EXEMPT
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT S.B. 403
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SENATE BILL NO. 403–SENATORS DONDERO LOOP; CANNIZZARO,
CRUZ-CRAWFORD, DOÑATE, NGUYEN, OHRENSCHALL,
PAZINA, SCHEIBLE AND TAYLOR
MARCH 17, 2025
____________
Referred to Committee on Education
SUMMARY—Revises provisions relating to education.
(BDR 34-611)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to education; creating the Subcommittee on
Metrics of the Commission on Innovation and Excellence
in Education; revising provisions governing competency-
based learning; authorizing an alternative schedule for
public schools; authorizing local educational agencies to
develop, maintain and publish certain materials related to
career exploration; requiring the Board of Economic
Development to make certain recommendations relating
to opportunities for pupils for career exploration in
schools; authorizing the Office of Economic Development
to require applicants for certain transferable tax credits
and certain tax abatements to agree to a plan to provide
work-based learning opportunities to pupils or instructors
for career and technical education courses; making
appropriations; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law creates the Commission on Innovation and Excellence in 1
Education and requires the Commission to develop a statewide vision and 2
implementation plan to improve the public education system in this State. (NRS 3
385.910, 385.920) Section 1 of this bill creates the Subcommittee on Metrics of the 4
Commission and requires the Subcommittee to develop, in collaboration with the 5
Department of Education, metrics for local educational agencies and schools to 6
measure the progress and success of pupils, schools and school districts. Section 2 7
of this bill makes a conforming change to apply the definition of the term 8
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“Commission,” which is applicable to provisions governing the Commission on 9
Innovation and Excellence in Education, to the provisions of section 1. Section 2.5 10
of this bill revises the membership of the Commission by adding: (1) the deans of 11
the College of Education at the University of Nevada, Reno, and the University of 12
Nevada, Las Vegas; and (2) the dean of the School of Education at Nevada State 13
University. Section 24 of this bill makes an appropriation of $68,910 for a staff 14
position to oversee the implementation of recommendations made by the 15
Commission. Section 26 of this bill makes an appropriation of $25,000 for the 16
Fiscal Year 2025-2026 and $25,000 for the Fiscal Year 2026-2027 for the travel 17
expenses of the members of the Commission and Subcommittee. 18
Existing law requires the Department to establish a pilot program to provide 19
competency-based education. (NRS 389.210) Existing law defines “competency-20
based education” as a system of instruction by which a pupil advances to a higher 21
level of learning when the pupil demonstrates mastery of a concept or skill, 22
regardless of the time, place or pace at which the pupil progresses. (NRS 389.200) 23
Section 6 of this bill changes the term “competency-based education” to 24
“personalized, competency-based learning,” and revises the definition for that term. 25
Section 4.3 of this bill authorizes the board of trustees of a school district, the 26
governing body of a charter school or university school for profoundly gifted 27
pupils, a committee to form a charter school or a charter management organization 28
to apply to the Department to provide a program of personalized, competency-29
based learning and prescribes requirements for the application process. Section 4.4 30
of this bill requires the board of trustees of a school district or the governing body 31
of a charter school or university school for profoundly gifted pupils to ensure that 32
the program is run in a manner that complies with any applicable statutes, 33
regulations or rules or policies of the school district, charter school or university 34
school. Section 4.5 of this bill authorizes a program of personalized, competency-35
based learning to be provided on an alternative schedule. Section 4.6 of this bill 36
requires the State Board of Education to adopt regulations to carry out the 37
provisions of sections 4.3, 4.4 and 4.5. 38
Section 4.2 of this bill requires the Department, not later than July 1, 2040, and 39
at least once every 5 years thereafter, to review and, as necessary, revise its Portrait 40
of a Nevada Learner to align with the educational needs of this State. 41
Existing law requires the boards of trustees of school districts to schedule and 42
provide a minimum of 180 days of free school in the districts under their charge. 43
(NRS 388.090) Existing law authorizes the Superintendent of Public Instruction to 44
authorize a school district to provide a program of instruction based on an 45
alternative schedule, including a schedule which involves the reduction of not more 46
than 15 school days to provide a 12-month school program. (NRS 388.090) Section 47
3 of this bill eliminates provisions authorizing the reduction of up to 15 school days 48
to provide for a 12-month school program and instead generally authorizes an 49
alternative schedule for a school to involve a reduction in the number of school 50
days. 51
Existing law requires the State Board of Education to establish a course of 52
study in occupational guidance and counseling and requires such instruction to be 53
made available for pupils in grades 7-12. Existing law requires the board of trustees 54
in each school district to organize and offer the curriculum within the limits of 55
money made available for that purpose. (NRS 389.041) Section 5 of this bill 56
authorizes a local educational agency to develop, maintain and publish on its 57
Internet website recommendations for educational materials and information 58
regarding career exploration suitable for pupils in grades 1-5. 59
Existing law creates the Board of Economic Development, which, among other 60
duties, is required to make recommendations to the Executive Director of the Office 61
of Economic Development relating to the criteria to be used by the Office in 62
providing development resources and making allocations, grants and loans. 63
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(NRS 231.033, 231.037) Existing law additionally requires the Board to review and 64
evaluate all programs of economic development in this State and make 65
recommendations to the Legislature for legislation. (NRS 231.037) Section 9 of 66
this bill further requires such recommendations to include recommendations to 67
provide incentives for businesses, including small businesses, to provide 68
opportunities for career exploration to pupils enrolled in public high schools in this 69
State. Section 9 additionally requires the Board to review and make 70
recommendations to the Department regarding technologies to facilitate the 71
exploration by pupils of careers in industries in this State. 72
Existing law authorizes the Office to approve transferable tax credits and 73
abatements or partial abatements of certain property taxes, business taxes and sales 74
and use taxes for certain businesses in certain circumstances. The Office is 75
prohibited from approving an application for such credits or abatements unless the 76
applicant satisfies certain criteria. (NRS 231.1555, 274.310, 274.320, 274.330, 77
360.750, 360.753, 360.754, 360.759, 360.889, 360.945) Sections 10-23 of this bill 78
authorize the Office to require an applicant for transferable tax credits or a tax 79
abatement to enter into an agreement with the Office that includes a plan by the 80
applicant to provide work-based learning opportunities to pupils enrolled in public 81
high schools in this State. Section 8.5 of this bill requires the Department to adopt a 82
definition of “work-based learning opportunity” for the purpose of such 83
agreements. 84
Section 25 of this bill appropriates $2,250,000 to the Department to enter into a 85
contract with a qualified entity to provide professional development regarding 86
personalized, competency-based learning programs and assist the Commission on 87
Innovation and Excellence in Education in developing recommendations and the 88
Department in implementing such recommendations. 89
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 385 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. There is hereby created the Subcommittee on Metrics of 3
the Commission on Innovation and Excellence in Education, 4
consisting of members appointed by the Chair of the Commission. 5
The Subcommittee shall, in collaboration with the Department, 6
develop metrics that local educational agencies and schools may 7
use to measure the progress and success of pupils, schools and 8
school districts, including, without limitation: 9
(a) Metrics for learning outcomes which are based on growth, 10
including, without limitation, the development of skills, 11
competencies and dispositions. 12
(b) Metrics of holistic factors, including, without limitation, 13
the well-being of pupils, social capital and civic engagement. 14
2. Each member of the Subcommittee: 15
(a) Serves without compensation; and 16
(b) While engaged in the business of the Subcommittee, is 17
entitled to receive the travel expenses provided for state officers 18
and employees generally. 19
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Sec. 2. NRS 385.900 is hereby amended to read as follows: 1
385.900 As used in this section and NRS 385.910 and 385.920, 2
and section 1 of this act, unless the context otherwise requires, 3
“Commission” means the Commission on Innov ation and 4
Excellence in Education created by NRS 385.910. 5
Sec. 2.5. NRS 385.910 is hereby amended to read as follows: 6
385.910 1. The Commission on Innovation and Excellence in 7
Education is hereby created. The Commission consists of: 8
(a) Three members who are Senators, two of whom are 9
appointed by the Majority Leader of the Senate and one of whom is 10
appointed by the Minority Leader of the Senate; 11
(b) Three members who are members of the Assembly, two of 12
whom are appointed by the Speaker of the Assembly and one of 13
whom is appointed by the Minority Leader of the Assembly; 14
(c) The Superintendent of Public Instruction; 15
(d) The Director of the Office of Finance; 16
(e) The Chancellor of the Nevada System of Higher Education; 17
(f) One member who is a representative of the State Board of 18
Education, appointed by the President of the State Board; 19
(g) One member who is a teacher and member of the Nevada 20
State Education Association, appointed by the President of that 21
Association; 22
(h) One member who is a teacher and member of the Clark 23
County Education Association, appointed by the President of that 24
Association; 25
(i) One member appointed by the Nevada Association of School 26
Administrators; 27
(j) One member who is a member of the board of trustees of a 28
school district, appointed by the Nevada Association of School 29
Boards; 30
(k) One member who is a superintendent of schools of a school 31
district, appointed by the Nevada Association of School 32
Superintendents; 33
(l) One member who is the chief financial officer of a school 34
district, appointed by the Association of School Business Officials 35
International; 36
(m) One member appointed by the Nevada Association of 37
Counties; 38
(n) One member appointed by the Nevada League of Cities; 39
(o) One member who is the representative of an organization 40
that advocates for public education, appointed by the Superintendent 41
of Public Instruction; 42
(p) One member who is the parent or guardian of a pupil who is 43
enrolled in a public school in this State, appointed by the Nevada 44
Parent Teacher Association; 45
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(q) One member who is a representative of the public at large, 1
appointed by the Governor; 2
(r) Two members who own or manage a business located in this 3
State, appointed by the Governor; [and] 4
(s) One member who serves on the Commission on School 5
Funding created by NRS 387.1246 [.] ; 6
(t) The dean of the College of Education at the University of 7
Nevada, Reno, or his or her designee; 8
(u) The dean of the College of Education at the University of 9
Nevada, Las Vegas, or his or her designee; and 10
(v) The dean of the School of Education at Nevada State 11
University, or his or her designee. 12
2. In appointing the members of the Commission described in 13
paragraphs (g) and (h) of subsection 1, the appointing authorities 14
shall coordinate the appointments so that: 15
(a) One member is a teacher in an elementary school and one 16
member is a teacher in a secondary school, respectively; and 17
(b) One member is a teacher in a public school in an urban 18
setting and one member is a teacher in a public school in a rural 19
setting, respectively. 20
The appointing authorities shall, in appointing a member at the 21
beginning of each term, alternate the characteristics described in 22
paragraphs (a) and (b) so that each member appointed to the 23
Commission does not possess the same characteristic in consecutive 24
terms. 25
3. If any organization listed in subsection 1 ceases to exist, the 26
appointment required pursuant to that subsection must be made by 27
the organization’s successor in interest or, if there is no successor in 28
interest, by the Governor. 29
4. In appointing the members of the Commission described in 30
subsection 1, the appointing authorities shall coordinate the 31
appointments when practicable so that the members of the 32
Commission represent the diversity of this State, including, without 33
limitation, regional, ethnic, economic and gender diversity. 34
5. Each member of the Commission: 35
(a) Serves without compensation; and 36
(b) While engaged in the business of the Commission, is entitled 37
to receive the travel expenses provided for state officers and 38
employees generally. 39
6. Each appointed member of the Commission serves a term of 40
2 years and may be reappointed for additional terms of 2 years in the 41
same manner as the original appointment. Any vacancy occurring in 42
the membership of the Commission must be filled in the same 43
manner as the original appointment not later than 30 days after the 44
vacancy occurs. 45
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7. The Superintendent of Public Instruction shall call the first 1
meeting of the Commission. At its first meeting and annually 2
thereafter, the members of the Commission shall elect a Chair and a 3
Vice Chair from among the members of the Commission. 4
8. The Commission shall meet at least once each calendar 5
quarter and as needed at the call of the Chair. 6
9. The Commission may appoint subcommittees to address 7
designated projects or consider specific problems or other matters 8
that are related to and within the scope of the functions of the 9
Commission, as the Commission determines necessary to carry out 10
the duties of the Commission. 11
10. The Department shall provide any administrative support 12
necessary for the Commission to carry out its duties. 13
Sec. 3. NRS 388.090 is hereby amended to read as follows: 14
388.090 1. Except as otherwise provided in this section and 15
NRS 388D.330, boards of trustees of school districts shall schedule 16
and provide a minimum of 180 days of free school in the districts 17
under their charge. 18
2. [Except for an alternative schedule described in subsection 19
3, the] The Superintendent of Public Instruction may, upon 20
application by the board of trustees of a school district, authorize the 21
school district to provide a program of instruction based on an 22
alternative schedule , which may include, without limitation, a 23
reduction in the number of school days, if the number of minutes 24
of instruction to be provided is equal to or greater than the number 25
of minutes of instruction that would be provided in a program of 26
instruction consisting of 180 school days. The Superintendent of 27
Public Instruction shall notify the board of trustees of the school 28
district of the approval or denial of the application not later than 30 29
days after the Superintendent of Public Instruction receives the 30
application. An alternative schedule proposed pursuant to this 31
subsection must be developed in accordance with chapter 288 of 32
NRS. 33
3. [The Superintendent of Public Instruction may, upon 34
application by the board of trustees of a school district, authorize a 35
reduction of not more than 15 school days in that particular district 36
to establish or maintain an alternative schedule consisting of a 12-37
month school program if the board of trustees demonstrates that the 38
proposed alternative schedule for the program provides for a number 39
of minutes of instruction that is equal to or greater than that which 40
would be provided under a program consisting of 180 school days. 41
4.] The Superintendent of Public Instruction may, upon 42
application by a board of trustees, authorize the addition of minutes 43
of instruction to any scheduled day of free school if days of free 44
school are lost because of any interscholastic activity. Not more than 45
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5 days of free school so lost may be rescheduled in this manner. The 1
provisions of this subsection do not apply to an alternative schedule 2
approved pursuant to subsection 2. 3
[5.] 4. The number of minutes of instruction required for a 4
particular group of pupils in a program of instruction based on an 5
alternative schedule approved pursuant to this section and NRS 6
388.095 and 388.097 must be determined by multiplying the 7
appropriate minimum daily period of instruction established by the 8
State Board by regulation for that particular group of pupils by 180. 9
Sec. 4. (Deleted by amendment.) 10
Sec. 4.1. Chapter 389 of NRS is hereby amended by adding 11
thereto the provisions set forth as sections 4.2 to 4.6, inclusive, of 12
this act. 13
Sec. 4.2. 1. Not later than July 1, 2040, and at least once 14
every 5 years thereafter, the Department shall review and, as 15
necessary, revise the Portrait of a Nevada Learner to align with 16
the educational needs of this State. 17
2. As used in this section, “Portrait of a Nevada Learner” 18
means the document with that title which was developed by the 19
Department of Education through public engagement and 20
originally published in June 2023. 21
Sec. 4.3. 1. The board of trustees of a school district or the 22
governing body of a charter school or university school for 23
profoundly gifted pupils may submit an application to the 24
Department to provide a program of personalized, competency-25
based learning. In addition, a committee to form a charter school 26
or charter management organization may submit an application to 27
the Department to provide a program of personalized, competency-28
based learning if the application to form the charter school 29
submitted by the committee or the organization pursuant to NRS 30
388A.246 indicates that the charter school intends to provide a 31
program of personalized, competency-based learning. 32
2. An application to provide a program of personalized, 33
competency-based learning must include: 34
(a) Proof satisfactory to the Department that the program 35
satisfies all applicable statutes and regulations; 36
(b) A description of how the program will ensure access to 37
technology for pupils and teachers or other school employees and 38
communicate with pupils, their families and staff regarding the 39
program of personalized, competency-based learning; and 40
(c) Such other information as the State Board may require by 41
regulation. 42
3. Except as otherwise provided in this subsection, the 43
Department shall approve an application submitted pursuant to 44
this section if the application satisfies the requirements of 45
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NRS 389.200 and sections 4.3 to 4.6, inclusive, of this act and all 1
