SB 403 — Revises provisions relating to education. (BDR 34-611)

- *SB403_R1* – 14 – 3.

- *SB403_R2* – 15 – 7.

Within 14 days after the Office determines that a person to whom a certificate of eligibility for transferable tax credits has been issued satisfies the criteria established by the Executive Director pursuant to subsection 2, the Office shall notify the person that - *SB403_R1* – 15 – transferable tax credits will be issued.

The notice must set forth the date, time and location of the hearing at which the governing body will consider - *SB403_R2* – 16 – whether to endorse the application.

- *SB403_R1* – 16 – (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.

- *SB403_R2* – 17 – (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 will operate.

Part 570 or enterprise community established - *SB403_R1* – 17 – pursuant to 24 C.F.R.

- *SB403_R2* – 18 – (a) To meet the eligibility requirements for the partial abatement;

Except as otherwise provided - *SB403_R1* – 18 – in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement 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.

As used in this subsection, “local sales and use taxes” means the taxes - *SB403_R2* – 19 – 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.

- *SB403_R1* – 19 – (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.

(c) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all - *SB403_R2* – 20 – other permits required by the county, city or town in which the business operates.

Part 597 until at least the date - *SB403_R1* – 20 – which is 5 years after the date on which the abatement becomes effective.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3, - *SB403_R2* – 21 –  the business shall repay to the Department of Taxation 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 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 - *SB403_R1* – 21 – 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.

- *SB403_R2* – 22 – 3.

- *SB403_R1* – 22 – (b) Not later than 1 year after the date on which the application was received by the Office, the applicant has executed an agreement with the Office which states:

The Office of Economic Development may require the agreement described in paragraph (b) of subsection 3 to incorporate a plan by the business to provide work-based learning opportunities to pupils enrolled in public high schools in this State, which may include, without limitation, a proposal to offer work-based learning opportunities at the business or to provide for - *SB403_R2* – 23 – employees of the business to serve as full-time or part-time instructors for career and technical education courses.

and - *SB403_R1* – 23 – (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.

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 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 - *SB403_R2* – 24 – 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.

- *SB403_R1* – 24 – [9.] 10.

- *SB403_R2* – 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;

- *SB403_R1* – 25 – (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 and not later than 1 year after the date on which the Office approves the application;

- *SB403_R2* – 26 – (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.

(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 - *SB403_R1* – 26 – 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.

(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 - *SB403_R2* – 27 – which the abatement becomes effective or by twenty-five 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 (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 - *SB403_R1* – 27 – 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 the date on which the abatement becomes effective.

(j) Except as otherwise provided in subsection 3, if the business will have at least 50 full-time employees on the payroll of the business by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, the business, by the earlier of the eighth calendar quarter following the calendar - *SB403_R2* – 28 – quarter in which the abatement becomes effective or the date on which the business has at least 50 full-time employees on the payroll of the business, has a policy for paid family and medical leave and agrees that all employees who have been employed by the business for at least 1 year will be eligible for at least 12 weeks of paid family and medical leave at a rate of at least 55 percent of the regular wage of the employee.

- *SB403_R1* – 28 – (I) For any reason authorized pursuant to the Family and Medical Leave Act of 1993, 29 U.S.C.

(b) Shall consider the level of health care benefits provided by the business to its employees, the policy of paid family and medical leave provided by the business to its employees, the projected economic impact of the business and the projected tax revenue of - *SB403_R2* – 29 – the business after deducting projected revenue from the abated taxes.

- *SB403_R1* – 29 – (d) May require the agreement described in paragraph (b) of subsection 2 to incorporate a plan by the business to provide work- based learning opportunities to pupils enrolled in public high schools in this State, which may include, without limitation, a proposal to offer work-based learning opportunities at the business or to provide for employees of the business to serve as full-time or part-time instructors for career and technical education courses.

Notwithstanding any other provision of law, if the Office of Economic Development approves an application for a partial - *SB403_R2* – 30 – 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:

- *SB403_R1* – 30 – (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.

