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. NRS 361.0687 is hereby amended to read as follows:

1-2 361.0687 1. A person who intends to locate or expand a business in

2-1 (b) The abatement is a significant factor in the decision of the applicant

2-2 to locate or expand a business in this state or the appropriate affected local

2-3 government determines that the abatement will be beneficial to the

2-4 economic development of the community.

2-5 (c) The average hourly wage which will be paid by the new or expanded

2-6 business to its employees in this state is at least 125 percent of the average

2-7 statewide industrial hourly wage as established by the employment security

2-8 division of the department of employment, training and rehabilitation on

2-9 July 1 of each fiscal year.

2-10 (d) The business will provide a health insurance plan for all employees

2-11 that includes an option for health insurance coverage for dependents of the

2-12 employees.

2-13 (e) The cost to the business for the benefits the business provides to its

2-14 employees in this state will meet the minimum requirements for benefits

2-15 established by the commission pursuant to subsection [8.] 9.

2-16 (f) A capital investment for personal property will be made to locate or

2-17 expand the business in Nevada which is at least:

2-18 (1) [If] Except as otherwise provided in subparagraph (2), if the

2-19 personal property directly related to the establishment of the business in

2-20 this state is primarily located in a county whose population:

2-21 (I) Is 100,000 or more, $50,000,000.

2-22 (II) Is less than 100,000, $20,000,000.

2-23 (2) If the personal property directly related to the establishment of

2-24 the business in this state is primarily located in a city or town whose

2-25 population is less than 25,000, and the city or town is located in a county

2-26 whose population is 100,000 or more, $20,000,000.

2-27 (3) Except as otherwise provided in subparagraph (4), if the

2-28 personal property directly related to the expansion of the business is

2-29 primarily located in a county whose population:

2-30 (I) Is 100,000 or more, $10,000,000.

2-31 (II) Is less than 100,000, $4,000,000.

2-32 (4) If the personal property directly related to the expansion of the

2-33 business is primarily located in a city or town whose population is less

2-34 than 25,000, and that city or town is located in a county whose

2-35 population is 100,000 or more, $4,000,000.

2-36 (g) The business will create at least the following number of new, full-

2-37 time and permanent jobs in the State of Nevada by the fourth quarter that it

2-38 is in operation:

2-39 (1) [If] Except as otherwise provided in subparagraph (2), if a new

2-40 business will be primarily located in a county whose population:

2-41 (I) Is 100,000 or more, 100 jobs.

2-42 (II) Is less than 100,000, 35 jobs.

3-1 (2) If a new business will be primarily located in a city or town

3-2 whose population is less than 25,000, and that city or town is located in a

3-3 county whose population is 100,000 or more, 35 jobs.

3-4 (3) Except as otherwise provided in subparagraph (4), if an

3-5 expanded business will be primarily located in a county whose population:

3-6 (I) Is 100,000 or more, and the business has at least 100 employees

3-7 in this state, 20 jobs. An expanded business primarily located in such a

3-8 county that has less than 100 employees is not eligible for a partial

3-9 abatement pursuant to this section.

3-10 (II) Is less than 100,000, and the business has at least 35 employees

3-11 in this state, 10 jobs. An expanded business primarily located in such a

3-12 county that has less than 35 employees is not eligible for a partial

3-13 abatement pursuant to this section.

3-14 (4) If an expanded business that has at least 35 employees in this

3-15 state will be primarily located in a city or town whose population is less

3-16 than 25,000, and that city or town is located in a county whose

3-17 population is 100,000 or more, 10 jobs. An expanded business primarily

3-18 located in such a city or town that has less than 35 employees is not

3-19 eligible for a partial abatement pursuant to this section.

3-20 (h) For the expansion of a business primarily located [in] :

3-21 (1) Except as otherwise provided in subparagraph (3), in a county

3-22 whose population [:

3-23 (1) Is] is 100,000 or more, the book value of the assets of the business

3-24 in this state is at least $20,000,000.

3-25 (2) [Is] In a county whose population is less than 100,000, the book

3-26 value of the assets of the business in this state is at least $5,000,000.

3-27 (3) In a city or town whose population is less than 25,000, and that

3-28 city or town is located in a county whose population is 100,000 or more,

3-29 the book value of the assets of the business in this state is at least

3-30 $5,000,000.

