2005 Nevada Revised Statutes - Chapter 274 — Zones for Economic Development

CHAPTER 274 - ZONES FOR ECONOMICDEVELOPMENT

GENERAL PROVISIONS

NRS 274.010 Definitions.

NRS 274.020 Administratordefined.

NRS 274.030 Depressedarea defined.

NRS 274.040 Designatingmunicipality defined.

NRS 274.050 Governingbody defined.

NRS 274.060 Municipalitydefined.

NRS 274.070 Qualifiedbusiness defined.

NRS 274.080 Zonedefined.

NRS 274.090 Administrator:Appointment; administration of chapter; report to Legislature; regulations.

NRS 274.100 Administrator:Duties.

NRS 274.110 Administrator:Procedure for review of state regulations.

NRS 274.120 Administrator:Adoption of regulations exempting certain businesses from state regulations.

NRS 274.130 Exemptionof businesses by agency from its regulations; regulations of Administratorsupersede; modification of local ordinances and regulations of municipality.

NRS 274.140 Exceptionsto exemptions from regulations or ordinances.

NRS 274.150 Qualificationsfor zone.

NRS 274.160 Designationof area as zone; contents of ordinance.

NRS 274.170 Contentsof application to Governor for designation of area as zone.

NRS 274.180 Reviewof application by Administrator and Governor.

NRS 274.190 Criteriafor designation of zone by Governor.

NRS 274.200 Certificationof zone by Governor; terms and number of zones.

NRS 274.210 Programfor training and employment of residents in zone; report to municipality andLegislative Commission.

NRS 274.220 Managerof zone: Appointment; qualifications; duties.

NRS 274.230 Powersof designating municipality: Cooperation with federal, state and localgovernments; improving police protection; federal assistance for urbandevelopment or training for employment; qualifications for benefits.

NRS 274.240 Powersof designating municipality: Issuing securities; reducing certain taxes, feesor service charges; improving governmental services; providing financing;cooperating with other governmental agencies.

NRS 274.250 Powersof designating municipality: Delegation of services to private organizations.

NRS 274.260 Proposalby business to participate in benefits of zone; contents of proposal.

NRS 274.270 Investigationby governing body of proposal by business to participate in benefits of zone;requirements for hiring certain employees; review of compliance with agreement;filing of information.

NRS 274.280 Procedureto amend ordinance designating zone.

NRS 274.290 Terminationof zone.

NRS 274.300 Effectupon benefits if zone terminated or modified or benefits reduced or eliminated.

ABATEMENTS FOR BUSINESSES IN CERTAIN AREAS OF ECONOMICDEVELOPMENT

NRS 274.310 Abatementfor locating business in certain areas of economic development: Endorsementrequired; application; requirements for approval; certificate of eligibility;regulations; judicial review.

NRS 274.320 Abatementfor expanding business in certain areas of economic development: Endorsementrequired; application; requirements for approval; certificate of eligibility;regulations; judicial review.

NRS 274.330 Abatementfor businesses in certain areas of economic development that hire dislocatedworkers: Endorsement required; application; requirements for approval;certificate of eligibility; regulations; judicial review.

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GENERAL PROVISIONS

 

NRS 274.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS274.020 to 274.080, inclusive, havethe meanings ascribed to them in those sections.

(Added to NRS by 1983, 1971)

NRS 274.020 Administratordefined. Administrator means the stateofficer appointed by the Governor to administer the provisions of this chapter.

(Added to NRS by 1983, 1971)

NRS 274.030 Depressedarea defined. Depressed area means an areain which pervasive poverty, unemployment and economic distress exist.

(Added to NRS by 1983, 1971)

NRS 274.040 Designatingmunicipality defined. Designating municipalitymeans a city, or, with respect to the unincorporated areas of the county, acounty which designates a specially benefited zone pursuant to this chapter.

(Added to NRS by 1983, 1971)

NRS 274.050 Governingbody defined. Governing body means theboard of county commissioners, the board of supervisors, the city council orthe board of commissioners, as the case may be.

(Added to NRS by 1983, 1971)

NRS 274.060 Municipalitydefined. Municipality means any county, withrespect to the unincorporated areas of the county, or any city in this State, includingCarson City.

(Added to NRS by 1983, 1971)

NRS 274.070 Qualifiedbusiness defined. Qualified business meansany business organization qualified to receive benefits under this chapter andwhich has made an agreement concerning those benefits as provided by NRS 274.270.

(Added to NRS by 1983, 1971)

NRS 274.080 Zonedefined. Zone means a specially benefitedzone designated and approved pursuant to this chapter.

(Added to NRS by 1983, 1971)

NRS 274.090 Administrator:Appointment; administration of chapter; report to Legislature; regulations.

1. The Governor shall appoint a qualified person inthe Commission on Economic Development to serve as Administrator.

2. The Administrator shall:

(a) Administer this chapter.

(b) Submit reports evaluating the effectiveness of theprograms established pursuant to this chapter together with any suggestions forlegislation to the Legislature by February 1 of every odd-numbered year. Thereports must contain statistics concerning initial and current population,employment, per capita income, corporate income and the construction of housingfor each specially benefited zone.

(c) Adopt all necessary regulations to carry out theprovisions of this chapter.

