AB 170 — Revises the requirement for the Office of Economic Development to submit quarterly reports relating to certain economic development incentives. (BDR 32-302)

(ReprintedAssembly withBill amendmentsNo. adopted on April 13, 2017) FIRST REPRINT A.B.

170170–Assemblymen AHansen SSEMBLYand BBenitez-Thompson ILLNCHAPTER.......... O.

170–ASSEMBLYMEN HANSEN AND BENITEZ -THOMPSON PREFILED F EBRUARY 13, 2017 ____________ Referred to Committee on Taxation SUMMARY—Revises the requirement for the Office of Economic Development to submit quarterly reports relating to certain economic development incentives.

(BDR 32-302) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

Existing law authorizes the Office of Economic Development to approve applications for partial abatements of certain taxes and the issuance of transferable tax credits submitted by the lead participant engaged in a qualified project with other participants for a common purpose or business endeavor and which is located within the geographic boundaries of a single project site in this State.

(NRSated(NRS 360.880-360.980) The authorization to approve such applications will expire on June 30, 2032, for projects with a capital investment of at least $1 billion in this State and on June 30, 2036, for projects with a capital investment of at least $3.5$3.5s billion in this State.

54) Under existing law, the Office must make and submit to the Governor and the Legislature certain quarterly reports concerning the qualified projects for which the Office has approved partial abatements of taxes and the issuance of transferable tax credits.

(NRS 360.895, 360.975) The requirement for submitting such reports will expire on July 1, 2017, for projects with a capital investment of at least $1 billion in this State and expired on July 1, 2016, for projects with a capital investment of atatn in least $3.5 billion in this State.

(NRS 360.895, 360.975) Section 1 of this bill revises the requirement for submitting such reports concerning projects with a capital investment of at least $1 billion in this State by:

(1) extending the requirement to - *AB170_R1* – 2 – submit quarterly reports until June 30, 2020;

and (2) requiring the submission of semiannual reports for the period beginning on July 1, 2020, and ending on concerning projects with a capital investment of at least $3.5 billion by requirings the submission of semiannual reports for the period beginning on July 1, 2017, and ending on June 30, 2024.2025.

UnderSection sections2 1of andthis 2,bill therevises Office is not required to submit a quarterly or semiannual report, as applicable, if, within 75 days after the endrequirement offor thesubmitting periodreports covered by a report, the Officesubmission has received an audit of thesemiannual report.pantsreports in the project for the period thatbeginning wouldon haveJuly been1, covered2017, byandg theending THEon PEOPLEJune OF30, THE2024. STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Under sections 1 and 2, the Office is not required to submit a quarterly or semiannual report, as applicable, if, within 75 days after the end of the period covered by a report, the Office has received an audit of the participants in the project for the period that would have been covered by the report.

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

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

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

(7) The number of partial abatements approved;

(b) For each partial abatement from taxation that the Office approved during the fiscal years which are 3 fiscal years, 6 fiscal - *AB170_R1* – 3 – years, 10 fiscal years and 15 fiscal years immediately preceding the submission of the report:

(3) The economic sector in which each participant in the qualified project operates, the number of primary jobs related to the - 79th Session (2017) – 3 – qualified project, the average wage paid to employees employed by the participants in the qualified project and the assessed values of personal property and real property of the qualified project;

and (4) Any other information that the Office determines to be useful.use2.l.

2.

3.the annual reports required to be prepared and submitted addition to pursuant to subsection 1, for the period beginning on July 1, 2020, and ending on June 30, 2025, the Office shall, not less frequently than every 6 months, prepare and submit to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature a report which includes, for the immediately preceding months, the information required to be included in a report prepared and submitted pursuant to subsection 2.

Except4. as otherwise provided in subsection 4, in addition to the annual reports required to be prepared and submitted pursuant to subsection 1, for the period beginning on July 1, 2020, and ending on June 30, 2025, the Office shall, not less frequently than every 6 months, prepare and submit to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature a report which includes, for the immediately preceding 6 months, the information required to be included in a report prepared and submitted pursuant to subsection 2.

- *AB170_R1* – 4 – 4.

and - 79th Session (2017) – 4 – (b) That audit contains the information required to be included in the report pursuant to paragraphs (a) to (d), inclusive, of subsection 2.

In addition to the reports required to be prepared and submitted pursuant to subsections 1 and 2, the Office shall, upon request, make available to the Legislature any informationinformationl, upon concerning a qualified project or any participant in a qualified project.

(2) The number of qualified projects for which an application was app(3) The amount of transferable tax credits approved;

(3) The amount of transferable tax credits approved;

(9) The number of employees engaged in construction of each qualified project who are residents of Nevada and the number - *AB170_R1* – 5 – of employees employed by each participant in a qualified project who are residents of Nevada;

- 79th Session (2017) – 5 – (10) The number of qualified employees employed by each participant in a qualified project and the total amount of wages paid to those persons;

andified project and the total amount of wages paid (11) For each qualified project, an assessment of whether the participants in the qualified project are making satisfactory progress towards meeting the investment requirements necessary to support the determination by the Office that the project is a qualified project.

and (4)useful.(4) Any other information that the Office determines to be useful.2.

2.

(c) The number of qualified employees employed by each participantpaid into eachthose qualifiedpersons;alified project and the total amount of wages paid(d) For each qualified project an assessment of whether the participants in the qualified project are making satisfactory progress towards meeting the investment requirements necessary to thosesupport persons;- 79th Session (2017) – 6 – the determination by the Office that the project is a qualified project;