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 board of county commissioners of certain counties to create a business improvement district to perform certain activities relating to transportation and 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 5-10.5 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 board of county commissioners 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 board of county commissioners 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 board of county commissioners from creating a district if the board of county commissioners receives protests from the business 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 board of county commissioners 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 board of county commissioners, following a public hearing, to create by ordinance a district and requires the county clerk to maintain, and make available for public inspection, a copy of the district management plan. Section 15 prohibits: (1) with certain exceptions, the boundaries of a district from overlapping with the boundaries of another district; and (2) the board of county commissioners from creating a district in the jurisdiction of another county without the consent of the board of county commissioners of that county. 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 15.3 of this bill authorizes the board of county commissioners to renew a district by following the procedures for establishing a district. Section 15.3 also provides, with certain exceptions, that the term of the district may not exceed 10 years upon renewal. Additionally, section 15.3 requires any remaining revenue from a previous district be spent to benefit the businesses that were included in the previous district and in accordance with the district management plan for the previous district.
Section 15.7 requires a board of county commissioners to contract with an owners' association if the district management plan designated an owners' association. Section 15.7 further requires an owners' association to: (1) comply with certain provisions governing the payment of prevailing wage for certain contracts for a project regardless of whether the project would qualify as a public work; and (2) prepare and submit a report to the county clerk concerning the upcoming fiscal years in which assessments are levied.
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 board of county commissioners to establish separate benefit zones within a district and impose a different assessment within each benefit zone.
Section 17 of this bill authorizes the board of county commissioners 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 board of county commissioners 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 board of county commissioners 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 cost of acquiring, improving or equipping any project to be performed for the purposes of the district. Section 20 of this bill requires such a board of county commissioners to have an independent auditor review each claim submitted as part of any contract or other agreement made with the board of county commissioners to provide any financing or reimbursement.
Section 20.3 of this bill authorizes an owners' association to submit a request to the board of county commissioners to modify the improvements, activities or the amount of the assessments of the district. Section 20.3 authorizes the board of county commissioners to modify the district by ordinance after holding a public hearing. Additionally, section 20.3 sets forth certain notice requirements for the public hearing. If the proposed modification increases an assessment or adds a new assessment, section 20.3: (1) authorizes any interested person to make a protest orally or in writing; and (2) prohibits the board of county commissioners from modifying a district if the board of county commissioners receives protests from the business owners or authorized representatives of the businesses in the district who will pay more than 50 percent of the total amount of proposed assessments.
Section 20.5 authorizes the board of county commissioners to dissolve a district by ordinance if there was a misappropriation of money, malfeasance or a violation of law concerning the management of the district or upon written petition of the business owners or authorized representatives of the businesses in the district who pay 50 percent or more of the assessments. Section 20.5 prescribes requirements for an annual 30-day period in which the business owners or authorized representatives of the businesses may request the dissolution of a district by written petition. Section 20.5 of this bill requires the board of county commissioners to hold a public hearing before dissolving a district and sets forth certain notice requirements for the public hearing.
Section 20.7 requires, upon the dissolution or expiration of a district, any remaining revenue to be spent in accordance with the district management plan or returned to the business owners subject to assessment.