(Added to NRS by 1983, 1976)

NRS 274.100 Administrator:Duties. The Administrator shall:

1. When any federal legislation concerning speciallybenefited zones is enacted and becomes effective, assist municipalities inpreparing and submitting all information and forms necessary to permit the zoneto be considered as an eligible area under the federal program.

2. Provide information and appropriate assistance topersons desiring to locate and engage in business in a specially benefitedzone, to persons already engaged in business in a zone and to designatedneighborhood organizations operating there.

3. In cooperation with appropriate state and localgovernmental agencies, coordinate existing state and local programs to assistbusinesses and assist in simplifying procedures by which businesses within aspecially benefited zone must apply for licenses and permits.

4. Publicize existing financial incentives andprograms for economic development within a zone and upon request, offertechnical assistance in the development of financial incentives and alternativesources of revenue to local governments which have specially benefited zoneswithin their jurisdiction.

5. Work together with the responsible state andfederal agencies to promote the coordination of other relevant programs,including but not limited to programs concerning housing, community andeconomic development, small business, banking, financial assistance, and trainingfor employment which are carried on in a specially benefited zone.

(Added to NRS by 1983, 1976)

NRS 274.110 Administrator:Procedure for review of state regulations.

1. The Administrator shall conduct a review of stateadministrative regulations and shall identify those regulations whichpreliminarily appear to the Administrator to:

(a) Affect the conduct of business, industry andcommerce;

(b) Impose excessive cost on either the creation orconduct of businesses; and

(c) Inhibit the development and expansion of businesswithin specially benefited zones.

2. The Administrator shall conduct hearings to solicitpublic comment on the regulations as part of his review.

3. No later than August 1, 1984, the Administratorshall publish a list of regulations identified pursuant to subsection 1. TheAdministrator shall transmit a copy of the list to each agency which hasadopted regulations on the list.

4. Within 90 days after the publication of the list bythe Administrator, each agency which adopted any regulation identified thereinshall file a written report with the Administrator detailing for each identifiedregulation:

(a) Its need or justification;

(b) Whether the regulation is required by state orfederal law, or is discretionary, and to what extent;

(c) A synopsis of the history of the regulation,including any internal review of it by the agency after its original adoption;

(d) Any appropriate explanation of its relationship toother regulatory requirements; and

(e) Any available data, analysis and studies concerningthe estimated economic effect of the regulations on the business which it is toregulate and on the public. The informational statement prepared as required byNRS 233B.066 may be submitted tosatisfy the requirements of this paragraph if it contains a current estimate ofthat economic effect.

The agencysreport is a public record and must be open to public inspection during regularbusiness hours.

(Added to NRS by 1983, 1979)

NRS 274.120 Administrator:Adoption of regulations exempting certain businesses from state regulations.

1. No later than January 1, 1985, and from time totime as necessary, the Administrator shall, except as provided in NRS 274.140, adopt regulations exemptingbusinesses within specially benefited zones from those state regulationscontained in the list published pursuant to NRS274.110, for which the Administrator finds that incentives for the creationof jobs or for business development within specially benefited zones engenderedby the exemption outweigh the need and justification for the regulation. Inmaking his findings, the Administrator shall consider all information, data andopinions submitted to him by the public and the state agencies, and any otherinformation otherwise available to him. These regulations must be in the formof amendments to the existing state regulations to be affected, and are subjectto the provisions of chapter 233B of NRS.

2. Upon its effective date, any regulation of theAdministrator adopted under subsection 1 supersedes the exempted stateregulation in accordance with the terms of the exemption. An exemption appliesonly to businesses within specially benefited zones during the effective termof the respective zones. State agencies may not adopt emergency regulations tocircumvent an exemption granted by the Administrator. Any such emergencyregulation is not effective within the specially benefited zones to the extentit is inconsistent with the terms of the exemption.

(Added to NRS by 1983, 1979)

NRS 274.130 Exemptionof businesses by agency from its regulations; regulations of Administratorsupersede; modification of local ordinances and regulations of municipality.

1. Except as provided in NRS 274.140, a state agency may provide inits regulations for the exemption of businesses within specially benefitedzones or for modifications or alternatives specifically applicable tobusinesses within those zones, which impose less stringent standards oralternative standards for compliance, including standards based on performanceas a substitute for specific requirements concerning methods, procedures orequipment. The agency adopting those exemptions, modifications or alternativesshall file with its proposed regulation its findings that the proposedregulation provides economic incentives within specially benefited zones whichpromote the purposes of this chapter and which, to the extent they include anyexemptions or reductions in regulatory standards or requirements, outweigh theneed or justification for the existing regulation.

2. If any agency adopts a regulation pursuant tosubsection 1 affecting a regulation contained on the list published by theAdministrator pursuant to NRS 274.110before the Administrator adopts a regulation affecting the regulation on thelist, the agency shall immediately transmit a copy of its proposed regulationto the Administrator, together with a statement of the reasons why theAdministrator should defer to the agencys proposed regulation. Regulationsadopted under subsection 1 are subject to any superseding regulations of theAdministrator adopted under NRS 274.120.

3. Except as provided in NRS 274.140, a designating municipality maymodify, with respect to specially benefited zones, all local ordinances andregulations regarding zoning, licensing or building codes.

(Added to NRS by 1983, 1980)

NRS 274.140 Exceptionsto exemptions from regulations or ordinances.

