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EMERGENCY REQUEST of Assembly Minority Leader

 

CHAPTER 512, AB 497

Assembly Bill No. 497–Assemblywoman Kirkpatrick

 

CHAPTER 512

 

[Approved: June 10, 2015]

 

AN ACT relating to taxes; revising provisions governing the financing of certain undertakings located in a tax increment area; authorizing, under certain circumstances, the allocation of certain sales and use taxes and employer excise taxes for the payment of debt incurred by a municipality that has designated a tax increment area for the purpose of financing an undertaking; authorizing, under certain circumstances, the financing of certain undertakings located in a tax increment area through the purchase by the State Treasurer of certain municipal securities and revenue securities; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law authorizes the governing body of a municipality to designate a tax increment area for the purpose of creating a special account for the payment of bonds or other securities issued to defray the cost of an undertaking, including a drainage and flood control project, an overpass project, a sewerage project, a street project, an underpass project or a water project. The designation of a tax increment area by the governing body provides for the allocation of a portion of the taxes levied upon taxable property in the tax increment area each year to pay the bond requirements of loans, money advanced to, or indebtedness incurred by the municipality to finance or refinance the undertaking. (Chapter 278C of NRS) Section 8 of this bill provides that, in addition to such property taxes, a portion of the sales and use taxes imposed within the tax increment area and the excise tax imposed on financial institutions and employers (the “modified business tax”) located in the tax increment area may be allocated to pay the debt incurred by the municipality to finance or refinance the undertaking if the undertaking is a water project, the estimated cost of which exceeds $50,000,000, and such financing is approved by the Interim Finance Committee pursuant to section 1 of this bill. Sections 2, 4-7, 10 and 11 of this bill make conforming changes.

      For the purposes of protecting and preserving the property and natural resources of the State, and assisting municipalities in the acquisition, construction and equipping of public improvements for which municipalities might otherwise be unable to obtain financing, existing law authorizes the State Treasurer to make loans to municipalities by purchasing municipal securities issued for a purpose related to natural resources or revenue securities issued for a purpose related to any undertaking which the municipality is authorized to complete. (Chapter 350A of NRS, commonly known as the “Municipal Bond Bank”) Section 9 of this bill specifically authorizes a municipality to obtain financing through the Municipal Bond Bank for an undertaking located within a tax increment area if the undertaking is a water project, the estimated cost of which exceeds $50,000,000, and such financing is approved by the Interim Finance Committee pursuant to section 1.

      Section 1 provides that a municipality may adopt an ordinance ordering an undertaking and creating a tax increment area which includes provisions for the allocation of a portion of the sales and use taxes or the modified business tax collected in the tax increment area as provided in section 8 or financing of the undertaking through the Municipal Bond Bank as provided in section 9 only for a water project, the estimated cost of which exceeds $50,000,000, and only after approval by the Interim Finance Committee of a request submitted by the governing body of the municipality.

 


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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1.  Chapter 278C of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  A municipality may adopt an ordinance ordering an undertaking and creating the tax increment area and the tax increment account pertaining thereto pursuant to NRS 278C.220 which includes provisions for:

      (a) The allocation of the proceeds of any tax on the sale or use of tangible personal property to the tax increment account of the proposed tax increment area pursuant to paragraph (b) of subsection 1 of NRS 278C.250;

      (b) The allocation of the proceeds of any tax imposed pursuant to NRS 363A.130 and 363B.110 to the tax increment account of the proposed tax increment area pursuant to paragraph (c) of subsection 1 of NRS 278C.250; or

      (c) The issuance of municipal securities and revenue securities described in paragraph (f) of subsection 1 of NRS 278C.280,

Ê only for an undertaking that is a water project, the estimated cost of which exceeds $50,000,000, and only after approval by the Interim Finance Committee of a written request submitted by the municipality.

      2.  The Interim Finance Committee may approve a request submitted pursuant to this section only if the Interim Finance Committee determines that approval of the request:

      (a) Will not impede the ability of the Legislature to carry out its duty to provide for an annual tax sufficient to defray the estimated expenses of the State for each fiscal year as set forth in Article 9, Section 2 of the Nevada Constitution; and

      (b) Will not threaten the protection and preservation of the property and natural resources of the State of Nevada.

      3.  A request submitted pursuant to this section must include any information required by the Interim Finance Committee.

      Sec. 2. NRS 278C.130 is hereby amended to read as follows:

      278C.130  “Tax increment area” means the area:

      1.  Whose boundaries are coterminous with those of a specially benefited zone established as provided in NRS 278C.150;

      2.  Specially benefited by an undertaking under this chapter;

      3.  Designated by ordinance as provided in NRS 278C.220; and

      4.  In which is located [the] :

      (a) The taxable property the assessed valuation of which is the basis for the allocation of tax proceeds to the tax increment account pursuant to paragraph (a) of subsection 1 of NRS 278C.250 [.] ; and

      (b) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act:

             (1) The persons from which the tax on the sale or use of tangible personal property is the basis for the allocation of tax proceeds to the tax increment account pursuant to paragraph (b) of subsection 1 of NRS 278C.250; and

 


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             (2) The employers from which the tax imposed pursuant to NRS 363A.130 and 363B.110 is the basis for the allocation of tax proceeds to the tax increment account pursuant to paragraph (c) of subsection 1 of NRS 278C.250.

      Sec. 3. NRS 278C.150 is hereby amended to read as follows:

      278C.150  1.  Except as otherwise provided in subsections 2, 3 and 4, the governing body of a municipality, on the behalf and in the name of the municipality, may designate a tax increment area comprising any specially benefited zone within the municipality designated for the purpose of creating a special account for the payment of bonds or [other] securities issued or loans, money advanced or indebtedness incurred to defray the cost of an undertaking, including, without limitation, the condemnation of property for an undertaking, as supplemented by the Local Government Securities Law, except as otherwise provided in this chapter.

      2.  The right-of-way property of a railroad company that is under the jurisdiction of the Surface Transportation Board must not be included in a tax increment area unless the inclusion of the property is mutually agreed upon by the governing body and the railroad company.

      3.  A tax increment area may not include a property that is, at the time the boundaries of the tax increment area are created, included within a redevelopment area previously established pursuant to the laws of this State.

      4.  The taxable property of a tax increment area must not be included in any subsequently created tax increment area until at least 50 years after the effective date of creation of the first tax increment area in which the property was included.

      Sec. 4. NRS 278C.155 is hereby amended to read as follows:

      278C.155  1.  A tax increment area may be created pursuant to this section by a cooperative agreement between a city in which the principal campus of the Nevada State College is located or intended to be located and the Nevada System of Higher Education, if the boundaries of the tax increment area include only land:

      (a) On which the principal campus of the Nevada State College is located or intended to be located; and

      (b) Which:

             (1) Consists of not more than 509 acres;

             (2) Was transferred by the city creating the tax increment area to the Nevada System of Higher Education for the use of the Nevada State College;

             (3) Has never been subject to property taxation; and

             (4) The Nevada System of Higher Education has agreed to continue to own for the term of the tax increment area.

Ê The provisions of NRS 278C.160, subsections 4, 6 and 7 of NRS 278C.170, NRS 278C.220, [paragraphs (c) and (d) of subsection 1] subsections 2 and 3 of NRS 278C.250 and paragraph (d) of subsection [4] 6 of NRS 278C.250 do not apply to a tax increment area created pursuant to this section, but such a tax increment area is subject to the provisions of subsections 2 to 9, inclusive.

      2.  Whenever the governing body of a city in which the principal campus of the Nevada State College is located or intended to be located and the Board of Regents of the University of Nevada determine that the interests of the city, the Nevada System of Higher Education and the public require an undertaking, the governing body and the Board of Regents may enter into a cooperative agreement pursuant to NRS 277.080 to 277.180, inclusive, which describes by reference to the general types of undertakings authorized pursuant to NRS 278C.140 and the undertakings proposed for the tax increment area, and which contains or refers to an exhibit filed with the clerk of the city and the Secretary of the Board of Regents which contains:

 


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which describes by reference to the general types of undertakings authorized pursuant to NRS 278C.140 and the undertakings proposed for the tax increment area, and which contains or refers to an exhibit filed with the clerk of the city and the Secretary of the Board of Regents which contains:

      (a) A statement of the last finalized amount of the assessed valuation of the real property within the boundaries of the tax increment area, which boundaries must be in compliance with subsection 1, and a statement that, based upon the records of the county treasurer, no property taxes were collected on any of that property, or on any interest therein, during the most recent year for which those records are available; and

      (b) A description of the tax increment area or its location, so that the various tracts of taxable real property and any taxable personal property may be identified and determined to be within or without the tax increment area, except that the description need not describe in complete detail each tract of real property proposed to be included within the tax increment area.

      3.  The governing body may, at any time after the effective date of a cooperative agreement entered into pursuant to this section, adopt a resolution that provisionally orders the undertakings and creation of the tax increment area.

      4.  The notice of the meeting required pursuant to subsection 3 of NRS 278C.170 must:

      (a) Describe by reference the general types of undertakings authorized pursuant to NRS 278C.140 and the undertakings proposed for the tax increment area;

      (b) Describe the last finalized amount of the assessed valuation of the real property within the boundaries of the tax increment area, and state that, based upon the records of the county treasurer, no property taxes were collected on any of that property, or on any interest therein, during the most recent year for which those records are available;

      (c) Describe the tax increment area or its location, so that the various tracts of taxable real or personal property may be identified and determined to be within or without the tax increment area; and

      (d) State the date, time and place of the meeting described in subsection 1 of NRS 278C.170.

      5.  If, after considering all properly submitted and relevant written and oral complaints, protests, objections and other relevant comments and after considering any other relevant material, the governing body determines that the undertaking is in the public interest and defines that public interest, the governing body shall determine whether to proceed with the undertaking. If the governing body has ordered any modification to an undertaking and has determined to proceed, the governing body must consult with the Board of Regents to obtain its consent to the proposed modification. When the Board of Regents and the governing body are in agreement on the modification, if any, and a statement of the modification is filed with the clerk, if the governing body wants to proceed with the undertaking, the governing body shall adopt an ordinance in the same manner as any other ordinance:

      (a) Overruling all complaints, protests and objections not otherwise acted upon;

      (b) Ordering the undertaking;

      (c) Describing the tax increment area to which the undertaking pertains; and

      (d) Creating a tax increment account for the undertaking.

 


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      6.  Money deposited in the tax increment account as described in subparagraph (2) of paragraph [(b)] (a) of subsection 1 of NRS 278C.250 may be used to pay the capital costs of the undertaking directly, in addition to being used to pay the bond requirements of loans, money advanced or indebtedness incurred to finance or refinance an undertaking, and may continue to be used for those purposes until the expiration of the tax increment area pursuant to NRS 278C.300.

      7.  The Board of Regents may pledge to any securities it issues under a delegation pursuant to subsection 8, or irrevocably dedicate to the city that will issue securities hereunder, any revenues of the Nevada System of Higher Education derived from the campus of the Nevada System of Higher Education whose boundaries are included in whole or in part in the tax increment area, other than revenues from state appropriations and from student fees, and subject to any covenants or restrictions in any instruments authorizing other securities. Such an irrevocable dedication must be for the term of the securities issued by the city and any securities refunding those securities and may also extend for the term of the tax increment area.

      8.  The city may delegate to the Board of Regents the authority to issue any security other than a general obligation security which the city is authorized to issue pursuant to this chapter, and in connection therewith, may irrevocably dedicate to the Board of Regents the revenues that are authorized pursuant to this chapter to be pledged or used to repay those securities, including, without limitation, all money in the tax increment account created pursuant to subsection 5. The irrevocable dedication of any security pursuant to this subsection must be for the term of the security issued by the Nevada System of Higher Education and any security refunding those securities and may also extend for the term of the tax increment area.

      9.  If the boundaries of a county school district include a tax increment area created pursuant to this section and the county school district operates a public school on property within the boundaries of that tax increment area, the county school district and the Nevada System of Higher Education shall consult with one another regarding funding for the operating costs of that public school.

      Sec. 5. NRS 278C.160 is hereby amended to read as follows:

      278C.160  1.  Whenever the governing body of a municipality is of the opinion that the interests of the municipality and the public require an undertaking, the governing body, by resolution, shall direct the engineer to prepare:

      (a) Preliminary plans and a preliminary estimate of the cost of the undertaking, including, without limitation, all estimated financing costs to be capitalized with the proceeds of the securities issued by the municipality and all other estimated incidental costs relating to the undertaking;

      (b) A statement of the proposed tax increment area pertaining thereto, [the] including:

             (1) The last finalized amount of the assessed valuation of the taxable property in such area, and the amount of taxes, including in such amount the sum of any unpaid taxes, whether or not delinquent, resulting from the last taxation of the property, based upon the records of the county assessor and the county treasurer; and

             (2) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act:

 


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                   (I) The total amount of taxes imposed on the sale or use of tangible personal property in such area in the immediately preceding fiscal year, based upon the records of the Department of Taxation; and

                   (II) The total amount of taxes imposed pursuant to NRS 363A.130 and 363B.110 on employers in such area in the immediately preceding fiscal year, based upon the records of the Department of Taxation; and

      (c) A statement of the estimated amount of the tax proceeds to be credited annually to the tax increment account during the term of the proposed securities payable therefrom.

      2.  The resolution must describe the undertaking in general terms and must state:

      (a) What portion of the expense of the undertaking will be paid with the proceeds of securities or other allowable borrowing instruments issued by the municipality in anticipation of tax proceeds to be credited to the tax increment account and payable wholly or in part therefrom;

      (b) How the remaining portion of the expense of the undertaking, if any, is to be financed; and

      (c) The basic security and any additional security for the payment of securities or other allowable borrowing instruments of the municipality pertaining to the undertaking.

      3.  The resolution must designate the tax increment area or its location, so that the various tracts of taxable real property , [and] any taxable personal property and the locations of any retailers and employers can be identified and determined to be within or without the proposed tax increment area, but need not describe in minute detail each tract of real property proposed to be included within the tax increment area.

      4.  The engineer shall file with the clerk the preliminary plans, estimate of costs and statements.

      5.  Upon the filing of the preliminary plans, estimate of costs and statements with the clerk, the governing body shall examine the preliminary plans, estimate of costs and statements, and if the governing body approves of the preliminary plans, estimate of costs and statements, it shall by resolution provisionally order the undertaking.

      Sec. 6. NRS 278C.170 is hereby amended to read as follows:

      278C.170  1.  In the resolution making the provisional order, the governing body shall set a time and place for a meeting to consider the ordering of the undertaking and hear all complaints, protests, objections and other relevant comments concerning the undertaking that are made in accordance with subsection 2. The time for the meeting must be at least 20 days after the date the governing body adopts the resolution that provisionally orders the undertaking.

      2.  The Federal Government, the State, any public body, [or] any natural person who resides in the municipality or owns taxable personal or real property in the municipality, any retailer or employer, if applicable, that is located within the proposed tax increment area pertaining to the undertaking, or any representative of any such natural person or entity, may submit a complaint, protest, objection or other comment about the undertaking before the governing body. If such an entity or person desires to submit a complaint, protest, objection or other comment about the undertaking for consideration by the governing body, the entity or person must:

 


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      (a) File a written complaint, protest, objection or other comment about the undertaking with the clerk at least 3 days before the date of the meeting described in subsection 1;

      (b) Present an oral complaint, protest, objection or other comment about the undertaking to the governing body at the meeting described in subsection 1; or

      (c) Present the complaint, protest, objection or other comment in the manner required pursuant to paragraphs (a) and (b).

      3.  Notice of the meeting described in subsection 1 must be given:

      (a) To all persons on the list established pursuant to NRS 278C.180, by mailing;

      (b) By posting; and

      (c) By publication.

      4.  The notice must:

      (a) Describe the undertaking and the project or projects relating thereto without mentioning minor details or incidentals;

      (b) State the preliminary estimate of the cost of the undertaking, including all incidental costs, as stated in the preliminary plans, estimate of costs and statements of the engineer filed with the clerk pursuant to NRS 278C.160;

      (c) Describe the proposed tax increment area pertaining to the undertaking, [the] including:

             (1) The last finalized amount of the assessed valuation of the taxable property in the area, and the amount of taxes, including in such amount the sum of any unpaid taxes, whether or not delinquent, resulting from the last taxation of the property, based upon the records of the county assessor and the county treasurer; and

             (2) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act:

                   (I) The total amount of taxes imposed on the sale or use of tangible personal property in the area in the immediately preceding fiscal year, based upon the records of the Department of Taxation; and

                   (II) The total amount of taxes imposed pursuant to NRS 363A.130 and 363B.110 on employers in the area in the immediately preceding fiscal year, based upon the records of the Department of Taxation;

      (d) State what portion of the expense of the undertaking will be paid with the proceeds of securities or other allowable borrowing instruments issued by the municipality in anticipation of tax proceeds to be credited to the tax increment account and payable wholly or in part therefrom, and state the basic security and any additional security for the payment of securities or other allowable borrowing instruments of the municipality pertaining to the undertaking;

      (e) State how the remaining portion of the expense, if any, is to be financed;

      (f) State the estimated amount of the tax proceeds to be credited annually to the tax increment account pertaining to the undertaking during the term of the proposed securities or other allowable borrowing instruments payable from such proceeds, and the estimated amount of any net revenues derived annually from the operation of the project or projects pertaining to the undertaking and pledged for the payment of those securities [;] or other allowable borrowing instruments;

 


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to the undertaking and pledged for the payment of those securities [;] or other allowable borrowing instruments;

      (g) State the estimated aggregate principal amount to be borrowed by the issuance of the securities [,] or other allowable borrowing instruments, excluding proceeds thereof to fund or refund outstanding securities, and the estimated total bond requirements of the securities [;] or other allowable borrowing instruments;

      (h) Find, determine and declare that the estimated tax proceeds to be credited to the tax increment account and any such net pledged revenues will be fully sufficient to pay the bond requirements of the securities or other allowable borrowing instruments as they become due; and

      (i) State the date, time and place of the meeting described in subsection 1.

      5.  All proceedings may be modified or rescinded wholly or in part by resolution adopted by the governing body at any time before the governing body passes the ordinance ordering the undertaking and creating the tax increment area and the tax increment account pertaining thereto pursuant to NRS 278C.220.

      6.  Except as otherwise provided in this section, a public body shall not make a substantial change in the undertaking, the preliminary estimates, the proposed tax increment area or other statements relating thereto after the first publication or posting of notice or after the first mailing of notice to the property owners, whichever occurs first, without additional notice and a hearing pursuant to this section. A public body may delete a portion of the undertaking and property from the proposed tax increment area without notice and a hearing pursuant to this section. A subsequent final determination of the amount of assessed valuation of taxable property in the tax increment area or a subsequent levy or imposition of taxes does not adversely affect proceedings taken pursuant to this chapter.

      7.  The engineer may make minor changes in and develop the undertaking as to the time, plans and materials entering into the undertaking at any time before its completion. Any minor changes authorized by this subsection must be made a matter of public record at a public meeting of the governing body.

      Sec. 7. NRS 278C.180 is hereby amended to read as follows:

      278C.180  1.  The governing body shall cause to be created a list of the names and addresses of all [persons] :

      (a) Persons who reside within a proposed tax increment area and who own taxable property within a proposed tax increment area [to be created.] ; and

      (b) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act:

             (1) Retailers located within a proposed tax increment area; and

             (2) Employers located within a proposed tax increment area.

Ê The names and addresses for the list may be obtained from the records of the county assessor , the Department of Taxation or from such other sources as the clerk or the engineer deems available. A list of such names and addresses pertaining to any tax increment area may be revised from time to time, but must be revised at least once every 12 months if the list is needed for a period longer than 12 months.

 


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      2.  If notice is required to be mailed pursuant to this chapter, the notice must be sent by prepaid, first-class mail, to the last known address of the person to whom the notice is being sent.

      3.  The mailing of any notice required in this chapter must be verified by the affidavit or certificate of the engineer, clerk, deputy or other person mailing the notice. Each verification of mailing must be filed with the clerk and be retained in the records of the municipality at least until all bonds and any other securities pertaining to a tax increment account have been paid in full, or any claim is barred by a statute of limitations.

      4.  A verification of mailing is prima facie evidence of the mailing of the notice in accordance with the requirements of this section.

      Sec. 8. NRS 278C.250 is hereby amended to read as follows:

      278C.250  1.  After the effective date of the ordinance adopted pursuant to NRS 278C.220 [, any] :

      (a) Any taxes levied upon taxable property in the tax increment area each year by or for the benefit of the State, the municipality and any public body must be divided as follows:

      [(a)] (1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of those taxing agencies upon the total sum of the assessed value of the taxable property in the tax increment area as shown upon the last equalized assessment roll used in connection with the taxation of the property by the taxing agency, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other property are paid.

      [(b)] (2) Except as otherwise provided in this section, the portion of the taxes levied each year in excess of the amount determined pursuant to [paragraph (a)] subparagraph (1) must be allocated to, and when collected must be paid into, the tax increment account pertaining to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, incurred by the municipality to finance or refinance, in whole or in part, the undertaking. Unless the total assessed valuation of the taxable property in the tax increment area exceeds the total assessed value of the taxable property in the area as shown by the last equalized assessment roll referred to in this subsection, all of the taxes levied and collected upon the taxable property in the area must be paid into the funds of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the taxable property in the tax increment area must be paid into the funds of the respective taxing agencies as taxes on all other property are paid.

      (b) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act, any taxes levied upon the sale or use of tangible personal property in the tax increment area each year by or for the benefit of the State, the municipality and any public body must be divided as follows:

             (1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of those taxing agencies upon the total sum of the sales and use of tangible personal property in the tax increment area in the fiscal year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220, must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other sales of tangible personal property are paid.

 


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respective taxing agencies as taxes by or for the taxing agencies on all other sales of tangible personal property are paid.

             (2) Except as otherwise provided in this section, of the portion of the taxes levied each year in excess of the amount determined pursuant to subparagraph (1), 50 percent of that amount must be allocated to, and when collected must be paid into the tax increment account pertaining to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, incurred by the municipality to finance or refinance, in whole or in part, the undertaking. The remaining 50 percent of that amount must be allocated to and when collected must be paid into the funds of the respective taxing agencies as taxes by or for the taxing agencies on all other sales of tangible personal property are paid. Unless the total amount of the taxes imposed on the sale and use of tangible personal property in the tax increment area exceeds the total amount of the taxes imposed on the sale and use of tangible personal property in the tax increment area in the fiscal year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220, all of the taxes levied and collected upon the sale or use of tangible personal property in the tax increment area must be paid into the funds of the respective taxing agencies. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes upon the sale or use of tangible personal property in the tax increment area must be paid into the funds of the respective taxing agencies as taxes on all other taxes on the sale or use of tangible personal property are paid.

      (c) If the undertaking is a water project for which the municipality has received approval from the Interim Finance Committee pursuant to section 1 of this act, any taxes imposed pursuant to NRS 363A.130 or 363B.110 on employers located in the tax increment area must be divided as follows:

             (1) That portion of the taxes that would be produced by the rate upon which the tax is imposed each year by the Department of Taxation in the fiscal year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220, must be allocated to and when collected must be paid to the Department of Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid.

             (2) Except as otherwise provided in this section, of the portion of the taxes imposed each year in excess of the amount determined pursuant to subparagraph (1), 50 percent of that amount must be allocated to, and when collected must be paid into, the tax increment account pertaining to the undertaking to pay the bond requirements of loans, money advanced to, or indebtedness, whether funded, refunded, assumed or otherwise, incurred by the municipality to finance or refinance, in whole or in part, the undertaking. The remaining 50 percent of that amount must be allocated to and when collected must be paid to the Department of Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid. Unless the total amount of the taxes imposed pursuant to NRS 363A.130 and 363B.110 on employers located in the tax increment area exceeds the total amount of the taxes imposed on employers located in the tax increment area in the fiscal year immediately preceding the effective date of the ordinance adopted pursuant to NRS 278C.220, all of the taxes imposed on employers located in the tax increment area must be paid to the Department of Taxation. When the loans, advances and indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes imposed pursuant to NRS 363A.130 or 363B.110 on employers located in the tax increment area must be paid to the Department of Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid.

 


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indebtedness, if any, and interest thereon, have been paid, all money thereafter received from taxes imposed pursuant to NRS 363A.130 or 363B.110 on employers located in the tax increment area must be paid to the Department of Taxation as all other taxes imposed pursuant to NRS 363A.130 and 363B.110 are paid.

      [(c)] 2.  The amount of the taxes levied each year which are paid into the tax increment account pursuant to [paragraph (b)] subparagraph (2) of paragraph (a) of subsection 1, subparagraph (2) of paragraph (b) of subsection 1 and subparagraph (2) of paragraph (c) of subsection 1 must be limited by the governing body to an amount not to exceed the combined total amount required for annual debt service of or any outstanding advances of money or unfunded costs associated with the project or projects acquired, improved or equipped, or any combination thereof, as part of the undertaking.

      [(d)] 3.  Any revenues generated within the tax increment [district] area in excess of the amount referenced in [paragraph (c),] subsection 2, if any, will be paid into the funds of the respective taxing agencies in the same proportion as their base amount was distributed.

      [2.] 4.  Except as otherwise provided in this subsection, in any fiscal year, the total revenue paid to a tax increment area pursuant to subparagraph (2) of paragraph (a) of subsection 1 in combination with the total revenue paid to any other tax increment areas and any redevelopment agencies of a municipality , other than any revenues paid to any other tax increment areas pursuant to subparagraph (2) of paragraph (b) of subsection 1 and subparagraph (2) of paragraph (c) of subsection 1, must not exceed:

      (a) In a county whose population is 100,000 or more or a city whose population is 150,000 or more, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 10 percent of the total assessed valuation of the municipality.

      (b) In a county whose population is less than 100,000 or a city whose population is less than 150,000, an amount equal to the combined tax rates of the taxing agencies for that fiscal year multiplied by 15 percent of the total assessed valuation of the municipality.

Ê Notwithstanding the provisions of this subsection, if a county has a population of less than 100,000 or if a city has a population of less than 150,000 at the time the municipality issues securities for a tax increment area pursuant to NRS 278C.280, the revenue limitation set forth in paragraph (b) must remain the revenue limitation for the tax increment area until such time as the securities issued for that tax increment area pursuant to NRS 278C.280 have been paid in full, including any securities issued to refund those securities, regardless of whether the population of the municipality reaches or exceeds 100,000 after the issuance of those securities.

      [3.] 5.  If the revenue paid to a tax increment area must be limited pursuant to paragraph (a) or (b) of subsection [2] 4 and the municipality has more than one redevelopment agency or tax increment area, or one of each, the municipality shall determine the allocation to each agency and area. Any revenue that would be allocated to a tax increment area but for the provisions of this section must be paid into the funds of the respective taxing agencies.

      [4.] 6.  The portion of the taxes levied each year in excess of the amount determined pursuant to subparagraph (1) of paragraph (a) of subsection 1 which is attributable to any tax rate levied by a taxing agency:

 


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      (a) To produce revenue in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness that was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the debt service fund of that taxing agency.

      (b) In excess of any tax rate of that taxing agency applicable to the last taxation of the property before the effective date of the ordinance, if that additional rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.

      (c) Pursuant to NRS 387.3285 or 387.3287, if that rate was approved by a majority of the registered voters within the area of the taxing agency voting upon the question, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.

      (d) For the support of the public schools within a county school district pursuant to NRS 387.195, must be allocated to, and when collected must be paid into, the appropriate fund of that taxing agency.

      [5.] 7.  The provisions of paragraph (a) of subsection [4] 6 include, without limitation, a tax rate approved for bonds of a county school district issued pursuant to NRS 350.020, including, without limitation, amounts necessary for a reserve account in the debt service fund.

      [6.] 8.  As used in this section, the term “last equalized assessment roll” means the assessment roll in existence on the 15th day of March immediately preceding the effective date of the ordinance.

      Sec. 9. NRS 278C.280 is hereby amended to read as follows:

      278C.280  1.  To defray in whole or in part the cost of any undertaking, a municipality may issue the following securities:

      (a) Notes;

      (b) Warrants;

      (c) Interim debentures;

      (d) Bonds; [and]

      (e) Temporary bonds [.] ; and

      (f) Upon the approval of the Interim Finance Committee pursuant to section 1 of this act, municipal securities and revenue securities purchased by the State Treasurer in accordance with the provisions of chapter 350A of NRS.

      2.  Any net revenues derived from the operation of a project acquired, improved or equipped, or any combination thereof, as part of the undertaking must be pledged for the payment of any securities issued pursuant to this section. The securities must be made payable from any such net pledged revenues as the bond requirements become due from time to time by the bond ordinance, trust indenture or other proceedings that authorize the issuance of the securities or otherwise pertain to their issuance.

      3.  Securities issued pursuant to this section:

      (a) Must be made payable from tax proceeds accounted for in the tax increment account; and

      (b) May, at the option of the municipality and if otherwise so authorized by law, be made payable from the taxes levied by the municipality against all taxable property within the municipality.

Ê The municipality may also issue general obligation securities other than the ones authorized by this chapter that are made payable from taxes without also making the securities payable from any net pledged revenues or tax proceeds accounted for in a tax increment account, or from both of those sources of revenue.

 


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also making the securities payable from any net pledged revenues or tax proceeds accounted for in a tax increment account, or from both of those sources of revenue.

      4.  Any securities payable only in the manner provided in either paragraph (a) of subsection 3 or both subsection 2 and paragraph (a) of subsection 3:

      (a) Are special obligations of the municipality and are not in their issuance subject to any debt limitation imposed by law;

      (b) While they are outstanding, do not exhaust the debt incurring power of the municipality; and

      (c) May be issued under the provisions of the Local Government Securities Law, except as otherwise provided in this chapter, without any compliance with the provisions of NRS 350.020 to 350.070, inclusive, except as otherwise provided in the Local Government Securities Law, only after the issuance of municipal bonds is approved under the provisions of NRS 350.011 to 350.0165, inclusive.

      5.  Any securities payable from taxes in the manner provided in paragraph (b) of subsection 3, regardless of whether they are also payable in the manner provided in paragraph (a) of subsection 3 or in both subsection 2 and paragraph (a) of subsection 3:

      (a) Are general obligations of the municipality and are in their issuance subject to such debt limitation;

      (b) While they are outstanding, do exhaust the power of the municipality to incur debt; and

      (c) May be issued under the provisions of the Local Government Securities Law only after the issuance of municipal bonds is approved under the provisions of:

             (1) NRS 350.011 to 350.0165, inclusive; or

             (2) NRS 350.020 to 350.070, inclusive,

Ê except for the issuance of notes or warrants under the Local Government Securities Law that are payable out of the revenues for the current year and are not to be funded with the proceeds of interim debentures or bonds in the absence of such bond approval under the two acts designated in subparagraphs (1) and (2).

      6.  In the proceedings for the advancement of money, or the making of loans, or the incurrence of any indebtedness, whether funded, refunded, assumed or otherwise, by the municipality to finance or refinance, in whole or in part, the undertaking, the portion of taxes mentioned in subsection [2] 4 of NRS 278C.250 must be irrevocably pledged for the payment of the bond requirements of the loans, advances or indebtedness. The provisions in the Local Government Securities Law pertaining to net pledged revenues are applicable to such a pledge to secure the payment of tax increment bonds.

