Nevada 2017 Regular Session Status: Enacted

AB 5 — Provides for the creation of certain local improvement districts. (BDR 22-233)

Last action — Approved by the Governor. Chapter 267.

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced November 15, 2016. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

402 added · 430 removed

402 line(s) added, 430 removed.

→
Previous
Latest
(Reprinted with amendments adopted on May 22, 2017) SECOND REPRINT A.B.
Assembly Bill No.
5 A SSEMBLY B ILLN O.
5–Committee on Government Affairs CHAPTER..........
5–COMMITTEE ON GOVERNMENT AFFAIRS (O N BEHALF OF THE OFFICE OF ENERGY IN THEO FFICE OF THE GOVERNOR ) PREFILED N OVEMBER 15, 2016 ____________ Referred to Committee on Government Affairs SUMMARY—Provides for the creation of certain local improvement districts.
(BDR 22-233) FISCAL NOTE:
EfEffect on the State:
No.:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Existing law sets forth the procedures for a governing body to acquire, improve, equip, operate or maintain local improvement districts that include various types of projects, including energy efficiency improvement projects and renewable energy projects.
Existing law sets forth the procedures for a governing body to acquire, various types of projects, including energy efficiency improvement projects and renewable energy projects.
(NRS 271.265-271.630) This bill provides for the that includes an energy efficiency improvement project or a renewable energydistrict project.
(NRS 271.265-271.630) This bill provides for the creation by a local government, without an election, of a local improvement district that includes an energy efficiency improvement project or a renewable energy project.
Section 1.1 of this bill authorizes a local government to create such a district on certain commercial or industrial real property.
Section 1.1 of this bill authorizes a local government to create such a district on certain requirements for a local government to create a district, including obtaining signed consent from the owner of any tract on which an energy efficiency improvement project or renewable energy project will be located and from certain lenders who hold a mortgage or other lien on a property on which such a project will be located.
Section 1.2 of this bill establishes certain requirements for a local government to create a district, including obtaining signed consent from the owner of any tract on which an energy efficiency lenders who hold a mortgage or other lien on a property on which such a projectn will be located.
Sections 2 and 3 of this bill revise the definitions of “energy efficiency improvement project” and “renewable energy project.” Section 4 of this bill provides a procedure for an owner of a tract to object to the inclusion of the tract - *AB5_R2* – 2 – within a district.
improvement project” and “renewable energy project.” Section 4 of this billncy provides a procedure for an owner of a tract to object to the inclusion of the tract within a district.
Section 5 of this bill establishes requirements for the proceeds of or a renewable energy project.
Section 5 of this bill establishes requirements for the proceeds of bonds used to pay certain costs related to an energy efficiency improvement project or a renewable energy project.
Section 6 of this bill revises requirements for thet interest rate of bonds sold to defray certain costs for local improvement districts.
Section 6 of this bill revises requirements for the interest rate of bonds sold to defray certain costs for local improvement districts.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
(1) A residential dwelling that contains fewer than five individual dwelling units;
- 79th Session (2017) – 2 – (1) A residential dwelling that contains fewer than five individual dwelling units;
or (2) Property financed by a government-guaranteed financing program that prohibits the subordination of the government’s interest in the property or otherwise prohibits a contract under sections 1.1 to 1.6, inclusive, of this act.
or (2) Property financed by a government-guaranteed financing program that prohibits the subordination of the contract under sections 1.1 to 1.6, inclusive, of this act.s a (b) That meet one of the following requirements:
(b) That meet one of the following requirements:
- *AB5_R2* – 3 – 3.
3.
The improvements to or installations within a district created pursuant to this section must not be owned by a municipality but shall be deemed to be the property of the owner of the tract upon which the improvement or installation is located.
The improvements to or installations within a district municipality but shall be deemed to be the property of the owner of the tract upon which the improvement or installation is located.
(a) “Energy audit” means a formal evaluation of the energy consumption of a permanent building or any structural improvement to real property that is consistent with the requirements of ASTM International Standard E2797, “Standard Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction,” the ASHRAE Level 2 or 3 guidelines for energy audits or any comparable energy assessment guidelines.
(a) “Energy audit” means a formal evaluation of the energy consumption of a permanent building or any structural improvement to real property that is consistent with the requirements of ASTM International Standard E2797, “Standard - 79th Session (2017) – 3 – Practice for Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction,” the ASHRAE Level 2 or 3 guidelines for energy audits or any comparable energy assessment guidelines.
(b) “Qualified service company” has the meaning ascribed to it in NRS 333A.060.
it in NRS 333A.060.ervice company” has the meaning ascribed to Sec.