other applicable statutes and regulations. The Department shall 2
deny an application to provide a program of personalized, 3
competency-based learning submitted by a committee to form a 4
charter school or a charter management organization if the 5
Department denies the application to form a charter school 6
submitted by the committee or organization. The Department shall 7
provide written notice to the applicant of the Department’s 8
approval or denial of the application. 9
4. If the Department denies an application submitted 10
pursuant to this section, the Department shall include in the 11
written notice provided pursuant to subsection 3 the reasons for 12
the denial and the deficiencies of the application. The applicant 13
must be granted 30 days after receipt of the written notice to 14
correct any deficiencies identified in the written notice and 15
resubmit the application. The Department shall approve an 16
application that has been resubmitted pursuant to this subsection 17
if the application satisfies the requirements of NRS 389.200 and 18
sections 4.3 to 4.6, inclusive, of this act and all other applicable 19
statutes and regulations. 20
5. The board of trustees of each school district and the 21
governing body of a charter school or university school for 22
profoundly gifted pupils that provides a program of personalized, 23
competency-based learning shall: 24
(a) Develop a plan for conducting the program of 25
personalized, competency-based learning. 26
(b) At least 45 days before the first day of each school year, 27
present the plan for conducting the program of personalized, 28
competency-based learning to the public at a public meeting or, if 29
the plan was developed by the governing body of a charter school 30
or university school for profoundly gifted pupils, to the sponsor of 31
the school. 32
(c) Make a copy of the plan for conducting the program of 33
personalized, competency-based learning available to the school 34
community, including, without limitation, parents and employees 35
of the school district, charter school or university school for 36
profoundly gifted pupils, as applicable. 37
Sec. 4.4. The board of trustees of a school district or the 38
governing body of a charter school or university school for 39
profoundly gifted pupils that provides a program of personalized, 40
competency-based learning shall ensure that the persons who 41
operate the program on a day-to-day basis comply with and carry 42
out all applicable requirements, statutes, regulations and rules and 43
policies of the school district, charter school or university school 44
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for profoundly gifted pupils, as applicable, including, without 1
limitation: 2
1. Requirements for graduation; 3
2. The accountability of public schools pursuant to chapter 4
385A of NRS; 5
3. Provisions governing the attendance and truancy of pupils, 6
including, without limitation, NRS 392.040 to 392.220, inclusive; 7
4. The discipline of pupils; and 8
5. Requirements for assessing the achievement of pupils, 9
including, without limitation, the administration of the 10
examinations required by NRS 390.105 and, if applicable for the 11
grade levels of the pupils enrolled, the college and career 12
readiness assessment administered pursuant to NRS 390.610. 13
Sec. 4.5. 1. A program of personalized, competency-based 14
learning may be provided on an alternative schedule, including, 15
without limitation: 16
(a) Shorter or longer school days than are regularly provided 17
for in the school district, charter school or university school for 18
profoundly gifted pupils. 19
(b) Attendance by pupils during any part of the calendar year. 20
2. If a program of personalized, competency-based learning is 21
provided for pupils on a full-time basis, the program must include 22
at least as many hours or minutes of instruction as would be 23
provided under a program consisting of 180 days or an alternative 24
number of days which the State Board may prescribe by 25
regulation. 26
3. A pupil who is enrolled full-time in a program of 27
personalized, competency-based learning and who demonstrates 28
sufficient proficiency to meet the objectives of a course of 29
instruction may complete the course in a shorter period of time 30
than is normally allotted for the course. 31
Sec. 4.6. The State Board shall adopt regulations necessary 32
to carry out the provisions of NRS 389.200 and sections 4.3, 4.4 33
and 4.5 of this act. 34
Sec. 5. NRS 389.041 is hereby amended to read as follows: 35
389.041 1. The State Board shall, by regulation, establish a 36
course of study in occupational guidance and counseling. 37
2. The board of trustees of each school district shall establish 38
the curriculum for the course of study in that district. The 39
curriculum must be organized and, with the assistance of teachers, 40
administrators, pupils, parents and the business community, 41
coordinated by licensed school counselors who shall provide 42
instruction and activities designed to: 43
(a) Promote normal growth and development. 44
(b) Promote positive mental and physical health. 45
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(c) Provide each pupil with knowledge and skills which permit 1
the pupil to control his or her own destiny. 2
(d) Assist each pupil to plan, monitor and manage the pupil’s 3
personal, educational and occupational development. 4
(e) Meet the immediate needs and concerns of each pupil, 5
whether the pupil’s needs or concerns require counseling, 6
consultation, referral or information. 7
(f) Provide counselors, teachers and support staff with the 8
knowledge and skills required to maintain and improve the course. 9
(g) Provide such other related assistance and instruction as is 10
deemed necessary. 11
3. The instruction required by this section must be made 12
available for each pupil in grades 7 to 12, inclusive. 13
4. The board of trustees in each school district shall organize 14
and offer the curriculum within the limits of money made available 15
to the district by the Legislature for that purpose. 16
5. A local educational agency, as defined in 20 U.S.C. § 17
7801(30)(A), may develop, maintain and publish on an Internet 18
website maintained by the local educational agency 19
recommendations for educational materials and information 20
regarding career exploration suitable for pupils in grades 1 to 5, 21
inclusive. 22
Sec. 5.5. NRS 389.171 is hereby amended to read as follows: 23
389.171 1. A pupil may be granted credit for a specific 24
course of study without having attended the regularly scheduled 25
classes in the course if the pupil demonstrates his or her proficiency 26
to meet the: 27
(a) Objectives of the course through the pupil’s performance on 28
an examination prescribed by the State Board; 29
(b) Objectives of a particular area or areas of the course in 30
which the pupil is deficient through the pupil’s performance on an 31
examination developed by the principal and the pupil’s teacher who 32
provides instruction in the course that is designed to measure the 33
proficiency of the pupil in that particular area or areas; or 34
(c) Objectives of the course through the pupil’s performance on 35
an examination that the principal determines is as rigorous or more 36
rigorous than the examination prescribed by the State Board 37
pursuant to paragraph (a), including, without limitation, an advanced 38
placement examination in the subject area of the course . [; 39
(d) Objectives of the course through a portfolio of the pupil’s 40
work; 41
(e) Objectives of a particular area or areas of the course through 42
the pupil’s performance of a task that is designed to measure the 43
proficiency of the pupil in that particular area or areas; or 44
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(f) Objectives of the course as measured against the criteria 1
prescribed by the State Board pursuant to paragraph (d) of 2
subsection 2.] 3
2. The State Board shall adopt regulations that prescribe the: 4
(a) Form on which a pupil may apply to the board of trustees of 5
a school district in which the pupil attends school or the governing 6
body of the charter school in which the pupil is enrolled to be 7
granted credit pursuant to subsection 1; 8
(b) Courses of study for which pupils may be granted credit 9
pursuant to subsection 1; 10
(c) Minimum score on the examination prescribed pursuant to 11
paragraph (a) of subsection 1 that is required to demonstrate 12
proficiency in a course; and 13
(d) Criteria, other than the criteria described in paragraphs (a) 14
[to (e), inclusive,] , (b) and (c) of subsection 1, that may be used to 15
determine whether a pupil has achieved proficiency in a course. 16
Sec. 6. NRS 389.200 is hereby amended to read as follows: 17
389.200 As used in NRS 389.200 [, 389.210 and 389.230, 18
“competency-based education”] and sections 4.3 to 4.6, inclusive, 19
of this act, “personalized, competency-based learning” means a 20
system of [instruction by] learning in which [a] : 21
1. A pupil advances [to a higher level of learning when the 22
pupil demonstrates] through courses based on evidence of mastery 23
[of a concept or skill, regardless of the time, place or pace at which 24
the pupil progresses.] or competence; 25
2. A pupil makes important decisions about his or her 26
learning experience on a daily basis, including, without limitation, 27
how the pupil will create and apply knowledge and demonstrate 28
mastery or competence in a concept or skill; 29
3. A pupil receives differentiated support based on his or her 30
individual learning progress, such that learning may be 31
accelerated or remediation may be provided; 32
4. A pupil learns actively using different pathways and varied 33
pacing; and 34
5. Expectations for learning are rigorous, transparent, 35
measureable and transferable. 36
Sec. 7. (Deleted by amendment.) 37
Sec. 8. (Deleted by amendment.) 38
Sec. 8.5. Chapter 231 of NRS is hereby amended by adding 39
thereto a new section to read as follows: 40
The Department of Education shall adopt by regulation a 41
definition of “work-based learning opportunity” for the purposes 42
of any agreement between the Office and an applicant for an 43
abatement, a partial abatement or transferable tax credits that 44
incorporates a plan by the applicant to provide such opportunities 45
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to pupils enrolled in public high schools in this State, including, 1
without limitation, an agreement entered into pursuant to NRS 2
231.1555, 274.310, 274.320, 274.330, 360.750, 360.753, 360.754, 3
360.759, 360.889 or 360.945. 4
Sec. 9. NRS 231.037 is hereby amended to read as follows: 5
231.037 The Board shall: 6
1. Review and evaluate all programs of economic development 7
in this State and make recommendations to the Legislature for 8
legislation to [improve] : 9
(a) Improve the effectiveness of those programs in 10
implementing the State Plan for Economic Development developed 11
by the Executive Director pursuant to subsection 2 of NRS 231.053. 12
(b) Provide incentives for businesses, including small 13
businesses, to provide opportunities for career exploration to 14
pupils enrolled in public high schools in this State. 15
2. Recommend to the Executive Director a State Plan for 16
Economic Development and make recommendations to the 17
Executive Director for carrying out the State Plan for Economic 18
Development, including, without limitation, recommendations 19
regarding the development and implementation of a recruiting and 20
marketing effort to attract professionals and businesses to this State. 21
3. Recommend to the Executive Director the criteria for the 22
designation of regional development authorities. 23
4. Make recommendations to the Executive Director for the 24
designation for the southern region of this State, the northern region 25
of this State and the rural region of this State, one or more regional 26
development authorities for each region. 27
5. Provide advice and recommendations to the Executive 28
Director concerning: 29
(a) The procedures to be followed by any entity seeking to 30
obtain any development resource, allocation, grant or loan from the 31
Office; 32
(b) The criteria to be used by the Office in providing 33
development resources and making allocations, grants and loans; 34
(c) The requirements for reports from the recipients of 35
development resources, allocations, grants and loans from the Office 36
concerning the use thereof; 37
(d) The development and implementation of programs to 38
provide customized workforce development services to existing and 39
prospective businesses in this State; and 40
(e) Any other activities of the Office. 41
6. Review each proposal by the Executive Director to enter into 42
a contract pursuant to NRS 231.057 for more than $100,000 or 43
allocate, grant or loan more than $100,000 to any entity and, as the 44
Board determines to be in the best interests of the State, approve or 45
– 13 –
- *SB403_R1*
disapprove the proposed allocation, grant or loan. Notwithstanding 1
any other statutory provision to the contrary, the Executive Director 2
shall not enter into any contract pursuant to NRS 231.057 for more 3
than $100,000 or make any allocation, grant or loan of more than 4
$100,000 to any entity unless the allocation, grant or loan is 5
approved by the Board. 6
7. Review and make recommendations to the Department of 7
Education regarding technologies to facilitate the exploration by 8
pupils of careers in industries in this State. 9
Sec. 10. NRS 231.1555 is hereby amended to read as follows: 10
231.1555 1. A person who intends to locate or expand a 11
business in this State may apply to the Office for a certificate of 12
eligibility for transferable tax credits which may be applied to: 13
(a) Any tax imposed by chapter 363A or 363B of NRS; 14
(b) The gaming license fee imposed by the provisions of 15
NRS 463.370; 16
(c) Any tax imposed by chapter 680B of NRS; or 17
(d) Any combination of the fees and taxes described in 18
paragraphs (a), (b) and (c). 19
2. After considering any advice and recommendations of the 20
Board, the Executive Director shall establish: 21
(a) Procedures for applying to the Office for a certificate of 22
eligibility for transferable tax credits which must: 23
(1) Include, without limitation, a requirement that the 24
applicant set forth in the application: 25
(I) The proposed use of the transferable tax credits; 26
(II) The plans, projects and programs for which the 27
transferable tax credits will be used; 28
(III) The expected benefits of the issuance of the 29
transferable tax credits; and 30
(IV) A statement of the short-term and long-term impacts 31
of the issuance of the transferable tax credits; and 32
(2) Allow the applicant to revise the application upon the 33
recommendation of the Executive Director. 34
(b) The criteria which a person to whom a certificate of 35
eligibility for transferable tax credits has been issued must satisfy to 36
be issued a certificate of transferable tax credits. Such criteria may 37
include, without limitation, a requirement for the applicant to 38
enter into an agreement with the Office that incorporates a plan 39
by the applicant to provide work-based learning opportunities to 40
pupils enrolled in public high schools in this State, which may 41
include, without limitation, a proposal to offer work-based 42
learning opportunities at the business of the applicant or to 43
provide for employees of the applicant to serve as full-time or part-44
time instructors for career and technical education courses. 45
– 14 –
- *SB403_R1*
3. After receipt of an application pursuant to this section, the 1
Executive Director shall review and evaluate the application and 2
determine whether the approval of the application would promote 3
the economic development of this State and aid the implementation 4
of the State Plan for Economic Development developed by the 5
Executive Director pursuant to subsection 2 of NRS 231.053. 6
4. If the applicant is requesting transferable tax credits in an 7
amount of $100,000 or less, the Executive Director may approve the 8
application, subject to the provisions of subsection 6, if the 9
Executive Director determines that approving the application will 10
promote the economic development of this State and aid the 11
implementation of the State Plan for Economic Development. 12
5. If the applicant is requesting transferable tax credits in an 13
amount greater than $100,000, the Executive Director shall submit 14
the application and the Executive Director’s review and evaluation 15
of the application pursuant to subsection 3 to the Board, and the 16
Board may approve the application, subject to the provisions of 17
subsection 6, if the Board determines that approving the application 18
will promote the economic development of this State and aid the 19
implementation of the State Plan for Economic Development. 20
6. The Executive Director or the Board shall not approve any 21
application for transferable tax credits for: 22
(a) A period of more than 5 fiscal years; 23
(b) Fiscal Year 2015-2016; or 24
(c) Any fiscal year if the approval of the application would 25
cause the total amount of transferable tax credits issued pursuant to 26
this section to exceed: 27
(1) For Fiscal Year 2016-2017, $1,000,000. 28
(2) For Fiscal Year 2017-2018, $2,000,000. 29
(3) For Fiscal Year 2018-2019, $2,000,000. 30
(4) For Fiscal Year 2019-2020, $3,000,000. 31
(5) For a fiscal year beginning on or after July 1, 2020, 32
$5,000,000. 33
7. If the Executive Director or the Board approves an 34
application and issues a certificate of eligibility for transferable tax 35
credits, the Office shall immediately forward a copy of the 36
certificate of eligibility which identifies the estimated amount of the 37
tax credits available pursuant to this section to: 38
(a) The applicant; 39
(b) The Department of Taxation; and 40
(c) The Nevada Gaming Control Board. 41
8. Within 14 days after the Office determines that a person to 42
whom a certificate of eligibility for transferable tax credits has been 43
issued satisfies the criteria established by the Executive Director 44
pursuant to subsection 2, the Office shall notify the person that 45
– 15 –
- *SB403_R1*
transferable tax credits will be issued. Within 30 days after the 1
receipt of the notice, the person shall make an irrevocable 2
declaration of the amount of transferable tax credits that will be 3
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of 4
subsection 1, thereby accounting for all of the credits which will be 5
issued. Upon receipt of the declaration, the Office shall issue to the 6
person a certificate of transferable tax credits in the amount 7
approved by the Executive Director or the Board, as applicable, for 8
the fees or taxes included in the declaration. The Office shall notify 9
the Department of Taxation and the Nevada Gaming Control Board 10
of all transferable tax credits issued, segregated by each fee or tax 11
set forth in paragraphs (a), (b) and (c) of subsection 1, and the 12
amount of any transferable tax credits transferred. 13
Sec. 11. NRS 274.310 is hereby amended to read as follows: 14
274.310 1. A person who intends to locate a business in this 15
State within: 16
(a) A historically underutilized business zone, as defined in 15 17
U.S.C. § 632; 18
(b) A redevelopment area created pursuant to chapter 279 of 19
NRS; 20
(c) An area eligible for a community development block grant 21
pursuant to 24 C.F.R. Part 570; or 22
(d) An enterprise community established pursuant to 24 C.F.R. 23
Part 597, 24
may submit a request to the governing body of the county, city or 25
town in which the business would operate for an endorsement of an 26
application by the person to the Office of Economic Development 27
for a partial abatement of one or more of the taxes imposed pursuant 28
to chapter 361 of NRS or the local sales and use taxes. The 29
governing body of the county, city or town shall provide notice of 30