      Sec. 10. NRS 350A.120 is hereby amended to read as follows:

      350A.120  “Tax” means [a] :

      1.  A general (ad valorem) property tax.

      2.  Any tax or portion thereof to which is attributable the proceeds that are paid into the tax increment account of a tax increment area created by a municipality pursuant to NRS 278C.220.

      Sec. 11. NRS 355.170 is hereby amended to read as follows:

      355.170  1.  Except as otherwise provided in this section and NRS 354.750 and 355.171, the governing body of a local government may purchase for investment the following securities and no others:

 


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      (a) Bonds and debentures of the United States, the maturity dates of which do not extend more than 10 years after the date of purchase.

      (b) Farm loan bonds, consolidated farm loan bonds, debentures, consolidated debentures and other obligations issued by federal land banks and federal intermediate credit banks under the authority of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds, debentures, consolidated debentures and other obligations issued by banks for cooperatives under the authority of the Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.

      (c) Bills and notes of the United States Treasury, the maturity date of which is not more than 10 years after the date of purchase.

      (d) Obligations of an agency or instrumentality of the United States of America or a corporation sponsored by the government, the maturity date of which is not more than 10 years after the date of purchase.

      (e) Negotiable certificates of deposit issued by commercial banks, insured credit unions or savings and loan associations.

      (f) Securities which have been expressly authorized as investments for local governments by any provision of Nevada Revised Statutes or by any special law.

      (g) Nonnegotiable certificates of deposit issued by insured commercial banks, insured credit unions or insured savings and loan associations, except certificates that are not within the limits of insurance provided by an instrumentality of the United States, unless those certificates are collateralized in the same manner as is required for uninsured deposits by a county treasurer pursuant to NRS 356.133. For the purposes of this paragraph, any reference in NRS 356.133 to a “county treasurer” or “board of county commissioners” shall be deemed to refer to the appropriate financial officer or governing body of the local government purchasing the certificates.

      (h) Subject to the limitations contained in NRS 355.177, negotiable notes medium-term obligations issued by local governments of the State of Nevada pursuant to NRS 350.087 to 350.095, inclusive.

      (i) Bankers’ acceptances of the kind and maturities made eligible by law for rediscount with Federal Reserve Banks, and generally accepted by banks or trust companies which are members of the Federal Reserve System. Eligible bankers’ acceptances may not exceed 180 days’ maturity. Purchases of bankers’ acceptances may not exceed 20 percent of the money available to a local government for investment as determined on the date of purchase.

      (j) Obligations of state and local governments : [if:]

             (1) If:

                   (I) The interest on the obligation is exempt from gross income for federal income tax purposes; and

             [(2)] (II) The obligation has been rated “A” or higher by one or more nationally recognized bond credit rating agencies [.] ; or

             (2) If the obligation is secured by the proceeds that are paid into the tax increment account of a tax increment area created by a municipality pursuant to NRS 278C.220.

      (k) Commercial paper issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States that:

 


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             (1) Is purchased from a registered broker-dealer;

             (2) At the time of purchase has a remaining term to maturity of no more than 270 days; and

             (3) Is rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better,

Ê except that investments pursuant to this paragraph may not, in aggregate value, exceed 20 percent of the total portfolio as determined on the date of purchase, and if the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, it must be sold as soon as possible.

      (l) Money market mutual funds which:

             (1) Are registered with the Securities and Exchange Commission;

             (2) Are rated by a nationally recognized rating service as “AAA” or its equivalent; and

             (3) Invest only in:

                   (I) Securities issued by the Federal Government or agencies of the Federal Government;

                   (II) Master notes, bank notes or other short-term commercial paper rated by a nationally recognized rating service as “A-1,” “P-1” or its equivalent, or better, issued by a corporation organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States; or

                   (III) Repurchase agreements that are fully collateralized by the obligations described in sub-subparagraphs (I) and (II).

      (m) Obligations of the Federal Agricultural Mortgage Corporation.

      2.  Repurchase agreements are proper and lawful investments of money of a governing body of a local government for the purchase or sale of securities which are negotiable and of the types listed in subsection 1 if made in accordance with the following conditions:

      (a) The governing body of the local government shall designate in advance and thereafter maintain a list of qualified counterparties which:

             (1) Regularly provide audited and, if available, unaudited financial statements;

             (2) The governing body of the local government has determined to have adequate capitalization and earnings and appropriate assets to be highly creditworthy; and

             (3) Have executed a written master repurchase agreement in a form satisfactory to the governing body of the local government pursuant to which all repurchase agreements are entered into. The master repurchase agreement must require the prompt delivery to the governing body of the local government and the appointed custodian of written confirmations of all transactions conducted thereunder, and must be developed giving consideration to the Federal Bankruptcy Act.

      (b) In all repurchase agreements:

             (1) At or before the time money to pay the purchase price is transferred, title to the purchased securities must be recorded in the name of the appointed custodian, or the purchased securities must be delivered with all appropriate, executed transfer instruments by physical delivery to the custodian;

             (2) The governing body of the local government must enter a written contract with the custodian appointed pursuant to subparagraph (1) which requires the custodian to:

 


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                   (I) Disburse cash for repurchase agreements only upon receipt of the underlying securities;

                   (II) Notify the governing body of the local government when the securities are marked to the market if the required margin on the agreement is not maintained;

                   (III) Hold the securities separate from the assets of the custodian; and

                   (IV) Report periodically to the governing body of the local government concerning the market value of the securities;

             (3) The market value of the purchased securities must exceed 102 percent of the repurchase price to be paid by the counterparty and the value of the purchased securities must be marked to the market weekly;

             (4) The date on which the securities are to be repurchased must not be more than 90 days after the date of purchase; and

             (5) The purchased securities must not have a term to maturity at the time of purchase in excess of 10 years.

      3.  The securities described in paragraphs (a), (b) and (c) of subsection 1 and the repurchase agreements described in subsection 2 may be purchased when, in the opinion of the governing body of the local government, there is sufficient money in any fund of the local government to purchase those securities and the purchase will not result in the impairment of the fund for the purposes for which it was created.

      4.  When the governing body of the local government has determined that there is available money in any fund or funds for the purchase of bonds as set out in subsection 1 or 2, those purchases may be made and the bonds paid for out of any one or more of the funds, but the bonds must be credited to the funds in the amounts purchased, and the money received from the redemption of the bonds, as and when redeemed, must go back into the fund or funds from which the purchase money was taken originally.

      5.  Any interest earned on money invested pursuant to subsection 3, may, at the discretion of the governing body of the local government, be credited to the fund from which the principal was taken or to the general fund of the local government.

      6.  The governing body of a local government may invest any money apportioned into funds and not invested pursuant to subsection 3 and any money not apportioned into funds in bills and notes of the United States Treasury, the maturity date of which is not more than 1 year after the date of investment. These investments must be considered as cash for accounting purposes, and all the interest earned on them must be credited to the general fund of the local government.

      7.  This section does not authorize the investment of money administered pursuant to a contract, debenture agreement or grant in a manner not authorized by the terms of the contract, agreement or grant.

      8.  As used in this section:

      (a) “Counterparty” means a bank organized and operating or licensed to operate in the United States pursuant to federal or state law or a securities dealer which is:

             (1) A registered broker-dealer;

             (2) Designated by the Federal Reserve Bank of New York as a “primary” dealer in United States government securities; and

             (3) In full compliance with all applicable capital requirements.

      (b) “Local government” has the meaning ascribed to it in NRS 354.474.

 


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      (c) “Repurchase agreement” means a purchase of securities by the governing body of a local government from a counterparty which commits to repurchase those securities or securities of the same issuer, description, issue date and maturity on or before a specified date for a specified price.

      Sec. 12.  This act becomes effective on July 1, 2015.

________

CHAPTER 513, SB 329

Senate Bill No. 329–Senators Lipparelli, Hammond, Roberson; Gustavson and Hardy

 

CHAPTER 513

 

[Approved: June 10, 2015]

 

AN ACT relating to partnerships; exempting, under certain circumstances, certain persons from liability as a partner by estoppel and liability as a purported partner; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law sets forth various provisions governing partnerships, including the formation of such business associations and the rights and obligations of partners in a partnership. (Chapter 87 of NRS) Under existing law, partnerships are governed either by the provisions of the Uniform Partnership Act, which were enacted in 1931, or the more recent provisions of the Uniform Partnership Act, which were enacted in 1997, depending on the date of the partnership’s formation. (NRS 87.025, 87.4314) Also under existing law, a person who is not an actual partner of a partnership may be held liable as a partner under certain circumstances and as a result of the words or conduct of the person. (NRS 87.160, 87.4332) This bill provides that those provisions do not apply to a person who announces an association of persons for the sole purpose of a business development, regardless of whether such an announcement uses, or the association is described by, certain terms, so long as the business development is undertaken by one or more corporations or limited-liability companies.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 87.160 is hereby amended to read as follows:

      87.160  1.  When a person, by words spoken or written or by conduct, represents himself or herself, or consents to another representing him or her to anyone, as a partner in an existing partnership or with one or more persons not actual partners, the person is liable to any such person to whom such representation has been made who has, on the faith of such representation, given credit to the actual or apparent partnership, and if the person has made such representation or consented to its being made in a public manner the person is liable to such person, whether the representation has or has not been made or communicated to such person so giving credit by or with the knowledge of the apparent partner making the representation or consenting to its being made.

 


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      (a) When a partnership liability results, the person is liable as though the person were an actual member of the partnership.

      (b) When no partnership liability results, the person is liable jointly with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately.

      2.  When a person has been thus represented to be a partner in an existing partnership, or with one or more persons not actual partners, the person is an agent of the persons consenting to such representation to bind them to the same extent and in the same manner as though he or she were a partner in fact, with respect to persons who rely upon the representation. Where all the members of the existing partnership consent to the representation, a partnership act or obligation results; but in all other cases it is the joint act or obligation of the person acting and the persons consenting to the representation.

      3.  This section does not apply to any person who, by words spoken or written or by conduct, announces an association of persons for the sole purpose of a business development, regardless of whether such an announcement uses, or the association of persons is described by, the terms “partnering” or “joint venturing” or any other similar term, so long as the business development is undertaken by one or more corporations or limited-liability companies.

      Sec. 2. NRS 87.4332 is hereby amended to read as follows:

      87.4332  1.  If a person, by words or conduct, purports to be a partner, or consents to being represented by another as a partner, in a partnership or with one or more persons not partners, the purported partner is liable to a person to whom the representation is made, if that person, relying on the representation, enters into a transaction with the actual or purported partnership. If the representation, either by the purported partner or by a person with the purported partner’s consent, is made in a public manner, the purported partner is liable to a person who relies upon the purported partnership even if the purported partner is not aware of being held out as a partner to the claimant. If partnership liability results, the purported partner is liable with respect to that liability as if the purported partner were a partner. If no partnership liability results, the purported partner is liable with respect to that liability jointly and severally with any other person consenting to the representation.

      2.  If a person is thus represented to be a partner in an existing partnership, or with one or more persons not partners, the purported partner is an agent of persons consenting to the representation to bind them to the same extent and in the same manner as if the purported partner were a partner, with respect to persons who enter into transactions in reliance upon the representation. If all of the partners of the existing partnership consent to the representation, a partnership act or obligation results. If fewer than all of the partners of the existing partnership consent to the representation, the person acting and the partners consenting to the representation are jointly and severally liable.

      3.  A person is not liable as a partner merely because the person is named by another in a statement of partnership authority.

      4.  A person does not continue to be liable as a partner merely because of a failure to file a statement of dissociation or to amend a statement of partnership authority to indicate the partner’s dissociation from the partnership.

 


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      5.  Except as otherwise provided in subsections 1 and 2, persons who are not partners as to each other are not liable as partners to other persons.

      6.  Subsections 1 and 2 do not apply to any person who, by words spoken or written or conduct, announces an association of persons for the sole purpose of a business development, regardless of whether such an announcement uses, or the association of persons is described by, the terms “partnering” or “joint venturing” or any other similar term, so long as the business development is undertaken by one or more corporations or limited-liability companies.

      Sec. 3.  This act becomes effective upon passage and approval.

________

CHAPTER 514, SB 446

Senate Bill No. 446–Committee on Judiciary

 

CHAPTER 514

 

[Approved: June 10, 2015]

 

AN ACT relating to business; establishing procedures for the ratification or validation of certain noncompliant corporate acts; providing that a trust company may be formed as a corporation; revising provisions governing the stock ledger maintained by the registered agent of a corporation; revising provisions setting forth the required officers of a corporation; revising provisions governing transactions involving interested directors or officers; revising provisions governing the stock of corporations; revising provisions governing meetings of stockholders of corporations; revising provisions governing certain transactions between corporations and interested stockholders; revising provisions relating to articles and certificates of incorporation; revising provisions establishing the time of organization of certain business entities; revising provisions governing the allocation of certain liabilities after a merger of business entities; revising provisions governing notarial acts; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Section 1 of this bill establishes additional, nonexclusive procedures by which a corporate act that is not in compliance with applicable law or the articles of incorporation or bylaws of the corporation may be ratified or validated by the directors and stockholders of the corporation.

      Under existing law, a trust company organized for the purpose of conducting a banking business may not be organized as a corporation. (NRS 78.020) Section 2 of this bill provides that a trust company may be formed as a corporation under chapter 78 of NRS but that the trust company may not transact business in this State as a trust company until it complies with existing law governing trust companies.

      Existing law requires a corporation to keep, among other documents, a stock ledger or duplicate thereof, revised annually, at its registered office. (NRS 78.105) Section 3 of this bill specifies a timeline for revising the stock ledger by requiring the stock ledger to be revised not later than 60 days after the date by which the corporation is required to file its annual list.

 


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ê2015 Statutes of Nevada, Page 3216 (Chapter 514, SB 446)ê

 

      Section 4 of this bill revises provisions relating to the officers of a corporation to clarify that vice presidents, assistant secretaries and assistant treasurers are not officers of a corporation unless those persons are designated as officers.

      Existing law authorizes a corporation to have more than one class or series of stock if the articles of incorporation prescribe the classes and series, the number of shares of each class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of each class or series, or if the articles of incorporation authorize the board of directors to prescribe those matters. (NRS 78.195) Section 6 of this bill specifically states that all shares of the same class or series must have the same voting powers, designations, preferences, limitations, restrictions and relative rights. Section 6 also specifically states that the voting powers, designations, preferences, limitations, restrictions and relative rights for the shares of a class or series of stock may be made dependent upon certain facts or events.

      Existing law provides that if more than one class or series of stock is authorized, the articles of incorporation or the resolution of the board of directors authorizing the class or series must describe the voting powers, designations, preferences, limitations, restrictions, relative rights and distinguishing designation of the class or series. Section 6 provides that these matters must be set forth in the certificate of designation filed with the Secretary of State, and sections 7, 8 and 12 of this bill make conforming changes to refer to the certificate of designation rather than the resolution of the board of directors approving the certificate of designation. Section 7 further specifies that when a filed certificate of designation, or amendment thereto, becomes effective, the certificate or amendment has the effect of amending articles of incorporation.

      Existing law provides that in certain circumstances, a corporation may change the numbers of shares of a class or series of stock by a resolution adopted by the board of directors, without obtaining the approval of the stockholders. Such a change is not effective until a certificate is filed in the Office of the Secretary of State setting forth certain information concerning the shares of stock of the corporation. (NRS 78.207, 78.209) Section 9 of this bill specifies that when a filed certificate changing the number of shares of a class or series of stock becomes effective, the certificate has the effect of amending articles of incorporation. (NRS 78.209)

      Existing law authorizes a board of directors of a corporation to authorize shares of stock to be issued for consideration of various forms. (NRS 78.211) Section 10 of this bill provides that the nature and amount of that consideration may be made dependent upon a formula approved by the board or upon certain other facts or events. Section 10 also provides that issued shares of stock are outstanding shares unless the shares are treasury shares.

      Existing law provides that stockholders may participate in a meeting of stockholders through electronic communications, videoconferencing, teleconferencing or other technology under certain circumstances. (NRS 78.320) Section 11 of this bill revises this provision to provide that if authorized by the articles of incorporation or bylaws, a meeting of stockholders may be held solely through the use of such technology.

      Existing law sets forth certain restrictions on combinations and other transactions between certain corporations and interested stockholders. (NRS 78.411-78.444) Section 14 of this bill provides that those provisions do not apply to a combination of a resident domestic corporation with an interested stockholder of that corporation after the expiration of 4 years after the person first became an interested stockholder. Section 15 of this bill authorizes a resident domestic corporation to engage in a combination with any interested stockholder less than 2 years after the person first became an interested stockholder if the combination meets the requirements of the articles of incorporation of the resident domestic corporation as well as certain requirements set forth in existing law. Sections 16-19 of this bill clarify the language of certain provisions governing combinations and other transactions between certain corporations and interested stockholders.

 


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      Sections 20-31 of this bill change references to a certificate of incorporation to refer to articles of incorporation.

      Existing law provides that a limited liability company or a limited partnership is considered legally organized at the time of the filing of organizational documents with the Secretary of State or upon some later date and time as specified in those documents. (NRS 86.201, 87A.235, 88.350) Sections 32, 34 and 35 of this bill revise these provisions to provide that those business entities are considered legally organized at the time of the filing with the Secretary of State.

      Under existing law, the surviving entity in certain mergers between a parent entity and a subsidiary entity may be either the parent or the subsidiary. (NRS 92A.180) Section 36 of this bill requires the surviving entity in the merger, rather than the parent entity, to mail a copy or summary of the plan of merger to each owner of the subsidiary who does not waive the mailing requirement in writing.

      Existing law establishes the effect of a merger between business entities, including, without limitation, the effect of the merger on the liabilities of the surviving entity and the constituent entities. (NRS 92A.250) Section 37 of this bill revises this provision to provide that an owner of a constituent entity remains liable for the obligations of the constituent entity that existed at the time of the merger to the extent the owner was liable before the merger.

      Section 38 of this bill provides that the certificate evidencing a notarial act must be signed in the same manner as the signature that is on file with the Secretary of State only if the notarial officer is a notary public with such a signature on file with the Secretary of State.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 78 of NRS is hereby amended by adding thereto a new section to read as follows:

      1.  Except to the extent expressly prohibited in the articles of incorporation or an amendment thereto, in each case filed and effective on or after October 1, 2015, any corporate act not in compliance, or purportedly not in compliance, with this title or the articles of incorporation or bylaws in effect at the time of such corporate act may be ratified or validated in accordance with this section. This section does not apply to circumvent or contravene the provisions of NRS 78.378 to 78.3793, inclusive, or NRS 78.411 to 78.444, inclusive. Except as otherwise determined by the district court pursuant to its authority under subsection 5, a ratification or validation of a corporate act in accordance with this section is conclusive in the absence of actual fraud in the transaction. Ratification or validation under this section must not be the exclusive means by which a corporate act may be ratified or validated. This section shall not be construed to limit the authority of the board of directors, the stockholders or the corporation to effect any lawful means of ratification or validation of a corporate act or correction of a record, including, without limitation, the authority of:

      (a) The board of directors to act, or to consent to an action before or after the action, pursuant to NRS 78.315;

      (b) The stockholders to act, or to consent to an action before or after the action, pursuant to NRS 78.320; or

      (c) The corporation to correct a record filed in the Office of the Secretary of State pursuant to NRS 78.0295.

 


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      2.  Any ratification or validation of a corporate act pursuant to this section must be approved by the board of directors and, as applicable, the stockholders in accordance with this title and the articles of incorporation and bylaws in effect at the time of such ratification or validation, unless a higher approval standard was or would have been applicable to the original taking or purported taking of the corporate act, in which case such ratification or validation must be approved in accordance with such higher approval standard. The voting power of any shares issued or purportedly issued pursuant to the corporate act being ratified or validated must be disregarded for all purposes of the stockholder approval of such corporate act as required by this subsection, including for purposes of determining a quorum at a meeting of stockholders.

      3.  Notice of any ratification or validation of a corporate act pursuant to this section must be given not later than 10 days after the approval of such ratification or validation pursuant to subsection 2, to each stockholder of record at the time of such ratification or validation, whether or not action by the stockholders is required for such ratification or validation.

      4.  If a corporate act ratified or validated pursuant to this section would have required any filing with the Secretary of State pursuant to the provisions of this title, or if such ratification or validation would cause any such filing to be inaccurate or incomplete in any material respect, the corporation shall make, amend or correct each such filing in accordance with this title, including this subsection. Any such filing, amendment or correction:

      (a) Must be accompanied by a certificate of validation indicating that the filing, amendment or correction is being made in connection with a ratification or validation of a corporate act in accordance with this section and specifying the effective date and time of the filing, amendment or correction, which may be before the date and time of filing; and

      (b) Must otherwise be filed with the Secretary of State in accordance with the requirements of this title.

      5.  The district court has plenary and exclusive jurisdiction in equity, upon application of any person adversely affected, to administer and provide equitable relief under this section, including, without limitation, the authority to confirm, nullify, modify or compel any ratification or validation taken or proposed to be taken pursuant to this section, including any filing, amendment or correction pursuant to subsection 4. The provisions of this section shall not be construed to prescribe or circumscribe which facts and circumstances the court may consider or which remedies the court may grant in exercising its jurisdiction under this section. Any action, application or petition relating to a ratification or validation taken or proposed to be taken pursuant to this section must be filed in the district court:

      (a) Not later than 180 days after the notice required by subsection 3 is given; and

      (b) In the county where the principal office of the corporation is located or, if the principal office is not located in this State, in the county in which the corporation’s registered office is located.

      6.  Unless otherwise determined by the district court pursuant to its authority under subsection 5, a ratification or validation of a corporate act in accordance with this section relates back to the date of the corporate act.

 


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      7.  As used in this section:

      (a) “Corporate act” means:

             (1) Any act or purported act of the board of directors;

             (2) Any act or purported act of the stockholders; or

             (3) Any other act or transaction taken or purportedly taken by or on behalf of the corporation, including, without limitation, any issuance or purported issuance of stock or other securities of the corporation.

      (b) “Higher approval standard” means any provision set forth in the articles of incorporation or bylaws in effect at the time of the original taking or purported taking of a corporate act:

             (1) Requiring action of the directors or stockholders, at a meeting or by written consent, to be taken by a proportion greater than otherwise would have been required pursuant to this chapter if the articles of incorporation and bylaws were silent as to the required proportion;

             (2) Requiring a greater proportion of the directors or stockholders to constitute a quorum for the transaction of business at a meeting than otherwise would have been required pursuant to this chapter if the articles of incorporation and bylaws were silent as to the required proportion;

             (3) Requiring, prohibiting or prescribing conditions on action of the directors or stockholders at a meeting or by written consent;

             (4) Requiring separate action of the holders of shares of any class or series of the corporation’s stock, unless no shares of such class or series are outstanding at the time of the ratification or validation of the corporate act pursuant to this section;

             (5) Requiring separate action of the holders of securities of the corporation other than stock, unless such securities are not outstanding at the time of the ratification or validation of the corporate act pursuant to this section; or

             (6) Requiring separate action of any specified person or persons.

      Sec. 2. NRS 78.020 is hereby amended to read as follows:

      78.020  1.  [Insurance] Trust companies, insurance companies, mutual fire insurance companies, surety companies, express companies and railroad companies may be formed under this chapter, but such a corporation may not:

      (a) Transact any such business within this State until it has first complied with all laws concerning or affecting the right to engage in such business.

      (b) Infringe the laws of any other state or country in which it may intend to engage in business, by so incorporating under this chapter.

      2.  No [trust company,] savings and loan association, thrift company or corporation organized for the purpose of conducting a banking business may be organized under this chapter.

      Sec. 3. NRS 78.105 is hereby amended to read as follows:

      78.105  1.  A corporation shall keep a copy of the following records at its registered office:

      (a) A copy certified by the Secretary of State of its articles of incorporation, and all amendments thereto;

      (b) A copy certified by an officer of the corporation of its bylaws and all amendments thereto; and

      (c) A stock ledger or a duplicate stock ledger, revised annually [,] not later than 60 days after the date by which an annual list is required to be filed pursuant to NRS 78.150, containing the names, alphabetically arranged, of all persons who are stockholders of record of the corporation, showing their places of residence, if known, and the number of shares held by them respectively.

 


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showing their places of residence, if known, and the number of shares held by them respectively. In lieu of the stock ledger or duplicate stock ledger, the corporation may keep a statement setting out the name of the custodian of the stock ledger or duplicate stock ledger, and the present and complete mailing or street address where the stock ledger or duplicate stock ledger specified in this section is kept.

      2.  A stock ledger, duplicate stock ledger or statement setting out the name of the custodian of the stock ledger or duplicate stock ledger described in paragraph (c) of subsection 1 must be maintained by the registered agent of the corporation for 3 years following the resignation or termination of the registered agent or the dissolution of the corporation by the Secretary of State.

      3.  Any person who has been a stockholder of record of a corporation for at least 6 months immediately preceding the demand, or any person holding, or thereunto authorized in writing by the holders of, at least 5 percent of all of its outstanding shares, upon at least 5 days’ written demand is entitled to inspect in person or by agent or attorney, during usual business hours, the records required by subsection 1 and make copies therefrom. Holders of voting trust certificates representing shares of the corporation must be regarded as stockholders for the purpose of this subsection. Every corporation that neglects or refuses to keep the records required by subsection 1 open for inspection, as required in this subsection, shall forfeit to the State the sum of $25 for every day of such neglect or refusal.

      4.  If any corporation willfully neglects or refuses to make any proper entry in the stock ledger or duplicate copy thereof, or neglects or refuses to permit an inspection of the records required by subsection 1 upon demand by a person entitled to inspect them, or refuses to permit copies to be made therefrom, as provided in subsection 3, the corporation is liable to the person injured for all damages resulting to the person therefrom.

      5.  When the corporation keeps a statement in the manner provided for in paragraph (c) of subsection 1, the information contained thereon must be given to any stockholder of the corporation demanding the information, when the demand is made during business hours. Every corporation that neglects or refuses to keep a statement available, as in this subsection required, shall forfeit to the State the sum of $25 for every day of such neglect or refusal.

      6.  In every instance where an attorney or other agent of the stockholder seeks the right of inspection, the demand must be accompanied by a power of attorney signed by the stockholder authorizing the attorney or other agent to inspect on behalf of the stockholder.

      7.  The right to copy records under subsection 3 includes, if reasonable, the right to make copies by photographic, xerographic or other means.

      8.  The corporation may impose a reasonable charge to recover the costs of labor and materials and the cost of copies of any records provided to the stockholder.

      Sec. 4. NRS 78.130 is hereby amended to read as follows:

      78.130  1.  Every corporation must have a president, a secretary and a treasurer, or the equivalent thereof.

      2.  Every corporation may also have [one or more vice presidents, assistant secretaries and assistant treasurers, and] such other officers and agents as may be deemed necessary.

 


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      3.  All officers must be natural persons and must be chosen in such manner, hold their offices for such terms and have such powers and duties as may be prescribed by the bylaws or determined by the board of directors. Any natural person may hold two or more offices.

      4.  An officer holds office after the expiration of his or her term until a successor is chosen or until the officer’s resignation or removal before the expiration of his or her term. A failure to elect officers does not require the corporation to be dissolved. Any vacancy occurring in an office of the corporation by death, resignation, removal or otherwise, must be filled as the bylaws provide, or in the absence of such a provision, by the board of directors.

      Sec. 5. NRS 78.140 is hereby amended to read as follows:

      78.140  1.  A contract or other transaction is not void or voidable solely because:

      (a) The contract or transaction is between a corporation and:

             (1) One or more of its directors or officers; or

             (2) Another corporation, firm or association in which one or more of its directors or officers are directors or officers or are financially interested;

      (b) A common or interested director or officer:

             (1) Is present at the meeting of the board of directors or a committee thereof which authorizes or approves the contract or transaction; or

             (2) Joins in the signing of a written consent which authorizes or approves the contract or transaction pursuant to subsection 2 of NRS 78.315; or

      (c) The vote or votes of a common or interested director are counted for the purpose of authorizing or approving the contract or transaction,

Ê if one of the circumstances specified in subsection 2 exists.

      2.  The circumstances in which a contract or other transaction is not void or voidable pursuant to subsection 1 are:

      (a) The fact of the common directorship, office or financial interest is known to the board of directors or committee, and the [board] directors or members of the committee [authorizes, approves or ratifies] , other than any common or interested directors or members of the committee, approve or ratify the contract or transaction in good faith . [by a vote sufficient for the purpose without counting the vote or votes of the common or interested director or directors.]

      (b) The fact of the common directorship, office or financial interest is known to the stockholders, and [they] stockholders holding a majority of the voting power approve or ratify the contract or transaction in good faith . [by a majority vote of stockholders holding a majority of the voting power.] The votes of the common or interested directors or officers must be counted in any such vote of stockholders.

      (c) The fact of the common directorship, office or financial interest is not known to the director or officer at the time the transaction is brought before the board of directors of the corporation for action.

      (d) The contract or transaction is fair as to the corporation at the time it is authorized or approved.

      3.  Common or interested directors or common or interested members of the committee may be counted in determining the presence of a quorum at a meeting of the board of directors or a committee thereof which authorizes, approves or ratifies a contract or transaction, and if the votes of the common or interested directors or common or interested members of the committee are not counted at the meeting, then a majority of the disinterested directors or disinterested members of the committee may authorize, approve or ratify a contract or transaction.

 


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are not counted at the meeting, then a majority of the disinterested directors or disinterested members of the committee may authorize, approve or ratify a contract or transaction.

      4.  The fact that the vote or votes of the common or interested director or directors , or common or interested member or members of the committee, are not counted for purposes of subsection 2 does not prohibit any authorization, approval or ratification of a contract or transaction to be given by written consent pursuant to subsection 2 of NRS 78.315, regardless of whether the common or interested director signs such written consent or abstains in writing from providing consent.

      5.  Unless otherwise provided in the articles of incorporation or the bylaws, the board of directors, without regard to personal interest, may establish the compensation of directors for services in any capacity. If the board of directors establishes the compensation of directors pursuant to this subsection, such compensation is presumed to be fair to the corporation unless proven unfair by a preponderance of the evidence.

      Sec. 6. NRS 78.195 is hereby amended to read as follows:

      78.195  1.  If a corporation desires to have more than one class or series of stock, the articles of incorporation must prescribe, or vest authority in the board of directors to prescribe, the classes, series and the number of each class or series of stock and the voting powers, designations, preferences, limitations, restrictions and relative rights of each class or series of stock. If more than one class or series of stock is authorized, the articles of incorporation or the resolution of the board of directors [passed] adopted pursuant to a provision of the articles must prescribe a distinguishing designation for each class and series. The voting powers, designations, preferences, limitations, restrictions, relative rights and distinguishing designation of each class or series of stock must be described in the articles of incorporation or the resolution of the board of directors and the certificate of designation filed pursuant to subsection 1 of NRS 78.1955 before the issuance of shares of that class or series.

