AB301 - Revises provisions relating to community development. (BDR 25-1047)

- 83rd Session (2025) Assembly Bill No. 301–Assemblymembers Goulding; and La Rue Hatch CHAPTER.......... AN ACT relating to community development; requiring certain records to be maintained by the board of trustees of certain general improvement districts; increasing the compensation of the board of trustees of certain general improvement districts; requiring a general improvement district created for acquiring television maintenance facilities to report certain information annually to the board of county commissioners of the county in which the district is located; exempting certain general improvement districts from an annual publication of certain notices of budget adoption and filing; revising provisions governing the procedure for applying for transferable tax credits for affordable housing and the transfer of such tax credits; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes, under certain circumstances, the creation of a general improvement district to provide certain governmental services and facilities to the residents of the district. (NRS 318.116) Existing law requires the secretary of the board of a district to keep in a well-bound book a record of all of the board’s proceedings, minutes of all meetings, any certificates, contracts, bonds given by employees and all corporate acts. (NRS 318.085) Section 1 of this bill eliminates the requirement to keep this information in a well-bound book but still requires the secretary to keep such information. Section 1 requires the secretary to also keep a record of budgets and any other information or records necessary for carrying out the duties of the board. Existing law requires the treasurer of the board to keep strict and accurate accounts of all money received by and disbursed for and on behalf of the district in permanent records. (NRS 318.085) Section 1 provides that this information includes all audits and financial statements of the district. Section 1 also provides that all records of the board’s actions, including, without limitation, minutes, budgets, audits and financial statements, must be: (1) published on the Internet website maintained by the board; or (2) provided to the county in which the district is located for publication on the Internet website of the county. Existing law further sets the maximum compensation of a member of a board of a district to not more than: (1) $6,000 per year; or (2) $9,000 per year if the board of a district has been granted certain powers relating to acquiring sanitary sewer improvements, collection and disposal of garbage and refuse and supply, storage and distribution of water for private and public purposes. (NRS 318.085) Section 1 increases the compensation each member of a board of a district granted such powers may receive from not more than $9,000 per year to not more than $14,500 per year. Existing law gives the board of a district created wholly or in part for acquiring television maintenance facilities certain powers. (NRS 318.1192) Section 3 of this bill requires the board of such a district to submit an annual report to the board of – 2 – - 83rd Session (2025) county commissioners of the county in which the district is located that sets forth, without limitation: (1) the budget and expenditures of the district; (2) the status of the equipment of the district; (3) the status of any license held by the district; (4) a recommendation as to whether the continuation of the district is necessary; and (5) any information necessary for the board of county commissioners to review the work of the board and determine whether the board is achieving its statutory purpose. Existing law authorizes certain special districts, including general improvement districts, with annual total expenditures of less than $300,000 to petition the Department of Taxation for exemption from the requirements of the Local Government Budget and Finance Act (NRS 354.470-354.626) for the filing of certain budget documents and audit reports. Existing law further provides that if an exemption is granted by the Department, the special district is exempt from all publication requirements of the Local Government Budget and Finance Act, except that the Department of Taxation by regulation shall require an annual publication of a notice of budget adoption and filing. (NRS 354.475) Section 4 of this bill provides that if a petition filed by a general improvement district is granted by the Department, the board of the general improvement district is exempt from all publication requirements of the Local Government Budget and Finance Act but is required publish the district’s budget, financial statements and audits that are required by section 1. Existing law authorizes the Housing Division of the Department of Business and Industry to issue transferable tax credits, which are authorized to be taken against certain state taxes, to the sponsor of a project for the acquisition, development, construction, improvement, expansion, reconstruction or rehabilitation of a qualified low-income housing project, as defined by existing federal law. (NRS 360.860-360.870; 26 U.S.C. § 42(g)) Under existing law, to be issued transferable tax credits, the project sponsor is required to: (1) apply to, and obtain from, the Division a reservation of an amount of transferable tax credits; (2) close the project within a certain period after obtaining a reservation of transferable tax credits by acquiring title to the project site, entering into an agreement with a licensed contractor to construct the project and obtaining certain financing for the project; and (3) submit to the Division a final application for the issuance of transferable tax credits not less than 45 days before the project closes. A project sponsor that is issued transferable tax credits is authorized to transfer the credits to another entity, which may transfer those transferable tax credits to one or more of its subsidiaries or affiliates. (NRS 360.867) Section 5 of this bill: (1) requires, with certain exceptions, a final application for the issuance of transferable tax credits to be submitted not less than 15 days before the closing of the project rather than not less than 45 days before the closing of the project; (2) authorizes a project sponsor to demonstrate the acquisition of the land to close the project by entering into a long-term ground lease for the project site; and (3) authorizes a project sponsor to transfer transferable tax credits to a member or partner of the project sponsor to any other entity, who may then transfer the transferable tax credits to another entity. – 3 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 318.085 is hereby amended to read as follows: 318.085 Except as otherwise provided in NRS 318.0953 and 318.09533: 1. After taking oaths and filing bonds, the board shall choose one of its members as chair of the board and president of the district, and shall elect a secretary and a treasurer of the board and of the district, who may or may not be members of the board. The secretary and the treasurer may be one person. 