the request to the board of trustees of the school district in which the 31
business would operate. The notice must set forth the date, time and 32
location of the hearing at which the governing body will consider 33
whether to endorse the application. As used in this subsection, 34
“local sales and use taxes” means the taxes imposed on the gross 35
receipts of any retailer from the sale of tangible personal property 36
sold at retail, or stored, used or otherwise consumed, in the political 37
subdivision in which the business is located, except the taxes 38
imposed by the Sales and Use Tax Act and the Local School 39
Support Tax Law. 40
2. The governing body of a county, city or town shall develop 41
procedures for: 42
(a) Evaluating whether such an abatement would be beneficial 43
for the economic development of the county, city or town. 44
– 16 –
- *SB403_R1*
(b) Issuing a certificate of endorsement for an application for 1
such an abatement that is found to be beneficial for the economic 2
development of the county, city or town. 3
3. A person whose application has been endorsed by the 4
governing body of the county, city or town, as applicable, pursuant 5
to this section may submit the application to the Office of Economic 6
Development. The Office shall approve the application if the Office 7
makes the following determinations: 8
(a) The business is consistent with: 9
(1) The State Plan for Economic Development developed by 10
the Administrator pursuant to subsection 2 of NRS 231.053; and 11
(2) Any guidelines adopted by the Administrator to 12
implement the State Plan for Economic Development. 13
(b) Not later than 1 year after the date on which the application 14
was received by the Office, the applicant has executed an agreement 15
with the Office which states: 16
(1) The date on which the abatement becomes effective, as 17
agreed to by the applicant and the Office, which must not be earlier 18
than the date on which the Office received the application and not 19
later than 1 year after the date on which the Office approves the 20
application; and 21
(2) That the business will, after the date on which the 22
abatement becomes effective: 23
(I) Commence operation and continue in operation in the 24
historically underutilized business zone, as defined in 15 U.S.C. § 25
632, redevelopment area created pursuant to chapter 279 of NRS, 26
area eligible for a community development block grant pursuant to 27
24 C.F.R. Part 570 or enterprise community established pursuant to 28
24 C.F.R. Part 597 for a period specified by the Office, which must 29
be at least 5 years; and 30
(II) Continue to meet the eligibility requirements set forth 31
in this subsection. 32
The agreement must bind successors in interest of the business 33
for the specified period. 34
(c) The business is registered pursuant to the laws of this State 35
or the applicant commits to obtain a valid business license and all 36
other permits required by the county, city or town in which the 37
business will operate. 38
(d) The applicant invested or commits to invest a minimum of 39
$500,000 in capital assets that will be retained at the location of the 40
business in the historically underutilized business zone, as defined 41
in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 42
279 of NRS, area eligible for a community development block grant 43
pursuant to 24 C.F.R. Part 570 or enterprise community established 44
– 17 –
- *SB403_R1*
pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years 1
after the date on which the abatement becomes effective. 2
4. The Office of Economic Development may require the 3
agreement described in paragraph (b) of subsection 3 to 4
incorporate a plan by the business to provide work-based learning 5
opportunities to pupils enrolled in public high schools in this 6
State, which may include, without limitation, a proposal to offer 7
work-based learning opportunities at the business or to provide for 8
employees of the business to serve as full-time or part-time 9
instructors for career and technical education courses. 10
5. If the Office of Economic Development approves an 11
application for a partial abatement, the Office shall immediately 12
forward a certificate of eligibility for the abatement to: 13
(a) The Department of Taxation; 14
(b) The Nevada Tax Commission; and 15
(c) If the partial abatement is from the property tax imposed 16
pursuant to chapter 361 of NRS, the county treasurer of the county 17
in which the business will be located. 18
[5.] 6. If the Office of Economic Development approves an 19
application for a partial abatement pursuant to this section: 20
(a) The partial abatement must be for a duration of not less than 21
1 year but not more than 5 years. 22
(b) If the abatement is from the property tax imposed pursuant 23
to chapter 361 of NRS, the partial abatement must not exceed 75 24
percent of the taxes on personal property payable by a business each 25
year pursuant to that chapter. 26
[6.] 7. If an applicant for a partial abatement pursuant to this 27
section fails to execute the agreement described in paragraph (b) of 28
subsection 3 within 1 year after the date on which the application 29
was received by the Office, the applicant shall not be approved for a 30
partial abatement pursuant to this section unless the applicant 31
submits a new request pursuant to subsection 1. 32
[7.] 8. If a business whose partial abatement has been 33
approved pursuant to this section and is in effect ceases: 34
(a) To meet the eligibility requirements for the partial 35
abatement; or 36
(b) Operation before the time specified in the agreement 37
described in paragraph (b) of subsection 3, 38
the business shall repay to the Department of Taxation or, if the 39
partial abatement was from the property tax imposed pursuant to 40
chapter 361 of NRS, to the county treasurer, the amount of the 41
partial abatement that was allowed pursuant to this section before 42
the failure of the business to comply unless the Nevada Tax 43
Commission determines that the business has substantially complied 44
with the requirements of this section. Except as otherwise provided 45
– 18 –
- *SB403_R1*
in NRS 360.232 and 360.320, the business shall, in addition to the 1
amount of the partial abatement required to be paid pursuant to this 2
subsection, pay interest on the amount due at the rate most recently 3
established pursuant to NRS 99.040 for each month, or portion 4
thereof, from the last day of the month following the period for 5
which the payment would have been made had the partial abatement 6
not been approved until the date of payment of the tax. 7
[8.] 9. The Office of Economic Development may adopt such 8
regulations as the Office determines to be necessary or advisable to 9
carry out the provisions of this section. 10
[9.] 10. An applicant for an abatement who is aggrieved by a 11
final decision of the Office of Economic Development may petition 12
for judicial review in the manner provided in chapter 233B of NRS. 13
Sec. 12. NRS 274.320 is hereby amended to read as follows: 14
274.320 1. A person who intends to expand a business in this 15
State within: 16
(a) A historically underutilized business zone, as defined in 15 17
U.S.C. § 632; 18
(b) A redevelopment area created pursuant to chapter 279 of 19
NRS; 20
(c) An area eligible for a community development block grant 21
pursuant to 24 C.F.R. Part 570; or 22
(d) An enterprise community established pursuant to 24 C.F.R. 23
Part 597, 24
may submit a request to the governing body of the county, city or 25
town in which the business operates for an endorsement of an 26
application by the person to the Office of Economic Development 27
for a partial abatement of the local sales and use taxes imposed on 28
capital equipment. The governing body of the county, city or town 29
shall provide notice of the request to the board of trustees of the 30
school district in which the business operates. The notice must set 31
forth the date, time and location of the hearing at which the 32
governing body will consider whether to endorse the application. As 33
used in this subsection, “local sales and use taxes” means the taxes 34
imposed on the gross receipts of any retailer from the sale of 35
tangible personal property sold at retail, or stored, used or otherwise 36
consumed, in the political subdivision in which the business is 37
located, except the taxes imposed by the Sales and Use Tax Act and 38
the Local School Support Tax Law. 39
2. The governing body of a county, city or town shall develop 40
procedures for: 41
(a) Evaluating whether such an abatement would be beneficial 42
for the economic development of the county, city or town. 43
– 19 –
- *SB403_R1*
(b) Issuing a certificate of endorsement for an application for 1
such an abatement that is found to be beneficial for the economic 2
development of the county, city or town. 3
3. A person whose application has been endorsed by the 4
governing body of the county, city or town, as applicable, pursuant 5
to this section may submit the application to the Office of Economic 6
Development. The Office shall approve the application if the Office 7
makes the following determinations: 8
(a) The business is consistent with: 9
(1) The State Plan for Economic Development developed by 10
the Administrator pursuant to subsection 2 of NRS 231.053; and 11
(2) Any guidelines adopted by the Administrator to 12
implement the State Plan for Economic Development. 13
(b) Not later than 1 year after the date on which the application 14
was received by the Office, the applicant has executed an agreement 15
with the Office which states: 16
(1) The date on which the abatement becomes effective, as 17
agreed to by the applicant and the Office, which must not be earlier 18
than the date on which the Office received the application and not 19
later than 1 year after the date on which the Office approves the 20
application; and 21
(2) That the business will, after the date on which the 22
abatement becomes effective: 23
(I) Continue in operation in the historically underutilized 24
business zone, as defined in 15 U.S.C. § 632, redevelopment area 25
created pursuant to chapter 279 of NRS, area eligible for a 26
community development block grant pursuant to 24 C.F.R. Part 570 27
or enterprise community established pursuant to 24 C.F.R. Part 597 28
for a period specified by the Office, which must be at least 5 years; 29
and 30
(II) Continue to meet the eligibility requirements set forth 31
in this subsection. 32
The agreement must bind successors in interest of the business 33
for the specified period. 34
(c) The business is registered pursuant to the laws of this State 35
or the applicant commits to obtain a valid business license and all 36
other permits required by the county, city or town in which the 37
business operates. 38
(d) The applicant invested or commits to invest a minimum of 39
$250,000 in capital equipment that will be retained at the location of 40
the business in the historically underutilized business zone, as 41
defined in 15 U.S.C. § 632, redevelopment area created pursuant to 42
chapter 279 of NRS, area eligible for a community development 43
block grant pursuant to 24 C.F.R. Part 570 or enterprise community 44
established pursuant to 24 C.F.R. Part 597 until at least the date 45
– 20 –
- *SB403_R1*
which is 5 years after the date on which the abatement becomes 1
effective. 2
4. The Office of Economic Development may require the 3
agreement described in paragraph (b) of subsection 3 to 4
incorporate a plan by the business to provide work-based learning 5
opportunities to pupils enrolled in public high schools in this 6
State, which may include, without limitation, a proposal to offer 7
work-based learning opportunities at the business or to provide for 8
employees of the business to serve as full-time or part-time 9
instructors for career and technical education courses. 10
5. If the Office of Economic Development approves an 11
application for a partial abatement, the Office shall immediately 12
forward a certificate of eligibility for the abatement to: 13
(a) The Department of Taxation; and 14
(b) The Nevada Tax Commission. 15
[5.] 6. If the Office of Economic Development approves an 16
application for a partial abatement pursuant to this section: 17
(a) The partial abatement must be for a duration of not less than 18
1 year but not more than 5 years. 19
(b) If the abatement is from the property tax imposed pursuant 20
to chapter 361 of NRS, the partial abatement must not exceed 75 21
percent of the taxes on personal property payable by a business each 22
year pursuant to that chapter. 23
[6.] 7. If an applicant for a partial abatement pursuant to this 24
section fails to execute the agreement described in paragraph (b) of 25
subsection 3 within 1 year after the date on which the application 26
was received by the Office, the applicant shall not be approved for a 27
partial abatement pursuant to this section unless the applicant 28
submits a new request pursuant to subsection 1. 29
[7.] 8. If a business whose partial abatement has been 30
approved pursuant to this section and is in effect ceases: 31
(a) To meet the eligibility requirements for the partial 32
abatement; or 33
(b) Operation before the time specified in the agreement 34
described in paragraph (b) of subsection 3, 35
the business shall repay to the Department of Taxation the 36
amount of the partial abatement that was allowed pursuant to this 37
section before the failure of the business to comply unless the 38
Nevada Tax Commission determines that the business has 39
substantially complied with the requirements of this section. Except 40
as otherwise provided in NRS 360.232 and 360.320, the business 41
shall, in addition to the amount of the partial abatement required to 42
be paid pursuant to this subsection, pay interest on the amount due 43
at the rate most recently established pursuant to NRS 99.040 for 44
each month, or portion thereof, from the last day of the month 45
– 21 –
- *SB403_R1*
following the period for which the payment would have been made 1
had the partial abatement not been approved until the date of 2
payment of the tax. 3
[8.] 9. The Office of Economic Development may adopt such 4
regulations as the Office determines to be necessary or advisable to 5
carry out the provisions of this section. 6
[9.] 10. An applicant for an abatement who is aggrieved by a 7
final decision of the Office of Economic Development may petition 8
for judicial review in the manner provided in chapter 233B of NRS. 9
Sec. 13. NRS 274.330 is hereby amended to read as follows: 10
274.330 1. A person who owns a business which is located 11
within an enterprise community established pursuant to 24 C.F.R. 12
Part 597 in this State may submit a request to the governing body of 13
the county, city or town in which the business is located for an 14
endorsement of an application by the person to the Office of 15
Economic Development for a partial abatement of one or more of 16
the taxes imposed pursuant to chapter 361 of NRS or the local sales 17
and use taxes. The governing body of the county, city or town shall 18
provide notice of the request to the board of trustees of the school 19
district in which the business operates. The notice must set forth the 20
date, time and location of the hearing at which the governing body 21
will consider whether to endorse the application. As used in this 22
subsection, “local sales and use taxes” means the taxes imposed on 23
the gross receipts of any retailer from the sale of tangible personal 24
property sold at retail, or stored, used or otherwise consumed, in the 25
political subdivision in which the business is located, except the 26
taxes imposed by the Sales and Use Tax Act and the Local School 27
Support Tax Law. 28
2. The governing body of a county, city or town shall develop 29
procedures for: 30
(a) Evaluating whether such an abatement would be beneficial 31
for the economic development of the county, city or town. 32
(b) Issuing a certificate of endorsement for an application for 33
such an abatement that is found to be beneficial for the economic 34
development of the county, city or town. 35
3. A person whose application has been endorsed by the 36
governing body of the county, city or town, as applicable, pursuant 37
to this section may submit the application to the Office of Economic 38
Development. The Office shall approve the application if the Office 39
makes the following determinations: 40
(a) The business is consistent with: 41
(1) The State Plan for Economic Development developed by 42
the Administrator pursuant to subsection 2 of NRS 231.053; and 43
(2) Any guidelines adopted by the Administrator to 44
implement the State Plan for Economic Development. 45
– 22 –
- *SB403_R1*
(b) Not later than 1 year after the date on which the application 1
was received by the Office, the applicant has executed an agreement 2
with the Office which states: 3
(1) The date on which the abatement becomes effective, as 4
agreed to by the applicant and the Office, which must not be earlier 5
than the date on which the Office received the application and not 6
later than 1 year after the date on which the Office approves the 7
application; and 8
(2) That the business will, after the date on which the 9
abatement becomes effective: 10
(I) Continue in operation in the enterprise community for 11
a period specified by the Office, which must be at least 5 years; and 12
(II) Continue to meet the eligibility requirements set forth 13
in this subsection. 14
The agreement must bind successors in interest of the business 15
for the specified period. 16
(c) The business is registered pursuant to the laws of this State 17
or the applicant commits to obtain a valid business license and all 18
other permits required by the county, city or town in which the 19
business operates. 20
(d) The business: 21
(1) Employs one or more dislocated workers who reside in 22
the enterprise community; and 23
(2) Pays such employees a wage of not less than 100 percent 24
of the federally designated level signifying poverty for a family of 25
four persons and provides medical benefits to the employees and 26
their dependents which meet the minimum requirements for medical 27
benefits established by the Office. 28
4. The Office of Economic Development may require the 29
agreement described in paragraph (b) of subsection 3 to 30
incorporate a plan by the business to provide work-based learning 31
opportunities to pupils enrolled in public high schools in this 32
State, which may include, without limitation, a proposal to offer 33
work-based learning opportunities at the business or to provide for 34
employees of the business to serve as full-time or part-time 35
instructors for career and technical education courses. 36
5. If the Office of Economic Development approves an 37
application for a partial abatement, the Office shall: 38
(a) Determine the percentage of employees of the business 39
which meet the requirements of paragraph (d) of subsection 3 and 40
grant a partial abatement equal to that percentage; and 41
(b) Immediately forward a certificate of eligibility for the 42
abatement to: 43
(1) The Department of Taxation; 44
(2) The Nevada Tax Commission; and 45
– 23 –
- *SB403_R1*
(3) If the partial abatement is from the property tax imposed 1
pursuant to chapter 361 of NRS, the county treasurer of the county 2
in which the business is located. 3
[5.] 6. If the Office of Economic Development approves an 4
application for a partial abatement pursuant to this section: 5
(a) The partial abatement must be for a duration of not less than 6
1 year but not more than 5 years. 7
(b) If the abatement is from the property tax imposed pursuant 8
to chapter 361 of NRS, the partial abatement must not exceed 75 9
percent of the taxes on personal property payable by a business each 10
year pursuant to that chapter. 11
[6.] 7. If an applicant for a partial abatement pursuant to this 12
section fails to execute the agreement described in paragraph (b) of 13