      2.  All shares of a class or series must have voting powers, designations, preferences, limitations, restrictions and relative rights identical with those of other shares of the same class or series and, except to the extent otherwise provided in the description of the series, with those of other series of the same class.

      3.  Unless otherwise provided in the articles of incorporation, no stock issued as fully paid up may ever be assessed and the articles of incorporation must not be amended in this particular.

      4.  [Any rate, condition or time for payment of distributions on any] The voting powers, designations, preferences, limitations, restrictions and relative rights for the shares of a class or series of stock may be made dependent upon any fact or event which may be ascertained outside the articles of incorporation [or the resolution providing for the distributions adopted by the board of directors] if the manner in which a fact or event may operate upon the [rate, condition or time of payment for the distributions] voting powers, designations, preferences, limitations, restrictions and relative rights is stated in the articles of incorporation . [or the resolution.] As used in this subsection, “fact or event” includes, without limitation, the existence of a fact or occurrence of an event, including, without limitation, a determination or action by a person, the corporation itself or any government, governmental agency or political subdivision of a government.

 


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      5.  The provisions of this section do not restrict the directors of a corporation from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or signing plans, arrangements or instruments that grant or deny rights, privileges, power or authority to a holder or holders of a specified number of shares or percentage of share ownership or voting power.

      Sec. 7. NRS 78.1955 is hereby amended to read as follows:

      78.1955  1.  If the voting powers, designations, preferences, limitations, restrictions and relative rights of any class or series of stock have been established by a resolution of the board of directors pursuant to a provision in the articles of incorporation, a certificate of designation setting forth the resolution and stating the number of shares for each designation must be signed by an officer of the corporation and filed with the Secretary of State. A certificate of designation signed and filed pursuant to this section must become effective before the issuance of any shares of the class or series.

      2.  Unless otherwise provided in the articles of incorporation or the certificate of designation being amended, if no shares of a class or series of stock established by [a resolution of the board of directors] a certificate of designation filed pursuant to subsection 1 have been issued, the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors pursuant to a certificate of amendment filed in the manner provided in subsection 4.

      3.  Unless otherwise provided in the articles of incorporation or the certificate of designation, if shares of a class or series of stock established by [a resolution of the board of directors] a certificate of designation filed pursuant to subsection 1 have been issued, the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series may be amended by a resolution of the board of directors only if the amendment is approved as provided in this subsection. Unless otherwise provided in the articles of incorporation or the certificate of designation, the proposed amendment adopted by the board of directors must be approved by the vote of stockholders holding shares in the corporation entitling them to exercise a majority of the voting power, or such greater proportion of the voting power as may be required by the articles of incorporation or the certificate of designation, of:

      (a) The class or series of stock being amended; and

      (b) Each class and each series of stock which, before amendment, is senior to the class or series being amended as to the payment of distributions upon dissolution of the corporation, regardless of any limitations or restrictions on the voting power of that class or series.

      4.  A certificate of amendment to a certificate of designation must be signed by an officer of the corporation and filed with the Secretary of State and must:

      (a) Set forth the original designation and the new designation, if the designation of the class or series is being amended;

      (b) State that no shares of the class or series have been issued or state that the approval of the stockholders required pursuant to subsection 3 has been obtained; and

 


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      (c) Set forth the amendment to the class or series or set forth the designation of the class or series, the number of the class or series and the voting powers, designations, preferences, limitations, restrictions and relative rights of the class or series, as amended.

      5.  A certificate filed pursuant to subsection 1 or 4 is effective at the time of the filing of the certificate with the Secretary of State or upon a later date and time as specified in the certificate, which date must not be more than 90 days after the date on which the certificate is filed. If a certificate filed pursuant to subsection 1 or 4 specifies a later effective date but does not specify an effective time, the certificate is effective at 12:01 a.m. in the Pacific time zone on the specified later date.

      6.  If shares of a class or series of stock established by a certificate of designation are not outstanding, the corporation may file a certificate which states that no shares of the class or series are outstanding and which contains the resolution of the board of directors authorizing the withdrawal of the certificate of designation establishing the class or series of stock. The certificate must identify the date and certificate of designation being withdrawn and must be signed by an officer of the corporation and filed with the Secretary of State. Upon filing the certificate and payment of the fee required pursuant to NRS 78.765, all matters contained in the certificate of designation regarding the class or series of stock are eliminated from the articles of incorporation.

      7.  When any certificate of designation, or any amendment thereto, filed pursuant to this section becomes effective, it shall have the effect of amending the articles of incorporation, but NRS 78.380, 78.385 and 78.390 do not apply to [certificates] a certificate of designation, or any amendment thereto, filed pursuant to this section.

      Sec. 8. NRS 78.196 is hereby amended to read as follows:

      78.196  1.  Each corporation must have:

      (a) One or more classes or series of shares that together have unlimited voting rights; and

      (b) One or more classes or series of shares that together are entitled to receive the net assets of the corporation upon dissolution.

Ê If the articles of incorporation provide for only one class of stock, that class of stock has unlimited voting rights and is entitled to receive the net assets of the corporation upon dissolution.

      2.  The articles of incorporation, or a certificate of designation approved pursuant to a resolution of the board of directors [pursuant thereto,] and filed pursuant to subsection 1 of NRS 78.1955, may authorize one or more classes or series of stock that:

      (a) Have special, conditional or limited voting powers, or no right to vote, except to the extent otherwise provided by this title;

      (b) Are redeemable or convertible:

             (1) At the option of the corporation, the stockholders or another person, or upon the occurrence of a designated event;

             (2) For cash, indebtedness, securities or other property; or

             (3) In a designated amount or in an amount determined in accordance with a designated formula or by reference to extrinsic data or events;

      (c) Entitle the stockholders to distributions calculated in any manner, including dividends that may be cumulative, noncumulative or partially cumulative;

 


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      (d) Have preference over any other class or series of shares with respect to distributions, including dividends and distributions upon the dissolution of the corporation;

      (e) Have par value; or

      (f) Have powers, designations, preferences, limitations, restrictions and relative rights dependent upon any fact or event which may be ascertained outside of the articles of incorporation or the [resolution] certificate of designation if the manner in which the fact or event may operate on such class or series of stock is stated in the articles of incorporation or the [resolution.] certificate of designation. As used in this paragraph, “fact or event” includes, without limitation, the existence of a fact or occurrence of an event, including, without limitation, a determination or action by a person, the corporation itself or any government, governmental agency or political subdivision of a government.

      3.  Unless otherwise provided in the articles of incorporation , or in a [resolution of the board of directors] certificate of designation filed pursuant to subsection 1 of NRS 78.1955, establishing a class or series of stock, shares which are subject to redemption and which have been called for redemption are not deemed to be outstanding shares for purposes of voting or determining the total number of shares entitled to vote on a matter on and after the date on which:

      (a) Written notice of redemption has been sent to the holders of such shares; and

      (b) A sum sufficient to redeem the shares has been irrevocably deposited or set aside to pay the redemption price to the holders of the shares upon surrender of any certificates.

      4.  The description of voting powers, designations, preferences, limitations, restrictions and relative rights of the classes or series of shares contained in this section is not exclusive.

      Sec. 9. NRS 78.209 is hereby amended to read as follows:

      78.209  1.  A change pursuant to NRS 78.207 is not effective until after the filing in the Office of the Secretary of State of a certificate, signed by an officer of the corporation, setting forth:

      (a) The number of authorized shares and the par value, if any, of each affected class or, if applicable, each affected series of shares before the change;

      (b) The number of authorized shares and the par value, if any, of each affected class or, if applicable, each affected series of shares after the change;

      (c) The number of shares of each affected class or, if applicable, each affected series to be issued after the change in exchange for each issued share of the same class or series;

      (d) The provisions, if any, for the issuance of fractional shares, or for the payment of money or the issuance of scrip to stockholders otherwise entitled to a fraction of a share and the percentage of outstanding shares affected thereby; and

      (e) That any required approval of the stockholders has been obtained.

Ê The provisions in the articles of incorporation of the corporation regarding the authorized number and par value, if any, of the changed class or, if applicable, the changed series of shares shall be deemed amended as provided in the certificate at the effective date and time of the change.

 


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      2.  Unless an increase or decrease of the number of authorized shares pursuant to NRS 78.207 is accomplished by an action that otherwise requires an amendment to the articles of incorporation of the corporation, such an amendment is not required by that section.

      3.  A certificate filed pursuant to subsection 1 is effective at the time of the filing of the certificate with the Secretary of State or upon a later date and time as specified in the certificate, which date must not be more than 90 days after the date on which the certificate is filed. If a certificate filed pursuant to subsection 1 specifies a later effective date but does not specify an effective time, the certificate is effective at 12:01 a.m. in the Pacific time zone on the specified later date.

      4.  If a certificate filed pursuant to subsection 1 specifies a later effective date, the board of directors may terminate the effectiveness of the certificate by resolution [. A] and a certificate of termination must:

      (a) Be filed with the Secretary of State before the effective date specified in the certificate filed pursuant to subsection 1;

      (b) Identify the certificate being terminated;

      (c) State that the effectiveness of the certificate has been terminated;

      (d) Be signed by an officer of the corporation; and

      (e) Be accompanied by the fee required pursuant to NRS 78.765.

      5.  When any certificate filed pursuant to subsection 1 becomes effective, it shall have the effect of amending the articles of incorporation, but NRS 78.380, 78.385 and 78.390 do not apply to a certificate of change filed pursuant to this section.

      Sec. 10. NRS 78.211 is hereby amended to read as follows:

      78.211  1.  The board of directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including, but not limited to, cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation. The nature and amount of such consideration may be made dependent upon a formula approved by the board of directors or upon any fact or event which may be ascertained outside the articles of incorporation or the resolution providing for the issuance of the shares adopted by the board of directors if the manner in which a fact or event may operate upon the nature and amount of the consideration is stated in the articles of incorporation or the resolution. The judgment of the board of directors as to the consideration received for the shares issued is conclusive in the absence of actual fraud in the transaction.

      2.  When the corporation receives the consideration for which the board of directors authorized the issuance of shares, the shares issued therefor are fully paid. Shares that are issued are outstanding shares unless such shares are treasury shares.

      3.  The corporation may place in escrow shares issued for a contract for future services or benefits or a promissory note, or make any other arrangements to restrict the transfer of the shares. The corporation may credit distributions made for the shares against their purchase price, until the services are performed, the benefits are received or the promissory note is paid. If the services are not performed, the benefits are not received or the promissory note is not paid, the shares escrowed or restricted and the distributions credited may be cancelled in whole or in part.

      4.  For the purposes of this section, “benefit to the corporation” includes, without limitation, the authorization of the issuance of shares to up

 


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to 100 persons without consideration for the sole purpose of qualifying the corporation as a real estate investment trust pursuant to 26 U.S.C. §§ 856 et seq., as amended, or any successor provision, and any regulations adopted pursuant thereto.

      Sec. 11. NRS 78.320 is hereby amended to read as follows:

      78.320  1.  Unless this chapter, the articles of incorporation or the bylaws provide for different proportions:

      (a) A majority of the voting power, which includes the voting power that is present in person or by proxy, regardless of whether the proxy has authority to vote on all matters, constitutes a quorum for the transaction of business; and

      (b) Action by the stockholders on a matter other than the election of directors is approved if the number of votes cast in favor of the action exceeds the number of votes cast in opposition to the action.

      2.  Unless otherwise provided in the articles of incorporation or the bylaws, any action required or permitted to be taken at a meeting of the stockholders may be taken without a meeting if, before or after the action, a written consent thereto is signed by stockholders holding at least a majority of the voting power, except that if a different proportion of voting power is required for such an action at a meeting, then that proportion of written consents is required.

      3.  In no instance where action is authorized by written consent need a meeting of stockholders be called or notice given.

      4.  Unless otherwise restricted by the articles of incorporation or bylaws, stockholders may participate in a meeting of stockholders through electronic communications, videoconferencing, teleconferencing or other available technology if the corporation has implemented reasonable measures to:

      (a) Verify the identity of each person participating through such means as a stockholder; and

      (b) Provide the stockholders a reasonable opportunity to participate in the meeting and to vote on matters submitted to the stockholders, including an opportunity to communicate, and to read or hear the proceedings of the meetings in a substantially concurrent manner with such proceedings.

      5.  If authorized in the articles of incorporation or bylaws, a meeting of stockholders may be held solely by remote communication pursuant to subsection 4.

      6.  Participation in a meeting pursuant to subsection 4 constitutes presence in person at the meeting.

      [6.]7.  Unless this chapter, the articles of incorporation or the bylaws provide for different proportions, if voting by a class or series of stockholders is permitted or required:

      (a) A majority of the voting power of the class or series that is present in person or by proxy, regardless of whether the proxy has authority to vote on all matters, constitutes a quorum for the transaction of business; and

      (b) An act by the stockholders of each class or series is approved if a majority of the voting power of a quorum of the class or series votes for the action.

      Sec. 12. NRS 78.350 is hereby amended to read as follows:

      78.350  1.  Unless otherwise provided in the articles of incorporation, or in the [resolution providing for the issuance of] certificate of designation establishing the class or series of stock , [adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the articles of incorporation,] every stockholder of record of a corporation is entitled at each meeting of stockholders thereof to one vote for each share of stock standing in his or her name on the records of the corporation.

 


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incorporation,] every stockholder of record of a corporation is entitled at each meeting of stockholders thereof to one vote for each share of stock standing in his or her name on the records of the corporation. If the articles of incorporation, or the [resolution providing for the issuance of] certificate of designation establishing the class or series of stock [adopted by the board of directors pursuant to authority expressly vested in it by the articles of incorporation,] provides for more or less than one vote per share for any class or series of shares on any matter, every reference in this chapter to a majority or other proportion of stock shall be deemed to refer to a majority or other proportion of the voting power of all of the shares or those classes or series of shares, as may be required by the articles of incorporation, or in the [resolution providing for the issuance of] certificate of designation establishing the class or series of stock [adopted by the board of directors pursuant to authority expressly vested in it by the provisions of the articles of incorporation,] or the provisions of this chapter.

      2.  Unless a period of more than 60 days or a period of less than 10 days is prescribed or fixed in the articles of incorporation, the directors may prescribe a period not exceeding 60 days before any meeting of the stockholders during which no transfer of stock on the books of the corporation may be made, or may fix, in advance, a record date not more than 60 or less than 10 days before the date of any such meeting as the date as of which stockholders entitled to notice of and to vote at such meetings must be determined. Only stockholders of record on that date are entitled to notice or to vote at such a meeting. If a record date is not fixed, the record date is at the close of business on the day before the day on which the first notice is given or, if notice is waived, at the close of business on the day before the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders applies to an adjournment or postponement of the meeting unless the board of directors fixes a new record date for the adjourned or postponed meeting. The board of directors must fix a new record date if the meeting is adjourned or postponed to a date more than 60 days later than the meeting date set for the original meeting.

      3.  The board of directors may adopt a resolution prescribing a date upon which the stockholders of record entitled to give written consent pursuant to NRS 78.320 must be determined. The date prescribed by the board of directors may not precede or be more than 10 days after the date the resolution is adopted by the board of directors. If the board of directors does not adopt a resolution prescribing a date upon which the stockholders of record entitled to give written consent pursuant to NRS 78.320 must be determined and:

      (a) No prior action by the board of directors is required by this chapter or chapter 92A of NRS before the matter is submitted for consideration by the stockholders, the date is the first date on which any stockholder delivers to the corporation such consent signed by the stockholder.

      (b) Prior action by the board of directors is required by this chapter or chapter 92A of NRS before the matter is submitted for consideration by the stockholders, the date is at the close of business on the day the board of directors adopts the resolution.

      4.  The provisions of this section do not restrict the directors from taking action to protect the interests of the corporation and its stockholders, including, but not limited to, adopting or signing plans, arrangements or instruments that grant or deny rights, privileges, power or authority to a holder or holders of a specified number of shares or percentage of share ownership or voting power.

 


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instruments that grant or deny rights, privileges, power or authority to a holder or holders of a specified number of shares or percentage of share ownership or voting power.

      Sec. 13. NRS 78.370 is hereby amended to read as follows:

      78.370  1.  If under the provisions of this chapter stockholders are required or authorized to take any action at a meeting, the notice of the meeting must be in writing.

      2.  Except in the case of the annual meeting, the notice must state the purpose or purposes for which the meeting is called. In all instances, the notice must state the time when, and the place, which may be within or without this State, where the meeting is to be held, and the means of electronic communications, if any, by which stockholders and proxies shall be deemed to be present in person and vote.

      3.  A copy of the notice must be delivered personally, mailed postage prepaid or delivered as provided in NRS 75.150 to each stockholder of record entitled to vote at the meeting not less than 10 nor more than 60 days before the meeting. If mailed, it must be directed to the stockholder at his or her address as it appears upon the records of the corporation. Personal delivery of any such notice to any officer of a corporation or association, to any member of a limited-liability company managed by its members, to any manager of a limited-liability company managed by managers, to any general partner of a partnership or to any trustee of a trust constitutes delivery of the notice to the corporation, association, limited-liability company, partnership or trust.

      4.  The articles of incorporation or the bylaws may require that the notice be also published in one or more newspapers.

      5.  Notice delivered or mailed to a stockholder in accordance with the provisions of this section and NRS 75.150 and the provisions, if any, of the articles of incorporation or the bylaws is sufficient, and in the event of the transfer of the stockholder’s stock after such delivery or mailing and before the holding of the meeting it is not necessary to deliver or mail notice of the meeting to the transferee.

      6.  Unless otherwise provided in the articles of incorporation or the bylaws, if notice is required to be delivered, under any provision of this chapter or the articles of incorporation or bylaws of any corporation, to any stockholder to whom:

      (a) Notice of two consecutive annual meetings, and all notices of meetings or of the taking of action by written consent without a meeting to the stockholder during the period between those two consecutive annual meetings; or

      (b) All, and at least two, payments sent by first-class mail of dividends or interest on securities during a 12-month period,

Ê have been mailed addressed to the stockholder at his or her address as shown on the records of the corporation and have been returned undeliverable, the delivery of further notices to the stockholder is not required. Any action or meeting taken or held without notice to such a stockholder has the same effect as if the notice had been delivered. If any such stockholder delivers to the corporation a written notice setting forth his or her current address, the requirement that notice be delivered to the stockholder is reinstated. If the action taken by the corporation is such as to require the filing of a certificate under any of the other sections of this chapter, the certificate need not state that notice was not delivered to persons to whom notice was not required to be delivered pursuant to this subsection.

 


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to whom notice was not required to be delivered pursuant to this subsection. The delivery of further notices to a stockholder is still required for any notice returned as undeliverable if the notice was delivered by electronic transmission.

      7.  Unless the articles of incorporation or bylaws otherwise require, and except as otherwise provided in this subsection, if a stockholders’ meeting is adjourned to another date, time or place, notice need not be delivered of the date, time or place of the adjourned meeting if they are announced at the meeting at which the adjournment is taken. If a new record date is fixed for [the] an adjourned or postponed meeting, notice of the adjourned or postponed meeting must be delivered to each stockholder of record as of the new record date.

      Sec. 14. NRS 78.433 is hereby amended to read as follows:

      78.433  1.  NRS 78.411 to 78.444, inclusive, do not apply to any combination of a resident domestic corporation:

      (a) Which was not, as of the date that the person first becomes an interested stockholder, a publicly traded corporation, unless the corporation’s articles of incorporation provide otherwise.

      (b) Whose articles of incorporation have been amended to provide that the resident domestic corporation is subject to NRS 78.411 to 78.444, inclusive, and which was not a publicly traded corporation on the effective date of the amendment, if the combination is with a person who first became an interested stockholder before the effective date of the amendment.

      (c) With an interested stockholder of the resident domestic corporation after the expiration of 4 years after the person first became an interested stockholder.

      2.  The articles of incorporation of a resident domestic corporation may impose on combinations of the resident domestic corporation stricter requirements than the requirements of NRS 78.411 to 78.444, inclusive.

      3.  The provisions of NRS 78.411 to 78.444, inclusive, do not restrict the directors of a resident domestic corporation from taking action to protect the interests of the corporation and its stockholders, including, without limitation, adopting or signing plans, arrangements or instruments that grant or deny rights, privileges, power or authority to a holder or holders of a specified number of shares or percentage of share ownership or voting power.

      Sec. 15. NRS 78.438 is hereby amended to read as follows:

      78.438  1.  Except as otherwise provided in NRS 78.433 to 78.437, inclusive, a resident domestic corporation may not engage in any combination with any interested stockholder of the resident domestic corporation for 2 years after the date that the person first became an interested stockholder unless [:] the combination meets all of the requirements of the articles of incorporation of the resident domestic corporation and:

      (a) The combination or the transaction by which the person first became an interested stockholder is approved by the board of directors of the resident domestic corporation before the person first became an interested stockholder; or

      (b) The combination is approved by the board of directors of the resident domestic corporation and, at or after that time, the combination is approved at an annual or special meeting of the stockholders of the resident domestic corporation, and not by written consent, by the affirmative vote of the holders of stock representing at least 60 percent of the outstanding voting power of the resident domestic corporation not beneficially owned by the interested stockholder or the affiliates or associates of the interested stockholder.

 


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corporation, and not by written consent, by the affirmative vote of the holders of stock representing at least 60 percent of the outstanding voting power of the resident domestic corporation not beneficially owned by the interested stockholder or the affiliates or associates of the interested stockholder.

      2.  If a proposal in good faith regarding a combination is made in writing to the board of directors of the resident domestic corporation, the board of directors shall respond, in writing, within 30 days or such shorter period, if any, as may be required by the Securities Exchange Act, setting forth its reasons for its decision regarding the proposal.

      3.  If a proposal in good faith to enter into a transaction by which the person will become an interested stockholder is made in writing to the board of directors of the resident domestic corporation, the board of directors, unless it responds affirmatively in writing within 30 days or such shorter period, if any, as may be required by the Securities Exchange Act, is considered to have disapproved the transaction.

      Sec. 16. NRS 78.439 is hereby amended to read as follows:

      78.439  A resident domestic corporation may not engage in any combination with an interested stockholder of the resident domestic corporation after the expiration of 2 years after the person first became an interested stockholder [other than a] unless the combination [meeting] meets all of the requirements of the articles of incorporation of the resident domestic corporation and : [either the requirements specified in subsection 1, 2 or 3 or all of the requirements specified in NRS 78.441 to 78.444, inclusive:]

      1.  The combination [was approved by the board of directors of the resident domestic corporation before such person first became an interested stockholder.

      2.  The] or transaction by which the person first became an interested stockholder [was] is approved by the board of directors of the resident domestic corporation before the person first became an interested stockholder [.

      3.];

      2.  The combination is approved [at an annual or special meeting of the stockholders of the resident domestic corporation held no earlier than 2 years after the date that the person first became an interested stockholder, and not by written consent,] by [the affirmative vote of the holders of stock representing] a majority of the outstanding voting power of the resident domestic corporation not beneficially owned by the interested stockholder or any affiliate or associate of the interested stockholder [.] ; or

      3.  The combination meets the requirements specified in NRS 78.411 to 78.444, inclusive.

      Sec. 17. NRS 78.441 is hereby amended to read as follows:

      78.441  As an alternative to a combination satisfying the requirements of subsection 1 [,] or 2 [or 3] of NRS 78.439, a combination with an interested stockholder of the resident domestic corporation engaged in more than 2 years after the date that the person first became an interested stockholder is permissible if the requirements of NRS 78.442, 78.443 and 78.444 are satisfied and the aggregate amount of the cash and the market value, as of the date of consummation, of consideration other than cash to be received per share by all of the holders of outstanding common shares of the resident domestic corporation not beneficially owned by such interested stockholder immediately before that date is at least equal to the higher of the following:

 


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resident domestic corporation not beneficially owned by such interested stockholder immediately before that date is at least equal to the higher of the following:

      1.  The highest price per share paid by the interested stockholder, at a time when the interested stockholder was the beneficial owner, directly or indirectly, of 5 percent or more of the outstanding voting shares of the corporation, for any common shares of the same class or series acquired by the interested stockholder within 2 years immediately before the date of announcement with respect to the combination or within 2 years immediately before, or in, the transaction in which the person became an interested stockholder, whichever is higher, plus, in either case, interest compounded annually from the earliest date on which the highest price per share was paid through the date of consummation at the rate for one-year obligations of the United States Treasury in effect on that earliest date, less the aggregate amount of any dividends paid in cash and the market value of any dividends paid other than in cash, per common share since that earliest date.

      2.  The market value per common share on the date of announcement with respect to the combination or on the date that the person first became an interested stockholder, whichever is higher, plus interest compounded annually from that date through the date of consummation at the rate for one-year obligations of the United States Treasury in effect on that date, less the aggregate amount of any dividends paid in cash and the market value of any dividends paid other than in cash, per common share since that date.

      Sec. 18. NRS 78.442 is hereby amended to read as follows:

      78.442  As an alternative to a combination satisfying the requirements of subsection 1 [,] or 2 [or 3] of NRS 78.439, a combination with an interested stockholder of the resident domestic corporation engaged in more than 2 years after the date that the person first became an interested stockholder is permissible if the requirements of NRS 78.441, 78.443 and 78.444 are satisfied and the aggregate amount of the cash and the market value, as of the date of consummation, of consideration other than cash to be received per share by all of the holders of outstanding shares of any class or series of shares, other than common shares, of the resident domestic corporation not beneficially owned by the interested stockholder immediately before that date is at least equal to the highest of the following, whether or not the interested stockholder has previously acquired any shares of the class or series of shares:

      1.  The highest price per share paid by the interested stockholder, at a time when the interested stockholder was the beneficial owner, directly or indirectly, of 5 percent or more of the outstanding voting shares of the corporation, for any shares of that class or series of shares acquired by the interested stockholder within 2 years immediately before the date of announcement with respect to the combination or within 2 years immediately before, or in, the transaction in which the person became an interested stockholder, whichever is higher, plus, in either case, interest compounded annually from the earliest date on which the highest price per share was paid through the date of consummation at the rate for one-year obligations of the United States Treasury in effect on that earliest date, less the aggregate amount of any dividends paid in cash and the market value of any dividends paid other than in cash, per share of the class or series of shares since that earliest date.

 


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      2.  The amount specified in the articles of incorporation of the resident domestic corporation, including in any certificate of designation for the class or series, to which the holders of shares of the class or series of shares are entitled upon the consummation of a transaction of a type encompassing the combination, determined as if the transaction had been consummated on the date of consummation with respect to the combination or on the date that the interested stockholder first became an interested stockholder, whichever is higher or, if the articles of incorporation, including any certificate of designation, do not so provide, the highest preferential amount per share to which the holders of shares of the class or series of shares are entitled in the event of any voluntary liquidation, dissolution or winding up of the resident domestic corporation, plus the aggregate amount of any dividends declared or due to which the holders are entitled before payment of the dividends on some other class or series of shares, unless the aggregate amount of the dividends is included in the preferential amount.

      3.  The market value per share of the class or series of shares on the date of announcement with respect to the combination or on the date that the person first became an interested stockholder, whichever is higher, plus interest compounded annually from that date through the date of consummation at the rate for one-year obligations of the United States Treasury in effect on that date, less the aggregate amount of any dividends paid in cash and the market value of any dividends paid other than in cash, per share of the class or series of shares since that date.

      Sec. 19. NRS 78.444 is hereby amended to read as follows:

      78.444  As an alternative to a combination satisfying the requirements of subsection 1 [,] or 2 [or 3] of NRS 78.439, a combination with an interested stockholder of the resident domestic corporation engaged in more than 2 years after the date that the person first became an interested stockholder is permissible if the requirements of NRS 78.441, 78.442 and 78.443 are satisfied and, after the date that such person first became an interested stockholder and before the date of consummation with respect to the combination, the interested stockholder has not become the beneficial owner of any additional voting shares of the resident domestic corporation except:

      1.  As part of the transaction that resulted in the person becoming an interested stockholder;

      2.  By virtue of any transaction or series of transactions not constituting a combination;

      3.  Through a combination meeting the requirements of NRS 78.439; or

      4.  Through a purchase at any price that, if the price had been paid in an otherwise permissible combination whose date of announcement and date of consummation were the date of the purchase, would have satisfied the requirements of NRS 78.441, 78.442 and 78.443.

      Sec. 20. NRS 78.725 is hereby amended to read as follows:

      78.725  1.  Any corporation organized and existing under the laws of this State on April 1, 1925, may reincorporate under this chapter, either under the same or a different name, by:

      (a) Filing with the Secretary of State a certificate signed by its president and attested by its secretary and duly authorized by a meeting of the stockholders called for that purpose, setting forth the statements required in [an] the original [certificate] articles of incorporation by NRS 78.035; and

 


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      (b) Surrendering the existing charter or [certificate] articles of incorporation of the corporation, and accepting the provisions of this chapter.

      2.  Upon the filing of the certificate, the corporation shall be deemed to be incorporated under this chapter and is entitled to and possesses all the privileges, franchises and powers as if originally incorporated under this chapter. All the properties, rights and privileges theretofore belonging to the corporation, which were acquired by gift, grant, conveyance, assignment or otherwise, are hereby ratified, approved and confirmed and assured to the corporation with like effect and to all intents and purposes as if the same had been originally acquired through incorporation under this chapter.

      3.  Any corporation reincorporating under this chapter is subject to all the contracts, duties and obligations theretofore resting upon the corporation whose charter or [certificate] articles of incorporation [is] are thus surrendered or to which the corporation is then in any way liable.

      Sec. 21. NRS 78A.030 is hereby amended to read as follows:

      78A.030  1.  Any corporation organized under chapter 78 of NRS may become a close corporation pursuant to this chapter by signing, filing and recording, in accordance with NRS 78.390, a certificate of amendment of the [certificate] articles of incorporation which must:

      (a) Contain a statement that the corporation elects to become a close corporation; and

      (b) Meet the requirements of paragraph (a) of subsection 2 of NRS 78A.020.

      2.  Except as otherwise provided in subsection 3, the amendment must be adopted in accordance with the requirements of NRS 78.380 or 78.390.

      3.  If an amendment is adopted in accordance with the requirements of NRS 78.390, it must be approved by a vote of the holders of record of at least two-thirds of the shares of each class of stock of the corporation that are outstanding and entitled to vote, unless the articles of incorporation or bylaws require approval by a greater proportion.

      Sec. 22. NRS 78A.040 is hereby amended to read as follows:

      78A.040  1.  The following statement must appear conspicuously on each share certificate issued by a close corporation:

 

The rights of stockholders in a close corporation may differ materially from the rights of shareholders in other corporations. Copies of the [certificate] articles of incorporation, bylaws, shareholders’ agreements and other records, any of which may restrict transfers of stock and affect voting and other rights, may be obtained by a shareholder on written request to the corporation.

 

      2.  A person claiming an interest in the shares of a close corporation that has complied with the requirement of subsection 1 is bound by the records referred to in the notice. A person claiming an interest in the shares of a close corporation that has not complied with the requirement of subsection 1 is bound by any record that he or she or a person through whom he or she claims has knowledge or notice.

