AB 246 — Revises provisions relating to the creation of a local improvement district and tax increment area. (BDR 22-705)

(ReprintedAssembly withBill amendmentsNo. adopted on April 19, 2017) FIRST REPRINT A.B.

246246–Assemblymen AKramer; SSEMBLY BILL N O.

246–ASSEMBLYMENBenitez-Thompson, KRAMERDaly, ;Hansen and Titus (by request) CHAPTER..........

BENITEZ- THOMPSON , DALY , HANSEN AND TITUS (BY REQUEST ) M ARCH 1, 2017 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the creation of a local improvement district and tax increment area.

(BDR 22-705) 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.

Existing law authorizes the governing body of any county, city or unincorporated town to create an improvement district for the acquisition of certain projects, including a park project, street project or commercial area vitalization project, and to finance the cost of any such project through the issuance of bonds and the levy of assessments upon property in the improvement district.

(Chapternds(Chapter 271 of NRS) Two or more governmental entities are authorized under existing law to enter into a cooperative or interlocal agreement in certain circumstances to perform a governmental function.

(NRS 277.045-277.188) Existing law authorizesauthorizeso a county to exercise its powers relating to local improvement projects for a project or benefited property that is within the boundaries of a city if the city in which that territory is located consents in an interlocal agreement to the exercise of those authority to enter into such an interlocal agreement to two or more counties.e Therefore, a county would be authorized under section 1 to exercise its powers relating to local improvement projects for a project or benefited property that is within the boundaries of another county if the county in which that territory is located consents in an interlocal agreement to the exercise of those powers within its boundaries.

increment(NRS area271.015) forSection the1 purpose of creatingthis abill specialextends accountthe forauthority theto paymententer oftaxinto -such *AB246_R1*an –interlocal 2agreement –to bondstwo or othermore securities.counties.

TheTherefore, designation of a taxcounty incrementwould areabe byauthorized theunder governingsection body1 providesto forexercise theits allocationpowers ofrelating ato portionlocal ofimprovement theprojects taxesfor levieda uponproject taxableor benefited property inthat theis taxlocated incrementconsents areain eachan yearinterlocal agreement to pay the bondexercise requirements of loans,those refinancepowers thewithin project.its boundaries.

(ChapterExisting 278Claw of NRS) Section 2 of this bill authorizes the governing bodiesbody of twoa ormunicipality more municipalities whose boundaries are contiguous to enterdesignate intoa antax interlocalincrement orarea cooperative agreement for the creationpurpose of creating a taxspecial incrementaccount area for the acquisitionpayment or improvement of abonds project whose boundaries encompass all or partother ofsecurities. each municipality.

SectionThe 2designation furtherof providesa thattax ifincrement area by the governing arebody authorizedprovides for the allocation of a portion of the taxes levied upon taxable property in the tax increment area each year to takepay jointthe actionbond requirements of loans, money advanced to complyor withindebtedness certainincurred proceduresby the municipality to finance or governing bodies of two or more municipalities whose boundaries are contiguous toe enter into an interlocal or cooperative agreement for thebodiesthe creation of a tax increment area;area for the acquisition or improvement of a project whose boundaries encompass all or part of each municipality.

Section 2 further provides that if the governing bodies of the municipalities enter into such an agreement:

(1) the governing bodies are authorized to take joint action to comply with certain procedures for the creation of a tax increment area;

- 79th Session (2017) – 2 – EXPLANATION – Matter in bolded italics is new;

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

To a city for a project or benefited property outside the boundaries of the city, if the county or other city within whose boundaries the project or benefited property is located consents to the exercise of powers under this chapter within its boundaries, in an interlocal agreement entered into pursuant to NRS 277.045 to 277.180, inclusive.

- *AB246_R1* – 3 – Sec.

A tax increment area created pursuant to this section must be administered as provided in the interlocal or - 79th Session (2017) – 3 – cooperative agreement, notwithstanding any provision of this cha2.erIfchapter the governing bodies of two or more municipalities enter into an interlocal or cooperative agreement pursuant to subsection 1, the governingcontrary. bodies may, in accordance with the procedures set forth in the interlocal or cooperative agreement:

(a)2. Jointly take any action required to be taken by a governing body for the creation of a district by the governing body pursuant to NRS 278C.160, 278C.170, 278C.180, 278C.210, 278C.220, 278C.230, 278C.270 and 278C.280, except that each governing body must adopt an ordinance pursuant to NRS 278C.220 in order to create the tax increment area;

If the governing bodies of two or more municipalities enter into an interlocal or cooperative agreement pursuant to subsection set forth in the interlocal or cooperative agreement:rocedures (a) Jointly take any action required to be taken by a governing body for the creation of a district by the governing body pursuant to NRS 278C.160, 278C.170, 278C.180, 278C.210, 278C.220, 278C.230, 278C.270 and 278C.280, except that each governing body must adopt an ordinance pursuant to NRS 278C.220 in order to create the tax increment area;

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