2005 Nevada Revised Statutes - Chapter 271A — Tourism Improvements

CHAPTER 271A - TOURISM IMPROVEMENTS

GENERAL PROVISIONS

NRS 271A.010 Shorttitle.

NRS 271A.020 Definitions.

NRS 271A.030 Districtdefined.

NRS 271A.040 Municipalitydefined.

NRS 271A.050 Projectdefined.

NRS 271A.060 Retailerdefined.

TOURISM IMPROVEMENT DISTRICTS

NRS 271A.070 Creation;acquisition, operation and ownership of projects located within districts;pledge of proceeds of certain taxes; boundaries.

NRS 271A.080 Prerequisitesfor adoption of ordinance.

NRS 271A.090 Conclusivenessof determinations.

NRS 271A.100 Agreementwith Department of Taxation regarding distribution of pledged amounts.

NRS 271A.110 Agreementwith owner of property interest within district to defray cost of localgovernmental services during term of pledge: Contents; finding by governing bodyof municipality; commitment from municipality for provision of payments toschool district.

NRS 271A.120 Issuanceof special obligations; agreements to reimburse entities or persons for projectcosts; feasibility studies; default on special obligations or agreements;security for special obligations or agreements; automatic termination ofspecial obligations.

NRS 271A.130 Competitivebidding not required; exceptions; applicability of provisions governing paymentof prevailing wage for projects.

________

GENERAL PROVISIONS

NRS 271A.010 Shorttitle. This chapter shall be known as theTourism Improvement District Law.

(Added to NRS by 2005, 2362)

NRS 271A.020 Definitions. Except as otherwise provided in NRS 271A.030 to 271A.060, inclusive, and unless thecontext otherwise requires, the words and terms defined in NRS 271.035 to 271.250, inclusive, and 271A.030 to 271A.060, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 2005, 2362)

NRS 271A.030 Districtdefined. District means a tourismimprovement district created pursuant to NRS271A.070.

(Added to NRS by 2005, 2362)

NRS 271A.040 Municipalitydefined. Municipality means any county orcity in this State.

(Added to NRS by 2005, 2362)

NRS 271A.050 Projectdefined. Project means:

1. With respect to a county whose population is 400,000or more:

(a) An art project, as defined in NRS 271.037;

(b) A tourism and entertainment project, as defined in NRS 271.234; or

(c) A sports stadium which can be used for the homegames of a Major League Baseball or National Football League team and for otherpurposes, including structures, buildings and other improvements and equipmenttherefor, parking facilities, and all other appurtenances necessary, useful ordesirable for a Major League Baseball or National Football League stadium,including, without limitation, all types of property therefor and immediatelyadjacent facilities for retail sales, dining and entertainment.

2. With respect to a city in a county whose populationis 400,000 or more:

(a) A project described in paragraph (a), (b) or (c) ofsubsection 1; or

(b) A recreational project, as defined in NRS 268.710.

3. With respect to a municipality other than amunicipality described in subsection 1 or 2, any project that the municipalityis authorized to acquire, improve, equip, operate and maintain pursuant tosubsections 1, 2 and 4 to 10, inclusive, of NRS244A.057 or NRS 268.730 or 271.265, as applicable.

4. Any real or personal property suitable for retail,tourism or entertainment purposes.

5. Any real or personal property necessary, useful ordesirable in connection with any of the projects set forth in this section.

6. Any combination of the projects set forth in thissection.

(Added to NRS by 2005, 2362)

NRS 271A.060 Retailerdefined. Retailer has the meaning ascribedto it in NRS 374.060.

(Added to NRS by 2005, 2363)

TOURISM IMPROVEMENT DISTRICTS

NRS 271A.070 Creation;acquisition, operation and ownership of projects located within districts;pledge of proceeds of certain taxes; boundaries.

1. Except as otherwise provided in this section and NRS 271A.080, the governing body of amunicipality may:

(a) Create a tourism improvement district for thepurposes of carrying out this chapter and revise the boundaries of the districtby adopting an ordinance describing the boundaries of the district andgenerally describing the types of projects which may be financed within thedistrict pursuant to this chapter.

(b) Without any election, acquire, improve, equip,operate and maintain a project within a district created pursuant to paragraph(a). The project may be owned by the municipality, another governmental entity,any other person, or any combination thereof.

(c) For the purposes of carrying out paragraph (b),include in an ordinance adopted pursuant to paragraph (a) the pledge of asingle percentage specified in the ordinance, which must not exceed 75 percent,of:

(1) An amount equal to the proceeds of the taxesimposed pursuant to NRS 372.105 and 372.185 with regard to tangible personalproperty sold at retail, or stored, used or otherwise consumed, in the districtduring a fiscal year, after the deduction of a sum equal to 0.75 percent of theamount of those proceeds; and

(2) The amount of the proceeds of the taxes imposedpursuant to NRS 374.110, 374.190 and 377.030 with regard to tangible personalproperty sold at retail, or stored, used or otherwise consumed, in the districtduring a fiscal year, after the deduction of 0.75 percent of the amount ofthose proceeds.

