SB259

Senate Bill No. 259–Senator Porter

CHAPTER........

AN ACT relating to business; exempting a business that creates or produces motion pictures

from the requirement of obtaining a business license from the department of

taxation; increasing the membership of the commission on tourism; revising the

provisions concerning legislative appropriations to the commission on economic

development for awarding grants to develop certain programs for occupational

education; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 364A.020 is hereby amended to read as follows:

364A.020 1. "Business" includes:

(a) A corporation, partnership, proprietorship, business association and

any other similar organization that conducts an activity for profit;

(b) The activities of a natural person which are deemed to be a business

pursuant to NRS 364A.120; and

described in paragraph (a) or (b) takes part, or which a person who

conducts such a business attends, for a purpose related to the conduct of the

business.

2. The term includes an independent contractor.

3. The term does not include:

(a) A nonprofit religious, charitable, fraternal or other organization that

qualifies as a tax-exempt organization pursuant to 26 U.S.C. § 501(c); [~~or]~~

(b) A governmental entity [.] ; or

(c) A business that creates or produces motion pictures. As used in

this paragraph, "motion pictures" has the meaning ascribed to it in

NRS 231.020.

Sec. 2. NRS 364A.130 is hereby amended to read as follows:

364A.130 1. Except as otherwise provided in subsection 6 , [~~and~~

~~NRS 364A.153,]~~ a person shall not conduct a business in this state unless

he has a business license issued by the department.

2. The application for a business license must:

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

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

transact business and the location of his place or places of business;

calendar quarter;

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

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

3. The application must be signed by:

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

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

partnership; or
(c) An officer or some other person specifically authorized to sign the

application, if the business is owned by a corporation.

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

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

application.

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

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

responsible:

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

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

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

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

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

obtain a business license specifically for that event.

Sec. 3. NRS 231.068 is hereby amended to read as follows:

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

of legislative appropriations, may grant money to a postsecondary

educational institution to develop a program for occupational education

which is designed to teach skills in a short [~~time]~~ period to persons who are

needed for employment by new or existing businesses.

2. Any money appropriated to the commission on economic

development for awarding grants to develop a program specified in

subsection 1 must be accounted for separately in the state general fund.

The money in the account:

(a) Does not revert to the state general fund at the end of any fiscal

year; and
(b) Must be carried forward to the next fiscal year.

Sec. 4. NRS 231.170 is hereby amended to read as follows:

231.170 1. The commission on tourism is composed of the lieutenant

governor, who is its chairman, and [~~six]~~ eight members who are appointed

by the governor.

2. The governor shall appoint as members of the commission persons

who are informed on and have experience in travel and tourism, including

the business of gaming.

3. The chief administrative officers of the county fair and recreation

boards [~~of counties whose population is 100,000 or more]~~ or, if there is no

county fair and recreation board in the county, the chairman of the

board of county commissioners, of the three counties that paid the largest

amount of the proceeds from the taxes imposed on the revenue from the

rental of transient lodging to the department of taxation for deposit with

the state treasurer for credit to the fund for the promotion of tourism

created by NRS 231.250 for the previous fiscal year are ex officio but

nonvoting members of the commission. A change in any member of the

commission who serves pursuant to the provisions of this subsection that

is required because of a change in the amount of the proceeds paid to the

department of taxation by each county must be effective on January 1 of

the calendar year immediately following the fiscal year in which the

proceeds were paid to the department of taxation.

4. [~~The]~~ In addition to the appointments made pursuant to subsection

3, the governor shall appoint : [~~at least one member who is a resident of:]~~

(a) At least one member who is a resident of Clark County.

(b) At least one member who is a resident of Washoe County.

whose population is [~~35,000]~~ 50,000 or less.

(d) One member who is a resident of any county in this state.

Sec. 5. NRS 608.300 is hereby amended to read as follows:

608.300 As used in NRS 608.300 to 608.330, inclusive, unless the

context otherwise requires:

1. "Artist" means an actor, musician, dancer or athlete.

2. "Production" means [:

(a) A stage production; or

(b) A motion picture, as that term is defined in NRS 231.020, that uses

~~artists.]~~ a stage production, concert, trade show, exhibition, convention or

sporting event. The term includes the technical personnel used to create

and produce the production.

3. "Producer-promoter-employer" means a natural person who, or a

firm, association or corporation which, supervises or finances a production

or attempts to organize a production. [~~The term also includes a company~~

that, in connection with the production of a motion picture within this
state:

(a) Is hired or established to organize or manage the payroll of the

production and is the employer of record of any or all of the persons

engaged in the production; or

(b) Is responsible for all of the debts and obligations incurred by a

motion picture company in the production.]