1. The provisions of NRS274.110, 274.120 and subsection 1 ofNRS 274.130 do not apply to regulationsadopted pursuant to any statute whose purpose is the protection of theenvironment, the preservation of historic places and landmarks, or theprotection of persons against discrimination on the basis of race, color,religion, sex, marital status, national origin or handicap.

2. No exemption, modification or alternative to anyregulation adopted under NRS 274.110, 274.120 or 274.130 is effective which:

(a) Presents a significant risk to the health or safetyof persons resident in or employed within a specially benefited zone;

(b) Conflicts with federal law or regulations such thatthe State, or any local government or any area of the State other thanspecially benefited zones, or any business located outside of a speciallybenefited zone would be disqualified from a federal program or from federal taxbenefits or other benefits;

(c) Suspends or modifies a regulation specificallyrequired by law; or

(d) Eliminates or reduces benefits to persons who areresidents of or employed within a zone.

(Added to NRS by 1983, 1981)

NRS 274.150 Qualificationsfor zone. An area is qualified to become a speciallybenefited zone which:

1. Is a contiguous area, but the area of a zone mayexclude wholly surrounded territory within its boundaries;

2. Is a depressed area;

3. Satisfies any additional criteria established byregulation of the Administrator consistent with the purposes of this chapter;and

4. Is entirely within a city or entirely within theunincorporated areas of a county, except where reasonable need is establishedfor the zone to cover portions of more than one city or county.

(Added to NRS by 1983, 1971)

NRS 274.160 Designationof area as zone; contents of ordinance.

1. A city, within its jurisdiction, or a county withinthe unincorporated areas of the county, or municipalities jointly, may byordinance designate an area as a specially benefited zone, subject to theapproval of the Governor, if:

(a) The area is qualified under NRS 274.150; and

(b) The municipality has conducted at least one publichearing within the proposed zone on:

(1) The question of whether to create the zone;

(2) What local plans, financial incentives andother programs should be established in connection with the zone; and

(3) What the boundaries of the zone should be.

Public noticeof the hearing must be published in at least one newspaper of generalcirculation within the proposed zone, not more than 20 days nor less than 5days before the hearing.

2. An ordinance designating an area as a speciallybenefited zone must set forth:

(a) A precise description of the area comprising thezone, either in the form of a legal description or by reference to roadways,lakes and waterways, and township, county or city boundaries;

(b) A finding that the zone meets the qualifications ofNRS 274.150;

(c) Provisions for any financial incentives whichpursuant to state or federal law apply to qualified businesses within the zoneat the election of the designating municipality, and which are not applicablethroughout the municipality;

(d) A designation of the area as a specially benefitedzone, subject to the approval of the Governor; and

(e) The duration or term of the specially benefitedzone.

3. This section does not prohibit a municipality fromextending additional financial incentives in specially benefited zones orthroughout its territory by separate ordinance, if the provision of thoseincentives is otherwise authorized by law.

(Added to NRS by 1983, 1971)

NRS 274.170 Contentsof application to Governor for designation of area as zone. A municipality which has adopted an ordinance designatingan area as a specially benefited zone shall make written application to theAdministrator to have the proposed zone approved by the Governor as a speciallybenefited zone. The application must include:

1. A certified copy of the ordinance designating theproposed zone;

2. A map of the proposed zone, showing existingstreets and highways;

3. An analysis, and any appropriate supportingdocuments and statistics, demonstrating that the proposed zone is qualifiedunder NRS 274.150;

4. A statement detailing any reduction, deferral orelimination of any license or franchise tax, fee, service charge or otherfinancial incentives or benefits, and any programs, to be provided by themunicipality to qualified businesses within the zone, other than those providedin the designating ordinance, which are not to be provided throughout themunicipality;

5. A statement setting forth the objectives concerningeconomic development and planning for the zone;

6. A statement describing the functions, programs andservices to be performed by designated neighborhood organizations within thezone;

7. An estimate of the economic effect of the zone,considering all of the financial incentives or benefits and the programscontemplated, upon the revenues of the municipality;

8. A recording or the minutes of all public hearingson the zone;

9. In the case of a joint application, a statementdetailing the need for a zone covering portions of more than one city or countyand a description of the agreement between the joint applicants; and

10. Such additional information as the Administratorby regulation may require.

(Added to NRS by 1983, 1972)

NRS 274.180 Reviewof application by Administrator and Governor.

1. All applications which are to be considered andacted upon by the Administrator and the Governor during a calendar year must bereceived by the Administrator no later than December 31 of the precedingcalendar year. Any application received on or after January 1 of any calendaryear must be held by the Administrator for consideration and action during thefollowing calendar year.

2. Upon receipt of an application from a municipality,the Administrator shall review the application to determine whether thedesignated area qualifies as a specially benefited zone under NRS 274.150 and whether to recommendapproval or denial of the application by the Governor. No later than May 1, theAdministrator shall notify all applicant municipalities of the Administratorsdetermination of the qualification of their respective designated speciallybenefited zones. If any such designated area is found to be qualified to be aspecially benefited zone, the Administrator shall, no later than May 15,publish a notice in at least one newspaper of general circulation within theproposed zone to notify the general public of the application and theiropportunity to comment. The notice must include a description of the area and abrief summary of the application and must indicate locations where theapplicant has provided copies of the application for public inspection. Thenotice must also indicate appropriate procedures for the filing of writtencomments from residents, businesses, civic and other organizations and propertyowners within the zone to the Administrator.

3. By July 1 the Governor shall either approve or denyall applications filed by December 31 of the preceding year. If approval of anapplication filed by December 31 of any year is not received by July 1 of thefollowing year, the application shall be considered denied. If an applicationis denied, the Administrator shall inform the municipality of the specificreasons for the denial.

(Added to NRS by 1983, 1973)

NRS 274.190 Criteriafor designation of zone by Governor.

1. In determining which designated areas will beapproved as specially benefited zones, the Governor shall give preference to:

(a) Areas with high levels of poverty, unemployment,loss of jobs and population, and general distress;

(b) Areas which have evidenced the widest support fromthe designating municipality, local residents and business, labor andneighborhood organizations;

(c) Areas for which a specific plan has been submittedto effect economic growth and expansion and neighborhood revitalization for thebenefit of residents and existing businesses within the zone through effortswhich may include but need not be limited to a reduction or elimination oflicense or franchise taxes, fees or service charges, an increase in the leveland efficiency of local services, and a simplification of governmentalrequirements applicable to employers or employees, taking into account theresources available to the municipality to make those efforts;

(d) Areas for which there is evidence of priorconsultation between the municipality and business, labor and neighborhoodorganizations within the proposed zone;

(e) Areas for which a specific plan has been submittedwhich will or may be expected to benefit residents and employees within thezone by increasing their opportunities for ownership of and participation indevelopments within the specially benefited zone; and

(f) Areas in which specific governmental functions areto be performed by designated neighborhood organizations in partnership withthe municipality seeking certification of an area as a specially benefitedzone.

2. The Governors determination of whether to approvea specially benefited zone must be based on the purposes of this chapter, thecriteria set forth in NRS 274.150 andsubsection 1 of this section and any additional criteria adopted by regulationof the Administrator.

(Added to NRS by 1983, 1974)

NRS 274.200 Certificationof zone by Governor; terms and number of zones.

1. Approval of designated specially benefited zonesmust be made by the Governor by certification of the designating ordinance. TheGovernor shall promptly issue a certificate for each specially benefited zoneupon his approval. The certificate must be signed by the Governor, must makespecific reference to the designating ordinance, which must be attachedthereto, and must be filed in the Office of the Secretary of State. A certifiedcopy of the certificate must be recorded with the county recorder of the countyin which the specially benefited zone lies.

2. A specially benefited zone is effective upon itscertification. The Administrator shall transmit a copy of the certification tothe Department of Taxation, the Employment Security Division of the Departmentof Employment, Training and Rehabilitation and to the designating municipality.The terms and provisions of the designating ordinance become effective uponcertification of the specially benefited zone, and may not be amended orrepealed except as otherwise provided in NRS274.280.

3. Except as otherwise provided in NRS 274.280, the designating ordinance andthe certification remain in effect for 20 years, or for a lesser number ofyears specified in the ordinance, and terminate at midnight of December 31 ofthe final year of the certified term.

4. No more than eight specially benefited zones may beapproved by the Governor in any year. In any year, the Governor may not approvemore than three zones located within the same county, whether within its citiesor within the unincorporated areas, nor more than three zones in the same city.The Governor may approve specially benefited zones in each of the 6 yearscommencing with 1984. Thereafter, the Governor may not approve any additionalspecially benefited zones, but may amend or rescind certifications of existingzones as provided in NRS 274.280.

(Added to NRS by 1983, 1974; A 1993, 1547; 2001, 1758)

NRS 274.210 Programfor training and employment of residents in zone; report to municipality andLegislative Commission.

1. In order to stimulate opportunities for employmentfor residents of a specially benefited zone, the Administrator shall initiate atest of a program for the reimbursement of vouchers for the cost of trainingresidents of the zone eligible under the provisions of the Internal RevenueCode concerning tax credits for the employment of members of targeted groups inprivate industry. This program must not be designed to subsidize businesses,but is intended to make available opportunities for jobs and training nototherwise available. Nothing in this subsection requires businesses within azone to utilize this program.

2. The program described in subsection 1 must bedesigned:

(a) For those persons whose opportunities for obtainingemployment are minimal without participation in the program;

(b) To minimize the period during which those personscollect benefits under programs for public assistance; and

(c) To accelerate the transition of those persons tounsubsidized employment.

TheAdministrator shall seek agreement with business, organized labor and the appropriatestate and local agencies on the design, operation and evaluation of the testprogram.

3. A report with recommendations, includingrepresentative comments of governmental agencies and business and labororganizations, must be submitted by the Administrator to the designatingmunicipality and the Legislative Commission not later than 12 months after thetest program commences, or not later than 3 months following the termination ofthe test program, whichever first occurs.

(Added to NRS by 1983, 1977)

NRS 274.220 Managerof zone: Appointment; qualifications; duties.

1. The management of a specially benefited zone mustbe under the jurisdiction of the designating municipality.

2. Each designating municipality shall, by ordinance,appoint a zone manager for the certified zones within its jurisdiction. A zonemanager must be an officer or employee of the municipality.