Sec.
- *AB5_R2* – 4 – (I) A signed copy of each contract between an owner of the tract and each contractor described in section 1.4 of this act pursuant to which the contractor agrees to construct, acquire and install the installation or improvement identified in the consent at a total price which does not exceed the limitation set forth in section 1.4 of this act and which contains any terms, including, without limitation, application fees and costs, the total amount financed, annual percentage rate, total amount paid over the life of any assessment, any appraisal fees, bond-related costs, annual administrative fees, closing costs, credit reporting fees and recording fees, and such other terms not inconsistent with the provisions of sections 1.1 to 1.6, inclusive, of this act or with the resolution adopted pursuant to section 1.6 of this act, as may be agreed upon by the owner of the tract and the contractor and is acceptable to the governing body;
the tract and each contractor described in section 1.4 of this act pursuant to which the contractor agrees to construct, acquire and install the installation or improvement identified in the consent at a total price which does not exceed the limitation set forth in section 1.4 of this act and which contains any terms, including, without limitation, application fees and costs, the total amount financed, annual percentage rate, total amount paid over the life of any assessment, any appraisal fees, bond-related costs, annual administrative fees, closing costs, credit reporting fees and recording fees, and such other terms not inconsistent with the provisions of sections 1.1 to 1.6, inclusive, of this act or with the resolution adopted pursuant to section 1.6 of this act, as may be agreed upon by the owner of the tract and the contractor and is acceptable to the governing body;
and (II) A deposit in an amount determined in the manner specified in the resolution adopted pursuant to section 1.6 of this act, which may be refunded if the project to which the consent relates is completed and is financed with assessments levied pursuant to this chapter within the period specified in the resolution.
and - 79th Session (2017) – 4 – (II) A deposit in an amount determined in the manner specified in the resolution adopted pursuant to section 1.6 of this act, which may be refunded if the project to which the consent relates is completed and is financed with assessments levied resolution.
(d) The outstanding amount owed on all recorded instruments which are liens against any tract included in the district does not exceed 90 percent of the estimated fair market value of the property assessed, as defined by the governing body, taking into account the imposition of the liens for assessments pursuant to sections 1.1 to 1.6, inclusive, of this act and the additional value added to the tract by a project financed pursuant to sections 1.1 to 1.6, inclusive, of this act.
this chapter within the period specified in the (d) The outstanding amount owed on all recorded instruments which are liens against any tract included in the district does not exceed 90 percent of the estimated fair market value of the property assessed, as defined by the governing body, taking into account the imposition of the liens for assessments pursuant to sections 1.1 to 1.6, inclusive, of this act and the additional value added to the tract by a project financed pursuant to sections 1.1 to 1.6, inclusive, of this act.
Each consent provided pursuant to paragraph (b) of subsection 1 and each amendment thereto must be recorded in the office of the county recorder and, once recorded, is binding on the owner who signed the consent and any other person who holds any interest in the tract to which the consent relates and who signed the consent.
Each consent provided pursuant to paragraph (b) of subsection 1 and each amendment thereto must be recorded in the office of the county recorder and, once recorded, is binding on the owner who signed the consent and any other person who holds signed the consent.
- *AB5_R2* – 5 – 3.
tract to which the consent relates and who 3.
The laws of this State relating to public bidding, public works or public procurement are not applicable to contracts for construction executed pursuant to this subsection.
The laws of this - 79th Session (2017) – 5 – State relating to public bidding, public works or public procurement are not applicable to contracts for construction executed pursuant to this subsection.