If an applicant for a partial abatement pursuant to this section fails to execute the agreement described in paragraph (b) of - *SB403_R2* – 31 – subsection 2 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved for a partial abatement pursuant to this section unless the applicant submits a new application.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2, - *SB403_R1* – 31 –  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 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.

- *SB403_R2* – 32 – 14.

- *SB403_R1* – 32 – Sec.

(b) The business is registered pursuant to the laws of this State or the applicant commits to obtaining a valid business license and all - *SB403_R2* – 33 – other permits required by the county, city or town in which the business operates;

(d) The average hourly wage that will be paid by the business to its employees in this State during the period of partial abatement is not less than 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department - *SB403_R1* – 33 – of Employment, Training and Rehabilitation on July 1 of each fiscal year;

- *SB403_R2* – 34 – (b) Must not:

(c) Notwithstanding the provisions of subsection 2, may require the agreement described in paragraph (a) of subsection 2 - *SB403_R1* – 34 – to incorporate a plan by the business to provide work-based learning opportunities to pupils enrolled in public high schools in this State, which may include, without limitation, a proposal to offer work-based learning opportunities at the business or to provide for employees of the business to serve as full-time or part- time instructors for career and technical education courses.

or (b) Operation before the time specified in the agreement described in paragraph (a) of subsection 2, - *SB403_R2* – 35 –  the business shall repay to the Department or, if the partial abatement was from personal property taxes, to the appropriate 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 - *SB403_R1* – 35 – 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.

- *SB403_R2* – 36 – (e) “Personal property taxes” means any taxes levied on personal property by the State or a local government pursuant to chapter 361 of NRS.

- *SB403_R1* – 36 – 2.

(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 - *SB403_R2* – 37 – residents of Nevada at the data center until at least the date which is 10 years after the date on which the abatement becomes effective.

- *SB403_R1* – 37 – (3) The average hourly wage that will be paid by the data center to its 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 and:

(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 - *SB403_R2* – 38 – 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, - *SB403_R1* – 38 – 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;

- *SB403_R2* – 39 – (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;

(d) May require the agreement described in paragraph (b) of subsection 2 to incorporate a plan by the data center to provide work-based learning opportunities to pupils enrolled in public high schools in this State, which may include, without limitation, a - *SB403_R1* – 39 – proposal to offer work-based learning opportunities at the data center or to provide for employees of the data center to serve as full-time or part-time instructions or career and technical education courses.

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 - *SB403_R2* – 40 – subsection 2, any partial abatement approved for a colocated business ceases to be in effect, but the colocated business is not required to repay the amount of the abatement that was allowed before the date on which the abatement ceases to be in effect.

- *SB403_R1* – 40 – 6.

- *SB403_R2* – 41 – (a) Shall deposit any money that he or she receives pursuant to subsection 5 or 8 in one or more of the funds established by a local government of the county pursuant to NRS 354.6113 or 354.6115;

- *SB403_R1* – 41 – 11.

- *SB403_R2* – 42 – (a) Shall adopt regulations regarding:

- *SB403_R1* – 42 – (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.

If the Office approves the application, the Office shall calculate the estimated - *SB403_R2* – 43 – amount of the transferable tax credits pursuant to NRS 360.7592, 360.7593 and 360.7594.

- *SB403_R1* – 43 – (d) Provide proof satisfactory to the Office that at least 60 percent of the direct production expenditures for:

- *SB403_R2* – 44 – (a) A script, storyboard or synopsis of the qualified production;

(e) Details regarding the financing of the project, including, without limitation, any information relating to a binding financing - *SB403_R1* – 44 – commitment, loan application, commitment letter or investment letter;

If the Office certifies the - *SB403_R2* – 45 – audit, determines that all other requirements for the transferable tax credits have been met and determines that a certificate of transferable tax credits will be issued, the Office shall notify the production company that the transferable tax credits will be issued.

Upon receipt of the declaration, the Office shall issue - *SB403_R1* – 45 – to the production company a certificate of transferable tax credits in the amount approved by the Office for the fees or taxes included in the declaration of the production company.

- *SB403_R2* – 46 – Sec.