3-31 (i) The business is registered pursuant to the laws of this state or the

3-32 applicant commits to obtain a [valid] business license and all other permits

3-33 required by the county, city or town in which the business operates.

3-34 (j) The proposed abatement has been approved by the governing body of

3-35 the appropriate affected local government as determined pursuant to the

3-36 regulations adopted pursuant to subsection [8.] 9. In determining whether to

3-37 approve a proposed abatement, the governing body shall consider whether

3-38 the taxes to be paid by the business are sufficient to pay for any investment

3-39 required to be made by the local government for services associated with

3-40 the relocation or expansion of the business, including, without limitation,

3-41 costs related to the construction and maintenance of roads, sewer and water

3-42 services, fire and police protection and the construction and maintenance of

3-43 schools.

4-1 (k) The applicant has executed an agreement with the commission which

4-2 states that the business will continue in operation in Nevada for 10 or more

4-3 years after the date on which a certificate of eligibility for the abatement is

4-4 issued pursuant to subsection 5 and will continue to meet the eligibility

4-5 requirements [contained] set forth in this subsection. The agreement must

4-6 bind the successors in interest of the business for the required period.

4-7 3. An applicant shall, upon the request of the executive director of the

4-8 commission on economic development, furnish him with copies of all

4-9 records necessary to verify that the applicant meets the requirements of

4-10 subsection 2.

4-11 4. The percentage of the abatement must be 50 percent of the taxes

4-12 payable each year.

4-13 5. If an application for a partial abatement is approved, the commission

4-14 on economic development shall immediately forward a certificate of

4-15 eligibility for the abatement to:

4-16 (a) The department; and

4-17 (b) The county assessor of each county in which personal property

4-18 directly related to the establishment or expansion of the business will be

4-19 located.

4-20 6. Upon receipt by the department of the certificate of eligibility, the

4-21 taxpayer is eligible for an abatement from the tax imposed by this chapter

4-22 for 10 years:

4-23 (a) For the expansion of a business, on all personal property of the

4-24 business that is located in Nevada and directly related to the expansion of

4-25 the business in this state.

4-26 (b) For a new business, on all personal property of the business that is

4-27 located in Nevada and directly related to the establishment of the business

4-28 in this state.

4-29 7. If a business for which an abatement has been approved is not

4-30 maintained in this state in accordance with the agreement required [in]

4-31 pursuant to subsection 2, for at least 10 years after the commission on

4-32 economic development approved the abatement, the person who applied for

4-33 the abatement shall repay to [the] each county treasurer [or treasurers] who

4-34 would have received the taxes but for the abatement the total amount of all

4-35 taxes that were abated pursuant to this section. The person who applied for

4-36 the abatement shall pay interest on the amount due at the rate of 10 percent

4-37 per annum for each month, or portion thereof, from the last day of the

4-38 month following the period for which the payment would have been made

4-39 if the abatement had not been granted until the date of the actual payment

4-40 of the tax.

5-1 8. A county treasurer:

5-2 (a) Shall deposit any money that he receives pursuant to subsection 7 in

5-3 one or more of the funds established by a local government of the county

5-4 pursuant to NRS 354.611, 354.6113 or 354.6115; and

5-5 (b) May use the money deposited pursuant to paragraph (a) only for the

5-6 purposes authorized by NRS 354.611, 354.6113 and 354.6115.

5-7 9. The commission on economic development shall adopt regulations

5-8 necessary to carry out the provisions of this section. The regulations must

5-9 include, but not be limited to:

5-10 (a) A method for determining the appropriate affected local government

5-11 to approve a proposed abatement and the procedure for obtaining [such]

5-12 that approval; and

5-13 (b) Minimum requirements for benefits that a business applying for a

5-14 partial abatement must offer to its employees to be approved for the partial

5-15 abatement.

5-16 10. The department shall adopt regulations concerning how county

5-17 assessors shall administer partial abatements approved pursuant to this

5-18 section.

5-19 11. An applicant for an abatement who is aggrieved by a final decision

5-20 of the commission on economic development may petition for judicial

5-21 review in the manner provided in chapter 233B of NRS.

