(REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 355–Committee on Government Affairs

 

March 15, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Directs Legislative Commission to conduct interim study of competition between local governments and private enterprises in provision of certain goods or services. (BDR S‑49)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to local governments; directing the Legislative Commission to conduct an interim study of the competition between local governments and private enterprises in the provision of certain goods or services; and providing other matters properly relating thereto.

 

   Whereas, The structure of Nevada tax laws allows local governments to provide certain goods or services to consumers at a reduced rate because of certain tax exemptions and tax subsidies; and

   Whereas, The tax exemptions and tax subsidies available to local governments are not also available to private enterprises that offer the same goods or services as the local governments offer; and

   Whereas, In certain markets in the state the tax advantages available to local governments place the local governments in direct competition with private enterprises, and in some situations have threatened the economic viability of certain private enterprises; now, therefore

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. The Legislative Commission shall appoint a committee

1-2  consisting of an equal number of legislators from the Assembly and the

1-3  Senate to conduct an interim study of the competition between local

1-4  governments and private enterprises in the provision of certain goods or

1-5  services.

1-6    Sec. 2. The committee appointed pursuant to section 1 of this act must

1-7  include, without limitation, the following topics in its study:

1-8    1.  A review of the history of the provision of the same goods or

1-9  services by both local governments and private enterprises in Nevada,

1-10  especially government-subsidized services such as medical care;

2-1    2.  A study of the feasibility of applying some of the same tax laws to

2-2  local governments that apply to private enterprises;

2-3    3.  An assessment of the potential fiscal effect on local governments if

2-4  local governments were required to pay certain fees and other charges that

2-5  private enterprises pay as a normal cost of conducting business;

2-6    4.  An analysis of the effect of a prohibition on the provision by local

2-7  governments of goods or services in competition with private enterprises if

2-8  the local governments receive ad valorem taxes as a source of funding; and

2-9    5.  A review of the possible options for minimizing any negative effect

2-10  that may occur to private enterprises when a local government provides

2-11  certain goods or services in direct competition with those private

2-12  enterprises by taking advantage of the tax exemptions and tax subsidies

2-13  that are only available to local governments.

2-14    Sec. 3. 1.  The Legislative Commission shall submit a report of the

2-15  findings of the committee and any recommendations of the committee for

2-16  legislation to the 72nd session of the Nevada Legislature.

2-17    2.  Any recommended legislation proposed by the committee appointed

2-18  pursuant to section 1 of this act must be approved by a majority of the

2-19  members of the Senate and a majority of the members of the Assembly

2-20  appointed to the committee.

 

2-21  H