The total contract price of any improvement or installation must not exceed 80 percent of the estimated maximum benefit for the tract as stated in the consent, as it may be amended from time to time, unless the owner of the property to be assessed:
The total contract price of any improvement or installation must not exceed 80 percent of the as it may be amended from time to time, unless the owner of thet, property to be assessed:
(b) A reserve of money for bonds issued for the district, the method of funding the reserve and the disposition of any interest earned upon or the principal of the reserve that is not needed to repay any bonds or interim warrants issued for the purposes of financing an energy efficiency improvement project or renewable energy project within the district;
(b) A reserve of money for bonds issued for the district, the method of funding the reserve and the disposition of any interest earned upon or the principal of the reserve that is not needed to repay any bonds or interim warrants issued for the purposes of energy project within the district;ovement project or renewable (c) Any other security for those bonds or interim warrants, and the method of determining the term of the bonds in compliance with NRS 271.515;
- *AB5_R2* – 6 – (c) Any other security for those bonds or interim warrants, and the method of determining the term of the bonds in compliance with NRS 271.515;
(g) Any limitation on the amount of the contract price, as a percentage of the estimated maximum benefit, that is lower than the limitation prescribed by section 1.4 of this act;
- 79th Session (2017) – 6 – (g) Any limitation on the amount of the contract price, as a percentage of the estimated maximum benefit, that is lower than the limitation prescribed by section 1.4 of this act;
(h) Any sources, other than the proceeds of assessments, that will be used to pay:
(h) Any sources, other than the proceeds of assessments, that will b(1) Theto pcost of construction and installation of improvements financed pursuant to sections 1.1 to 1.6, inclusive, of this act;
(1) The cost of construction and installation of improvements financed pursuant to sections 1.1 to 1.6, inclusive, of this act;
(a) Must contain or incorporate by reference an exhibit describing each tract to be assessed, the type of improvement or installation to be financed for each tract and the estimated maximum benefit as stated in the consent provided pursuant to paragraph (b) of subsection 1 of section 1.2 of this act.
(a) Must contain or incorporate by reference an exhibit describing each tract to be assessed, the type of improvement or maximum benefit as stated in the consent provided pursuant to paragraph (b) of subsection 1 of section 1.2 of this act.
- *AB5_R2* – 7 – (b) May be adopted as if an emergency exists by a vote of not less than two-thirds of all the voting members of the governing body.
(b) May be adopted as if an emergency exists by a vote of not less than two-thirds of all the voting members of the governing body.
Show all 59 changed rows (19 more)
Previous
Latest
Sec.
- 79th Session (2017) – 7 – Sec.
271.199 “Renewable energy project” means any improvement to real property, and facilities and equipment used to generate electricity from renewable energy to offset customer load in whole or in part on the [premises,] real property, and all appurtenances and incidentals necessary, useful or desirable for any such [real property,] improvements, facilities and equipment [.] , and which improvement has a useful life, as estimated by a governing body, of not less than 10 years.
271.199 “Renewable energy project” means any improvement to real property, and facilities and equipment used to generate electricity from renewable energy to offset customer load in whole incidentals necessary, useful or desirable for any such [realances and property,] improvements, facilities and equipment [.] , and which improvement has a useful life, as estimated by a governing body, of not less than 10 years.
4.
creating a district pursuant to section 1.1 of this act objects inof writing within the time and in the manner provided by NRS 271.380, the tract must be removed from the assessment roll, and the municipality shall not finance the project located on the tract unless the objecting owner withdraws his or her objection in writing within the time specified by the governing body.
If any owner of a tract which is assessed for the purpose of creating a district pursuant to section 1.1 of this act objects in writing within the time and in the manner provided by NRS 271.380, the tract must be removed from the assessment roll, and the municipality shall not finance the project located on the tract - *AB5_R2* – 8 – unless the objecting owner withdraws his or her objection in writing within the time specified by the governing body.
(a) Be adopted as if an emergency existed.
- 79th Session (2017) – 8 – (a) Be adopted as if an emergency existed.
(b) Become effective at any time when an emergency ordinance of the municipality may go into effect.
(b) Become effective at any time when an emergency ordinance of (c) Be adopted by not less than two-thirds of all of the voting members of the governing body, excluding from any such computation any vacancy on the governing body and any member thereon who may vote only to break a tie vote.
(c) Be adopted by not less than two-thirds of all of the voting members of the governing body, excluding from any such computation any vacancy on the governing body and any member thereon who may vote only to break a tie vote.
¬ No such inspection or review or receipt of a waiver imposes any liability on the municipality for any constructed, acquired or installed energy efficiency improvement project or renewable energy project or any unconstructed, unacquired or uninstalled item, any defect in any such item, any failure of any party to pay for any item, or any lien, including, without limitation, any mechanic’s or materialman’s lien.
¬ No such inspection or review or receipt of a waiver imposes any installed energy efficiency improvement project or renewableor energy project or any unconstructed, unacquired or uninstalled item, any defect in any such item, any failure of any party to pay for any item, or any lien, including, without limitation, any mechanic’s or materialman’s lien.
- *AB5_R2* – 9 – Sec.
Sec.
2.
- 79th Session (2017) – 9 – 2.
or (b) At the option of the governing body, below par at a discount not exceeding 9 percent of the principal amount and except as otherwise provided in this paragraph and in NRS 99.067, 271.487 and 271.730, at a price which will not result in an effective interest rate which exceeds by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted if the maximum or any lesser amount of discount permitted by the governing body has been capitalized as a cost of the project.
or not exceeding 9 percent of the principal amount and except asscount otherwise provided in this paragraph and in NRS 99.067, 271.487 and 271.730, at a price which will not result in an effective interest rate which exceeds by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted if the maximum or any lesser amount of discount permitted by the governing body has been capitalized as a cost of the project.
