AB 120 — Revises provisions relating to school construction. (BDR 34-779)

(Reprinted with amendments adopted on April 21, 2017) FIRST REPRINT A.B.

Under existing law, the board of trustees of a school district whose population is less than 55,000 (currently counties other than Clark and Washoe Counties and Carson City) are authorized to request the board of county commissioners of thethed amountcounty of the tax is limited to $1,600impose pera unittax ofon certain newresidential construction orict.in the school district.

The amount of the tax is limited to $1,600 per unit of certain new construction or development and the proceeds are required to be used to construct, remodel and make additions to school buildings.

(NRS 387.331) Section 1 of this bill requires the board of trustees of a school district in any county to provide to the board of county commissioners a statement of the impact on the school district of the proposed construction or development of an apartment house, five or more residential dwelling units or five or more lots for mobile homes within the school district.all school districts and requires the board of county commissioners to approve such to a request unless the board finds that the request was not justified.

SectionAdditionally, 1section also1: extends the authority to request the imposition of the tax to all school districts and requires the board of county commissioners to approve such a request unless the board finds that the proceeds of the residential construction tax may be used to include modernization of school buildings and the acquisition of furniture, fixtures, equipment and necessary appurtenances and incidentals.

With(1) certainexpands exceptions, a person who wishes to subdivide land is required under existing law to prepare and file a tentative map with the planningpurposes commissionfor ofwhich the cityproceeds or county, as applicable, or its designated representative or, if there is no planning commission, with the clerk of the governingresidential bodyconstruction oftax themay citybe orused theto boardinclude -modernization *AB120* – 2 – of countyschool commissioners,buildings asand applicable.necessary appurtenances;

(NRS(2) 278.330)restricts Withinthe 10area daysor afterareas suchin filing,which aproceeds copyare ofauthorized theto tentative map must be forwardedused to theonly boardthose ofareas trusteesspecified ofin the schoolrequest districtfor within which the proposedimposition subdivisionof isthe located.tax;

Withinand 15(3) daysspecifies aftera receiptdeadline offor the tentativecollection map, the board of trustees is required to notify the planningtax. commission or the governing body of the city or the board of county proposed subdivision.

Finally, section 1 exempts the construction or development of certain low-income housing from the residential construction tax and the requirement of an impact statement.

- *AB120_R1* – 2 – With certain exceptions, a person who wishes to subdivide land is required under existing law to prepare and file a tentative map with the planning commission of the city or county, as applicable, or its designated representative or, if there is no planning commission, with the clerk of the governing body of the city or the board of county commissioners, as applicable.

(NRS 278.330) Within 10 days after such filing, a copy of the tentative map must be forwarded to the board of trustees of the after receipt of the tentative map, the board of trustees is required to notify the planning commission or the governing body of the city or the board of county commissioners, as applicable, if a site for a school is needed within the area of the proposed subdivision.

(NRS 278.346) Section 2 of this bill imposesrequires additionalthe qualificationssubdivider forto suchconsult awith schoolthe site,planning namelythe that:setting aside of a site.

Section 2 imposes additional qualifications for such a school site, namely that:

and (2) the physical characteristics are suitable for use as a school site and for construction of a school in a manner that is economically sound and feasible.feasible;

Section 2 also requires theschool board of trustees and the(3) subdivider to negotiate over the share of the costs of infrastructure required for the development of a school on the site thatis benefitcompatible thewith other tracts in the subdivision,adjoining whichneighborhoods areand requiredapplicable toland beuse paidplans byand theregulations. subdivider.

InSection a2 countyalso whoserequires populationthe isboard 100,000of ortrustees moreand butthe lesssubdivider thanto 700,000negotiate (currentlyover Washoe County), if the schoolsite districtthat hasbenefit notthe purchasedother landtracts forin a school site is approved, the subdividersubdivision, iswhich noare longer required under existing law to setbe asidepaid theby land for the schoolsubdivider. district.

SectionIn 2a extendscounty thiswhose periodpopulation is 100,000 or more but less than 700,000 (currently Washoe County), if the school district has not purchased land for settinga school site from a subdivider within 5 years after the final map that shows the school site is approved, the subdivider is no longer required under existing law to set aside the land tofor 10the years.school district.

UnderSection 2 extends this period for setting asiUnder existing law, if land purchased by a school district from a subdivider has not been placed in use as a school site within 10 years after the date of purchase, the land is required to be offered for sale to the subdivider or the successor in interest of the subdivider.

(NRS 278.346) Section 2 extends this period for placing land in use as a school site to 2015 years.