subsection 3 within 1 year after the date on which the application 14
was received by the Office, the applicant shall not be approved for a 15
partial abatement pursuant to this section unless the applicant 16
submits a new request pursuant to subsection 1. 17
[7.] 8. If a business whose partial abatement has been 18
approved pursuant to this section and is in effect ceases: 19
(a) To meet the eligibility requirements for the partial 20
abatement; or 21
(b) Operation before the time specified in the agreement 22
described in paragraph (b) of subsection 3, 23
the business shall repay to the Department of Taxation or, if the 24
partial abatement was from the property tax imposed pursuant to 25
chapter 361 of NRS, to the county treasurer, the amount of the 26
partial abatement that was allowed pursuant to this section before 27
the failure of the business to comply unless the Nevada Tax 28
Commission determines that the business has substantially complied 29
with the requirements of this section. Except as otherwise provided 30
in NRS 360.232 and 360.320, the business shall, in addition to the 31
amount of the partial abatement required to be paid pursuant to this 32
subsection, pay interest on the amount due at the rate most recently 33
established pursuant to NRS 99.040 for each month, or portion 34
thereof, from the last day of the month following the period for 35
which the payment would have been made had the partial abatement 36
not been approved until the date of payment of the tax. 37
[8.] 9. The Office of Economic Development: 38
(a) Shall adopt regulations relating to the minimum level of 39
benefits that a business must provide to its employees to qualify for 40
an abatement pursuant to this section. 41
(b) May adopt such other regulations as the Office determines to 42
be necessary or advisable to carry out the provisions of this section. 43
– 24 –
- *SB403_R1*
[9.] 10. An applicant for an abatement who is aggrieved by a 1
final decision of the Office of Economic Development may petition 2
for judicial review in the manner provided in chapter 233B of NRS. 3
[10.] 11. As used in this section, “dislocated worker” means a 4
person who: 5
(a) Has been terminated, laid off or received notice of 6
termination or layoff from employment; 7
(b) Is eligible for or receiving or has exhausted his or her 8
entitlement to unemployment compensation; 9
(c) Has been dependent on the income of another family 10
member but is no longer supported by that income; 11
(d) Has been self-employed but is no longer receiving an income 12
from self-employment because of general economic conditions in 13
the community or natural disaster; or 14
(e) Is currently unemployed and unable to return to a previous 15
industry or occupation. 16
Sec. 14. NRS 360.750 is hereby amended to read as follows: 17
360.750 1. A person who intends to locate or expand a 18
business in this State may apply to the Office of Economic 19
Development pursuant to this section for a partial abatement of one 20
or more of the taxes imposed on the: 21
(a) New business pursuant to chapter 361, 363B or 374 of NRS. 22
(b) Expanded business pursuant to chapter 361 or 363B of NRS 23
or a partial abatement of the local sales and use taxes imposed on 24
the expanded business. As used in this paragraph, “local sales and 25
use taxes” means the taxes imposed on the gross receipts of any 26
retailer from the sale of tangible personal property sold at retail, or 27
stored, used or otherwise consumed, in the political subdivision in 28
which the business is to be located or expanded, except the taxes 29
imposed by the Sales and Use Tax Act and the Local School 30
Support Tax Law. 31
2. The Office of Economic Development shall approve an 32
application for a partial abatement pursuant to this section if the 33
Office makes the following determinations: 34
(a) The business offers primary jobs and is consistent with: 35
(1) The State Plan for Economic Development developed by 36
the Executive Director of the Office of Economic Development 37
pursuant to subsection 2 of NRS 231.053; and 38
(2) Any guidelines adopted by the Executive Director of the 39
Office to implement the State Plan for Economic Development. 40
(b) Not later than 1 year after the date on which the application 41
was received by the Office, the applicant has executed an agreement 42
with the Office which must: 43
(1) Comply with the requirements of NRS 360.755; 44
– 25 –
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(2) State the date on which the abatement becomes effective, 1
as agreed to by the applicant and the Office, which must not be 2
earlier than the date on which the Office received the application 3
and not later than 1 year after the date on which the Office approves 4
the application; 5
(3) State that the business will, after the date on which the 6
abatement becomes effective, continue in operation in this State for 7
a period specified by the Office, which must be at least 5 years, and 8
will continue to meet the eligibility requirements set forth in this 9
subsection; 10
(4) State that the business will offer primary jobs; and 11
(5) Bind the successors in interest of the business for the 12
specified period. 13
(c) The business is registered pursuant to the laws of this State 14
or the applicant commits to obtain a valid business license and all 15
other permits required by the county, city or town in which the 16
business operates. 17
(d) Except as otherwise provided in subsection 4, 5 or 6, the 18
average hourly wage that will be paid by the business to its new 19
employees in this State is at least 100 percent of the average 20
statewide hourly wage as established by the Employment Security 21
Division of the Department of Employment, Training and 22
Rehabilitation on July 1 of each fiscal year. 23
(e) The business will, by the eighth calendar quarter following 24
the calendar quarter in which the abatement becomes effective, offer 25
a health insurance plan for all employees that includes an option for 26
health insurance coverage for dependents of the employees, and the 27
health care benefits the business offers to its employees in this State 28
will meet the minimum requirements for health care benefits 29
established by the Office. 30
(f) Except as otherwise provided in this subsection and NRS 31
361.0687, if the business is a new business in a county whose 32
population is 100,000 or more or a city whose population is 60,000 33
or more, the business meets at least one of the following 34
requirements: 35
(1) The business will have 50 or more full-time employees 36
on the payroll of the business by the eighth calendar quarter 37
following the calendar quarter in which the abatement becomes 38
effective who will be employed at the location of the business in 39
that county or city until at least the date which is 5 years after the 40
date on which the abatement becomes effective. 41
(2) Establishing the business will require the business to 42
make, not later than the date which is 2 years after the date on which 43
the abatement becomes effective, a capital investment of at least 44
$1,000,000 in this State in capital assets that will be retained at the 45
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- *SB403_R1*
location of the business in that county or city until at least the date 1
which is 5 years after the date on which the abatement becomes 2
effective. 3
(g) Except as otherwise provided in NRS 361.0687, if the 4
business is a new business in a county whose population is less than 5
100,000, in an area of a county whose population is 100,000 or more 6
that is located within the geographic boundaries of an area that is 7
designated as rural by the United States Department of Agriculture 8
and at least 20 miles outside of the geographic boundaries of an area 9
designated as urban by the United States Department of Agriculture, 10
or in a city whose population is less than 60,000, the business meets 11
at least one of the following requirements: 12
(1) The business will have 10 or more full-time employees 13
on the payroll of the business by the eighth calendar quarter 14
following the calendar quarter in which the abatement becomes 15
effective who will be employed at the location of the business in 16
that county or city until at least the date which is 5 years after the 17
date on which the abatement becomes effective. 18
(2) Establishing the business will require the business to 19
make, not later than the date which is 2 years after the date on which 20
the abatement becomes effective, a capital investment of at least 21
$250,000 in this State in capital assets that will be retained at the 22
location of the business in that county or city until at least the date 23
which is 5 years after the date on which the abatement becomes 24
effective. 25
(h) If the business is an existing business, the business meets at 26
least one of the following requirements: 27
(1) For a business in: 28
(I) Except as otherwise provided in sub-subparagraph (II), 29
a county whose population is 100,000 or more or a city whose 30
population is 60,000 or more, the business will, by the eighth 31
calendar quarter following the calendar quarter in which the 32
abatement becomes effective, increase the number of employees on 33
its payroll in that county or city by 10 percent more than it 34
employed in the fiscal year immediately preceding the fiscal year in 35
which the abatement becomes effective or by twenty-five 36
employees, whichever is greater, who will be employed at the 37
location of the business in that county or city until at least the date 38
which is 5 years after the date on which the abatement becomes 39
effective; or 40
(II) A county whose population is less than 100,000, an 41
area of a county whose population is 100,000 or more that is located 42
within the geographic boundaries of an area that is designated as 43
rural by the United States Department of Agriculture and at least 20 44
miles outside of the geographic boundaries of an area designated as 45
– 27 –
- *SB403_R1*
urban by the United States Department of Agriculture, or a city 1
whose population is less than 60,000, the business will, by the 2
eighth calendar quarter following the calendar quarter in which the 3
abatement becomes effective, increase the number of employees on 4
its payroll in that county or city by 10 percent more than it 5
employed in the fiscal year immediately preceding the fiscal year in 6
which the abatement becomes effective or by six employees, 7
whichever is greater, who will be employed at the location of the 8
business in that county or city until at least the date which is 5 years 9
after the date on which the abatement becomes effective. 10
(2) The business will expand by making a capital investment 11
in this State, not later than the date which is 2 years after the date on 12
which the abatement becomes effective, in an amount equal to at 13
least 20 percent of the value of the tangible property possessed by 14
the business in the fiscal year immediately preceding the fiscal year 15
in which the abatement becomes effective, and the capital 16
investment will be in capital assets that will be retained at the 17
location of the business in that county or city until at least the date 18
which is 5 years after the date on which the abatement becomes 19
effective. The determination of the value of the tangible property 20
possessed by the business in the immediately preceding fiscal year 21
must be made by the: 22
(I) County assessor of the county in which the business 23
will expand, if the business is locally assessed; or 24
(II) Department, if the business is centrally assessed. 25
(i) The applicant has provided in the application an estimate of 26
the total number of new employees which the business anticipates 27
hiring in this State by the eighth calendar quarter following the 28
calendar quarter in which the abatement becomes effective if the 29
Office approves the application. 30
(j) Except as otherwise provided in subsection 3, if the business 31
will have at least 50 full-time employees on the payroll of the 32
business by the eighth calendar quarter following the calendar 33
quarter in which the abatement becomes effective, the business, by 34
the earlier of the eighth calendar quarter following the calendar 35
quarter in which the abatement becomes effective or the date on 36
which the business has at least 50 full-time employees on the payroll 37
of the business, has a policy for paid family and medical leave and 38
agrees that all employees who have been employed by the business 39
for at least 1 year will be eligible for at least 12 weeks of paid 40
family and medical leave at a rate of at least 55 percent of the 41
regular wage of the employee. The business will agree in writing 42
that if the Office approves the application, the business will not: 43
(1) Prohibit, interfere with or otherwise discourage an 44
employee from taking paid family and medical leave: 45
– 28 –
- *SB403_R1*
(I) For any reason authorized pursuant to the Family and 1
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 2
(II) To care for any adult child, sibling or domestic 3
partner of the employee. 4
(2) Discriminate, discipline or discharge an employee for 5
taking paid family and medical leave: 6
(I) For any reason authorized pursuant to the Family and 7
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 8
(II) To care for any adult child, sibling or domestic 9
partner of the employee. 10
(3) Prohibit, interfere with or otherwise discourage an 11
employee or other person from bringing a proceeding or testifying 12
in a proceeding against the business for a violation of the policy for 13
paid family and medical leave that is required pursuant to this 14
paragraph. 15
3. For purposes of paragraph (j) of subsection 2, the Office of 16
Economic Development shall determine that a business meets the 17
requirements of that paragraph if the business has a policy for paid 18
family and medical leave for employees on the payroll of the 19
business outside of this State that meets or exceeds the requirements 20
for a policy for paid family and medical leave pursuant to that 21
paragraph and the business agrees in writing that its employees on 22
the payroll in this State are eligible for paid family and medical 23
leave under such policy. 24
4. Notwithstanding the provisions of subsection 2, the Office 25
of Economic Development: 26
(a) Shall not consider an application for a partial abatement 27
pursuant to this section unless the Office has requested a letter of 28
acknowledgment of the request for the abatement from any affected 29
county, school district, city or town. 30
(b) Shall consider the level of health care benefits provided by 31
the business to its employees, the policy of paid family and medical 32
leave provided by the business to its employees, the projected 33
economic impact of the business and the projected tax revenue of 34
the business after deducting projected revenue from the abated 35
taxes. 36
(c) May, if the Office determines that such action is necessary: 37
(1) Approve an application for a partial abatement pursuant 38
to this section by a business that does not meet the requirements set 39
forth in paragraph (f), (g) or (h) of subsection 2; 40
(2) Make any of the requirements set forth in paragraphs (d) 41
to (h), inclusive, of subsection 2 more stringent; or 42
(3) Add additional requirements that a business must meet to 43
qualify for a partial abatement pursuant to this section. 44
– 29 –
- *SB403_R1*
(d) May require the agreement described in paragraph (b) of 1
subsection 2 to incorporate a plan by the business to provide work-2
based learning opportunities to pupils enrolled in public high 3
schools in this State, which may include, without limitation, a 4
proposal to offer work-based learning opportunities at the 5
business or to provide for employees of the business to serve as 6
full-time or part-time instructors for career and technical 7
education courses. 8
5. Notwithstanding any other provision of law, the Office of 9
Economic Development shall not approve an application for a 10
partial abatement pursuant to this section if: 11
(a) The applicant intends to locate or expand in a county in 12
which the rate of unemployment is 7 percent or more and the 13
average hourly wage that will be paid by the applicant to its new 14
employees in this State is less than 70 percent of the average 15
statewide hourly wage, as established by the Employment Security 16
Division of the Department of Employment, Training and 17
Rehabilitation on July 1 of each fiscal year. 18
(b) The applicant intends to locate or expand in a county in 19
which the rate of unemployment is less than 7 percent and the 20
average hourly wage that will be paid by the applicant to its new 21
employees in this State is less than 85 percent of the average 22
statewide hourly wage, as established by the Employment Security 23
Division of the Department of Employment, Training and 24
Rehabilitation on July 1 of each fiscal year. 25
(c) The applicant intends to locate in a county but has already 26
received a partial abatement pursuant to this section for locating that 27
business in that county. 28
(d) The applicant intends to expand in a county but has already 29
received a partial abatement pursuant to this section for expanding 30
that business in that county. 31
(e) The applicant has changed the name or identity of the 32
business to evade the provisions of paragraph (c) or (d). 33
6. Notwithstanding any other provision of law, if the Office of 34
Economic Development approves an application for a partial 35
abatement pursuant to this section, in determining the types of taxes 36
imposed on a new or expanded business for which the partial 37
abatement will be approved and the amount of the partial abatement: 38
(a) If the new or expanded business is located in a county in 39
which the rate of unemployment is 7 percent or more and the 40
average hourly wage that will be paid by the business to its new 41
employees in this State is less than 85 percent of the average 42
statewide hourly wage, as established by the Employment Security 43
Division of the Department of Employment, Training and 44
Rehabilitation on July 1 of each fiscal year, the Office shall not: 45
– 30 –
- *SB403_R1*
(1) Approve an abatement of the taxes imposed pursuant to 1
chapter 361 of NRS which exceeds 25 percent of the taxes on 2
personal property payable by the business each year. 3
(2) Approve an abatement of the taxes imposed pursuant to 4
chapter 363B of NRS which exceeds 25 percent of the amount of 5
tax otherwise due pursuant to NRS 363B.110. 6
(b) If the new or expanded business is located in a county in 7
which the rate of unemployment is less than 7 percent and the 8
average hourly wage that will be paid by the business to its new 9
employees in this State is less than 100 percent of the average 10
statewide hourly wage, as established by the Employment Security 11
Division of the Department of Employment, Training and 12
Rehabilitation on July 1 of each fiscal year, the Office shall not: 13
(1) Approve an abatement of the taxes imposed pursuant to 14
chapter 361 of NRS which exceeds 25 percent of the taxes on 15
personal property payable by the business each year. 16
(2) Approve an abatement of the taxes imposed pursuant to 17
chapter 363B of NRS which exceeds 25 percent of the amount of 18
tax otherwise due pursuant to NRS 363B.110. 19
7. If the Office of Economic Development approves an 20
application for a partial abatement pursuant to this section, the 21
Office shall immediately forward a certificate of eligibility for the 22
abatement to: 23
(a) The Department; 24
(b) The Nevada Tax Commission; and 25
(c) If the partial abatement is from the property tax imposed 26
pursuant to chapter 361 of NRS, the county treasurer. 27
8. An applicant for a partial abatement pursuant to this section 28
or an existing business whose partial abatement is in effect shall, 29
upon the request of the Executive Director of the Office of 30