3. The zone manager shall coordinate activitiesbetween the designating municipality, the Administrator and any designatedneighborhood organizations within zones under his jurisdiction.

(Added to NRS by 1983, 1977)

NRS 274.230 Powersof designating municipality: Cooperation with federal, state and localgovernments; improving police protection; federal assistance for urbandevelopment or training for employment; qualifications for benefits. When a specially benefited zone is designated and approvedunder this chapter, the governing body of the designating municipality may:

1. Apply with the United States Department of Commerceto have the specially benefited zone declared to be a free trade zone.

2. When any federal legislation concerning speciallybenefited zones is enacted or becomes effective, prepare and submit, with theassistance of the Administrator and in a timely fashion, all information andforms necessary to permit the specially benefited zone designated and approvedunder this chapter to be considered as an eligible area under the federalprogram.

3. Apply for all available assistance from thefederal, state, and in the case of a city, the county government, including thesuspension or modification of their regulations within the specially benefitedzone that have the characteristics described in subsection 1 of NRS 274.110.

4. Develop and carry out a program to improve policeprotection within the zone.

5. Give priority to the use in the zone of any federalassistance for urban development or job training.

6. By ordinance adopt regulations for qualifyingemployers for the benefits authorized specifically for qualified businessesunder this chapter and NRS 374.643.

(Added to NRS by 1983, 1979)

NRS 274.240 Powersof designating municipality: Issuing securities; reducing certain taxes, feesor service charges; improving governmental services; providing financing;cooperating with other governmental agencies. Toencourage the revitalization of specially benefited zones, the governing bodyof a designating municipality may:

1. Issue bonds or other securities authorized by otherlaw for the purposes of economic development and use the proceeds for loans toany new or expanding qualified businesses in the specially benefited zone.

2. Reduce or eliminate any license or franchise tax,fee or service charge which would otherwise be imposed against qualifiedbusinesses within the specially benefited zone.

3. Develop and carry out, alone or where feasible withthe participation of one or more designated neighborhood organizations asprovided in NRS 274.250, programs toimprove needed governmental services within the specially benefited zone.

4. Develop and carry out a plan to:

(a) Ensure the availability of resources to assistresidents of the specially benefited zone in their own efforts to improve thecondition of property and the availability and quality of public serviceswithin the zone.

(b) Provide or seek assistance for persons or businessesdisplaced as a result of undertakings or other activities conducted pursuant tothis chapter.

5. Provide financing by tax increment pursuant to chapter 278C of NRS.

6. Cooperate with any other governmental agency toprovide any other incentive likely to encourage private investment within thespecially benefited zone.

(Added to NRS by 1983, 1981; A 1997, 2561; 2005, 1767)

NRS 274.250 Powersof designating municipality: Delegation of services to private organizations.

1. A designating municipality may, by ordinance,delegate one or more of the services or functions described in subsection 2 toone or more qualified private organizations. For the purposes of this section,an organization is qualified if:

(a) Its constituency is composed substantially ofresidents of the specially benefited zone;

(b) It has a governing body elected by itsconstituents;

(c) It meets the requirements of paragraph (3) ofsubsection (c) of section 501 of the Internal Revenue Code; and

(d) It exists primarily to perform services within thezone for the benefit of its residents and businesses.

2. A designated neighborhood organization may be authorizedto provide the following services or perform the following functions incoordination with the municipality:

(a) Provide or contract for the provision of publicservices including, but not limited to:

(1) The establishment of patrols to watch forcrime in neighborhoods within the specially benefited zone.

(2) The establishment of volunteer day carecenters.

(3) The organization of recreational activitiesfor children living within the zone.

(4) Garbage collection.

(5) Street maintenance and improvement.

(6) The maintenance and improvement of parks,bridges and water and sewer lines.

(7) Projects for the conservation of energy.

(8) Health and clinical services.

(9) Programs to combat drug abuse.

(10) Programs to assist older residents of thezone.

(11) The rehabilitation, renovation, operationand maintenance of housing for persons of low and moderate income.

(12) Other types of public services as providedby ordinance.

(b) Exercise authority for the enforcement of any code,permit or procedure for licensing within a specially benefited zone.

(c) Provide a forum for action by business, labor andgovernment on innovations for the zone.

(d) Apply for regulatory relief under NRS 274.110, 274.120 and 274.130.

(e) Perform such other functions as the responsiblegovernmental entity may deem appropriate, including offerings and contracts forinsurance with businesses within the zone.

(f) Agree with local governments to provide thesepublic services within the zone by contracting with private firms andorganizations, where feasible and prudent.

(g) Solicit and receive contributions to improve thequality of life in the specially benefited zone.

(Added to NRS by 1983, 1977)

NRS 274.260 Proposalby business to participate in benefits of zone; contents of proposal. Any business that wishes to participate in the benefitsspecifically authorized for qualified businesses in this chapter must firstsubmit a proposal to the governing body of the designating municipality. Theproposal must contain the following information:

1. An estimate of the number of new employees whom thebusiness intends to hire for its place of business within the speciallybenefited zone and an estimate of the amount of payroll these hirings will addto the business.

2. An estimate of the amount to be invested by the businessto establish, expand, renovate or occupy a place of business within thespecially benefited zone, including investment in new buildings, additions, orimprovements to existing buildings, machinery, equipment, furniture, fixturesand inventory.