[The] Whenever an apartment house or a project involving five or more residential dwelling units or five or more lots for mobile homes is proposed to be constructed or developed, the - *AB120_R1* – 3 – planning commission of the city or county in which the construction or development is proposed or its designated representative or, if there is no planning commission, the clerk or other designated representative of the city or county, as applicable, shall, within 3010 days after the filing of an initial application for a permit or other authorization for the proposed construction or - *AB120* – 3 – development, notify, in writing, the board of trustees of [any] the school district [whose population is less than 55,000] within which the proposed construction or development is located.

The board of trustees may request , in writing, that the board of county commissioners of the county in which the school district is located impose a tax on residential construction in the school district to construct, remodel , modernize and make additions to school buildings [.] and tofor acquire furniture, fixtures, equipment and any appurtenance or incidental deemed necessary by the board of trustees for school buildings.

Whenever[Whenever the board of trustees takes that action, it shall notify the board of county commissioners and shallshall] Such a request must specify the area or areas of the county to be served by the buildings to be erected , remodeledremodeled, , modernized or enlarged.enlarged [.

[3.]3.] Theand boardinclude, ofwithout countylimitation, commissioners shall approve a requestmap madeshowing by the boardarea or areas of trusteesthe pursuantcounty to thisbe subsectionserved unlessand thea boardlist of countyany commissionersexisting makesschools a finding that themay requestbe isaffected. not justified.

The board of county commissioners shall approve a request made by the board of trustees pursuant to this subsection unless the board of county commissioners makes a finding that the request is not justified.

The[The] Before the time at which a certificate of occupancy or other final authorization for the construction or development is issued or at such other time as is specified in the ordinance imposing the tax, the board of county commissioners shall collect the tax so imposed, in the areas of the county to which it applies, and may require that administrative costs, not to exceed 1 percent, be paid from the amount collected.

The money collected pursuant to subsection 5 must be deposited[deposited withwith] submitted to the county treasurer [in the school district’s fund for capital projects to be held and expended in the same manner as other money deposited in that fund.] and accounted for separatelytransfer into the county generalschool fund.district.

TheAny money mayreceived onlyby bethe usedcounty to- construct,*AB120_R1* remodel,– modernize4 and– make additions to school buildingsdistrict andpursuant to acquirethis furniture,section fixtures,must equipmentbe andaccounted anyfor appurtenanceseparately or incidental deemed necessary by the boardcounty of trustees for school buildings.district.

The money may only be used to construct, remodel, modernize and make additions to school buildings and for any appurtenance deemed necessary by the board of trustees for school buildings within the area or areas of the county specified in the request submitted by the board of trustees to the board of county commissioners pursuant to subsection 3.

7.

Nothing in this section shall be construed to prevent the planning commission of the city or county in which the construction or development is proposed or its designated representative or, if there is no planning commission, the clerk or other designated representative of the city or county, as applicable, from issuing permits or other authorization for the construction or development during the period in which the determination of whether to impose the tax and, if so, the amount of the tax to be made.

8.

The provisions of this section do not apply to the construction or development of residential housing that is affordable to persons of low income on property which is subject to a covenant, condition or restriction contained in a deed, contract or other legal instrument which:

(a) Restricts the property to use for low-income housing for not less than 20 years;

(b) Restricts the amount of rent that may be charged to a tenant who occupies a unit of the residential housing;

and (c) Prohibits the sale, transfer or other conveyance of the property during the term of the covenant, condition or restriction unless the covenant, condition or restriction is binding upon the person to whom the property is conveyed.

The planning commission or its designated representative or, if there is no planning commission, the clerk or other designated representative of the governing body shall, not more than 10 days after the tentative map is filed pursuant to the provisions of subsection 2 of NRS 278.330, forward a copy of the tentative map to the board of trustees of the school district within - *AB120* – 4 – which the proposed subdivision is located.

(a) The subdivider , in consultation with the planning commission of the city or county in which the proposed subdivision is located or its designated representative or, if there is - *AB120_R1* – 5 – no planning commission, the clerk or other designated representative of the city or county, as applicable, shall, except as otherwise provided in subsection 8, set aside a site [of] within the proposed subdivision:

and (3) The physical characteristics of which are suitable for use as a school site and for construction of a school in a manner that is economically sound and feasible.feasible;

and (4) Which is compatible with the adjoining neighborhoods and land use plans and regulations applicable to the area.

If any land purchased by the school district pursuant to the provisions of subsection 2 has not been placed in use as a school site at the end of [10] 2015 years from the date of purchase, the land must - *AB120* – 5 – be offered to the subdivider or the successor in interest of the - *AB120_R1* – 6 – subdivider at a sale price equal to the fair market value of the land at the time of the offer, as determined by an independent appraisal paid for by the board [.] of trustees.