[Rev. 11/21/2013 10:30:49
AM--2013]
CHAPTER 271A - TOURISM IMPROVEMENTS
GENERAL PROVISIONS
NRS 271A.010 Short
title.
NRS 271A.020 Definitions.
NRS 271A.030 “District”
defined.
NRS 271A.040 “Municipality”
defined.
NRS 271A.050 “Project”
defined.
NRS 271A.060 “Retailer”
defined.
TOURISM IMPROVEMENT DISTRICTS
NRS 271A.070 Creation;
acquisition, operation and ownership of projects located within districts;
pledge of proceeds of certain taxes; boundaries; financing or reimbursement;
exceptions.
NRS 271A.080 Prerequisites
for adoption of ordinance.
NRS 271A.090 Conclusiveness
of determinations.
NRS 271A.100 Agreement
with Department of Taxation regarding distribution of pledged amounts.
NRS 271A.105 Annual
report to Legislature by municipality; semiannual report to Legislature by
Department of Taxation; exception.
NRS 271A.110 Agreement
with owner of property interest within district to defray cost of local
governmental services during term of pledge: Contents; finding by governing
body of municipality.
NRS 271A.120 Issuance
of special obligations; agreements to reimburse entities or persons for project
costs; restrictions on financing and reimbursement; feasibility studies;
default on special obligations or agreements; security for special obligations
or agreements; automatic termination of special obligations.
NRS 271A.125 Independent
auditing of certain claims; additional restrictions on financing or
reimbursement; information concerning retail facilities to be provided to
Department of Taxation on request.
NRS 271A.130 Competitive
bidding not required; exceptions; applicability of provisions governing payment
of prevailing wage for projects; duty of municipality to ensure compliance with
subcontracting requirements.
NRS 271A.140 Subcontracts:
Duties of contractor or developer and municipality.
_________
_________
GENERAL PROVISIONS
NRS 271A.010 Short title. This
chapter shall be known as the Tourism Improvement District Law.
(Added to NRS by 2005, 2362)
NRS 271A.020 Definitions. Except
as otherwise provided in NRS 271A.030 to 271A.060, inclusive, and unless the context otherwise
requires, the words and terms defined in NRS
271.035 to 271.250, inclusive, and 271A.030 to 271A.060,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2005, 2362)
NRS 271A.030 “District” defined. “District”
means a tourism improvement district created pursuant to NRS 271A.070.
(Added to NRS by 2005, 2362)
NRS 271A.040 “Municipality” defined. “Municipality”
means any county or city in this State.
(Added to NRS by 2005, 2362)
NRS 271A.050 “Project” defined. “Project”
means:
1. With respect to a county whose
population is 700,000 or more:
(a) An art project, as defined in NRS 271.037;
(b) A tourism and entertainment project, as
defined in NRS 271.234; or
(c) A sports stadium which can be used for the
home games of a Major League Baseball or National Football League team and for
other purposes, including structures, buildings and other improvements and
equipment therefor, parking facilities, and all other appurtenances necessary,
useful or desirable for a Major League Baseball or National Football League
stadium, including, without limitation, all types of property therefor and
immediately adjacent facilities for retail sales, dining and entertainment.
2. With respect to a city in a county
whose population is 700,000 or more:
(a) A project described in paragraph (a), (b) or
(c) of subsection 1; or
(b) A recreational project, as defined in NRS 268.710.
3. With respect to a municipality other
than a municipality described in subsection 1 or 2, any project that the
municipality is authorized to acquire, improve, equip, operate and maintain
pursuant to subsections 1, 2, 3 and 5 to 10, inclusive, of NRS 244A.057 or NRS 268.730 or 271.265, as applicable.
4. Any real or personal property suitable
for retail, tourism or entertainment purposes.
5. Any real or personal property
necessary, useful or desirable in connection with any of the projects set forth
in this section.
6. Any combination of the projects set
forth in this section.
(Added to NRS by 2005, 2362; A 2009, 2741;
2011, 1171)
NRS 271A.060 “Retailer” defined. “Retailer”
has the meaning ascribed to it in NRS
374.060.
(Added to NRS by 2005, 2363)
TOURISM IMPROVEMENT DISTRICTS
NRS 271A.070 Creation; acquisition, operation and ownership of projects
located within districts; pledge of proceeds of certain taxes; boundaries;
financing or reimbursement; exceptions.
1. Except as otherwise provided in this
section and NRS 271A.080, the governing body of a
municipality may:
(a) Create a tourism improvement district for the
purposes of carrying out this chapter and revise the boundaries of the district
by adopting an ordinance describing the boundaries of the district and
generally describing the types of projects which may be financed within the
district pursuant to this chapter.
(b) Without any election, acquire, improve,
equip, operate and maintain a project within a district created pursuant to
paragraph (a). The project may be owned by the municipality, another
governmental entity, any other person, or any combination thereof.
(c) For the purposes of carrying out paragraph
(b), include in an ordinance adopted pursuant to paragraph (a) the pledge of a
single percentage specified in the ordinance, which must not exceed 75 percent,
of:
(1) An amount equal to the proceeds of the
taxes imposed pursuant to NRS 372.105
and 372.185 with regard to tangible
personal property sold at retail, or stored, used or otherwise consumed, in the
district during a fiscal year, after the deduction of a sum equal to 1.75
percent of the amount of those proceeds;
(2) The amount of the proceeds of the
taxes imposed pursuant to NRS 374.110
and 374.190 with regard to tangible
personal property sold at retail, or stored, used or otherwise consumed, in the
district during a fiscal year, after the deduction of 0.75 percent of the
amount of those proceeds; and
(3) The amount of the proceeds of the tax
imposed pursuant to NRS 377.030 with
regard to tangible personal property sold at retail, or stored, used or
otherwise consumed, in the improvement district during a fiscal year, after the
deduction of 1.75 percent of the amount of those proceeds.
2. The governing body of a municipality
may not include in an ordinance adopted to create or revise the boundaries of a
district pursuant to paragraph (a) of subsection 1 on or after July 1, 2013,
the pledge of any proceeds described in subparagraph (2) of paragraph (c) of
subsection 1. The provisions of this subsection do not apply to the governing
body of a municipality with respect to any district created before July 1,
2013, if the governing body obtains an opinion from independent bond counsel
stating that the applicability of this provision would impair an existing
contract for the sale of bonds which were issued before July 1, 2013.
3. A district created pursuant to this
section by:
(a) A city must be located entirely within the
boundaries of that city.
(b) A county must be located entirely within the
boundaries of that county and, when the district is created, entirely outside
of the boundaries of any city.
4. If any property within the boundaries
of a district is also included within the boundaries of any other tourism
improvement district or any improvement district for which any money has been
pledged pursuant to NRS 271.650, the
total amount of money pledged pursuant to this section and NRS 271.650 with respect to such property
by all such districts must not exceed the amount authorized pursuant to this
section.
5. If the governing body of a municipality
creates a tourism improvement district:
(a) On or before October 1, 2009, that includes
within its boundaries any property included within the boundaries of a
redevelopment area established pursuant to chapter
279 of NRS, the governing body and agency may provide financing or
reimbursement related to a project or redevelopment project pursuant to the
provisions of both NRS 271A.120 and 279.610 to 279.685, inclusive.
(b) After October 1, 2009, that includes within
its boundaries any property included within the boundaries of a redevelopment
area established pursuant to chapter 279 of
NRS, the governing body and an agency:
(1) May provide financing or reimbursement
related to a project or redevelopment project pursuant to the provisions of NRS 271A.120 or 279.610
to 279.685, inclusive, whichever is
applicable.
(2) Shall not provide such financing or
reimbursement related to the project or redevelopment project pursuant to the
provisions of both NRS 271A.120 and 279.610 to 279.685, inclusive.
6. As used in this section:
(a) “Agency” has the meaning ascribed to it in NRS 279.386.
(b) “Redevelopment project” has the meaning
ascribed to it in NRS 279.412.
(Added to NRS by 2005, 2363; A 2009, 2093;
2013, 2278,
2781)
NRS 271A.080 Prerequisites for adoption of ordinance. The governing body of a municipality shall not
adopt an ordinance pursuant to NRS 271A.070
unless:
1. If the ordinance:
(a) Creates a district, the governing body has
determined that no retailers will have maintained or will be maintaining a fixed
place of business within the district on or within the 120 days immediately
preceding the date of the adoption of the ordinance; or
(b) Amends the boundaries of the district to add
any additional area, the governing body has determined that no retailers will
have maintained or will be maintaining a fixed place of business within that
area on or within 120 days immediately preceding the date of the adoption of
the ordinance.
2. The governing body has made a written
finding at a public hearing that the project will benefit the district.
3. The governing body has made a written
finding at a public hearing, based upon reports from independent consultants
which were addressed to the governing body and to the board of county
commissioners, if the governing body is not the board of county commissioners
for the county in which the tourism improvement district is or will be located,
as to whether the project and the financing thereof pursuant to this chapter
will have a positive fiscal effect on the provision of local governmental
services, after considering:
(a) The amount of the proceeds of all taxes and
other governmental revenue projected to be received as a result of the
properties and businesses expected to be located in the district;
(b) The use of any money proposed to be pledged
pursuant to NRS 271A.070;
(c) Any increase in costs for the provision of
local governmental services, including, without limitation, services for
education, including operational and capital costs, and services for police
protection and fire protection, as a result of the project and the development
of land within the district; and
(d) Estimates of any increases in the proceeds
from sales and use taxes collected by retailers located outside of the district
and of any displacement of the proceeds from sales and use taxes collected by
those retailers, as a result of the properties and businesses expected to be
located in the district.
Ê The reports
required from independent consultants pursuant to this subsection must be
obtained from independent consultants selected by the governing body from a
list of independent consultants provided by the Commission on Tourism. For the
purposes of this subsection, the Commission shall, upon the request of a
governing body, provide the governing body with a list of at least three
qualified independent consultants, each of whom must be located outside of this
State.
4. If the governing body is not the board
of county commissioners for the county in which the tourism improvement district
is or will be located, the governing body has, at least 45 days before making
the written finding required by subsection 3, provided to the board of county
commissioners in the county in which the tourism improvement district is or
will be located:
(a) Written notice of the time and place of the
meeting at which the governing body will consider making that written finding;
and
(b) Each analysis prepared by or for or presented
to the governing body regarding the fiscal effect of the project and the use of
any money proposed to be pledged pursuant to NRS
271A.070 on the provision of local governmental services.
Ê After the
receipt of the notice required by this subsection and before the date of the
meeting at which the governing body will consider making the written finding
required by subsection 3, the board of county commissioners may conduct a
hearing regarding the fiscal effect on local governmental services, if any, of
the project and the use of any money proposed to be pledged pursuant to NRS 271A.070, and may submit to the governing body of
the municipality any comments regarding that fiscal effect. The governing body
may consider those comments when making any written finding pursuant to
subsection 3 and shall consider those comments when considering the terms of
any agreement pursuant to NRS 271A.110.
5. The governing body has determined, at a
public hearing conducted at least 15 days after providing notice of the hearing
by publication, that:
(a) As a result of the project:
(1) Retailers will locate their businesses
as such in the district; and
(2) There will be a substantial increase
in the proceeds from sales and use taxes remitted by retailers with regard to
tangible personal property sold at retail, or stored, used or otherwise
consumed, in the district; and
(b) A preponderance of that increase in the
proceeds from sales and use taxes will be attributable to transactions with
tourists who are not residents of this State.
6. The Commission on Tourism has
determined, at a public hearing conducted at least 15 days after providing
notice of the hearing by publication, that a preponderance of the increase in
the proceeds from sales and use taxes identified pursuant to subsection 5 will
be attributable to transactions with tourists who are not residents of this
State.
7. If any property within the boundaries
of the district is also included within the boundaries of any other tourism
improvement district or any improvement district for which any money has been
pledged pursuant to NRS 271.650, all of
the governing bodies which created those districts have entered into an
interlocal agreement providing for:
(a) The apportionment of any money pledged
pursuant to NRS 271.650 and 271A.070 with respect to such property; and
(b) The priority of the application of that money
between:
(1) Bonds issued pursuant to chapter 271 of NRS; and
(2) Bonds and notes issued, and agreements
entered into, pursuant to NRS 271A.120.
Ê Any such
agreement for the priority of the application of that money may be made
irrevocable during the term of any bonds issued pursuant to chapter 271 of NRS to which all or any portion
of that money is pledged, or during the term of any bonds or notes issued or
any agreements entered into pursuant to NRS 271A.120
to which all or any portion of that money is pledged.
(Added to NRS by 2005, 2363; A 2011, 3334;
2013, 2782)
NRS 271A.090 Conclusiveness of determinations. Any
determination, written finding or approval made pursuant to NRS 271A.080 is conclusive in the absence of fraud or
gross abuse of discretion.
(Added to NRS by 2005, 2366)
NRS 271A.100 Agreement with Department of Taxation regarding distribution of
pledged amounts. After the
adoption of an ordinance creating a district in accordance with this chapter,
the governing body of the municipality and the Department of Taxation shall
enter into an agreement specifying the dates and procedure for distribution to
the municipality of any money pledged pursuant to NRS
271A.070. The distributions must:
1. Be made not less frequently than once
each calendar quarter; and
2. Cease at the end of the fiscal year in
which the 20th anniversary of the adoption of the ordinance creating the
district occurs.
(Added to NRS by 2005, 2366)
NRS 271A.105 Annual report to Legislature by municipality; semiannual report
to Legislature by Department of Taxation; exception.
1. On or before September 1 of each year,
the governing body of a municipality that creates a district before, on or
after July 1, 2011, shall prepare and submit to the Director of the Legislative
Counsel Bureau for submission to the Legislature, or to the Legislative
Commission when the Legislature is not in regular session, an annual report
containing:
(a) A statement of the status of each project
located or expected to be located in the district, and of any changes in that
status since the last annual report.
(b) An assessment of the financial impact of the
district on the provision of local governmental services, including, without
limitation, services for police protection and fire protection.
2. If the governing body of a municipality
creates a district before, on or after July 1, 2011, the Department of Taxation
shall:
(a) On or before April 1 and October 1 of each year,
except as otherwise provided in subsection 3, prepare and submit to the
Director of the Legislative Counsel Bureau for submission to the Legislature,
or to the Legislative Commission when the Legislature is not in regular
session, and to the governing body of the municipality a semiannual report
which states:
(1) The amount of revenue from the taxable
sales made each month by the businesses within the district;
(2) To the extent that the pertinent
information is available, the portion of that revenue which is attributable to
persons who are not residents of this State;
(3) The amount of the wages paid each
month by the businesses within the district; and
(4) The number of full-time and part-time
employees employed each month by the businesses within the district.
Ê The report
must provide the information separately for each district in the municipality
unless reporting the information separately would disclose or result in the
disclosure of information about an individual business, in which case the
report must provide the information in the aggregate.
(b) Require each business within the district to
report to the Department of Taxation, at such times as the Department may
specify on a form provided by the Department, such information as the
Department determines to be necessary to carry out the provisions of paragraph
(a).
3. The Department of Taxation is not
required to prepare and submit a report pursuant to paragraph (a) of subsection
2 if the report cannot be prepared in a manner which would not disclose or
result in the disclosure of information about an individual business.
4. As used in this section, “taxable
sales” means any sales that are taxable pursuant to chapter 372 of NRS.
(Added to NRS by 2011, 3333;
A 2013,
2785)
NRS 271A.110 Agreement with owner of property interest within district to
defray cost of local governmental services during term of pledge: Contents;
finding by governing body of municipality.
1. The governing body of a municipality
may, except as otherwise provided in subsection 2, enter into an agreement with
one or more of the owners of any interest in property within a district,
pursuant to which that owner would agree to make payments to the municipality
or to another local government that provides services in the district, or to
both, to defray, in whole or in part, the cost of local governmental services
during the term of the use of any money pledged pursuant to NRS 271A.070. Such an agreement must specify the
amount to be paid by the owner of the property interest, which may be stated as
a specified amount per year or as an amount based upon any formula upon which
the municipality and owner agree.
2. The governing body of a municipality
shall not enter into an agreement pursuant to subsection 1 unless the governing
body has made a written finding pursuant to subsection 3 of NRS 271A.080 that the project and the use of any
money pledged pursuant to NRS 271A.070 will not
have a positive fiscal effect on the provision of local governmental services.
(Added to NRS by 2005, 2366; A 2013, 2786)
NRS 271A.120 Issuance of special obligations; agreements to reimburse
entities or persons for project costs; restrictions on financing and
reimbursement; feasibility studies; default on special obligations or
agreements; security for special obligations or agreements; automatic
termination of special obligations.
1. Except as otherwise provided in this
section, if the governing body of a municipality adopts an ordinance pursuant
to NRS 271A.070, the municipality may:
(a) Issue, at one time or from time to time,
bonds or notes as special obligations under the Local Government Securities Law
to finance or refinance projects for the benefit of the district. Any such
bonds or notes may be secured by a pledge of, and be payable from, any money
pledged pursuant to NRS 271A.070 and received by
the municipality with respect to the district, any revenue received by the
municipality from any revenue-producing projects in the district, or any
combination thereof.
(b) Enter into an agreement with one or more
governmental entities or other persons to reimburse that entity or person for
the cost of acquiring, improving or equipping, or any combination thereof, any
project, which may contain such terms as are determined to be desirable by the
governing body of the municipality, including the payment of reasonable
interest and other financing costs incurred by such entity or other person. Any
such reimbursements may be secured by a pledge of, and be payable from, any
money pledged pursuant to NRS 271A.070 and
received by the municipality with respect to the district, any revenue received
by the municipality from any revenue-producing projects in the district, or any
combination thereof. Such an agreement is not subject to the limitations of
subsection 1 of NRS 354.626 and may, at
the option of the governing body, be binding on the municipality beyond the
fiscal year in which it was made, only if the agreement pertains solely to one
or more projects that are owned by the municipality or another governmental
entity.
2. The governing body of a municipality
shall not, with respect to any district created before, on or after July 1,
2011, provide any financing or reimbursement pursuant to this section:
(a) Except as otherwise provided in this
paragraph, to any governmental entity for any project within the district if
any nongovernmental entity is or was entitled to receive any financing or
reimbursement from the municipality pursuant to this section under the original
financing agreements for the initial projects within the district. This
paragraph does not prohibit the provision of such financing or reimbursement to
a governmental entity that is or was entitled to receive such financing or
reimbursement under the original financing agreements for the initial projects within
the district.
(b) To any person or other entity for any project
within the district, other than a person or other entity that is or was
entitled to receive such financing or reimbursement from the municipality under
the original financing agreements for the initial projects within the district,
without the consent of all the persons and other entities that were entitled to
receive such financing or reimbursement under the original financing agreements
for the initial projects within the district.
3. Before the issuance of any bonds or
notes pursuant to this section, the municipality must obtain the results of a
feasibility study, commissioned by the municipality, which shows that a
sufficient amount will be generated from money pledged pursuant to NRS 271A.070 to make timely payment on the bonds or
notes, taking into account the revenue from any other revenue-producing
projects also pledged for the payment of the bonds or notes, if any. A failure
to make payments of any amounts due:
(a) With respect to any bonds or notes issued
pursuant to subsection 1; or
(b) Under any agreements entered into pursuant to
subsection 1,
Ê because of
any insufficiency in the amount of money pledged pursuant to NRS 271A.070 to make those payments shall be deemed
not to constitute a default on those bonds, notes or agreements.
4. No bond, note or other agreement issued
or entered into pursuant to this section may be secured by or payable from the
general fund of the municipality, the power of the municipality to levy ad
valorem property taxes, or any source other than any money pledged pursuant to NRS 271A.070 and received by the municipality with
respect to the district, any revenue received by the municipality from any
revenue-producing projects in the district, or any combination thereof. No
bond, note or other agreement issued or entered into pursuant to this section
may ever become a general obligation of the municipality or a charge against
its general credit or taxing powers, nor may any such bond, note or other
agreement become a debt of the municipality for purposes of any limitation on
indebtedness.
5. Any bond or note issued pursuant to
this section, including any bond or note issued to refund any such bond or
note, must mature on or before, and any agreement entered pursuant to this
section must automatically terminate on or before, the end of the fiscal year
in which the 20th anniversary of the adoption of the ordinance creating the
district occurs.
(Added to NRS by 2005, 2367; A 2011, 3337;
2013, 2786)
NRS 271A.125 Independent auditing of certain claims; additional restrictions
on financing or reimbursement; information concerning retail facilities to be
provided to Department of Taxation on request.
1. The governing body of a municipality:
(a) Shall require the review of each claim
submitted pursuant to any contract or other agreement made with the governing
body to provide any financing or reimbursement pursuant to NRS 271A.120, by an independent auditor.
(b) Shall not:
(1) With respect to any district created
on or after July 1, 2011, provide any financing or reimbursement pursuant to NRS 271A.120 for:
(I) Any legal fees, accounting fees,
costs of insurance, fees for legal notices or costs to amend any ordinances.
(II) Any project that includes the
relocation on or after July 1, 2011, to the district of any retail facilities
of a retailer from another location outside of and within 3 miles of the
boundary of the district. Each pledge of money pursuant to NRS 271A.070 shall be deemed to exclude any amounts
attributable to any tangible personal property sold at retail, or stored, used
or otherwise consumed, in the district during a fiscal year by a retailer who,
on or after July 1, 2011, relocates any of its retail facilities to the
district from another location outside of and within 3 miles of the boundary of
the district.
(2) Provide any financing or reimbursement
pursuant to NRS 271A.120 from the proceeds of the
taxes described in subparagraph (2) of paragraph (c) of subsection 1 of NRS 271A.070 that are collected from any retail
facilities of a retailer which, on or after July 1, 2013, locates within the
boundary of a district.
2. The provisions of subparagraph (2) of
paragraph (b) of subsection 1 do not apply to the governing body of a
municipality with respect to any district created before July 1, 2013, if the
governing body obtains an opinion from independent bond counsel stating that
the applicability of those provisions would impair an existing contract for the
sale of bonds that were issued before July 1, 2013.
3. The owner of a project shall, upon request,
provide to the Department of Taxation information that identifies the retail
facilities that open or close within the project.
(Added to NRS by 2011, 3332;
A 2013,
2788)
NRS 271A.130 Competitive bidding not required; exceptions; applicability of
provisions governing payment of prevailing wage for projects; duty of
municipality to ensure compliance with subcontracting requirements.
1. Except as otherwise provided in this
section and NRS 271A.140 and notwithstanding any
other law to the contrary, any contract or other agreement relating to or
providing for the construction, improvement, repair, demolition,
reconstruction, other acquisition, equipment, operation or maintenance of any
project financed in whole or in part pursuant to this chapter is exempt from
any law requiring competitive bidding or otherwise specifying procedures for
the award of contracts for construction or other contracts, or specifying
procedures for the procurement of goods or services. The governing body of the
municipality shall require a quarterly report on the demography of the workers
employed by any contractor or subcontractor for each such project.
2. The provisions of subsection 1 do not
apply to any project which is constructed or maintained by a governmental
entity on any property while the governmental entity owns that property.
3. Except as otherwise provided in
subsection 4, a person who enters into any contract or other agreement for the
construction, improvement, repair, demolition or reconstruction of any project
that is paid for in whole or in part:
(a) From the proceeds of bonds or notes issued
pursuant to paragraph (a) of subsection 1 of NRS
271A.120; or
(b) Pursuant to an agreement for reimbursement
entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120,
Ê shall
include in the contract or other agreement the contractual provisions and
stipulations that are required to be included in a contract for a public work
pursuant to the provisions of NRS 338.013
to 338.090, inclusive. The governing
body of the municipality, the contractor who is awarded the contract or enters
into the agreement to perform the construction, improvement, repair, demolition
or reconstruction, and any subcontractor who performs any portion of the
contract or agreement shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as
if the governing body of the municipality had undertaken the project or had
awarded the contract.
4. The provisions of subsection 3 do not
apply to a contract or other agreement for the construction, improvement,
repair, demolition or reconstruction of any improvement to a building leased to
a tenant that is paid for, in whole or in part, or which benefits from the
proceeds of bonds or notes issued pursuant to paragraph (a) of subsection 1 of NRS 271A.120 or pursuant to an agreement for
reimbursement entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120 and which is entered into after
completion of the original construction:
(a) For any subsequent improvement to the
building by the original tenant or a subsequent tenant.
(b) For any improvement to the building by the
original tenant which is undertaken more than 60 months after the building is
first made available for lease.
5. The provisions of NRS 338.013 to 338.090, inclusive, apply to a contract or
other agreement for the construction of, improvement of, repair to, demolition
of or reconstruction of an improvement to any building that will be leased to a
tenant who has entered into an agreement to receive financing or reimbursement
pursuant to NRS 271A.120. The owner of the
building or proposed building and the contractor who is awarded the contract or
enters into the agreement to perform the construction, improvement, repair,
demolition or reconstruction shall include in the contract or other agreement
the contractual provisions and stipulations that are required to be included in
a contract for a public work pursuant to the provisions of NRS 338.013 to 338.090, inclusive. The owner of the
building or proposed building and the contractor who is awarded the contract or
enters into the agreement to perform the construction, improvement, repair,
demolition or reconstruction, and any subcontractor who performs any portion of
the contract or agreement, shall comply with the provisions of NRS 338.013 to 338.090, inclusive, in the same manner as
if the governing body of a municipality had undertaken the construction,
improvement, repair, demolition or reconstruction or had awarded the contract.
The tenant shall ensure that the owner and each contractor and developer to
whom the provisions of NRS 271A.140 apply complies
with those provisions.
6. Except as otherwise provided in
subsection 5, the governing body of the municipality shall ensure that each
contractor and developer to whom the provisions of NRS
271A.140 apply complies with those provisions.
7. As used in this section:
(a) “Original construction” means any contract or
other agreement for the construction, improvement, repair, demolition or
reconstruction of a project paid for, in whole or in part, or which benefits:
(1) From the proceeds of bonds or notes
issued pursuant to paragraph (a) of subsection 1 of NRS
271A.120; or
(2) Pursuant to an agreement for
reimbursement entered into pursuant to paragraph (b) of subsection 1 of NRS 271A.120.
(b) “Original tenant” means the first tenant of
any leased property after the property is first made available for lease.
(Added to NRS by 2005, 2368; A 2011, 3339;
2013, 2788)
NRS 271A.140 Subcontracts: Duties of contractor or developer and
municipality.
1. Except as otherwise provided in
subsection 4, a contractor or developer who enters into a contract to which the
provisions of subsection 3 or 5 of NRS 271A.130
apply shall:
(a) Advertise for at least 7 calendar days for
bids on each subcontract for the performance of any portion of the contract;
(b) At least 2 business days before the first day
of that advertisement, provide notice of that advertisement to the governing
body of the municipality;
(c) Make available to all prospective bidders on
the subcontract a written set of plans and specifications for the pertinent
work;
(d) Provide public notice of the name and address
of each person who submits a bid on the subcontract; and
(e) Except as otherwise provided in subsection 2,
after closing the period for the solicitation of bids and receiving at least
three timely and responsive bids, select any subcontractor from those timely
and responsive bids that the contractor or developer, in his or her sole
discretion, determines to be appropriate.
2. If the contractor or developer does not
receive at least three timely and responsive bids during the period for the
solicitation of bids, the contractor or developer shall repeat the process set
forth in paragraphs (a) to (d), inclusive, of subsection 1. After closing the
second period for the solicitation of bids prescribed by this subsection, the
contractor or developer shall select any subcontractor from the timely and
responsive bids received pursuant to this subsection or subsection 1 that the
contractor or developer, in his or her sole discretion, determines to be
appropriate, regardless of whether the contractor or developer received at
least three timely and responsive bids.
3. The contractor or developer shall
ensure that each subcontractor who will perform any portion of the contract is
appropriately licensed pursuant to chapter 624
of NRS.
4. The provisions of subsections 1, 2 and
3 do not apply to:
(a) Any contract which is awarded by a
municipality; or
(b) Any project which is constructed or
maintained by a governmental entity on any property while the governmental
entity owns that property.
5. A governing body of a municipality that
receives a notice of an advertisement for bids pursuant to paragraph (b) of
subsection 1 or subsection 2:
(a) Shall, upon such receipt, post notice of the
advertisement on an Internet website maintained by the municipality; and
(b) May otherwise provide notice of the
advertisement to local trade organizations and the general public.
(Added to NRS by 2011, 3333;
A 2013,
2790)