2. A district created pursuant to this section by:

(a) A city must be located entirely within theboundaries of that city.

(b) A county must be located entirely within theboundaries of that county and, when the district is created, entirely outsideof the boundaries of any city.

3. If any property within the boundaries of a districtis also included within the boundaries of any other tourism improvementdistrict or any improvement district for which any money has been pledgedpursuant to NRS 271.650, the totalamount of money pledged pursuant to this section and NRS 271.650 with respect to such propertyby all such districts must not exceed the amount authorized pursuant to this section.

4. The governing body of a municipality shall not,after October 1, 2009, create a tourism improvement district that includeswithin its boundaries any property included within the boundaries of aredevelopment area established pursuant to chapter279 of NRS.

(Added to NRS by 2005, 2363)

NRS 271A.080 Prerequisitesfor adoption of ordinance. The governing bodyof a municipality shall not adopt an ordinance pursuant to NRS 271A.070 unless:

1. If the ordinance:

(a) Creates a district, the governing body hasdetermined that no retailers will have maintained or will be maintaining afixed place of business within the district on or within the 120 daysimmediately preceding the date of the adoption of the ordinance; or

(b) Amends the boundaries of the district to add anyadditional area, the governing body has determined that no retailers will havemaintained or will be maintaining a fixed place of business within that area onor within 120 days immediately preceding the date of the adoption of theordinance.

2. The governing body has made a written finding at apublic hearing that the project will benefit the district.

3. The governing body has made a written finding at apublic hearing, based upon reports from independent consultants which wereaddressed to the governing body, to the board of county commissioners, if thegoverning body is not the board of county commissioners for the county in whichthe tourism district is or will be located, and to the board of trustees of theschool district in which the tourism improvement district is or will be located,as to whether the project and the financing thereof pursuant to this chapterwill have a positive fiscal effect on the provision of local governmentalservices, after considering:

(a) The amount of the proceeds of all taxes and othergovernmental revenue projected to be received as a result of the properties andbusinesses expected to be located in the district;

(b) The use of any money proposed to be pledgedpursuant to NRS 271A.070;

(c) Any increase in costs for the provision of localgovernmental services, including, without limitation, services for education,including operational and capital costs, and services for police protection andfire protection, as a result of the project and the development of land withinthe district; and

(d) Estimates of any increases in the proceeds fromsales and use taxes collected by retailers located outside of the district andof any displacement of the proceeds from sales and use taxes collected by thoseretailers, as a result of the properties and businesses expected to be locatedin the district.

4. The governing body has, at least 45 days beforemaking the written finding required by subsection 3, provided to the board oftrustees of the school district in which the tourism improvement district is orwill be located:

(a) Written notice of the time and place of the meetingat which the governing body will consider making that written finding; and

(b) Each analysis prepared by or for or presented tothe governing body regarding the fiscal effect of the project and the use ofany money proposed to be pledged pursuant to NRS 271A.070 on the provision of localgovernmental services, including education.

After thereceipt of the notice required by this subsection and before the date of themeeting at which the governing body will consider making the written findingrequired by subsection 3, the board of trustees shall conduct a hearingregarding the fiscal effect on the school district, if any, of the project andthe use of any money proposed to be pledged pursuant to NRS 271A.070, and may submit to thegoverning body of the municipality any comments regarding that fiscal effect.The governing body shall consider those comments when making any writtenfinding pursuant to subsection 3 and shall consider those comments whenconsidering the terms of any agreement pursuant to NRS 271A.110.

5. If the governing body is not the board of countycommissioners for the county in which the tourism district is or will belocated, the governing body has, at least 45 days before making the writtenfinding required by subsection 3, provided to the board of county commissionersin the county in which the tourism improvement district is or will be located:

(a) Written notice of the time and place of the meetingat which the governing body will consider making that written finding; and

(b) Each analysis prepared by or for or presented tothe governing body regarding the fiscal effect of the project and the use ofany money proposed to be pledged pursuant to NRS 271A.070 on the provision of localgovernmental services.

After thereceipt of the notice required by this subsection and before the date of themeeting at which the governing body will consider making the written findingrequired by subsection 3, the board of county commissioners may conduct ahearing regarding the fiscal effect on local governmental services, if any, ofthe project and the use of any money proposed to be pledged pursuant to NRS 271A.070, and may submit to thegoverning body of the municipality any comments regarding that fiscal effect.The governing body may consider those comments when making any written findingpursuant to subsection 3 and shall consider those comments when considering theterms of any agreement pursuant to NRS271A.110.

