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 271 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 15, inclusive, of this act.

1-3 Sec. 2. "Activity" includes:

1-4 1. Promotion of public events that benefit businesses or real property

1-5 in the commercial improvement district.

1-6 2. Providing music in any public place within the district.

1-7 3. Promotion of tourism within the district.

1-8 4. Marketing and economic development, including the recruitment

1-9 and retention of retail business.

1-10 5. Providing services related to security, sanitation, the removal of

1-11 graffiti, the cleaning of streets and sidewalks and providing other

1-12 municipal services that are supplemental to those typically provided by

1-13 the municipality.

1-14 6. Any other activity that benefits businesses and real property

1-15 located in the district.

1-16 Sec. 3. "Association" means an association described in section 10

1-17 of this act.

1-18 Sec. 4. "Commercial improvement district" means a district created

1-19 by a governing body to provide activities or improvements or both.

2-1 Sec. 5. "Plan" means a plan for management of a district.

2-2 Sec. 6. 1. A municipality may create one or more commercial

2-3 improvement districts pursuant to sections 2 to 15, inclusive, of this act.

2-4 The boundaries of a proposed commercial improvement district may not

2-5 overlap the boundaries of an existing commercial improvement district,

2-6 but this section does not prohibit the boundaries of a commercial

2-7 improvement district from overlapping the boundaries of other

2-8 assessment districts established pursuant to this chapter or taxing

2-9 districts established pursuant to other provisions of law.

2-10 2. Creation of a commercial improvement district may be initiated by

2-11 filing with the clerk a plan and petition signed by owners of tracts

2-12 constituting at least one-half of the basis used for the computation of

2-13 assessments as set forth in the plan. For the purposes of this subsection,

2-14 the property of a single owner may not be counted as constituting more

2-15 than 10 percent of the basis.

2-16 Sec. 7. 1. The governing board, or the petitioners, shall prepare

2-17 and file with the clerk a plan which contains:

2-18 (a) The improvements or activities, or both, proposed for each year of

2-19 the first 5 fiscal years of operation of the commercial improvement

2-20 district.

2-21 (b) The total amount proposed to be expended for improvements or

2-22 activities, or both, for each fiscal year of the first year of operation of the

2-23 district. If the district continues to operate, the association shall submit a

2-24 new budget every 5 years thereafter for approval by the governing body.

2-25 (c) A list of any other special assessments that are currently being

2-26 levied within the proposed district.

2-27 (d) The name of any proposed association.

2-28 (e) Any other matter that the governing body requires to be set forth in

2-29 the plan.

2-30 2. Copies of the plan must be made available at the office of the city

2-31 clerk for any interested person who requests a copy.

2-32 Sec. 8. 1. Except as otherwise provided in subsection 2, if the

2-33 governing body finds that the public interest will benefit by the provision

2-34 of the proposed activities or improvements in a definable district within

2-35 the municipality, it shall cause an ordinance to be drafted that:

2-36 (a) Establishes the district as specified in the plan or a revision of the

2-37 plan; and

2-38 (b) Defines the district by the boundaries proposed or enlarges or

2-39 reduces its proposed territory. If the district is enlarged or reduced, the

2-40 new boundaries must be defined in the same manner as is required for

2-41 the plan.

2-42 2. If written remonstrances by the owners of tracts constituting one-

2-43 third or more of the basis used for the computation of assessments are

3-1 presented to the governing body, it shall not proceed with the plan. For

3-2 the purposes of this subsection, the property of a single owner may not be

3-3 counted as constituting more than 10 percent of the basis.

3-4 Sec. 9. 1. On or before June 30 of each year after the creation of a

3-5 commercial improvement district, the governing body shall prepare and

3-6 approve an estimate of the cost required during the next fiscal year and a

3-7 proposed assessment roll assessing an amount not greater than the

3-8 estimated cost against the benefited property. The assessments must be

3-9 computed according to frontage or another uniform and quantifiable

3-10 basis.

3-11 2. The governing body shall hold a public hearing upon the estimate

3-12 of cost and the assessment roll. Notice must be given, and the hearing

3-13 conducted, in the manner provided in NRS 271.380 and 271.385. The

3-14 assessment may not exceed the amount stated in the proposed assessment

3-15 roll unless a new hearing is held, after published and mailed notice, in

3-16 the manner provided in NRS 271.305 and 271.310.

3-17 3. After the public hearing, the governing body shall confirm the

3-18 assessments, as specified in the proposed assessment roll or as modified.

3-19 4. A commercial improvement district is not entitled to any

3-20 distribution from the consolidated tax distribution account.

3-21 Sec. 10. 1. A municipality that has created a commercial

3-22 improvement district may contract with a nonprofit association to provide

3-23 the activities or improvements, or both, that are specified in the plan. If

3-24 creation of the commercial improvement district was initiated by petition,

3-25 the municipality shall contract for that purpose with the association

3-26 named in the plan.

3-27 2. The particular association with which a municipality contracts

3-28 pursuant to subsection 1 must be a private nonprofit corporation and

3-29 must be identified in the plan. The association shall maintain liability

3-30 insurance covering its activities.