5-22 Sec. 2. NRS 364A.020 is hereby amended to read as follows:

5-23 364A.020 1. "Business" includes:

5-39 "motion pictures" has the meaning ascribed to it in NRS 231.020.

5-40 Sec. 3. NRS 364A.130 is hereby amended to read as follows:

5-41 364A.130 1. Except as otherwise provided in subsection 6 , [and

5-43 he has a business license issued by the department.

6-1 2. The application for a business license must:

6-2 (a) Be made upon a form prescribed by the department;

6-3 (b) Set forth the name under which the applicant transacts or intends to

6-4 transact business and the location of his place or places of business;

6-5 (c) Declare the estimated number of employees for the previous

6-6 calendar quarter;

6-7 (d) Be accompanied by a fee of $25; and

6-8 (e) Include any other information that the department deems necessary.

6-9 3. The application must be signed by:

6-10 (a) The owner, if the business is owned by a natural person;

6-11 (b) A member or partner, if the business is owned by an association or

6-12 partnership; or

6-13 (c) An officer or some other person specifically authorized to sign the

6-14 application, if the business is owned by a corporation.

6-15 4. If the application is signed pursuant to paragraph (c) of subsection 3,

6-16 written evidence of the signer’s authority must be attached to the

6-17 application.

6-18 5. For the purposes of this chapter, a person shall be deemed to

6-19 conduct a business in this state if a business for which the person is

6-20 responsible:

6-21 (a) Is incorporated pursuant to chapter 78 or 78A of NRS;

6-22 (b) Has an office or other base of operations in this state; or

6-23 (c) Pays wages or other remuneration to a natural person who performs

6-24 in this state any of the duties for which he is paid.

6-25 6. A person who takes part in a trade show or convention held in this

6-26 state for a purpose related to the conduct of a business is not required to

6-27 obtain a business license specifically for that event.

6-28 Sec. 4. NRS 364A.170 is hereby amended to read as follows:

6-29 364A.170 1. A proposed business that qualifies pursuant to the

6-42 whose population is 35,000 or more:

7-1 (1) The business will have 75 or more full-time employees on the

7-2 payroll of the business by the fourth quarter that it is in operation;

7-3 (2) Establishing the business will require the business to make a

7-4 capital investment of $1,000,000 in Nevada; and

7-5 (3) The exemption is approved by the commission on economic

7-6 development pursuant to subsection 3.

7-7 (b) In a county whose population is less than 35,000 [:] or in a city or

7-8 town located in a county specified in paragraph (a) whose population is

7-9 less than 25,000:

7-10 (1) The business will have 25 or more full-time employees on the

7-11 payroll of the business by the fourth quarter that it is in operation;

7-12 (2) Establishing the business will require the business to make a

7-13 capital investment of $250,000 in Nevada; and

7-14 (3) The exemption is approved by the commission on economic

7-15 development pursuant to subsection 3.

7-16 3. A proposed business must apply to the commission on economic

7-17 development to obtain the exemption authorized pursuant to this section.

7-18 The commission shall certify a business’s eligibility for the exemption

7-19 pursuant to this section if:

7-20 (a) The proposed business commits to the requirements of

7-21 subparagraphs (1) and (2) of paragraph (a) or (b) of subsection 2,

7-22 whichever is applicable; and

7-23 (b) The proposed business is consistent with the commission’s plan for

7-24 economic diversification and development.

7-25 Upon certification, the commission shall immediately forward the

7-26 certificate of eligibility for the exemption to the Nevada tax commission.

7-27 4. Upon receipt of [such a] the certificate, the Nevada tax commission

7-28 shall include the exemption in the calculation of the tax paid by the

7-29 business. A business for which an exemption is approved that does not:

7-30 (a) Have the required number of full-time employees on the payroll of

7-31 the business by the fourth quarter that it is in operation; or

7-32 (b) Make the required capital investment in Nevada in the course of

7-33 establishing the business,

7-34 [is required to] shall repay to the department the amount of the exemption

7-35 that was allowed pursuant to this section before the business’s failure to

7-36 comply unless the Nevada tax commission determines that the business has

7-37 substantially complied with the requirements of this section. The business is

7-38 also required to pay interest on the amount due at the rate most recently

7-39 established pursuant to NRS 99.040 for each month, or portion thereof,

7-40 from the last day of the month following the period for which the payment

7-41 would have been made had the exemption not been granted until the date of

7-42 payment of the tax.