3. A listing of the business current investment, ifany, in a place of business within the specially benefited zone as of the dateof the submission of the proposal. The business shall review and keep currentthe estimates and listings required under this subsection to reflect materialchanges, and any agreement entered into pursuant to NRS 274.270 must set forth final estimatesand listings as of the time the agreement is entered.

(Added to NRS by 1983, 1982)

NRS 274.270 Investigationby governing body of proposal by business to participate in benefits of zone;requirements for hiring certain employees; review of compliance with agreement;filing of information.

1. The governing body shall investigate the proposalmade by a business pursuant to NRS 274.260,and if it finds that the business is qualified by financial responsibility andbusiness experience to create and preserve employment opportunities in thespecially benefited zone and improve the economic climate of the municipalityand finds further that the business did not relocate from a depressed area inthis State or reduce employment elsewhere in Nevada in order to expand in thespecially benefited zone, the governing body may, on behalf of themunicipality, enter into an agreement with the business, for a period of notmore than 20 years, under which the business agrees in return for one or moreof the benefits authorized in this chapter and NRS 374.643 for qualified businesses, asspecified in the agreement, to establish, expand, renovate or occupy a place ofbusiness within the specially benefited zone and hire new employees at least 35percent of whom at the time they are employed are at least one of thefollowing:

(a) Unemployed persons who have resided at least 6months in the municipality.

(b) Persons eligible for employment or job trainingunder any federal program for employment and training who have resided at least6 months in the municipality.

(c) Recipients of benefits under any state or countyprogram of public assistance, including, without limitation, temporaryassistance for needy families, Medicaid and unemployment compensation who haveresided at least 6 months in the municipality.

(d) Persons with a physical or mental handicap who haveresided at least 6 months in the State.

(e) Residents for at least 1 year of the areacomprising the specially benefited zone.

2. To determine whether a business is in compliancewith an agreement, the governing body:

(a) Shall each year require the business to file proofsatisfactory to the governing body of its compliance with the agreement.

(b) May conduct any necessary investigation into theaffairs of the business and may inspect at any reasonable hour its place ofbusiness within the specially benefited zone.

If thegoverning body determines that the business is in compliance with the agreement,it shall issue a certificate to that effect to the business. The certificateexpires 1 year after the date of its issuance.

3. The governing body shall file with theAdministrator, the Department of Taxation and the Employment Security Divisionof the Department of Employment, Training and Rehabilitation a copy of eachagreement, the information submitted under paragraph (a) of subsection 2 andthe current certificate issued to the business under that subsection. Thegoverning body shall immediately notify the Administrator, the Department ofTaxation and the Employment Security Division of the Department of Employment,Training and Rehabilitation whenever the business is no longer certified.

(Added to NRS by 1983, 1982; A 1993, 1548; 1997,2336; 1999, 2237)

NRS 274.280 Procedureto amend ordinance designating zone.

1. The terms of a certified ordinance designating aspecially benefited zone may be amended to:

(a) Alter the boundaries of the zone;

(b) Limit or repeal financial incentives or benefitsprovided in the ordinance; or

(c) Alter the date for terminating the zone.

Theamendment does not become effective unless the Governor issues an amendedcertificate for the zone. Upon the adoption of the amendment, the municipalityshall promptly file with the Administrator an application for approval thereof,containing substantially the same information as required for an applicationunder NRS 274.170 insofar as material tothe proposed changes. The municipality must hold a public hearing on theproposed changes as specified in NRS 274.160.

2. The Governor shall approve or disapprove a proposedamendment to a certified specially benefited zone within 90 days after hisreceipt of the application from the municipality. The Governor may not approvechanges in a zone which are not in conformity with this chapter or with otherapplicable laws. If the Governor issues an amended certificate for a speciallybenefited zone, the amended certificate, together with the amended designatingordinance, must be filed, recorded and transmitted as provided in NRS 274.200.

(Added to NRS by 1983, 1975)

NRS 274.290 Terminationof zone. A specially benefited zone may be terminatedby joint action of the Governor and the designating municipality. The designatingmunicipality shall conduct at least one public hearing within the zone beforeadopting its ordinance of termination. The mayor of the designating city or thechairman of the governing body of the designating county shall execute with theAdministrator a joint agreement for termination of the zone. The termination ofa specially benefited zone does not become effective until at least 6 monthsafter the execution of the terminating agreement, which must be filed in theOffice of the Secretary of State.

(Added to NRS by 1983, 1975)

NRS 274.300 Effectupon benefits if zone terminated or modified or benefits reduced or eliminated. Where a specially benefited zone is terminated under NRS 274.290, or the length of the term orthe area of a zone is reduced, or the benefits available in a zone are reducedor eliminated:

1. All benefits previously extended within the zonepursuant to this chapter, or pursuant to any other law of this State providingbenefits specifically to qualified businesses within specially benefited zones,remain in effect for the original stated term of the zone with respect to thosequalified businesses operating within the zone on the effective date of thetermination or amendment, except as provided in subsection 2.