Economic Development, furnish the Executive Director with copies 31
of all records necessary to verify that the applicant meets the 32
requirements of subsection 2. 33
9. If an applicant for a partial abatement pursuant to this 34
section fails to execute the agreement described in paragraph (b) of 35
subsection 2 within 1 year after the date on which the application 36
was received by the Office, the applicant shall not be approved for a 37
partial abatement pursuant to this section unless the applicant 38
submits a new application. 39
10. If a business whose partial abatement has been approved 40
pursuant to this section and is in effect ceases: 41
(a) To meet the requirements set forth in subsection 2; or 42
(b) Operation before the time specified in the agreement 43
described in paragraph (b) of subsection 2, 44
– 31 –
- *SB403_R1*
the business shall repay to the Department or, if the partial 1
abatement was from the property tax imposed pursuant to chapter 2
361 of NRS, to the county treasurer, the amount of the partial 3
abatement that was allowed pursuant to this section before the 4
failure of the business to comply unless the Nevada Tax 5
Commission determines that the business has substantially complied 6
with the requirements of this section. Except as otherwise provided 7
in NRS 360.232 and 360.320, the business shall, in addition to the 8
amount of the partial abatement required to be paid pursuant to this 9
subsection, pay interest on the amount due at the rate most recently 10
established pursuant to NRS 99.040 for each month, or portion 11
thereof, from the last day of the month following the period for 12
which the payment would have been made had the partial abatement 13
not been approved until the date of payment of the tax. 14
11. A county treasurer: 15
(a) Shall deposit any money that he or she receives pursuant to 16
subsection 10 in one or more of the funds established by a local 17
government of the county pursuant to NRS 354.6113 or 354.6115; 18
and 19
(b) May use the money deposited pursuant to paragraph (a) only 20
for the purposes authorized by NRS 354.6113 and 354.6115. 21
12. The Office of Economic Development may adopt such 22
regulations as the Office of Economic Development determines to 23
be necessary to carry out the provisions of this section and 24
NRS 360.755. 25
13. The Nevada Tax Commission: 26
(a) Shall adopt regulations regarding: 27
(1) The capital investment that a new business must make to 28
meet the requirement set forth in paragraph (f) or (g) of subsection 29
2; and 30
(2) Any security that a business is required to post to qualify 31
for a partial abatement pursuant to this section. 32
(b) May adopt such other regulations as the Nevada Tax 33
Commission determines to be necessary to carry out the provisions 34
of this section and NRS 360.755. 35
14. An applicant for a partial abatement pursuant to this section 36
who is aggrieved by a final decision of the Office of Economic 37
Development may petition for judicial review in the manner 38
provided in chapter 233B of NRS. 39
15. For the purposes of this section, an employee is a “full-time 40
employee” if he or she is in a permanent position of employment 41
and works an average of 30 hours per week during the applicable 42
period set forth in subsection 2. 43
– 32 –
- *SB403_R1*
Sec. 15. NRS 360.753 is hereby amended to read as follows: 1
360.753 1. An owner of a business or a person who intends 2
to locate or expand a business in this State may apply to the Office 3
of Economic Development pursuant to this section for a partial 4
abatement of one or more of: 5
(a) The personal property taxes imposed on an aircraft and the 6
personal property used to own, operate, manufacture, service, 7
maintain, test, repair, overhaul or assemble an aircraft or any 8
component of an aircraft; and 9
(b) The local sales and use taxes imposed on the purchase of 10
tangible personal property used to operate, manufacture, service, 11
maintain, test, repair, overhaul or assemble an aircraft or any 12
component of an aircraft. 13
2. Notwithstanding the provisions of any law to the contrary 14
and except as otherwise provided in subsections 3 and 4, the Office 15
of Economic Development shall approve an application for a partial 16
abatement if the Office makes the following determinations: 17
(a) Not later than 1 year after the date on which the application 18
was received by the Office, the applicant has executed an agreement 19
with the Office which: 20
(1) Complies with the requirements of NRS 360.755; 21
(2) States the date on which the abatement becomes 22
effective, as agreed to by the applicant and the Office, which must 23
not be earlier than the date on which the Office received the 24
application and not later than 1 year after the date on which the 25
Office approves the application; 26
(3) States that the business will, after the date on which a 27
certificate of eligibility for the partial abatement is issued pursuant 28
to subsection 5, continue in operation in this State for a period 29
specified by the Office, which must be not less than 5 years, and 30
will continue to meet the eligibility requirements set forth in this 31
subsection; and 32
(4) Binds any successor in interest of the applicant for the 33
specified period; 34
(b) The business is registered pursuant to the laws of this State 35
or the applicant commits to obtaining a valid business license and all 36
other permits required by the county, city or town in which the 37
business operates; 38
(c) The business owns, operates, manufactures, services, 39
maintains, tests, repairs, overhauls or assembles an aircraft or any 40
component of an aircraft; 41
(d) The average hourly wage that will be paid by the business to 42
its employees in this State during the period of partial abatement is 43
not less than 100 percent of the average statewide hourly wage as 44
established by the Employment Security Division of the Department 45
– 33 –
- *SB403_R1*
of Employment, Training and Rehabilitation on July 1 of each fiscal 1
year; 2
(e) The business will, by the eighth calendar quarter following 3
the calendar quarter in which the abatement becomes effective, offer 4
a health insurance plan for all employees that includes an option for 5
health insurance coverage for dependents of the employees, and the 6
health care benefits the business offers to its employees in this State 7
will meet the minimum requirements for health care benefits 8
established by the Office; 9
(f) If the business is: 10
(1) A new business, that it will have five or more full-time 11
employees on the payroll of the business within 1 year after 12
receiving its certificate of eligibility for a partial abatement; or 13
(2) An existing business, that it will increase its number of 14
full-time employees on the payroll of the business in this State by 3 15
percent or three employees, whichever is greater, within 1 year after 16
receiving its certificate of eligibility for a partial abatement; 17
(g) The business meets at least one of the following 18
requirements: 19
(1) The business will make a new capital investment of at 20
least $250,000 in this State within 1 year after receiving its 21
certificate of eligibility for a partial abatement; 22
(2) The business will maintain and possess in this State 23
tangible personal property having a value of not less than 24
$5,000,000 during the period of partial abatement; 25
(3) The business develops, refines or owns a patent or other 26
intellectual property, or has been issued a type certificate by the 27
Federal Aviation Administration pursuant to 14 C.F.R. Part 21; and 28
(h) If the application is for the partial abatement of the taxes 29
imposed by the Local School Support Tax Law, the application has 30
been approved by a vote of at least two-thirds of the members of the 31
Board of Economic Development created by NRS 231.033. 32
3. The Office of Economic Development: 33
(a) Shall approve or deny an application submitted pursuant to 34
this section and notify the applicant of its decision not later than 45 35
days after receiving the application. 36
(b) Must not: 37
(1) Consider an application for a partial abatement unless the 38
Office has requested a letter of acknowledgment of the request for 39
the partial abatement from any affected county, school district, city 40
or town and has complied with the requirements of NRS 360.757; or 41
(2) Approve a partial abatement for any applicant for a 42
period of more than 10 years. 43
(c) Notwithstanding the provisions of subsection 2, may 44
require the agreement described in paragraph (a) of subsection 2 45
– 34 –
- *SB403_R1*
to incorporate a plan by the business to provide work-based 1
learning opportunities to pupils enrolled in public high schools in 2
this State, which may include, without limitation, a proposal to 3
offer work-based learning opportunities at the business or to 4
provide for employees of the business to serve as full-time or part-5
time instructors for career and technical education courses. 6
4. The Office of Economic Development must not approve a 7
partial abatement of personal property taxes for a business whose 8
physical property is collectively valued and centrally assessed 9
pursuant to NRS 361.320 and 361.3205. 10
5. If the Office of Economic Development approves an 11
application for a partial abatement pursuant to this section, the 12
Office shall immediately forward a certificate of eligibility for the 13
partial abatement to: 14
(a) The Department; 15
(b) The Nevada Tax Commission; and 16
(c) If the partial abatement is from personal property taxes, the 17
appropriate county treasurer. 18
6. An applicant for a partial abatement pursuant to this section 19
or an existing business whose partial abatement is in effect shall, 20
upon the request of the Executive Director of the Office of 21
Economic Development, furnish the Executive Director with copies 22
of all records necessary to verify that the applicant meets the 23
requirements of subsection 2. 24
7. If an applicant for a partial abatement pursuant to this 25
section fails to execute the agreement described in paragraph (a) of 26
subsection 2 within 1 year after the date on which the application 27
was received by the Office, the applicant shall not be approved for a 28
partial abatement pursuant to this section unless the applicant 29
submits a new application. 30
8. If a business whose partial abatement has been approved 31
pursuant to this section and whose partial abatement is in effect 32
ceases: 33
(a) To meet the requirements set forth in subsection 2; or 34
(b) Operation before the time specified in the agreement 35
described in paragraph (a) of subsection 2, 36
the business shall repay to the Department or, if the partial 37
abatement was from personal property taxes, to the appropriate 38
county treasurer, the amount of the partial abatement that was 39
allowed pursuant to this section before the failure of the business to 40
comply unless the Nevada Tax Commission determines that the 41
business has substantially complied with the requirements of this 42
section. Except as otherwise provided in NRS 360.232 and 360.320, 43
the business shall, in addition to the amount of the partial abatement 44
required to be repaid pursuant to this subsection, pay interest on the 45
– 35 –
- *SB403_R1*
amount due at the rate most recently established pursuant to NRS 1
99.040 for each month, or portion thereof, from the last day of the 2
month following the period for which the payment would have been 3
made had the partial abatement not been approved until the date of 4
payment of the tax. 5
9. The Office of Economic Development may adopt such 6
regulations as the Office determines to be necessary to carry out the 7
provisions of this section. 8
10. The Nevada Tax Commission may adopt such regulations 9
as the Commission determines are necessary to carry out the 10
provisions of this section. 11
11. An applicant for a partial abatement who is aggrieved by a 12
final decision of the Office of Economic Development may petition 13
a court of competent jurisdiction to review the decision in the 14
manner provided in chapter 233B of NRS. 15
12. As used in this section: 16
(a) “Aircraft” means any fixed-wing, rotary-wing or unmanned 17
aerial vehicle. 18
(b) “Component of an aircraft” means any: 19
(1) Element that makes up the physical structure of an 20
aircraft, or is affixed thereto; 21
(2) Mechanical, electrical or other system of an aircraft, 22
including, without limitation, any component thereof; and 23
(3) Raw material or processed material, part, machinery, 24
tool, chemical, gas or equipment used to operate, manufacture, 25
service, maintain, test, repair, overhaul or assemble an aircraft or 26
component of an aircraft. 27
(c) “Full-time employee” means a person who is in a permanent 28
position of employment and works an average of 30 hours per week 29
during the applicable period set forth in subparagraph (3) of 30
paragraph (a) of subsection 2. 31
(d) “Local sales and use taxes” means any taxes imposed on the 32
gross receipts of any retailer from the sale of tangible personal 33
property sold at retail, or stored, used or otherwise consumed, in any 34
political subdivision of this State, except the taxes imposed by the 35
Sales and Use Tax Act. 36
(e) “Personal property taxes” means any taxes levied on 37
personal property by the State or a local government pursuant to 38
chapter 361 of NRS. 39
Sec. 16. NRS 360.754 is hereby amended to read as follows: 40
360.754 1. A person who intends to locate or expand a data 41
center in this State may apply to the Office of Economic 42
Development pursuant to this section for a partial abatement of one 43
or more of the taxes imposed on the new or expanded data center 44
pursuant to chapter 361 or 374 of NRS. 45
– 36 –
- *SB403_R1*
2. The Office of Economic Development shall approve an 1
application for a partial abatement pursuant to this section if the 2
Office makes the following determinations: 3
(a) The application is consistent with the State Plan for 4
Economic Development developed by the Executive Director of the 5
Office of Economic Development pursuant to subsection 2 of NRS 6
231.053 and any guidelines adopted by the Executive Director of the 7
Office to implement the State Plan for Economic Development. 8
(b) Not later than 1 year after the date on which the application 9
was received by the Office, the applicant has executed an agreement 10
with the Office of Economic Development which must: 11
(1) Comply with the requirements of NRS 360.755; 12
(2) State the date on which the abatement becomes effective, 13
as agreed to by the applicant and the Office of Economic 14
Development, which must not be earlier than the date on which the 15
Office received the application and not later than 1 year after the 16
date on which the Office approves the application; 17
(3) State that the data center will, after the date on which the 18
abatement becomes effective, continue in operation in this State for 19
a period specified by the Office of Economic Development, which 20
must be at least 10 years, and will continue to meet the eligibility 21
requirements set forth in this subsection; and 22
(4) Bind the successors in interest of the applicant for the 23
specified period. 24
(c) The applicant is registered pursuant to the laws of this State 25
or the applicant commits to obtain a valid business license and all 26
other permits required by each county, city or town in which the 27
data center operates. 28
(d) If the applicant is seeking a partial abatement for a period of 29
not more than 10 years, the applicant meets the following 30
requirements: 31
(1) The data center will, by not later than the date that is 5 32
years after the date on which the abatement becomes effective, have 33
or have added 10 or more full-time employees who are residents of 34
Nevada and who will be employed at the data center and will 35
continue to employ 10 or more full-time employees who are 36
residents of Nevada at the data center until at least the date which is 37
10 years after the date on which the abatement becomes effective. 38
(2) Establishing or expanding the data center will require the 39
data center or any combination of the data center and one or more 40
colocated businesses to make in each county in this State in which 41
the data center is located, by not later than the date which is 5 years 42
after the date on which the abatement becomes effective, a 43
cumulative capital investment of at least $25,000,000 in capital 44
assets that will be used or located at the data center. 45
– 37 –
- *SB403_R1*
(3) The average hourly wage that will be paid by the data 1
center to its employees in this State is at least 100 percent of the 2
average statewide hourly wage as established by the Employment 3
Security Division of the Department of Employment, Training and 4
Rehabilitation on July 1 of each fiscal year and: 5
(I) The data center will, by not later than the date which is 6
2 years after the date on which the abatement becomes effective, 7
provide a health insurance plan for all employees employed at the 8
data center that includes an option for health insurance coverage for 9
dependents of the employees; and 10
(II) The health care benefits provided to employees 11
employed at the data center will meet the minimum requirements for 12
health care benefits established by the Office of Economic 13
Development by regulation pursuant to subsection 13. 14
(4) At least 50 percent of the employees engaged in the 15
construction of the data center are residents of Nevada, unless 16
waived by the Executive Director of the Office of Economic 17
Development upon proof satisfactory to the Executive Director of 18
the Office of Economic Development that there is an insufficient 19
number of residents of Nevada available and qualified for such 20
employment. 21
(e) If the applicant is seeking a partial abatement for a period of 22
10 years or more but not more than 20 years, the applicant meets the 23
following requirements: 24
(1) The data center will, by not later than the date that is 5 25
years after the date on which the abatement becomes effective, have 26
or have added 50 or more full-time employees who are residents of 27
Nevada and who will be employed at the data center and will 28
continue to employ 50 or more full-time employees who are 29
residents of Nevada at the data center until at least the date which is 30
20 years after the date on which the abatement becomes effective. 31
(2) Establishing or expanding the data center will require the 32
data center or any combination of the data center and one or more 33
colocated businesses to make in each county in this State in which 34
the data center is located, by not later than the date which is 5 years 35
after the date on which the abatement becomes effective, a 36
cumulative capital investment of at least $100,000,000 in capital 37
assets that will be used or located at the data center. 38
(3) The average hourly wage that will be paid by the data 39
center to its employees in this State is at least 100 percent of the 40
average statewide hourly wage as established by the Employment 41
Security Division of the Department of Employment, Training and 42
Rehabilitation on July 1 of each fiscal year and: 43
(I) The data center will, by not later than the date which is 44
2 years after the date on which the abatement becomes effective, 45
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provide a health insurance plan for all employees employed at the 1
data center that includes an option for health insurance coverage for 2
dependents of the employees; and 3
(II) The health care benefits provided to employees 4
employed at the data center will meet the minimum requirements for 5
health care benefits established by the Office of Economic 6
Development by regulation pursuant to subsection 13. 7
(4) At least 50 percent of the employees engaged in the 8
construction of the data center are residents of Nevada, unless 9
waived by the Executive Director of the Office of Economic 10
