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

1-9 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 3 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 3

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 a local government that is:

2-40 (a) Created by another local government, it must be disincorporated

2-41 or dissolved:

2-42 (1) Pursuant to the applicable provisions of law; or

3-1 (2) If there are no specific provisions of law providing for the

3-2 disincorporation or dissolution of the local government, by the entity that

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

3-4 dissolution of the local government pursuant to this paragraph, there are

3-5 any outstanding loans or bonded indebtedness of the local government,

3-6 including, without limitation, loans made to the local government by the

3-7 county in which the local government is located, the taxes for the

3-8 payment of the bonds or other indebtedness must continue to be levied

3-9 and collected in the same manner as if the local government had not

3-10 been disincorporated or dissolved until all outstanding indebtedness is

3-11 repaid, but for all other purposes the local government shall be deemed

3-12 disincorporated or dissolved at the time that the entity which created the

3-13 local government disincorporates or dissolves the local government. Any

3-14 other liabilities and any remaining assets shall revert to the entity that

3-15 created the local government which is being disincorporated or dissolved.

3-16 (b) Created by a special or local act of the legislature, it may only be

3-17 disincorporated or dissolved by the legislature. The executive director

3-18 shall submit notification of the vote approving the disincorporation or

3-19 dissolution of the local government to the director of the legislative

3-20 counsel bureau for transmittal to the legislature. At the first opportunity,

3-21 the legislature shall consider the question of whether the special or local

3-22 act will be repealed.

3-23 (c) Created in any other manner, it must be disincorporated or

3-24 dissolved:

3-25 (1) Pursuant to the applicable provisions of law; or

3-26 (2) If there are no specific provisions of law providing for the

3-27 disincorporation or dissolution of the local government, by the governing

3-28 body of that local government. If, at the time of the disincorporation or

3-29 dissolution of the local government pursuant to this paragraph, there are

3-30 any outstanding loans or bonded indebtedness of the local government,

3-31 including, without limitation, loans made to the local government by the

3-32 county or counties in which the local government is located, the taxes for

3-33 the payment of the bonds or other indebtedness must continue to be

3-34 levied and collected in the same manner as if the local government had

3-35 not been disincorporated or dissolved until all outstanding indebtedness

3-36 is repaid, but for all other purposes the local government shall be deemed

3-37 disincorporated or dissolved at the time that the governing body of the

3-38 local government disincorporates or dissolves the local government.

3-39 Except as otherwise provided in this subparagraph, any other liabilities

3-40 and any remaining assets of the local government shall revert to the

3-41 board of county commissioners of the county in which the local

3-42 government is located. If the local government is located in more than

3-43 one county, the governing body of the local government shall apportion

4-1 the remaining liabilities and assets among the boards of county

4-2 commissioners of the counties in which the local government is located.

4-3 6. Within 10 days after the Nevada tax commission makes a

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

4-5 notify:

4-6 (a) The city clerk, if the local government is a city; or

4-7 (b) The county clerk in all other cases,

4-8 and provide the clerk with the amount any tax or mandatory assessment

4-9 levied by the local government must be raised and a description of the

4-10 manner in which the services provided by the local government must be

4-11 limited to ensure a balanced budget for the local government.

4-12 7. After the executive director notifies the city clerk or the county

4-13 clerk, as applicable, pursuant to subsection 6, the clerk shall cause to be

4-14 published in a newspaper of general circulation that is printed in the

4-15 local government a notice of the election once in each calendar week for

4-16 2 successive calendar weeks by two weekly insertions a week apart, the

4-17 first publication to be not more than 30 days nor less than 22 days next

4-18 preceding the date of the election. If no newspaper is printed in the local

4-19 government, publication of the notice of election must be made in a

4-20 newspaper printed in this state and having a general circulation in the

4-21 local government.

4-22 8. The notice required pursuant to subsection 7 must contain the

4-23 following information:

4-24 (a) That the Nevada tax commission has determined that the severe

4-25 financial emergency which exists in the local government is unlikely to

4-26 cease to exist within 3 years;

4-27 (b) That the question of whether the local government should be

4-28 disincorporated or dissolved will be submitted to the electors of the local

4-29 government at the next primary or general municipal election or the next

4-30 primary or general state election, as applicable; and

4-31 (c) That if the electors do not approve the disincorporation or

4-32 dissolution:

4-33 (1) The maximum ad valorem tax levied within the local

4-34 government, if any, will be raised to $5 on each $100 of assessed

4-35 valuation;

4-36 (2) Any taxes or mandatory assessment levied in the local

4-37 government will be raised to ensure a balanced budget for the local

4-38 government and the amount by which those taxes or mandatory

4-39 assessments will be raised; and

4-40 (3) The services the local government provides will be limited to

4-41 ensure a balanced budget for the local government and the manner in

4-42 which those services will be limited.

