AB 70 — Revises provisions concerning the use of certain revenues in a redevelopment area. (BDR 22-413)

(ReprintedAssembly withBill amendmentsNo. adopted on April 20, 2017) FIRST REPRINT A.B.

7070–Committee ASSEMBLYon BGovernment ILLNAffairs O.CHAPTER..........

70–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE CITY OF LAS V EGAS ) PREFILED N OVEMBER 17, 2016 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions concerning the use of certain revenues in a redevelopment area.

(BDR 22-413) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

The Community Redevelopment Law authorizes the city council, board of county commissioners or other legislative body of a city or county to declare the need for a redevelopment agency to function in the community.

The CommunityCommunityre regard to the eliminationRedevelopment ofLaw blightgrants in a redevelopment area in the community.h (Chapter 279 of NRS) Under existing law, a redevelopment agency incertain apowers cityand induties awith countyregard whose population is 700,000 or more (currently Clark County) is authorized to adopt, in certain circumstances, an ordinance which provides for the recalculationelimination of theblight total assessed value of the taxable property in a redevelopment area forin certainthe purposes.community.

If(Chapter such279 of NRS) Under existing law, a redevelopment agency adoptsin sucha ancity ordinancein anda receivescounty certainwhose affectedpopulation byis the700,000 ordinance,or existingmore law(currently requiresClark thatCounty) notis lessauthorized thanto 18adopt, percentin ofcertain thecircumstances, revenuean receivedordinance onwhich orprovides afterfor the effectiverecalculation date of the ordinancetotal beassessed setvalue asideof tothe improvetaxable andproperty preservein existinga public educational facilities which are located within the redevelopment area orfor whichcertain servepurposes. pupils who reside within the redevelopment area.

(NRSIf 279.676)such Sectiona 3redevelopment ofagency thisadopts billsuch limitsan ordinance and receives certain revenue from taxes on the amounttaxable ofproperty located in the redevelopment area revenue thatreceived muston or after the effective date of the ordinance be set aside totof 18the percentimprove and removespreserve theexisting requirementpublic thateducational facilities which are located within the educationalredevelopment alsoarea beor used:which serve pupils who reside within the redevelopment area.

(NRS 279.676) Section 3 of this bill limits the amount of the revenue that must be set aside to 18 percent and removes the requirement that the educational facilities be existing facilities.

Section 3 further provides that such revenue may also be used:

(2) to - *AB70_R1* – 2 – support public educational activities and programs;

SectionSectUnder 1 of this bill defines the term “public educational activities and programs.” Under existing law, a city whose population is 500,000 or more (currently thethems.” City of Las Vegas) is required, under certain circumstances, to set aside not less than 18 percent of the revenue from taxes levied upon the taxable property in a redevelopment area received on or after October 1, 2011, but before March 6, 2031, to:

- 79th Session (2017) – 2 – Under existing law, the city council of a city whose population is 220,000 or more (currentlybut theless Citythan of500,000 Henderson)located isin required,a undercounty certainwhose circumstances,population tois 700,000 or set aside not less than 18 percent of the revenues received from taxes on the taxable property located in the redevelopment area affected by the ordinance on or after the effective date of the ordinance to improve and preserve existing public educational facilities which are located within the redevelopment area or which serve pupils who reside within the redevelopment area.

(NRS 279.6855) Section 5 of this bill limitsrequirement thethat amount of the revenueeducational thatfacilities must be setexisting asidefacilities, toexpands 18thethe percent, removes the purposes for which money may be spent in connection with such facilities, andheand authorizes such spending for facilities, educational programs and activities which are located in or within 1 mile of the redevelopment area or which serve pupils who reside in or within 1 mile of the redevelopment area.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

As used in this section, “wrap-around services” means integrated student supports and supplemental services provided to - *AB70_R1* – 3 – a pupil that help create an environment conducive to learning and assist the pupil in making the transition from early childhood education through postsecondary education and into the workforce.

Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable property in the redevelopment area each year by or for the benefit of the State, any city, county, district or other public corporation, after the effective date of the - 79th Session (2017) – 3 – ordinance approving the redevelopment plan, must be divided as follows:fol(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment area as shown upon the assessment roll used in connection with the taxation of the property by the taxing agency, last equalized before the effective date of the ordinance, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for such taxing agencies on all other property are paid.

(a) That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed value of the taxable property in the redevelopment area as shown upon the assessment roll used in connection with the taxation of the property by the taxing agency, last equalized before the effective date of the ordinance, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for such taxing agencies on all other property are paid.

If property which was shown on the assessment roll used to determine the amount of taxes allocated to the taxing agencies is transferred to the State and becomes exempt from taxation, the assessed valuation of the exempt property as shown on the assessment roll last equalized before the date on which the property was transferred to the State must be subtracted from the assessed valuation used to determine the amount of revenue allocated to the taxing agencies.

(b) Except as otherwise provided in paragraphs (c) and (d) and NRS 540A.265, that portion of the levied taxes each year in excess of the amount set forth in paragraph (a) must be allocated to and when collected must be paid into a special fund of the redevelopment agency to pay the costs of redevelopment and to pay the principal of and interest on loans, money advanced to, or - *AB70_R1* – 4 – indebtedness, whether funded, refunded, assumed, or otherwise, incurred by the redevelopment agency to finance or refinance, in whole or in part, redevelopment.

(1) The assessment roll last equalized before the effective date of the ordinance approving the redevelopment plan;

ororffective (2) The assessment roll last equalized before the effective date of an ordinance adopted pursuant to subsection 5, ¬ whichever occurs later, less the assessed valuation of any exempt property subtracted pursuant to paragraph (a), all of the taxes levied - 79th Session (2017) – 4 – and collected upon the taxable property in the redevelopment area must be paid into the funds of the respective taxing agencies.

When the redevelopment plan is terminated pursuant to the provisions of NRS 279.438 and 279.439 and all loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the redevelopment area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.

(a) In a county whose population is 100,000 or more or a city whose population is 150,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.

10 percent of the total assessed valuation of the (b) In a county whose population is 30,000 or more but less than 100,000 or a city whose population is 25,000 or more but less than 150,000, an amount equal to the combined tax rates of the taxing - *AB70_R1* – 5 – agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.

¬ If the revenue paid to a redevelopment agency must be limited pursuant to paragraph (a), (b) or (c) and the redevelopment agency has more than one redevelopment area, the redevelopment agency - 79th Session (2017) – 5 – shall determine the allocation to each area.

3.redevelopment agency any amount which was being paid beforey to a July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advanced or any other indebtedness, whether funded, refunded, assumed or otherwise incurred.

The taxing agencies shall continue to pay to a redevelopment agency any amount which was being paid before July 1, 1987, and in anticipation of which the agency became obligated before July 1, 1987, to repay any bond, loan, money advanced or any other indebtedness, whether funded, refunded, assumed or otherwise incurred.

A redevelopment agency may adopt an ordinance pursuant to this subsectionirrevocable.nly only once, and the election to adopt such an ordinance is irrevocable.6.

6.An agency which adopts an ordinance pursuant to subsection and which receives revenue pursuant to paragraph (b) of subsection 1 from taxes on the taxable property located in the redevelopment area affected by the ordinance shall set aside [not less than] 18 percent of that revenue received on and after the effective date of the ordinance to [improve] :

An agency which adopts an ordinance pursuant to subsection 5 and which receives revenue pursuant to paragraph (b) of subsection 1 from taxes on the taxable property located in the redevelopment area affected by the ordinance shall set aside [not - *AB70_R1* – 6 – less than] 18 percent of that revenue received on and after the effective date of the ordinance to [improve] :

or (c) Increase, improve, preserve or enhance public educational facilities and support public educational activities and programs, ¬ which are located in or within 1 mile of the redevelopment area or which serve pupils who reside in or within 1 mile of the - 79th Session (2017) – 6 – redevelopment area.

For each fiscal year, the agency shall prepare a written report concerning the amount of money expended for the purposes set forth in this subsection and shall, on or before November 30 of each year, submit a copy of the report to the Director of the Legislative Counsel Bureau for transmittal to the Legislative Commission, if the report is received during an odd-odd-e numbered year, or to the next session of the Legislature, if the report is received during an even-numbered year.