3-31 3. The contract between the municipality and the association is a

3-32 contract for professional services and is not subject to the limitations of

3-33 subsection 1 of NRS 354.626. The terms of the contract may extend:

3-34 (a) Beyond the terms of office of members of the governing body; and

3-35 (b) For the time necessary to cover the life of improvements and to

3-36 fulfill financial commitments for equipment, services and related

3-37 undertakings.

3-38 4. The association does not become a political subdivision, local

3-39 government, public body, governmental agency or entity, establishment

3-40 of the government, public corporation or quasi-public corporation for

3-41 any purpose solely on the basis of a contract entered into with a

3-42 municipality pursuant to subsection 1.

4-1 5. A contract executed pursuant to this section must ensure that the

4-2 type and level of services provided by the municipality at the time of the

4-3 creation of the district continue after the district is formed.

4-4 Sec. 11. 1. A contract executed pursuant to section 10 of this act

4-5 must specify the approvals required for expenditures and provide for

4-6 internal controls adequate to protect the assets of the commercial

4-7 improvement district. The contract must provide for audit of the

4-8 association by the municipality at the discretion of the municipality.

4-9 2. If an audit finds a misuse of money or any fraud in the activities

4-10 of the association, the municipality may take control of any assets of the

4-11 association related to the commercial improvement district.

4-12 Sec. 12. A commercial improvement district may acquire, equip,

4-13 improve, operate and maintain:

4-14 1. Public restrooms.

4-15 2. Facilities for outdoor lighting and heating.

4-16 3. Decorations.

4-17 4. Fountains.

4-18 5. Landscaping.

4-19 6. Facilities or equipment, or both, to enhance protection of persons

4-20 and property within the district.

4-21 7. Ramps, sidewalks and plazas.

4-22 8. Rehabilitation or removal of existing structures.

4-23 Sec. 13. An association with which a city contracts pursuant to

4-24 section 10 of this act may, at any time, request that the governing body

4-25 modify a plan. Upon the written request of the association, the governing

4-26 body may modify the plan by ordinance after holding hearings on the

4-27 proposed modification pursuant to the requirements set forth in section 9

4-28 of this act. A petition is not required for a modification made pursuant to

4-29 this section.

4-30 Sec. 14. 1. The governing body may, by resolution, dissolve a

4-31 commercial improvement district if property owners whose property is

4-32 assessed for a combined total of more than 50 percent of the total

4-33 amount of the assessments of all the property in the district submit a

4-34 written petition to the governing body that requests the dissolution of the

4-35 district within the period prescribed in subsection 2.

4-36 2. The dissolution of a district may be requested within 30 days after:

4-37 (a) The first anniversary of the date the district was created; and

4-38 (b) Each subsequent anniversary thereafter.

4-39 3. As soon as practicable after the receipt of the written petition of

4-40 the property owners submitted pursuant to subsection 1, the governing

4-41 body shall pass a resolution of intention to dissolve the district. The

4-42 governing body shall give notice of a hearing on the dissolution. The

4-43 notice must be provided and the hearing must be held pursuant to the

5-1 requirements set forth in section 9 of this act. If the governing body

5-2 determines that dissolution of the district is appropriate, it shall dissolve

5-3 the district by resolution, effective not earlier than the 30th day after the

5-4 hearing.

5-5 4. If there is indebtedness, outstanding and unpaid, incurred to

5-6 accomplish any of the purposes of the district, the portion of the

5-7 assessment necessary to pay the indebtedness remains effective and must

5-8 be continued in the following years until the debt is paid.

5-9 Sec. 15. 1. The association with which a city contracts pursuant to

5-10 section 10 of this act shall cause to be prepared a report for each fiscal

5-11 year in which assessments are to be levied and collected.

5-12 2. The report prepared pursuant to subsection 1 must be filed with

5-13 the city clerk on or before February 1 of the fiscal year immediately

5-14 preceding the fiscal year to which the report applies and must include:

5-15 (a) The name of the district;

5-16 (b) The fiscal year to which the report applies;

5-17 (c) Any proposed changes to the boundaries of the district for that

5-18 fiscal year;

5-19 (d) The improvements and activities to be provided for that fiscal year;

5-20 (e) An estimate of the cost of providing the improvements and

5-21 activities set forth pursuant to paragraph (d);

5-22 (f) The method and basis of levying each assessment to be levied for

5-23 that fiscal year in sufficient detail to allow each property owner to

5-24 calculate the amount of the assessment to be levied against his property

5-25 for that fiscal year;

5-26 (g) The amount of any surplus or deficit revenues to be carried over

5-27 from a preceding fiscal year; and

5-28 (h) The amount of any money received by the district from sources

5-29 other than assessments levied pursuant to sections 2 to 15, inclusive, of

5-30 this act.

5-31 Sec. 16. NRS 271.030 is hereby amended to read as follows:

5-32 271.030 Except where the context otherwise requires, the definitions in

5-33 NRS 271.035 to 271.250, inclusive, and sections 2 to 5, inclusive, of this

5-34 act govern the construction of this chapter.