Nevada § 354.723 - Severe financial emergency: Procedure for disincorporation or dissolution of local government in certain circumstances; requirement for local government to take remedial action in certain circumstances

§ 354.723. Severe financial emergency: Procedure for disincorporation or dissolution of local government in certain circumstances; requirement for local government to take remedial action in certain circumstances

1. If the Executive Director determines that a severe financial emergency which exists

in a local government under management by the Department is unlikely to cease to exist

within 3 years, the Executive Director shall determine: (a) The amount any tax or mandatory assessment levied by the local government must

be raised to ensure a balanced budget for the local government; and (b) The manner in which the services provided by the local government must be limited

to ensure a balanced budget for the local government, and submit his or her findings to the Committee. 2. The Committee shall review the findings submitted by the Executive Director pursuant

to subsection 1. If the Committee determines that the severe financial emergency which exists in

the local government is unlikely to cease to exist within 3 years and that the findings

made by the Executive Director are appropriate, the Committee shall submit its recommendation

and findings to the Nevada Tax Commission. If the Committee determines that the financial emergency is likely to cease to exist

within 3 years, that decision is not subject to review by the Nevada Tax Commission. 3. The Nevada Tax Commission shall schedule a public hearing not later than 30 days

after the Committee submits its recommendation and findings. The Nevada Tax Commission shall provide public notice of the hearing at least 10

days before the date on which the hearing will be held. The Executive Director shall provide copies of all documents relevant to the recommendation

and findings of the Committee to the governing body of the local government existing

in a severe financial emergency. 4. If, after the public hearing, the Nevada Tax Commission adopts the recommendation

and findings of the Committee, the Commission may: (a) Require the submission of a question to the electors of the local government at

the next primary or general municipal election or primary or general state election,

as applicable, asking whether the local government should be disincorporated or dissolved;

or (b) Require the local government to take any other remedial action in accordance with

the recommendation and findings of the Committee. 5. If the electors of the local government do not approve the disincorporation or

dissolution of the local government: (a) The maximum ad valorem tax levied within the local government, if any, must be

raised to $5 on each $100 of assessed valuation; (b) Any other taxes or mandatory assessments levied in the local government, notwithstanding

any limitation on those taxes or assessments provided by statute, must be raised in

an amount the Nevada Tax Commission determines is necessary to ensure a balanced budget

for the local government; and (c) The services provided by the local government must be limited in a manner the

Nevada Tax Commission determines is necessary to ensure a balanced budget for the

local government. 6. If the electors of the local government approve the disincorporation or dissolution

of a local government that is: (a) Created by another local government, it must be disincorporated or dissolved: (1) Pursuant to the applicable provisions of law; or (2) If there are no specific provisions of law providing for the disincorporation

or dissolution of the local government, by the entity that created the local government. If, at the time of the disincorporation or dissolution of the local government pursuant

to this paragraph, there are any outstanding loans or bonded indebtedness of the local

government, including, without limitation, loans made to the local government by the

county in which the local government is located, the taxes for the payment of the

bonds or other indebtedness must continue to be levied and collected in the same manner

as if the local government had not been disincorporated or dissolved until all outstanding

indebtedness is repaid, but for all other purposes the local government shall be deemed

disincorporated or dissolved at the time that the entity which created the local government

disincorporates or dissolves the local government. Any other liabilities and any remaining assets shall revert to the entity that created

the local government which is being disincorporated or dissolved. (b) Created by a special or local act of the Legislature, it may only be disincorporated

or dissolved by the Legislature. The Executive Director shall submit notification of the vote approving the disincorporation

or dissolution of the local government to the Director of the Legislative Counsel

Bureau for transmittal to the Legislature. At the first opportunity, the Legislature shall consider the question of whether

the special or local act will be repealed. (c) Created in any other manner, it must be disincorporated or dissolved: (1) Pursuant to the applicable provisions of law; or (2) If there are no specific provisions of law providing for the disincorporation

or dissolution of the local government, by the governing body of that local government. If, at the time of the disincorporation or dissolution of the local government pursuant

to this paragraph, there are any outstanding loans or bonded indebtedness of the local

government, including, without limitation, loans made to the local government by the

county or counties in which the local government is located, the taxes for the payment

of the bonds or other indebtedness must continue to be levied and collected in the

same manner as if the local government had not been disincorporated or dissolved until

all outstanding indebtedness is repaid, but for all other purposes the local government

shall be deemed disincorporated or dissolved at the time that the governing body of

the local government disincorporates or dissolves the local government. Except as otherwise provided in this subparagraph, any other liabilities and any

remaining assets of the local government shall revert to the board of county commissioners

of the county in which the local government is located. If the local government is located in more than one county, the governing body of

the local government shall apportion the remaining liabilities and assets among the

boards of county commissioners of the counties in which the local government is located. 7. Not later than 10 days after the Nevada Tax Commission requires the submission

of a question to the electors to disincorporate or dissolve a local government pursuant

to subsection 4, the Executive Director shall notify: (a) The city clerk, if the local government is a city; or (b) The county clerk in all other cases, and provide the clerk with the amount any tax or mandatory assessment levied by the

local government must be raised and a description of the manner in which the services

provided by the local government must be limited to ensure a balanced budget for the

local government. 8. After the Executive Director notifies the city clerk or the county clerk, as applicable,

pursuant to subsection 7, the clerk shall cause to be published in a newspaper of

general circulation that is printed in the local government a notice of the election

once in each calendar week for 2 successive calendar weeks by two weekly insertions

a week apart, the first publication to be not more than 30 days nor less than 22 days

next preceding the date of the election. If no newspaper is printed in the local government, publication of the notice of

election must be made in a newspaper printed in this State and having a general circulation

in the local government. 9. The notice required pursuant to subsection 8 must contain the following information: (a) That the Nevada Tax Commission has determined that the severe financial emergency

which exists in the local government is unlikely to cease to exist within 3 years; (b) That the question of whether the local government should be disincorporated or

dissolved will be submitted to the electors of the local government at the next primary

or general municipal election or the next primary or general state election, as applicable;

and (c) That if the electors do not approve the disincorporation or dissolution: (1) The maximum ad valorem tax levied within the local government, if any, will be

raised to $5 on each $100 of assessed valuation; (2) Any taxes or mandatory assessment levied in the local government will be raised

to ensure a balanced budget for the local government and the amount by which those

taxes or mandatory assessments will be raised; and (3) The services the local government provides will be limited to ensure a balanced

budget for the local government and the manner in which those services will be limited. 10. If any provisions providing generally for the disincorporation or dissolution

of the local government require that the question of disincorporating or dissolving

be published or submitted to a vote of the electors of the local government, the publication

required by subsection 3 and the election required by subsection 4 satisfy those requirements. If: (a) There is any other conflict between the provisions of this section and any provisions

providing generally for the disincorporation or dissolution of a local government;

or (b) The provisions providing generally for the disincorporation or dissolution of

a local government provide additional rights to protest the disincorporation or dissolution

of a local government not provided by this section, the provisions of this section control a disincorporation or dissolution pursuant

to this section and any person wishing to protest such a disincorporation or dissolution

must proceed in accordance with the provisions of this section. 11. As used in this section, “local government” does not include a county, a school

district or any agency or department of a county or city which prepares a budget separate

from that of the parent political subdivision.