Sec. 6. NRS 608.310 is hereby amended to read as follows:

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

-promoter-employer intending to do business in this state must obtain a

permit from the labor commissioner.

2. An application for the permit required by subsection 1 must contain

information concerning:

(a) The applicant’s name and permanent address;

(b) The financing for the production;

artists, technical personnel and other persons required for the production

and where the applicant intends to exhibit the production; and

(d) Such other information as the labor commissioner may require by

regulation for the protection of persons associated with the entertainment

industry.

3. The commissioner may by regulation require a reasonable fee for

processing an application.

4. The provisions of this section do not apply to any producer-

promoter-employer who produces proof to the commissioner or, in a county

whose population is 400,000 or more, produces proof to the department or

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

behalf of the county that he:

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

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

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

commissioner during that period;

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

would equal or exceed the amount of bond required; or

state . [~~; or~~

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

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

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

organize or manage the payroll of the production and the company is the

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

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

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

that exemption from:

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

economic development; or

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

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

behalf of the county.

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

shall submit the request to the division of motion pictures in accordance

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

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

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

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

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

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

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

an additional period if the labor commissioner determines that the

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

the statutes and regulations of this state.]

Sec. 7. NRS 608.330 is hereby amended to read as follows:

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

608.300 to 608.330, inclusive [:

~~1. Is]~~ , is guilty of a misdemeanor . [~~; and~~

2. May be prohibited by the division of motion pictures of the

commission on economic development from proceeding with the

production until the division determines that he is in compliance with those

provisions.]

Sec. 8. Section 1 of Senate Bill No. 537 of this session is hereby

amended to read as follows:

Section 1. Chapter 360 of NRS is hereby amended by adding

thereto a new section to read as follows:

1. A person who intends to locate or expand a business in this

state may apply to the commission on economic development for a

partial abatement of one or more of the taxes imposed on the new or

expanded business pursuant to chapter 361, 364A or 374 of NRS.

2. The commission on economic development shall approve an

application for a partial abatement if the commission makes the

following determinations:

(a) The business is consistent with:

(1) The state plan for industrial development and

diversification that is developed by the commission pursuant to

NRS 231.067; and

(2) Any guidelines adopted pursuant to the state plan.

(b) The applicant has executed an agreement with the

commission which states that the business will, after the date on

which a certificate of eligibility for the abatement is issued pursuant

to subsection 5, continue in operation in this state for a period

specified by the commission, which must be at least 5 years, and

will continue to meet the eligibility requirements set forth in this

subsection. The agreement must bind the successors in interest of

the business for the specified period.

the applicant commits to obtain a valid business license and all

other permits required by the county, city or town in which the

business operates.

(d) Except as otherwise provided in NRS 361.0687, if the

business is a new business in a county or city whose population is

50,000 or more, the business meets at least two of the following

requirements:

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

the payroll of the business by the fourth quarter that it is in

operation.

(2) Establishing the business will require the business to make

a capital investment of at least $1,000,000 in this state.

(3) The average hourly wage that will be paid by the new

business to its employees in this state is at least 100 percent of the

average statewide hourly wage as established by the employment

security division of the department of employment, training and

rehabilitation on July 1 of each fiscal year and:

(I) The business will provide a health insurance plan for all

employees that includes an option for health insurance coverage for

dependents of the employees; and
(II) The cost to the business for the benefits the business

provides to its employees in this state will meet the minimum

requirements for benefits established by the commission by

regulation pursuant to subsection 9.

(e) Except as otherwise provided in NRS 361.0687, if the

business is a new business in a county or city whose population is

less than 50,000, the business meets at least two of the following

requirements:

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

the payroll of the business by the fourth quarter that it is in

operation.

(2) Establishing the business will require the business to make

a capital investment of at least $250,000 in this state.

(3) The average hourly wage that will be paid by the new

business to its employees in this state is at least 100 percent of the

average statewide hourly wage as established by the employment

security division of the department of employment, training and

rehabilitation on July 1 of each fiscal year and:

(I) The business will provide a health insurance plan for all

employees that includes an option for health insurance coverage for

dependents of the employees; and

(II) The cost to the business for the benefits the business

provides to its employees in this state will meet the minimum

requirements for benefits established by the commission by

regulation pursuant to subsection 9.

(f) If the business is an existing business, the business meets at

least two of the following requirements:

(1) The business will increase the number of employees on its

payroll by 10 percent more than it employed in the immediately

preceding fiscal year or by six employees, whichever is greater.