2. The board shall adopt a seal. 3. The secretary shall keep audio recordings or transcripts of all meetings and [, in a well-bound book,] a record of all of the board’s proceedings, minutes of all meetings, budgets, any certificates, contracts, bonds given by employees , [and] all corporate acts [.] and any other information or records necessary for carrying out the duties of the board. Except as otherwise provided in NRS 241.035, [the book,] audio recordings, transcripts and records must be open to inspection of all owners of real property in the district as well as to all other interested persons. A copy of the minutes or audio recordings must be made available to a member of the public upon request at no charge pursuant to NRS 241.035. 4. The treasurer shall keep strict and accurate accounts of all money received by and disbursed for and on behalf of the district , including, without limitation, all audits and financial statements, in permanent records. The treasurer shall file with the county clerk, at the expense of the district, a corporate surety bond in an amount not more than $50,000, the form and exact amount thereof to be approved and determined, respectively, by the board of county commissioners, conditioned for the faithful performance of the duties of his or her office. Any other officer or trustee who actually receives or disburses money of the district shall furnish a bond as provided in this subsection. The board of county commissioners may, upon good cause shown, increase or decrease the amount of that bond. 5. All records of the board’s actions, including, without limitation, minutes, budgets, audits and financial statements, must be: (a) Published on the Internet website maintained by the board; or – 4 – - 83rd Session (2025) (b) Provided to the county in which the district is located for publication on the Internet website of the county. All information provided to the county pursuant to this paragraph must be submitted in a format that allows for publishing in accordance with Title II of the Americans with Disabilities Act. 6. Except as otherwise provided in this subsection, each member of a board of trustees of a district organized or reorganized pursuant to this chapter may receive as compensation for his or her service not more than $6,000 per year. Each member of a board of trustees of a district that is organized or reorganized pursuant to this chapter and which is granted the powers set forth in NRS 318.140, 318.142 and 318.144 may receive as compensation for his or her service not more than [$9,000] $14,500 per year. 7. The compensation of the members of a board is payable monthly, if the budget is adequate and a majority of the members of the board vote in favor of such compensation, but no member of the board may receive any other compensation for his or her service to the district as an employee or otherwise. Each member of the board must receive the same amount of compensation. If a majority of the members of the board vote in favor of an increase in the compensation of the trustees, the increase may not become effective until January 1 of the calendar year immediately following the next biennial election of the district as set forth in NRS 318.095. [6.] 8. As used in this section, “compensation” does not include any contribution made to the Public Employees’ Retirement System on behalf of a member of the board of trustees. Sec. 2. (Deleted by amendment.) Sec. 3. NRS 318.1192 is hereby amended to read as follows: 318.1192 1. In the case of a district created wholly or in part for acquiring television maintenance facilities, the board shall have power to: [1.] (a) Acquire television broadcast, transmission and relay improvements and construct and operate a video service network pursuant to chapter 711 of NRS. [2.] (b) Levy special assessments against specially benefited real property on which are located television receivers operated within the district and able to receive television broadcasts supplied by the district. [3.] (c) Fix tolls, rates and other service or use charges for services furnished by the district or facilities of the district, including, without limitation, any one, all or any combination of the following: [(a)] (1) Flat rate charges; – 5 – - 83rd Session (2025) [(b)] (2) Charges classified by the number of receivers; [(c)] (3) Charges classified by the value of property served by television receivers; [(d)] (4) Charges classified by the character of the property served by television receivers; [(e)] (5) Minimum charges; [(f)] (6) Stand-by charges; or [(g)] (7) Other charges based on the availability of service. [4.] 2. The district shall not have the power in connection with the basic power stated in this section to borrow money which loan is evidenced by the issuance of any general obligation bonds or other general obligations of the district. 3. The board of the district shall submit an annual report to the board of county commissioners of the county in which the district is located. The annual report must set forth, without limitation: (a) The budget and expenditures of the district; (b) The status of the equipment of the district; (c) The status of any license held by the district; (d) A recommendation as to whether the continuation of the district is necessary; and (e) Any information necessary for the board of county commissioners to review the work of the board and determine whether the board is achieving its statutory purpose. Sec. 4. NRS 354.475 is hereby amended to read as follows: 354.475 1. All special districts subject to the provisions of the Local Government Budget and Finance Act with annual total expenditures of less than $300,000 may petition the Department of Taxation for exemption from the requirements of the Local Government Budget and Finance Act for the filing of certain budget documents and audit reports. Such districts may further petition to use a cash basis of accounting. 2. A special district subject to the provisions of the Local Government Budget and Finance Act with budgeted annual total expenditures of $300,000 or more in a fiscal year that reasonably anticipates its actual annual total expenditures for that fiscal year will be less than $300,000 may petition the Department of Taxation for a conditional exemption from the requirement of providing for an annual audit pursuant to NRS 354.624 for that fiscal year. If the actual annual total expenditures of the special district are $300,000 or more, the special district shall provide for an annual audit for that fiscal year. 3. A petition filed with the Department of Taxation: – 6 – - 83rd Session (2025) (a) Pursuant to subsection 1 must be received by the Department of Taxation on or before March 1 to be effective for the succeeding fiscal year; or (b) Pursuant to subsection 2 must be received by the Department of Taxation on or before March 1 to be effective for the current fiscal year. 4. A board of county commissioners may request the Department of Taxation to audit the financial records of a special district that is exempt from the requirement of providing for an annual audit pursuant to this section. 5. If a petition filed by a [Text truncated for display. Full text available on LegiScan.]