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 268 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 23, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 23, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 to

1-5 9, inclusive, of this act have the meanings ascribed to them in those

1-6 sections.

1-7 Sec. 3. "Activity" includes:

1-8 1. Promotion of public events that benefit businesses or real property

1-9 in the district.

1-10 2. Providing music in any public place within the district.

1-11 3. Promotion of tourism within the district.

1-12 4. Marketing and economic development, including the recruitment

1-13 and retention of retail business.

1-14 5. Providing services related to security, sanitation, the removal of

1-15 graffiti, the cleaning of streets and sidewalks and providing other

1-16 municipal services that are supplemental to those typically provided by

1-17 the city.

2-1 6. Any other activity that benefits businesses and real property

2-2 located in the district.

2-3 Sec. 4. "Association" means an association described in section 16

2-4 of this act.

2-5 Sec. 5. "District" means a district created to provide activities or

2-6 improvements, or both.

2-7 Sec. 6. "Governing body" means the city council or other governing

2-8 body of a city.

2-9 Sec. 7. "Improvement" means the acquisition, construction,

2-10 installation or maintenance of tangible property whose estimated useful

2-11 life is at least 5 years, including, without limitation:

2-12 1. Parking.

2-13 2. Benches, booths, kiosks, pedestrian shelters and signs.

2-14 3. Receptacles for trash.

2-15 4. Public restrooms.

2-16 5. Facilities for outdoor lighting and heating.

2-17 6. Decorations.

2-18 7. Parks.

2-19 8. Fountains.

2-20 9. Landscaping.

2-21 10. Closing, opening, widening or narrowing of existing streets.

2-22 11. Facilities or equipment, or both, to enhance protection of persons

2-23 and property within the district.

2-24 12. Ramps, sidewalks and plazas.

2-25 13. Rehabilitation or removal of existing structures.

2-26 Sec. 8. "Plan" means a plan for management of a district.

2-27 Sec. 9. "Property owner" means a person shown on the most recent

2-28 equalized assessment roll as, or otherwise known by the governing body

2-29 to be, the owner of land within the district.

2-30 Sec. 10. 1. A city located in a county whose population is less than

2-31 400,000 may create one or more districts pursuant to sections 2 to 23,

2-32 inclusive, of this act. The boundaries of a proposed district must not

2-33 overlap the boundaries of an existing district created pursuant to sections

2-34 2 to 23, inclusive, of this act. This section does not prohibit the

2-35 boundaries of a district from overlapping the boundaries of other

2-36 assessment districts or taxing districts established pursuant to other

2-37 provisions of law.

2-38 2. Creation of a district must be initiated by the filing with the city

2-39 clerk of a plan and a petition signed by property owners whose property

2-40 will be assessed, as set forth in the plan, for a combined total of at least

2-41 50 percent of the total amount of the proposed assessments of all the

2-42 property in the district. A signer need not be a resident of this state. The

3-1 signature of a corporation may be affixed by an authorized officer of the

3-2 corporation.

3-3 Sec. 11. 1. The plan filed pursuant to section 10 of this act must

3-4 contain:

3-5 (a) A list of the benefiting properties located within the proposed

3-6 district that includes the parcel number of the properties.

3-7 (b) The name of the proposed district.

3-8 (c) A description of the boundaries of the benefiting properties located

3-9 within the proposed district that is sufficient to identify the lands included

3-10 in the district.

3-11 (d) The improvements or activities, or both, proposed for each year of

3-12 the first 5 fiscal years of operation of the district.

3-13 (e) The total amount proposed to be expended for improvements or

3-14 activities, or both, for each fiscal year of the first 5 years of operation of

3-15 the district. If the district continues to operate, the association shall

3-16 submit a new budget every 5 years thereafter for approval by the

3-17 governing body.

3-18 (f) The proposed source or sources of financing, including the

3-19 proposed method and basis of levying the assessments in sufficient detail

3-20 to enable each property owner to calculate the amount of the assessment

3-21 to be levied against his property. The plan may allow for increases in

3-22 assessments, not to exceed a specific amount or proportion, for each

3-23 fiscal year of operation of the district.

3-24 (g) The time and manner of collecting the assessments.

3-25 (h) The specified number of years, not to exceed 30 years, for which

3-26 assessments will be levied.

3-27 (i) Any regulations proposed to be applicable to the district.

3-28 (j) A list of the properties to be assessed, and a statement of the

3-29 method or methods by which the expenses of a district will be imposed

3-30 upon those properties.

3-31 (k) The name of the association.

3-32 (l) Any other matter that the governing body requires to be set forth in

3-33 the plan.

3-34 2. Copies of the plan must be made available at the office of the city

3-35 clerk for any interested person who requests a copy.

