AB 400 — Revises provisions governing economic development. (BDR 22-803)

8.decision of the Office of Economic Development may petition foral judicial review in the manner provided in chapter 233B of NRS.

An applicant for an abatement who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

- *AB400_R2* – 5 – (a) A historically underutilized business zone, as defined in 15 U.S.C.

Part 597, - 80th Session (2019) – 5 –  may submit a request to the governing body of the county, city or town in which the business would operate for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

The notice must set forth the date, time and location of the hearing at which the governing body will considersubsection, whether“local tosales endorseand use taxes” means the application.taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053;

andandy (2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.

- *AB400_R2* – 6 – (1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

§ - 80th Session (2019) – 6 – 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570 or enterprise community established pursuant to 24 C.F.R.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and allalle other permits required by the county, city or town in which the business will operate.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to the chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the - *AB400_R2* – 7 – amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

- 80th Session (2019) – 7 – 6.

(a) A historically underutilized business zone, as defined in 15 U.S.C.

§ 632;632;orically underutilized business zone, as defined in 15 (b) A redevelopment area created pursuant to chapter 279 of NRS;

(b) A redevelopment area created pursuant to chapter 279 of NRS;

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

- *AB400_R2* – 8 – (b) Issuing a certificate of endorsement for an application for such an abatement that is found to be beneficial for the economic development of the county, city or town.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic - 80th Session (2019) – 8 – Development.

(1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

(d) The applicant invested or commits to invest a minimum of $250,000 in capital equipment that will be retained at the location of the business in the historically underutilized business zone, as defined in 15 U.S.C.

- *AB400_R2* – 9 – 4.

- 80th Session (2019) – 9 – 5.

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

If a business whose partial abatement has been approved pursuantpur(a) toTo thismeet sectionthe andeligibility isrequirements infor effectthe ceases:partial abatement;

(a) To meet the eligibility requirements for the partial abatement;

8.decision of the Office of Economic Development may petition foral judicial review in the manner provided in chapter 233B of NRS.

An applicant for an abatement who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

- *AB400_R2* – 10 – (c) An area eligible for a community development block grant pursuant to 24 C.F.R.

Part 597, - 80th Session (2019) – 10 –  may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of the local sales and use taxes imposed on capital equipment .

The notice must set forth the date, time and location of the hearing at which the governing body will consider whether“local tosales endorseand use taxes” means the application.taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

As used in this subsection, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053;

andandy (2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.

- *AB400_R2* – 11 – (I) Continue in operation in the historically underutilized business zone, as defined in 15 U.S.C.

§ 632, redevelopment area - 80th Session (2019) – 11 – created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and allalle other permits required by the county, city or town in which the business operates.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

- *AB400_R2*80th Session (2019) – 12 – 7.

Part 597 in this State may submit a request to the governing body of the county, city or town in which the business is located for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

3.governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development.

- 80th Session (2019) – 13 – (1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

and - *AB400_R2* – 13 – (2) That the business will, after the date on which the abatement becomes effective:

 The agreement must bind successors in interest of the business for the specified period.

successors in interest of the business (c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates.

and (b) Immediately forward a certificate of eligibility for the abatementabateme(1) to:The Department of Taxation;

(1) The Department of Taxation;

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

- 80th Session (2019) – 14 – 6.

or - *AB400_R2* – 14 – (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada TaxTaxore the Commission determines that the business has substantially complied with the requirements of this section.

9.who:.

As used in this section, “dislocated worker” means a person who:(a) Has been terminated, laid off or received notice of termination or layoff from employment;

(a) Has been terminated, laid off or received notice of termination or layoff from employment;

- 80th Session (2019) – 15 – Sec.

Part 597 in this State may submit a request to the governing body of the county, city or town in which the business is located for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of - *AB400_R2* – 15 – the taxes imposed pursuant to chapter 361 [or 374] of NRS [.] or the local sales and use taxes.

The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates.

The notice mustmustf set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development.makes the following determinations:ve the application if the Office (a) The business is consistent with:

The Office shall approve the application if the Office makes the following determinations:

(a) The business is consistent with:

and - 80th Session (2019) – 16 – (2) That the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 4:

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and allalle - *AB400_R2* – 16 – other permits required by the county, city or town in which the business operates.

(2)(3) TheIf Nevadathe Taxpartial Commission;abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business is located.

and (3) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business is located.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the - 80th Session (2019) – 17 – failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement notnot6. been approved until the date of payment of the tax.

6.The Office of Economic Development:nt of the tax.

