Economic Development and Tourism - GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE - “Director” defined.

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[Rev. 10/19/2018 4:58:51 PM]

[NAC-231 Revised Date: 10-18]

CHAPTER 231 - ECONOMIC DEVELOPMENT AND TOURISM

OFFICE OF ECONOMIC DEVELOPMENT

General Provisions

231.001              Definitions.

231.003              “Authorized provider” defined.

231.006              “Client” defined.

231.011              “Economic development” defined.

231.015              “Executive Director” defined.

231.031              “State Plan for Economic Development” defined.

231.053              Certification of businesses for certain benefits: Factors for determination whether business is consistent with the State Plan for Economic Development.

231.055              Certification of businesses for certain benefits: Interpretation of certain statutory terms.

231.060              Written request by client to keep records and documents confidential; determination by Office whether record or document contains proprietary or confidential information; approval or denial of request.

231.070              Recipient of allocation, grant, or loan of money required to enter into agreement with Office upon approval of application.

231.075              Conditions for disbursement of allocation, grant or loan of money; request for disbursement on prescribed form; approval, denial or modification of request.

Nonprofit Corporations for Economic Development

231.140              Annual report of activities; evaluation of information by Executive Director; verification that nonprofit corporation furthers public interest; confidentiality; posting reports on Internet website of Office.

Regional Development Authorities

231.161              Request for proposals for designation as regional development authority for a region.

231.166              Criteria for consideration of requests for proposals.

231.171              Review of proposed contracts, allocations, grants or loans by Board of Economic Development.

231.176              Contents of recruitment and marketing plan; update of plan; acceptance, modification or denial; posting plans on Internet website of Office; quarterly reporting on activities.

Local Emerging Small Businesses

231.200              Certification: Requirements; application and supporting documentation; determination; written notice.

231.205              Certification: Interpretation of certain requirements for eligibility.

231.210              Certification: Interpretation of certain terms used to determine designation as a tier 1 or tier 2 firm.

231.215              Certification: Validity; notice of expiration; renewal.

231.220              Applicant for certification and certified business required to notify Office of change to certain information.

231.225              Filing complaint; investigation; appointment of panel; notice of determination; revocation of certificate.

231.230              Investigations by Office; revocation of certificate.

231.235              Submission of required reports: “Solicited to submit a bid or proposal” interpreted.

231.240              Office to meet with authorized representatives to establish and achieve certain goals.

Program of Training for Employees of Business

231.300              “Business” construed.

231.305              Application for approval of program of workforce recruitment, assessment and training; addition of approved applicant to list of authorized providers; update of information if changes to program.

231.310              Preapplication by business for participation in program; approval, modification or denial; criteria for approval.

231.315              Allocation, grant or loan of money to defray cost of program: Request by authorized provider or local governing body; considerations for approval or denial; priority for distributions.

231.320              Allocation, grant or loan of money to defray cost of program: Recipient must not use money to supplant money otherwise available; requirement to purchase equipment from Nevada System of Higher Education; acceptance of liability for equipment.

231.323              Allocation, grant or loan of money to defray cost of program: Quarterly reporting by authorized provider on progress of program; annual summary of reports; assistance by Office and Department of Employment, Training and Rehabilitation.

231.327              Allocation, grant or loan of money to defray cost of program: Authority of Executive Director to refuse to make disbursement; written notice of refusal; cure of noncompliance; requirement of recipient to refund.

231.330              Exclusion of persons from program based upon nonmembership in labor organization prohibited.

Transferable Tax Credits to Promote Economic Development

231.350              Definitions.

231.355              “Certified entity” defined.

231.360              “New primary job” defined.

231.363              “Primary job” defined.

231.367              “Transferable tax credit” defined.

231.372              Application for certificate of eligibility; assistance by Office and Executive Director; determination on application.

231.375              Agreement with certified entity upon approval of application.

231.380              Investigation of certified entity to determine compliance with agreement.

231.385              Grounds for determination certified entity not in compliance with, and in default on, agreement.

Catalyst Account

231.400              Definitions.

231.405              “Catalyst Account” defined.

231.407              “Catalyst Account disbursement” defined.

231.415              “New primary job” defined.

231.418              “Primary job” defined.

231.422              “Sponsoring municipality” defined.

231.430              Application for grant or loan from Account; assistance by Office and Executive Director; determination on application.

231.435              Agreement between Office and sponsoring municipality upon approval of application.

231.438              Agreement between sponsoring municipality and business receiving disbursement from Account; accrual of interest to Account if agreement becomes void.

231.440              Conditions for disbursement of grant or loan of money from Account.

231.445              Investigation of business receiving disbursement from Account to determine compliance with agreement; immediate notification of noncompliance to Executive Director.

231.450              Grounds for determination sponsoring municipality not in compliance with agreement; authority of Executive Director to refuse to make grant or loan; written notice of noncompliance; cure of noncompliance; voiding of agreement if no cure.

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

231.500              Definitions.

231.505              “Air carrier” defined.

231.510              “Commission” defined.

231.515              “Director” defined.

231.520              “Grant” defined.

231.525              Application for grant: Form and contents; presentation; review; approval or disapproval; responsibilities of applicant.

231.530              Eligibility for grant.

231.535              Use of grant; contribution by airport or recipient of grant.

231.540              Agreement with Commission.

231.545              Disbursement of money from grant.

231.550              Failure to comply with agreement.

 

 

OFFICE OF ECONOMIC DEVELOPMENT

General Provisions

     NAC 231.001  Definitions. (NRS 231.152)  As used in NAC 231.001 to 231.450, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.003 to 231.031, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006; A by Office of Economic Dev. by R113-16 & R159-16, 6-26-2018)

     NAC 231.003  “Authorized provider” defined. (NRS 231.152)  “Authorized provider” has the meaning ascribed to it in NRS 231.1415.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.006  “Client” defined. (NRS 231.152)  “Client” means a person, company or representative of a company with whom the Office is in contact concerning the potential to create a business in, relocate a business to or expand its workforce in Nevada.

     (Added to NAC by Office of Economic Dev. by R113-16 & R159-16, eff. 6-26-2018)

     NAC 231.011  “Economic development” defined. (NRS 231.152)  “Economic development” means the business activities and governmental policies that improve the economic status of this State or a region of this State. These activities and policies include, without limitation, the diversification of the economy of this State, the development and support of entrepreneurs, the development and support of business leaders, the development and support of global trade and investment and the education and training of the workforce in this State.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006; A by Office of Economic Dev. by R113-16 & R159-16, 6-26-2018)

     NAC 231.015  “Executive Director” defined. (NRS 231.152)  “Executive Director” means the Executive Director of the Office.

     (Added to NAC by Comm’n on Econ. Development by R046-06, eff. 6-28-2006)

     NAC 231.031  “State Plan for Economic Development” defined. (NRS 231.152)

     “State Plan for Economic Development” means the State Plan for Economic Development developed by the Executive Director pursuant to subsection 2 of NRS 231.053.

     (Added to NAC by Office of Economic Dev. by R113-16 & R159-16, eff. 6-26-2018)

     NAC 231.053  Certification of businesses for certain benefits: Factors for determination whether business is consistent with the State Plan for Economic Development. (NRS 231.053, 231.139, 231.152)  The Executive Director, the Office or the Board, as applicable, will determine that a business is consistent with the State Plan for Economic Development if:

     1.  The business is part of an industry that is consistent with the State Plan for Economic Development;

     2.  The average hourly wage paid by the business to its employees in this State:

     (a) Meets the standards set forth in NRS 360.750 or the statute or regulation governing the particular allocation, grant or loan of money or other incentive for economic development for which the business is applying; or

     (b) Is determined by the Board to promote the economic development of this State and aid the implementation of the State Plan for Economic Development;

     3.  The business provides a health insurance plan for all employees that includes, without limitation, an option for health insurance coverage for dependents of employees;

     4.  The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and any other permit required by the state, county, city or town in which the business operates or will operate;

     5.  If the business is applying for an abatement pursuant to paragraph (a) of subsection 1 of NRS 701A.210, the business agrees to provide the Office, at its request, with proof that the business is in compliance with the provisions of that paragraph; and

     6.  If the business is being considered for the benefits provided pursuant to NRS 704.223, the business has executed an agreement with the Office that grants the Office the right to review any document which the Office determines is necessary to verify the eligibility of the business for the benefits provided pursuant to that section.

