Sections 1-25 of this bill enact provisions authorizing the creation of an academic medical district. Section 2 of this bill provides that the provisions of those sections may be known and cited as the Academic Medical District Act. Section 10 of this bill sets forth certain legislative findings concerning academic medical districts. Section 11 of this bill requires the provisions of the Academic Medical District Act to be liberally construed to facilitate economic development and access to quality health care for the residents of this State. Section 4 of this bill defines “academic medical center” to mean a collaborative venture between an educational institution and a nonprofit or public hospital that includes: (1) the school of medicine at the University of Nevada, Las Vegas, or the University of Nevada, Reno; (2) a teaching hospital that maintains an accredited program of residency training with a certain number of residency positions; and (3) a physician practice plan for teaching students and residents. Sections 5-9 of this bill define certain other terms. Section 12 of this bill authorizes the creation of an academic medical district only in a contiguous area that includes an academic medical center, a full-service public hospital with at least 200 inpatient beds and at least 50 acres of land. Section 13 of this bill authorizes one or more boards of county commissioners or one or more governing bodies of incorporated cities, or both, to create an academic medical district by ordinance. Section 13 requires such a participating entity to hold at least three public hearings before adopting such an ordinance. Section 15 of this bill prescribes the procedure: (1) for a participating entity to withdraw from an academic medical district; and (2) to dissolve an academic medical district. Section 14 of this bill authorizes a participating entity to adopt an ordinance creating a tax increment area consisting of all or part of the academic medical district for the purpose of creating a special account for the payment of bonds or other securities issued to defray the cost of certain infrastructure and capital projects within the academic medical district. If a participating entity designates such a tax increment area, section 14 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 project. Section 22 of this bill authorizes the issuance of such bonds or securities by counties or incorporated cities that have created an academic medical district. Section 16 of this bill: (1) requires an academic medical district to be governed by a board of directors; and (2) prescribes the required qualifications and terms of such directors. Sections 16-18 of this bill establish certain procedures governing the operations of such a board of directors. Section 18.5 of this bill authorizes a public hospital within an academic medical district to enter into an agreement to affiliate with a publicly or privately owned entity to undertake any project within the academic medical district and requires certain approval of such an agreement before it becomes effective. Section 19 of this bill authorizes an academic medical district to: (1) act jointly with other persons and entities; (2) enter into agreements; (3) purchase insurance; and (4) market, advertise and promote the academic medical district. Section 19 prohibits an academic medical district from taking action related to a public hospital within the academic medical district that is within the authority of the hospital governing board or the board of hospital trustees for the public hospital pursuant to existing law. Section 20 of this bill authorizes an academic medical district to establish certain compensation for the use of the facilities owned, constructed, operated or maintained by the academic medical district but prohibits the academic medical district from establishing such compensation for services provided at a public hospital within the academic medical district. Section 23 of this bill requires an academic medical district, upon the request of a participating entity, to report to the participating entity concerning issues and activities necessary for the operation of the district. Section 24 of this bill requires any action against an academic medical district to be brought in the county where the principal office of the academic medical district is located. Section 25 of this bill authorizes any governmental entity to convey certain rights in real property to an academic medical district. Existing law authorizes the Office of Economic Development to approve an abatement or partial abatement of certain property taxes, business taxes and sales and use taxes in certain circumstances. (NRS 274.310, 274.320, 274.330, 360.750, 360.752, 360.753, 360.754) Section 31 of this bill authorizes a business located in an academic medical district or a person who intends to locate or expand a business in an academic medical district to apply for a partial abatement of: (1) local sales and use taxes imposed on the purchase of tangible personal property used to provide health care or conduct scientific research; and (2) the excise tax on wages paid to critical medical or scientific employees. Section 31 requires the Office to grant such an application if: (1) the applicant enters into an agreement authorizing the Office to conduct audits of the applicant and to remain in business in the academic medical district for a certain period of time; and (2) the Office finds that the business meets certain requirements relating to wages and benefits for employees and economic activity in the academic medical district. Additionally, if the applicant is requesting a partial abatement of certain taxes imposed for the benefit of public schools, section 31 requires the applicant to obtain the approval of a supermajority of the Board of Economic Development. Sections 35 and 36 of this bill provide for the duration and amount of the abatement of taxes if an application for such an abatement is approved. Sections 26-29 and 32-34 of this bill make various changes so that a partial abatement granted pursuant to section 31 is treated in the same manner as other similar abatements authorized by law. Section 36.3 of this bill authorizes the Board of Regents of the University of Nevada to enter into an agreement with a public or private entity, whether for profit or not for profit, to promote and enhance an educational program or student life at an institution within the Nevada System of Higher Education. Section 36.7 of this bill establishes that any such agreement is subject to the policies established by the Board of Regents governing contracts that faculty members and employees of the System may enter into or from which they may benefit.

Statutes affected:
As Introduced: 218D.355, 231.0685, 231A.170, 353.207, 354.59811, 360.755, 360.757, 360.7575
Reprint 1: 218D.355, 231.0685, 231A.170, 353.207, 354.59811, 360.755, 360.757, 360.7575, 396.255
BDR: 218D.355, 231.0685, 231A.170, 353.207, 354.59811, 360.755, 360.757, 360.7575