Development upon proof satisfactory to the Executive Director of 11
the Office of Economic Development that there is an insufficient 12
number of residents of Nevada available and qualified for such 13
employment. 14
(f) The applicant has provided in the application an estimate of 15
the total number of new employees which the data center anticipates 16
hiring in this State if the Office of Economic Development approves 17
the application. 18
(g) If the applicant is seeking a partial abatement of the taxes 19
imposed by the Local School Support Tax Law, the application has 20
been approved by a vote of at least two-thirds of the members of the 21
Board of Economic Development created by NRS 231.033. 22
3. Notwithstanding the provisions of subsection 2, the Office 23
of Economic Development: 24
(a) Shall not consider an application for a partial abatement 25
pursuant to this section unless the Office of Economic Development 26
has requested a letter of acknowledgment of the request for the 27
abatement from each affected county, school district, city or town. 28
(b) Shall consider the level of health care benefits provided to 29
employees employed at the data center, the projected economic 30
impact of the data center and the projected tax revenue of the data 31
center after deducting projected revenue from the abated taxes. 32
(c) May, if the Office of Economic Development determines 33
that such action is necessary: 34
(1) Approve an application for a partial abatement pursuant 35
to this section by a data center that does not meet the requirements 36
set forth in paragraph (d) or (e) of subsection 2; 37
(2) Make the requirements set forth in paragraphs (d) and (e) 38
of subsection 2 more stringent; or 39
(3) Add additional requirements that an applicant must meet 40
to qualify for a partial abatement pursuant to this section. 41
(d) May require the agreement described in paragraph (b) of 42
subsection 2 to incorporate a plan by the data center to provide 43
work-based learning opportunities to pupils enrolled in public 44
high schools in this State, which may include, without limitation, a 45
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proposal to offer work-based learning opportunities at the data 1
center or to provide for employees of the data center to serve as 2
full-time or part-time instructions or career and technical 3
education courses. 4
4. If the Office of Economic Development approves an 5
application for a partial abatement pursuant to this section, the 6
Office shall immediately forward a certificate of eligibility for the 7
abatement to: 8
(a) The Department; 9
(b) The Nevada Tax Commission; and 10
(c) If the partial abatement is from the property tax imposed 11
pursuant to chapter 361 of NRS, the county treasurer of each county 12
in which the data center is or will be located. 13
5. If the Office of Economic Development approves an 14
application for a partial abatement pursuant to this section, the 15
Office may also approve a partial abatement of taxes for each 16
colocated business that enters into a contract to use or occupy, for a 17
period of at least 2 years, all or a portion of the new or expanded 18
data center. Each such colocated business shall obtain a state 19
business license issued by the Secretary of State. The percentage 20
amount of a partial abatement approved for a colocated business 21
pursuant to this subsection must not exceed the percentage amount 22
of the partial abatement approved for the data center. The duration 23
of a partial abatement approved for a colocated business pursuant to 24
this subsection must not exceed the duration of the contract or 25
contracts entered into between the colocated business and the data 26
center, including the duration of any contract or contracts extended 27
or renewed by the parties. If a colocated business ceases to meet the 28
requirements set forth in this subsection, the colocated business 29
shall repay the amount of the abatement that was allowed in the 30
same manner in which a data center is required by subsection 8 to 31
repay the Department or a county treasurer. If a data center ceases to 32
meet the requirements of subsection 2 or ceases operation before the 33
time specified in the agreement described in paragraph (b) of 34
subsection 2, any partial abatement approved for a colocated 35
business ceases to be in effect, but the colocated business is not 36
required to repay the amount of the abatement that was allowed 37
before the date on which the abatement ceases to be in effect. A data 38
center shall provide the Executive Director of the Office and the 39
Department with a list of the colocated businesses that are qualified 40
to receive a partial abatement pursuant to this subsection and shall 41
notify the Executive Director within 30 days after any change to the 42
list. The Executive Director shall provide the list and any updates to 43
the list to the Department and the county treasurer of each affected 44
county. 45
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6. An applicant for a partial abatement pursuant to this section 1
or a data center whose partial abatement is in effect shall, upon the 2
request of the Executive Director of the Office of Economic 3
Development, furnish the Executive Director with copies of all 4
records necessary to verify that the applicant meets the requirements 5
of subsection 2. 6
7. If an applicant for a partial abatement pursuant to this 7
section fails to execute the agreement described in paragraph (b) of 8
subsection 2 within 1 year after the date on which the application 9
was received by the Office, the applicant shall not be approved for a 10
partial abatement pursuant to this section unless the applicant 11
submits a new application. 12
8. If a data center whose partial abatement has been approved 13
pursuant to this section and is in effect ceases: 14
(a) To meet the requirements set forth in subsection 2; or 15
(b) Operation before the time specified in the agreement 16
described in paragraph (b) of subsection 2, 17
the data center shall repay to the Department or, if the partial 18
abatement was from the property tax imposed pursuant to chapter 19
361 of NRS, to the county treasurer, the amount of the partial 20
abatement that was allowed pursuant to this section before the 21
failure of the data center to comply unless the Nevada Tax 22
Commission determines that the data center has substantially 23
complied with the requirements of this section. Except as otherwise 24
provided in NRS 360.232 and 360.320, the data center shall, in 25
addition to the amount of the partial abatement required to be repaid 26
pursuant to this subsection, pay interest on the amount due at the 27
rate most recently established pursuant to NRS 99.040 for each 28
month, or portion thereof, from the last day of the month following 29
the period for which the payment would have been made had the 30
partial abatement not been approved until the date of payment of the 31
tax. 32
9. A county treasurer: 33
(a) Shall deposit any money that he or she receives pursuant to 34
subsection 5 or 8 in one or more of the funds established by a local 35
government of the county pursuant to NRS 354.6113 or 354.6115; 36
and 37
(b) May use the money deposited pursuant to paragraph (a) only 38
for the purposes authorized by NRS 354.6113 and 354.6115. 39
10. An applicant for a partial abatement pursuant to this section 40
who is aggrieved by a final decision of the Office of Economic 41
Development may petition for judicial review in the manner 42
provided in chapter 233B of NRS. 43
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11. For an employee to be considered a resident of Nevada for 1
the purposes of this section, a data center must maintain the 2
following documents in the personnel file of the employee: 3
(a) A copy of the current and valid Nevada driver’s license of 4
the employee or a current and valid identification card for the 5
employee issued by the Department of Motor Vehicles; 6
(b) If the employee is a registered owner of one or more motor 7
vehicles in Nevada, a copy of the current motor vehicle registration 8
of at least one of those vehicles; 9
(c) Proof that the employee is a full-time employee; and 10
(d) Proof that the employee is covered by the health insurance 11
plan which the data center is required to provide pursuant to sub-12
subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 13
2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of 14
subsection 2. 15
12. For the purpose of obtaining from the Executive Director 16
of the Office of Economic Development any waiver of the 17
requirements set forth in subparagraph (4) of paragraph (d) of 18
subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a 19
data center must submit to the Executive Director of the Office of 20
Economic Development written documentation of the efforts to 21
meet the requirements and documented proof that an insufficient 22
number of Nevada residents is available and qualified for 23
employment. 24
13. The Office of Economic Development: 25
(a) Shall adopt regulations relating to the minimum level of 26
health care benefits that a data center must provide to its employees 27
to meet the requirement set forth in paragraph (d) or (e) of 28
subsection 2; 29
(b) May adopt such other regulations as the Office determines to 30
be necessary to carry out the provisions of this section; and 31
(c) Shall not approve any application for a partial abatement 32
submitted pursuant to this section which is received on or after 33
January 1, 2036. 34
14. The Nevada Tax Commission: 35
(a) Shall adopt regulations regarding: 36
(1) The capital investment necessary to meet the requirement 37
set forth in paragraph (d) or (e) of subsection 2; and 38
(2) Any security that a data center is required to post to 39
qualify for a partial abatement pursuant to this section. 40
(b) May adopt such other regulations as the Nevada Tax 41
Commission determines to be necessary to carry out the provisions 42
of this section. 43
15. As used in this section, unless the context otherwise 44
requires: 45
– 42 –
- *SB403_R1*
(a) “Colocated business” means a person who enters into a 1
contract with a data center that is qualified to receive an abatement 2
pursuant to this section to use or occupy all or part of the data 3
center. 4
(b) “Data center” means one or more buildings located at one or 5
more physical locations in this State which house a group of 6
networked server computers for the purpose of centralizing the 7
storage, management and dissemination of data and information 8
pertaining to one or more businesses and includes any modular or 9
preassembled components, associated telecommunications and 10
storage systems and, if the data center includes more than one 11
building or physical location, any network or connection between 12
such buildings or physical locations. 13
(c) “Full-time employee” means a person who is in a permanent 14
position of employment and works an average of 30 hours per week 15
during the applicable period set forth in paragraph (d) or (e) of 16
subsection 2. 17
Sec. 17. NRS 360.759 is hereby amended to read as follows: 18
360.759 1. A production company that produces a qualified 19
production in this State in whole or in part may apply to the Office 20
of Economic Development for a certificate of eligibility for 21
transferable tax credits for any qualified direct production 22
expenditures. The transferable tax credits may be applied to: 23
(a) Any tax imposed by chapters 363A and 363B of NRS; 24
(b) The gaming license fees imposed by the provisions of 25
NRS 463.370; 26
(c) Any tax imposed pursuant to chapter 680B of NRS; or 27
(d) Any combination of the fees and taxes described in 28
paragraphs (a), (b) and (c). 29
2. The Office may approve an application for a certificate of 30
eligibility for transferable tax credits if the Office finds that the 31
production company producing the qualified production qualifies for 32
the transferable tax credits pursuant to subsection 3. If the Office 33
approves the application, the Office shall calculate the estimated 34
amount of the transferable tax credits pursuant to NRS 360.7592, 35
360.7593 and 360.7594. 36
3. To be eligible for transferable tax credits pursuant to this 37
section, a production company must: 38
(a) Submit an application that meets the requirements of 39
subsection 4; 40
(b) Provide proof satisfactory to the Office that the qualified 41
production is in the economic interest of the State; 42
(c) Provide proof satisfactory to the Office that 70 percent or 43
more of the funding for the qualified production has been obtained; 44
– 43 –
- *SB403_R1*
(d) Provide proof satisfactory to the Office that at least 60 1
percent of the direct production expenditures for: 2
(1) Preproduction; 3
(2) Production; and 4
(3) If any direct production expenditures for postproduction 5
will be incurred in this State, postproduction, 6
of the qualified production will be incurred in this State as 7
qualified direct production expenditures; 8
(e) Not later than 270 days after the completion of principal 9
photography of the qualified production or, if any direct production 10
expenditures for postproduction will be incurred in this State, not 11
later than 270 days after the completion of postproduction, unless 12
the Office agrees to extend this period by not more than 90 days, 13
provide the Office with an audit of the qualified production that 14
includes an itemized report of qualified direct production 15
expenditures which: 16
(1) Shows that the qualified production incurred qualified 17
direct production expenditures of $500,000 or more; and 18
(2) Is certified by an independent certified public accountant 19
in this State who is approved by the Office; 20
(f) Pay the cost of the audit required by paragraph (e); 21
(g) Enter into a written agreement with the Office that requires 22
the production company to include: 23
(1) In the end screen credits of the qualified production, a 24
logo of this State provided by the Office which indicates that the 25
qualified production was filmed or otherwise produced in Nevada; 26
or 27
(2) If the qualified production does not have end screen 28
credits, another acknowledgment in the final version of the qualified 29
production which indicates that the qualified production was filmed 30
or otherwise produced in Nevada; and 31
(h) Meet any other requirements prescribed by regulation 32
pursuant to this section. 33
4. An application submitted pursuant to subsection 3 must 34
contain: 35
(a) A script, storyboard or synopsis of the qualified production; 36
(b) The names of the production company, producer, director 37
and proposed cast; 38
(c) An estimated timeline to complete the qualified production; 39
(d) A summary of the budgeted expenditures for the entire 40
production, including projected expenditures to be incurred outside 41
of Nevada; 42
(e) Details regarding the financing of the project, including, 43
without limitation, any information relating to a binding financing 44
– 44 –
- *SB403_R1*
commitment, loan application, commitment letter or investment 1
letter; 2
(f) An insurance certificate, binder or quote for general liability 3
insurance of $1,000,000 or more; 4
(g) The business address of the production company; 5
(h) Proof that the qualified production meets any applicable 6
requirements relating to workers’ compensation insurance; 7
(i) Proof that the production company has secured all licenses 8
and registrations required to do business in each location in this 9
State at which the qualified production will be produced; and 10
(j) Any other information required by regulations adopted by the 11
Office pursuant to subsection [8.] 9. 12
5. In addition to meeting the requirements set forth in 13
subsection 3, the Office may require a production company to 14
enter into an agreement with the Office that incorporates a plan 15
by the production company to provide work-based learning 16
opportunities to pupils enrolled in public high schools in this 17
State, which may include, without limitation, a proposal to offer 18
work-based learning opportunities with the qualified production 19
or to provide for employees of the production company to serve as 20
full-time or part-time instructors for career and technical 21
education courses. 22
6. If the Office approves an application for a certificate of 23
eligibility for transferable tax credits pursuant to this section, the 24
Office shall immediately forward a copy of the certificate of 25
eligibility which identifies the estimated amount of the tax credits 26
available pursuant to NRS 360.7592 to: 27
(a) The applicant; 28
(b) The Department; and 29
(c) The Nevada Gaming Control Board. 30
[6.] 7. Within 60 business days after receipt of an audit 31
provided by a production company pursuant to paragraph (e) of 32
subsection 3 and any other accountings or other information 33
required by the Office, the Office shall determine whether to certify 34
the audit and make a final determination of whether a certificate of 35
transferable tax credits will be issued. If the Office certifies the 36
audit, determines that all other requirements for the transferable tax 37
credits have been met and determines that a certificate of 38
transferable tax credits will be issued, the Office shall notify the 39
production company that the transferable tax credits will be issued. 40
Within 30 days after the receipt of the notice, the production 41
company shall make an irrevocable declaration of the amount of 42
transferable tax credits that will be applied to each fee or tax set 43
forth in subsection 1, thereby accounting for all of the credits which 44
will be issued. Upon receipt of the declaration, the Office shall issue 45
– 45 –
- *SB403_R1*
to the production company a certificate of transferable tax credits in 1
the amount approved by the Office for the fees or taxes included in 2
the declaration of the production company. The production company 3
shall notify the Office upon transferring any of the transferable tax 4
credits. The Office shall notify the Department and the Nevada 5
Gaming Control Board of all transferable tax credits issued, 6
segregated by each fee or tax set forth in subsection 1, and the 7
amount of any transferable tax credits transferred. 8
[7.] 8. An applicant for transferable tax credits pursuant to this 9
section shall, upon the request of the Executive Director of the 10
Office, furnish the Executive Director with copies of all records 11
necessary to verify that the applicant meets the requirements of 12
subsection 3. 13
[8.] 9. The Office: 14
(a) Shall adopt regulations prescribing: 15
(1) Any additional requirements to receive transferable tax 16
credits; 17
(2) Any additional qualified expenditures or production costs 18
that may serve as the basis for transferable tax credits pursuant to 19
NRS 360.7591; 20
(3) Any additional information that must be included with an 21
application pursuant to subsection 4; 22
(4) The application review process; 23
(5) Any type of qualified production which, due to obscene 24
or sexually explicit material, is not eligible for transferable tax 25
credits; and 26
(6) The requirements for notice pursuant to NRS 360.7595; 27
and 28
(b) May adopt any other regulations that are necessary to carry 29
out the provisions of NRS 360.758 to 360.7598, inclusive. 30
[9.] 10. The Nevada Tax Commission and the Nevada Gaming 31
Commission: 32
(a) Shall adopt regulations prescribing the manner in which 33
transferable tax credits will be administered. 34
(b) May adopt any other regulations that are necessary to carry 35
out the provisions of NRS 360.758 to 360.7598, inclusive. 36
Sec. 18. NRS 360.888 is hereby amended to read as follows: 37
360.888 “Qualified project” means a project which the Office 38
of Economic Development determines meets all the requirements 39
set forth in subsections 2, 3, [5 and] 4, 6 and 7 of NRS 360.889. 40
Sec. 19. NRS 360.889 is hereby amended to read as follows: 41
360.889 1. On behalf of a project, the lead participant in the 42
project may apply to the Office of Economic Development for: 43
(a) A certificate of eligibility for transferable tax credits which 44
may be applied to: 45
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- *SB403_R1*
(1) Any tax imposed by chapters 363A and 363B of NRS; 1
(2) The gaming license fees imposed by the provisions of 2
NRS 463.370; 3
(3) Any tax imposed by chapter 680B of NRS; or 4
(4) Any combination of the fees and taxes described in 5
subparagraphs (1), (2) and (3). 6
(b) A partial abatement of property taxes, employer excise taxes 7
or local sales and use taxes, or any combination of any of those 8
taxes. 9
2. For a project to be eligible for the transferable tax credits 10
described in paragraph (a) of subsection 1 and the partial abatement 11
of the taxes described in paragraph (b) of subsection 1, the lead 12
participant in the project must, on behalf of the project: 13
(a) Submit an application that meets the requirements of 14
subsection [5;] 6; 15
(b) Provide documentation satisfactory to the Office that 16
approval of the application would promote the economic 17
development of this State and aid the implementation of the State 18
Plan for Economic Development developed by the Executive 19
Director of the Office pursuant to subsection 2 of NRS 231.053; 20
(c) Provide documentation satisfactory to the Office that the 21
participants in the project collectively will make a total new capital 22
investment of at least $1 billion in this State within the 10-year 23
period immediately following approval of the application; 24
(d) Provide documentation satisfactory to the Office that the 25
participants in the project are engaged in a common business 26
purpose or industry; 27
(e) Provide documentation satisfactory to the Office that the 28
place of business of each participant is or will be located within the 29
geographic boundaries of the project site or sites; 30
(f) Provide documentation satisfactory to the Office that each 31
participant in the project is registered pursuant to the laws of this 32
State or commits to obtaining a valid business license and all other 33
permits required by the county, city or town in which the project 34
operates; 35
(g) Provide documentation satisfactory to the Office of the 36
number of employees engaged in the construction of the project; 37
(h) Provide documentation satisfactory to the Office of the 38
number of qualified employees employed or anticipated to be 39
employed at the project by the participants; 40
(i) Provide documentation satisfactory to the Office that each 41
employer engaged in the construction of the project provides a plan 42
of health insurance and that each employee engaged in the 43
construction of the project is offered coverage under the plan of 44
health insurance provided by his or her employer; 45
– 47 –
- *SB403_R1*
(j) Provide documentation satisfactory to the Office that each 1
participant in the project provides a plan of health insurance and that 2
each employee employed at the project by each participant is 3
offered coverage under the plan of health insurance provided by his 4
or her employer; 5
(k) Provide documentation satisfactory to the Office that at least 6
50 percent of the employees engaged in construction of the project 7
and 50 percent of the employees employed at the project are 8
residents of Nevada, unless waived by the Executive Director of the 9
Office upon proof satisfactory to the Executive Director of the 10
Office that there is an insufficient number of Nevada residents 11
available and qualified for such employment; 12
(l) Agree to provide the Office with a full compliance audit of 13
the participants in the project at the end of each fiscal year which: 14
(1) Shows the amount of money invested in this State by 15
each participant in the project; 16
(2) Shows the number of employees engaged in the 17
construction of the project and the number of those employees who 18
are residents of Nevada; 19
(3) Shows the number of employees employed at the project 20
by each participant and the number of those employees who are 21
residents of Nevada; and 22
(4) Is certified by an independent certified public accountant 23
in this State who is approved by the Office; 24
(m) Pay the cost of the audit required by paragraph (l); 25
(n) Enter into an agreement with the governing body of the city 26
or county in which the qualified project is located that: 27
(1) Requires the lead participant to pay the cost of any 28
engineering or design work necessary to determine the cost of 29
infrastructure improvements required to be made by the governing 30
body pursuant to an economic development financing proposal 31
approved pursuant to NRS 360.990; and 32
(2) Requires the lead participant to seek reimbursement for 33
any costs paid by the lead participant pursuant to subparagraph (1) 34
from the proceeds of bonds issued pursuant to NRS 360.991; and 35
(o) Meet any other requirements prescribed by the Office. 36
3. In addition to meeting the requirements set forth in 37
subsection 2, for a project located on more than one site in this State 38
to be eligible for the partial abatement of the taxes described in 39
paragraph (b) of subsection 1, the lead participant must, on behalf of 40
the project, submit an application that meets the requirements of 41
subsection [5] 6 on or before June 30, 2019, and provide 42
documentation satisfactory to the Office that: 43
(a) The initial project will have a total of 500 or more full-time 44
employees employed at the site of the initial project and the average 45
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- *SB403_R1*
hourly wage that will be paid to employees of the initial project in 1
this State is at least 120 percent of the average statewide hourly 2
wage as established by the Employment Security Division of the 3
Department of Employment, Training and Rehabilitation on July 1 4
of each fiscal year; 5
(b) Each participant in the project must be a subsidiary or 6
affiliate of the lead participant; and 7
(c) Each participant offers primary jobs and: 8
(1) Except as otherwise provided in subparagraph (2), 9
satisfies the requirements of paragraph (f) or (g) of subsection 2 of 10
NRS 360.750, regardless of whether the business is a new business 11
or an existing business; and 12
(2) If a participant owns, operates, manufactures, services, 13
maintains, tests, repairs, overhauls or assembles an aircraft or any 14
component of an aircraft, that the participant satisfies the applicable 15
requirements of paragraph (f) or (g) of subsection 2 of 16
NRS 360.753. 17
If any participant is a data center, as defined in NRS 360.754, any 18
capital investment by that participant must not be counted in 19
determining whether the participants in the project collectively will 20
make a total new capital investment of at least $1 billion in this 21
State within the 10-year period immediately following approval of 22
the application, as required by paragraph (c) of subsection 2. 23
4. In addition to meeting the requirements set forth in 24
subsection 2, the Office may require the lead participant in the 25
project, on behalf of the project, to enter into an agreement with 26
the Office that incorporates a plan by the participants in the 27
project to provide work-based learning opportunities to pupils 28
enrolled in public high schools in this State, which may include, 29
without limitation, a proposal to offer work-based learning 30
opportunities at the project or to provide for employees of the 31
participants to serve as full-time or part-time instructors for career 32
and technical education courses. 33
5. In addition to meeting the requirements set forth in 34
subsection 2, a project is eligible for the transferable tax credits 35
described in paragraph (a) of subsection 1 only if the Interim 36
Finance Committee approves a written request for the issuance of 37
the transferable tax credits. Such a request may only be submitted 38
by the Office and only after the Office has approved the application 39
submitted for the project pursuant to subsection 2. The Interim 40
Finance Committee may approve a request submitted pursuant to 41
this subsection only if the Interim Finance Committee determines 42
that approval of the request: 43
(a) Will not impede the ability of the Legislature to carry out its 44
duty to provide for an annual tax sufficient to defray the estimated 45
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expenses of the State for each fiscal year as set forth in Article 9, 1
Section 2 of the Nevada Constitution; and 2
(b) Will promote the economic development of this State and 3
aid the implementation of the State Plan for Economic Development 4
developed by the Executive Director of the Office pursuant to 5
subsection 2 of NRS 231.053. 6
[5.] 6. An application submitted pursuant to subsection 2 must 7
include: 8
(a) A detailed description of the project, including a description 9
of the common purpose or business endeavor in which the 10
participants in the project are engaged; 11
(b) A detailed description of the location of the project, 12
including a precise description of the geographic boundaries of the 13
project site or sites; 14
(c) The name and business address of each participant in the 15
project, which must be an address in this State; 16
(d) A detailed description of the plan by which the participants 17
in the project intend to comply with the requirement that the 18
participants collectively make a total new capital investment of at 19
least $1 billion in this State in the 10-year period immediately 20
following approval of the application; 21
(e) If the application includes one or more partial abatements, an 22
agreement executed by the Office with the lead participant in the 23
project not later than 1 year after the date on which the application 24
was received by the Office which: 25
(1) Complies with the requirements of NRS 360.755; 26
(2) States the date on which the partial abatement becomes 27
effective, as agreed to by the applicant and the Office, which must 28
not be earlier than the date on which the Office received the 29
application and not later than 1 year after the date on which the 30
Office approves the application; 31
(3) States that the project will, after the date on which a 32
certificate of eligibility for the partial abatement is approved 33
pursuant to NRS 360.893, continue in operation in this State for a 34
period specified by the Office; and 35
(4) Binds successors in interest of the lead participant for the 36
specified period; and 37
(f) Any other information required by the Office. 38
[6.] 7. For an employee to be considered a resident of Nevada 39
for the purposes of this section, each participant in the project must 40
maintain the following documents in the personnel file of the 41
employee: 42
(a) A copy of the: 43
(1) Current and valid Nevada driver’s license of the 44
employee originally issued by the Department of Motor Vehicles 45
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more than 60 days before the hiring of the employee or a current and 1
valid identification card for the employee originally issued by the 2
Department of Motor Vehicles more than 60 days before the hiring 3
of the employee; or 4
(2) If the employee is a veteran of the Armed Forces of the 5
United States, a current and valid Nevada driver’s license of the 6
employee or a current and valid identification card for the employee 7
issued by the Department of Motor Vehicles; 8
(b) If the employee is a registered owner of one or more motor 9
vehicles in Nevada, a copy of the current motor vehicle registration 10
of at least one of those vehicles; 11
(c) Proof that the employee is employed full-time and scheduled 12
to work for an average minimum of 30 hours per week; and 13
(d) Proof that the employee is offered coverage under a plan of 14
health insurance provided by his or her employer. 15
[7.] 8. For the purpose of obtaining from the Executive 16
Director of the Office any waiver of the requirement set forth in 17
paragraph (k) of subsection 2, the lead participant in the project 18
must submit to the Executive Director of the Office written 19
documentation of the efforts to meet the requirement and 20
documented proof that an insufficient number of Nevada residents is 21
available and qualified for employment. 22
[8.] 9. The Executive Director of the Office shall make 23
available to the public and post on the Internet website of the Office: 24
(a) Any request for a waiver of the requirements set forth in 25
paragraph (k) of subsection 2; and 26
(b) Any approval of such a request for a waiver that is granted 27
by the Executive Director of the Office. 28
[9.] 10. The Executive Director of the Office shall post a 29
request for a waiver of the requirements set forth in paragraph (k) of 30
subsection 2 on the Internet website of the Office within 3 days after 31
receiving the request and shall keep the request posted on the 32
Internet website for not less than 5 days. The Executive Director of 33
the Office shall ensure that the Internet website allows members of 34
the public to post comments regarding the request. 35
[10.] 11. The Executive Director of the Office shall consider 36
any comments posted on the Internet website concerning any 37
request for a waiver of the requirements set forth in paragraph (k) of 38
subsection 2 before making a decision regarding whether to approve 39
the request. If the Executive Director of the Office approves the 40
request for a waiver, the Executive Director of the Office must post 41
the approval on the Internet website of the Office within 3 days and 42
ensure that the Internet website allows members of the public to post 43
comments regarding the approval. 44
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[11.] 12. If an applicant for one or more partial abatements 1
pursuant to this section fails to execute the agreement described in 2
paragraph (e) of subsection [5] 6 within 1 year after the date on 3
which the application was received by the Office, the applicant shall 4
not be approved for a partial abatement pursuant to this section 5
unless the applicant submits a new application. 6
Sec. 20. NRS 360.891 is hereby amended to read as follows: 7
360.891 1. If the Office of Economic Development approves 8
an application for a certificate of eligibility for transferable tax 9
credits submitted pursuant to paragraph (a) of subsection 1 of NRS 10
360.889 and the Interim Finance Committee approves a written 11
request for the issuance of transferable tax credits pursuant to 12
subsection [4] 5 of NRS 360.889, the Office shall immediately 13
forward a copy of the certificate of eligibility which identifies the 14
estimated amount of the tax credits available pursuant to this section 15
to: 16
(a) The lead participant in the qualified project; 17
(b) The Department; and 18
(c) The Nevada Gaming Control Board. 19
2. Within 14 business days after receipt of an audit provided by 20
the lead participant in the qualified project pursuant to paragraph (l) 21
of subsection 2 of NRS 360.889 and any other accountings or other 22
information required by the Office, the Office shall determine 23
whether to certify the audit and make a final determination of 24
whether a certificate of transferable tax credits will be issued. If the 25
Office certifies the audit and determines that all other requirements 26
for the transferable tax credits have been met, the Office shall notify 27
the lead participant in the qualified project that the transferable tax 28
credits will be issued. Within 30 days after the receipt of the notice, 29
the lead participant in the qualified project shall make an irrevocable 30
declaration of the amount of transferable tax credits that will be 31
applied to each fee or tax set forth in subparagraphs (1), (2) and (3) 32
of paragraph (a) of subsection 1 of NRS 360.889, thereby 33
accounting for all of the credits which will be issued. Upon receipt 34
of the declaration, the Office shall issue to the lead participant a 35
certificate of transferable tax credits in the amount approved by the 36
Office for the fees or taxes included in the declaration. The lead 37
participant shall notify the Department upon transferring any of the 38
transferable tax credits. The Office shall notify the Department and 39
the Nevada Gaming Control Board of all transferable tax credits 40
issued, segregated by each fee or tax set forth in subparagraphs (1), 41
(2) and (3) of paragraph (a) of subsection 1 of NRS 360.889. The 42
Department shall notify the Office and the Nevada Gaming Control 43
Board of the amount of any transferable tax credits transferred. 44
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3. A qualified project may be approved for a certificate of 1
eligibility for transferable tax credits in the amount of $9,500 for 2
each qualified employee, up to a maximum of 4,000 qualified 3
employees. 4
4. For the purpose of computing the amount of transferable tax 5
credits for which a qualified project is eligible pursuant to 6
subsection 3: 7
(a) Each qualified employee must be: 8
(1) Employed by a participant at the site of the qualified 9
project. 10
(2) Employed full-time and scheduled to work for an average 11
minimum of 30 hours per week. 12
(3) Employed for at least the last 3 consecutive months of the 13
fiscal year. 14
(4) Offered coverage under a plan of health insurance 15
provided by his or her employer. 16
(b) The wages for federal income tax purposes reported or 17
required to be reported on Form W-2 of the qualified employees of 18
the qualified project must be paid at an average rate of $22 per hour. 19
(c) An employee engaged solely in the construction of the 20
qualified project is deemed not to be a qualified employee. 21
Sec. 21. NRS 360.894 is hereby amended to read as follows: 22
360.894 1. The lead participant in a qualified project shall, 23
upon the request of the Office of Economic Development, furnish 24
the Office with copies of all records necessary to verify that the 25
qualified project meets the eligibility requirements for any 26
transferable tax credits issued pursuant to NRS 360.891 and the 27
partial abatement of any taxes pursuant to NRS 360.893. 28
2. The lead participant shall repay to the Department or the 29
Nevada Gaming Control Board, as applicable, any portion of the 30
transferable tax credits to which the lead participant is not entitled 31
if: 32
(a) The participants in the qualified project collectively fail to 33
make the investment in this State necessary to support the 34
determination by the Executive Director of the Office of Economic 35
Development that the project is a qualified project; 36
(b) The participants in the qualified project collectively fail to 37
employ the number of qualified employees identified in the 38
certificate of eligibility approved for the qualified project; 39
(c) The lead participant submits any false statement, 40
representation or certification in any document submitted for the 41
purpose of obtaining transferable tax credits; or 42
(d) The lead participant otherwise becomes ineligible for 43
transferable tax credits after receiving the transferable tax credits 44
pursuant to NRS 360.880 to 360.896, inclusive. 45
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3. Transferable tax credits purchased in good faith are not 1
subject to forfeiture unless the transferee submitted fraudulent 2
information in connection with the purchase. 3
4. Notwithstanding any provision of this chapter or chapter 361 4
of NRS, if the lead participant in a qualified project for which a 5
partial abatement has been approved pursuant to NRS 360.893 and 6
is in effect: 7
(a) Fails to meet the requirements for eligibility pursuant to that 8
section; or 9
(b) Ceases operation before the time specified in the agreement 10
described in paragraph (e) of subsection [5] 6 of NRS 360.889, 11
the lead participant shall repay to the Department or, if the partial 12
abatement is from the property tax imposed by chapter 361 of NRS, 13