8-1 5. The commission on economic development shall adopt regulations

8-2 governing the determination made pursuant to subsection 3 of a proposed

8-3 business’s eligibility for the exemption provided in this section.

8-4 6. The Nevada tax commission:

8-5 (a) Shall adopt regulations governing the investments that qualify for the

8-6 purposes of the required capital investment pursuant to subparagraph (2) of

8-7 paragraph (a) or (b) of subsection 2.

8-8 (b) May adopt such other regulations as are necessary to carry out the

8-9 provisions of this section.

8-10 Sec. 5. NRS 80.050 is hereby amended to read as follows:

8-11 80.050 1. Except as otherwise provided in subsection 3, foreign

8-31 a foreign corporation is $30.

8-32 Sec. 6. NRS 231.068 is hereby amended to read as follows:

8-33 231.068 1. The commission on economic development, to the extent

8-43 year; and

9-1 (b) Must be carried forward to the next fiscal year.

9-2 Sec. 7. NRS 608.300 is hereby amended to read as follows:

9-3 608.300 As used in NRS 608.300 to 608.330, inclusive, unless the

9-19 motion picture company in the production.]

9-20 Sec. 8. NRS 608.310 is hereby amended to read as follows:

9-21 608.310 1. Except as otherwise provided in subsection 4, a producer-

10-1 (a) Has been in the business of a producer-promoter-employer in this

10-2 state for the 5-year period immediately preceding the filing of the

10-3 application and has had no successful wage claim filed with the labor

10-4 commissioner during that period;

10-5 (b) Has sufficient tangible assets in this state which, if executed upon,

10-6 would equal or exceed the amount of bond required; or

10-7 (c) Holds a license to operate a nonrestricted gaming operation in this

10-8 state . [; or

10-9 (d) If the producer-promoter-employer is engaged in the production of a

10-10 motion picture, as that term is defined in NRS 231.020, within a county

10-11 whose population is 400,000 or more, has contracted with a company to

10-12 organize or manage the payroll of the production and the company is the

10-13 employer of record of any or all of the persons engaged in the production.

10-14 5. If a producer-promoter-employer is exempt from the provisions of

10-15 this section pursuant to subsection 4, he may request a waiver confirming

10-16 that exemption from:

10-17 (a) The director of the division of motion pictures of the commission on

10-18 economic development; or

10-19 (b) In a county whose population is 400,000 or more, the department or

10-20 agency within that county which is authorized to issue business licenses on

10-21 behalf of the county.

10-22 If the request is made pursuant to paragraph (b), the department or agency

10-23 shall submit the request to the division of motion pictures in accordance

10-24 with NRS 608.325. The labor commissioner shall, within 1 working day,

10-25 approve such a request upon confirmation that the producer-promoter-

10-26 employer fulfills one or more of the criteria for an exemption set forth in

10-27 subsection 4. A waiver approved pursuant to this subsection is effective for

10-28 a period of 5 years unless the labor commissioner determines that good

10-29 cause exists to revoke the waiver. Upon the expiration of a waiver at the

10-30 end of the 5-year period, the labor commissioner may extend the waiver for

10-31 an additional period if the labor commissioner determines that the

10-32 producer-promoter-employer has acted in good faith and has complied with

10-33 the statutes and regulations of this state.]

10-34 Sec. 9. NRS 608.325 is hereby amended to read as follows:

10-35 608.325 In a county whose population is 400,000 or more, if the

10-41 [division of motion pictures of the] commission on economic development.

11-1 Upon the receipt of a [request or] bond, the producer-promoter-employer to

11-2 whom the [request or] bond pertains shall be deemed to have complied with

11-3 NRS 231.128.

11-4 Sec. 10. NRS 608.330 is hereby amended to read as follows:

11-5 608.330 Any person who fails to comply with the provisions of NRS

11-11 compliance with those provisions.

11-12 Sec. 11. NRS 364A.153 is hereby repealed.

11-13 TEXT OF REPEALED SECTION

11-14 364A.153 Responsibility of certain agencies to collect tax from out