(REPRINTED WITH ADOPTED AMENDMENTS)
"                    FIRST REPRINT       A.B. 370" 


Assembly Bill No. 370--Committee on Government Affai
    rs

                  March 21, 1995
                 _____________


    Referred to Committee on Government Affairs


SUMMARY--Revises provisions governing alternative 
          procedure for creation of local improvement 
          district. (BDR 21-706)

FISCAL NOTE:  Effect on Local Government: No.
              Effect on the State or on Industrial Insurance: No.



EXPLANATION--Matter in italics is new; matter in bra
ckets [ ] is material to be omitted.

AN ACT relating to local improvement districts; revising certain 
        provisions relating to alternative procedures for the creation 
        of such districts; limiting the applicability of those 
        provisions; and providing other matters properly relating 
        thereto.

     THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE
                AND ASSEMBLY, DO ENACT AS FOLLOWS:



  Section 1.  Chapter 271 of NRS is hereby 
amended by adding thereto a new section to read as follows: 
\
  \\The provisions of NRS 271.710, 271.720 and 271.730 
apply to the governing body of a city or county.
  Sec. 2.  NRS 271.015 is hereby amended to read 
as follows:
  271.015  [This] \Except as otherwise provided in 
section 1 of this act, this\\ chapter applies:
  1.  To any unincorporated town.
  2.  To any city, including Carson City, whether 
incorporated or governed under a general act, special 
legislative act or special charter, enacted, adopted or 
granted pursuant to section 1 or 8 of article 8 of the 
constitution of the State of Nevada, or otherwise.
  3.  To any county for any project outside of any city.
  4.  To any county, city, or town for a project not 
specified in this chapter but which that municipality is 
otherwise authorized by law to acquire and defray its cost 
by special assessment, and to any other political 
subdivision of this state otherwise authorized by law to 
acquire a specified or described project and to defray its 
cost by special assessment. In such a case, this chapter 
provides the method of doing so, to the extent that a 
special procedure is not provided in the authorizing 
statute.
  5.  To a county for a project or benefited property within 
the boundaries of a city, if the city within whose 
boundaries the project or benefited property is located 
consents to the exercise of powers under this chapter within 
its boundaries, in an interlocal agreement entered into 
pursuant to NRS 277.045 to 277.180, inclusive.
  6.  To a city for a project or benefited property outside 
the boundaries of the city, if the county or other city 
within whose boundaries the project or benefited property is 
located consents to the exercise of powers under this 
chapter within its boundaries, in an interlocal agreement 
entered into pursuant to NRS 277.045 to 277.180, inclusive.
  Sec. 3.  NRS 271.710 is hereby amended to read 
as follows:
  271.710  1.  A governing body may adopt an ordinance 
pursuant to NRS 271.325 creating a district and ordering a 
project to be acquired or improved and may contract with a 
person to construct or improve a project, issue bonds or 
otherwise finance the cost of the project and levy 
assessments, without complying with the provisions of NRS 
271.305 to 271.320, inclusive, 271.330 to 271.345, 
inclusive, 271.380 and 271.385 and except as otherwise 
provided in this section, the provisions of any law 
requiring public bidding or otherwise imposing requirements 
on any public contract, project, works or improvements, 
including, without limitation, chapters 332, 338 and 339 of 
NRS, if the governing body has entered into a written 
agreement with the owners of all of the 
\assessable\\ property within the district which 
states that:
  (a) The governing body agrees to enter into a contract for 
the acquisition, construction or improvement of the project 
or projects in the district which includes:
    (1) A provision stating that the requirements of NRS 
338.010 to 338.090, inclusive, apply to any construction 
work to be performed under the contract; and
    (2) The price, stated as a lump sum or as unit prices, 
which the governing body agrees to pay for the project if 
the project meets all requirements and specifications in the 
contract.
  (b) The owners of the \assessable\\ property 
agree that if the rate of interest on any assessment levied 
for the district is determined from time to time as provided 
in NRS 271.487, the owners will provide written notice to 
the governing body in a timely manner when a parcel of the 
\assessable\\ property in the district is sold to a 
person who intends to occupy a dwelling unit on the parcel 
as his residence.
  (c) The owners of the \assessable\\ property 
agree that the governing body may create the district, levy 
the assessments and for all other purposes relating to the 
district proceed pursuant to the provisions of this section.
  2.  If an ordinance is adopted and the agreement entered 
into pursuant to subsection 1 so states:
  (a) The governing body may amend the ordinance creating 
the district, change the assessment roll and redistribute 
the assessments required by NRS 271.390 in the same manner 