(2) The business will expand by making a capital investment

in this state in an amount equal to at least 20 percent of the value of

the tangible property possessed by the business in the immediately

preceding fiscal year. The determination of the value of the tangible

property possessed by the business in the immediately preceding

fiscal year must be made by the:

(I) County assessor of the county in which the business will

expand, if the business is locally assessed; or

(II) Department, if the business is centrally assessed.

(3) The average hourly wage that will be paid by the existing

business to its new employees in this state is at least 100 percent of

the average statewide hourly wage as established by the

employment security division of the department of employment,

training and rehabilitation on July 1 of each fiscal year and:
(I) The business will provide a health insurance plan for all

new employees that includes an option for health insurance

coverage for dependents of the employees; and

(II) The cost to the business for the benefits the business

provides to its new employees in this state will meet the minimum

requirements for benefits established by the commission by

regulation pursuant to subsection 9.

3. Notwithstanding the provisions of subsection 2, the

commission on economic development may:

(a) Approve an application for a partial abatement by a business

that does not meet the requirements set forth in paragraph (d), (e) or

(f) of subsection 2;

(b) Make the requirements set forth in paragraph (d), (e) or (f) of

subsection 2 more stringent; or

qualify for a partial abatement,

if the commission determines that such action is necessary.

4. If a person submits an application to the commission on

economic development pursuant to subsection 1, the commission

shall provide notice to the governing body of the county and the city

or town, if any, in which the person intends to locate or expand a

business. The notice required pursuant to this subsection must set

forth the date, time and location of the hearing at which the

commission will consider the application.

5. If the commission on economic development approves an

application for a partial abatement, the commission shall

immediately forward a certificate of eligibility for the abatement to:

(a) The department;

(b) The Nevada tax commission; and

pursuant to chapter 361 of NRS, the county treasurer.

6. An applicant for a partial abatement pursuant to this section

or an existing business whose partial abatement is in effect shall,

upon the request of the executive director of the commission on

economic development, furnish the executive director with copies

of all records necessary to verify that the applicant meets the

requirements of subsection 2.

7. If a business whose partial abatement has been approved

pursuant to this section and is in effect ceases:

(a) To meet the requirements set forth in subsection 2; or

(b) Operation before the time specified in the agreement

described in paragraph (b) of subsection 2,

the business shall repay to the department or, if the partial

abatement was from the property tax imposed pursuant to chapter

361 of NRS, to the county treasurer, the amount of the exemption

that was allowed pursuant to this section before the failure of the
business to comply unless the Nevada tax commission determines

that the business has substantially complied with the requirements

of this section. [~~The business is also required to]~~ Except as

otherwise provided in NRS 360.320 and section 2 of Senate Bill

No. 362 of this session, the business shall, in addition to the

amount of the exemption required to be paid pursuant to this

subsection, pay interest on the amount due at the rate most recently

established pursuant to NRS 99.040 for each month, or portion

thereof, from the last day of the month following the period for

which the payment would have been made had the partial abatement

not been approved until the date of payment of the tax.

8. A county treasurer:

(a) Shall deposit any money that he receives pursuant to

subsection 7 in one or more of the funds established by a local

government of the county pursuant to NRS 354.611, 354.6113 or

354.6115; and

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

for the purposes authorized by NRS 354.611, 354.6113 and

354.6115.

9. The commission on economic development:

(a) Shall adopt regulations [~~regarding:]~~ relating to:

(1) The minimum level of benefits that a business must

provide to its employees if the business is going to use benefits paid

to employees as a basis to qualify for a partial abatement; and

(2) The notice that must be provided pursuant to subsection 4.

(b) May adopt such other regulations as the commission on

economic development determines to be necessary to carry out the

provisions of this section.

10. The Nevada tax commission:

(a) Shall adopt regulations regarding:

(1) The capital investment that a new business must make to

meet the requirement set forth in paragraph (d) or (e) of subsection

2; and

(2) Any security that a business is required to post to qualify

for a partial abatement pursuant to this section.

(b) May adopt such other regulations as the Nevada tax

commission determines to be necessary to carry out the provisions

of this section.

11. An applicant for an abatement who is aggrieved by a final

decision of the commission on economic development may petition

for judicial review in the manner provided in chapter 233B of NRS.

Sec. 9. 1. NRS 364A.153 and 608.325 are hereby repealed.

2. Sections 12, 20 and 39 of Senate Bill No. 362 of this session are

hereby repealed.

Sec. 10. 1. This section and subsection 2 of section 9 of this act

become effective upon passage and approval.

2. Section 8 of this act becomes effective on July 1, 1999.

3. Sections 1 to 7, inclusive, and subsection 1 of section 9 of this act

become effective on October 1, 1999.