6. The governing body has determined, at a publichearing conducted at least 15 days after providing notice of the hearing bypublication, that:

(a) As a result of the project:

(1) Retailers will locate their businesses assuch in the district; and

(2) There will be a substantial increase in theproceeds from sales and use taxes remitted by retailers with regard to tangiblepersonal property sold at retail, or stored, used or otherwise consumed, in thedistrict; and

(b) A preponderance of that increase in the proceedsfrom sales and use taxes will be attributable to transactions with tourists whoare not residents of this State.

7. The Commission on Tourism has determined, at apublic hearing conducted at least 15 days after providing notice of the hearingby publication, that a preponderance of the increase in the proceeds from salesand use taxes identified pursuant to subsection 6 will be attributable totransactions with tourists who are not residents of this State.

8. The Governor has determined that the project andthe use of any money proposed to be pledged pursuant to NRS 271A.070 will contributesignificantly to economic development and tourism in this State. Before makingthat determination, the Governor:

(a) Must consider the fiscal effects of the pledge ofmoney on educational funding, including any fiscal effects described incomments provided pursuant to subsection 4 by the school district in which thetourism improvement district is or will be located, and for that purpose mayrequire the Department of Education or the Department of Taxation, or both, toprovide him with an appropriate fiscal report; and

(b) If the Governor determines that the pledge of moneywill have a substantial adverse fiscal effect on educational funding, mayrequire a commitment from the municipality for the provision of specifiedpayments to the school district in which the tourism improvement district is orwill be located during the term of the use of any money pledged pursuant to NRS 271A.070. The payments may beprovided pursuant to agreements with owners of property within the districtauthorized by NRS 271A.110 or fromsources other than the owners of property within the district. Such acommitment by a municipality is not subject to the limitations of subsection 1of NRS 354.626 and, notwithstanding anyother law to the contrary, is binding on the municipality for the term of theuse of any money pledged pursuant to NRS271A.070.

9. If any property within the boundaries of thedistrict is also included within the boundaries of any other tourismimprovement district or any improvement district for which any money has beenpledged pursuant to NRS 271.650, all ofthe governing bodies which created those districts have entered into aninterlocal agreement providing for:

(a) The apportionment of any money pledged pursuant to NRS 271.650 and 271A.070 with respect to such property;and

(b) The priority of the application of that moneybetween:

(1) Bonds issued pursuant to chapter 271 of NRS; and

(2) Bonds and notes issued, and agreementsentered into, pursuant to NRS 271A.120.

Any suchagreement for the priority of the application of that money may be madeirrevocable during the term of any bonds issued pursuant to chapter 271 of NRS to which all or any portion ofthat money is pledged, or during the term of any bonds or notes issued or anyagreements entered into pursuant to NRS271A.120 to which all or any portion of that money is pledged.

(Added to NRS by 2005, 2363)

NRS 271A.090 Conclusivenessof determinations. Any determination, writtenfinding or approval made pursuant to NRS271A.080 is conclusive in the absence of fraud or gross abuse ofdiscretion.

(Added to NRS by 2005, 2366)

NRS 271A.100 Agreementwith Department of Taxation regarding distribution of pledged amounts. After the adoption of an ordinance creating a district inaccordance with this chapter, the governing body of the municipality and the Departmentof Taxation shall enter into an agreement specifying the dates and procedurefor distribution to the municipality of any money pledged pursuant to NRS 271A.070. The distributions must:

1. Be made not less frequently than once each calendarquarter; and

2. Cease at the end of the fiscal year in which the20th anniversary of the adoption of the ordinance creating the district occurs.

(Added to NRS by 2005, 2366)

NRS 271A.110 Agreementwith owner of property interest within district to defray cost of localgovernmental services during term of pledge: Contents; finding by governingbody of municipality; commitment from municipality for provision of payments toschool district.

1. The governing body of a municipality may, except asotherwise provided in subsection 2, enter into an agreement with one or more ofthe owners of any interest in property within a district, pursuant to whichthat owner would agree to make payments to the municipality or to another localgovernment that provides services in the district, or to both, to defray, inwhole or in part, the cost of local governmental services during the term ofthe use of any money pledged pursuant to NRS271A.070. Such an agreement must specify the amount to be paid by the ownerof the property interest, which may be stated as a specified amount per year oras an amount based upon any formula upon which the municipality and owneragree.

2. The governing body of a municipality shall notenter into an agreement pursuant to subsection 1 unless:

(a) The governing body has made a written findingpursuant to subsection 3 of NRS 271A.080that the project and the use of any money pledged pursuant to NRS 271A.070 will not have a positivefiscal effect on the provision of local governmental services; or

(b) The Governor requires a commitment from themunicipality for the provision of specified payments to the school district inwhich the district is located during the term of the use of any money pledgedpursuant to NRS 271A.070.

(Added to NRS by 2005, 2366)

NRS 271A.120 Issuanceof special obligations; agreements to reimburse entities or persons for projectcosts; feasibility studies; default on special obligations or agreements;security for special obligations or agreements; automatic termination ofspecial obligations.

1. Except as otherwise provided in this section, ifthe governing body of a municipality adopts an ordinance pursuant to NRS 271A.070, the municipality may:

(a) Issue, at one time or from time to time, bonds ornotes as special obligations under the Local Government Securities Law tofinance or refinance projects for the benefit of the district. Any such bondsor notes may be secured by a pledge of, and be payable from, any money pledgedpursuant to NRS 271A.070 and receivedby the municipality with respect to the district, any revenue received by themunicipality from any revenue-producing projects in the district, or anycombination thereof.

(b) Enter into an agreement with one or moregovernmental entities or other persons to reimburse that entity or person forthe cost of acquiring, improving or equipping, or any combination thereof, anyproject, which may contain such terms as are determined to be desirable by thegoverning body of the municipality, including the payment of reasonableinterest and other financing costs incurred by such entity or other person. Anysuch reimbursements may be secured by a pledge of, and be payable from, anymoney pledged pursuant to NRS 271A.070and received by the municipality with respect to the district, any revenuereceived by the municipality from any revenue-producing projects in thedistrict, or any combination thereof. Such an agreement is not subject to thelimitations of subsection 1 of NRS 354.626and may, at the option of the governing body, be binding on the municipalitybeyond the fiscal year in which it was made, only if the agreement pertainssolely to one or more projects that are owned by the municipality or anothergovernmental entity.

2. Before the issuance of any bonds or notes pursuantto this section, the municipality must obtain the results of a feasibilitystudy, commissioned by the municipality, which shows that a sufficient amountwill be generated from money pledged pursuant to NRS 271A.070 to make timely payment onthe bonds or notes, taking into account the revenue from any otherrevenue-producing projects also pledged for the payment of the bonds or notes,if any. A failure to make payments of any amounts due:

(a) With respect to any bonds or notes issued pursuantto subsection 1; or

(b) Under any agreements entered into pursuant tosubsection 1,

because ofany insufficiency in the amount of money pledged pursuant to NRS 271A.070 to make those payments shallbe deemed not to constitute a default on those bonds, notes or agreements.

3. No bond, note or other agreement issued or enteredinto pursuant to this section may be secured by or payable from the generalfund of the municipality, the power of the municipality to levy ad valoremproperty taxes, or any source other than any money pledged pursuant to NRS 271A.070 and received by themunicipality with respect to the district, any revenue received by themunicipality from any revenue-producing projects in the district, or anycombination thereof. No bond, note or other agreement issued or entered intopursuant to this section may ever become a general obligation of the municipalityor a charge against its general credit or taxing powers, nor may any such bond,note or other agreement become a debt of the municipality for purposes of anylimitation on indebtedness.

4. Any bond or note issued pursuant to this section,including any bond or note issued to refund any such bond or note, must matureon or before, and any agreement entered pursuant to this section mustautomatically terminate on or before, the end of the fiscal year in which the20th anniversary of the adoption of the ordinance creating the district occurs.

(Added to NRS by 2005, 2367)

NRS 271A.130 Competitivebidding not required; exceptions; applicability of provisions governing paymentof prevailing wage for projects.

1. Except as otherwise provided in this section,notwithstanding any other law to the contrary, any contract or other agreementrelating to or providing for the construction, improvement, repair, demolition,reconstruction, other acquisition, equipment, operation or maintenance of anyproject financed in whole or in part pursuant to this chapter is exempt fromany law requiring competitive bidding or otherwise specifying procedures forthe award of contracts for construction or other contracts, or specifyingprocedures for the procurement of goods or services. The governing body of themunicipality shall require a quarterly report on the demography of the workersemployed by any contractor or subcontractor for each such project.

2. The provisions of subsection 1 do not apply to anyproject which is constructed or maintained by a governmental entity on anyproperty while the governmental entity owns that property.

3. The provisions of NRS338.010 to 338.090, inclusive, applyto any contract or other agreement for the construction, improvement, repair,demolition or reconstruction of any project that is paid for in whole or inpart:

(a) From the proceeds of bonds or notes issued pursuantto paragraph (a) of subsection 1 of NRS271A.120; or

(b) Pursuant to an agreement for reimbursement enteredinto pursuant to paragraph (b) of subsection 1 of NRS 271A.120,

regardlessof whether the project is publicly or privately owned.

(Added to NRS by 2005, 2368)

 

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