     (Added to NAC by Comm’n on Econ. Development by R145-07, eff. 4-17-2008; A by Office of Economic Dev. by R113-16 & R159-16, 6-26-2018)

     NAC 231.055  Certification of businesses for certain benefits: Interpretation of certain statutory terms. (NRS 231.139, 231.152)  As used in NRS 231.139:

     1.  “Intermediate product” means any product that has been processed from its initial raw material stage, but has not yet been made into its final form;

     2.  “Raw material” means material before it is manufactured into a final form or intermediate product; and

     3.  “Recycle on-site” means to take a raw material or an intermediate product and physically transform that material or product into its final form on the manufacturing site.

     (Added to NAC by Comm’n on Econ. Development, eff. 9-5-97; A by Office of Economic Dev. by R113-16, 6-26-2018) — (Substituted in revision for NAC 231.020)

     NAC 231.060  Written request by client to keep records and documents confidential; determination by Office whether record or document contains proprietary or confidential information; approval or denial of request. (NRS 231.053, 231.069)

     1.  Pursuant to subsection 1 of NRS 231.069, a client may submit to the Office a written request that any record or other document provided to the Office by the client be kept confidential.

     2.  The Office may grant a request to keep confidential a record or other document if the Office determines that the record or other document contains proprietary or confidential information of the client. A record or other document may be kept confidential by the Office upon the determination of the Office that the record or other document contains proprietary or confidential information of the client, including, without limitation:

     (a) A draft of incentive terms and negotiation materials;

     (b) Intellectual property owned or being developed by the client;

     (c) Materials which are copyrighted or patented;

     (d) Financial or pro forma business plans;

     (e) Potential configuration of capital equipment at any proposed facility and the cost of such equipment;

     (f) Product development procedures, prototypes or other samples related to the client’s manufacturing process;

     (g) Proprietary software;

     (h) Maps, plans, photographs, videos, film or recordings related to any proposed facility;

     (i) Any contract or letter of intent between the client and a third party;

     (j) Details relating to transferring tax credits to a third party; and

     (k) Salaries and other personnel information.

     3.  The Office will deny a request to keep confidential a record or other document if the Office determines that the record or other document:

     (a) Does not contain proprietary or confidential information of the client; or

     (b) Has been published for public distribution or has otherwise been made available to the public.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.070  Recipient of allocation, grant, or loan of money required to enter into agreement with Office upon approval of application. (NRS 231.053, 231.152)  Unless a specific statute or regulation applies to a particular allocation, grant or loan of money or other incentive for economic development, if the Office or Executive Director approves an application for an allocation, grant or loan of money or other incentive for economic development, the recipient must enter into an agreement with the Office and the agreement must include, without limitation:

     1.  The amount of the allocation, grant or loan of money or other incentive for economic development;

     2.  The proposed use of the allocation, grant or loan of money or other incentive for economic development;

     3.  The date on which the Office or Executive Director approved the allocation, grant or loan of money or other incentive for economic development;

     4.  The objective benchmarks of performance by which the Office or Executive Director and the recipient of the allocation, grant or loan of money or other incentive for economic development will measure the progress and completion of the project for which the allocation, grant or loan of money or other incentive for economic development is provided;

     5.  A requirement that the recipient of the allocation, grant or loan of money or other incentive for economic development report to the Office periodically, and that the report include a statement of:

     (a) The progress that the recipient has made toward the completion of the benchmarks of performance established pursuant to subsection 4;

     (b) The expected dates by which the recipient will complete the benchmarks of performance established pursuant to subsection 4; and

     (c) Any other information deemed necessary by the Executive Director;

     6.  The right of the Office or Executive Director, or his or her designee, to review any document which the Office or Executive Director determines is necessary for the appropriate fiscal oversight of the project for which the allocation, grant or loan of money or other incentive for economic development is provided;

     7.  The date on or the circumstances under which the allocation, grant or loan of money or other incentive for economic development will end; and

     8.  Any additional terms, requirements or information deemed necessary by the Office or Executive Director.

     (Added to NAC by Office of Economic Dev. by R113-16 & R159-16, eff. 6-26-2018)

     NAC 231.075  Conditions for disbursement of allocation, grant or loan of money; request for disbursement on prescribed form; approval, denial or modification of request. (NRS 231.053, 231.152)

     1.  Unless a specific statute or regulation applies to a particular allocation, grant or loan of money or other incentive for economic development, the Office or the Executive Director, as applicable, may not disburse any money from an allocation, grant or loan of money or other incentive for economic development until:

     (a) The recipient of the allocation, grant or loan of money or other incentive for economic development and the Executive Director sign the agreement required by NAC 231.070;

     (b) The recipient submits a request to draw money from the allocation, grant or loan of money or other incentive for economic development; and

     (c) The Executive Director or his or her designee approves the request.

     2.  The recipient of an allocation, grant or loan of money or other incentive for economic development must make a request to draw money from the allocation, grant, loan or other incentive for economic development on a form prescribed by the Executive Director. The request must include:

     (a) The amount of money the recipient wants to draw from the allocation, grant, loan or other incentive for economic development;

     (b) The dates on which the recipient wants to draw money from the allocation, grant, loan or other incentive for economic development;

     (c) A statement identifying the progress towards completion of the agreement using the objective benchmarks established pursuant to subsection 4 of NAC 231.070 where appropriate; and

     (d) Any other information deemed necessary by the Executive Director.

     3.  The Executive Director must review and either approve, modify or deny a request to draw money from the allocation, grant or loan of money or other incentive for economic development within 15 working days after the date on which the Executive Director receives the request.

     4.  If the Executive Director approves a request to draw money from the allocation, grant or loan of money or other incentive for economic development, the Executive Director must cause payment to be issued to the recipient of the allocation, grant, loan or other incentive for economic development in the amount requested by the recipient or in the modified amount approved by the Executive Director.

     5.  If the Executive Director denies or modifies a request to draw money from the allocation, grant or loan of money or other incentive for economic development, the Executive Director must provide the recipient who made the request with a written statement:

     (a) Stating the reason for the denial or modification of the request; and

     (b) Describing any actions the recipient must take to receive full approval of the request from the Executive Director.

     (Added to NAC by Office of Economic Dev. by R113-16 & R159-16, eff. 6-26-2018)

Nonprofit Corporations for Economic Development

     NAC 231.140  Annual report of activities; evaluation of information by Executive Director; verification that nonprofit corporation furthers public interest; confidentiality; posting reports on Internet website of Office. (NRS 231.0545, 231.152)

     1.  On or before October 31 of each year, each nonprofit corporation formed by the Executive Director pursuant to NRS 231.0545 must submit to the Office a report of the activities of the nonprofit corporation during its immediately preceding fiscal year. The report must include:

     (a) A summary of the policies and procedures of the nonprofit corporation for keeping confidential any record or other document of a client that is in the possession of the nonprofit corporation and required to be kept confidential pursuant to subsection 10 of NRS 231.0545;

     (b) A summary of the policies and procedures of the nonprofit corporation for the performance of due diligence before making a loan guarantee or an investment or loan of money to a business;

     (c) A summary of an annual audit of the financial records of the nonprofit corporation;

     (d) A summary of the policies and procedures of the nonprofit corporation for the avoidance of conflicts of interest;

     (e) Evidence satisfactory to the Office that each member of the board of directors of the nonprofit corporation, each member of any advisory committee to the board of directors, each member of the staff of the nonprofit corporation and any consultants of the nonprofit corporation do not have a personal financial interest in any:

          (1) External asset manager or venture capital or private equity investment firm contracting with the nonprofit corporation; or

          (2) Business to which the nonprofit corporation makes a loan guarantee or an investment or loan of money; and

     (f) A review of the progress reports provided by any business to which the nonprofit corporation makes a loan guarantee or an investment or loan of money.