in which these actions were originally taken to add 
additional property to the district. The assessments may be 
redistributed between the \assessable\\ property 
originally in the district and the additional 
\assessable\\ property if:
    (1) The owners of [the] additional 
\assessable\\ property also consent in writing to 
inclusion of their property in the district and to the 
amount of the assessment against their property; and
    (2) The redistribution of the assessments is not 
prohibited by any covenants made for the benefit of the 
owners of any bonds or interim warrants issued for the 
district.
  (b) The governing body may amend the ordinance creating 
the district, change the assessment roll and redistribute 
the assessments required by NRS 271.390 in the same manner 
in which these actions were originally taken to remove 
\assessable\\ property from the district. The 
assessments may be redistributed among the 
\assessable\\ property remaining in the district 
if:
    (1) The owners of the remaining 
\assessable\\ property consent in writing to the 
amount of the revised assessment on their property; and
    (2) The redistribution of the assessments is not 
prohibited by any covenants made for the benefit of the 
owners of any bonds or interim warrants issued for the 
district.
  (c) The governing body may adopt any ordinance pertaining 
to the district including the ordinance creating the 
district required by NRS 271.325, the ordinance authorizing 
interim warrants required by NRS 271.355, the ordinance 
levying assessments required by NRS 271.390, the ordinance 
authorizing bonds required by NRS 271.475 or any ordinance 
amending those ordinances after a single reading and without 
holding a hearing thereon, as if an emergency exists, 
\upon an affirmative vote of not less than two-thirds 
of all voting members of the governing body, excluding from 
any computation any vacancy on the governing body and any 
members thereon who may vote to break a tie vote,\\ and 
provide that the ordinances become effective at the time an 
emergency ordinance would have become effective. \The 
provisions of NRS 271.308 do not apply to any such 
ordinance.\\
  (d) The governing body may provide for a reserve fund, 
letter of credit, surety bond or other collateral for 
payment of any interim warrants or bonds issued for the 
district and include all or any portion of the costs thereof 
in the amounts assessed against the property in the district 
and in the amount of bonds issued for the district. [If a 
reserve fund is created, the] \The\\ governing body 
may provide for the disposition of interest earned on the 
reserve fund and \other bond proceeds,\\ for the 
disposition of \unexpended bond proceeds after 
completion of the project and for the disposition of\\ 
the unexpended balance in the reserve fund after payment in 
full of the bonds for the district.
  Sec. 4.  NRS 271.720 is hereby amended to read 
as follows:
  271.720  1.  Any agreement made pursuant to NRS 271.710 
must:
  (a) Include a description of the property in the district;
  (b) Be signed by the chairman of the governing body and 
the owners of all \assessable\\ property within the 
district;
  (c) Be accompanied by an acknowledgment of each signature; 
and
  (d) Be recorded in the office of the county recorder.
   2.  Upon recording pursuant to paragraph (d) of subsection 
1, the agreement:
  (a) Is binding on all subsequent owners of [the] 
\assessable\\ property in the district;
  (b) Is not extinguished by the sale of any property on 
account of nonpayment of general taxes or any other sale of 
the property; and
  (c) Is prior and superior to all liens, claims, 
encumbrances and titles other than the liens of assessment 
and general taxes.
  3.  As a condition to executing an agreement pursuant to 
NRS 271.710, the governing body may require that the 
[property] owners \of assessable property\\ make a 
deposit of cash, a surety bond, a letter of credit or such 
other security as is deemed appropriate by the governing 
body, in such an amount as will reimburse the municipality 
for all its expenses in connection with the district 
including, without limitation, the cost of:
  (a) Designing and preparing plans and specifications for 
the improvements;
  (b) Inspecting any work performed and any improvements 
installed;
  (c) Any engineering, legal, financial or other experts 
retained by the municipality to advise it with respect to 
the district;
  (d) Any mailings or publications made in connection with 
the district; and
  (e) Any administrative costs, including any carrying cost 
and an appropriate portion of the salary of any municipal 
employee or employees who perform services in connection 
with the district,
and any other costs the municipality may incur in connection 
with the district.
  4.  The deposit required pursuant to subsection 3 must be 
applied to the expenses listed in subsection 3 if bonds are 
not issued or if the proceeds of the bonds are not 
sufficient to pay those expenses.
  Sec. 5.  1.  This section and sections 1 and 2 
of this act become effective upon passage and approval.
  2.  Sections 3 and 4 of this act become effective on 
October 1, 1995.

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