Assembly Bill No. 104–Assemblywoman Von Tobel
February 12, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes concerning collection
of charges for services provided by certain general improvement districts. (BDR 25‑880)
FISCAL NOTE: Effect on Local Government: No.
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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).
AN ACT relating to general improvement districts; establishing an exception to the
provision which creates a lien on property to which services from certain
general improvement districts are provided until fees are paid for such
services; prohibiting the board of trustees of certain general improvement
districts from requiring a guaranty from a landlord for the payment of services
provided to a tenant; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. NRS 318.197
is hereby amended to read as follows:
1-2 318.197 1. The board may fix, and from time to time
increase or
1-3 decrease, electric energy,
cemetery, swimming pool, other recreational
1-4 facilities, television, FM
radio, sewer, water, storm drainage, flood control,
1-5 snow removal, lighting,
garbage or refuse rates, tolls or charges other than
1-6 special assessments,
including, but not limited to, service charges and
1-7 standby service charges, for
services or facilities furnished by the district,
1-8 charges for the availability
of service, annexation charges, and minimum
1-9 charges, and pledge the
revenue for the payment of any indebtedness or
1-10 special obligations of the
district.
1-11 2. [Upon]
Except as otherwise provided in
this subsection, upon
1-12 compliance with subsection 9
and until paid, all rates, tolls or charges
1-13 constitute a perpetual lien
on and against the property served. A perpetual
1-14 lien is prior and superior
to all liens, claims and titles other than liens of
1-15 general taxes and special
assessments and is not subject to extinguishment
1-16 by the sale of any property
on account of nonpayment of any liens, claims
1-17 and titles including the liens
of general taxes and special assessments. A
1-18 perpetual lien must be
foreclosed in the same manner as provided by the
1-19 laws of the State of Nevada
for the foreclosure of mechanics’ liens. Before
1-20 any lien is foreclosed, the
board shall hold a hearing thereon after
2-1 providing notice thereof by
publication and by registered or certified first-
2-2 class mail, postage prepaid,
addressed to the last known owner at his last
2-3 known address according to
the records of the district and the real property
2-4 assessment roll in the
county in which the property is located. The rates,
2-5 tolls or charges fixed by the board of a district that furnishes
electric
2-6 light and power which are assessed for the provision of electric energy
to
2-7 a tenant of a dwelling do not constitute a lien on and against the
property
2-8 served.
2-9 3. The board shall
prescribe and enforce regulations for the connection
2-10 with and the disconnection
from properties of the facilities of the district
2-11 and the taking of its
services.
2-12 4. The board may provide
for the collection of charges. Provisions
2-13 may be made for, but are not
limited to:
2-14 (a) The granting of discounts for prompt payment of bills.
2-15 (b) The requiring of deposits or the prepayment of charges in an
amount
2-16 not exceeding 1 year’s
charges from persons receiving service and using
2-17 the facilities of the
enterprise or from the owners of property on which or
2-18 in connection with which services
and facilities are to be used. In case of
2-19 nonpayment of all or part of
a bill, the deposits or prepaid charges must be
2-20 applied only insofar as
necessary to liquidate the cumulative amount of the
2-21 charges plus penalties and
cost of collection.
2-22 (c) [The] Except
as otherwise provided in subsection 10, the requiring
2-23 of a guaranty by the owner
of property that the bills for service to the
2-24 property or the occupants
thereof will be paid.
2-25 5. The board may provide
for a basic penalty for nonpayment of the
2-26 charges within the time and
in the manner prescribed by it. The basic
2-27 penalty must not be more
than 10 percent of each month’s charges for the
2-28 first month delinquent. In
addition to the basic penalty, the board may
2-29 provide for a penalty of not
exceeding 1.5 percent per month for
2-30 nonpayment of the charges
and basic penalty. On the first day of the
2-31 calendar month following the
date of payment specified in the bill the
2-32 charge becomes delinquent if
the bill or that portion thereof which is not in
2-33 bona fide dispute remains
unpaid. The board may provide for collection of
2-34 the penalties provided for
in this section.
2-35 6. The board may provide
that charges for any service must be
2-36 collected together with and
not separately from the charges for any other
2-37 service rendered by it, and
that all charges must be billed upon the same
2-38 bill and collected as one
item.
2-39 7. The board may enter into
a written contract with any person, firm or
2-40 public or private
corporation providing for the billing and collection by the
2-41 person, firm or corporation
of the charges for the service furnished by any
2-42 enterprise. If all or any
part of any bill rendered by the person, firm or
2-43 corporation pursuant to a
contract is not paid and if the person, firm or
2-44 corporation renders any
public utility service to the person billed, the
2-45 person, firm or corporation
may discontinue its utility service until the bill
2-46 is paid, and the contract
between the board and the person, firm or
2-47 corporation may so provide.
2-48 8. As a remedy established
for the collection of due and unpaid
2-49 deposits and charges and the
penalties thereon an action may be brought in
3-1 the name of the district in
any court of competent jurisdiction against the
3-2 person or persons who
occupied the property when the service was
3-3 rendered or the deposit
became due or against any person guaranteeing
3-4 payment of bills, or against
any or all such persons, for the collection of the
3-5 amount of the deposit or the
collection of delinquent charges and all
3-6 penalties thereon.
3-7 9. A lien against the
property served is not effective until a notice of
3-8 the lien, separately
prepared for each lot affected, is:
3-9 (a) Mailed to the last known owner at his last known address
according
3-10 to the records of the
district and the real property assessment roll of the
3-11 county in which the property
is located;
3-12 (b) Delivered by the board to the office of the county recorder of
the
3-13 county within which the
property subject to such lien is located;
3-14 (c) Recorded by the county recorder in a book kept by him for the
3-15 purpose of recording
instruments encumbering land; and
3-16 (d) Indexed in the real estate index as deeds and other conveyances
are
3-17 required by law to be
indexed.
3-18 10. The board of a district which furnishes
electric light and power
3-19 may not require a landlord to provide a guaranty that a bill for
service to
3-20 a dwelling which is occupied by a tenant will be paid.
3-21 11. As used in this section:
3-22 (a) “Dwelling” means a
structure or the part of a structure that is
3-23 occupied as, or designed or intended for occupancy as, a residence
or
3-24 sleeping place by one person who maintains a household or by two or
3-25 more persons who maintain a common household.
3-26 (b) “Landlord” means a
person who provides a dwelling unit for
3-27 occupancy by another pursuant to a rental agreement.
3-28 (c) “Tenant” means a person
entitled pursuant to a rental agreement
3-29 to occupy a dwelling unit to the exclusion of others.
3-30 Sec. 2. This act becomes effective upon passage and approval.
3-31 H