2. A qualified business which is proposed or which hasproposed an expansion is entitled to the benefits previously applicable withinthe zone for the original stated term of the zone, if the business establishesthat:

(a) The proposed business or expansion has beencommitted to be located within the zone;

(b) Substantial and binding financial obligations havebeen made towards the development of the business or the expansion; and

(c) Those commitments have been made in reasonablereliance on the benefits and programs which were to have been applicable to thebusiness by reason of the zone, including in the case of a reduction in theterm of a zone, the original length of the term.

(Added to NRS by 1983, 1976)

ABATEMENTS FOR BUSINESSES IN CERTAIN AREAS OF ECONOMICDEVELOPMENT

NRS 274.310 Abatementfor locating business in certain areas of economic development: Endorsementrequired; application; requirements for approval; certificate of eligibility;regulations; judicial review.

1. A person who intends to locate a business in thisState within:

(a) A historically underutilized business zone, asdefined in 15 U.S.C. 632;

(b) A redevelopment area created pursuant to NRS 279.382 to 279.685, inclusive;

(c) An area eligible for a community development blockgrant pursuant to 24 C.F.R. Part 570; or

(d) An enterprise community established pursuant to 24C.F.R. Part 597,

may submit arequest to the governing body of the county, city or town in which the businesswould operate for an endorsement of an application by the person to theCommission on Economic Development for a partial abatement of one or more ofthe taxes imposed pursuant to chapter 361 or 374 of NRS. The governing body of the county,city or town shall provide notice of the request to the board of trustees ofthe school district in which the business would operate. The notice must setforth the date, time and location of the hearing at which the governing bodywill consider whether to endorse the application.

2. The governing body of a county, city or town shalldevelop procedures for:

(a) Evaluating whether such an abatement would bebeneficial for the economic development of the county, city or town.

(b) Issuing a certificate of endorsement for anapplication for such an abatement that is found to be beneficial for theeconomic development of the county, city or town.

3. A person whose application has been endorsed by thegoverning body of the county, city or town, as applicable, pursuant to thissection may submit the application to the Commission on Economic Development.The Commission shall approve the application if the Commission makes thefollowing determinations:

(a) The business is consistent with:

(1) The State Plan for Industrial Developmentand Diversification that is developed by the Commission pursuant to NRS 231.067; and

(2) Any guidelines adopted pursuant to the StatePlan.

(b) The applicant has executed an agreement with theCommission which states that the business will, after the date on which acertificate of eligibility for the abatement is issued pursuant to subsection4:

(1) Commence operation and continue in operationin the historically underutilized business zone, as defined in 15 U.S.C. 632,redevelopment area created pursuant to NRS279.382 to 279.685, inclusive, areaeligible for a community development block grant pursuant to 24 C.F.R. Part 570or enterprise community established pursuant to 24 C.F.R. Part 597 for a periodspecified by the Commission, which must be at least 5 years; and

(2) Continue to meet the eligibilityrequirements set forth in this subsection.

Theagreement must bind successors in interest of the business for the specifiedperiod.

(c) The business is registered pursuant to the laws ofthis State or the applicant commits to obtain a valid business license and allother permits required by the county, city or town in which the business willoperate.

(d) The applicant invested or commits to invest aminimum of $500,000 in capital.

4. If the Commission on Economic Development approvesan application for a partial abatement, the Commission shall immediatelyforward a certificate of eligibility for the abatement to:

(a) The Department of Taxation;

(b) The Nevada Tax Commission; and

(c) If the partial abatement is from the property taximposed pursuant to chapter 361 of NRS, thecounty treasurer of the county in which the business will be located.

5. The Commission on Economic Development may adoptsuch regulations as the Commission determines to be necessary or advisable tocarry out the provisions of this section.

6. An applicant for an abatement who is aggrieved by afinal decision of the Commission on Economic Development may petition forjudicial review in the manner provided in chapter233B of NRS.

(Added to NRS by 2005, 639)

NRS 274.320 Abatementfor expanding business in certain areas of economic development: Endorsementrequired; application; requirements for approval; certificate of eligibility;regulations; judicial review.

1. A person who intends to expand a business in thisState within:

(a) A historically underutilized business zone, asdefined in 15 U.S.C. 632;

(b) A redevelopment area created pursuant to NRS 279.382 to 279.685, inclusive;

(c) An area eligible for a community development blockgrant pursuant to 24 C.F.R. Part 570; or

(d) An enterprise community established pursuant to 24C.F.R. Part 597,

may submit arequest to the governing body of the county, city or town in which the businessoperates for an endorsement of an application by the person to the Commissionon Economic Development for a partial abatement of the taxes imposed on capitalequipment pursuant to chapter 374 of NRS. Thegoverning body of the county, city or town shall provide notice of the requestto the board of trustees of the school district in which the business operates.The notice must set forth the date, time and location of the hearing at whichthe governing body will consider whether to endorse the application.

2. The governing body of a county, city or town shalldevelop procedures for:

(a) Evaluating whether such an abatement would bebeneficial for the economic development of the county, city or town.

(b) Issuing a certificate of endorsement for anapplication for such an abatement that is found to be beneficial for theeconomic development of the county, city or town.

3. A person whose application has been endorsed by thegoverning body of the county, city or town, as applicable, pursuant to thissection may submit the application to the Commission on Economic Development.The Commission shall approve the application if the Commission makes thefollowing determinations:

(a) The business is consistent with:

(1) The State Plan for Industrial Developmentand Diversification that is developed by the Commission pursuant to NRS 231.067; and

(2) Any guidelines adopted pursuant to the StatePlan.