     2.  The Executive Director shall evaluate the information in the report submitted by the nonprofit corporation pursuant to subsection 1 and may create an assessment of the overall performance of the nonprofit corporation. The assessment may include, without limitation:

     (a) An evaluation of the return on investment from any loan guarantee or investment or loan of money made by the nonprofit corporation;

     (b) The number of jobs created or retained as a result of loan guarantees or investments or loans of money made by the nonprofit corporation;

     (c) A projection of the increase in tax revenue as a result of the creation, retention or expansion of businesses because of loan guarantees or investments or loans of money made by the nonprofit corporation;

     (d) The number of businesses created, retained or expanded because of loan guarantees or investments or loans of money made by the nonprofit corporation; and

     (e) Any other information relevant to the economic development of this State as determined by the Executive Director.

     3.  Based on his or her evaluation of the information in the report submitted by the nonprofit corporation pursuant to subsection 1, the Executive Director must, on or before December 1 of each year, verify whether the nonprofit corporation formed pursuant to NRS 231.0545 furthers the public interest in economic development.

     4.  Information in a report submitted pursuant to subsection 1 may be deemed confidential pursuant to NRS 231.069.

     5.  Except as otherwise provided in subsection 4, the Office will post on its Internet website any report or assessment received or created pursuant to this section.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

Regional Development Authorities

     NAC 231.161  Request for proposals for designation as regional development authority for a region. (NRS 231.053)  For the purpose of designating a regional development authority for a region of this State pursuant to subsection 4 of NRS 231.053, the Executive Director may issue a request for proposals from persons or entities qualified to be designated as a regional development authority.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.166  Criteria for consideration of requests for proposals. (NRS 231.053)  When reviewing proposals submitted pursuant to NAC 231.161 for the designation of regional development authorities pursuant to subsection 4 of NRS 231.053, the Executive Director may consider:

     1.  The overall quality of the proposal of the applicant;

     2.  The economy of the region of this State that the applicant proposes to serve;

     3.  Past performance of other regional development authorities in the region of this State that the applicant proposes to serve;

     4.  Input from the Board;

     5.  Input from state and local governmental officials;

     6.  Input from interested parties and the general public; and

     7.  Any other criteria as determined by the Executive Director.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.171  Review of proposed contracts, allocations, grants or loans by Board of Economic Development. (NRS 231.053, 231.057)  Not less than 30 days after the end of each fiscal year, the Board will review each proposed:

     1.  Contract between the Executive Director and a regional development authority pursuant to which the regional development authority is paid more than $100,000.

     2.  Allocation, grant or loan of money of more than $100,000 that is made by the Executive Director to a regional development authority.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.176  Contents of recruitment and marketing plan; update of plan; acceptance, modification or denial; posting plans on Internet website of Office; quarterly reporting on activities. (NRS 231.053, 231.054)

     1.  A recruitment and marketing plan submitted to the Executive Director by a regional development authority must include:

     (a) Goals for the economic development of the region of this State served by the regional development authority, which must be consistent with the State Plan for Economic Development;

     (b) Strategies and initiatives for achieving the goals included in the plan pursuant to paragraph (a);

     (c) Objective criteria for evaluating the effectiveness of the regional development authority in achieving the goals included in the plan pursuant to paragraph (a);

     (d) Any other information that the regional development authority deems essential to describing the plan; and

     (e) Any other information requested by the Executive Director.

     2.  At the times set forth in any agreement between the Executive Director and a regional development authority, the regional development authority must update the recruitment and marketing plan of the regional development authority which must include:

     (a) An evaluation of the effectiveness of the regional development authority in achieving the goals included in the plan pursuant to paragraph (a) of subsection 1;

     (b) Any proposed changes to the objective criteria included in the plan pursuant to paragraph (c) of subsection 1;

     (c) Any proposed changes or additions to the plan;

     (d) Any other information that the regional development authority deems essential to describing the plan; and

     (e) Any other information requested by the Executive Director.

     3.  The Executive Director may accept, modify or deny a recruitment and marketing plan submitted to the Executive Director by a regional development authority or any update to the plan submitted to the Executive Director by a regional development authority pursuant to subsection 1 or 2, as applicable.

     4.  The Office will post on its Internet website each recruitment and marketing plan, and each update to a recruitment and marketing plan approved by the Executive Director pursuant to subsection 3.

     5.  Not later than 30 days after the end of each calendar quarter, a regional development authority must provide to the Executive Director a quarterly report on a form prescribed by the Executive Director. Each quarterly report:

     (a) Must include:

          (1) Information concerning the business recruitment and retention activities of the regional development authority; and

          (2) Any other information requested by the Executive Director.

     (b) May include:

          (1) Information concerning the progress of the strategies and initiatives included in the recruitment and marketing plan pursuant to paragraph (b) of subsection 1;

          (2) Recommendations for legislative or regulatory changes related to the economic development of the region served by the regional development authority;

          (3) Recommendations for any changes to the State Plan for Economic Development that the regional development authority believes will improve the State Plan; and

          (4) Any other information deemed necessary by the regional development authority.

     6.  As used in this section, “recruitment and marketing plan” means the plan regarding the development and enhancement of a recruiting and marketing effort to attract professionals and businesses to the region of this State served by a regional development authority, which is submitted by a regional development authority to the Executive Director pursuant to NRS 231.054.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

Local Emerging Small Businesses

     NAC 231.200  Certification: Requirements; application and supporting documentation; determination; written notice. (NRS 231.1408)

     1.  The Office will certify as a local emerging small business a business that satisfies the requirements set forth in this section and NRS 231.1405 and 231.14055.

     2.  To obtain certification as a local emerging small business, a business must:

     (a) Submit a complete application to the Office on a form prescribed and provided by the Office.

     (b) Attest on the application that the business satisfies the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405.

     (c) Submit to the Office the documentation required by the Office to establish that the business satisfies the criteria set forth in NRS 231.1405.

     3.  A business may submit to the Office an application to obtain certification as a local emerging small business and the supporting documentation required by subsection 2 by using the Office’s online application process or by mail or in person at the address provided on the application form.

     4.  Upon receipt of a complete application, the Office will review the application and supporting documentation submitted by the applicant and determine whether the applicant satisfies the requirements to obtain certification as a local emerging small business, as set forth in this section and NRS 231.1405 and 231.14055.

     5.  The Office may delay or deny the certification of an applicant for certification as a local emerging small business if the applicant fails to disclose information required by the application or submits a materially incomplete application.

     6.  The Office will provide each applicant for certification as a local emerging small business written notification of its determination pursuant to subsection 4 within 90 days after receipt of the application.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.205  Certification: Interpretation of certain requirements for eligibility. (NRS 231.1405, 231.1408)  For the purpose of determining whether a business satisfies the criteria for certification as a local emerging small business, as set forth in NRS 231.1405, the Office interprets the requirement that a business:

     1.  Maintain its principal place of business in this State to mean that the address identified on the state business license of the business must be a physical address located in this State.

     2.  Be operated for profit to mean that the normal business operations of the business are intended to earn a profit and that the income or profit of the business is distributable to its owners or shareholders.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.210  Certification: Interpretation of certain terms used to determine designation as a tier 1 or tier 2 firm. (NRS 231.1405, 231.1408)  For the purpose of determining whether a business satisfies the criteria for certification as a tier 1 firm or a tier 2 firm pursuant to NRS 231.1405, the Office:

     1.  Interprets the term “annual gross receipts” to mean the total amount of sales by the business during a fiscal year as reported on the business’s federal income tax return.

     2.  Will determine that a business is “involved in providing construction services” if the business:

     (a) Is a person who is licensed pursuant to chapter 624 of NRS and who provides labor, materials, equipment or supplies for the construction, repair or reconstruction of any building, highway, road, railroad, excavation or other structure, project, development or improvement; or

     (b) Employs as an employee of the business a design professional as defined in NRS 338.010.

     3.  Will determine that a business is “involved in the sale of goods” if the business sells goods as defined in NRS 104.2105.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.215  Certification: Validity; notice of expiration; renewal. (NRS 231.1408)

     1.  A certification as a local emerging small business is valid until 2 years after the last day of the month in which it is issued or renewed, unless the certification is renewed.

     2.  Not less than 60 days before the expiration of the certification of a local emerging small business, the Office will send to the local emerging small business a written notice of the expiration of the certification and an affidavit on a form prescribed by the Office which the local emerging small business may complete and return to the Office to renew its certification. The failure of a local emerging small business to receive a notice does not excuse it from the requirement to comply with the provisions of subsection 3.

     3.  To renew its certification, a local emerging small business must submit to the Office, at least 10 days before the expiration of the certification, the completed affidavit provided by the Office pursuant to subsection 2 and all supporting documentation required by the Office to establish that the local emerging small business continues to satisfy the criteria set forth in NRS 231.1405. The affidavit and documentation required by this subsection may be submitted to the Office through the Office’s online renewal process or by mail or in person to the address identified on the affidavit.

     4.  If a local emerging small business submits an affidavit and all supporting documentation required by the Office at least 10 days before the expiration date of the certification, the certification of the local emerging small business is valid until the Office determines whether the local emerging small business satisfies the requirements for certification set forth in NRS 231.1405. The Office will determine whether to renew the certification within 90 days after receiving a request for renewal.

     5.  The Office may delay or deny the renewal of a certification as a local emerging small business if the local emerging small business fails to comply with the requirements of this section.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.220  Applicant for certification and certified business required to notify Office of change to certain information. (NRS 231.1408)  An applicant for certification as a local emerging small business and each local emerging small business certified by the Office shall notify the Office of any change in its business address, electronic mail address or telephone number and of any other change which may affect its eligibility to be certified as a local emerging small business.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.225  Filing complaint; investigation; appointment of panel; notice of determination; revocation of certificate. (NRS 231.1408)

     1.  Any individual, firm or agency who believes that a local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200, may file a complaint with the Office.

     2.  Upon receipt of a complaint, the Office will investigate the allegations made in the complaint.

     3.  The Executive Director shall appoint a panel of three individuals who must not be employees of the Office to review the information, documentation and other materials obtained during the Office’s investigation and to make a determination of whether the local emerging small business that is the subject of the complaint satisfies the criteria to be certified as a local emerging small business.

     4.  The Office will issue to the complainant and the local emerging small business that is the subject of the complaint written notice of the determination of the panel appointed pursuant to subsection 3.

     5.  The Office may revoke the certification of a local emerging small business if the panel appointed pursuant to subsection 3 determines that the local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.230  Investigations by Office; revocation of certificate. (NRS 231.1408)

     1.  The Office may conduct investigations to determine whether a local emerging small business satisfies the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     2.  The Office may revoke the certification of a local emerging small business if the Office determines that the local emerging small business does not satisfy the criteria to be certified as a local emerging small business, as set forth in NRS 231.1405 and 231.14055 and NAC 231.200.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.235  Submission of required reports: “Solicited to submit a bid or proposal” interpreted. (NRS 231.1408)

     1.  For the purposes of the reports required to be submitted to the Office pursuant to NRS 332.201, 333.177 and 338.1427, the Office interprets the term “solicited to submit a bid or proposal” to mean issuing an invitation to participate in a bid or proposal for a local purchasing contract, state purchasing contract or contract for a public work, as applicable.

     2.  As used in this section, “contract for a public work” means a written contract between a contractor and a public body for the provision of labor, materials, equipment or supplies for a public work and a written contract between a design professional and a public body who is not a member of a design-build team for the provision of services in connection with a public work. As used in this subsection, “contractor,” “design-build team,” “design professional,” “public body” and “public work” have the meanings ascribed to them in NRS 338.010.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

     NAC 231.240  Office to meet with authorized representatives to establish and achieve certain goals. (NRS 231.1408)

     1.  The Office will meet with authorized representatives of the Purchasing Division of the Department of Administration and the State Public Works Division of the Department of Administration to receive input and provide advice concerning the establishment and achievement of the goals required to be established pursuant to subsection 1 of NRS 231.1407.

     2.  The Office will meet with authorized representatives of the governing body of each local government in a county whose population is 100,000 or more to receive input and provide advice concerning the establishment and achievement of goals for the award of local purchasing contracts and contracts for public works of the local government to local emerging small businesses.

     (Added to NAC by Office of Economic Dev. by R102-13, eff. 12-23-2013)

Program of Training for Employees of Business

     NAC 231.300  “Business” construed. (NRS 231.152)  For the purposes of NRS 231.141 to 231.152, inclusive, and NAC 231.300 to 231.330, inclusive, the term “business” includes, without limitation, an entity which:

     1.  Has registered with the Office of Secretary of State as a nonprofit corporation pursuant to chapter 82 of NRS or which has received a certificate of authority from the Commissioner of Insurance pursuant to chapter 695B of NRS;

     2.  Is exempt from federal income tax pursuant to 26 U.S.C. § 501; and

     3.  Engages in an activity that is consistent with the State Plan for Economic Development.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.305  Application for approval of program of workforce recruitment, assessment and training; addition of approved applicant to list of authorized providers; update of information if changes to program. (NRS 231.152)

     1.  A person who wishes to provide a program of workforce recruitment, assessment and training may apply to the Office for approval of the program pursuant to NRS 231.1467. In addition to the information required to be included in the application pursuant to NRS 231.1467, the application must include:

     (a) The electronic mail address of the applicant;

     (b) The primary economic sector that will be served by the program for which the applicant is seeking approval;

     (c) A statement demonstrating the past performance of the applicant in providing workforce development programs, including, without limitation:

          (1) The number and type of credentials and certifications issued by workforce development programs provided by the applicant; and

          (2) The number of businesses successfully served by workforce development programs provided by the applicant;

     (d) A proposed plan for the provision of the program for which the applicant is seeking approval on a statewide basis;

     (e) A list of existing equipment or facilities that will be used by the program for which the applicant is seeking approval;

     (f) The industries that will be developed by the program for which the applicant is seeking approval;

     (g) A proposed payment schedule for the program for which the applicant is seeking approval;

     (h) A projection of the number of primary jobs that will be served by the program for which the applicant is seeking approval and the wages for those jobs;

     (i) A projection of the amount of capital investment in this State that is associated with primary jobs served by the program for which the applicant is seeking approval;

     (j) For each business to be served by the program for which the applicant is seeking approval, a statement of the amount of materials used to create the products of that business that are produced or bought in this State;

     (k) Evidence satisfactory to the Office that the program is consistent with the unified state plan submitted by the Governor to the Secretary of Labor pursuant to 29 U.S.C. § 3112; and

     (l) Any other information requested by the Executive Director.

     2.  Upon approval of an application submitted pursuant to subsection 1, the Office will add the name and contact information of the authorized provider to the list of authorized providers maintained on the Internet website of the Office.

     3.  The Executive Director may require any approved authorized provider to update the information included in an application submitted pursuant to subsection 1 if the authorized provider changes the program as originally approved. Within 60 days after receipt of such updated information, the Executive Director shall review the updated information and make a determination whether to maintain the approval of the program of workforce recruitment, assessment and training.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.310  Preapplication by business for participation in program; approval, modification or denial; criteria for approval. (NRS 231.152)

     1.  A person who operates or will operate a business in this State may apply to the Office to participate in a program of workforce recruitment, assessment and training provided pursuant to NRS 231.1467. To apply to participate in such a program, the person must submit a preapplication to the Office on a form prescribed by the Executive Director. A preapplication must include:

     (a) A description of the program, including, without limitation, the skills proposed to be taught through the program;

     (b) A projection of the number of primary jobs to be created by the business of the applicant and the wages and benefits for those primary jobs;

     (c) A projection of the amount of the capital investment that will be made in this State by the business of the applicant;

     (d) A statement explaining the relevance and impact of the business of the applicant on the economic sectors that are targeted by the State Plan for Economic Development;

     (e) A statement of the amount of materials used to create the products of the applicant’s business that are produced or bought in this State;

     (f) Evidence satisfactory to the Office that the program is consistent with the unified state plan submitted by the Governor to the Secretary of Labor pursuant to 29 U.S.C. § 3112;

     (g) A plan to develop and implement a workforce diversity action plan; and

     (h) Any other information deemed necessary by the Executive Director.