If the bonds bear an amount of interest that is included in gross income for the purposes of calculating federal income tax pursuant to the provisions of Title 26 of the United States Code, the net effective interest rate must not exceed twice the maximum interest rate as provided in this paragraph.
If the bonds bear an amount of interest that is included in gross income for the purposes of calculating federal income tax pursuant to the provisions of Title of the United States Code, the net effective interest rate must not exceed twice the maximum interest rate as provided in this paragraph.
Except as otherwise provided in NRS 271.730, if a governing body creates a district pursuant to the provisions of NRS 271.710, the governing body or chief financial officer of the municipality shall, in consultation with a financial advisor or the underwriter of the bonds, fix the rate of interest of the bonds at a rate of interest such that the principal and interest due on the bonds in each year, net of any interest capitalized from the proceeds of the bonds, will not exceed the amount of principal and interest to be collected on the special assessments during that year.
Except as otherwise provided in NRS 271.730, if a governing body creates a district pursuant to the provisions of NRS 271.710, the governing body or chief financial officer of the underwriter of the bonds, fix the rate of interest of the bonds at a rate of interest such that the principal and interest due on the bonds in each year, net of any interest capitalized from the proceeds of the bonds, will not exceed the amount of principal and interest to be collected on the special assessments during that year.
- *AB5_R2* – 10 – 6.
6.
Any unexpended balance of the proceeds of the bond remaining after the completion of the project for which the bonds were issued must be paid immediately into the fund created for the payment of the principal of the bonds and must be used therefor, subject to the provisions as to the times and methods for their payment as stated in the bonds and the proceedings authorizing their issuance.
Any unexpended balance of the proceeds of the bond remaining after the completion of the project for which the bonds were issued must be paid immediately into the fund created for the - 79th Session (2017) – 10 – payment of the principal of the bonds and must be used therefor, subject to the provisions as to the times and methods for their payment as stated in the bonds and the proceedings authorizing their issuance.
A purchaser of the bonds is not responsible for the application of the proceeds of the bonds by the municipality or any of its officers, agents and employees.
A purchaser of the bonds is not responsible for the application of the proceeds of the bonds by the municipality or any of 10.
10.
ofThe governing body may enter into a contract to sell special assessment bonds at any time but, if the governing body so contracts before it awards a construction contract or otherwise contracts for acquiring or improving the project, the governing body may terminate the contract to sell the bonds, if:
The governing body may enter into a contract to sell special assessment bonds at any time but, if the governing body so contracts before it awards a construction contract or otherwise contracts for acquiring or improving the project, the governing body may terminate the contract to sell the bonds, if:
H - *AB5_R2*
~~~~~ 17 - 79th Session (2017)
⬇ Download PDF
View plain text versions (4)

Action History

  1. Approved by the Governor. Chapter 267.

  2. Enrolled and delivered to Governor.

  3. Senate Amendment No. 799 concurred in. To enrollment.

  4. In Assembly.

  5. Read third time. Passed, as amended. Title approved. (Yeas: 21, Nays: None.) To Assembly.

  6. From printer. To re-engrossment. Re-engrossed. Second reprint .

  7. Read second time. Amended. (Amend. No. 799.) To printer.

  8. Placed on Second Reading File.

  9. From committee: Amend, and do pass as amended.

  10. Read first time. Referred to Committee on Government Affairs. To committee.

  11. In Senate.

  12. Read third time. Passed, as amended. Title approved. (Yeas: 34, Nays: 8.) To Senate.

  13. From printer. To engrossment. Engrossed. First reprint .

  14. Read second time. Amended. (Amend. No. 618.) To printer.

  15. Placed on Second Reading File.

  16. From committee: Amend, and do pass as amended.

  17. Read first time. To committee.

  18. From printer.

  19. Prefiled. Referred to Committee on Government Affairs. To printer.

Sponsors

  • Government Affairs · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Government Affairs

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

Show all 66 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

environment energy
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors AB 5?
AB 5 is sponsored by Government Affairs.
What is the current status of AB 5?
This bill has been enacted into law. Introduced November 15, 2016. Enacted.
Where can I track AB 5?
Track AB 5 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on AB 5

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of AB 5

Last checked for changes 2 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →