The Nevada Administrative Procedure Act establishes procedural requirements for the adoption of administrative regulations by agencies, officers and employees of the Executive Department of the State Government, with certain exceptions. (NRS 233B.010-233B.120) Under the Act, such state agencies, officers and employees are required to take certain actions to determine the impact of a proposed regulation on for-profit businesses that employ less than 150 employees before adopting a regulation that is likely to impose a direct and significant economic burden upon such a small business or that directly restricts the formation, operation or expansion of such a small business. (NRS 233B.0382, 233B.0608) The Act further requires that after such actions are taken, the state agency, officer or employee is required to prepare a small business impact statement and prescribes the information required to be included in the statement. (NRS 233B.0608, 233B.0609) The Act also requires that an agency, before holding an initial public hearing on a proposed regulation, conduct at least one workshop to solicit comments from interested persons on one or more general topics to be addressed in the regulation. (NRS 233B.061) Existing law also establishes procedural requirements for the adoption by a local government of a rule, which is defined in existing law to mean an ordinance and, with certain exceptions, an action taken that imposes, increases or changes the basis for the calculation of a fee that is paid by a for-profit business. (NRS 237.030-237.150) One of the procedural prerequisites for the adoption by a local government of such a rule that is likely to impose a direct and significant economic burden upon a business or directly restricts the formation, operation or expansion of a business is the notification of chambers of commerce and trade associations of the proposed rule. (NRS 237.080) Existing law requires inclusion in the business impact statement prepared by the local government regarding such a proposed rule: (1) the number of businesses likely to be affected by the proposed rule; and (2) a list of the chambers of commerce and trade associations notified of the proposed rule. (NRS 237.090) Section 1 of this bill imposes the same prerequisite of notifying chambers of commerce and trade associations on a state agency, officer or employee subject to the Nevada Administrative Procedure Act, in determining the impact of a proposed regulation on small businesses, insofar as is practicable. Section 2 of this bill similarly requires the state agency, officer or employee to include in the small business impact statement for the proposed regulation the total number of small businesses likely to be affected by the proposed regulation and a list of any chambers of commerce and trade associations notified pursuant to section 1. Section 2.5 of this bill requires an agency to notify by electronic mail chambers of commerce, trade associations or owners and officers of businesses which are likely be affected by a proposed regulation of the time and place set for a workshop to solicit comments from interested persons on one or more general topics to be addressed in the regulation. Section 2.5 also requires an agency to maintain an electronic mailing list of local chambers of commerce, trade associations and owners and officers of businesses and to update the list not later than January 31 of each year. Under existing law, a local government is not required to comply with the procedural requirements for adopting a rule if the local government is taking action that imposes, increases or changes the basis for the calculation of an impact fee or sales and use taxes. (NRS 237.060) Section 3 of this bill eliminates these exemptions, thereby requiring a local government to comply with those procedural requirements with respect to a proposed rule that imposes, increases or changes the basis for the calculation of an impact fee or sales and use taxes. Section 3 also clarifies that, for purposes of the procedural requirements for adopting a rule, a “rule” is either: (1) an ordinance by the adoption of which the governing body of a local government exercises legislative powers; or (2) an action taken by the governing body of a local government that imposes, increases or changes the basis for the calculation of a fee that is paid in whole or in substantial part by businesses. (See, e.g., Castellanos v. City of Reno, 629 F. Supp. 3d 1031, 1042 (D. Nev. 2022) (construing NRS 237.060 “as disjunctive because the alternative is contrary to common sense and the law's purpose”)) Existing law further provides that any action of a local government to adopt a proposed rule in violation of the requirements for adopting such a rule is void. (NRS 237.140) Section 4 of this bill clarifies that any such action is also unenforceable. Existing law authorizes local governments to impose by ordinance impact fees to pay the cost of constructing a capital improvement or facility expansions necessitated or attributable to certain new development. (NRS 278B.160) Under existing law, a local government that wishes to impose an impact fee is required to set a public hearing to consider the land use assumptions and to provide certain notice of such a public hearing. (NRS 278B.180) Section 5 of this bill requires copies of such notice be provided, insofar as is practicable, to chambers of commerce and trade associations whose members are owners or officers of businesses that are likely to be affected by the proposed impact fee.

Statutes affected:
As Introduced: 233B.0608, 233B.0609, 237.060, 237.140, 278B.180
Reprint 1: 233B.0608, 233B.0609, 233B.061, 237.060, 237.140, 278B.180
BDR: 233B.0608, 233B.0609, 237.060, 237.140, 278B.180