     2.  Within 45 days after receiving a completed preapplication pursuant to subsection 1, the Executive Director shall review the preapplication and shall approve, modify or deny the preapplication. The Executive Director may approve the applicant if he or she determines that the applicant’s participation in the program of workforce recruitment, assessment and training will promote the economic development of this State and aid the implementation of the State Plan for Economic Development. In making such a determination, the Executive Director shall consider:

     (a) The projected number of primary jobs to be created by the business of the applicant and the wages for those primary jobs;

     (b) The projected amount of capital investment that will be made in this State by the business of the applicant; and

     (c) Any additional criteria deemed necessary by the Executive Director.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.315  Allocation, grant or loan of money to defray cost of program: Request by authorized provider or local governing body; considerations for approval or denial; priority for distributions. (NRS 231.152)

     1.  If, pursuant to subsection 5 of NRS 231.1467, an authorized provider that provides a program of workforce recruitment, assessment and training approved by the Office pursuant to NRS 231.1467 or the governing body of a local government within the jurisdiction of which the authorized provider will provide the program is requesting an allocation, grant or loan of money in an amount of $100,000 or less, within 45 days after receipt of the application submitted by the authorized provider or governing body, as applicable, the Executive Director must:

     (a) Review the application in consultation with the Nevada System of Higher Education, the Department of Employment, Training and Rehabilitation, the Department of Education and any other person or governmental entity which the Executive Director determines is appropriate to consult; and

     (b) Approve, modify or deny the application.

     2.  If, pursuant to subsection 5 of NRS 231.1467, an authorized provider that provides a program of workforce recruitment, assessment and training approved by the Office pursuant to NRS 231.1467 or the governing body of a local government within the jurisdiction of which the authorized provider will provide the program is requesting an allocation, grant or loan of money in an amount greater than $100,000, within 45 days after receipt of the application submitted by the authorized provider or governing body, as applicable, the Executive Director must:

     (a) Review the application in consultation with the Nevada System of Higher Education, the Department of Employment, Training and Rehabilitation, the Department of Education and any other person or governmental entity which the Executive Director determines is appropriate to consult; and

     (b) Make a recommendation to the Board for the approval, modification or denial of the application at the next meeting of the Board.

     3.  In addition to the considerations required by subsection 6 of NRS 231.1467, the Executive Director or Board, as applicable, will consider the availability of money when considering whether to approve an application for an allocation, grant or loan of money pursuant to subsection 5 of NRS 231.1467.

     4.  If the Executive Director or the Board, as applicable, have approved multiple applications for an allocation, grant or loan of money pursuant to subsection 6 of NRS 231.1467 but sufficient money is not available to distribute each allocation, grant or loan of money, the Board must determine the priority for distributing the allocations, grants or loans of money and the Office will notify each authorized provider or governing body whose distribution of an allocation, grant or loan is deferred. When sufficient money is available to distribute the allocation, grant or loan of money, the Board, in its discretion, may distribute each allocation, grant or loan of money in the order of priority determined by the Board.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.320  Allocation, grant or loan of money to defray cost of program: Recipient must not use money to supplant money otherwise available; requirement to purchase equipment from Nevada System of Higher Education; acceptance of liability for equipment. (NRS 231.152)

     1.  Any recipient of an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 must not use the allocation, grant or loan of money to supplant money received from another federal, state or other public or private entity that would otherwise be used in the absence of the allocation, grant or loan of money.

     2.  Any equipment purchased by the recipient of an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 must be purchased from the Nevada System of Higher Education. If the authorized provider is a private for-profit or nonprofit entity, at the conclusion of the program provided by the authorized provider, the authorized provider must return any equipment to the Nevada System of Higher Education if the System requests the return of the equipment and agrees to provide assistance in returning the equipment to the System.

     3.  Any private for-profit or nonprofit entity that is an authorized provider and that purchases equipment from the Nevada System of Higher Education with an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 must agree to accept all liability and hold harmless this State and the Nevada System of Higher Education for any claim resulting from the installation, maintenance or operation of any such equipment.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.323  Allocation, grant or loan of money to defray cost of program: Quarterly reporting by authorized provider on progress of program; annual summary of reports; assistance by Office and Department of Employment, Training and Rehabilitation. (NRS 231.152)

     1.  An authorized provider that receives an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 must submit a quarterly report to the Executive Director on the progress of the program of workforce recruitment, assessment and training, the cost of which was paid in whole or in part with the allocation, grant or loan of money. The report must include, without limitation:

     (a) The number of persons who:

          (1) Applied to participate in the program;

          (2) Were accepted into the program; and

          (3) Successfully completed the program;

     (b) The type and number of credentials or certifications issued through the program;

     (c) The average number of hours of training received by each person participating in the program;

     (d) The number of persons currently enrolled in the program;

     (e) The number of persons who successfully completed the program and are employed by a business participating in the program;

     (f) The average wage of the employees who successfully completed the program;

     (g) The number of persons who successfully completed the program who are employed or participating in another job training or apprenticeship program not identified in the initial program application;

     (h) An evaluation of the efficacy of the program’s workforce diversity action plan; and

     (i) Any other information deemed necessary by the Executive Director.

     2.  In addition to the quarterly report required pursuant to subsection 1, not later than December 15 of each year, an authorized provider must also submit an annual report to the Office that summarizes the information provided in the four previous quarterly reports submitted to the Office pursuant to subsection 1.

     3.  The Office and the Department of Employment, Training and Rehabilitation may provide assistance and information for the long-term employment of persons who successfully completed a program of workforce recruitment, assessment and training, the cost of which was paid in whole or in part with an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.327  Allocation, grant or loan of money to defray cost of program: Authority of Executive Director to refuse to make disbursement; written notice of refusal; cure of noncompliance; requirement of recipient to refund. (NRS 231.152)

     1.  If the Executive Director has reason to believe that a recipient is not using an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 in accordance with the agreement entered into by the recipient and the Office pursuant to NAC 231.070, the Office may refuse to make a disbursement from the allocation, grant or loan to the recipient. 

     2.  If, pursuant to subsection 1, the Executive Director refuses to make a disbursement from an allocation, grant or loan of money, the Executive Director must provide written notice of the refusal to the recipient of the allocation, grant or loan. The notice must set forth the reasons that the Executive Director found the recipient not to be in compliance with the agreement entered into by the recipient and the Office pursuant to NAC 231.070.

     3.  After receiving a written notice pursuant to subsection 2, the recipient must:

     (a) Within 30 days after receipt of the notice, cure all areas of noncompliance and notify the Executive Director that it has cured such noncompliance; or

     (b) Provide information to the Executive Director detailing the recipient’s compliance with the agreement entered into by the recipient and the Office.

     4.  Upon receiving the information required by subsection 3, the Executive Director must make a determination as to whether the recipient is in compliance with the agreement entered into by the recipient and the Office pursuant to NAC 231.070 and notify the recipient of his or her determination.

     5.  If the Executive Director determines that the recipient is not using an allocation, grant or loan of money approved pursuant to subsection 6 of NRS 231.1467 and NAC 231.315 in accordance with the agreement entered into by the recipient and the Office pursuant to NAC 231.070, the Executive Director may require the recipient to refund to the Office all or part of the allocation, grant or loan of money. The Executive Director may require that the allocation, grant or loan of money be refunded with interest thereon at the rate set forth in NRS 99.040.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

     NAC 231.330  Exclusion of persons from program based upon nonmembership in labor organization prohibited. (NRS 231.152)  A person must not be denied the opportunity to participate in a program of workforce recruitment, assessment and training approved by the Office pursuant to NRS 231.1467 because of nonmembership in a labor organization, nor shall an authorized provider enter into any agreement, written or oral, which excludes any person from participating in such a program because of nonmembership in a labor organization.

     (Added to NAC by Office of Economic Dev. by R113-16, eff. 6-26-2018)

Transferable Tax Credits to Promote Economic Development

     NAC 231.350  Definitions. (NRS 231.053, 231.1555)  As used in NAC 231.350 to 231.385, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.355 to 231.367, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.355  “Certified entity” defined. (NRS 231.053, 231.1555)  “Certified entity” means a person who has been granted a certificate of eligibility for transferable tax credits by the Office.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.360  “New primary job” defined. (NRS 231.053, 231.1555)  “New primary job” means a primary job which was created more than 3 months before a date agreed upon by the Office and a certified entity and for which an employee has been employed for at least 3 consecutive months before the date agreed upon by the Office and the certified entity.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.363  “Primary job” defined. (NRS 231.053, 231.1555)  “Primary job” means a permanent position of employment at a physical location of a certified entity in this State if:

     1.  The employee filling that position works an average of at least 30 hours per week; and

     2.  Not less than half of the revenue generated at that location is derived from exports to locations outside of this State.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.367  “Transferable tax credit” defined. (NRS 231.053, 231.1555)  “Transferable tax credit” means a transferable tax credit issued pursuant to NRS 231.1555.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.372  Application for certificate of eligibility; assistance by Office and Executive Director; determination on application. (NRS 231.053, 231.1555)

     1.  A person who wishes to apply for a certificate of eligibility for transferable tax credits pursuant to NRS 231.1555 must submit an application to the Office on a form prescribed by the Executive Director. The application must include, without limitation:

     (a) A summary of the proposed expansion or relocation of the business that will expand or relocate in this State;

     (b) Evidence that the business that will expand or relocate in this State has the financial ability to implement its plan to expand or relocate in this State;

     (c) A statement of the reasons that the granting of the certificate of eligibility will promote the economic development of this State and aid the implementation of the State Plan for Economic Development;

     (d) A projection of the number of primary jobs that will be created as a result of the granting of the certificate of eligibility;

     (e) A projection of the amount of the capital investment that will be made in this State as a result of the granting of the certificate of eligibility;

     (f) An estimate of the economic impact of the granting of the certificate of eligibility, including, without limitation, an estimate of the tax revenue that will be generated as a result of the granting of the certificate of eligibility; and

     (g) Any other information deemed necessary by the Executive Director.

     2.  The Office may assist a person with the development of the information to be included in an application submitted pursuant to subsection 1.

     3.  The Executive Director may make recommendations to an applicant for the revision of an application submitted pursuant to subsection 1, and the applicant may revise the application upon receipt of any such recommendations.

     4.  Upon receipt of a completed application submitted pursuant to subsection 1, the Executive Director will review the application and determine whether granting the application will promote the economic development of this State and aid the implementation of the State Plan for Economic Development.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.375  Agreement with certified entity upon approval of application. (NRS 231.053, 231.1555)  If an application for a certificate of eligibility for transferable tax credits submitted pursuant to NAC 231.372 is approved, the Office will enter into an agreement with the certified entity. Such an agreement must include, without limitation:

     1.  The number of primary jobs that the certified entity must create to be awarded transferable tax credits;

     2.  The average wage that the certified entity must pay to be awarded transferable tax credits;

     3.  A requirement that the certified entity offer health insurance to the person who holds each primary job created by the entity;

     4.  A schedule for the disbursement of transferable tax credits based on the certified entity meeting targets set forth in the agreement for the creation of primary jobs;

     5.  The consent of the certified entity to the public disclosure of:

     (a) The legal name of the company operating the business of the certified entity for which transferable tax credits may be awarded;

     (b) The amount of transferable tax credits requested by the certified entity;

     (c) The requirements that the certified entity must satisfy to be awarded transferable tax credits; and

     (d) Except as otherwise provided in NRS 231.069, the following information:

          (1) Any plan for the location or expansion in this State of the business of the certified entity;

          (2) A project or program of the certified entity for which the transferable tax credits will be used; and

          (3) Any other information related to the location or expansion in this State of the business of the certified entity;

     6.  A provision providing that if the Executive Director finds that the certified entity is not in compliance with the agreement, the Executive Director:

     (a) Will provide notice to the certified entity of his or her intent to void the agreement and give the certified entity 30 days to cure the issue or issues causing the entity’s noncompliance; and

     (b) May void the agreement if the certified entity does not cure the issue or issues causing the certified entity’s noncompliance within 30 days after the issuance of the notice provided pursuant to paragraph (a);

     7.  A statement that if the agreement becomes void pursuant to subsection 6, interest must accrue on the amount of the transferable tax credits to be refunded by the certified entity beginning on the date that is 30 days after the issuance of the notice provided pursuant to paragraph (a) of subsection 6; and

     8.  Any additional agreement terms deemed necessary by the Executive Director.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.380  Investigation of certified entity to determine compliance with agreement. (NRS 231.053, 231.1555)  At the direction of the Executive Director, the Office may conduct an investigation of a certified entity to determine whether the certified entity is creating new primary jobs in accordance with the agreement entered into by the Office and the certified entity pursuant to NAC 231.375.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.385  Grounds for determination certified entity not in compliance with, and in default on, agreement. (NRS 231.053, 231.1555)  The Office may find that a certified entity is not in compliance with, and in default on, an agreement entered into with the Office pursuant to NAC 231.375 if the certified entity:

     1.  Fails to locate, initiate construction or commence operations in this State in accordance with the terms of the agreement;

     2.  Fails to create the minimum number of primary jobs required by the agreement;

     3.  Applies for or receives a tax abatement or incentive, other than a tax abatement provided pursuant to NRS 361.4722 or the transferable tax credits authorized by the agreement, from an agency or political subdivision of this State and the tax abatement or incentive was not identified on the application for a certificate of eligibility for transferable tax credits submitted to the Office pursuant to NAC 231.372; or

     4.  Has been convicted of any crime or found guilty of any malfeasance by a court of competent jurisdiction.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

Catalyst Account

     NAC 231.400  Definitions. (NRS 231.053, 231.1577)  As used in NAC 231.400 to 231.450, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.405 to 231.422, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.405  “Catalyst Account” defined. (NRS 231.053, 231.1577)  “Catalyst Account” means the Catalyst Account created by NRS 231.1573.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.407  “Catalyst Account disbursement” defined. (NRS 231.053, 231.1577)  “Catalyst Account disbursement” means a disbursement of money made to a business from a grant or loan of money made to a sponsoring municipality from the Catalyst Account pursuant to NRS 231.1577.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.415  “New primary job” defined. (NRS 231.053, 231.1577)  “New primary job” means a primary job which was created more than 3 months before a date agreed upon by a sponsoring municipality and a business receiving a Catalyst Account disbursement and for which an employee has been employed for at least 3 consecutive months before that date.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.418  “Primary job” defined. (NRS 231.053, 231.1577)  “Primary job” means a permanent position of employment at a physical location of a business in this State if:

     1.  The employee filling that position works an average of at least 30 hours per week; and

     2.  Not less than half of the revenue generated at that location is derived from exports to locations outside of this State.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.422  “Sponsoring municipality” defined. (NRS 231.053, 231.1577)  “Sponsoring municipality” means the county or incorporated city in this State approved by the Office to receive a grant or loan of money from the Catalyst Account.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.430  Application for grant or loan from Account; assistance by Office and Executive Director; determination on application. (NRS 231.053, 231.1555)

     1.  A county or incorporated city that wishes to apply for a grant or loan from the Catalyst Account must submit an application to the Office on a form prescribed by the Executive Director. The application must include, without limitation:

     (a) The information required by paragraph (a) of subsection 1 of NRS 231.1577;

     (b) A summary of the proposed expansion or relocation of any business that will expand or relocate in this State as a result of the grant or loan from the Catalyst Account;

     (c) Evidence that any business that will expand or relocate in this State as a result of the grant or loan from the Catalyst Account has the financial ability to implement its plan to expand or relocate in this State;

     (d) A statement of the reasons that the proposed use of the grant or loan from the Catalyst Account will promote the economic development of this State and aid the implementation of the State Plan for Economic Development;

     (e) A projection of the number of primary jobs that will be created as a result of the grant or loan from the Catalyst Account;

     (f) A projection of the amount of the capital investment that will be made in this State as a result of the grant or loan from the Catalyst Account;

     (g) An estimate of the economic impact of the grant or loan from the Catalyst Account, including, without limitation, an estimate of the tax revenue that will be generated as a result of the grant or loan from the Catalyst Account; and

     (h) Any other information deemed necessary by the Executive Director.