      3.  A close corporation shall provide to any shareholder upon his or her written request and without charge, copies of the provisions that restrict transfer or affect voting or other rights of shareholders appearing in the articles of incorporation, bylaws, shareholders’ agreements or voting trust agreements filed with the corporations.

 


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      4.  Except as otherwise provided in subsection 5, the close corporation may refuse to register the transfer of stock into the name of a person to whom the stock of a close corporation has been transferred if the person has, or is presumed to have, notice that the transfer of the stock is in violation of a restriction on the transfer of stock. If the close corporation refuses to register the transfer of stock into the name of the transferee, the close corporation must notify the transferee of its refusal and state the reasons therefor.

      5.  Subsection 4 does not apply if:

      (a) The transfer of stock, even if contrary to the restrictions on transfer of stock, has been consented to by all the stockholders of the close corporation; or

      (b) The close corporation has amended its [certificate] articles of incorporation in accordance with NRS 78A.180.

      6.  The provisions of this section do not impair any rights of a transferee to:

      (a) Rescind the transaction by which the transferee acquired the stock; or

      (b) Recover under any applicable warranty.

      7.  As used in this section, “transfer” is not limited to a transfer for value.

      Sec. 23. NRS 78A.050 is hereby amended to read as follows:

      78A.050  1.  An interest in the shares of a close corporation may not be transferred, except to the extent permitted by the [certificate] articles of incorporation, the bylaws, a shareholders’ agreement or a voting trust agreement.

      2.  Except as otherwise provided by the [certificate] articles of incorporation, the provisions of this section do not apply to a transfer:

      (a) To the corporation or to any other shareholder of the same class or series of shares.

      (b) To heirs at law.

      (c) That has been approved in writing by all of the holders of the shares of the corporation having voting rights.

      (d) To an executor or administrator upon the death of a shareholder or to a trustee or receiver as a result of a bankruptcy, insolvency, dissolution or similar proceeding brought by or against a shareholder.

      (e) By merger or share exchange or an exchange of existing shares for other shares of a different class or series in the corporation.

      (f) By a pledge as collateral for a loan that does not grant the pledgee any voting rights possessed by the pledgor.

      (g) Made after the termination of the status of the corporation as a close corporation.

      Sec. 24. NRS 78A.080 is hereby amended to read as follows:

      78A.080  A written agreement among stockholders of a close corporation or any provision of the [certificate] articles of incorporation or of the bylaws of the corporation that relates to any phase of the affairs of the corporation, including, but not limited to, the management of its business, the declaration and payment of dividends or other division of profits, the election of directors or officers, the employment of stockholders by the corporation or the arbitration of disputes is not invalid on the ground that it is an attempt by the parties to the agreement or by the stockholders of the corporation to treat the corporation as if it were a partnership or to arrange relations among the stockholders or between the stockholders and the corporation in a manner that would be appropriate only among partners.

 


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      Sec. 25. NRS 78A.090 is hereby amended to read as follows:

      78A.090  1.  A close corporation may operate without a board of directors if the [certificate] articles of incorporation [contains] contain a statement to that effect.

      2.  An amendment to the [certificate] articles of incorporation eliminating a board of directors must be approved:

      (a) By all the shareholders of the corporation, whether or not otherwise entitled to vote on amendments; or

      (b) If no shares have been issued, by all subscribers for shares, if any, or if none, by the incorporators.

      3.  While a corporation is operating without a board of directors as authorized by subsection 1:

      (a) All corporate powers must be exercised by or under the authority of, and the business and affairs of the corporation managed under the direction of, the shareholders.

      (b) Unless the articles of incorporation provide otherwise:

             (1) Action requiring the approval of the board of directors or of both the board of directors and the shareholders is authorized if approved by the shareholders; and

             (2) Action requiring a majority or greater percentage vote of the board of directors is authorized if approved by the majority or greater percentage of votes of the shareholders entitled to vote on the action.

      (c) A requirement by a state or the United States that a record delivered for filing contain a statement that specified action has been taken by the board of directors is satisfied by a statement that the corporation is a close corporation without a board of directors and that the action was approved by the shareholders.

      (d) The shareholders by resolution may appoint one or more shareholders to sign records as designated directors.

      4.  An amendment to the articles of incorporation that deletes the provision which eliminates a board of directors must be approved by the holders of at least two-thirds of the votes of each class or series of shares of the corporation, voting as separate voting groups, whether or not otherwise entitled to vote on amendments. The amendment must specify the number, names and mailing addresses of the directors of the corporation or describe who will perform the duties of the board of directors.

      Sec. 26. NRS 78A.140 is hereby amended to read as follows:

      78A.140  1.  Upon application of a stockholder, the court may appoint one or more persons to be custodians and, if the corporation is insolvent, to be receivers of any close corporation when:

      (a) The business and affairs of the close corporation are managed by the stockholders who are so divided that the business of the corporation is suffering or is threatened with irreparable injury and any remedy with respect to such a deadlock provided in the [certificate] articles of incorporation or bylaws or in any written agreement of the stockholders has failed; or

      (b) The petitioning stockholder has the right to the dissolution of the corporation under a provision of the [certificate] articles of incorporation permitted by NRS 78A.160.

      2.  If the court determines that it would be in the best interest of the corporation, the court may appoint a provisional director in lieu of appointing a custodian or receiver for a close corporation. Such an appointment does not preclude any subsequent order of the court appointing a custodian or receiver for the corporation.

 


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appointment does not preclude any subsequent order of the court appointing a custodian or receiver for the corporation.

      Sec. 27. NRS 78A.150 is hereby amended to read as follows:

      78A.150  1.  Notwithstanding any contrary provision of the [certificate] articles of incorporation, the bylaws or an agreement of the stockholders, the court may appoint a provisional director for a close corporation if the shareholders or directors, if any, are so divided concerning the management of the business and affairs of the corporation that the votes required for action by the board of directors cannot be obtained, with the consequence that the business and affairs of the corporation cannot be conducted to the advantage of the stockholders generally.

      2.  An application for relief pursuant to this section must be filed:

      (a) By at least one-half of the number of directors then in office;

      (b) By the holders of at least one-third of all stock then entitled to elect directors; or

      (c) If there is more than one class of stock then entitled to elect one or more directors, by the holders of two-thirds of the stock of each class.

Ê The [certificate] articles of incorporation of a close corporation may provide that a lesser proportion of the directors, the stockholders or a class of stockholders may apply for relief under this section.

      3.  A provisional director:

      (a) Must be an impartial person who is not a stockholder or a creditor of the corporation or of any subsidiary or affiliate of the corporation and whose further qualifications, if any, may be determined by the court.

      (b) Is not a custodian or receiver of the corporation and does not have the title and powers of a custodian or receiver appointed under NRS 78A.140.

      (c) Has the rights and powers of an elected director of the corporation, including the right to notice of and to vote at meetings of directors, until such time as the provisional director may be removed by order of the court.

      4.  The compensation of a provisional director must be determined by agreement between the provisional director and the corporation subject to the approval of the court, which may fix the compensation in the absence of agreement or in the event of disagreement between the provisional director and the corporation.

      Sec. 28. NRS 78A.160 is hereby amended to read as follows:

      78A.160  1.  The [certificate] articles of incorporation of any close corporation may include a provision granting to any stockholder or to the holder of any specified number or percentage of shares of any class of stock an option to have the corporation dissolved at will or upon the occurrence of any specified event or contingency. Whenever any option to dissolve is exercised, the stockholders who exercise the option shall give written notice thereof to all other stockholders. Thirty days after the notice is sent, the dissolution of the corporation must proceed as if the required number of stockholders having voting power consented in writing to dissolution of the corporation as provided by NRS 78.320.

      2.  If the [certificate] articles of incorporation as originally filed [does] do not contain a provision authorized by subsection 1, the [certificate] articles may be amended to include such a provision if adopted by the affirmative vote of the holders of all the outstanding stock, whether or not otherwise entitled to vote, unless the [certificate] articles of incorporation specifically [authorizes] authorize such an amendment by a vote which is not less than two-thirds of all the outstanding stock, whether or not otherwise entitled to vote.

 


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specifically [authorizes] authorize such an amendment by a vote which is not less than two-thirds of all the outstanding stock, whether or not otherwise entitled to vote.

      3.  Each stock certificate in any corporation whose [certificate] articles of incorporation [authorizes] authorize dissolution as permitted by this section must conspicuously note on the face of the certificate the existence of the provision or the provision is ineffective.

      Sec. 29. NRS 78A.170 is hereby amended to read as follows:

      78A.170  A close corporation is subject to the provisions of this chapter until:

      1.  The corporation files with the Secretary of State a certificate of amendment deleting from the [certificate] articles of incorporation the provisions required or permitted by NRS 78A.020, to be stated in the [certificate] articles of incorporation; or

      2.  A provision or condition required or permitted by NRS 78A.020 to be stated in [a certificate] the articles of incorporation has been breached and the corporation or any stockholder has not acted pursuant to NRS 78A.190 to prevent the loss of status or remedy the breach.

      Sec. 30. NRS 78A.180 is hereby amended to read as follows:

      78A.180  1.  A corporation may voluntarily terminate its status as a close corporation, and cease to be subject to the provisions of this chapter, by amending the [certificate] articles of incorporation to delete therefrom the additional provisions required or permitted by NRS 78A.020 to be stated in the [certificate] articles of incorporation of a close corporation. An amendment must be adopted and become effective in accordance with NRS 78.390, except that it must be approved by a vote of the holders of record of at least two-thirds of the voting shares of each class of stock of the corporation that are outstanding.

      2.  The [certificate] articles of incorporation of a close corporation may provide that on any amendment to terminate the status as a close corporation, a vote greater than two-thirds or a vote of all shares of any class may be required. If the [certificate] articles of incorporation [contains] contain such a provision, that provision may not be amended, repealed or modified by any vote less than that required to terminate the status of the corporation as a close corporation.

      3.  [A certificate] An amendment filed pursuant to this section is effective at the time of the filing of the [certificate] amendment with the Secretary of State or upon a later date and time as specified in the [certificate,] amendment, which date must not be more than 90 days after the date on which the [certificate] amendment is filed. If the [certificate] amendment specifies a later effective date but does not specify an effective time, the [certificate] amendment becomes effective at 12:01 a.m. in the Pacific time zone on the specified later date.

      Sec. 31. NRS 78A.190 is hereby amended to read as follows:

      78A.190  1.  The status of a corporation as a close corporation terminates if one or more of the provisions or conditions of this chapter cease to exist or be fulfilled unless:

      (a) Within 30 days after the occurrence of the event, or within 30 days after the event has been discovered by the corporation, whichever is later, the corporation files with the Secretary of State a signed certificate stating that a specified provision or condition included in the [certificate] articles of incorporation to qualify the corporation as a close corporation has ceased to be applicable and furnishes a copy of the certificate to each stockholder; and

 


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incorporation to qualify the corporation as a close corporation has ceased to be applicable and furnishes a copy of the certificate to each stockholder; and

      (b) The corporation, concurrently with the filing of a certificate, takes such steps as are necessary to correct the situation that threatens the status as a close corporation, including the refusal to register the transfer of stock which has been wrongfully transferred as provided by NRS 78A.050 or commencing a proceeding under subsection 2.

      2.  Upon the suit of the close corporation or any stockholder, the court has jurisdiction to:

      (a) Issue all orders necessary to prevent the corporation from losing its status as a close corporation.

      (b) Restore the status of the corporation as a close corporation by enjoining or setting aside any act or threatened act on the part of the corporation or a stockholder that would be inconsistent with any of the provisions or conditions required or permitted by this chapter to be stated in the [certificate] articles of incorporation of a close corporation, unless it is an act approved in accordance with NRS 78A.050.

      (c) Enjoin or set aside any transfer or threatened transfer of stock of a close corporation that is contrary to the terms of the [certificate] articles of incorporation or of any permitted restriction on transfer.

      (d) Enjoin any public offering or threatened public offering of stock of the close corporation.

      Sec. 32. NRS 86.201 is hereby amended to read as follows:

      86.201  1.  A limited-liability company is considered legally organized pursuant to this chapter:

      (a) At the time of the filing of the articles of organization with the Secretary of State ; [, upon a later date and time as specified in the articles, which date must not be more than 90 days after the date on which the articles are filed or, if the articles specify a later effective date but do not specify an effective time, at 12:01 a.m. in the Pacific time zone on the specified later date, whichever is applicable;] and

      (b) Upon paying the required filing fees to the Secretary of State.

      2.  A limited-liability company must not transact business or incur indebtedness, except that which is incidental to its organization or to obtaining subscriptions for or payment of contributions, until the company is considered legally organized pursuant to subsection 1.

      3.  A limited-liability company is an entity distinct from its managers and members.

      Sec. 33. NRS 86.286 is hereby amended to read as follows:

      86.286  1.  A limited-liability company may, but is not required to, adopt an operating agreement. An operating agreement may be adopted only by the unanimous vote or unanimous written consent of the members, which may be in any tangible or electronic format, or by the sole member. If any operating agreement provides for the manner in which it may be amended, including by requiring the approval of a person who is not a party to the operating agreement or the satisfaction of conditions, it may be amended only in that manner or as otherwise permitted by law and any attempt to otherwise amend the operating agreement shall be deemed void and of no legal force or effect unless otherwise provided in the operating agreement. Unless otherwise provided in the operating agreement, amendments to the agreement may be adopted only by the unanimous vote or unanimous written consent of the persons who are members at the time of amendment.

 


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      2.  An operating agreement may be adopted before, after or at the time of the filing of the articles of organization and, whether entered into before, after or at the time of the filing, may become effective at the formation of the limited-liability company or at a later date specified in the operating agreement. If an operating agreement is adopted:

      (a) Before the filing of the articles of organization or before the effective date of formation specified in the articles of organization, the operating agreement is not effective until the effective date of formation of the limited-liability company.

      (b) After the filing of the articles of organization or after the effective date of formation specified in the articles of organization, the operating agreement binds the limited-liability company and may be enforced whether or not the limited-liability company assents to the operating agreement.

      3.  An operating agreement may provide that a certificate of limited-liability company interest issued by the limited-liability company may evidence a member’s interest in a limited-liability company.

      4.  An operating agreement:

      (a) May provide, but is not required to provide : [to any person, including a person who is not a party to the operating agreement, to the extent set forth therein:]

             (1) Rights to any person, including a person who is not a party to the operating agreement, to the extent set forth therein;

             (2) For the admission of any person as a member of the company dependent upon any fact or event that may be ascertained outside the articles of organization or the operating agreement, if the manner in which the fact or event may operate on the determination of the person or the admission of the person as a member of the company is set forth in the articles of organization or the operating agreement;

             (3) That the personal representative of the last remaining member is obligated to agree in writing to the admission of the personal representative, or its nominee or designee, as a member of the company effective upon the occurrence of the event that terminated the last remaining member’s status as a member of the company;

             (4) For the admission of any person as a member of the company upon or after the death, retirement, resignation, expulsion, bankruptcy, dissolution or dissociation of, or any other event affecting, a member or the last remaining member, or after there is no longer a member of the company; or

             (5) Any other provision, not inconsistent with law or the articles of organization, which the members elect to set out in the operating agreement for the regulation of the internal affairs of the company.

      (b) Must be interpreted and construed to give the maximum effect to the principle of freedom of contract and enforceability.

      5.  If, and to the extent that, a member or manager or other person has duties to a limited-liability company, to another member or manager, or to another person that is a party to or is otherwise bound by the operating agreement, such duties may be expanded, restricted or eliminated by provisions in the operating agreement, except that an operating agreement may not eliminate the implied contractual covenant of good faith and fair dealing.

      6.  Unless otherwise provided in an operating agreement, a member, manager or other person is not liable for breach of duties, if any, to a limited-liability company, to any of the members or managers or to another person that is a party to or otherwise bound by the operating agreement for conduct undertaken in the member’s, manager’s or other person’s good faith reliance on the provisions of the operating agreement.

 


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limited-liability company, to any of the members or managers or to another person that is a party to or otherwise bound by the operating agreement for conduct undertaken in the member’s, manager’s or other person’s good faith reliance on the provisions of the operating agreement.

      7.  An operating agreement may provide for the limitation or elimination of any and all liabilities for breach of contract and breach of duties, if any, of a member, manager or other person to a limited-liability company, to any of the members or managers, or to another person that is a party to or is otherwise bound by the operating agreement. An operating agreement may not limit or eliminate liability for any conduct that constitutes a bad faith violation of the implied contractual covenant of good faith and fair dealing.

      8.  The Secretary of State may make available a model operating agreement for use by and at the discretion of a limited-liability company according to such terms and limitations as established by the Secretary of State. The use of such an operating agreement does not create a presumption that the contents of the operating agreement are accurate or that the operating agreement is valid.

      Sec. 34. NRS 87A.235 is hereby amended to read as follows:

      87A.235  1.  In order for a limited partnership to be formed, a certificate of limited partnership must be delivered to the Secretary of State for filing. The certificate must state:

      (a) The name of the limited partnership;

      (b) The information required pursuant to NRS 77.310;

      (c) The name and the street and mailing address of each general partner;

      (d) Any additional information required by chapter 92A of NRS; and

      (e) If the limited partnership is to be a restricted limited partnership, a statement to that effect.

      2.  A certificate of limited partnership may also contain any other matters but may not vary or otherwise affect the provisions specified in subsection 2 of NRS 87A.190 in a manner inconsistent with that section.

      3.  If there has been substantial compliance with subsection 1, a limited partnership is formed on [the later of] the filing of the certificate of limited partnership . [or a date specified in the certificate of limited partnership.]

      4.  Subject to subsection 2, if any provision of a partnership agreement is inconsistent with the filed certificate of limited partnership or with a filed certificate of withdrawal, certificate of cancellation or statement of change or filed articles of conversion or merger:

      (a) The partnership agreement prevails as to partners and transferees; and

      (b) The filed certificate of limited partnership, certificate of withdrawal, certificate of cancellation or statement of change or articles of conversion or merger prevail as to persons, other than partners and transferees, that reasonably rely on the filed record to their detriment.

      Sec. 35. NRS 88.350 is hereby amended to read as follows:

      88.350  1.  In order to form a limited partnership, a certificate of limited partnership must be signed and filed in the Office of the Secretary of State. The certificate must set forth:

      (a) The name of the limited partnership;

      (b) The information required pursuant to NRS 77.310;

      (c) The name and business address of each organizer executing the certificate;

      (d) The name and business address of each initial general partner;

 


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      (e) The latest date upon which the limited partnership is to dissolve;

      (f) If the limited partnership is to be a restricted limited partnership, a statement to that effect; and

      (g) Any other matters the organizers determine to include therein.

      2.  A limited partnership is formed at the time of the filing of the certificate of limited partnership in the Office of the Secretary of State [or at any later time specified in the certificate of limited partnership] if there has been substantial compliance with the requirements of this section.

      Sec. 36. NRS 92A.180 is hereby amended to read as follows:

      92A.180  1.  A parent domestic corporation, whether or not for profit, parent domestic limited-liability company, unless otherwise provided in the articles of organization or operating agreement, or parent domestic limited partnership owning at least 90 percent of the outstanding shares of each class of a subsidiary corporation entitled to vote on a merger, 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited-liability company then owned by each class of members entitled to vote on a merger or 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general partners and each class of limited partners entitled to vote on a merger may merge the subsidiary into itself without approval of the owners of the owner’s interests of the parent domestic corporation, parent domestic limited-liability company or parent domestic limited partnership or the owners of the owner’s interests of the subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.

      2.  A parent domestic corporation, whether or not for profit, parent domestic limited-liability company, unless otherwise provided in the articles of organization or operating agreement, or parent domestic limited partnership owning at least 90 percent of the outstanding shares of each class of a subsidiary corporation entitled to vote on a merger, 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited-liability company then owned by each class of members entitled to vote on a merger, or 90 percent of the percentage or other interest in the capital and profits of a subsidiary limited partnership then owned by both the general partners and each class of limited partners entitled to vote on a merger may merge with and into the subsidiary without approval of the owners of the owner’s interests of the subsidiary domestic corporation, subsidiary domestic limited-liability company or subsidiary domestic limited partnership.

      3.  The board of directors of a parent corporation, the managers of a parent limited-liability company with managers unless otherwise provided in the operating agreement, all members of a parent limited-liability company without managers unless otherwise provided in the operating agreement, or all general partners of a parent limited partnership shall adopt a plan of merger that sets forth:

      (a) The names of the parent and subsidiary; and

      (b) The manner and basis of converting the owner’s interests of the disappearing entity into the owner’s interests, obligations or other securities of the surviving or any other entity or into cash or other property in whole or in part.

      4.  The [parent] surviving entity shall mail a copy or summary of the plan of merger to each owner of the subsidiary who does not waive the mailing requirement in writing.

 


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      5.  Articles of merger under this section may not contain amendments to the constituent documents of the surviving entity except that the name of the surviving entity may be changed.

      6.  The articles of incorporation of a domestic corporation, the articles of organization of a domestic limited-liability company, the certificate of limited partnership of a domestic limited partnership or the certificate of trust of a domestic business trust may forbid that entity from entering into a merger pursuant to this section.

      Sec. 37. NRS 92A.250 is hereby amended to read as follows:

      92A.250  1.  When a merger takes effect:

      (a) Every other entity that is a constituent entity merges into the surviving entity and the separate existence of every entity except the surviving entity ceases;

      (b) The title to all real estate and other property owned by each merging constituent entity is vested in the surviving entity without reversion or impairment;

      (c) An owner of a constituent entity remains liable for all the obligations of such constituent entity existing at the time of the merger to the extent the owner was liable before the merger;

      (d) The surviving entity has all of the liabilities of each other constituent entity;

      [(d)](e) A proceeding pending against any constituent entity may be continued as if the merger had not occurred or the surviving entity may be substituted in the proceeding for the entity whose existence has ceased;

      [(e)](f) The articles of incorporation, articles of organization, certificate of limited partnership or certificate of trust of the surviving entity are amended to the extent provided in the plan of merger; and

      [(f)](g) The owner’s interests of each constituent entity that are to be converted into owner’s interests, obligations or other securities of the surviving or any other entity or into cash or other property are converted, and the former holders of the owner’s interests are entitled only to the rights provided in the articles of merger or any created pursuant to NRS 92A.300 to 92A.500, inclusive.

      2.  When an exchange takes effect, the owner’s interests of each acquired entity are exchanged as provided in the plan, and the former holders of the owner’s interests are entitled only to the rights provided in the articles of exchange or any rights created pursuant to NRS 92A.300 to 92A.500, inclusive.

      3.  When a conversion takes effect:

      (a) The constituent entity is converted into the resulting entity and is governed by and subject to the law of the jurisdiction of the resulting entity;

      (b) The conversion is a continuation of the existence of the constituent entity;

      (c) The title to all real estate and other property owned by the constituent entity is vested in the resulting entity without reversion or impairment;

      (d) The resulting entity has all the liabilities of the constituent entity;

      (e) A proceeding pending against the constituent entity may be continued as if the conversion had not occurred or the resulting entity may be substituted in the proceeding for the constituent entity;

 


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      (f) The owner’s interests of the constituent entity that are to be converted into the owner’s interests of the resulting entity are converted;

      (g) An owner of the resulting entity remains liable for all the obligations of the constituent entity existing at the time of the conversion to the extent the owner was [personally] liable before the conversion; and

      (h) The domestic constituent entity is not required to wind up its affairs, pay its liabilities, distribute its assets or dissolve, and the conversion is not deemed a dissolution of the domestic constituent entity.

      Sec. 38. NRS 240.1655 is hereby amended to read as follows:

      240.1655  1.  A notarial act must be evidenced by a certificate that:

      (a) Identifies the county, including, without limitation, Carson City, in this State in which the notarial act was performed in substantially the following form:

 

State of Nevada

County of ...............................................

 

      (b) Except as otherwise provided in this paragraph, includes the name of the person whose signature is being notarized. If the certificate is for certifying a copy of a document, the certificate must include the name of the person presenting the document. If the certificate is for the jurat of a subscribing witness, the certificate must include the name of the subscribing witness.

      (c) Is signed and dated in ink by the notarial officer performing the notarial act. [The] If the notarial officer is a notary public, the certificate must be signed in the same manner as the signature of the notarial officer that is on file with the Secretary of State.

      (d) If the notarial officer performing the notarial act is a notary public, includes the statement imprinted with the stamp of the notary public, as described in NRS 240.040.

      (e) If the notarial officer performing the notarial act is not a notary public, includes the title of the office of the notarial officer and may include the official stamp or seal of that office. If the officer is a commissioned officer on active duty in the military service of the United States, the certificate must also include the officer’s rank.

      2.  Except as otherwise provided in subsection 8, a notarial officer shall:

      (a) In taking an acknowledgment, determine, from personal knowledge or satisfactory evidence, that the person making the acknowledgment is the person whose signature is on the document. The person who signed the document shall present the document to the notarial officer in person.

      (b) In administering an oath or affirmation, determine, from personal knowledge or satisfactory evidence, the identity of the person taking the oath or affirmation.

      (c) In certifying a copy of a document, photocopy the entire document and certify that the photocopy is a true and correct copy of the document that was presented to the notarial officer.

      (d) In making or noting a protest of a negotiable instrument, verify compliance with the provisions of subsection 2 of NRS 104.3505.

      (e) In executing a jurat, administer an oath or affirmation to the affiant and determine, from personal knowledge or satisfactory evidence, that the affiant is the person named in the document. The affiant shall sign the document in the presence of the notarial officer.

 


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document in the presence of the notarial officer. The notarial officer shall administer the oath or affirmation required pursuant to this paragraph in substantially the following form:

 

       Do you (solemnly swear, or affirm) that the statements in this document are true, (so help you God)?

 

      3.  A certificate of a notarial act is sufficient if it meets the requirements of subsections 1 and 2 and it:

      (a) Is in the short form set forth in NRS 240.166 to 240.169, inclusive;

      (b) Is in a form otherwise prescribed by the law of this State;

      (c) Is in a form prescribed by the laws or regulations applicable in the place in which the notarial act was performed; or

      (d) Sets forth the actions of the notarial officer and those are sufficient to meet the requirements of the designated notarial act.

      4.  For the purposes of paragraphs (a), (b) and (e) of subsection 2, a notarial officer has satisfactory evidence that a person is the person whose signature is on a document if the person:

      (a) Is personally known to the notarial officer;

      (b) Is identified upon the oath or affirmation of a credible witness who personally appears before the notarial officer;

      (c) Is identified on the basis of an identifying document which contains a signature and a photograph;

      (d) Is identified on the basis of a consular identification card;

      (e) Is identified upon an oath or affirmation of a subscribing witness who is personally known to the notarial officer; or

      (f) In the case of a person who is 65 years of age or older and cannot satisfy the requirements of paragraphs (a) to (e), inclusive, is identified upon the basis of an identification card issued by a governmental agency or a senior citizen center.

      5.  An oath or affirmation administered pursuant to paragraph (b) of subsection 4 must be in substantially the following form:

 

       Do you (solemnly swear, or affirm) that you personally know ………(name of person who signed the document)………, (so help you God)?

 

      6.  A notarial officer shall not affix his or her signature over printed material.

      7.  By executing a certificate of a notarial act, the notarial officer certifies that the notarial officer has complied with all the requirements of this section.

      8.  If a person is physically unable to sign a document that is presented to a notarial officer pursuant to this section, the person may direct a person other than the notarial officer to sign the person’s name on the document. The notarial officer shall insert “Signature affixed by (insert name of other person) at the direction of (insert name of person)” or words of similar import.

      9.  As used in this section, unless the context otherwise requires, “consular identification card” means an identification card issued by a consulate of a foreign government, which consulate is located within the State of Nevada.

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CHAPTER 515, SB 482

Senate Bill No. 482–Committee on Government Affairs

 

CHAPTER 515

 

[Approved: June 10, 2015]

 

AN ACT relating to public officers; increasing the compensation of elected county officers except in certain circumstances; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law sets forth the annual compensation to be paid to district attorneys, sheriffs, county clerks, county assessors, county recorders, county treasurers and public administrators. (NRS 245.043) This bill increases the annual compensation for those officers by 3 percent each fiscal year for Fiscal Years 2015-2016, 2016-2017, 2017-2018 and 2018-2019, unless the board of county commissioners determines that sufficient financial resources are not available to pay the increased salaries.

      Existing law authorizes each board of county commissioners, by a majority vote of all the members of the board to set the members’ annual salary within certain statutory limitations. (NRS 245.043) This bill: (1) eliminates this authority; and (2) sets forth the salaries for members for Fiscal Years 2015-2016, 2016-2017, 2017-2018 and 2018-2019. The salaries are increased by 3 percent in each fiscal year, unless the board of county commissioners determines that sufficient financial resources are not available to pay the increased salaries.

      This bill also authorizes an elected officer, including a county commissioner, to elect not to receive any part of the salary to which he or she is entitled.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. NRS 245.043 is hereby amended to read as follows:

      245.043  1.  As used in this section:

      (a) “County” includes Carson City.

      (b) “County commissioner” includes the Mayor and supervisors of Carson City.

      2.  Except as otherwise provided in subsection 5 and by any special law, the elected officers of the counties of this State are entitled to receive, for the appropriate fiscal year, annual salaries in the base amounts specified in the following table [.] commencing on July 1 of the fiscal year. The annual salaries are in full payment for all services required by law to be performed by such officers. Except as otherwise provided by law, all fees and commissions collected by such officers in the performance of their duties must be paid into the county treasury each month without deduction of any nature.

 


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ANNUAL SALARIES

 

                                                  District                               County       County       County          County           Public

Class     County                   Attorney         Sheriff          Clerk       Assessor    Recorder       Treasurer   Administrator

 

      1       Clark

[             FY 2007-2008 $166,647   $143,661     $97,518     $97,518     $97,518        $97,518           $97,518

              FY 2008-2009      171,647     147,971     100,443     100,443     100,443        100,443        100,443

              FY 2009-2010      176,796     152,410     103,456     103,456     103,456        103,456        103,456

              FY 2010-2011      182,100     156,983     106,560     106,560     106,560        106,560       106,560]

              FY 2015-2016    $187,563   $161,692   $109,757   $109,757   $109,757      $109,757      $109,757

              FY 2016-2017      193,190     166,543     113,050     113,050     113,050        113,050        113,050

              FY 2017-2018      198,986     171,540     116,441     116,441     116,441        116,441        116,441

              FY 2018-2019      204,955     176,685     119,934     119,934     119,934        119,934        119,934

      2    Washoe

[             FY 2007-2008      147,109     118,376        89,391        89,391        89,391           89,391           89,391

              FY 2008-2009      151,522     121,928        92,073        92,073        92,073           92,073           92,073

              FY 2009-2010      156,068     125,585        94,835        94,835        94,835           94,835           94,835

              FY 2010-2011      160,750     129,353        97,680        97,680        97,680           97,680         97,680]

              FY 2015-2016      165,573     133,234     100,610     100,610     100,610        100,610        100,610

              FY 2016-2017      170,540     137,231     103,629     103,629     103,629        103,629        103,629

              FY 2017-2018      175,656     141,348     106,738     106,738     106,738        106,738        106,738

              FY 2018-2019      180,926     145,588     109,940     109,940     109,940        109,940        109,940

      3    Carson City

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Churchill

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Douglas

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Elko

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Humboldt

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Lyon

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

 


…………………………………………………………………………………………………………………

ê2015 Statutes of Nevada, Page 3248 (Chapter 515, SB 482)ê

 

                                                  District                               County       County       County          County           Public

Class     County                   Attorney         Sheriff          Clerk       Assessor    Recorder       Treasurer   Administrator

 

            Lyon

              FY 2015-2016    $118,872     $98,567     $78,293     $78,293     $78,293        $78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

            Nye

[             FY 2007-2008      105,616        87,575        69,563        69,563        69,563           69,563            --------

              FY 2008-2009      108,785        90,202        71,650        71,650        71,650           71,650            --------

              FY 2009-2010      112,049        92,909        73,799        73,799        73,799           73,799            --------

              FY 2010-2011      115,410        95,696        76,013        76,013        76,013           76,013           --------]

              FY 2015-2016      118,872        98,567        78,293        78,293        78,293           78,293            --------

              FY 2016-2017      122,438     101,524        80,642        80,642        80,642           80,642            --------

              FY 2017-2018      126,112     104,570        83,061        83,061        83,061           83,061            --------

              FY 2018-2019      129,895     107,707        85,553        85,553        85,553           85,553            --------

      4    Lander

[             FY 2007-2008         99,749        78,818        58,023        58,023        58,023           58,023            --------

              FY 2008-2009      102,741        81,183        59,764        59,764        59,764           59,764            --------

              FY 2009-2010      105,823        83,618        61,556        61,556        61,556           61,556            --------

              FY 2010-2011      108,998        86,127        63,403        63,403        63,403           63,403           --------]

              FY 2015-2016      112,268        88,711        65,305        65,305        65,305           65,305            --------

              FY 2016-2017      115,636        91,372        67,264        67,264        67,264           67,264            --------

              FY 2017-2018      119,105        94,113        69,282        69,282        69,282           69,282            --------

              FY 2018-2019      122,678        96,937        71,361        71,361        71,361           71,361            --------

            Storey

[             FY 2007-2008         99,749        78,818        58,023        58,023        58,023           58,023            --------

              FY 2008-2009      102,741        81,183        59,764        59,764        59,764           59,764            --------

              FY 2009-2010      105,823        83,618        61,556        61,556        61,556           61,556            --------

              FY 2010-2011      108,998        86,127        63,403        63,403        63,403           63,403           --------]

              FY 2015-2016      112,268        88,711        65,305        65,305        65,305           65,305            --------

              FY 2016-2017      115,636        91,372        67,264        67,264        67,264           67,264            --------

              FY 2017-2018      119,105        94,113        69,282        69,282        69,282           69,282            --------

              FY 2018-2019      122,678        96,937        71,361        71,361        71,361           71,361            --------

            White Pine

[             FY 2007-2008         99,749        78,818        58,023        58,023        58,023           58,023            --------

              FY 2008-2009      102,741        81,183        59,764        59,764        59,764           59,764            --------

              FY 2009-2010      105,823        83,618        61,556        61,556        61,556           61,556            --------

              FY 2010-2011      108,998        86,127        63,403        63,403        63,403           63,403           --------]

              FY 2015-2016      112,268        88,711        65,305        65,305        65,305           65,305            --------

              FY 2016-2017      115,636        91,372        67,264        67,264        67,264           67,264            --------

              FY 2017-2018      119,105        94,113        69,282        69,282        69,282           69,282            --------

              FY 2018-2019      122,678        96,937        71,361        71,361        71,361           71,361            --------

      5    Eureka

[             FY 2007-2008         88,014        63,054        52,009        52,009        52,009           52,009            --------

              FY 2008-2009         90,654        64,946        53,570        53,570        53,570           53,570            --------

              FY 2009-2010         93,374        66,894        55,177        55,177        55,177           55,177            --------

              FY 2010-2011         96,175        68,901        56,832        56,832        56,832           56,832           --------]

              FY 2015-2016         99,060        70,968        58,537        58,537        58,537           58,537            --------

              FY 2016-2017      102,033        73,097        60,293        60,293        60,293           60,293            --------

              FY 2017-2018      105,093        75,290        62,102        62,102        62,102           62,102            --------

              FY 2018-2019      108,246        77,549        63,965        63,965        63,965           63,965            --------

            Lincoln

[             FY 2007-2008         88,014        63,054        52,009        52,009        52,009           52,009            --------

              FY 2008-2009         90,654        64,946        53,570        53,570        53,570           53,570            --------

              FY 2009-2010         93,374        66,894        55,177        55,177        55,177           55,177            --------

              FY 2010-2011         96,175        68,901        56,832        56,832        56,832           56,832           --------]

              FY 2015-2016         99,060        70,968        58,537        58,537        58,537           58,537            --------

              FY 2016-2017      102,033        73,097        60,293        60,293        60,293           60,293            --------

              FY 2017-2018      105,093        75,290        62,102        62,102        62,102           62,102            --------

              FY 2018-2019      108,246        77,549        63,965        63,965        63,965           63,965            --------

            Mineral

[             FY 2007-2008         88,014        63,054        52,009        52,009        52,009           52,009            --------

              FY 2008-2009         90,654        64,946        53,570        53,570        53,570           53,570            --------

              FY 2009-2010         93,374        66,894        55,177        55,177        55,177           55,177            --------

              FY 2010-2011         96,175        68,901        56,832        56,832        56,832           56,832           --------]

              FY 2015-2016         99,060        70,968        58,537        58,537        58,537           58,537            --------

              FY 2016-2017      102,033        73,097        60,293        60,293        60,293           60,293            --------

              FY 2017-2018      105,093        75,290        62,102        62,102        62,102           62,102            --------

              FY 2018-2019      108,246        77,549        63,965        63,965        63,965           63,965            --------

            Pershing

[             FY 2007-2008         88,014        63,054        52,009        52,009        52,009           52,009            --------

              FY 2008-2009         90,654        64,946        53,570        53,570        53,570           53,570              -------

 


…………………………………………………………………………………………………………………

ê2015 Statutes of Nevada, Page 3249 (Chapter 515, SB 482)ê

 

                                                  District                               County       County       County          County           Public

Class     County                   Attorney         Sheriff          Clerk       Assessor    Recorder       Treasurer   Administrator

 

            Pershing

              FY 2009-2010         93,374        66,894        55,177        55,177        55,177           55,177            --------

              FY 2010-2011         96,175        68,901        56,832        56,832        56,832           56,832           --------]

              FY 2015-2016      $99,060     $70,968     $58,537     $58,537     $58,537        $58,537            --------

              FY 2016-2017      102,033        73,097        60,293        60,293        60,293           60,293            --------

              FY 2017-2018      105,093        75,290        62,102        62,102        62,102           62,102            --------

              FY 2018-2019      108,246        77,549        63,965        63,965        63,965           63,965            --------

      6    Esmeralda

[             FY 2007-2008         69,886        56,049        45,508        45,508        45,508            --------            --------

              FY 2008-2009         71,983        57,730        46,873        46,873        46,873            --------            --------

              FY 2009-2010         74,142        59,462        48,280        48,280        48,280            --------            --------

              FY 2010-2011         76,366        61,246        49,728        49,728        49,728            --------           --------]

              FY 2015-2016         78,657        63,083        51,220        51,220        51,220            --------            --------

              FY 2016-2017         81,017        64,976        52,756        52,756        52,756            --------            --------

              FY 2017-2018         83,447        66,926        54,339        54,339        54,339            --------            --------

              FY 2018-2019         85,951        68,933        55,969        55,969        55,969            --------            --------

 

Ê Except as otherwise provided in subsection 5, the annual salaries set forth in this subsection for Fiscal Year 2018-2019 are effective for that fiscal year and each fiscal year thereafter.

      3.  [A board of county commissioners may, by a vote of at least a majority of all the members of the board, set the] Except as otherwise provided in subsection 5, the annual salary for [the] county commissioners [of that county, but in no event may the annual salary exceed an amount which equals:] commencing on July 1 of the fiscal year is:

      (a) For Fiscal Year [2007-2008, 131.716] 2015-2016, 103.00 percent;

      (b) For Fiscal Year [2008-2009, 136.985] 2016-2017, 106.09 percent;

      (c) For Fiscal Year [2009-2010, 142.464] 2017-2018, 109.273 percent; and

      (d) For Fiscal Year [2010-2011, 148.163] 2018-2019 and each fiscal year thereafter, 112.551 percent,

Ê of the amount of the annual salary for the county commissioners of that county that was in effect [by operation of statute] on January 1, [2003.] 2015.

      4.  Any elected officer or county commissioner who is entitled to a salary pursuant to subsection 2 or 3 may elect not to receive any part of the salary to which he or she is entitled pursuant to subsection 2 or 3, as applicable.

      5.  The increased annual salaries for all elected county officers provided for in subsections 2 and 3 for a fiscal year must not be paid in a fiscal year if the board of county commissioners determines that sufficient financial resources are not available to pay increased annual salaries in that fiscal year and the annual salaries paid for those officers in the immediately preceding fiscal year must continue to be paid. If increased annual salaries are paid in a subsequent fiscal year:

      (a) Those increased annual salaries must be in the amounts provided for in subsections 2 and 3 starting with the first fiscal year in which increased salaries were not paid because sufficient financial resources were not available.

      (b) An elected county officer is not entitled to any retroactive payment of the salary increase for any previous fiscal year in which increased annual salaries were not paid.

      Sec. 2. (Deleted by amendment.)

      Sec. 3.  This act becomes effective on July 1, 2015.

________

 


…………………………………………………………………………………………………………………

ê2015 Statutes of Nevada, Page 3250ê

 

CHAPTER 516, SB 509

Senate Bill No. 509–Committee on Education

 

CHAPTER 516

 

[Approved: June 10, 2015]

 

AN ACT relating to education; revising provisions relating to the employees and duties of the State Public Charter School Authority; authorizing and requiring certain sponsors of charter schools to make certain agreements with the Authority and other sponsors of charter schools; revising provisions governing applications to form a charter school; authorizing a charter management organization to apply for a waiver of requirements concerning the composition of the governing body of a charter school; revising provisions governing amendments to a written charter or charter contract; authorizing the consolidation of the operations of multiple charter schools under certain circumstances; revising the circumstances under which the sponsor of a charter school is authorized or required to revoke a written charter or terminate a charter contract; authorizing a sponsor to reconstitute the governing body of a charter school in certain circumstances; authorizing the sponsor of a charter school whose written charter has been revoked or whose charter contract has been terminated to take certain measures to attempt to replace the charter school; exempting certain high-performing charter schools from the requirement that certain teachers be licensed; establishing alternative qualifications for such teachers; revising certain other provisions governing the operation of a charter school; authorizing a charter school to receive certain money; revising provisions governing the continuation of certain achievement charter schools; and providing other matters properly relating thereto.

Legislative Counsel’s Digest:

      Existing law establishes the State Public Charter School Authority, requires the Authority to appoint a Director and authorizes the Authority to sponsor charter schools. (NRS 386.490-386.515) Sections 10, 12-14 and 18 of this bill change the title of the Director of the Authority to “Executive Director,” and section 13 authorizes the Executive Director to pursue other businesses and hold other offices with the approval of the Authority. Section 11 of this bill requires the Authority to consist of persons who are experts on authorizing, developing and operating charter schools. Sections 15 and 16 of this bill revise provisions governing the staff of the Authority. Section 18 of this bill prohibits the Executive Director and the Authority from accepting any gift or donation from a charter management organization, a committee to form a charter school or the governing body of a charter school. Sections 32 and 33 of this bill require the Authority to adopt regulations that prescribe: (1) the process to apply to the Authority to form a charter school, renew a charter contract or amend a written charter or charter contract; (2) the contents of such applications; and (3) the procedure by which such applications will be evaluated. Sections 35, 45 and 46 of this bill revise certain other duties of the Authority.

      In addition to the Authority, existing law also authorizes the board of trustees of a school district or a college or university within the Nevada System of Higher Education to sponsor a charter school with the approval of the Department of Education. (NRS 386.515) Sections 17, 19 and 20 of this bill provide for a board of trustees of a school district or college or university within the System that sponsors a charter school to enter into certain agreements with the Authority. Sections 19 and 20 also revise the duties of the sponsor of a charter school, including the requirements of the policies and practices that a sponsor is required to adopt.

 


…………………………………………………………………………………………………………………

ê2015 Statutes of Nevada, Page 3251 (Chapter 516, SB 509)ê

 

      Existing law requires an application to form a charter school to be submitted by a committee to form a charter school. (NRS 386.520, 386.525) Sections 21 and 22 of this bill authorize a charter management organization to apply to form a charter school. Section 2 of this bill defines the term “charter management organization” to mean a nonprofit organization that operates multiple charter schools. Section 21 also revises the required contents of an application to form a charter school. Sections 21 and 36 of this bill authorize a charter management organization to request a waiver of requirements concerning the composition of a governing body. Section 22 revises the manner in which a sponsor is authorized to solicit and review applications to form a charter school.

      Existing law authorizes the sponsor of a charter school to amend a written charter or charter contract upon the request of the governing body of a charter school. (NRS 386.527) Sections 4 and 53 of this bill require the sponsor of a charter school to hold a public hearing concerning requests to amend a written charter or charter contract to: (1) expand the grade levels served by the charter school; (2) significantly increase or decrease enrollment; (3) acquire additional facilities to expand the enrollment of the charter school; or (4) consolidate the operations of multiple charter schools. Such an amendment may not be made unless approved by the governing board of the sponsor. Sections 5 and 54 of this bill prescribe the circumstances under which the operations of multiple charter schools can be consolidated.

      For any charter school approved before June 11, 2013, existing law requires the sponsor of the charter school to grant a written charter to the governing body. For any charter school approved on or after that date, existing law requires the sponsor to enter into a charter contract with the governing body. Because all written charters and charter contracts must be for terms of 6 years, all written charters will expire by June 11, 2019. (NRS 386.527) Sections 23 and 24 of this bill authorize a sponsor to require, as a condition of granting a request for an amendment, the replacement of a written charter with a charter contract for the period during which written charters may still be effective.

      Existing law requires each charter contract to include a performance framework for the charter school. (NRS 386.528) Section 25 of this bill: (1) requires each sponsor to adopt a performance framework and incorporate it in the charter contract; (2) allows a sponsor to aggregate and disaggregate data for reporting and accountability purposes; and (3) authorizes the State Board of Education to adopt regulations requiring a sponsor to aggregate or disaggregate data. Section 26 of this bill revises the contents of an annual report submitted by a sponsor to a governing body.

      Existing law authorizes a sponsor to revoke a written charter or terminate a charter contract under certain conditions and requires a sponsor to take such action if the charter school demonstrates persistent underachievement. (NRS 386.535, 386.5351) Sections 5 and 27-29 of this bill: (1) authorize a sponsor to reconstitute, under certain circumstances, the governing body of a charter school in such situations; and (2) revise the conditions under which such action is authorized or required. Sections 6, 30 and 31 of this bill authorize the sponsor of a charter school whose written charter has been revoked or whose charter contract has been terminated to recruit a governing body of another charter school to replace the closed charter school with another campus of the other charter school. Sections 6 and 55 of this bill require a pupil who attended a charter school whose written charter has been revoked or whose charter contract has been terminated to be given priority in admission to the replacement charter school under such circumstances. Sections 6 and 57 provide that: (1) if the governing body of a charter school is reconstituted, the new governing body may terminate the employment of any employees of the charter school; and (2) if a written charter is revoked or a charter contract is terminated and a charter school is replaced, the governing body of the replacement charter school is not required to employ any employee of the previous charter school. Sections 52 and 57 of this bill exclude the rights of a governing body to terminate the employment of or refuse to reemploy employees at such schools from the scope of collective bargaining.

 


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      Sections 34 and 39 of this bill revise requirements concerning services, including transportation, provided by the board of trustees of a school district to pupils at a charter school.

      Existing law: (1) prohibits a person who has been convicted of a felony relating to serving on the governing body of a charter school or any offense involving moral turpitude from serving on the governing body of a charter school; and (2) requires a member of a governing body to read and understand certain materials. (NRS 386.549) Section 7 of this bill requires a newly appointed member of a governing body to undergo a criminal background check and prohibits a person who has been convicted of a felony or an offense involving moral turpitude from serving as a member of a governing body. Sections 36 and 37 of this bill require a member of a governing body to receive training under certain circumstances.

      Sections 40 and 41 of this bill prohibit a contract between a governing body and a person who assists with the operation, management and provision of educational services at a charter school from containing certain provisions. Section 45 of this bill authorizes a charter school to use higher standards for graduation than those required by the State or a school district in which the charter school is located. Section 46 of this bill requires a charter school to notify the parent of a pupil who is under the age of 18 years before the pupil is suspended or expelled. Existing law requires: (1) a certain percentage of teachers at a charter school to be licensed; and (2) teachers who teach certain subjects at a charter school to be licensed. (NRS 386.580) Section 47 of this bill instead requires a certain percentage of teachers at a charter school and teachers who teach such subjects at a charter school to be highly qualified. Section 47 provides that: (1) a teacher at a high performing charter school is highly qualified if he or she meets certain requirements specified in federal law; and (2) a teacher at any other charter school is highly qualified if the teacher meets those federal requirements and is licensed. Section 47 also requires a teacher who is employed by a charter school to teach special education or English as a second language to be licensed to teach that subject. Finally, section 47 requires a high achieving charter school that employs unlicensed teachers to offer an alternative route to licensure for those teachers. Section 51 of this bill makes a conforming change.

      Section 48 of this bill requires the Commission on Educational Technology to consider plans adopted by charter schools for the use of educational technology when establishing the plan for the use of educational technology in the public schools of this State. Sections 49 and 50 of this bill authorize a charter school to receive money from the Trust Fund for Educational Technology.

      Assembly Bill No. 448 of this session establishes the Achievement School District within the Department of Education and requires the Executive Director of the Achievement School District to evaluate pupil achievement and school performance of an achievement charter school during the sixth year that a school operates as an achievement charter school. Assembly Bill No. 448 of this session also provides that if this evaluation indicates that an achievement charter school has not made adequate improvement in pupil achievement and school performance, the achievement charter school is required to continue to operate as an achievement charter school for at least 6 more years. (Section 33 of Assembly Bill No. 448 of this session) Section 56 of this bill requires the Department of Education, rather than the Executive Director of the Achievement School District, to conduct such an evaluation and, if the evaluation indicates that an achievement charter school has not made adequate improvement in pupil achievement and school performance, determine whether to continue to keep the school as an achievement charter school or return the school to become a public school within the school district. If such a school continues as an achievement charter school, the Executive Director is required to: (1) terminate the contract with the charter management organization, educational management organization or other person that operated the achievement charter school; (2) enter into a contract with a different charter management organization, educational management organization or other person to operate the achievement charter school; (3) require the charter management organization, educational management organization or other person with whom the Executive Director enters into a contract to operate an achievement charter school to appoint a new governing body of the achievement charter school; and (4) evaluate the pupil achievement and school performance of the school every 3 years.

 


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organization or other person with whom the Executive Director enters into a contract to operate an achievement charter school to appoint a new governing body of the achievement charter school; and (4) evaluate the pupil achievement and school performance of the school every 3 years. Section 56 also requires the Executive Director to provide certain notice to the parent or legal guardian of each pupil enrolled in an achievement charter school that has not made adequate improvement in pupil achievement and school performance regarding other educational choices that are available to the pupil.

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

      Section 1. Chapter 386 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 8, inclusive, of this act.

      Sec. 2. “Charter management organization” means:

      1.  A nonprofit organization that holds a written charter, charter contract or other equivalent agreement to operate more than one charter school in this State or another state; or

      2.  A nonprofit organization incorporated in this State for the purpose of operating a charter school in cooperation with a charter management organization that holds a written charter, charter contract or other equivalent agreement to operate more than one charter school in another state.

      Sec. 3. “Educational management organization” means a for-profit corporation, business, organization or other entity that provides services relating to the operation and management of charter schools and achievement charter schools.

      Sec. 4. 1.  The State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable, which sponsors a charter school may hold a public hearing concerning any request to amend a written charter or a charter contract of the charter school it sponsors, including, without limitation, a request to amend a written charter or charter contract for the purpose of:

      (a) Expanding the charter school to offer instruction in grade levels for which the charter school does not already offer instruction.

      (b) Increasing the total enrollment of a charter school or the enrollment of pupils in a particular grade level in the charter school for a school year to more than 120 percent of the enrollment prescribed in the written charter or charter contract for that school year.

      (c) Reducing the total enrollment of a charter school or the enrollment of pupils in a particular grade level in the charter school for a school year to less than 80 percent of the enrollment prescribed in the written charter or charter contract for that school year.

      (d) Seeking to acquire an additional facility in any county of this State to expand the enrollment of the charter school.

      (e) Consolidating the operations of multiple charter schools pursuant to section 5 of this act.

      2.  A written charter or charter contract may not be amended in any manner described in subsection 1 unless the amendment is approved by the State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable.

 


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State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable.

      3.  The State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable, must deny a request to amend a written charter or charter contract in the manner described in paragraphs (d) or (e) of subsection 1 if the State Public Charter School Authority, the board of trustees or a college or university within the Nevada System of Higher Education, as applicable, determines that:

      (a) The charter school is not meeting the requirements of the performance framework concerning academics, finances or organization established pursuant to NRS 386.528; or

      (b) The governing body does not have a comprehensive and feasible plan to operate additional facilities.

      Sec. 5. The sponsor of a charter school may approve an amendment to a written charter or a charter contract to consolidate the operations of two or more charter schools if:

      1.  The sponsor of a charter school for which a written charter has been revoked or a charter contract has been terminated has approved a request by the governing body of the charter school requesting the amendment to negotiate with the owner, mortgagor or lienholder of the facilities in which the charter school has been operated for the purpose of operating an additional campus of the other charter school pursuant to section 6 of this act. If charter schools are consolidated under such conditions, the prior academic, operational and fiscal performance of the charter school whose written charter has been revoked or whose charter contract has been terminated will not be attributed to the consolidated charter school.

      2.  Two or more governing bodies submit a request for an amendment to consolidate their charter contracts, governing bodies and operations to form a single charter school operating one or more campuses under a new charter contract. If charter schools are consolidated under such conditions:

      (a) The new charter contract will be in effect for the duration of the term of the written charter or charter contract which was closest to its date of expiration before consolidation; and

      (b) The academic, operational and fiscal performances of all charter schools that have been consolidated will be attributed to the consolidated charter school.

      Sec. 6. 1.  If the sponsor of a charter school reconstitutes the governing body of a charter school pursuant to NRS 386.535, the sponsor must appoint new members to the governing body who meet the qualifications for membership set forth in NRS 386.549. The sponsor shall not reappoint more than 40 percent of the members of the previous governing body. Before appointing new members to the governing body, the sponsor must consider:

      (a) Input from members of the community in which the charter school is located and parents of pupils who attend the charter school.

 


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      (b) Any relevant credentials, experience or other qualifications of a potential member, including, without limitation, whether the potential member resides in the geographic area served by the charter school or has experience in education.

      2.  If the sponsor of a charter school revokes a written charter or terminates a charter contract pursuant to NRS 386.535 or 386.5351, the sponsor may:

      (a) Petition the district court to appoint a receiver, to be paid from the funds of the charter school, to oversee and manage the charter school until other arrangements are made for pupils who attend the school.

      (b) Issue a request for proposals inviting the governing body of another charter school to negotiate with the owner, mortgagor or lienholder of the facilities in which the charter school operated for the purpose of operating an additional campus of the other charter school under the sponsorship of either the sponsor of the charter school for which the written charter has been revoked or the charter contract has been terminated or the sponsor of the charter school that intends to operate an additional campus. If the governing body proposes to operate an additional campus of the other charter school under the sponsorship of:

             (1) The sponsor of the charter school for which the written charter has been revoked or the charter contract has been terminated and the sponsor is not the sponsor of the charter school currently operated by the governing body, the governing body must, before the additional campus begins operating, also submit to the sponsor of the charter school for which the written charter has been revoked or the charter contract has been terminated and receive approval for an application to form a charter school pursuant to NRS 386.520.

             (2) The sponsor of the charter school currently operated by the governing body, the governing body must, before the additional campus begins operating, also submit a request for and receive approval of an amendment to its written charter or charter contract to consolidate charter schools pursuant to NRS 386.527 and sections 4 and 5 of this act.

      3.  Before selecting a governing body to operate another campus of an existing charter school to replace a charter school whose written charter has been revoked or whose charter contract has been terminated pursuant to subsection 2, the sponsor must consider:

      (a) The performance record of the charter school in this State and other states;

      (b) The plan of the governing body for improving pupil achievement and school performance;

      (c) The suitability of the proposed academic program for pupils who were enrolled in the charter school before the revocation of the written charter or the termination of the charter contract; and

      (d) Input from members of the community in which the charter school is located and parents who were enrolled in the charter school before the revocation of the written charter or the termination of the charter contract, including, without limitation, the input described in subsection 4.

      4.  A sponsor that solicits proposals to operate an additional campus of an existing charter school shall allow parents of pupils who were enrolled in the charter school before the revocation of the written charter or the termination of the charter contract to interview governing bodies who submit proposals and, if three or more proposals are submitted pursuant to paragraph (b) of subsection 2, cast an advisory vote for the governing body that they would prefer be given the opportunity to operate the campus.

 


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paragraph (b) of subsection 2, cast an advisory vote for the governing body that they would prefer be given the opportunity to operate the campus.

      5.  If a governing body is selected pursuant to this section to operate another campus of an existing charter school to replace a charter school whose written charter has been revoked or whose charter contract has been terminated and any necessary amendments or applications are approved, the charter school must enroll pupils who were enrolled in the charter school whose written charter was revoked or whose charter contract was terminated before enrolling other pupils.

      6.  If the sponsor of a charter school reconstitutes the governing body of a charter school pursuant to NRS 386.535, the principal of the charter school or another administrator of the charter school appointed by the reconstituted governing body shall:

      (a) Review each employee of the charter school to determine whether to retain the employee based on the needs of the school and the ability of the employee to improve pupil achievement and school performance at the charter school. The new governing body may terminate the employment of any teachers or other employees of the charter school or, if possible, may reassign teachers or other employees to another school.

      (b) Collaborate with the new governing body in making hiring determinations for the charter school.

      7.  If the sponsor of a charter school selects a governing body to operate another campus of an existing charter school to replace a charter school whose written charter has been revoked or whose charter contract has been terminated, the new governing body is not required to offer employment to any teacher or other employee of the charter school whose written charter has been revoked or whose charter contract has been terminated.

      Sec. 7. 1.  Within 10 days after being appointed to the governing body of a charter school, each member of a governing body, except a licensed teacher or other person licensed by the Superintendent of Public Instruction, must, as a condition to membership, submit to the governing body a complete set of the member’s fingerprints and written permission authorizing the governing body to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for its report on the criminal history of the applicant and for submission to the Federal Bureau of Investigation for its report on the criminal history of the member.

      2.  If the reports on the criminal history of the member indicate that the member has not been convicted of a felony or an offense involving moral turpitude, the member may continue to serve on the governing body.

      3.  If a report on the criminal history of a member indicates that the member has been convicted of a felony or an offense involving moral turpitude, the governing body of the charter school must remove the member.

      Sec. 8. 1.  In a county in which more than five charter schools are located and the total number of pupils enrolled in the charter schools exceeds 25 percent of the combined enrollment of all public schools, including, without limitation, charter schools, the Department shall, in consultation with all sponsors of charter schools in the county, determine whether holding a weighted lottery for admission to charter schools would improve diversity in charter schools that do not have a preference for at-risk pupils. If the Department determines that a weighted lottery for admission to charter schools would improve diversity in such charter schools, the Department shall, to the extent authorized by federal law, adopt regulations authorizing charter schools to establish a weighted lottery.

 


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admission to charter schools would improve diversity in such charter schools, the Department shall, to the extent authorized by federal law, adopt regulations authorizing charter schools to establish a weighted lottery.

      2.  In a county in which more than ten charter schools are located and the total number of pupils enrolled in charter schools exceeds 50 percent of the combined enrollment of all public schools, including, without limitation, charter schools, the Department shall, in consultation with all sponsors of charter schools in the county:

      (a) Adopt regulations establishing a uniform enrollment calendar and process for enrolling pupils applicable to all charter schools in the county. The regulations must establish a lottery for admission to each charter school in the county. If a charter school does not have a preference for at-risk pupils, the lottery must, to the extent authorized by federal law, be a weighted lottery.

      (b) Allow the board of trustees of the school district to provide input regarding the enrollment calendar, processes for enrolling pupils and lotteries established pursuant to paragraph (a).

      3.  As used in this section, “weighted lottery” means a lottery that gives additional weight to pupils who are identified as being part of a specified group of pupils. The term does not include the reservation of seats in the charter school for specified pupils or groups of pupils.

      Sec. 9. NRS 386.490 is hereby amended to read as follows:

      386.490  As used in NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive of this act, the words and terms defined in NRS 386.492 to 386.503, inclusive, and sections 2 and 3 of this act have the meanings ascribed to them in those sections.

      Sec. 10. NRS 386.495 is hereby amended to read as follows:

      386.495  [“Director”] “Executive Director” means the Executive Director of the State Public Charter School Authority appointed pursuant to NRS 386.511.

      Sec. 11.  NRS 386.5095 is hereby amended to read as follows:

      386.5095  1.  The State Public Charter School Authority consists of seven members. The membership of the State Public Charter School Authority consists of:

      (a) Two members appointed by the Governor in accordance with subsection 2;

      (b) Two members, who must not be Legislators, appointed by the Majority Leader of the Senate in accordance with subsection 2;

      (c) Two members, who must not be Legislators, appointed by the Speaker of the Assembly in accordance with subsection 2; and

      (d) One member appointed by the Charter School Association of Nevada or its successor organization.

      2.  The Governor, the Majority Leader of the Senate and the Speaker of the Assembly shall ensure that the membership of the State Public Charter School Authority:

      (a) Includes persons with a demonstrated understanding of charter schools and a commitment to using charter schools as a way to strengthen public education in this State;

      (b) Includes a parent or legal guardian of a pupil enrolled in a charter school in this State;

      (c) Includes persons with specific knowledge of:

 


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             (1) Issues relating to elementary and secondary education;

             (2) School finance or accounting, or both;

             (3) Management practices;

             (4) Assessments required in elementary and secondary education;

             (5) Educational technology; and

             (6) The laws and regulations applicable to charter schools; [and]

      (d) Insofar as practicable, reflects the ethnic and geographical diversity of this State [.] ; and

      (e) Insofar as practicable, consists of persons who are experts on best practices for authorizing charter schools and developing and operating high-quality charter schools and charter management organizations.

      3.  Each member of the State Public Charter School Authority must be a resident of this State.

      4.  After the initial terms, the term of each member of the State Public Charter School Authority is 3 years, commencing on July 1 of the year in which he or she is appointed. A vacancy in the membership of the State Public Charter School Authority must be filled for the remainder of the unexpired term in the same manner as the original appointment. A member shall continue to serve on the State Public Charter School Authority until his or her successor is appointed.

      5.  The members of the State Public Charter School Authority shall select a Chair and Vice Chair from among its members. After the initial selection of those officers, each of those officers holds the position for a term of 2 years commencing on July 1 of each odd-numbered year. If a vacancy occurs in the Chair or Vice Chair, the vacancy must be filled in the same manner as the original selection for the remainder of the unexpired term.

      6.  Each member of the State Public Charter School Authority is entitled to receive:

      (a) For each day or portion of a day during which he or she attends a meeting of the State Public Charter School Authority a salary of not more than $80, as fixed by the State Public Charter School Authority; and

      (b) For each day or portion of a day during which he or she attends a meeting of the State Public Charter School Authority or is otherwise engaged in the business of the State Public Charter School Authority the per diem allowance and travel expenses provided for state officers and employees generally.

      Sec. 12. NRS 386.511 is hereby amended to read as follows:

      386.511  1.  The State Public Charter School Authority shall appoint [a] an Executive Director of the State Public Charter School Authority for a term of 3 years. The State Public Charter School Authority shall ensure that the Executive Director has a demonstrated understanding of charter schools and a commitment to using charter schools as a way to strengthen public education in this State.

      2.  A vacancy in the position of Executive Director must be filled by the State Public Charter School Authority for the remainder of the unexpired term.

      3.  The Executive Director is in the unclassified service of the State.

      Sec. 13. NRS 386.5115 is hereby amended to read as follows:

      386.5115  [The] With the approval of the State Public Charter School Authority, the Executive Director [shall not] may pursue any other business or occupation or hold any other office , including, without limitation, serving as a member on a committee, board or task force of an organization relating to charter schools, serving as a reviewer of applications to form a charter school for organizations other than the State Public Charter School Authority and holding an office of profit , and may accept reimbursement for travel costs relating to such activities.

 


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organization relating to charter schools, serving as a reviewer of applications to form a charter school for organizations other than the State Public Charter School Authority and holding an office of profit , and may accept reimbursement for travel costs relating to such activities. The Executive Director shall not pursue any other business or occupation or hold any other office of profit without the approval of the State Public Charter School Authority.

      Sec. 14. NRS 386.512 is hereby amended to read as follows:

      386.512  The Executive Director shall:

      1.  Execute, direct and supervise all administrative, technical and procedural activities of the State Public Charter School Authority in accordance with the policies prescribed by the State Public Charter School Authority;

      2.  Organize the State Public Charter School Authority in a manner which will ensure the efficient operation and service of the State Public Charter School Authority;

      3.  Serve as the Executive Secretary of the State Public Charter School Authority;

      4.  Ensure that the autonomy provided to charter schools in this State pursuant to state law and regulations is preserved; and

      5.  Perform such other duties as are prescribed by law or the State Public Charter School Authority.

      Sec. 15. NRS 386.5125 is hereby amended to read as follows:

      386.5125  1.  The State Public Charter School Authority may employ such persons as it deems necessary to carry out the provisions of NRS 386.490 to 386.649, inclusive [.] , and sections 2 to 8, inclusive, of this act. The staff employed by the State Public Charter School Authority must be qualified to carry out the daily responsibilities of sponsoring charter schools , including, without limitation, oversight of written charters and charter contracts, in accordance with the provisions of NRS 386.490 to 386.649, inclusive [.] , and sections 2 to 8, inclusive, of this act.

      2.  The staff must include:

      (a) Attorneys with experience with laws concerning education, special education and nonprofit organizations;

      (b) Persons with experience overseeing the annual audits and financial operations of school districts, nonprofit organizations or corporations;

      (c) Persons with experience conducting assessments and evaluations for a school district;

      (d) Administrators with significant experience overseeing special education programs and programs while employed by a school district, charter management organization, educational management organization or other operator of charter schools;

      (e) Policy analysts with significant experience in the areas of charter schools and education policy; and

      (f) Any other persons that the State Public Charter School Authority determines are necessary.

      3.  The State Public Charter School Authority shall periodically evaluate and make decisions concerning the number of persons employed by the State Public Charter School Authority and the qualifications and compensation of such persons based on guidance from the National Association of Charter School Authorizers, or its successor organization, an assessment of the strategic plan for recruiting operators of charter schools prepared pursuant to NRS 386.515 and the needs of the charter schools sponsored by the State Public Charter School Authority.

 


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schools prepared pursuant to NRS 386.515 and the needs of the charter schools sponsored by the State Public Charter School Authority.

      Sec. 16. NRS 386.5125 is hereby amended to read as follows:

      386.5125  1.  The State Public Charter School Authority may employ such persons as it deems necessary to carry out the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act. The staff employed by the State Public Charter School Authority must be qualified to carry out the daily responsibilities of sponsoring charter schools, including, without limitation, oversight of [written charters and] charter contracts, in accordance with the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act.

      2.  The staff must include:

      (a) Attorneys with experience with laws concerning education law, special education and nonprofit organizations;

      (b) Persons with experience overseeing the annual audits and financial operations of school districts, nonprofit organizations or corporations;

      (c) Persons with experience conducting assessments and evaluations for a school district;

      (d) Administrators with significant experience overseeing special education programs and programs while employed by a school district, charter management organization, educational management organization or other operator of charter schools;

      (e) Policy analysts with significant experience in the areas of charter schools and education policy; and

      (f) Any other persons that the State Public Charter School Authority determines are necessary.

      3.  The State Public Charter School Authority shall periodically evaluate and make decisions concerning the number of persons employed by the State Public Charter School Authority and the qualifications and compensation of such persons based on guidance from the National Association of Charter School Authorizers, or its successor organization, an assessment of the strategic plan for recruiting operators of charter schools prepared pursuant to NRS 386.515 and the needs of the charter schools sponsored by the State Public Charter School Authority.

      Sec. 17. NRS 386.513 is hereby amended to read as follows:

      386.513  1.  The State Public Charter School Authority is hereby deemed a local educational agency for the purpose of directing the proportionate share of any money available from federal and state categorical grant programs to charter schools which are sponsored by the State Public Charter School Authority or a college or university within the Nevada System of Higher Education that are eligible to receive such money. A college or university within the Nevada System of Higher Education that sponsors a charter school shall enter into an agreement with the State Public Charter School Authority for the provision of any necessary functions of a local educational authority. A charter school that receives money pursuant to such a grant program shall comply with any applicable reporting requirements to receive the grant.

      2.  If the charter school is eligible to receive special education program units, the Department shall pay the special education program units directly to the charter school.

      3.  As used in this section, “local educational agency” has the meaning ascribed to it in 20 U.S.C. § 7801(26)(A).

 


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      Sec. 18. NRS 386.5135 is hereby amended to read as follows:

      386.5135  1.  The Account for the State Public Charter School Authority is hereby created in the State General Fund, to be administered by the Executive Director.

      2.  The interest and income earned on the money in the Account must be credited to the Account.

      3.  The money in the Account may be used only for the establishment and maintenance of the State Public Charter School Authority.

      4.  Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

      5.  [The] Except as otherwise provided in this subsection, the Executive Director and the State Public Charter School Authority may accept gifts, grants and bequests to carry out the provisions of NRS 386.490 to 386.649, inclusive [.] , and sections 2 to 8, inclusive, of this act. The Executive Director and the State Public Charter School Authority shall not accept any gift or donation from a charter management organization, a committee to form a charter school or the governing body of a charter school. Any money from gifts, grants and bequests must be deposited in the Account and may be expended in accordance with the terms and conditions of the gift, grant or bequest, or in accordance with this section.

      Sec. 19. NRS 386.515 is hereby amended to read as follows:

      386.515  1.  The board of trustees of a school district may apply to the Department for authorization to sponsor charter schools within the school district in accordance with the regulations adopted by the Department pursuant to NRS 386.540. An application must be approved by the Department before the board of trustees may sponsor a charter school. Not more than 180 days after receiving approval to sponsor charter schools, the board of trustees shall provide public notice of its ability to sponsor charter schools and solicit applications for charter schools.

      2.  The State Public Charter School Authority shall sponsor charter schools whose applications have been approved by the State Public Charter School Authority pursuant to NRS 386.525. Except as otherwise provided by specific statute, if the State Public Charter School Authority sponsors a charter school, the State Public Charter School Authority is responsible for the evaluation, monitoring and oversight of the charter school.

      3.  A college or university within the Nevada System of Higher Education may submit an application to the Department to sponsor charter schools in accordance with the regulations adopted by the Department pursuant to NRS 386.540. An application must be approved by the Department before a college or university within the Nevada System of Higher Education may sponsor charter schools.

      4.  The board of trustees of a school district or a college or university within the Nevada System of Higher Education may enter into an agreement with the State Public Charter School Authority to provide technical assistance and support in preparing an application to sponsor a charter school and planning and executing the duties of a sponsor of a charter school as prescribed in this section.

      5.  Each sponsor of a charter school shall carry out the following duties and powers:

      (a) Evaluating applications to form charter schools as prescribed by NRS 386.525;

 


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      (b) Approving applications to form charter schools that the sponsor determines are high quality, meet the identified educational needs of pupils and will serve to promote the diversity of public educational choices in this State;

      (c) Declining to approve applications to form charter schools that do not satisfy the requirements of NRS 386.525;

      (d) Negotiating and executing charter contracts pursuant to NRS 386.527;

      (e) Monitoring, in accordance with NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, and in accordance with the terms and conditions of the applicable charter contract, the performance and compliance of each charter school sponsored by the entity; [and]

      (f) Determining whether the charter contract of a charter school that the entity sponsors merits renewal or whether the renewal of the charter contract should be denied or whether the written charter should be revoked or the charter contract terminated, as applicable, in accordance with NRS 386.530, 386.535 or 386.5351, as applicable [.

      5.];

      (g) Determining whether the governing body of a charter school should be reconstituted in accordance with NRS 386.535; and

      (h) Adopting a policy for appointing a new governing body of a charter school for which the governing body is reconstituted in accordance with NRS 386.535.

      6.  Each sponsor of a charter school shall develop policies and practices that are consistent with state laws and regulations governing charter schools. In developing the policies and practices, the sponsor shall review and evaluate nationally recognized policies and practices for sponsoring organizations of charter schools. The policies and practices must include, without limitation:

      (a) The organizational capacity and infrastructure of the sponsor for sponsorship of charter schools, which must not be described as a limit on the number of charter schools the sponsor will approve;

      (b) The procedure and criteria for soliciting and evaluating charter school applications in accordance with NRS 386.525 [and for the renewal of charter contracts pursuant to NRS 386.530;

      (c)], which must include, without limitation:

             (1) Specific application procedures and timelines for committees to form a charter school that plan to enter into a contract with an educational management organization to operate the charter school, committees to form a charter school that do not plan to enter into such a contract and charter management organizations; and

             (2) A description of the manner in which the sponsor will evaluate the previous performance of an educational management organization or other person with whom a committee to form a charter school plans to enter into a contract to operate a charter school or a charter management organization that submits an application to form a charter school;

      (c) The procedure and criteria for evaluating applications for the renewal of charter contracts pursuant to NRS 386.530;

      (d) The procedure for amending a written charter or charter contract and the criteria for determining whether a request for such an amendment will be approved which must include, without limitation, any manner in which such procedures and criteria will differ if the sponsor determines that the amendment is material or strategically important;

 


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      (e) If deemed appropriate by the sponsor, a strategic plan for recruiting charter management organizations, educational management organizations or other persons to operate charter schools based on the priorities of the sponsor and the needs of the pupils that will be served by the charter schools that will be sponsored by the sponsor;

      (f) A description of how the sponsor will maintain oversight of the charter schools it sponsors [;] , which must include, without limitation:

             (1) An assessment of the needs of the charter schools that are sponsored by the sponsor that is prepared with the input of the governing bodies of such charter schools; and

             (2) A strategic plan for the oversight and provision of technical support to charter schools that are sponsored by the sponsor in the areas of academic, fiscal and organizational performance; and

      [(d)](g) A description of the process of evaluation for the charter schools it sponsors in accordance with NRS 386.610.

      [6.]7. Before the State Public Charter School Authority or a board of trustees of a school district or a college or university within the Nevada System of Higher Education that is approved to sponsor charter schools begins soliciting applications to form a charter school, the State Public Charter School Authority, board of trustees or college or university, as applicable, shall prepare, in collaboration with the Department and, to the extent practicable, the school district in which the proposed charter school will be located and any other sponsor of a charter school located in that school district, an evaluation of the academic needs of pupils in geographic areas served by the sponsor.

      8.  Evidence of material or persistent failure to carry out the powers and duties of a sponsor prescribed by this section constitutes grounds for revocation of the entity’s authority to sponsor charter schools.

      9.  The provisions of this section do not establish a private right of action against the sponsor of a charter school.

      Sec. 20. NRS 386.515 is hereby amended to read as follows:

      386.515  1.  The board of trustees of a school district may apply to the Department for authorization to sponsor charter schools within the school district in accordance with the regulations adopted by the Department pursuant to NRS 386.540. An application must be approved by the Department before the board of trustees may sponsor a charter school. Not more than 180 days after receiving approval to sponsor charter schools, the board of trustees shall provide public notice of its ability to sponsor charter schools and solicit applications for charter schools.

      2.  The State Public Charter School Authority shall sponsor charter schools whose applications have been approved by the State Public Charter School Authority pursuant to NRS 386.525. Except as otherwise provided by specific statute, if the State Public Charter School Authority sponsors a charter school, the State Public Charter School Authority is responsible for the evaluation, monitoring and oversight of the charter school.

      3.  A college or university within the Nevada System of Higher Education may submit an application to the Department to sponsor charter schools in accordance with the regulations adopted by the Department pursuant to NRS 386.540. An application must be approved by the Department before a college or university within the Nevada System of Higher Education may sponsor charter schools.

 


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      4.  The board of trustees of a school district or a college or university within the Nevada System of Higher Education may enter into an agreement with the State Public Charter School Authority to provide technical assistance and support in preparing an application to sponsor a charter school and planning and executing the duties of a sponsor of a charter school prescribed in this section.

      5.  Each sponsor of a charter school shall carry out the following duties and powers:

      (a) Evaluating applications to form charter schools as prescribed by NRS 386.525;

      (b) Approving applications to form charter schools that the sponsor determines are high quality, meet the identified educational needs of pupils and will serve to promote the diversity of public educational choices in this State;

      (c) Declining to approve applications to form charter schools that do not satisfy the requirements of NRS 386.525;

      (d) Negotiating and executing charter contracts pursuant to NRS 386.527;

      (e) Monitoring, in accordance with NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, and in accordance with the terms and conditions of the applicable charter contract, the performance and compliance of each charter school sponsored by the entity; [and]

      (f) Determining whether the charter contract of a charter school that the entity sponsors merits renewal or whether the renewal of the charter contract should be denied or whether the charter contract should be terminated in accordance with NRS 386.530, 386.535 or 386.5351, as applicable [.

      5.] ;

      (g) Determining whether the governing body of a charter school should be reconstituted in accordance with NRS 386.535; and

      (h) Adopting a policy for appointing a new governing body of a charter school for which the governing body is reconstituted in accordance with NRS 386.535.

      6.  Each sponsor of a charter school shall develop policies and practices that are consistent with state laws and regulations governing charter schools. In developing the policies and practices, the sponsor shall review and evaluate nationally recognized policies and practices for sponsoring organizations of charter schools. The policies and practices must include, without limitation:

      (a) The organizational capacity and infrastructure of the sponsor for sponsorship of charter schools, which must not be described as a limit on the number of charter schools the sponsor will approve;

      (b) The procedure and criteria for soliciting and evaluating charter school applications in accordance with NRS 386.525 [and for the;

      (c)], which must include, without limitation:

             (1) Specific application procedures and timelines for committees to form a charter school that plan to enter into a contract with an educational management organization to operate the charter school, committees to form a charter school that do not plan to enter into such a contract and charter management organizations; and

             (2) A description of the manner in which the sponsor will evaluate the previous performance of an educational management organization or other person with whom a committee to form a charter school plans to enter into a contract to operate a charter school or a charter management organization that submits an application to form a charter school;

 


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enter into a contract to operate a charter school or a charter management organization that submits an application to form a charter school;

      (c) The procedure and criteria for evaluating applications for renewal of charter contracts pursuant to NRS 386.530;

      (d) The procedure for amending a charter contract and the criteria for determining whether a request for such an amendment will be approved which must include, without limitation, any manner in which such procedures and criteria will differ if the sponsor determines that the amendment is material or strategically important;

      (e) If deemed appropriate by the sponsor, a strategic plan for recruiting charter management organizations, educational management organizations or other persons to operate charter schools based on the priorities of the sponsor and the needs of the pupils that will be served by the charter schools that will be sponsored by the sponsor;

      (f) A description of how the sponsor will maintain oversight of the charter schools it sponsors [;] , which must include, without limitation:

             (1) An assessment of the needs of the charter schools that are sponsored by the sponsor that is prepared with the input of the governing bodies of such charter schools; and

             (2) A strategic plan for the oversight and provision of technical support to charter schools that are sponsored by the sponsor in the areas of academic, fiscal and organizational performance; and

      [(d)](g) A description of the process of evaluation for the charter schools it sponsors in accordance with NRS 386.610.

      [6.]7. Before the State Public Charter School Authority or a board of trustees of a school district or a college or university within the Nevada System of Higher Education that is approved to sponsor charter schools begins soliciting applications to form a charter school, the State Public Charter School Authority, board of trustees or college or university, as applicable, shall prepare, in collaboration with the Department and, to the extent practicable, the school district in which the proposed charter school will be located and any other sponsor of a charter school located in that school district, an evaluation of the academic needs of pupils in geographic areas served by the sponsor.

      8.  Evidence of material or persistent failure to carry out the powers and duties of a sponsor prescribed by this section constitutes grounds for revocation of the entity’s authority to sponsor charter schools.

      9.  The provisions of this section do not establish a private right of action against the sponsor of a charter school.

      Sec. 21. NRS 386.520 is hereby amended to read as follows:

      386.520  1.  A committee to form a charter school must consist of:

      (a) One member who is a teacher or other person licensed pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing;

      (b) One member who:

             (1) Satisfies the qualifications of paragraph (a); or

             (2) Is a school administrator with a license issued by another state or who previously held such a license and is retired, as long as his or her license was held in good standing;

      (c) One parent or legal guardian who is not a teacher or employee of the proposed charter school; and

 


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      (d) Two members who possess knowledge and expertise in one or more of the following areas:

             (1) Accounting;

             (2) Financial services;

             (3) Law; or

             (4) Human resources.

      2.  In addition to the members who serve pursuant to subsection 1, the committee to form a charter school may include, without limitation, not more than four additional members as follows:

      (a) Members of the general public;

      (b) Representatives of nonprofit organizations and businesses; or

      (c) Representatives of a college or university within the Nevada System of Higher Education.

      3.  A majority of the persons who serve on the committee to form a charter school must be residents of this State at the time that the application to form the charter school is submitted to the Department.

      4.  The [committee to form a charter school] applicant shall ensure that the completed application:

      (a) Presents [the] a clear, measurable and high-quality academic, financial and organizational vision and plans for the proposed charter school; and

      (b) Provides the proposed sponsor of the charter school with a clear basis for assessing the capacity of the applicant to carry out the vision and plans.

      5.  An application to form a charter school must include all information prescribed by the Department by regulation and:

      (a) A [written description of how the charter school will carry out the provisions of NRS 386.490 to 386.649, inclusive.] summary of the plan for the proposed charter school.

      (b) A clear written description of the mission of the charter school and the goals for the charter school. A charter school must have as its stated purpose at least one of the following goals:

             (1) Improving the academic achievement of pupils;

             (2) Encouraging the use of effective and innovative methods of teaching;

             (3) Providing an accurate measurement of the educational achievement of pupils;

             (4) Establishing accountability and transparency of public schools;

             (5) Providing a method for public schools to measure achievement based upon the performance of the schools; or

             (6) Creating new professional opportunities for teachers.

      (c) A clear description of the indicators, measures and metrics for the categories of academics, finances and organization that the charter school proposes to use, the external assessments that will be used to assess performance in those categories and the objectives that the committee to form a charter school plans to achieve in those categories, which must be expressed in terms of the objectives, measures and metrics. The objectives and the indicators, measures and metrics used by the charter school must be consistent with the performance framework adopted by the sponsor pursuant to NRS 386.527.

      (d) A resume and background information for each person who serves on the board of the charter management organization or the committee to form a charter school, as applicable, which must include the name, telephone number, electronic mail address, background, qualifications, any past or current affiliation with any charter school in this State or any other state, any potential conflicts of interest and any other information required by the sponsor.

 


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telephone number, electronic mail address, background, qualifications, any past or current affiliation with any charter school in this State or any other state, any potential conflicts of interest and any other information required by the sponsor.

      (e) The proposed location of, or the geographic area to be served by, the charter school and evidence of a need and community support for the charter school in that area.

      (f) The minimum, planned and maximum projected enrollment of pupils in each grade in the charter school [.

      (d)]for each year that the charter school would operate under the proposed charter contract.

      (g) The procedure for applying for enrollment in the proposed charter school, which must include, without limitation, the proposed dates for accepting applications for enrollment in [the initial] each year of operation [of the charter school.

      (e) The proposed system of governance for the charter school, including, without limitation, the number of persons who will govern, the method for nominating and electing the persons who will govern and the term of office for each person.

      (f) The method by which disputes will be resolved between the governing body of the charter school and the sponsor of the charter school.

      (g) The proposed curriculum for the charter school and, if applicable to the grade level of pupils who are enrolled in the charter school, the requirements for the pupils to receive a high school diploma, including, without limitation, whether those pupils will satisfy the requirements of the school district in which the charter school is located for receipt of a high school diploma.] under the proposed charter contract and a statement of whether the charter school will enroll pupils who are in a particular category of at-risk pupils before enrolling other children who are eligible to attend the charter school pursuant to NRS 386.580 and the method for determining eligibility for enrollment in each such category of at-risk pupils served by the charter school.

      (h) [The textbooks that will be used at the charter school.] The academic program that the charter school proposes to use, a description of how the academic program complies with the requirements of NRS 386.550, the proposed academic calendar for the first year of operation and a sample daily schedule for a pupil in each grade served by the charter school.

      (i) [The qualifications of the persons who will provide instruction at the charter school.] A description of the proposed instructional design of the charter school and the type of learning environment the school will provide, including, without limitation, whether the charter school will provide a program of distance education, the planned class size and structure, the proposed curriculum for the charter school and the teaching methods that will be used at the charter school.

      (j) [Except as otherwise required by NRS 386.595, the process by which the governing body of the charter school will negotiate employment contracts with the employees of the charter school.] The manner in which the school plans to identify and serve the needs of pupils with disabilities, pupils who are English language learners, pupils who are academically behind their peers and gifted pupils.

      (k) [A financial plan for the operation of the charter school. The plan must include, without limitation, procedures for the audit of the programs and finances of the charter school and guidelines for determining the financial liability if the charter school is unsuccessful.]

 


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and finances of the charter school and guidelines for determining the financial liability if the charter school is unsuccessful.] A description of any co-curricular or extracurricular activities that the school plans to offer and the manner in which these programs will be funded.

      (l) Any uniform or dress code policy that the school plans to use.

      (m) Plans and timelines for recruiting and enrolling students, including procedures for any lottery for admission that the school plans to conduct.

      (n) The rules of behavior and punishments that the school plans to adopt pursuant to NRS 386.585, including, without limitation, any unique discipline policies for pupils enrolled in a program of special education.

      (o) A chart that clearly presents the proposed organizational structure of the school and a clear description of the roles and responsibilities of the governing body, administrators and any other persons included on the chart and a table summarizing the decision-making responsibilities of the staff and governing body of the charter school and, if applicable, the charter management organization that operates the charter school. The table must also identify the person responsible for each activity conducted by the charter school, including, without limitation, the person responsible for establishing curriculum and culture, providing professional development to employees of the charter school and making determinations concerning the staff of the charter school.

      (p) The names of any external organizations that will play a role in operating the school and the role each such organization will play.

      (q) The manner in which the governing body of the charter school will be chosen.

      (r) A staffing chart for the first year in which the charter school plans to operate and a projected staffing plan for the term of the charter contract.

      (s) Plans for recruiting administrators, teachers and other staff, providing professional development to such staff.

      (t) Proposed bylaws for the governing body, a description of the manner in which the school will be governed, including, without limitation, any governance training that will be provided to the governing body, and a code of ethics for members and employees of the governing body. The code of ethics must be prepared with guidance from the Nevada Commission on Ethics and must not conflict with any policy adopted by the sponsor.

      (u) Explanations of any partnerships or contracts central to the operations or mission of the charter school.

      (v) A statement of whether the charter school will provide for the transportation of pupils to and from the charter school. If the charter school will provide transportation, the application must include the proposed plan for the transportation of pupils. If the charter school will not provide transportation, the application must include a statement that the charter school will work with the parents and guardians of pupils enrolled in the charter school to develop a plan for transportation to ensure that pupils have access to transportation to and from the charter school.

      [(m)](w) The procedure for the evaluation of teachers of the charter school, if different from the procedure prescribed in NRS 391.3125 and 391.3128. If the procedure is different from the procedure prescribed in NRS 391.3125 and 391.3128, the procedure for the evaluation of teachers of the charter school must provide the same level of protection and otherwise comply with the standards for evaluation set forth in NRS 391.3125 and 391.3128.

 


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charter school must provide the same level of protection and otherwise comply with the standards for evaluation set forth in NRS 391.3125 and 391.3128.

      [(n) The time by which certain academic or educational results will be achieved.

      (o) The kind of school, as defined in subsections 1 to 4, inclusive, of NRS 388.020, for which the charter school intends to operate.

      (p) A statement of whether the charter school will enroll pupils who are in a particular category of at-risk pupils before enrolling other children who are eligible to attend the charter school pursuant to NRS 386.580 and the method for determining eligibility for enrollment in each such category of at-risk pupils served by the charter school.]

      (x) A statement of the school’s plans for food service and other significant operational services, including a statement of whether the charter school will provide food service or participate in the National School Lunch Program, 42 U.S.C. §§ 1751 et seq. If the charter school will not provide food service or participate in the National School Lunch Program, the application must include an explanation of the manner in which the charter school will ensure that the lack of such food service or participation does not prevent pupils from attending the charter school.

      (y) Opportunities and expectations for involving the parents of pupils enrolled in the charter school in instruction at the school and the operation of the school, including, without limitation, the manner in which the charter school will solicit input concerning the governance of the charter school from such parents.

      (z) A detailed plan for starting operation of the charter school that identifies necessary tasks, the persons responsible for performing them and the dates by which such tasks will be accomplished.

      (aa) A description of the financial plan and policies to be used by the charter school.

      (bb) A description of the insurance coverage the school will obtain.

      (cc) Budgets for starting operation at the charter school, the first year of operation of the charter school and the first 5 years of operation of the charter school, with any assumptions inherent in the budgets clearly stated.

      (dd) Evidence of any money pledged or contributed to the budget of the charter school.

      (ee) A statement of the facilities that will be used to operate the charter school and a plan for operating such facilities, including, without limitation, any backup plan to be used if the charter school cannot be operated out of the planned facilities.

      (ff) If the charter school is a vocational school, a description of the career and technical education program that will be used by the school.

      (gg) If the charter school will provide a program of distance education, a description of the system of course credits that the school will use and the manner in which the school will:

             (1) Monitor and verify the participation in and completion of courses by pupils;

             (2) Require pupils to participate in assessments and submit coursework;

             (3) Conduct parent-teacher conferences; and

             (4) Administer any test, examination or assessment required by state or federal law in a proctored setting.

 


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      (hh) If the charter school will provide a program where a student may earn college credit for courses taken in high school, a draft memorandum of understanding between the charter school and the college or university through which the credits will be earned and a term sheet, which must set forth:

             (1) The proposed duration of the relationship between the charter school and the college or university and the conditions for renewal and termination of the relationship;

             (2) The roles and responsibilities of the governing body of the charter school, the employees of the charter school and the college or university;

             (3) The scope of the services and resources that will be provided by the college or university;

             (4) The manner and amount that the college or university will be compensated for providing such services and resources, including, without limitation, any tuition and fees that pupils at the charter school will pay to the college or university;

             (5) The manner in which the college or university will ensure that the charter school effectively monitors pupil enrollment and attendance and the acquisition of college credits; and

             (6) Any employees of the college or university who will serve on the governing body of the charter school.

      (ii) If the applicant currently operates a charter school in another state, evidence of the performance of such charter schools and the capacity of the applicant to operate the proposed charter school.

      (jj) If the applicant proposes to contract with an educational management organization or any other person to provide educational or management services:

             (1) Evidence of the performance of the educational management organization or other person when providing such services to a population of pupils similar to the population that will be served by the proposed charter school;

             (2) A term sheet that sets forth:

                   (I) The proposed duration of the proposed contract between the governing body of the charter school and the educational management organization;

                   (II) A description of the responsibilities of the governing body of the charter school, employees of the charter school and the educational management organization or other person;

                   (III) All fees that will be paid to the educational management organization or other person;

                   (IV) The manner in which the governing body of the charter school will oversee the services provided by the educational management organization or other person and enforce the terms of the contract;

                   (V) A disclosure of the investments made by the educational management organization or other person in the proposed charter school; and

                   (VI) The conditions for renewal and termination of the contract; and

             (3) A disclosure of any conflicts of interest concerning the applicant and the educational management organization or other person, including, without limitation, any past or current employment, business or familial relationship between any prospective employee of the charter school and a member of the committee to form a charter school or the board of directors of the charter management organization, as applicable.

 


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including, without limitation, any past or current employment, business or familial relationship between any prospective employee of the charter school and a member of the committee to form a charter school or the board of directors of the charter management organization, as applicable.

      (kk) Any additional information that the sponsor determines is necessary to evaluate the ability of the proposed charter school to serve pupils in the school district in which the proposed charter school will be located.

      6.  A charter management organization may, as part of an application to form a charter school, request a waiver of the requirements of subsection 1 or 2 of NRS 386.549 concerning the membership of the governing body. A sponsor shall not grant such a waiver unless the charter management organization provides a compelling reason for the waiver. If approved, the waiver may provide, without limitation, for multiple governing bodies that have the authority to make decisions concerning the governance of the charter school or a facility operated by the charter school. A majority of the members of each such governing body must reside in this State. A request for a waiver to allow for multiple such governing bodies must describe the role, responsibilities and composition of each such proposed governing body.

      7.  As used in subsection 1, “teacher” means a person who:

      (a) Holds a current license to teach issued pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing; and

      (b) Has at least 2 years of experience as an employed teacher.

Ê The term does not include a person who is employed as a substitute teacher.

      Sec. 22. NRS 386.525 is hereby amended to read as follows:

      386.525  1.  A committee to form a charter school or charter management organization may submit the application to the proposed sponsor of the charter school. If an application proposes to convert an existing public school, homeschool or other program of home study into a charter school, the proposed sponsor shall deny the application.

      2.  The proposed sponsor of a charter school shall, in reviewing an application to form a charter school:

      (a) Assemble a team of reviewers , which may include, without limitation, natural persons from different geographic areas of the United States who possess the appropriate knowledge and expertise with regard to the academic, financial and organizational experience of charter schools , to review and evaluate the application;

      (b) Conduct a thorough evaluation of the application, which includes an in-person interview with the [committee to form the charter school;] applicant designed to elicit any necessary clarifications or additional information about the proposed charter school and determine the ability of the applicants to establish a high-quality charter school;

      (c) Base its determination on documented evidence collected through the process of reviewing the application; and

      (d) Adhere to the policies and practices developed by the proposed sponsor pursuant to subsection [5] 6 of NRS 386.515.

      3.  The proposed sponsor of a charter school may approve an application to form a charter school only if the proposed sponsor determines that:

 


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      (a) The application:

             (1) Complies with NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act and the regulations applicable to charter schools; and

             (2) Is complete in accordance with the regulations of the Department [;] and the policies and practices of the sponsor; and

      (b) The applicant has demonstrated competence in accordance with the criteria for approval prescribed by the sponsor pursuant to subsection [5] 6 of NRS 386.515 that will likely result in a successful opening and operation of the charter school.

      4.  If the board of trustees of a school district or a college or a university within the Nevada System of Higher Education, as applicable, receives an application to form a charter school, the board of trustees or the institution, as applicable, shall consider the application at a meeting that must be held not later than 60 days after the receipt of the application, or a later period mutually agreed upon by the committee to form the charter school and the board of trustees of the school district or the institution, as applicable, and ensure that notice of the meeting has been provided pursuant to chapter 241 of NRS. The board of trustees, the college or the university, as applicable, shall review an application in accordance with the requirements for review set forth in subsections 2 and 3.

      5.  The board of trustees, the college or the university, as applicable, may approve an application if it satisfies the requirements of subsection 3.

      6.  The board of trustees, the college or the university, as applicable, shall provide written notice to the applicant of its approval or denial of the application. If the board of trustees, the college or the university, as applicable, denies an application, it shall include in the written notice the reasons for the denial and the deficiencies in the application. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application.

      7.  If the board of trustees, the college or the university, as applicable, denies an application after it has been resubmitted pursuant to subsection 6, the applicant may submit a written request for sponsorship by the State Public Charter School Authority not more than 30 days after receipt of the written notice of denial. Any request that is submitted pursuant to this subsection must be accompanied by the application to form the charter school.

      8.  If the State Public Charter School Authority receives an application pursuant to subsection 1 or 7, it shall consider the application at a meeting which must be held not later than 60 days after receipt of the application or a later period mutually agreed upon by the committee to form the charter school and the State Public Charter School Authority. Notice of the meeting must be posted in accordance with chapter 241 of NRS. The State Public Charter School Authority shall review the application in accordance with the requirements for review set forth in subsections 2 and 3. The State Public Charter School Authority may approve an application only if it satisfies the requirements of subsection 3. Not more than 30 days after the meeting, the State Public Charter School Authority shall provide written notice of its determination to the applicant.

      9.  If the State Public Charter School Authority denies or fails to act upon an application, the denial or failure to act must be based upon a finding that the applicant failed to satisfy the requirements of subsection 3. The State Public Charter School Authority shall include in the written notice the reasons for the denial or the failure to act and the deficiencies in the application.

 


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Public Charter School Authority shall include in the written notice the reasons for the denial or the failure to act and the deficiencies in the application. The staff designated by the State Public Charter School Authority shall meet with the applicant to confer on the method to correct the identified deficiencies. The applicant must be granted 30 days after receipt of the written notice to correct any deficiencies identified in the written notice and resubmit the application.

      10.  If the State Public Charter School Authority denies an application after it has been resubmitted pursuant to subsection 9, the applicant may, not more than 30 days after the receipt of the written notice from the State Public Charter School Authority, appeal the final determination to the district court of the county in which the proposed charter school will be located.

      11.  Notwithstanding the provisions of this section, the State Public Charter School Authority may adopt regulations establishing timelines and procedures by which the State Public Charter School Authority will review applications and the board of trustees of a school district that is approved to sponsor charter schools or a college or university within the Nevada System of Higher Education that is approved to sponsor charter schools may adopt policies establishing timelines and procedures by which the board of trustees or college or university, as applicable, will review applications. These regulations or policies may:

      (a) Establish different timelines and review procedures for different types of applicants; and

      (b) Authorize or require an applicant to submit an abbreviated application, the contents of such an application and criteria that the State Public Charter School Authority will use to determine whether to invite the applicant to submit a full application that meets the requirements of NRS 386.520 or deny the abbreviated application and recommend that the applicant make substantial revisions and submit the application during another application cycle.

      12.  The State Public Charter School Authority may enter into a contract with any qualified person to:

      (a) Foster the development of high-quality charter management organizations, educational management organizations and other persons to operate charter schools in this State;

      (b) Solicit applications to form charter schools from high-quality applicants;

      (c) Provide training concerning the governance and management of charter schools to governing bodies of charter schools and applicants to form charter schools; or

      (d) Provide professional development and support services to the administration and other employees of charter schools.

      13.  The State Public Charter School Authority may provide compensation pursuant to a contract entered into pursuant to subsection 12 using any money raised by the State Public Charter School Authority from private donors for that purpose or any money received from fees paid to the State Public Charter School Authority.

      14.  On or before January 1 of each odd-numbered year, the Superintendent of Public Instruction shall submit a written report to the Director of the Legislative Counsel Bureau for transmission to the next regular session of the Legislature. The report must include:

 


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      (a) A list of each application to form a charter school that was submitted to the board of trustees of a school district, the State Public Charter School Authority, a college or a university during the immediately preceding biennium;

      (b) The educational focus of each charter school for which an application was submitted;

      (c) The current status of the application; and

      (d) If the application was denied, the reasons for the denial.

      Sec. 23. NRS 386.527 is hereby amended to read as follows:

      386.527  1.  If the proposed sponsor of a charter school approves an application to form a charter school, it shall, before June 11, 2013, grant a written charter to the governing body of the charter school or, on or after June 11, 2013, negotiate and execute a charter contract with the governing body of the charter school. A charter contract must be executed not later than 60 days before the charter school commences operation. The charter contract must be in writing and incorporate, without limitation:

      (a) The performance framework for the charter school;

      (b) A description of the administrative relationship between the sponsor of the charter school and the governing body of the charter school, including, without limitation, the rights and duties of the sponsor and the governing body; and

      (c) Any pre-opening conditions which the sponsor has determined are necessary for the charter school to satisfy before the commencement of operation to ensure that the charter school meets all building, health, safety, insurance and other legal requirements.

      2.  The charter contract must be signed by a member of the governing body of the charter school and:

      (a) If the board of trustees of a school district is the sponsor of the charter school, the superintendent of schools of the school district;

      (b) If the State Public Charter School Authority is the sponsor of the charter school, the Chair of the State Public Charter School Authority; or

      (c) If a college or university within the Nevada System of Higher Education is the sponsor of the charter school, the president of the college or university.

      3.  Before the charter contract is executed, the sponsor of the charter school must approve the charter contract at a meeting of the sponsor held in accordance with chapter 241 of NRS.

      4.  The sponsor of the charter school shall, not later than 10 days after the execution of the charter contract, provide to the Department:

      (a) Written notice of the charter contract and the date of execution; and

      (b) A copy of the charter contract and any other documentation relevant to the charter contract.

      5.  If the board of trustees approves the application, the board of trustees shall be deemed the sponsor of the charter school.

      6.  If the State Public Charter School Authority approves the application:

      (a) The State Public Charter School Authority shall be deemed the sponsor of the charter school.

      (b) Neither the State of Nevada, the State Board, the State Public Charter School Authority nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

 


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      7.  If a college or university within the Nevada System of Higher Education approves the application:

      (a) That institution shall be deemed the sponsor of the charter school.

      (b) Neither the State of Nevada, the State Board nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

      8.  The governing body of a charter school may request, at any time, a change in the sponsorship of the charter school to an entity that is authorized to sponsor charter schools pursuant to NRS 386.515. The State Board shall adopt:

      (a) A process for a charter school that requests a change in the sponsorship of the charter school, which must not require the charter school to undergo all the requirements of an initial application to form a charter school; and

      (b) Objective criteria for the conditions under which such a request may be granted.

      9.  A written charter or a charter contract, as applicable, must be for a term of 6 years. The term of the charter contract begins on the first day of operation of the charter school after the charter contract has been executed. The sponsor of the charter school may require, or the governing body of the charter school may request that the sponsor authorize, the charter school to delay commencement of operation for 1 school year.

      10.  The governing body of a charter school may submit to the sponsor of the charter school a written request for an amendment of the written charter or charter contract, as applicable. [Such an amendment may include, without limitation, the expansion of instruction and other educational services to pupils who are enrolled in grade levels other than the grade levels of pupils currently approved for enrollment in the charter school.] If the proposed amendment complies with the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, and any other statute or regulation applicable to charter schools, the sponsor and the governing body of the charter school may amend the written charter or charter contract, as applicable, in accordance with the proposed amendment. A sponsor may require, as a condition of granting a request for an amendment to a governing body that has been granted a written charter, such a governing body to agree to the revocation of the written charter and to enter into a charter contract. If the sponsor denies the request for an amendment, the sponsor shall provide written notice to the governing body of the charter school setting forth the reasons for the denial.

      11.  A charter school shall not commence operation in a facility in which the charter school has not previously operated and is not eligible to receive apportionments for pupils enrolled in such a facility pursuant to NRS 387.124 until the sponsor has determined that the requirements of this section have been satisfied and that the facility the charter school will occupy has been inspected and meets the requirements of any applicable building codes, codes for the prevention of fire, and codes pertaining to safety, health and sanitation. Except as otherwise provided in this subsection, the sponsor shall make such a determination 30 days before the first day of school for the:

      (a) Schools of the school district in which the charter school is located that operate on a traditional school schedule and not a year-round school schedule; or

 


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      (b) Charter school,

Ê whichever date the sponsor selects. The sponsor shall not require a charter school to demonstrate compliance with the requirements of this subsection more than 30 days before the date selected. However, it may authorize a charter school to demonstrate compliance less than 30 days before the date selected.

      Sec. 24. NRS 386.527 is hereby amended to read as follows:

      386.527  1.  If the proposed sponsor of a charter school approves an application to form a charter school, it shall negotiate and execute a charter contract with the governing body of the charter school. A charter contract must be executed not later than 60 days before the charter school commences operation. The charter contract must be in writing and incorporate, without limitation:

      (a) The performance framework for the charter school;

      (b) A description of the administrative relationship between the sponsor of the charter school and the governing body of the charter school, including, without limitation, the rights and duties of the sponsor and the governing body; and

      (c) Any pre-opening conditions which the sponsor has determined are necessary for the charter school to satisfy before the commencement of operation to ensure that the charter school meets all building, health, safety, insurance and other legal requirements.

      2.  The charter contract must be signed by a member of the governing body of the charter school and:

      (a) If the board of trustees of a school district is the sponsor of the charter school, the superintendent of schools of the school district;

      (b) If the State Public Charter School Authority is the sponsor of the charter school, the Chair of the State Public Charter School Authority; or

      (c) If a college or university within the Nevada System of Higher Education is the sponsor of the charter school, the president of the college or university.

      3.  Before the charter contract is executed, the sponsor of the charter school must approve the charter contract at a meeting of the sponsor held in accordance with chapter 241 of NRS.

      4.  The sponsor of the charter school shall, not later than 10 days after the execution of the charter contract, provide to the Department:

      (a) Written notice of the charter contract and the date of execution; and

      (b) A copy of the charter contract and any other documentation relevant to the charter contract.

      5.  If the board of trustees approves the application, the board of trustees shall be deemed the sponsor of the charter school.

      6.  If the State Public Charter School Authority approves the application:

      (a) The State Public Charter School Authority shall be deemed the sponsor of the charter school.

      (b) Neither the State of Nevada, the State Board, the State Public Charter School Authority nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

      7.  If a college or university within the Nevada System of Higher Education approves the application:

 


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      (a) That institution shall be deemed the sponsor of the charter school.

      (b) Neither the State of Nevada, the State Board nor the Department is an employer of the members of the governing body of the charter school or any of the employees of the charter school.

      8.  The governing body of a charter school may request, at any time, a change in the sponsorship of the charter school to an entity that is authorized to sponsor charter schools pursuant to NRS 386.515. The State Board shall adopt:

      (a) A process for a charter school that requests a change in the sponsorship of the charter school, which must not require the charter school to undergo all the requirements of an initial application to form a charter school; and

      (b) Objective criteria for the conditions under which such a request may be granted.

      9.  A charter contract must be for a term of 6 years. The term of the charter contract begins on the first day of operation of the charter school after the charter contract has been executed. The sponsor of the charter school may require, or the governing body of the charter school may request that the sponsor authorize, the charter school to delay commencement of operation for 1 school year.

      10.  The governing body of a charter school may submit to the sponsor of the charter school a written request for an amendment of the charter contract. [Such an amendment may include, without limitation, the expansion of instruction and other educational services to pupils who are enrolled in grade levels other than the grade levels of pupils currently approved for enrollment in the charter school.] If the proposed amendment complies with the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, and any other statute or regulation applicable to charter schools, the sponsor and the governing body of the charter school may amend the charter contract in accordance with the proposed amendment. If the sponsor denies the request for an amendment, the sponsor shall provide written notice to the governing body of the charter school setting forth the reasons for the denial.

      11.  A charter school shall not commence operation in a facility in which the charter school has not previously operated and is not eligible to receive apportionments pursuant to NRS 387.124 for pupils enrolled in such a facility until the sponsor has determined that the requirements of this section have been satisfied and that the facility the charter school will occupy has been inspected and meets the requirements of any applicable building codes, codes for the prevention of fire, and codes pertaining to safety, health and sanitation. Except as otherwise provided in this subsection, the sponsor shall make such a determination 30 days before the first day of school for the:

      (a) Schools of the school district in which the charter school is located that operate on a traditional school schedule and not a year-round school schedule; or

      (b) Charter school,

Ê whichever date the sponsor selects. The sponsor shall not require a charter school to demonstrate compliance with the requirements of this subsection more than 30 days before the date selected. However, it may authorize a charter school to demonstrate compliance less than 30 days before the date selected.

 


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      Sec. 25. NRS 386.528 is hereby amended to read as follows:

      386.528  1.  [The] Each sponsor of a charter school shall adopt a performance framework [that is required to be incorporated] and incorporate the performance framework into the charter contract pursuant to paragraph (a) of subsection 1 of NRS 386.527 . The performance framework must include, without limitation, performance indicators, measures and metrics for the categories of academics, finances and organization as follows:

      (a) The category of academics addresses:

             (1) The academic achievement and proficiency of pupils enrolled in the charter school, including, without limitation, the progress of pupils from year-to-year based upon the model to measure the achievement of pupils adopted by the Department pursuant to NRS 385.3595;

             (2) Disparities in the academic achievement and proficiency of pupils enrolled in the charter school; and

             (3) If the charter school enrolls pupils at the high school grade level, the rate of graduation of those pupils and the preparation of those pupils for success in postsecondary educational institutions and in career and workforce readiness.

      (b) The category of finances addresses the financial condition and sustainability of the charter school.

      (c) The category of organization addresses:

             (1) The percentage of pupils who reenroll in the charter school from year-to-year;

             (2) The rate of attendance of pupils enrolled in the charter school; and

             (3) The performance of the governing body of the charter school, including, without limitation, compliance with the terms and conditions of the charter contract and the applicable statutes and regulations.

      2.  In addition to the requirements for the performance framework set forth in subsection 1, the sponsor of the charter school may, upon request of the governing body of the charter school, include additional rigorous, valid and reliable performance indicators, measures and metrics in the performance framework that are specific to the mission of the charter school and that are consistent with NRS 386.490 to 386.649, inclusive [.] , and sections 2 to 8, inclusive, of this act.

      3.  The governing body of a charter school shall, in consultation with the sponsor of the charter school, establish annual performance goals to ensure that the charter school is meeting the performance indicators, measures and metrics set forth in the performance framework in the charter contract.

      4.  If an application for renewal of a charter contract is approved, the sponsor of the charter school may review and, if necessary, revise the performance framework. Such a revised performance framework must be incorporated into the renewed charter contract.

      5.  The sponsor of a charter school shall ensure the collection, analysis and reporting of all data from the results of pupils enrolled in the charter school on statewide examinations to determine whether the charter school is meeting the performance indicators, measures and metrics for the achievement and proficiency of pupils as set forth in the performance framework for the charter school [.] in a manner that complies with all applicable federal and state laws.

      6.  The sponsor of the charter school may aggregate data reported by the State and collected by the sponsor concerning pupil achievement and school performance at separate facilities operated by the same governing body or charter management organization and across all grades served by the charter school for the purpose of evaluating and reporting pupil achievement and school performance.

 


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school performance at separate facilities operated by the same governing body or charter management organization and across all grades served by the charter school for the purpose of evaluating and reporting pupil achievement and school performance. Such an aggregation of data may include, without limitation, a weighted average of data concerning pupil achievement and school performance of each elementary school, junior high school, middle school or high school program operated by the charter school. The sponsor may also disaggregate such data by facility and by grade level or group of grade levels to provide greater transparency and accountability. The sponsor may also adopt policies for determining pupil achievement and school performance at a charter school. Any data reported pursuant to this subsection must be reported in a manner that complies with the Family Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, and any regulations adopted pursuant thereto.

      7.  The State Board may adopt regulations to place requirements on the manner in which data is reported by the board of trustees of a school district or a college or university within the Nevada System of Higher Education that sponsors a charter school including, without limitation, the manner in which data must be aggregated or disaggregated in any report.

      8.  The State Public Charter School Authority may adopt regulations establishing requirements concerning the manner in which it reports data including, without limitation, the manner in which data must be aggregated or disaggregated in any report.

      Sec. 26. NRS 386.530 is hereby amended to read as follows:

      386.530  1.  On or before June 30 immediately preceding the final school year in which a charter school is authorized to operate pursuant to its charter contract, the sponsor of the charter school shall submit to the governing body of the charter school a written report summarizing the performance of the charter school and each facility that constitutes the charter school during the term of the charter contract, including, without limitation:

      (a) A summary of the performance of the charter school based upon the terms of the charter contract and the requirements of NRS 386.490 to 386.649, inclusive [;] , and sections 2 to 8, inclusive, of this act;

      (b) An identification of any deficiencies relating to the performance of the charter school which the sponsor has determined may result in nonrenewal of the charter contract if the deficiencies remain uncorrected;

      (c) Requirements for the application for renewal of the charter contract submitted to the sponsor pursuant to subsection [2;] 3; and

      (d) The criteria that the sponsor will apply in making a determination on the application for renewal based upon the performance framework for the charter school and the requirements of NRS 386.490 to 386.649, inclusive [.] , and sections 2 to 8, inclusive, of this act. Such criteria must include, without limitation, the performance indicators, measures and metrics included in the performance framework.

      2.  The governing body of a charter school may submit a written response to the sponsor of the charter school concerning the performance report prepared by the sponsor pursuant to subsection 1, which may include any revisions or clarifications that the governing body seeks to make to the report.

      3.  If a charter school seeks to renew its charter contract, the governing body of the charter school shall submit an application for renewal to the sponsor of the charter school on or before October 15 of the final school year in which the charter school is authorized to operate pursuant to its charter contract.

 


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sponsor of the charter school on or before October 15 of the final school year in which the charter school is authorized to operate pursuant to its charter contract. The application for renewal must include, without limitation:

      (a) The requirements for the application identified by the sponsor in the performance report prepared by the sponsor pursuant to subsection 1;

      (b) A description of the academic, financial and organizational vision and plans for the charter school for the next charter term;

      (c) Any information or data that the governing body of the charter school determines supports the renewal of the charter contract in addition to the information contained in the performance report prepared by the sponsor pursuant to subsection 1 and any response submitted by the governing body pursuant to subsection 2; and

      (d) A description of any improvements to the charter school already undertaken or planned.

      4.  The sponsor of a charter school shall consider the application for renewal of the charter contract at a meeting held in accordance with chapter 241 of NRS. The sponsor shall provide written notice to the governing body of the charter school concerning its determination on the application for renewal of the charter contract not more than 60 days after receipt of the application for renewal from the governing body. The determination of the sponsor must be based upon:

      (a) The criteria of the sponsor for the renewal of charter contracts; and

      (b) Evidence of the performance of the charter school during the term of the charter contract in accordance with the performance framework for the charter school.

      5.  The sponsor of the charter school shall:

      (a) Make available to the governing body of the charter school the data used in making the renewal decision; and

      (b) Post a report on the Internet website of the sponsor summarizing the decision of the sponsor on the application for renewal and the basis for its decision.

      6.  A charter contract may be renewed for a term of 6 years.

      Sec. 27. NRS 386.535 is hereby amended to read as follows:

      386.535  Except as otherwise provided in NRS 386.5351:

      1.  [The] Except as otherwise provided in subsection 6, the sponsor of a charter school may reconstitute the governing body of a charter school, revoke a written charter or terminate a charter contract before the expiration of the charter if the sponsor determines that:

      (a) The charter school, its officers or its employees:

             (1) Committed a material breach of the terms and conditions of the written charter or charter contract;

             (2) Failed to comply with generally accepted standards of fiscal management;

             (3) Failed to comply with the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, or any other statute or regulation applicable to charter schools; or

             (4) If the charter school holds a charter contract, has persistently underperformed, as measured by the performance indicators, measures and metrics set forth in the performance framework for the charter school;

      (b) The charter school has filed for a voluntary petition of bankruptcy, is adjudicated bankrupt or insolvent, or is otherwise financially impaired such that the charter school cannot continue to operate; [or]

 


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      (c) There is reasonable cause to believe that reconstitution, revocation or termination is necessary to protect the health and safety of the pupils who are enrolled in the charter school or persons who are employed by the charter school from jeopardy, or to prevent damage to or loss of the property of the school district or the community in which the charter school is located [.] ;

      (d) The sponsor determines that the committee to form the charter school or charter management organization, as applicable, or any member of the committee to form the charter school or charter management organization, as applicable, or the governing body of the charter school has at any time made a material misrepresentation or omission concerning any information disclosed to the sponsor;

      (e) The charter school is a high school that has a graduation rate for the immediately preceding school year that is less than 60 percent;

      (f) The charter school is an elementary or middle school or junior high school that is rated in the lowest 5 percent of elementary schools, middle schools or junior high schools in the State in pupil achievement and school performance, as determined by the Department pursuant to the statewide system of accountability for public schools; or

      (g) Pupil achievement and school performance at the charter school is unsatisfactory as determined by the Department pursuant to criteria prescribed by regulation by the Department to measure the performance of any public school.

      2.  Before the sponsor reconstitutes a governing body, revokes a written charter or terminates a charter contract, the sponsor shall provide written notice of its intention to the governing body of the charter school. The written notice must:

      (a) Include a statement of the deficiencies or reasons upon which the action of the sponsor is based;

      (b) Except as otherwise provided in subsection 4, prescribe a period, not less than 30 days, during which the charter school may correct the deficiencies, including, without limitation, the date on which the period to correct the deficiencies begins and the date on which that period ends;

      (c) Prescribe the date on which the sponsor will make a determination regarding whether the charter school has corrected the deficiencies, which determination may be made during the public hearing held pursuant to subsection 3; and

      (d) Prescribe the date on which the sponsor will hold a public hearing to consider whether to reconstitute the governing body, revoke the written charter or terminate the charter contract.

      3.  Except as otherwise provided in subsection 4, not more than 90 days after the notice is provided pursuant to subsection 2, the sponsor shall hold a public hearing to make a determination regarding whether to reconstitute the governing body, revoke the written charter or terminate the charter contract. If the charter school corrects the deficiencies to the satisfaction of the sponsor within the time prescribed in paragraph (b) of subsection 2, the sponsor shall not reconstitute the governing body, revoke the written charter or terminate the charter contract of the charter school. The sponsor may not include in a written notice pursuant to subsection 2 any deficiency which was included in a previous written notice and which was corrected by the charter school, unless the deficiency recurred after being corrected [.] or the sponsor determines that the deficiency is evidence of an ongoing pattern of deficiencies in a particular area.

 


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      4.  The sponsor of a charter school and the governing body of the charter school may enter into a written agreement that prescribes different time periods than those set forth in subsections 2 and 3.

      5.  If the governing body of a charter school is reconstituted, the written charter is revoked or the charter contract is terminated, the sponsor of the charter school shall submit a written report to the Department and the governing body of the charter school setting forth the reasons for the reconstitution or termination , as applicable, not later than 10 days after reconstituting the governing body, revoking the written charter or terminating the charter contract.

      6.  The governing body of a charter school may not be reconstituted if it has been previously reconstituted.

      Sec. 28. NRS 386.5351 is hereby amended to read as follows:

      386.5351  1.  The sponsor of a charter school shall revoke the written charter or terminate the charter contract of the charter school if the charter school receives , in any period of 5 consecutive school years, three [consecutive] annual ratings established as the lowest rating possible indicating underperformance of a public school, as determined by the Department pursuant to the statewide system of accountability for public schools.

      2.  A charter school’s annual rating pursuant to the statewide system of accountability based upon the performance of the charter school for any school year before the [2013-2014] 2015-2016 school year must not be included in the count of [consecutive] annual ratings for the purposes of [this subsection.

      2.] subsection 1.

      3.  If a written charter is revoked or a charter contract is terminated pursuant to subsection 1, the sponsor of the charter school shall submit a written report to the Department and the governing body of the charter school setting forth the reasons for the revocation or termination not later than 10 days after revoking the written charter or terminating the charter contract.

      [3.]4.  The provisions of NRS 386.535 do not apply to the revocation of a written charter or termination of a charter contract pursuant to this section.

      Sec. 29. (Deleted by amendment.)

      Sec. 30. NRS 386.536 is hereby amended to read as follows:

      386.536  1.  If a charter school ceases to operate voluntarily, if a charter contract is not renewed or [upon revocation of] if a written charter is revoked or [termination of] a charter contract [,] is terminated and the sponsor does not recruit a governing body of another charter school to operate another campus of the other charter school to replace the charter school whose written charter is revoked or whose charter contract is terminated pursuant to section 6 of this act, as applicable, the governing body of the charter school shall:

      (a) Give written notice of the closure to:

             (1) The sponsor of the charter school, unless the closure results from the revocation of the written charter or the non-renewal or termination of a charter contract, as applicable;

             (2) The Director of the Department of Business and Industry;

             (3) The board of trustees of the school district in which the charter school is located, unless the board of trustees is the sponsor of the charter school and the closure results from the revocation of the written charter or the non-renewal or termination of a charter contract, as applicable;

 


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school and the closure results from the revocation of the written charter or the non-renewal or termination of a charter contract, as applicable;

             (4) The Department;

             (5) The parents or legal guardians of the pupils enrolled in the charter school; and

             (6) The creditors of the charter school;

      (b) Except as otherwise provided in subsections 4 and 5, appoint an administrator of the charter school, subject to the approval of the sponsor of the charter school, to act as a trustee during the process of the closure of the charter school and for 1 year after the date of closure;

      (c) As soon as practicable, develop and present to the sponsor of the charter school a written plan for the closure of the charter school;

      (d) Maintain an office at the charter school or elsewhere, with regular hours of operation and voice messaging stating the hours of operation;

      (e) Maintain existing insurance coverage in force for the period required by the sponsor of the charter school;

      (f) Conduct a financial audit and an inventory of all the assets of the charter school and cause a written report of the audit and inventory to be prepared for the sponsor of the charter school and the Department;

      (g) Prepare a written list of the creditors of the charter school, identifying secured creditors and the assets in which those creditors have a security interest;

      (h) Supply any information or documents required by the sponsor of the charter school; and

      (i) Protect all the assets of the charter school from theft, misappropriation, deterioration or other loss.

      2.  The notice of the closure required by subsection 1 must include:

      (a) The date of closure;

      (b) A statement of the plan of the charter school to assist pupils to identify and transfer to another school; and

      (c) The telephone number, mailing address and physical address of the office required by subsection 1.

      3.  The administrator appointed pursuant to subsection 1 shall carry out the duties prescribed for the governing body of the charter school by paragraphs (c) to (i), inclusive, of subsection 1 if the governing body ceases to exists or is otherwise unable to perform those duties and shall assume the responsibility for the records of the:

      (a) Charter school;

      (b) Employees of the charter school; and

      (c) Pupils enrolled in the charter school.

      4.  If an administrator for the charter school is no longer available to carry out the duties set forth in subsection 3, the governing body of the charter school shall appoint a qualified person to assume those duties.

      5.  If the governing body of the charter school ceases to exist or is otherwise unable to appoint an administrator pursuant to subsection 1 or a qualified person pursuant to subsection 4, the sponsor of the charter school shall appoint an administrator or a qualified person to carry out the duties set forth in subsection 3.

      6.  In addition to performing the duties set forth in subsection 3, the administrator appointed by the governing body of the charter school or the sponsor, or the qualified person appointed to carry out the duties of the administrator, shall:

 


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      (a) Cause to be paid and discharged all the liabilities and obligations of the charter school to the extent of the charter school’s assets;

      (b) Terminate any lease, service agreement or any other contract of the charter school that is not necessary to complete the closure of the charter school;

      (c) Supply any information or documents required by the sponsor of the charter school; and

      (d) After the financial affairs of the charter school have been wound up and the closure of the charter school has otherwise been completed, cause a financial audit to be prepared and cause a written report of the audit to be prepared for the sponsor of the charter school and the Department.

      7.  The governing body of the charter school or the sponsor of the charter school may, to the extent practicable, provide financial compensation to the administrator or person appointed to carry out the provisions of this section. If the sponsor of the charter school provides such financial compensation, the sponsor is entitled to receive reimbursement from the charter school for the costs incurred by the sponsor in providing the financial compensation. Such reimbursement must not exceed costs incurred for a period longer than 6 months.

      Sec. 31. NRS 386.536 is hereby amended to read as follows:

      386.536  1.  If a charter school ceases to operate voluntarily, if a charter contract is not renewed or [upon termination of] if a charter contract [,] is terminated and the sponsor does not recruit a governing body of another charter school to operate another campus of the other charter school to replace the charter school whose written charter is revoked or whose charter contract is terminated pursuant to section 6 of this act, as applicable, the governing body of the charter school shall:

      (a) Give written notice of the closure to:

             (1) The sponsor of the charter school, unless the closure results from the non-renewal or termination of a charter contract;

             (2) The Director of the Department of Business and Industry;

             (3) The board of trustees of the school district in which the charter school is located, unless the board of trustees is the sponsor of the charter school and the closure results from the non-renewal or termination of a charter contract;

             (4) The Department;

             (5) The parents or legal guardians of the pupils enrolled in the charter school; and

             (6) The creditors of the charter school;

      (b) Except as otherwise provided in subsections 4 and 5, appoint an administrator of the charter school, subject to the approval of the sponsor of the charter school, to act as a trustee during the process of the closure of the charter school and for 1 year after the date of closure;

      (c) As soon as practicable, develop and present to the sponsor of the charter school a written plan for the closure of the charter school;

      (d) Maintain an office at the charter school or elsewhere, with regular hours of operation and voice messaging stating the hours of operation;

      (e) Maintain existing insurance coverage in force for the period required by the sponsor of the charter school;

      (f) Conduct a financial audit and an inventory of all the assets of the charter school and cause a written report of the audit and inventory to be prepared for the sponsor of the charter school and the Department;

 


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      (g) Prepare a written list of the creditors of the charter school, identifying secured creditors and the assets in which those creditors have a security interest;

      (h) Supply any information or documents required by the sponsor of the charter school; and

      (i) Protect all the assets of the charter school from theft, misappropriation, deterioration or other loss.

