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. Chapter 354 of NRS is hereby amended by adding thereto a

1-8 government; and

2-1 (b) The manner in which the services provided by the local

2-2 government must be limited to ensure a balanced budget for the local

2-3 government,

2-4 and submit his findings to the committee.

2-5 2. The committee shall review the findings submitted by the executive

2-6 director pursuant to subsection 1. If the committee determines that the

2-7 severe financial emergency which exists in the local government is

2-8 unlikely to cease to exist within 5 years and that the findings made by the

2-9 executive director are appropriate, the committee shall submit its

2-10 recommendation to the Nevada tax commission. If the committee

2-11 determines that the financial emergency is likely to cease to exist within 5

2-12 years, that decision is not subject to review by the Nevada tax

2-13 commission.

2-14 3. The Nevada tax commission shall schedule a public hearing

2-15 within 30 days after the committee submits its recommendation. The

2-16 Nevada tax commission shall provide public notice of the hearing at least

2-17 10 days before the date on which the hearing will be held. The executive

2-18 director shall provide copies of all documents relevant to the

2-19 recommendation of the committee to the governing body of the local

2-20 government in severe financial emergency.

2-21 4. If, after the public hearing, the Nevada tax commission

2-22 determines that the recommendation of the committee is appropriate, a

2-23 question must be submitted to the electors of the local government at the

2-24 next primary or general municipal election or primary or general state

2-25 election, as applicable, asking whether the local government should be

2-26 disincorporated or dissolved. If the electors of the local government do

2-27 not approve the disincorporation or dissolution of the local government:

2-28 (a) The maximum ad valorem tax levied within the local government,

2-29 if any, must be raised to $5 on each $100 of assessed valuation;

2-30 (b) Any other taxes or mandatory assessments levied in the local

2-31 government, notwithstanding any limitation on those taxes or

2-32 assessments provided by statute, must be raised in an amount the Nevada

2-33 tax commission determines is necessary to ensure a balanced budget for

2-34 the local government; and

2-35 (c) The services provided by the local government must be limited in a

2-36 manner the Nevada tax commission determines is necessary to ensure a

2-37 balanced budget for the local government.

2-38 5. If the electors of the local government approve the

2-39 disincorporation or dissolution of the local government, the local

2-40 government must be disincorporated or dissolved:

2-41 (a) Pursuant to the applicable provisions of law; or

2-42 (b) If there is no specific provision of law providing for the

2-43 disincorporation or dissolution of the local government, by the entity that

3-1 created the local government. If, at the time of the disincorporation or

3-2 dissolution of the local government pursuant to this paragraph, there are

3-3 any outstanding loans or bonded indebtedness of the local government,

3-4 including, without limitation, loans made to the local government by the

3-5 county in which the local government is located, the taxes for the

3-6 payment of the bonds or other indebtedness must continue to be levied

3-7 and collected in the same manner as if the local government had not

3-8 been disincorporated or dissolved until all outstanding indebtedness is

3-9 repaid, but for all other purposes the local government shall be deemed

3-10 disincorporated or dissolved at the time that the entity which created the

3-11 local government disincorporates or dissolves the local government.

3-12 6. Within 10 days after the Nevada tax commission makes a

3-13 determination pursuant to subsection 4, the executive director shall

3-14 notify:

3-15 (a) The city clerk, if the local government is a city; or

3-16 (b) The county clerk in all other cases,

3-17 and provide the clerk with the amount any tax or mandatory assessment

3-18 levied by the local government must be raised and a description of the

3-19 manner in which the services provided by the local government must be

3-20 limited to ensure a balanced budget for the local government.

3-21 7. After the executive director notifies the city clerk or the county

3-22 clerk, as applicable, pursuant to subsection 6, the clerk shall cause to be

3-23 published in a newspaper of general circulation that is printed in the

3-24 local government a notice of the election once in each calendar week for

3-25 2 successive calendar weeks by two weekly insertions a week apart, the

3-26 first publication to be not more than 30 days nor less than 22 days next

3-27 preceding the date of the election. If no newspaper is printed in the local

3-28 government, publication of the notice of election must be made in a

3-29 newspaper printed in this state and having a general circulation in the

3-30 local government.

3-31 8. The notice required pursuant to subsection 7 must contain the

3-32 following information:

3-33 (a) That the Nevada tax commission has determined that the severe

3-34 financial emergency which exists in the local government is unlikely to

3-35 cease to exist within 5 years;

3-36 (b) That the question of whether the local government should be

3-37 disincorporated or dissolved will be submitted to the electors of the local

3-38 government at the next primary or general municipal election or the next

3-39 primary or general state election, as applicable; and

3-40 (c) That if the electors do not approve the disincorporation or

3-41 dissolution:

4-1 (1) The maximum ad valorem tax levied within the local

4-2 government, if any, will be raised to $5 on each $100 of assessed

4-3 valuation;

4-4 (2) Any taxes or mandatory assessment levied in the local

4-5 government will be raised to ensure a balanced budget for the local

4-6 government and the amount by which those taxes or mandatory

4-7 assessments will be raised; and

4-8 (3) The services the local government provides will be limited to

4-9 ensure a balanced budget for the local government and the manner in

4-10 which those services will be limited.

4-11 9. As used in this section, "local government" does not include a

4-12 county, a school district or any agency or department of a county or city

4-13 which prepares a budget separate from that of the parent political

4-14 subdivision.

4-15 Sec. 2. NRS 354.655 is hereby amended to read as follows:

4-16 354.655 As used in NRS 354.655 to 354.725, inclusive, and section 1

4-25 have the meanings ascribed to them in that act.

4-26 Sec. 3. This act becomes effective on July 1, 1999.