- *SB403_R1* – 46 – (1) Any tax imposed by chapters 363A and 363B of NRS;

- *SB403_R2* – 47 – (g) Provide documentation satisfactory to the Office of the number of employees engaged in the construction of the project;

- *SB403_R1* – 47 – (j) Provide documentation satisfactory to the Office that each participant in the project provides a plan of health insurance and that each employee employed at the project by each participant is offered coverage under the plan of health insurance provided by his or her employer;

and - *SB403_R2* – 48 – (o) Meet any other requirements prescribed by the Office.

(a) The initial project will have a total of 500 or more full-time employees employed at the site of the initial project and the average - *SB403_R1* – 48 – hourly wage that will be paid to employees of the initial project in this State is at least 120 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;

In addition to meeting the requirements set forth in subsection 2, a project is eligible for the transferable tax credits - *SB403_R2* – 49 – described in paragraph (a) of subsection 1 only if the Interim Finance Committee approves a written request for the issuance of the transferable tax credits.

(a) Will not impede the ability of the Legislature to carry out its duty to provide for an annual tax sufficient to defray the estimated - *SB403_R1* – 49 – expenses of the State for each fiscal year as set forth in Article 9, Section 2 of the Nevada Constitution;

and - *SB403_R2* – 50 – (4) Binds successors in interest of the lead participant for the specified period;

(1) Current and valid Nevada driver’s license of the employee originally issued by the Department of Motor Vehicles - *SB403_R1* – 50 – more than 60 days before the hiring of the employee or a current and valid identification card for the employee originally issued by the Department of Motor Vehicles more than 60 days before the hiring of the employee;

- *SB403_R2* – 51 – [10.] 11.

- *SB403_R1* – 51 – [11.] 12.

Upon receipt of the declaration, the Office shall issue to the lead participant a certificate of transferable tax credits in the amount approved by the - *SB403_R2* – 52 – Office for the fees or taxes included in the declaration.

- *SB403_R1* – 52 – 3.

- *SB403_R2* – 53 – (b) The participants in the qualified project collectively fail to employ the number of qualified employees identified in the certificate of eligibility approved for the qualified project;

- *SB403_R1* – 53 – 3.

The Secretary of State shall not reinstate a state business - *SB403_R2* – 54 – license suspended pursuant to this subsection or issue a new state business license to the lead participant whose state business license has been revoked pursuant to this subsection unless the Executive Director of the Office provides proof satisfactory to the Secretary of State that the lead participant is in compliance with the requirements of this section governing repayment.

- *SB403_R1* – 54 – Sec.

360.940 “Qualified project” means a project which the Office of Economic Development determines meets all the requirements set forth in subsections 22, [,[3 3 and 4] to 5, inclusive, of NRS 360.945.

- *SB403_R2* – 55 – (f) Provide documentation satisfactory to the Office that each participant in the project is registered pursuant to the laws of this State or commits to obtaining a valid business license and all other permits required by the county, city or town in which the project operates;

- *SB403_R1* – 55 – (h) Provide documentation satisfactory to the Office of the number of qualified employees employed or anticipated to be employed at the project by the participants;

(1) Requires the lead participant to pay the cost of any engineering or design work necessary to determine the cost of infrastructure improvements required to be made by the governing - *SB403_R2* – 56 – body pursuant to an economic development financing proposal approved pursuant to NRS 360.990;

- *SB403_R1* – 56 – 3.

- *SB403_R2* – 57 – 5.

- *SB403_R1* – 57 – (b) If the employee is a registered owner of one or more motor vehicles in Nevada, a copy of the current motor vehicle registration of at least one of those vehicles;

- *SB403_R2* – 58 – [9.] 10.

There is hereby appropriated from the State General Fund to the Department of Education the sum of $68,910 - *SB403_R1* – 58 – for one staff position to oversee the implementation of recommendations made by the Commission on Innovation and Excellence in Education pursuant to NRS 385.920385.920. the following sums:

For the Fiscal Year 2025-2026....................................$68,910 For the Fiscal Year 2026-2027....................................$68,910 2.