to the appropriate county treasurer, the amount of the partial 14
abatement that was allowed to the lead participant pursuant to NRS 15
360.893 before the failure of the lead participant to meet the 16
requirements for eligibility. Except as otherwise provided in NRS 17
360.232 and 360.320, the lead participant shall, in addition to the 18
amount of the partial abatement required to be repaid by the lead 19
participant pursuant to this subsection, pay interest on the amount 20
due from the lead participant at the rate most recently established 21
pursuant to NRS 99.040 for each month, or portion thereof, from the 22
last day of the month following the period for which the payment 23
would have been made had the partial abatement not been approved 24
until the date of payment of the tax. 25
5. The Secretary of State may, upon application by the 26
Executive Director of the Office, revoke or suspend the state 27
business license of the lead participant in a qualified project which 28
is required to repay any portion of transferable tax credits pursuant 29
to subsection 2 or the amount of any partial abatement pursuant to 30
subsection 4 and which the Office determines is not in compliance 31
with the provisions of this section governing repayment. If the state 32
business license of the lead participant in a qualified project is 33
suspended or revoked pursuant to this subsection, the Secretary of 34
State shall provide written notice of the action to the lead 35
participant. The Secretary of State shall not reinstate a state business 36
license suspended pursuant to this subsection or issue a new state 37
business license to the lead participant whose state business license 38
has been revoked pursuant to this subsection unless the Executive 39
Director of the Office provides proof satisfactory to the Secretary of 40
State that the lead participant is in compliance with the requirements 41
of this section governing repayment. 42
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Sec. 22. NRS 360.940 is hereby amended to read as follows: 1
360.940 “Qualified project” means a project which the Office 2
of Economic Development determines meets all the requirements 3
set forth in subsections 2, [3 and 4] to 5, inclusive, of NRS 360.945. 4
Sec. 23. NRS 360.945 is hereby amended to read as follows: 5
360.945 1. On behalf of a project, the lead participant in the 6
project may apply to the Office of Economic Development for: 7
(a) A certificate of eligibility for transferable tax credits which 8
may be applied to: 9
(1) Any tax imposed by chapters 363A and 363B of NRS; 10
(2) The gaming license fees imposed by the provisions of 11
NRS 463.370; 12
(3) Any tax imposed by chapter 680B of NRS; or 13
(4) Any combination of the fees and taxes described in 14
subparagraphs (1), (2) and (3). 15
(b) An abatement of property taxes, employer excise taxes or 16
local sales and use taxes, or any combination of any of those taxes. 17
2. For a project to be eligible for the transferable tax credits 18
described in paragraph (a) of subsection 1 and abatement of the 19
taxes described in paragraph (b) of subsection 1, the lead participant 20
in the project must, on behalf of the project: 21
(a) Submit an application that meets the requirements of 22
subsection 3; 23
(b) Provide documentation satisfactory to the Office that 24
approval of the application would promote the economic 25
development of this State and aid the implementation of the State 26
Plan for Economic Development developed by the Executive 27
Director of the Office pursuant to subsection 2 of NRS 231.053; 28
(c) Provide documentation satisfactory to the Office that the 29
participants in the project collectively will make a total new capital 30
investment of at least $3.5 billion in this State within the 10-year 31
period immediately following approval of the application; 32
(d) Provide documentation satisfactory to the Office that the 33
participants in the project are engaged in a common business 34
purpose or industry; 35
(e) Provide documentation satisfactory to the Office that the 36
place of business of each participant is or will be located within the 37
geographic boundaries of the project site; 38
(f) Provide documentation satisfactory to the Office that each 39
participant in the project is registered pursuant to the laws of this 40
State or commits to obtaining a valid business license and all other 41
permits required by the county, city or town in which the project 42
operates; 43
(g) Provide documentation satisfactory to the Office of the 44
number of employees engaged in the construction of the project; 45
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(h) Provide documentation satisfactory to the Office of the 1
number of qualified employees employed or anticipated to be 2
employed at the project by the participants; 3
(i) Provide documentation satisfactory to the Office that each 4
employer engaged in the construction of the project provides a plan 5
of health insurance and that each employee engaged in the 6
construction of the project is offered coverage under the plan of 7
health insurance provided by his or her employer; 8
(j) Provide documentation satisfactory to the Office that each 9
participant in the project provides a plan of health insurance and that 10
each employee employed at the project by each participant is 11
offered coverage under the plan of health insurance provided by his 12
or her employer; 13
(k) Provide documentation satisfactory to the Office that at least 14
50 percent of the employees engaged in construction of the project 15
and 50 percent of the employees employed at the project are 16
residents of Nevada, unless waived by the Executive Director of the 17
Office upon proof satisfactory to the Executive Director of the 18
Office that there is an insufficient number of Nevada residents 19
available and qualified for such employment; 20
(l) Agree to provide the Office with a full compliance audit of 21
the participants in the project at the end of each fiscal year which: 22
(1) Shows the amount of money invested in this State by 23
each participant in the project; 24
(2) Shows the number of employees engaged in the 25
construction of the project and the number of those employees who 26
are residents of Nevada; 27
(3) Shows the number of employees employed at the project 28
by each participant and the number of those employees who are 29
residents of Nevada; and 30
(4) Is certified by an independent certified public accountant 31
in this State who is approved by the Office; 32
(m) Pay the cost of the audit required by paragraph (l); 33
(n) Enter into an agreement with the governing body of the city 34
or county in which the qualified project is located that: 35
(1) Requires the lead participant to pay the cost of any 36
engineering or design work necessary to determine the cost of 37
infrastructure improvements required to be made by the governing 38
body pursuant to an economic development financing proposal 39
approved pursuant to NRS 360.990; and 40
(2) Requires the lead participant to seek reimbursement for 41
any costs paid by the lead participant pursuant to subparagraph (1) 42
from the proceeds of bonds of the State of Nevada issued pursuant 43
to NRS 360.991; and 44
(o) Meet any other requirements prescribed by the Office. 45
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3. An application submitted pursuant to subsection 2 must 1
include: 2
(a) A detailed description of the project, including a description 3
of the common purpose or business endeavor in which the 4
participants in the project are engaged; 5
(b) A detailed description of the location of the project, 6
including a precise description of the geographic boundaries of the 7
project site; 8
(c) The name and business address of each participant in the 9
project, which must be an address in this State; 10
(d) A detailed description of the plan by which the participants 11
in the project intend to comply with the requirement that the 12
participants collectively make a total new capital investment of at 13
least $3.5 billion in this State in the 10-year period immediately 14
following approval of the application; 15
(e) If the application includes one or more abatements, an 16
agreement executed by the Office with the lead participant in the 17
project not later than 1 year after the date on which the application 18
was received by the Office which: 19
(1) Complies with the requirements of NRS 360.755; 20
(2) States that the project will, after the date on which a 21
certificate of eligibility for the abatement is approved pursuant to 22
NRS 360.965, continue in operation in this State for a period 23
specified by the Office; and 24
(3) Binds successors in interest of the lead participant for the 25
specified period; and 26
(f) Any other information required by the Office. 27
4. In addition to meeting the requirements set forth in 28
subsection 2, the Office may require the lead participant in the 29
project, on behalf of the project, to enter into an agreement with 30
the Office that incorporates a plan by the participants in the 31
project to provide work-based learning opportunities to pupils 32
enrolled in public high schools in this State, which may include, 33
without limitation, a proposal to offer work-based learning 34
opportunities at the project or to provide for employees of the 35
participants to serve as full-time or part-time instructors for career 36
and technical education courses. 37
5. For an employee to be considered a resident of Nevada for 38
the purposes of this section, each participant in the project must 39
maintain the following documents in the personnel file of the 40
employee: 41
(a) A copy of the current and valid Nevada driver’s license of 42
the employee or a current and valid identification card for the 43
employee issued by the Department of Motor Vehicles; 44
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(b) If the employee is a registered owner of one or more motor 1
vehicles in Nevada, a copy of the current motor vehicle registration 2
of at least one of those vehicles; 3
(c) Proof that the employee is employed full-time and scheduled 4
to work for an average minimum of 30 hours per week; and 5
(d) Proof that the employee is offered coverage under a plan of 6
health insurance provided by his or her employer. 7
[5.] 6. For the purpose of obtaining from the Executive 8
Director of the Office any waiver of the requirement set forth in 9
paragraph (k) of subsection 2, the lead participant in the project 10
must submit to the Executive Director of the Office written 11
documentation of the efforts to meet the requirement and 12
documented proof that an insufficient number of Nevada residents is 13
available and qualified for employment. 14
[6.] 7. The Executive Director of the Office shall make 15
available to the public and post on the Internet website for the 16
Office: 17
(a) Any request for a waiver of the requirements set forth in 18
paragraph (k) of subsection 2; and 19
(b) Any approval of such a request for a waiver that is granted 20
by the Executive Director of the Office. 21
[7.] 8. The Executive Director of the Office shall post a 22
request for a waiver of the requirements set forth in paragraph (k) of 23
subsection 2 on the Internet website of the Office within 3 days after 24
receiving the request and shall keep the request posted on the 25
Internet website for not less than 5 days. The Executive Director of 26
the Office shall ensure that the Internet website allows members of 27
the public to post comments regarding the request. 28
[8.] 9. The Executive Director of the Office shall consider any 29
comments posted on the Internet website concerning any request for 30
a waiver of the requirements set forth in paragraph (k) of subsection 31
2 before making a decision regarding whether to approve the 32
request. If the Executive Director of the Office approves the request 33
for a waiver, the Executive Director of the Office must post the 34
approval on the Internet website of the Office within 3 days and 35
ensure that the Internet website allows members of the public to post 36
comments regarding the approval. 37
[9.] 10. If an applicant for one or more abatements pursuant to 38
this section fails to execute the agreement described in paragraph (e) 39
of subsection 3 within 1 year after the date on which the application 40
was received by the Office, the applicant shall not be approved for 41
an abatement pursuant to this section unless the applicant submits a 42
new application. 43
Sec. 24. 1. There is hereby appropriated from the State 44
General Fund to the Department of Education the sum of $68,910 45
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for one staff position to oversee the implementation of 1
recommendations made by the Commission on Innovation and 2
Excellence in Education pursuant to NRS 385.920. 3
2. Any remaining balance of the appropriation made by 4
subsection 1 must not be committed for expenditure after June 30, 5
2027, by the entity to which the appropriation is made or any entity 6
to which money from the appropriation is granted or otherwise 7
transferred in any manner, and any portion of the appropriated 8
money remaining must not be spent for any purpose after 9
September 17, 2027, by either the entity to which the money was 10
appropriated or the entity to which the money was subsequently 11
granted or transferred, and must be reverted to the State General 12
Fund on or before September 17, 2027. 13
Sec. 25. 1. There is hereby appropriated from the State 14
General Fund to the Department of Education the sum of 15
$2,250,000 to enter into a contract with a qualified entity to: 16
(a) Provide professional development to teachers and 17
administrators regarding the implementation of personalized, 18
competency-based learning programs and the redesign of schools 19
and school cultures to create higher-performing programs of 20
personalized, competency-based learning; and 21
(b) Assist the Commission on Innovation and Excellence in 22
Education in developing recommendations pursuant to NRS 23
385.920 and assist the Department in implementing such 24
recommendations. 25
2. Any remaining balance of the appropriation made by 26
subsection 1 must not be committed for expenditure after June 30, 27
2027, by the entity to which the appropriation is made or any entity 28
to which money from the appropriation is granted or otherwise 29
transferred in any manner, and any portion of the appropriated 30
money remaining must not be spent for any purpose after 31
September 17, 2027, by either the entity to which the money was 32
appropriated or the entity to which the money was subsequently 33
granted or transferred, and must be reverted to the State General 34
Fund on or before September 17, 2027. 35
Sec. 26. 1. There is hereby appropriated from the State 36
General Fund to the Commission on Innovation and Excellence in 37
Education created by NRS 385.910 for travel expenses of the 38
members of the Commission and the members of the Subcommittee 39
on Metrics created by section 1 of this act the following sums: 40
For the Fiscal Year 2025-2026 .................................... $25,000 41
For the Fiscal Year 2026-2027 .................................... $25,000 42
2. Any balance of the sums appropriated by subsection 1 43
remaining at the end of the respective fiscal years must not be 44
committed for expenditure after June 30 of the respective fiscal 45
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years by the entity to which the appropriation is made or any entity 1
to which money from the appropriation is granted or otherwise 2
transferred in any manner, and any portion of the appropriated 3
money remaining must not be spent for any purpose after 4
September 18, 2026, and September 17, 2027, respectively, by 5
either the entity to which the money was appropriated or the entity 6
to which the money was subsequently granted or transferred, 7
and must be reverted to the State General Fund on or before 8
September 18, 2026, and September 17, 2027, respectively. 9
Sec. 27. (Deleted by amendment.) 10
Sec. 27.5. NRS 389.210 and 389.230 are hereby repealed. 11
Sec. 28. 1. This act becomes effective on July 1, 2025. 12
2. Sections 18 to 21, inclusive, of this act expire by limitation 13
on June 30, 2032. 14
3. Section 15 of this act expires by limitation on June 30, 2035. 15
4. Sections 22 and 23 of this act expire by limitation on 16
June 30, 2036. 17
5. Sections 8.5 and 16 of this act expire by limitation on 18
December 31, 2056. 19
TEXT OF REPEALED SECTION S
389.210 Establishment of pilot program to provide
competency-based education; regulations; requirements for
schools selected to participate in program.
1. The Department shall establish a pilot program to provide
competency-based education.
2. The State Board shall adopt regulations that prescribe:
(a) The process for submission of an application by the board of
trustees of a school district or the governing body of a charter school
to participate in the pilot program; and
(b) The qualifications and conditions for participation by a
school in the pilot program, including, without limitation:
(1) A commitment by the school district or charter school to
implement competency-based education for not less than 5 years;
and
(2) Evidence of support for the implementation of
competency-based education by the community served by the
school district or charter school.
3. A school selected to participate in the pilot program to
provide competency-based education shall:
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(a) Implement a system of instruction by which a pupil advances
to a higher level of learning when the pupil demonstrates mastery of
a concept or skill;
(b) Establish concrete skills on which a pupil will be evaluated
that include explicit, measurable and transferable learning
objectives;
(c) Ensure that assessment is a meaningful and positive learning
experience for pupils;
(d) Ensure that pupils receive timely and differentiated support
based upon their individual learning needs; and
(e) Ensure that pupils are able to apply knowledge learned,
create new knowledge and develop important skills and dispositions
relating to such knowledge.
4. If at least one application to participate in the pilot program
is made on behalf of a school that primarily serves pupils who are at
risk or credit deficient, or in need of credit retrieval, the Department
must select at least one such school to participate in the pilot
program.
5. As used in this section, a pupil is “at risk” if the pupil has an
economic or academic disadvantage such that he or she requires
special services and assistance to enable him or her to succeed in
educational programs. The term includes, without limitation, pupils
who are members of economically disadvantaged families, pupils
who are English learners, pupils who are at risk of dropping out of
high school and pupils who do not meet minimum standards of
academic proficiency. The term does not include a pupil with a
disability.
389.230 Public campaign to raise awareness; meetings to
inform superintendents of school districts; distribution of
available money to carry out program.
1. The Department of Education shall:
(a) Conduct a public campaign to raise awareness about
competency-based education.
(b) Conduct one or more meetings with the superintendents of
the school districts for the purpose of increasing:
(1) Understanding of competency-based education; and
(2) Interest in implementing a system of competency-based
education.
2. To the extent that money is available for that purpose, the
Department of Education may, through a competitive grants
program, distribute any money appropriated to the Department to
carry out the pilot program to provide competency-based education
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established pursuant to NRS 389.210. Grants must be awarded by
the Department to schools selected to participate in the program
based upon money available for this purpose.
H