The(a) OfficeShall adopt regulations relating to the minimum level of Economicbenefits Development:that a business must provide to its employees to qualify for an abatement pursuant to this section.

- *AB400_R2* – 17 – (a) Shall adopt regulations relating to the minimum level of benefits that a business must provide to its employees to qualify for an abatement pursuant to this section.

(d) Has been self-employed but is no longer receiving an income from self-employment because of general economic conditions in thethe(e) communityIs orcurrently naturalunemployed disaster;and unable to return to a previous industry or occupation.

orSecs. (e) Is currently unemployed and unable to return to a previous industry or occupation.

Sec.9 and 10.

9.

10.

(Deleted by amendment.) Sec.

As used in this paragraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property - 80th Session (2019) – 18 – sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is to be located or expanded, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

(1) The State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053;

andandomic -Development *AB400_R2* – 18 – (2) Any guidelines adopted by the Executive Director of the Office to implement the State Plan for Economic Development.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all otherbusiness permitsoperates.ired required by the county, city or town in which the (d) Except as otherwise provided in subsection 4 or 5, the average hourly wage that will be paid by the business operates.to its new employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(d)(e) ExceptThe asbusiness otherwisewill, providedby inthe subsectioneighth 4calendar orquarter 5,following the averagecalendar hourlyquarter wagein thatwhich willthe beabatement paidbecomes byeffective, theoffer businessa tohealth itsinsurance newplan for all employees inthat thisincludes Statean isoption atfor leasthealth 100insurance percentcoverage for dependents of the averageemployees, statewideand hourlythe wagehealth ascare establishedbenefits by the Employmentbusiness Securityoffers Divisionto ofits theemployees Departmentin ofthis Employment,State Training- and80th RehabilitationSession on(2019) July– 119 of– eachwill fiscalmeet year.the minimum requirements for health care benefits established by the Office.

(e) The business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, offer a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees, and the health care benefits the business offers to its employees in this State will meet the minimum requirements for health care benefits established by the Office.

(1) The business will have 50 or more full-time employees on the payroll of the business by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

- *AB400_R2* – 19 – (2) Establishing the business will require the business to make, not later than the date which is 2 years after the date on which the abatement becomes effective, a capital investment of at least $1,000,000 in this State in capital assets that will be retained at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(1) The business will have 10 or more full-time employees on the payroll of the business by the eighth calendar quarterquarterees following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

- 80th Session (2019) – 20 – (h) If the business is an existing business, the business meets at least one of the following requirements:

(I) Except as otherwise provided in sub-subparagraph (II), a county whose population is 100,000 or more or a city whose population is 60,000 or more, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by twenty-fivetwenty-fiveiscal year in employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective;

or - *AB400_R2* – 20 – (II) A county whose population is less than 100,000, an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or a city whose population is less than 60,000, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by six employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after (2) The business will expand by making a capital investment in this State, not later than the date which is 2 years after the date on which the abatement becomes effective, in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective, and the capital investment will be in capital assets that will be retained at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(2) The business will expand by making a capital investment in this State, not later than the date which is 2 years after the date on which the abatement becomes effective, in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective, and the capital investment will be in capital assets that will be retained at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

- 80th Session (2019) – 21 – (I) County assessor of the county in which the business will expand, if the business is locally assessed;

Notwithstanding the provisions of subsection 2, the Office of Economic(a) Development:Shall not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

(a) Shall not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

- *AB400_R2* – 21 – (c) May, if the Office determines that such action is necessary:

(a) The applicant intends to locate or expand in a county in which the rate of unemployment is 7 percent or more and thethey in average hourly wage that will be paid by the applicant to its new employees in this State is less than 70 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

- 80th Session (2019) – 22 – (c) The applicant intends to locate in a county but has already received a partial abatement pursuant to this section for locating that business in that county.

Notwithstanding any other provision of law, if the Office of Economic Development approves an application for a partial abatement pursuant to this section, in determining the types of taxes imposed on a new or expanded business for which the partial abatement will be approved and the amount of the partial abatement:

- *AB400_R2* – 22 – (1) Approve an abatement of the taxes imposed pursuant to chapter 361 of NRS which exceeds 25 percent of the taxes on personal property payable by the business each year.

(b) If the new or expanded business is located in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the business to its new employees in this State is less than 100 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year, the Office shall not:

As used in this subparagraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of - 80th Session (2019) – 23 – tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the new or expanded business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.] 6.

(b)(c) TheIf Nevadathe Taxpartial Commission;abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer.

and (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer.

or - *AB400_R2* – 23 – (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this section.subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

and - 80th Session (2019) – 24 – (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.

(1) The capital investment that a new business must make to meet the requirement set forth in paragraph (f) or (g) of subsection 2;

andandhe requirement set forth in paragraph (f) or (g) of subsection (2) Any security that a business is required to post to qualify for a partial abatement pursuant to this section.

- *AB400_R2* – 24 – Sec.

(a)(b) NewExpanded business pursuant to chapter 361 ,or 363B oroff 374 of NRS.

(b) Expanded business pursuant to chapter 361 or 363B of NRS or the local sales and use taxes.

- 80th Session (2019) – 25 – (1) The State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053;

(2) State the date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

(d) Except as otherwise provided in subsection 4 or 5, the average hourly wage that will be paid by the business to its new employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment Security - *AB400_R2* – 25 – Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

(e) The business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, offer a health insurance plan for all employees that includes an option for health insurance coverage for dependents of the employees, and the health care benefits the business offers to its employees in this State will meet the minimum requirements for health care benefits established by the Office.

(1) The business will have 75 or more full-time employees on the payroll of the business by the eighth calendar quarter - 80th Session (2019) – 26 – following the calendar quarter in which the abatement becomes effective who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

(g) Except as otherwise provided in NRS 361.0687, if the business is a new business in a county whose population is less than 100,000, in an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of AgricultureAgricultures and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or in a city whose population is less than 60,000, the business meets at least one of the following requirements:

- *AB400_R2* – 26 – (2) The business will expand by making a capital investment in this State in an amount equal to at least 20 percent of the value of the tangible property possessed by the business in the immediatelyimmediatelyue of preceding fiscal year.

- 80th Session (2019) – 27 – 3.

(b) Shall consider the level of health care benefits provided by the business to its employees, the projected economic impact of the business and the projected tax revenue of the business after deductingded(c) projectedMay, revenueif from the abatedOffice taxes.determines that such action is necessary:

(c) May, if the Office determines that such action is necessary:

(b) The applicant intends to locate or expand in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the applicant to its new - *AB400_R2* – 27 – employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year.

- 80th Session (2019) – 28 – 5.

(a) If the new or expanded business is located in a county in which the rate of unemployment is 7 percent or more and the average hourly wage that will be paid by the business to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training andandt Security Rehabilitation on July 1 of each fiscal year, the Office shall not:

(2) Approve an abatement of the taxes imposed pursuant to chaptertax 363Botherwise ofdue NRSpursuant whichto exceedsNRS 25363B.110.t percent of the amount of tax[(3) otherwiseApprove duean abatement of the taxes imposed pursuant to chapter 374 of NRS 363B.110.which exceeds the local sales and use taxes.

[(3)As Approveused anin abatementthis ofsubparagraph, “local sales and use taxes” means the taxes imposed pursuanton tothe chaptergross 374receipts of NRSany retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which exceedsthe new or expanded business is located, except the localtaxes salesimposed by the Sales and useUse taxes.Tax Act and the Local School Support Tax Law.] 6.

As - *AB400_R2* – 28 – used in this subparagraph, “local sales and use taxes” means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the new or expanded business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.] 6.

- 80th Session (2019) – 29 – (a) The Department;

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirementsreq8.reIf ofa subsectionbusiness 2.whose partial abatement has been approved pursuant to this section and is in effect ceases:

8.

If a business whose partial abatement has been approved pursuant to this section and is in effect ceases:

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

9.

A county treasurer:

and - *AB400_R2* – 29 – (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.

- 80th Session (2019) – 30 – (1) The capital investment that a new business must make to meet the requirement set forth in paragraph (f) or (g) of subsection 2;

An applicant for a partial abatement pursuant to this section who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the mannermanneromic provided in chapter 233B of NRS.

2.and except as otherwise provided in subsections 3 and 4, the Office of Economic Development shall approve an application for a partial abatement if the Office makes the following determinations:

Notwithstanding the provisions of any law to the contrary and except as otherwise provided in subsections 3 and 4, the Office of Economic Development shall approve an application for a partial abatement if the Office makes the following determinations:

- *AB400_R2* – 30 – (2) States the date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application;

(3) States that the business will, after the date on which a certificate of eligibility for the partial abatement is issued pursuant to subsection 5, continue in operation in this State for a period - 80th Session (2019) – 31 – specified by the Office, which must be not less than 5 years, and will continue to meet the eligibility requirements set forth in this subsection;

(c) The business owns, operates, manufactures, services, maintains, tests, repairs, overhauls or assembles an aircraft or any component of an aircraft;

or (2) An existing business, that it will increase its number of full-time employees on the payroll of the business in this State by 3 percent or three employees, whichever is greater, within 1 year after receiving its certificate of eligibility for a partial abatement;

- *AB400_R2* – 31 – (2) The business will maintain and possess in this State tangible personal property having a value of not less than $5,000,000 during the period of partial abatement.

