NRS 82.251.

5-11 If a member is admitted for a fixed term, the membership expires at the end

5-12 of the term.

5-13 5. If the board of directors determines that the actions of an

5-14 incorporator require its expulsion or the termination of its membership, the

5-15 regional development corporation must be dissolved in the manner

5-16 provided in NRS 82.491 to 82.521, inclusive, for involuntary dissolution.

5-17 Sec. 13. 1. An affected community that is an incorporator of a

5-18 regional development corporation may furnish or exchange personnel,

5-19 equipment, property or facilities to or with the corporation, and commit

5-20 itself to the payment of money for the formation and operation of the

5-21 corporation, to the extent provided in the ordinance adopted pursuant to

5-22 section 7 of this act.

5-23 2. After the organization of a regional development corporation, an

5-24 incorporator or admitted member may contribute by conveying any land,

5-25 improvements, facilities and public works, or by providing personnel or

5-26 professional services, to the corporation which its governing body deems

5-27 necessary or desirable, without charge or competitive disposal. In dividing

5-28 the assets of a regional development corporation upon dissolution, each

5-29 member must be credited for the value of all contributions.

5-30 3. Contributions of real property may be made on the condition that

5-31 upon dissolution of the corporation, if the contributed real property is still

5-32 held by the corporation, it will be reconveyed to the contributor, but such a

5-33 condition is not effective if, because of subsequent development of the

5-34 property or for any other reason, reconveyance would result in an unfair

5-35 division of assets among the members.

5-36 4. Reconveyance of real property or return of personal property to a

5-37 member is not a distribution of gain or profit to the member for the

5-38 purposes of NRS 82.136.

5-39 Sec. 14. In a civil action brought against an officer, employee, director

5-40 or agent of a regional development corporation based on an act or omission

5-41 related to his duty or employment, the corporation shall provide or

5-42 reimburse the costs of his defense and indemnify him if a judgment is

5-43 rendered against him, unless:

6-1 1. He failed to cooperate in good faith in the defense of the action;

6-2 2. The act or omission was not within the scope of his duty to or

6-3 employment with the corporation; or

6-4 3. The act or omission was wanton or malicious.

6-5 Sec. 15. A regional development corporation shall not engage in any

6-6 activity which promotes, facilities or otherwise relates to the transportation,

6-7 disposal or storage of high-level radioactive waste.

6-8 Sec. 16. This act becomes effective upon passage and approval.