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 body, or the petitioners, shall prepare and

2-17 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 the first year of operation of the district. If the

2-23 district continues to operate, the association shall submit a new budget

2-24 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 3, 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. At any time before the governing body adopts the ordinance

2-43 establishing the commercial improvement district, the owner of a tract

3-1 which is located within the boundaries of the proposed district and which

3-2 is used exclusively for residential purposes may file with the clerk a

3-3 written request that his property be excluded from the district. The

3-4 request must be accompanied by a legal description of the property. Upon

3-5 receipt of such a request, the clerk shall provide a copy of the request and

3-6 legal description of the property to the governing body. In adopting the

3-7 ordinance establishing the district, the governing body shall exclude all

3-8 tracts for which it received a request for exclusion pursuant to this

3-9 subsection and which it determines will not benefit from the activities or

3-10 improvements that are proposed to be provided in the district.

3-11 3. If written remonstrances by the owners of tracts constituting one-

3-12 third or more of the basis used for the computation of assessments are

3-13 presented to the governing body, it shall not proceed with the plan. For

3-14 the purposes of this subsection, the property of a single owner may not be

3-15 counted as constituting more than 10 percent of the basis.

3-16 Sec. 9. 1. On or before June 30 of each year after the creation of a

3-17 commercial improvement district, the governing body shall prepare and

3-18 approve an estimate of the cost required during the next fiscal year and a

3-19 proposed assessment roll assessing an amount not greater than the

3-20 estimated cost against the benefited property. The assessments must be

3-21 computed according to frontage or another uniform and quantifiable

3-22 basis.

3-23 2. The governing body shall hold a public hearing upon the estimate

3-24 of cost and the assessment roll. Notice must be given, and the hearing

3-25 conducted, in the manner provided in NRS 271.380 and 271.385. The

3-26 assessment may not exceed the amount stated in the proposed assessment

3-27 roll unless a new hearing is held, after published and mailed notice, in

3-28 the manner provided in NRS 271.305 and 271.310.

3-29 3. After the public hearing, the governing body shall confirm the

3-30 assessments, as specified in the proposed assessment roll or as modified.

3-31 4. A commercial improvement district is not entitled to any

3-32 distribution from the consolidated tax distribution account.

3-33 Sec. 10. 1. A municipality that has created a commercial

3-34 improvement district may contract with a nonprofit association to provide

3-35 the activities or improvements, or both, that are specified in the plan. If

3-36 creation of the commercial improvement district was initiated by petition,

3-37 the municipality shall contract for that purpose with the association

3-38 named in the plan.

3-39 2. The particular association with which a municipality contracts

3-40 pursuant to subsection 1 must be a private nonprofit corporation and

3-41 must be identified in the plan. The association shall maintain liability

3-42 insurance covering its activities.

4-1 3. The contract between the municipality and the association is a

4-2 contract for professional services and is not subject to the limitations of

4-3 subsection 1 of NRS 354.626. The terms of the contract may extend:

4-4 (a) Beyond the terms of office of members of the governing body; and

4-5 (b) For the time necessary to cover the life of improvements and to

4-6 fulfill financial commitments for equipment, services and related

4-7 undertakings.

4-8 4. The association does not become a political subdivision, local

4-9 government, public body, governmental agency or entity, establishment

4-10 of the government, public corporation or quasi-public corporation for

4-11 any purpose solely on the basis of a contract entered into with a

4-12 municipality pursuant to subsection 1.

4-13 5. A contract executed pursuant to this section must ensure that the

4-14 type and level of services provided by the municipality at the time of the

4-15 creation of the district continue after the district is formed.

4-16 Sec. 11. 1. A contract executed pursuant to section 10 of this act

4-17 must specify the approvals required for expenditures and provide for

4-18 internal controls adequate to protect the assets of the commercial

4-19 improvement district. The contract must provide for audit of the

4-20 association by the municipality at the discretion of the municipality.

4-21 2. If an audit finds a misuse of money or any fraud in the activities

4-22 of the association, the municipality may take control of any assets of the

4-23 association related to the commercial improvement district.

4-24 Sec. 12. A commercial improvement district may acquire, equip,

4-25 improve, operate and maintain:

4-26 1. Public restrooms.

4-27 2. Facilities for outdoor lighting and heating.

4-28 3. Decorations.

4-29 4. Fountains.

4-30 5. Landscaping.

4-31 6. Facilities or equipment, or both, to enhance protection of persons

4-32 and property within the district.

4-33 7. Ramps, sidewalks and plazas.

4-34 8. Rehabilitation or removal of existing structures.

4-35 Sec. 13. An association with which a city contracts pursuant to

4-36 section 10 of this act may, at any time, request that the governing body

4-37 modify a plan. Upon the written request of the association, the governing

4-38 body may modify the plan by ordinance after holding hearings on the

4-39 proposed modification pursuant to the requirements set forth in section 9

4-40 of this act. If the proposed modification of the district expands the

4-41 territory within the boundaries of the commercial improvement district,

4-42 the owner of a tract which is located within the territory proposed to be

4-43 added to the district and which is used exclusively for residential

5-1 purposes may request that his property be excluded in the manner set

5-2 forth in subsection 2 of section 8 of this act at any time before the

5-3 governing body modifies the plan by ordinance. In modifying the plan by

5-4 ordinance, the governing body shall exclude all tracts for which it

5-5 received a request for exclusion and which it determines will not benefit

5-6 from the activities or improvements provided in the district. A petition is

5-7 not required for a modification made pursuant to this section.

5-8 Sec. 14. 1. The governing body may, by resolution, dissolve a

5-9 commercial improvement district if property owners whose property is

5-10 assessed for a combined total of more than 50 percent of the total

5-11 amount of the assessments of all the property in the district submit a

5-12 written petition to the governing body that requests the dissolution of the

5-13 district within the period prescribed in subsection 2.

5-14 2. The dissolution of a district may be requested within 30 days after:

5-15 (a) The first anniversary of the date the district was created; and

5-16 (b) Each subsequent anniversary thereafter.

5-17 3. As soon as practicable after the receipt of the written petition of

5-18 the property owners submitted pursuant to subsection 1, the governing

5-19 body shall pass a resolution of intention to dissolve the district. The

5-20 governing body shall give notice of a hearing on the dissolution. The

5-21 notice must be provided and the hearing must be held pursuant to the

5-22 requirements set forth in section 9 of this act. If the governing body

5-23 determines that dissolution of the district is appropriate, it shall dissolve

5-24 the district by resolution, effective not earlier than the 30th day after the

5-25 hearing.

5-26 4. If there is indebtedness, outstanding and unpaid, incurred to

5-27 accomplish any of the purposes of the district, the portion of the

5-28 assessment necessary to pay the indebtedness remains effective and must

5-29 be continued in the following years until the debt is paid.

5-30 Sec. 15. 1. The association with which a city contracts pursuant to

5-31 section 10 of this act shall cause to be prepared a report for each fiscal

5-32 year in which assessments are to be levied and collected.

5-33 2. The report prepared pursuant to subsection 1 must be filed with

5-34 the city clerk on or before February 1 of the fiscal year immediately

5-35 preceding the fiscal year to which the report applies and must include:

5-36 (a) The name of the district;

5-37 (b) The fiscal year to which the report applies;

5-38 (c) Any proposed changes to the boundaries of the district for that

5-39 fiscal year;

5-40 (d) The improvements and activities to be provided for that fiscal year;

5-41 (e) An estimate of the cost of providing the improvements and

5-42 activities set forth pursuant to paragraph (d);

6-1 (f) The method and basis of levying each assessment to be levied for

6-2 that fiscal year in sufficient detail to allow each property owner to

6-3 calculate the amount of the assessment to be levied against his property

6-4 for that fiscal year;

6-5 (g) The amount of any surplus or deficit revenues to be carried over

6-6 from a preceding fiscal year; and

6-7 (h) The amount of any money received by the district from sources

6-8 other than assessments levied pursuant to sections 2 to 15, inclusive, of

6-9 this act.

6-10 Sec. 16. NRS 271.030 is hereby amended to read as follows:

6-11 271.030 Except where the context otherwise requires, the definitions in

6-12 NRS 271.035 to 271.250, inclusive, and sections 2 to 5, inclusive, of this

6-13 act govern the construction of this chapter.