     2.  The Office may assist a county or incorporated city with the development of the information to be included in an application submitted pursuant to subsection 1.

     3.  The Executive Director may make recommendations to an applicant for the revision of an application submitted pursuant to subsection 1, and the applicant may revise the application upon receipt of any such recommendations.

     4.  Upon receipt of a completed application submitted pursuant to subsection 1, the Executive Director will review the application and determine whether the proposed use of the grant or loan from the Catalyst Account would promote the economic development of this State and aid the implementation of the State Plan for Economic Development.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.435  Agreement between Office and sponsoring municipality upon approval of application. (NRS 231.053, 231.1555)  If an application submitted pursuant to NAC 231.430 is approved, the Office will enter into an agreement with the sponsoring municipality. Such an agreement must:

     1.  Require the sponsoring municipality to:

     (a) Enter into a written agreement with each business to which the sponsoring municipality will provide a Catalyst Account disbursement before the Office makes a grant or loan of money from the Catalyst Account to the sponsoring municipality; and

     (b) Within 60 days after the end of any period for which the Office is authorized to make a grant or loan of money from the Catalyst Account to the sponsoring municipality, submit a report to the Executive Director, which must include, without limitation:

          (1) The number of new primary jobs created during the period as a result of each agreement entered into by the sponsoring municipality and a business to which the sponsoring municipality may provide a Catalyst Account disbursement;

          (2) The average annual wage of the new primary jobs identified in the report pursuant to subparagraph (1);

          (3) A statement as to whether the number of new primary jobs and average annual wage identified in the report pursuant to subparagraphs (1) and (2) satisfy the requirements of the agreement entered into by the sponsoring municipality and the business to which the sponsoring municipality may provide a Catalyst Account disbursement;

          (4) Evidence that a business to which the sponsoring municipality may provide a Catalyst Account disbursement offers health insurance to the person who holds each new primary job;

          (5) The amount of capital investment made by the business during the period covered by the report;

          (6) A statement of the return on investment for the Catalyst Account disbursement, based on the information provided pursuant to subparagraphs (1), (2) and (5);

          (7) A statement, including any supporting documentation, explaining the benefit to the public from the project that utilized a Catalyst Account disbursement; and

          (8) Any other information deemed necessary by the Executive Director;

     2.  Set forth the length and terms of the agreement;

     3.  Set forth the maximum amount of each Catalyst Account disbursement and a schedule for distributing each Catalyst Account disbursement over the entire length of the project undertaken by a business receiving a Catalyst Account disbursement from the sponsoring municipality;

     4.  Provide that the sponsoring municipality may make a Catalyst Account disbursement only if a business receiving the Catalyst Account disbursement satisfies the terms of the agreement entered into by the sponsoring municipality and the business pursuant to paragraph (a) of subsection 1; and

     5.  Contain a provision stating that if the sponsoring municipality withholds a Catalyst Account disbursement because the business receiving the Catalyst Account disbursement is unable to satisfy the requirements of an agreement entered into by the sponsoring municipality and the business pursuant to paragraph (a) of subsection 1, the amount of the Catalyst Account disbursement reverts back to the Catalyst Account and the sponsoring municipality has no right to the amount of the Catalyst Account disbursement.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.438  Agreement between sponsoring municipality and business receiving disbursement from Account; accrual of interest to Account if agreement becomes void. (NRS 231.053, 231.1555)

     1.  An agreement entered into by a sponsoring municipality and a business receiving a Catalyst Account disbursement pursuant to paragraph (a) of subsection 1 of NAC 231.435 must provide that:

     (a) If the Executive Director determines that a business is not in compliance with that agreement, the sponsoring municipality must provide:

          (1) Notice to the business of its intention to void the agreement; and

          (2) Thirty days to cure such noncompliance.

     (b) If the business does not cure its noncompliance within 30 days after receipt of the notice of the sponsoring municipality’s intent to void the agreement, the agreement must become void.

     2.  If an agreement entered into by a sponsoring municipality and a business becomes void pursuant to this section, interest must accrue on the amount of the Catalyst Account disbursement to be refunded by the business as of the date on which the period to cure noncompliance with the agreement ends.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.440  Conditions for disbursement of grant or loan of money from Account. (NRS 231.053, 231.1555)  The Office will not make a grant or loan of money from the Catalyst Account to a sponsoring municipality until the sponsoring municipality has:

     1.  Entered into an agreement with the Office pursuant to NAC 231.435;

     2.  Submitted the report required pursuant to paragraph (b) of subsection 1 of NAC 231.435 for the period for which the Office will make the grant or loan of money from the Catalyst Account;

     3.  Provided confirmation to the Office that a business receiving a Catalyst Account disbursement is not in default, breach or noncompliance with the agreement entered into by the sponsoring municipality and the business pursuant to paragraph (a) of subsection 1 of NAC 231.435; and

     4.  Provided confirmation to the Office that the sponsoring municipality has no knowledge of any circumstances that indicate a business receiving money derived from the Catalyst Account disbursement is in danger of being unable to satisfy the requirements of the agreement entered into by the sponsoring municipality and the business pursuant to paragraph (a) of subsection 1 of NAC 231.435.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.445  Investigation of business receiving disbursement from Account to determine compliance with agreement; immediate notification of noncompliance to Executive Director. (NRS 231.053, 231.1555)

     1.  At the direction of the Executive Director, a sponsoring municipality may conduct an investigation of a business receiving a Catalyst Account disbursement to determine whether the business is creating new primary jobs in accordance with an agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435.

     2.  After conducting an investigation pursuant to subsection 1, if a sponsoring municipality determines that a business receiving a Catalyst Account disbursement has provided false information or failed to create new primary jobs in accordance with the terms of the agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435, the sponsoring municipality must immediately notify the Executive Director.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

     NAC 231.450  Grounds for determination sponsoring municipality not in compliance with agreement; authority of Executive Director to refuse to make grant or loan; written notice of noncompliance; cure of noncompliance; voiding of agreement if no cure. (NRS 231.053, 231.1577)

     1.  The Executive Director may find that a sponsoring municipality has not complied with the agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435 and refuse to make a grant or loan of money from the Catalyst Account to a sponsoring municipality if the Executive Director:

     (a) Receives information from an investigation conducted by a sponsoring municipality pursuant to NAC 231.445, or otherwise has good cause to believe, that the business receiving a Catalyst Account disbursement has provided false information or has failed to create the number of new primary jobs required by the agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435;

     (b) Finds that the business has applied for or received a tax abatement or incentive, other than a tax abatement provided pursuant to NRS 361.4722 or money derived from the Catalyst Account disbursement, from an agency or political subdivision of this State and that the tax abatement or incentive was not identified on the application for a Catalyst Account disbursement submitted to the Office by the sponsoring municipality pursuant to NAC 231.430; or

     (c) Finds that the business receiving a Catalyst Account disbursement has been convicted of a crime in this State or any jurisdiction.

     2.  If, pursuant to subsection 1, the Executive Director finds that the sponsoring municipality is not in compliance with the agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435 and refuses to make the grant or loan of money from the Catalyst Account, the Executive Director will provide written notice of noncompliance to the sponsoring municipality. The written notice must:

     (a) Specify the reasons that the sponsoring municipality is not in compliance with the agreement; and

     (b) Provide the sponsoring municipality a period of not less than 30 days to cure the areas of noncompliance.

     3.  If a sponsoring municipality does not cure the areas of noncompliance within the period of time described in the written notice sent to the sponsoring municipality pursuant to subsection 2, the Executive Director may void the agreement entered into by the Office and the sponsoring municipality pursuant to NAC 231.435.

     (Added to NAC by Office of Economic Dev. by R159-16, eff. 6-26-2018)

GRANTS FOR REGIONAL COMMERCIAL AIR SERVICE

     NAC 231.500  Definitions. (§ 13 of ch. 345, Stats. 2007)  As used in NAC 231.500 to 231.550, inclusive, unless the context otherwise requires, the words and terms defined in NAC 231.505 to 231.520, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.505  “Air carrier” defined. (§ 13 of ch. 345, Stats. 2007)  “Air carrier” means a person that provides commercial air transportation to passengers.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.510  “Commission” defined. (§ 13 of ch. 345, Stats. 2007)  “Commission” means the Commission on Tourism.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.515  “Director” defined. (§ 13 of ch. 345, Stats. 2007)  “Director” means the Director of the Commission.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.520  “Grant” defined. (§ 13 of ch. 345, Stats. 2007)  “Grant” means an amount of money awarded to a small airport pursuant to NAC 231.500 to 231.550, inclusive, from money appropriated to the Commission for that purpose pursuant to section 13 of chapter 345, Statutes of Nevada 2007.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.525  Application for grant: Form and contents; presentation; review; approval or disapproval; responsibilities of applicant. (§ 13 of ch. 345, Stats. 2007)

     1.  To receive a grant, a local government applying for a grant for an airport within the jurisdiction of the local government must comply with the criteria and guidelines established by the Commission and apply using a form prescribed by the Commission.

     2.  The application must include, without limitation:

     (a) A reasonable business plan for using the grant, if the application is approved, which includes reasonable cost estimates;

     (b) A commitment from an air carrier and the airport which indicates that, if the grant is awarded to the local government, the air carrier and the airport will enter into a written operating agreement with the local government requiring the air carrier to commence or continue air service to the airport;

     (c) The cost and terms of the operating agreement between the local government, the airport and the air carrier;

     (d) The amount of the contribution and the manner in which the contribution from the airport or the local government will be paid pursuant to NAC 231.535; and

     (e) The amount of the grant for which the local government is applying.

     3.  The Commission will evaluate each application for a grant in accordance with the criteria and guidelines specified by the Commission pursuant to subsection 1.

     4.  In reviewing an application for a grant, the Commission will give additional consideration to:

     (a) An applicant who has an operating agreement with another airport in this State or who has applied or is eligible to apply for a grant pursuant to any federal law or regulation; or

     (b) An air carrier offering intrastate service.

     5.  Each applicant is solely responsible for soliciting, reviewing and selecting a regional air carrier for inclusion in the application.

     6.  The Commission will consider and approve or disapprove applications for grants at regularly scheduled meetings of the Commission.

     7.  The airport and the local government must concur in the application and present the application to the Commission together.

     8.  If an application is approved, the applicant is responsible for ensuring the provision of regional air service and the specified level of air service.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.530  Eligibility for grant. (§ 13 of ch. 345, Stats. 2007)

     1.  To be eligible for a grant, an airport within the jurisdiction of a local government applying for a grant:

     (a) Must be a commercial service airport that does not have more passenger boardings on an annual basis than a small hub airport;

     (b) Must be certified by the Federal Aviation Administration pursuant to 14 C.F.R. Part 139;

     (c) Must be located more than 150 miles from a medium hub airport or a large hub airport; and

     (d) Must demonstrate to the Commission, through the applicant, that air carriers charge unreasonably high fares to service the airport or provide insufficient service to the airport.

     2.  As used in this section, the terms “commercial service airport,” “large hub airport,” “medium hub airport,” “passenger boardings” and “small hub airport” have the meanings ascribed to them in 49 U.S.C. § 47102.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.535  Use of grant; contribution by airport or recipient of grant. (§ 13 of ch. 345, Stats. 2007)

     1.  A grant may only be used to:

     (a) Guarantee that an air carrier will receive an agreed amount of revenue for each flight that the air carrier operates in or out of the airport; or

     (b) Guarantee an amount of profit for an air carrier that is established by an agreement between the air carrier and the airport.

     2.  A recipient of a grant must use the grant to pay 80 percent of the cost of the guarantee set forth in the operating agreement between the local government, the airport and the air carrier. Except as otherwise provided in subsection 3, the remaining 20 percent of the cost of the guarantee must be paid by the airport or the recipient of the grant. The contribution to the cost of the guarantee from the airport or the local government must be in the form of money or in kind, or both. An in-kind contribution may be in the following forms:

     (a) A waiver or reduction in favor of the air carrier, based on reasonable and customary rates for the following:

          (1) Airport rental fees;

          (2) Landing fees;

          (3) Fees for supporting the operations of the air carrier; or

          (4) Any other airport charges or taxes; or

     (b) Marketing and advertising services provided by the airport or the local government to the air carrier.

     3.  All or any portion of the contribution required pursuant to subsection 2 may be provided through the recipient of the grant by a connecting airport or any other business entity receiving a benefit from any air service subsidized pursuant to NAC 231.500 to 231.550, inclusive.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.540  Agreement with Commission. (§ 13 of ch. 345, Stats. 2007)

     1.  If the Commission approves an application for a grant, the recipient of the grant must enter into an agreement with the Commission. The agreement must specify:

     (a) The amount of the grant;

     (b) The proper use of the money obtained from the grant;

     (c) The date on which the Commission approved the grant;

     (d) The specific indicators of performance by which the Commission and the recipient of the grant will measure the progress of the project;

     (e) A requirement that the recipient of the grant report to the Commission on a quarterly basis and that the report include a statement setting forth:

          (1) The specific indicators of performance specified in paragraph (d);

          (2) The projected estimates of costs; and

          (3) The amount of money the recipient expects to draw from the grant and the dates on which the recipient expects to draw money from the grant;

     (f) The right of the Commission or its designee to review any document which the Commission or its designee determines is necessary for the appropriate fiscal oversight of the project; and

     (g) The date on which the grant will expire.

     2.  The Director and the Office of the Attorney General shall review the form of the agreement entered into by the Commission and the recipient of the grant pursuant to subsection 1.

     3.  An agreement entered into pursuant to subsection 1 is not effective unless the Director and the Office of the Attorney General approve the form of the agreement.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.545  Disbursement of money from grant. (§ 13 of ch. 345, Stats. 2007)

     1.  The Director may not disburse any money from a grant until:

     (a) The recipient of a grant and a representative of the Commission have signed the agreement required pursuant to NAC 231.540; and

     (b) The Director has received a request to draw money from the grant from the recipient of the grant pursuant to subsection 2.

     2.  The recipient of a grant must make a request to draw money from the grant on a form prescribed by the Director. The request must include:

     (a) A statement specifying the amount of money the recipient wishes to draw from the grant; and

     (b) Evidence of the performance and the calculation of the grant.

     3.  The recipient of a grant may request an initial advance of not more than 20 percent of the amount of the grant.

     4.  If the Commission awards a grant to a recipient and, after the recipient receives a disbursement of the grant pursuant to this section, the Commission determines that the recipient no longer needs the grant or any portion of the grant, the Commission may:

     (a) Require the Director to cease making any further disbursements of the grant to the recipient of the grant; or

     (b) Require the recipient of the grant to repay any unused portion of the grant.

     5.  The Director shall review and approve or deny a request to draw money from a grant within 10 working days after the date on which the Director receives the request.

     6.  If the Director approves a request to draw money from a grant, the Director shall cause a check to be issued to the recipient of the grant in the amount requested by the recipient.

     7.  If the Director denies a request to draw money from a grant, the Director shall provide the recipient who made the request with a written statement:

     (a) Stating the reason for the denial of the request; and

     (b) Describing any actions the recipient must take to receive approval of the request from the Director.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)

     NAC 231.550  Failure to comply with agreement. (§ 13 of ch. 345, Stats. 2007)  In addition to any money required to be repaid pursuant to NAC 231.545, if the Commission finds that the recipient of a grant is not using money from the grant in accordance with the provisions of the agreement entered into pursuant to NAC 231.540, the Commission will immediately cease providing the recipient with money from the grant and may determine that the agreement is void. If the Commission finds that money from the grant is not used in accordance with the agreement, the Commission may require the repayment of the grant or any portion of the grant.

     (Added to NAC by Comm’n on Tourism by R190-07, eff. 4-17-2008)