Any remaining balance of the sumsappropriation appropriatedmade by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 3030, of2027, the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 18, 2026, and September 17, 2027, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 18, 2026, and September 17, 2027,2027. respectively.

Any remaining balance of the appropriation made by subsection 1 must not be committed for expenditure after June 30, 2027, by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 17, 2027, by either the entity to which the money was appropriated or the entity to which the money was subsequently - *SB403_R2* – 59 – granted or transferred, and must be reverted to the State General Fund on or before September 17, 2027.

25.5.

1.

There is hereby appropriated from the State General Fund to the Department of Education for personnel and operating costs to carry out the provisions of this act the following sums:

For the Fiscal Year 2025-2026..................................$222,763 For the Fiscal Year 2026-2027..................................$279,956 2.

Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 18, 2026, and September 17, 2027, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 18, 2026, and September 17, 2027, respectively.

Sec.

Any balance of the sums appropriated by subsection 1 remaining at the end of the respective fiscal years must not be committed for expenditure after June 30 of the respective fiscal - *SB403_R1* – 59 – years by the entity to which the appropriation is made or any entity to which money from the appropriation is granted or otherwise transferred in any manner, and any portion of the appropriated money remaining must not be spent for any purpose after September 18, 2026, and September 17, 2027, respectively, by either the entity to which the money was appropriated or the entity to which the money was subsequently granted or transferred, and must be reverted to the State General Fund on or before September 18, 2026, and September 17, 2027, respectively.

Sec.2.c.Sections 18 to 21, inclusive, of this act expire by limitation on June 30, 2032.

28.

1.

This act becomes effective on July 1, 2025.

2.

Sections 18 to 21, inclusive, of this act expire by limitation on June 30, 2032.

-4. *SB403_R2* – 60 – June 30, 2036.s 22 and 23 of this act expire by limitation on 5.

Sections 22 and 23 of this act expire by limitation on June 30, 2036.

5.

TEXT OF REPEALED SECTIONS 389.210 Establishment of pilot program to provide competency-based education;

requirements for provide schools selected to participate in program.

(a) The process for submission of an application by the board of trustees of a school district or the governing body of a charter school to participatep(b) The qualifications and conditions for participation by a school in the pilot program;program, including, without limitation:

and (b) The qualifications and conditions for participation by a school in the pilot program, including, without limitation:

and (2) Evidence of support for the implementation of competency-based education by the community served by the sch3.l A school selecteddistrict toor participatecharter inschool. the pilot program to provide competency-based education shall:

(a)3. Implement a system of instruction by which a pupil advances to a higher level of learning when the pupil demonstrates mastery of a concept or skill;

A school selected to participate in the pilot program to provide competency-based education shall:

- *SB403_R1* – 60 – (a) Implement a system of instruction by which a pupil advances to a higher level of learning when the pupil demonstrates mastery of a concept or skill;

and (e) Ensure that pupils are able to apply knowledge learned, createrelating newto knowledgesuch andknowledge.velop develop important skills and dispositions relating4. to such knowledge.

4.If at least one application to participate in the pilot program is made on behalf of a school that primarily serves pupils who are at risk or credit deficient, or in need of credit retrieval, the Department must select at least one such school to participate in the pilot program.

If at least one application to participate in the pilot program risk or credit deficient, or in need of credit retrieval, the Department - *SB403_R2* – 61 – must select at least one such school to participate in the pilot program.

(b) Conduct one or more meetings with the superintendents of the sc(1)school Understandingdistricts offor competency-basedthe education;purpose of increasing:

and(1) (2)Understanding Interest in implementing a system of competency-based education.education;

2.and (2) Interest in implementing a system of competency-based edu2.

To the extent that money is available for that purpose, the Department of Education may, through a competitive grants program, distribute any money appropriated to the Department to carry out the pilot program to provide competency-based education established- pursuant*SB403_R1* – 61 – the Department to NRSschools 389.210.selected to participate in the program based upon money available for this purpose.

GrantsH must- be*SB403_R1* awarded by the Department to schools selected to participate in the program based upon money available for this purpose.

H - *SB403_R2*