3-36 Sec. 12. 1. The city attorney shall examine any petition filed

3-37 pursuant to section 10 of this act. If the city attorney determines that the

3-38 petition is sufficient in form and number of signatures, the district may

3-39 be created if the conditions required by sections 2 to 23, inclusive, of this

3-40 act are satisfied.

3-41 2. The governing body shall hold a public hearing on the petition. At

3-42 least 20 days before the public hearing, the governing body shall:

4-1 (a) Mail notice of the hearing to each property owner within the

4-2 proposed district; and

4-3 (b) Publish notice of the hearing in a newspaper of general

4-4 circulation in the city,

4-5 describing the purpose and general location of the proposed district and

4-6 the date, time and place of the public hearing.

4-7 3. At the public hearing, any property owner or person who resides

4-8 within the proposed district may present, orally or in writing, the reasons

4-9 why he believes that:

4-10 (a) The petition does not contain a sufficient number of qualified

4-11 signatures; or

4-12 (b) The finding required by subsection 4 cannot reasonably be made

4-13 with respect to any part of the proposed district.

4-14 4. After consideration of any objections made at the hearing and of

4-15 any other information reasonably known to it, the governing body must,

4-16 as a condition precedent to the creation of the proposed district, find that

4-17 the public interest will benefit by the provision of the proposed activities

4-18 or improvements within that part of the city. In making this

4-19 determination, the governing body shall consider the differences it finds

4-20 between the city as a whole and the territory within and adjacent to the

4-21 proposed district.

4-22 Sec. 13. If the governing body finds that the public interest will

4-23 benefit by the provision of the proposed activities or improvements in a

4-24 definable district within the city, it shall cause an ordinance to be drafted

4-25 that:

4-26 1. Establishes the district as specified in the plan or a revision of the

4-27 plan; and

4-28 2. Defines the district by the boundaries proposed or enlarges or

4-29 reduces its proposed territory. If the district is enlarged or reduced, the

4-30 new boundaries must be defined in the same manner as is required for

4-31 the plan.

4-32 Sec. 14. 1. The governing body shall hold a second public hearing

4-33 before the first reading of the ordinance drafted pursuant to section 13 of

4-34 this act. At least 20 days before the public hearing, the governing body

4-35 shall:

4-36 (a) Mail notice of the hearing to each property owner within the

4-37 proposed district; and

4-38 (b) Publish notice of the hearing in a newspaper of general

4-39 circulation in the city,

4-40 describing the purpose of the proposed district, the boundaries as

4-41 provided in the ordinance and the date, time and place of the public

4-42 hearing.

5-1 2. At the public hearing, a property owner within the proposed

5-2 district may present, orally or in writing, the reasons why he believes

5-3 that:

5-4 (a) Any specified territory should be excluded from the district or, if

5-5 the proposed district does not include the entire territory within which a

5-6 benefit would be derived from the proposed activities or improvements,

5-7 any specified territory should be included within the district; or

5-8 (b) The proposed activities or improvements should be changed in any

5-9 specified respect.

5-10 3. After consideration of any objections made at the public hearing

5-11 and of any other information reasonably known to it, the governing body

5-12 shall make any appropriate changes in the plan and the proposed

5-13 ordinance and may adopt the ordinance by an affirmative vote of a

5-14 majority of all the voting members of the governing body.

5-15 Sec. 15. 1. After the creation of a district, the governing body shall

5-16 annually ascertain and include in its budget the total amount of money to

5-17 be derived from assessments required to provide the activities or

5-18 improvements, or both, designated in the plan.

5-19 2. The total amount of money to be derived from assessments for the

5-20 next ensuing fiscal year must be apportioned among the individual

5-21 property owners in the district based upon the proportional assessed

5-22 value of their property.

5-23 3. The governing body shall hold a public hearing concerning the

5-24 assessments at the same time and place as the hearing on the budget for

5-25 the district. The governing body may levy the assessments after the

5-26 hearing. The assessments so levied must be collected at the same time

5-27 and in the same manner as provided for the collection of property taxes.

5-28 The assessments, with any interest and penalties, and the cost of

5-29 collecting an unpaid assessment, penalty or interest, are a lien on the

5-30 property until they are paid. The lien must be executed, and has the same

5-31 priority, as a lien for property taxes.

5-32 4. A district is not entitled to receive any distribution of supplemental

5-33 city-county relief tax.

5-34 Sec. 16. 1. A city that has created a district shall contract with a

5-35 nonprofit association to provide the activities or improvements, or both,

5-36 that are specified in the plan.

5-37 2. The particular association with which the city contracts pursuant

5-38 to subsection 1 must be a private nonprofit corporation and must be

5-39 identified in the plan.

5-40 3. The contract between the city and the association is a contract for

5-41 professional services and is not subject to the limitations of subsection 1

5-42 of NRS 354.626. The terms of such a contract may extend beyond the

5-43 terms of office of the members of the governing body.

6-1 4. The association does not become a political subdivision, local

6-2 government, public body, governmental agency or entity, establishment

6-3 of the government, public corporation or quasi-public corporation for

6-4 any purpose solely on the basis of a contract entered into with a city

6-5 pursuant to subsection 1.

6-6 5. A contract executed pursuant to this section must ensure that the

6-7 type and level of services provided by the city at the time of the creation

6-8 of the district continue after the district is formed.

6-9 Sec. 17. 1. A person who is subject to or has a legal interest in:

6-10 (a) An ordinance that creates a district;

6-11 (b) An ordinance that imposes an assessment for the operation of a

6-12 district; or

6-13 (c) A project that will be constructed with the proceeds from the

6-14 assessment,

6-15 may commence an appropriate proceeding in the district court of the

6-16 county in which the district is located to challenge the validity of the

6-17 ordinance, assessment or project. The proceeding may not be

6-18 commenced more than 30 days after the effective date of the ordinance.

6-19 2. The court shall affirm the ordinance, assessment or project unless

6-20 it determines that the approval of the ordinance, assessment or project

6-21 was the result of fraud or a gross abuse of discretion.

6-22 Sec. 18. A plan may establish one or more zones within a district

6-23 that are based upon the degree of benefit derived from the improvements

6-24 or activities to be provided within the zone and may impose a different

6-25 assessment for each zone.

6-26 Sec. 19. After the expiration of the period specified in the plan

6-27 pursuant to paragraph (h) of subsection 1 of section 11 of this act, the

6-28 governing body may create a new district pursuant to sections 2 to 23,

6-29 inclusive, of this act.

6-30 Sec. 20. If provided in a plan, a city may, in the manner prescribed

6-31 for issuing bonds in chapter 271 of NRS, issue bonds in an amount not

6-32 exceeding the total unpaid assessments levied to defray, wholly or in part,

6-33 the cost of the acquisition, improvement and maintenance of an

6-34 improvement. The provisions of NRS 271.495 and 271.500 do not apply

6-35 to bonds issued pursuant to this section.

6-36 Sec. 21. An association with which a city contracts pursuant to

6-37 section 16 of this act may, at any time, request that the governing body

6-38 modify a plan. Upon the written request of the association, the governing

6-39 body may modify the plan by ordinance after holding hearings on the

6-40 proposed modification pursuant to the requirements set forth in sections

6-41 12, 13 and 14 of this act. A petition is not required for a modification

6-42 made pursuant to this section.

7-1 Sec. 22. 1. The governing body may, by resolution, dissolve a

7-2 district if property owners whose property is assessed for a combined total

7-3 of more than 50 percent of the total amount of the assessments of all the

7-4 property in the district submit a written petition to the governing body

7-5 that requests the dissolution of the district within the period prescribed in

7-6 subsection 2.

7-7 2. The dissolution of a district may be requested within 30 days after:

7-8 (a) The first anniversary of the date the district was created; and

7-9 (b) Each subsequent anniversary thereafter.

7-10 3. As soon as practicable after the receipt of the written petition of

7-11 the property owners submitted pursuant to subsection 1, the governing

7-12 body shall pass a resolution of intention to dissolve the district. The

7-13 governing body shall give notice of a hearing on the dissolution. The

7-14 notice must be provided and the hearing must be held pursuant to the

7-15 requirements set forth in sections 12, 13 and 14 of this act.

7-16 4. If there is indebtedness, outstanding and unpaid, incurred to

7-17 accomplish any of the purposes of the district, the portion of the

7-18 assessment necessary to pay the indebtedness remains effective and must

7-19 be continued in the following years until the debt is paid.

7-20 Sec. 23. 1. The association with which a city contracts pursuant to

7-21 section 16 of this act shall cause to be prepared a report for each fiscal

7-22 year in which assessments are to be levied and collected.

7-23 2. The report prepared pursuant to subsection 1 must be filed with

7-24 the city clerk on or before June 15 of the fiscal year immediately

7-25 preceding the fiscal year to which the report applies and must include:

7-26 (a) The name of the district;

7-27 (b) The fiscal year to which the report applies;

7-28 (c) Any proposed changes to the boundaries of the district or any

7-29 zones created pursuant to section 18 of this act within the district for that

7-30 fiscal year;

7-31 (d) The improvements and activities to be provided for that fiscal year;

7-32 (e) An estimate of the cost of providing the improvements and

7-33 activities set forth pursuant to paragraph (d);

7-34 (f) The method and basis of levying each assessment to be levied for

7-35 that fiscal year in sufficient detail to allow each property owner to

7-36 calculate the amount of the assessment to be levied against his property

7-37 for that fiscal year;

7-38 (g) The amount of any surplus or deficit revenues to be carried over

7-39 from a preceding fiscal year; and

8-1 (h) The amount of any money received by the district from sources

8-2 other than assessments levied pursuant to sections 2 to 23, inclusive, of

8-3 this act.