(3) The business develops, refines or owns a patent or other intellectual property, or has been issued a type certificate by the - 80th Session (2019) – 32 – Federal Aviation Administration pursuant to 14 C.F.R.

(a) Shall approve or deny an application submitted pursuant to this section and notify the applicant of its decision not later than 45 daysday(b) afterMust receivingnot:ving the application.

(b) Must not:

6.or an existing business whose partial abatement is in effect shall,on upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

or - *AB400_R2* – 32 – (b) Operation before the time specified in the agreement described in paragraph (a) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from personal property taxes, to the appropriate - 80th Session (2019) – 33 – county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement required to be repaid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

12.

As used in this section:

- *AB400_R2* – 33 – (c) “Full-time employee” means a person who is in a permanent position of employment and works an average of 30 hours per week - 80th Session (2019) – 34 – during the applicable period set forth in subparagraph (3) of paragraph (a) of subsection 2.

(e) “Personal property taxes” means any taxes levied on personal property by the State or a local government pursuant to chapterchaSec. 361 of NRS.

Sec.

(2) State the date on which the abatement becomes effective, as agreed to by the applicant and the Office of Economic Development,Office received the application;arlier than the date on which mustthe not(3) beState earlierthat thanthe data center will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Office receivedof Economic Development, which must be at least 10 years, and will continue to meet the application;eligibility requirements set forth in this subsection;

(3) State that the data center will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Office of Economic Development, which must be at least 10 years, and will continue to meet the eligibility requirements set forth in this subsection;

- *AB400_R2*80th Session (2019) – 3435 – (d) If the applicant is seeking a partial abatement for a period of not more than 10 years, the applicant meets the following requirements:

(1) The data center will, by not later than the date that is 5 years after the date on which the abatement becomes effective, have or have added 10 or more full-time employees who are residents of Nevada and who will be employed at the data center and will continue to employ 10 or more full-time employees who are residents of Nevada at the data center until at least the date which is 10yea(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective.effective, a cumulative capital investment of at least $25,000,000 in capital assets that will be used or located at the data center.

(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $25,000,000 in capital assets that will be used or located at the data center.

(I) The data center will, by not later than the date which is 2 years after the date on which the abatement becomes effective, provide a health insurance plan for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

and (II) The health care benefits provided to employees employed at the data center will meet the minimum requirements for healthDevelopment careby benefitsregulation establishedpursuant to subsection 12.onomic (4) At least 50 percent of the employees engaged in the construction of the data center are residents of Nevada, unless waived by the Executive Director of the Office of Economic Development byupon regulationproof pursuantsatisfactory to subsectionthe 12.Executive Director of the Office of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(4)(e) AtIf least 50 percent of the employeesapplicant engagedis inseeking thea constructionpartial ofabatement thefor dataa centerperiod are residents of Nevada,years unlessor waivedmore bybut thenot Executivemore Directorthan of20 theyears, Office of Economic Development upon proof satisfactory to the Executiveapplicant Directormeets of the Officefollowing ofrequirements: Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(e)(1) IfThe data center will, by not later than the applicantdate that is seeking5 ayears partialafter the date on which the abatement forbecomes aeffective, periodhave of- 1080th yearsSession (2019) – 36 – or have added 50 or more butfull-time notemployees who are residents of Nevada and who will be employed at the data center and will continue to employ 50 or more thanfull-time 20employees years,who are residents of Nevada at the applicantdata meetscenter until at least the followingdate requirements:which is years after the date on which the abatement becomes effective.

(1)(2) TheEstablishing dataor centerexpanding will,the bydata notcenter laterwill thanrequire the datedata thatcenter isor 5any yearscombination afterof the datedata oncenter whichand theone abatement becomes effective, have or have added 50 or more full-timecolocated employeesbusinesses whoto aremake residentsin ofeach Nevadacounty andin whothis willState bein employedwhich at the data center andis willlocated, -by *AB400_R2*not –later 35than –the continuedate towhich employis 505 oryears morecumulative full-timecapital employeesinvestment who are residents of Nevada at the data center until at least the$100,000,000 datein whichcapital isassets 20that yearswill afterbe theused dateor onlocated whichat the abatementdata becomescenter. effective.