(b) The applicant has executed an agreement with theCommission which states that the business will, after the date on which acertificate of eligibility for the abatement is issued pursuant to subsection4:

(1) Continue in operation in the historicallyunderutilized business zone, as defined in 15 U.S.C. 632, redevelopment areacreated pursuant to NRS 279.382 to 279.685, inclusive, area eligible for acommunity development block grant pursuant to 24 C.F.R. Part 570 or enterprisecommunity established pursuant to 24 C.F.R. Part 597 for a period specified bythe Commission, which must be at least 5 years; and

(2) Continue to meet the eligibilityrequirements set forth in this subsection.

Theagreement must bind successors in interest of the business for the specifiedperiod.

(c) The business is registered pursuant to the laws ofthis State or the applicant commits to obtain a valid business license and allother permits required by the county, city or town in which the businessoperates.

(d) The applicant invested or commits to invest aminimum of $250,000 in capital equipment.

4. If the Commission on Economic Development approvesan application for a partial abatement, the Commission shall immediatelyforward a certificate of eligibility for the abatement to:

(a) The Department of Taxation; and

(b) The Nevada Tax Commission.

5. The Commission on Economic Development may adoptsuch regulations as the Commission determines to be necessary or advisable tocarry out the provisions of this section.

6. An applicant for an abatement who is aggrieved by afinal decision of the Commission on Economic Development may petition forjudicial review in the manner provided in chapter233B of NRS.

(Added to NRS by 2005, 640)

NRS 274.330 Abatementfor businesses in certain areas of economic development that hire dislocatedworkers: Endorsement required; application; requirements for approval;certificate of eligibility; regulations; judicial review.

1. A person who owns a business which is locatedwithin an enterprise community established pursuant to 24 C.F.R. Part 597 inthis State may submit a request to the governing body of the county, city ortown in which the business is located for an endorsement of an application bythe person to the Commission on Economic Development for a partial abatement ofone or more of the taxes imposed pursuant to chapter361 or 374 of NRS. The governing body ofthe county, city or town shall provide notice of the request to the board oftrustees of the school district in which the business operates. The notice mustset forth the date, time and location of the hearing at which the governingbody will consider whether to endorse the application.

2. The governing body of a county, city or town shalldevelop procedures for:

(a) Evaluating whether such an abatement would bebeneficial for the economic development of the county, city or town.

(b) Issuing a certificate of endorsement for anapplication for such an abatement that is found to be beneficial for theeconomic development of the county, city or town.

3. A person whose application has been endorsed by thegoverning body of the county, city or town, as applicable, pursuant to thissection may submit the application to the Commission on Economic Development.The Commission shall approve the application if the Commission makes thefollowing determinations:

(a) The business is consistent with:

(1) The State Plan for Industrial Developmentand Diversification that is developed by the Commission pursuant to NRS 231.067; and

(2) Any guidelines adopted pursuant to the StatePlan.

(b) The applicant has executed an agreement with theCommission which states that the business will, after the date on which acertificate of eligibility for the abatement is issued pursuant to subsection4:

(1) Continue in operation in the enterprisecommunity for a period specified by the Commission, which must be at least 5years; and

(2) Continue to meet the eligibilityrequirements set forth in this subsection.

Theagreement must bind successors in interest of the business for the specifiedperiod.

(c) The business is registered pursuant to the laws ofthis State or the applicant commits to obtain a valid business license and allother permits required by the county, city or town in which the businessoperates.

(d) The business:

(1) Employs one or more dislocated workers whoreside in the enterprise community; and

(2) Pays such employee or employees a wage ofnot less than 100 percent of the federally designated level signifying povertyfor a family of four persons and provides medical benefits to the employee oremployees and his or their dependents.

4. If the Commission on Economic Development approvesan application for a partial abatement, the Commission shall:

(a) Determine the percentage of employees of thebusiness which meet the requirements of paragraph (d) of subsection 3 and granta partial abatement equal to that percentage; and

(b) Immediately forward a certificate of eligibilityfor the abatement to:

(1) The Department of Taxation;

(2) The Nevada Tax Commission; and

(3) If the partial abatement is from theproperty tax imposed pursuant to chapter 361of NRS, the county treasurer of the county in which the business is located.

5. The Commission on Economic Development:

(a) Shall adopt regulations relating to the minimumlevel of benefits that a business must provide to its employees to qualify foran abatement pursuant to this section.

(b) May adopt such other regulations as the Commissiondetermines to be necessary or advisable to carry out the provisions of thissection.

6. An applicant for an abatement who is aggrieved by afinal decision of the Commission on Economic Development may petition forjudicial review in the manner provided in chapter233B of NRS.

7. As used in this section, dislocated worker meansa person who:

(a) Has been terminated, laid off or received notice oftermination or layoff from employment;

(b) Is eligible for or receiving or has exhausted hisentitlement to unemployment compensation;

(c) Has been dependent on the income of another familymember but is no longer supported by that income;

(d) Has been self-employed but is no longer receivingan income from self-employment because of general economic conditions in thecommunity or natural disaster; or

(e) Is currently unemployed and unable to return to aprevious industry or occupation.

(Added to NRS by 2005, 641)

 

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