SB 28 — Revises provisions relating to municipalities. (BDR 22-411)

(ReprintedSenate withBill amendmentsNo. adopted on April 16, 2025) FIRST REPRINT S.B.

2828–Committee Son ENATEGovernment BAffairs ILLNCHAPTER.......... O.

28–COMMITTEE ON G OVERNMENT A FFAIRS (ON BEHALF OF THE C ITY OFL ASV EGAS ) PREFILED N OVEMBER 13, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to municipalities.

(BDR 22-411) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

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 governing body of a municipality to designate a tax increment area for the purpose of creating a special account for the payment of bonds or other securities to defray the cost of certain undertakings, which is defined to include various projects based on the mechanism used to create the tax increment area, including a drainage and flood control project, an overpass project, a sewerage project, a street project, an underpass project, a water project, a natural resources project or a rail project.

The designation of a tax increment area provides for the allocation of a portion of the taxes levied upon taxable property in the tax increment area each year to pay the bond requirements of loans, money advanced to or indebtedness incurred by the municipality to finance or refinance the undertaking.

(2) a housingfixed guideway project;

(3) a high-capacity transit project;

(4) a multi-family housing project;

Section 12 of this bill establishes requirements for a governing body of a municipality to order one of these undertakings, including that the tax increment area be located:

(1) in an area designated for transit-oriented development ororent another land use specified in the master plan adopted by the governing body;

and (2) not more than one-half mile from certain structures for a fixed guideway or high-capacity transit project.

- *SB28_R1* – 2 – Section 12 further requires that if a governing body adopts an ordinance designating the tax increment area and ordering one of these undertakings:

(1) the ordinance may include additional requirements for the tax increment area and undertaking;

and (2) the governing body must file an exhibit with the ordinance that addressesincrement thearea determinationmeets ofthese therequirements.ning governing body that the area chosen for the tax incrementEXPLANATION area– meetsMatter thesein requirements.bolded italics is new;

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

(Deleted by amendment.) Sec.- 83rd Session (2025) – 2 – thereto the provisions set forth as sections 3 to 12, inclusive, of this act.

2.

Chapter 278C of NRS is hereby amended by adding thereto the provisions set forth as sections 3 to 12, inclusive, of this act.

it in NRS 277A.400.pacity transit” has the meaning ascribed to Sec.

7.

“High-capacity transit” has the meaning ascribed to it in NRS 277A.400.

Sec.

“Transit-oriented development” means a land use or zone that includes a mix of integrated residential or commercial -transit.s *SB28_R1* – 3 – use types located in proximity to a fixed guideway or high-capacity transit.Sec.

Sec.

A tax increment area comprising a specially benefited zone designated pursuant to NRS 278C.150 that is - 83rd Session (2025) – 3 – ordered for an undertaking described in subsection 5 of NRS 278C.140, must be located:

(a) In an area designated for transit-oriented development or other land use specified in the land use element of the master plan adoptedado(b) byNot themore governingthan bodyone-half pursuantmile tofrom NRSa 278.150;planned or constructed station, terminal or parking facility for a fixed guideway or high- capacity transit project.

and (b) Not more than one-half mile from a planned or constructed station, terminal or parking facility for a fixed guideway or high- capacity transit project.

(a) The ordinance may, if necessary, prescribe additional or conforming policies, regulations, restrictions or requirementsrequirementsr relating to the tax increment area and undertaking, including, without limitation, any zoning regulations adopted pursuant to NRS 278.250;

and (b) The governing body shall file with the ordinance an exhibit that addresses the determination of the governing body that the - *SB28_R1* – 4 – location of the tax increment area meets the requirements of subsections 1 and 2.

- 83rd Session (2025) – 4 – (c) A sewerage project, as defined in NRS 244A.0505;

or (f)3.) AAIn waterthe project,case asof defineda incity with respect to any tax increment area created pursuant to a cooperative agreement between the city and the Nevada System of Higher Education pursuant to NRS 268.728.278C.155, in addition to the projects described in subsection 2:

3.

In the case of a city with respect to any tax increment area created pursuant to a cooperative agreement between the city and the Nevada System of Higher Education pursuant to NRS 278C.155, in addition to the projects described in subsection 2: