Existing law authorizes the governing body of a city or county to create a tourism improvement district or an economic diversification district to finance certain projects within the district. (Chapters 271A and 271B of NRS) This bill authorizes the governing body of certain municipalities to create a business improvement district to perform certain activities relating to transportation and housing and mitigating visitor activities. Section 2 of this bill provides that the provisions of this bill may be referred to as the Business Improvement District Law. Section 3 of this bill provides that the provisions of this bill apply, under certain circumstances, in any region of this State governed by a regional planning agency created by interstate compact (currently the Lake Tahoe Basin). Sections 5-10 of this bill define certain terms relating to business improvement districts. Section 4 of this bill applies these definitions to the provisions of this bill.
Section 11 of this bill authorizes a person to submit a petition to the governing body of a municipality to create a business improvement district. Such a petition is required to: (1) be signed by the business owners in the proposed district who will pay more than 50 percent of the total amount of assessments proposed to be levied in the district; and (2) include a district management plan. Section 12 of this bill sets forth certain requirements for a district management plan and authorizes the district management plan to provide for increases in assessments for each year of operation of the district.
Section 13 of this bill requires the governing body to hold a public hearing to consider a petition to create a district and sets forth certain notice requirements for the public hearing. Section 13 also: (1) authorizes any interested person to make a protest orally or in writing; and (2) prohibits the governing body from creating a district if the governing body receives protests from the owners or authorized representatives of the businesses in the proposed district who will pay more than 50 percent of the total amount of proposed assessments. Section 14 of this bill authorizes, with certain exceptions, the governing body to adopt, revise, change, reduce or modify the proposed assessments or the types of activities to be provided by the proposed district. Section 15 of this bill authorizes the governing body, following a public hearing, to create by ordinance a district. Section 15 prohibits: (1) with certain exceptions, the boundaries of a district from overlapping with the boundaries of another district; and (2) the governing body from creating a district in the jurisdiction of another municipality without the consent of the governing body of that municipality. Additionally, section 15 provides, with certain exceptions, that the term of a district may not exceed 5 years upon the initial formation of the district and an additional 10 years upon renewal.
Section 16 of this bill: (1) requires assessments to be levied on the basis of the estimated benefit to the businesses within the district; (2) requires, with certain exceptions, the revenue from the levy of assessments to be used for certain purposes; and (3) authorizes the governing body to establish separate benefit zones within a district and impose a different assessment within each benefit zone.
Section 17 of this bill authorizes the governing body to enter into an agreement with the Department of Taxation for the collection and distribution of the assessments levied by the district.
Section 18 of this bill requires the governing body that created a district to submit an annual report to the Legislature concerning the status of the district and the financial impact of the district on local governmental services.
Section 19 of this bill authorizes the governing body that formed a district to issue bonds for the benefit of the district or to enter into an agreement with certain governmental entities or other persons for the costs of acquiring, improving or equipping any project performed for the purposes of the district. Section 20 of this bill requires such a governing body to have an independent auditor review each claim submitted as part of any contract or other agreement made with the governing body to provide any financing or reimbursement.