(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $100,000,000 in capital assets that will be used or located at the data center.

(I) The data center will, by not later than the date which is 2 years after the date on which the abatement becomes effective, provide a health insurance plan for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

(4) At least 50 percent of the employees engaged in the construction of the data center are residents of Nevada, unless waived by the Executive Director of the Office of Economic Development upon proof satisfactory to the Executive Director of the Office of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

- 80th Session (2019) – 37 – (a) Shall not consider an application for a partial abatement pursuant to this section unless the Office of Economic Development has requested a letter of acknowledgment of the request for the abatement from each affected county, school district, city or town.

- *AB400_R2* – 36 – (b) Shall consider the level of health care benefits provided to employees employed at the data center, the projected economic impact of the data center and the projected tax revenue of the data center after deducting projected revenue from the abated taxes.

(c) May, if the Office of Economic Development determines that suchsu(1) actionApprove isan necessary:application for a partial abatement pursuant to this section by a data center that does not meet the requirements set forth in paragraph (d) or (e) of subsection 2;

(1) Approve an application for a partial abatement pursuant to this section by a data center that does not meet the requirements set forth in paragraph (d) or (e) of subsection 2;

If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Office may also approve a partial abatement of taxes for each colocated business that enters into a contract to use or occupy, for a period of at least 2 years, all or a portion of the new or expandedexpandedr a data center.

If a colocated business ceases to meet the requirements set forth in this subsection, the colocated business shall repay the amount of the abatement that was allowed in the - 80th Session (2019) – 38 – same manner in which a data center is required by subsection 7 to repay the Department or a county treasurer.

If a data center ceases to meet the requirements of subsection 2 or ceases operation before the time specified in the agreement described in paragraph (b) of subsection 2, any partial abatement approved for a colocated business ceases to be in effect, but the colocated business is not - *AB400_R2* – 37 – required to repay the amount of the abatement that was allowed before the date on which the abatement ceases to be in effect.

A data center shall provide the Executive Director of the Office and the Department with a list of the colocated businesses that are qualified to receive a partial abatement pursuant to this subsection and shallshalld notify the Executive Director within 30 days after any change to the list.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the data center shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the abatement that was allowed pursuant to this section before the failure of the data center to comply unless the Nevada Tax CommissionCommissionailure of the determines that the data center has substantially complied with the requirements of this section.

(a) Shall deposit any money that he or she receives pursuant to subsection 5 or 7 in one or more of the funds established by a local - 80th Session (2019) – 39 – government of the county pursuant to NRS 354.6113 or 354.6115;

- *AB400_R2* – 38 – 10.

For an employee to be considered a resident of Nevada for following documents in the purposespersonnel file of thisthe section,employee:the a(a) dataA centercopy mustof maintainthe current and valid Nevada driver’s license of the followingemployee documentsor ina current and valid identification card for the personnelemployee fileissued ofby the employee:Department of Motor Vehicles;

(a) A copy of the current and valid Nevada driver’s license of the employee or a current and valid identification card for the employee issued by the Department of Motor Vehicles;

and (d) Proof that the employee is covered by the health insurance plan which the data center is required to provide pursuant to sub- subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of subsection 2.

For the purpose of obtaining from the Executive Director of the Office of Economic Development any waiver of the requirements set forth in subparagraph (4) of paragraph (d) of subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a data center must submit to the Executive Director of the Office of Economic Development written documentation of the efforts to meet the requirements and documented proof that an insufficient number of Nevada residents is available and qualified forforicient employment.

- 80th Session (2019) – 40 – (a) Shall adopt regulations regarding:

As used in this section, unless the context otherwise requires:req(a) “Colocated business” means a person who enters into a contract with a data center that is qualified to receive an abatement pursuant to this section to use or occupy all or part of the data center.

- *AB400_R2* – 39 – (a) “Colocated business” means a person who enters into a contract with a data center that is qualified to receive an abatement pursuant to this section to use or occupy all or part of the data center.

360.884 “Local sales and use taxes” means only the taxes imposed pursuant to chapters [374,] 377, 377A and 377B of NRS imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the county in which the qualified project is located.

Sec.- 80th Session (2019) – 41 – Secs.

17.17 and 18.

18.

(Deleted by amendment.) Sec.

- *AB400_R2* – 40 – 4.

5.

Section 16 of this act expires by limitation on June 30, 2036.

Section 13 of this act expires by limitation on December 31,6.31, 2056.

2056.~~~~~ 19 - 80th Session (2019)

H - *AB400_R2*