5-1 9. If any provisions providing generally for the disincorporation or

5-2 dissolution of the local government require that the question of

5-3 disincorporating or dissolving be published or submitted to a vote of the

5-4 electors of the local government, the publication required by subsection 3

5-5 and the election required by subsection 4 satisfy those requirements. If:

5-6 (a) There is any other conflict between the provisions of this section

5-7 and any provisions providing generally for the disincorporation or

5-8 dissolution of a local government; or

5-9 (b) The provisions providing generally for the disincorporation or

5-10 dissolution of a local government provide additional rights to protest the

5-11 disincorporation or dissolution of a local government not provided by

5-12 this section,

5-13 the provisions of this section control a disincorporation or dissolution

5-14 pursuant to this section and any person wishing to protest such a

5-15 disincorporation or dissolution must proceed in accordance with the

5-16 provisions of this section.

5-17 10. As used in this section, "local government" does not include a

5-18 county, a school district or any agency or department of a county or city

5-19 which prepares a budget separate from that of the parent political

5-20 subdivision.

5-21 Sec. 3. The management of the department ceases at the time of the

5-22 disincorporation or dissolution of a local government pursuant to section

5-23 2 of this act.

5-24 Sec. 4. NRS 354.59811 is hereby amended to read as follows:

5-25 354.59811 Except as otherwise provided in NRS 350.087, 354.59813,

5-43 minerals, assessed valuation attributable to a redevelopment area and

6-1 assessed valuation of a fire protection district attributable to real property

6-2 which is transferred from private ownership to public ownership for the

6-3 purpose of conservation, it will produce 106 percent of the maximum

6-4 revenue allowable from taxes ad valorem for the preceding fiscal year,

6-5 except that the rate so determined must not be less than the rate allowed for

6-6 the previous fiscal year, except for any decrease attributable to the

6-7 imposition of a tax pursuant to NRS 354.59813 in the previous year.

6-8 2. This rate must then be applied to the total assessed valuation,

6-9 excluding the assessed valuation attributable to the net proceeds of minerals

6-10 and the assessed valuation of a fire protection district attributable to real

6-11 property which is transferred from private ownership to public ownership

6-12 for the purpose of conservation but including new real property, possessory

6-13 interests and mobile homes, for the current fiscal year to determine the

6-14 allowed revenue from taxes ad valorem for the local government.

6-15 Sec. 5. NRS 354.655 is hereby amended to read as follows:

6-16 354.655 As used in NRS 354.655 to 354.725, inclusive, and sections 2

6-25 have the meanings ascribed to them in that act.

6-26 Sec. 6. NRS 354.695 is hereby amended to read as follows:

6-27 354.695 1. As soon as practicable after taking over the management

6-42 considering the recommendations of the financial manager;

7-1 (f) Negotiate and approve all contracts entered into by or on behalf of

7-2 the local government before execution and enter into such contracts on

7-3 behalf of the local government as the department deems necessary;

7-4 (g) Negotiate and approve all collective bargaining contracts to be

7-5 entered into by the local government, except issues submitted to a

7-6 factfinder whose findings and recommendations are final and binding

7-7 pursuant to the provisions of the Local Government Employee-

7-8 Management Relations Act;

7-9 (h) Approve all expenditures of money from any fund or account and all

7-10 transfers of money from one fund to another;

7-11 (i) Employ such technicians as are necessary for the improvement of the

7-12 financial condition of the local government;

7-13 (j) Meet with the creditors of the local government and formulate a debt

7-14 liquidation program;

7-15 (k) Approve the issuance of bonds or other forms of indebtedness by the

7-16 local government;

7-17 (l) Discharge any of the outstanding debts and obligations of the local

7-18 government; and

7-19 (m) Take any other actions necessary to ensure that the local

7-20 government provides the basic services for which it was created in the most

7-21 economical and efficient manner possible.

7-22 2. The department may provide for reimbursement from the local

7-23 government for the expenses it incurs in managing the local government. If

7-24 such reimbursement is not possible, the department may request an

7-25 allocation by the interim finance committee from the contingency fund

7-26 pursuant to NRS 353.266, 353.268 and 353.269.

7-27 3. The governing body of a local government which is being managed

7-28 by the department pursuant to this section may make recommendations to

7-29 the department or the financial manager concerning the management of the

7-30 local government.

7-31 4. Each state agency, board, department, commission, committee or

7-32 other entity of the state shall provide such technical assistance concerning

7-33 the management of the local government as is requested by the department.

7-34 5. The department may delegate any of the powers and duties imposed

7-35 by this section to the financial manager appointed pursuant to paragraph (b)

7-36 of subsection 1.

7-37 6. Except as otherwise provided in section 1 of [this act,] Assembly

7-38 Bill No. 275 of this session and section 2 of this act, once the department

7-39 has taken over the management of a local government pursuant to the

7-40 provisions of subsection 1, that management may only be terminated

7-41 pursuant to NRS 354.725.

8-1 Sec. 7. NRS 361.453 is hereby amended to read as follows:

8-2 361.453 Except as otherwise provided in NRS 354.705 , [and] section

8-7 directed by law to fix a lesser or greater amount for that fiscal year.

8-8 Sec. 8. This act becomes effective on July 1, 1999.