      2.  The notice of the closure required by subsection 1 must include:

      (a) The date of closure;

      (b) A statement of the plan of the charter school to assist pupils to identify and transfer to another school; and

      (c) The telephone number, mailing address and physical address of the office required by subsection 1.

      3.  The administrator appointed pursuant to subsection 1 shall carry out the duties prescribed for the governing body of the charter school by paragraphs (c) to (i), inclusive, of subsection 1 if the governing body ceases to exists or is otherwise unable to perform those duties and shall assume the responsibility for the records of the:

      (a) Charter school;

      (b) Employees of the charter school; and

      (c) Pupils enrolled in the charter school.

      4.  If an administrator for the charter school is no longer available to carry out the duties set forth in subsection 3, the governing body of the charter school shall appoint a qualified person to assume those duties.

      5.  If the governing body of the charter school ceases to exist or is otherwise unable to appoint an administrator pursuant to subsection 1 or a qualified person pursuant to subsection 4, the sponsor of the charter school shall appoint an administrator or a qualified person to carry out the duties set forth in subsection 3.

      6.  In addition to performing the duties set forth in subsection 3, the administrator appointed by the governing body of the charter school or the sponsor, or the qualified person appointed to carry out the duties of the administrator, shall:

      (a) Cause to be paid and discharged all the liabilities and obligations of the charter school to the extent of the charter school’s assets;

      (b) Terminate any lease, service agreement or any other contract of the charter school that is not necessary to complete the closure of the charter school;

      (c) Supply any information or documents required by the sponsor of the charter school; and

      (d) After the financial affairs of the charter school have been wound up and the closure of the charter school has otherwise been completed, cause a financial audit to be prepared and cause a written report of the audit to be prepared for the sponsor of the charter school and the Department.

      7.  The governing body of the charter school or the sponsor of the charter school may, to the extent practicable, provide financial compensation to the administrator or person appointed to carry out the provisions of this section. If the sponsor of the charter school provides such financial compensation, the sponsor is entitled to receive reimbursement from the charter school for the costs incurred by the sponsor in providing the financial compensation. Such reimbursement must not exceed costs incurred for a period longer than 6 months.

 


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      Sec. 32. NRS 386.540 is hereby amended to read as follows:

      386.540  1.  The Department shall adopt regulations that prescribe:

      (a) The process for submission of an application pursuant to NRS 386.515 by the board of trustees of a school district or a college or university within the Nevada System of Higher Education to the Department for authorization to sponsor charter schools, the contents of the application, the process for the Department to review the application and the timeline for review;

      (b) The process for the Department to conduct a comprehensive review of the sponsors of charter schools that it has approved for sponsorship pursuant to NRS 386.515 at least once every 3 years;

      (c) The process for the Department to determine whether to continue or to revoke the authorization of a board of trustees of a school district or a college or university within the Nevada System of Higher Education to sponsor charter schools;

      (d) The process for submission of an application to form a charter school to the board of trustees of a school district [, the State Public Charter School Authority] and a college or university within the Nevada System of Higher Education, and the contents of the application;

      (e) The process for submission of an application to renew a charter contract [;] to the board of trustees of a school district and a college or university within the Nevada System of Higher Education, and the contents of the application;

      (f) The criteria and type of investigation that must be applied by the board of trustees [, the State Public Charter School Authority] and a college or university within the Nevada System of Higher Education in determining whether to approve an application to form a charter school, an application to renew a charter contract or a request for an amendment of a written charter or a charter contract; [and]

      (g) The process for submission of an amendment of a written charter or a charter contract to the board of trustees of a school district and a college or university within the Nevada System of Higher Education pursuant to NRS 386.527 and the contents of the application [.] ; and

      (h) In consultation with the State Public Charter School Authority, other sponsors of charter schools, governing bodies of charter schools and persons who may be affected:

             (1) Requirements for the annual independent audits of charter schools, including, without limitation, required training for prospective auditors on the expectations and scope of the audits; and

             (2) Ethics requirements for the governing bodies of charter schools.

      2.  The Department may adopt regulations as it determines are necessary to carry out the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, including, without limitation, regulations that prescribe the:

      (a) Procedures for accounting and budgeting;

      (b) Requirements for performance audits and financial audits of charter schools on an annual basis for charter schools that do not satisfy the requirements of subsection 1 of NRS 386.5515; [and]

      (c) Requirements for performance audits every 3 years and financial audits on an annual basis for charter schools that satisfy the requirements of subsection 1 of NRS 386.5515 [.] ; and

 


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      (d) Qualifications, in addition to those prescribed pursuant to NRS 386.520, of a charter management organization or committee to form a charter school that is authorized to file an application to form a charter school.

      3.  The State Public Charter School Authority shall adopt regulations that prescribe:

      (a) The process for submission to the State Public Charter School Authority of an application to form a charter school, and the contents of such an application;

      (b) The process for submission to the State Public Charter School Authority of an application to renew a charter contract, and the contents of such an application;

      (c) The process for submission to the State Public Charter School Authority of an amendment to a written charter or charter contract pursuant to NRS 386.527 and the contents of the application; and

      (d) The procedure for the investigation that the State Public Charter School Authority will conduct of an application to form a charter school, an application to renew a charter contract or an application to request an amendment of a written charter or charter contract, and the criteria that the State Public Charter School Authority will use to evaluate such applications.

      Sec. 33. NRS 386.540 is hereby amended to read as follows:

      386.540  1.  The Department shall adopt regulations that prescribe:

      (a) The process for submission of an application pursuant to NRS 386.515 by the board of trustees of a school district or a college or university within the Nevada System of Higher Education to the Department for authorization to sponsor charter schools, the contents of the application, the process for the Department to review the application and the timeline for review;

      (b) The process for the Department to conduct a comprehensive review of the sponsors of charter schools that it has approved for sponsorship pursuant to NRS 386.515 at least once every 3 years;

      (c) The process for the Department to determine whether to continue or to revoke the authorization of a board of trustees of a school district or a college or university within the Nevada System of Higher Education to sponsor charter schools;

      (d) The process for submission of an application to form a charter school to the board of trustees of a school district [, the State Public Charter School Authority] and a college or university within the Nevada System of Higher Education, and the contents of the application;

      (e) The process for submission of an application to renew a charter contract [;] to the board of trustees of a school district and a college or university within the Nevada System of Higher Education, and the contents of the application;

      (f) The criteria and type of investigation that must be applied by the board of trustees [, the State Public Charter School Authority] and a college or university within the Nevada System of Higher Education in determining whether to approve an application to form a charter school, an application to renew a charter contract or a request for an amendment of a charter contract; [and]

      (g) The process for submission of an amendment of a charter contract to the board of trustees of a school district and a college or university within the Nevada System of Higher Education pursuant to NRS 386.527 and the contents of the application [.]

 


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within the Nevada System of Higher Education pursuant to NRS 386.527 and the contents of the application [.] ; and

      (h) In consultation with the State Public Charter School Authority, other sponsors of charter schools, governing bodies of charter schools and persons who may be affected:

             (1) Requirements for the annual independent audits of charter schools, including, without limitation, required training for prospective auditors on the expectations and scope of the audits; and

             (2) Ethics requirements for the governing bodies of charter schools.

      2.  The Department may adopt regulations as it determines are necessary to carry out the provisions of NRS 386.490 to 386.649, inclusive, and sections 2 to 8, inclusive, of this act, including, without limitation, regulations that prescribe the:

      (a) Procedures for accounting and budgeting;

      (b) Requirements for performance audits and financial audits of charter schools on an annual basis for charter schools that do not satisfy the requirements of subsection 1 of NRS 386.5515; [and]

      (c) Requirements for performance audits every 3 years and financial audits on an annual basis for charter schools that satisfy the requirements of subsection 1 of NRS 386.5515 [.] ; and

      (d) Qualifications, in addition to those prescribed pursuant to NRS 386.520, of a charter management organization or committee to form a charter school that is authorized to file an application to form a charter school.

      3.  The State Public Charter School Authority shall adopt regulations that prescribe:

      (a) The process for submission to the State Public Charter School Authority of an application to form a charter school, and the contents of such an application;

      (b) The process for submission to the State Public Charter School Authority of an application to renew a charter contract, and the contents of such an application;

      (c) The process for submission to the State Public Charter School Authority of an amendment to a charter contract pursuant to NRS 386.527 and the contents of the application; and

      (d) The procedure for the investigation that the State Public Charter School Authority will conduct of an application to form a charter school, an application to renew a charter contract or an application to request an amendment of a charter contract, and the criteria that the State Public Charter School Authority will use to evaluate such applications.

      Sec. 34. NRS 386.545 is hereby amended to read as follows:

      386.545  1.  The Department and the board of trustees of a school district shall:

      (a) Upon request, provide information to the general public concerning the formation and operation of charter schools; and

      (b) Maintain a list available for public inspection that describes the location of each charter school.

      2.  The sponsor of a charter school shall:

      (a) Provide reasonable assistance to an applicant for a charter school and to a charter school in carrying out the provisions of NRS 386.490 to 386.649, inclusive [;] , and sections 2 to 8, inclusive, of this act;

 


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      (b) Provide technical and other reasonable assistance to a charter school for the operation of the charter school;

      (c) Provide information to the governing body of a charter school concerning the availability of money for the charter school, including, without limitation, money available from the Federal Government;

      (d) Provide timely access to the electronic data concerning the pupils enrolled in the charter school that is maintained pursuant to NRS 386.650; and

      (e) Provide appropriate information, education and training to a charter school and the governing body of a charter school concerning the applicable provisions of this title and any other laws and regulations that affect charter schools and the governing bodies of charter schools.

      3.  If the board of trustees of a school district is the sponsor of a charter school, the sponsor shall:

      (a) Provide the charter school with an updated list of available substitute teachers within the school district.

      (b) Provide access to school buses for use by the charter school for field trips. The school district may charge a reasonable fee for the use of the school buses [.] , which must not be greater than the amount that the board of trustees is authorized to charge the charter school for services pursuant to NRS 386.560.

      (c) If the school district offers summer school or Internet-based credit recovery classes, allow the pupils enrolled in the charter school to participate if space is available. The school district shall apply the same fees, if any, for participation of the pupils enrolled in the charter school as it applies to pupils enrolled in the school district.

      4.  If the Department prescribes a process for charter schools to report certain information, the Department may request the identified information regardless if that information is required to be submitted by charter schools pursuant to a specific statute. Upon such a request, a charter school shall provide the information if the Department includes a detailed description of the requested information and the mechanism by which the Department will pay or reimburse the charter school for the requested information, if the provision of the information will incur any costs for the charter school.

      Sec. 35. NRS 386.547 is hereby amended to read as follows:

      386.547  The State [Board] Public Charter School Authority shall:

      1.  [Review] Before March 1 of each even-numbered year:

      (a) In consultation with the Department and each board of trustees of a school district and college or university within the Nevada System of Higher Education that sponsors a charter school, review all statutes and regulations from which charter schools are not exempt and determine whether such [exemption] statutes and regulations assisted or impeded the charter schools in achieving their [educational] academic, fiscal and organizational goals and objectives [.] ;

      (b) Make recommendations to the Legislative Committee on Education concerning any legislation that would assist charter schools in achieving their academic, fiscal and organizational goals; and

      (c) Make recommendations to the State Board and the Department concerning any changes to regulations that would assist charter schools in achieving their academic, fiscal and organizational goals.

      2.  Make available information concerning the formation and operation of charter schools in this State and the academic, fiscal and organizational performance of each charter school in this State to pupils, parents and legal guardians of pupils, teachers and other educational personnel and members of the general public.

 


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performance of each charter school in this State to pupils, parents and legal guardians of pupils, teachers and other educational personnel and members of the general public. The State Public Charter School Authority shall update such information annually.

      Sec. 36. NRS 386.549 is hereby amended to read as follows:

      386.549  1.  [The] Unless a waiver is granted pursuant to subsection 6 of NRS 386.520, the governing body of a charter school must consist of:

      (a) One member who is a teacher or other person licensed pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing.

      (b) One member who:

             (1) Satisfies the qualifications of paragraph (a); or

             (2) Is a school administrator with a license issued by another state or who previously held such a license and is retired, as long as his or her license was held in good standing.

      (c) One parent or legal guardian of a pupil enrolled in the charter school who is not a teacher or an administrator at the charter school.

      (d) Two members who possess knowledge and experience in one or more of the following areas:

             (1) Accounting;

             (2) Financial services;

             (3) Law; or

             (4) Human resources.

      2.  In addition to the members who serve pursuant to subsection 1, the governing body of a charter school may include, without limitation, parents and representatives of nonprofit organizations and businesses. [Not] Unless a waiver is granted pursuant to subsection 6 of NRS 386.520, not more than two persons who serve on the governing body may represent the same organization or business or otherwise represent the interests of the same organization or business. A majority of the members of the governing body must reside in this State. If the membership of the governing body changes, the governing body shall provide written notice to the sponsor of the charter school within 10 working days after such change.

      3.  A person may serve on the governing body only if the person submits an affidavit to the sponsor of the charter school indicating that the person:

      (a) Has not been convicted of a felony relating to serving on the governing body of a charter school or any offense involving moral turpitude.

      (b) Has received training or read and understands material concerning the roles and responsibilities of members of governing bodies of charter schools and other training and material designed to assist the governing bodies of charter schools, if such training and material is provided to the person by the sponsor [.] or an application to form a charter school or amend a written charter or charter contract provides that the member would receive such training or read and understand such material.

      (c) Complies with the requirements of section 7 of this act.

      4.  The governing body of a charter school is a public body. It is hereby given such reasonable and necessary powers, not conflicting with the Constitution and the laws of the State of Nevada, as may be requisite to attain the ends for which the charter school is established and to promote the welfare of pupils who are enrolled in the charter school.

 


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      5.  The governing body of a charter school shall, during each calendar quarter, hold at least one regularly scheduled public meeting in the county in which [the charter school] a facility operated by the charter school where pupils receive instruction is located. Upon an affirmative vote of a majority of the membership of the governing body, each member is entitled to receive a salary of not more than $80 for attendance at each meeting, as fixed by the governing body, not to exceed payment for more than one meeting per month.

      6.  As used in subsection 1, “teacher” means a person who:

      (a) Holds a current license to teach issued pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing; and

      (b) Has at least 2 years of experience as an employed teacher.

Ê The term does not include a person who is employed as a substitute teacher.

      Sec. 37. NRS 386.549 is hereby amended to read as follows:

      386.549  1.  Unless a waiver is granted pursuant to subsection 6 of NRS 386.520, the governing body of a charter school must consist of:

      (a) One member who is a teacher or other person licensed pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing.

      (b) One member who:

             (1) Satisfies the qualifications of paragraph (a); or

             (2) Is a school administrator with a license issued by another state or who previously held such a license and is retired, as long as his or her license was held in good standing.

      (c) One parent or legal guardian of a pupil enrolled in the charter school who is not a teacher or an administrator at the charter school.

      (d) Two members who possess knowledge and experience in one or more of the following areas:

             (1) Accounting;

             (2) Financial services;

             (3) Law; or

             (4) Human resources.

      2.  In addition to the members who serve pursuant to subsection 1, the governing body of a charter school may include, without limitation, parents and representatives of nonprofit organizations and businesses. Unless a waiver is granted pursuant to subsection 6 of NRS 386.520, not more than two persons who serve on the governing body may represent the same organization or business or otherwise represent the interests of the same organization or business. A majority of the members of the governing body must reside in this State. If the membership of the governing body changes, the governing body shall provide written notice to the sponsor of the charter school within 10 working days after such change.

      3.  A person may serve on the governing body only if the person submits an affidavit to the sponsor of the charter school indicating that the person:

      (a) Has not been convicted of a felony relating to serving on the governing body of a charter school or any offense involving moral turpitude.

      (b) Has received training or read and understands material concerning the roles and responsibilities of members of governing bodies of charter schools and other training and material designed to assist the governing bodies of charter schools, if such training and material is provided to the person by the sponsor or an application to form a charter school or amend [a written charter or] charter contract provides that the member would receive such training or read and understand such material.

 


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bodies of charter schools, if such training and material is provided to the person by the sponsor or an application to form a charter school or amend [a written charter or] charter contract provides that the member would receive such training or read and understand such material.

      (c) Complies with the requirements of section 7 of this act.

      4.  The governing body of a charter school is a public body. It is hereby given such reasonable and necessary powers, not conflicting with the Constitution and the laws of the State of Nevada, as may be requisite to attain the ends for which the charter school is established and to promote the welfare of pupils who are enrolled in the charter school.

      5.  The governing body of a charter school shall, during each calendar quarter, hold at least one regularly scheduled public meeting in the county in which a facility operated by the charter school where pupils receive instruction is located. Upon an affirmative vote of a majority of the membership of the governing body, each member is entitled to receive a salary of not more than $80 for attendance at each meeting, as fixed by the governing body, not to exceed payment for more than one meeting per month.

      6.  As used in subsection 1, “teacher” means a person who:

      (a) Holds a current license to teach issued pursuant to chapter 391 of NRS or who previously held such a license and is retired, as long as his or her license was held in good standing; and

      (b) Has at least 2 years of experience as an employed teacher.

Ê The term does not include a person who is employed as a substitute teacher.

      Sec. 38. NRS 386.550 is hereby amended to read as follows:

      386.550  1.  A charter school shall:

      (a) Comply with all laws and regulations relating to discrimination and civil rights.

      (b) Remain nonsectarian, including, without limitation, in its educational programs, policies for admission and employment practices.

      (c) Refrain from charging tuition or fees, except for tuition or fees that the board of trustees of a school district is authorized to charge, levying taxes or issuing bonds.

      (d) Comply with any plan for desegregation ordered by a court that is in effect in the school district in which the charter school is located.

      (e) Comply with the provisions of chapter 241 of NRS.

      (f) Except as otherwise provided in this paragraph, schedule and provide annually at least as many days of instruction as are required of other public schools located in the same school district as the charter school is located. The governing body of a charter school may submit a written request to the Superintendent of Public Instruction for a waiver from providing the days of instruction required by this paragraph. The Superintendent of Public Instruction may grant such a request if the governing body demonstrates to the satisfaction of the Superintendent that:

             (1) Extenuating circumstances exist to justify the waiver; and

             (2) The charter school will provide at least as many hours or minutes of instruction as would be provided under a program consisting of 180 days.

      (g) Cooperate with the board of trustees of the school district in the administration of the examinations administered pursuant to NRS 389.550 and, if the charter school enrolls pupils at a high school grade level, the end-of-course examinations administered pursuant to NRS 389.805 and the college and career readiness assessment administered pursuant to NRS 389.807 to the pupils who are enrolled in the charter school.

 


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college and career readiness assessment administered pursuant to NRS 389.807 to the pupils who are enrolled in the charter school.

      (h) Comply with applicable statutes and regulations governing the achievement and proficiency of pupils in this State.

      (i) Provide instruction in the core academic subjects set forth in subsection 1 of NRS 389.018, as applicable for the grade levels of pupils who are enrolled in the charter school, and provide at least the courses of study that are required of pupils by statute or regulation for promotion to the next grade or graduation from a public high school and require the pupils who are enrolled in the charter school to take those courses of study. This paragraph does not preclude a charter school from offering, or requiring the pupils who are enrolled in the charter school to take, other courses of study that are required by statute or regulation.

      (j) If the parent or legal guardian of a child submits an application to enroll in kindergarten, first grade or second grade at the charter school, comply with NRS 392.040 regarding the ages for enrollment in those grades.

      (k) Refrain from using public money to purchase real property or buildings without the approval of the sponsor.

      (l) Hold harmless, indemnify and defend the sponsor of the charter school against any claim or liability arising from an act or omission by the governing body of the charter school or an employee or officer of the charter school. An action at law may not be maintained against the sponsor of a charter school for any cause of action for which the charter school has obtained liability insurance.

      (m) Provide written notice to the parents or legal guardians of pupils in grades 9 to 12, inclusive, who are enrolled in the charter school of whether the charter school is accredited by the Commission on Schools of the Northwest Association of Schools and of Colleges and Universities.

      (n) Adopt a final budget in accordance with the regulations adopted by the Department. A charter school is not required to adopt a final budget pursuant to NRS 354.598 or otherwise comply with the provisions of chapter 354 of NRS.

      (o) If the charter school provides a program of distance education pursuant to NRS 388.820 to 388.874, inclusive, comply with all statutes and regulations that are applicable to a program of distance education for purposes of the operation of the program.

      2.  A charter school shall not provide instruction through a program of distance education to children who are exempt from compulsory attendance authorized by the State Board pursuant to subsection 1 of NRS 392.070. As used in this subsection, “distance education” has the meaning ascribed to it in NRS 388.826.

      Sec. 39. NRS 386.560 is hereby amended to read as follows:

      386.560  1.  The governing body of a charter school may contract with the board of trustees of the school district in which the charter school is located or in which a pupil enrolled in the charter school resides or with the Nevada System of Higher Education for the provision of facilities to operate the charter school or to perform any service relating to the operation of the charter school, including, without limitation, transportation, the provision of health services for the pupils who are enrolled in the charter school and the provision of school police officers. If the board of trustees of a school district or a college or university within the Nevada System of Higher Education is the sponsor of the charter school, the governing body and the sponsor must enter into a service agreement pursuant to NRS 386.561 before the provision of such services.

 


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enter into a service agreement pursuant to NRS 386.561 before the provision of such services. If the board of trustees of a school district provides services to a charter school pursuant to this section, it shall not charge more than its cost for providing such services determined on a cost per pupil basis.

      2.  A charter school may use any public facility located within the school district in which the charter school is located. A charter school may use school buildings owned by the school district only upon approval of the board of trustees of the school district and during times that are not regular school hours.

      3.  The board of trustees of a school district may donate surplus personal property of the school district to a charter school that is located within the school district.

      4.  A charter school may:

      (a) Acquire by construction, purchase, devise, gift, exchange or lease, or any combination of those methods, and construct, reconstruct, improve, maintain, equip and furnish any building, structure or property to be used for any of its educational purposes and the related appurtenances, easements, rights-of-way, improvements, paving, utilities, landscaping, parking facilities and lands;

      (b) Mortgage, pledge or otherwise encumber all or any part of its property or assets;

      (c) Borrow money and otherwise incur indebtedness; and

      (d) Use public money to purchase real property or buildings with the approval of the sponsor.

      5.  Except as otherwise provided in this subsection, upon the request of a parent or legal guardian of a pupil who is enrolled in a charter school, the board of trustees of the school district in which the pupil resides shall authorize the pupil to participate in a class that is not available to the pupil at the charter school or participate in an extracurricular activity, excluding sports, at a public school within the school district if:

      (a) Space for the pupil in the class or extracurricular activity is available; and

      (b) The parent or legal guardian demonstrates to the satisfaction of the board of trustees that the pupil is qualified to participate in the class or extracurricular activity.

Ê If the board of trustees of a school district authorizes a pupil to participate in a class or extracurricular activity, excluding sports, pursuant to this subsection, the board of trustees is not required to provide transportation for the pupil to attend the class or activity. The provisions of this subsection do not apply to a pupil who is enrolled in a charter school and who desires to participate on a part-time basis in a program of distance education provided by the board of trustees of a school district pursuant to NRS 388.820 to 388.874, inclusive. Such a pupil must comply with NRS 388.858.

      6.  Upon the request of a parent or legal guardian of a pupil who is enrolled in a charter school, the board of trustees of the school district in which the pupil resides shall authorize the pupil to participate in sports at the public school that he or she would otherwise be required to attend within the school district, or upon approval of the board of trustees, any public school within the same zone of attendance as the charter school if:

 


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      (a) Space is available for the pupil to participate; and

      (b) The parent or legal guardian demonstrates to the satisfaction of the board of trustees that the pupil is qualified to participate.

Ê If the board of trustees of a school district authorizes a pupil to participate in sports pursuant to this subsection, the board of trustees is not required to provide transportation for the pupil to participate [.] unless there is space available on the transportation provided by the board of trustees and the parent of the pupil or the charter school makes arrangements for the pupil to be at a designated place to be picked up at a designated time.

      7.  The board of trustees of a school district may revoke its approval for a pupil to participate in a class, extracurricular activity or sports at a public school pursuant to subsections 5 and 6 if the board of trustees or the public school determines that the pupil has failed to comply with applicable statutes, or applicable rules and regulations of the board of trustees, the public school or the Nevada Interscholastic Activities Association. If the board of trustees so revokes its approval, neither the board of trustees nor the public school is liable for any damages relating to the denial of services to the pupil.

      Sec. 40. NRS 386.562 is hereby amended to read as follows:

      386.562  1.  A contract or a proposed contract between a charter school or a proposed charter school and a contractor or an educational management organization must not:

      (a) Give to the contractor or educational management organization direct control of educational services, financial decisions, the appointment of members of the governing body, or the hiring and dismissal of an administrator or financial officer of the charter school or proposed charter school;

      (b) Authorize the payment of loans, advances or other monetary charges from the contractor or educational management organization which are greater than 15 percent of the total expected funding received by the charter school or proposed charter school from the State Distributive School Account;

      (c) Require the charter school or proposed charter school to prepay any fees to the contractor or educational management organization;

      (d) Require the charter school or proposed charter school to pay the contractor or educational management organization before the payment of other obligations of the charter school or proposed charter school during a period of financial distress;

      (e) Allow a contractor or educational management organization to cause a delay in the repayment of a loan or other money advanced by the contractor or educational management organization to the charter school or proposed charter school, which delay would increase the cost to the charter school or proposed charter school of repaying the loan or advance;

      (f) Require the charter school or proposed charter school to enroll a minimum number of pupils for the continuation of the contract between the charter school or proposed charter school and the contractor or educational management organization;

      (g) Require the charter school or proposed charter school to request or borrow money from this State to pay the contractor or educational management organization if the contractor or educational management organization will provide financial management to the charter school or proposed charter school;

 


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      (h) Contain a provision which restricts the ability of the charter school or proposed charter school to borrow money from a person or entity other than the contractor or educational management organization;

      (i) Provide for the allocation to the charter school or proposed charter school of any indirect cost incurred by the contractor or educational management organization;

      (j) Authorize the payment of fees to the contractor or educational management organization which are not attributable to the actual services provided by the contractor or educational management organization;

      (k) Allow any money received by the charter school or proposed charter school from this State or from the board of trustees of a school district to be transferred to or deposited in a bank, credit union or other financial institution outside this State, including money controlled by the contractor or educational management organization; [or]

      (l) Except as otherwise provided in this paragraph, provide incentive fees to the contractor or educational management organization. A contract or a proposed contract may provide to the contractor or educational management organization incentive fees that are based on the academic improvement of pupils enrolled in the charter school [.] ;

      (m) Require automatic renewal of the contract or provide that the contract remains in effect if the governing body of a charter school is reconstituted, a written charter is revoked or a charter contract is terminated pursuant to NRS 386.535 or 386.5351, as applicable;

      (n) Contain any provision that would delay or prevent the approval of an application by the governing body of the charter school for an exemption from federal taxation pursuant to 26 U.S.C. § 501(c)(3);

      (o) Require the governing body of the charter school to pay any costs associated with ensuring that services comply with state and federal law;

      (p) Provide that the contractor or educational management organization is not liable for failing to comply with the requirements of the contract; or

      (q) Provide for the enforcement of terms of the contract that conflict with an applicable written charter, charter contract or federal or state law.

      2.  As used in this section, “contractor” or “educational management organization” means a corporation, business, organization or other entity, whether or not conducted for profit, with whom a committee to form a charter school or the governing body of a charter school, as applicable, contracts to assist with the operation, management or provision and implementation of educational services and programs of the charter school or proposed charter school. The term includes a corporation, business, organization or other entity that directly employs and provides personnel to a charter school or proposed charter school.

      Sec. 41. NRS 386.562 is hereby amended to read as follows:

      386.562  1.  A contract or a proposed contract between a charter school or a proposed charter school and a contractor or an educational management organization must not:

      (a) Give to the contractor or educational management organization direct control of educational services, financial decisions, the appointment of members of the governing body, or the hiring and dismissal of an administrator or financial officer of the charter school or proposed charter school;

 


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      (b) Authorize the payment of loans, advances or other monetary charges from the contractor or educational management organization which are greater than 15 percent of the total expected funding received by the charter school or proposed charter school from the State Distributive School Account;

      (c) Require the charter school or proposed charter school to prepay any fees to the contractor or educational management organization;

      (d) Require the charter school or proposed charter school to pay the contractor or educational management organization before the payment of other obligations of the charter school or proposed charter school during a period of financial distress;

      (e) Allow a contractor or educational management organization to cause a delay in the repayment of a loan or other money advanced by the contractor or educational management organization to the charter school or proposed charter school, which delay would increase the cost to the charter school or proposed charter school of repaying the loan or advance;

      (f) Require the charter school or proposed charter school to enroll a minimum number of pupils for the continuation of the contract between the charter school or proposed charter school and the contractor or educational management organization;

      (g) Require the charter school or proposed charter school to request or borrow money from this State to pay the contractor or educational management organization if the contractor or educational management organization will provide financial management to the charter school or proposed charter school;

      (h) Contain a provision which restricts the ability of the charter school or proposed charter school to borrow money from a person or entity other than the contractor or educational management organization;

      (i) Provide for the allocation to the charter school or proposed charter school of any indirect cost incurred by the contractor or educational management organization;

      (j) Authorize the payment of fees to the contractor or educational management organization which are not attributable to the actual services provided by the contractor or educational management organization;

      (k) Allow any money received by the charter school or proposed charter school from this State or from the board of trustees of a school district to be transferred to or deposited in a bank, credit union or other financial institution outside this State, including money controlled by the contractor or educational management organization;

      (l) Except as otherwise provided in this paragraph, provide incentive fees to the contractor or educational management organization. A contract or a proposed contract may provide to the contractor or educational management organization incentive fees that are based on the academic improvement of pupils enrolled in the charter school;

      (m) Require automatic renewal of the contract or provide that the contract remains in effect if the governing body of a charter school is reconstituted [, a written charter is revoked] or a charter contract is terminated pursuant to NRS 386.535 or 386.5351, as applicable;

      (n) Contain any provision that would delay or prevent the approval of an application by the governing body of the charter school for an exemption from federal taxation pursuant to 26 U.S.C. § 501 (c)(3);

 


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      (o) Require the governing body of the charter school to pay any costs associated with ensuring that services comply with state and federal law;

      (p) Provide that the contractor or educational management organization is not liable for failing to comply with the requirements of the contract; or

      (q) Provide for the enforcement of terms of the contract that conflict with an applicable [written charter,] charter contract or federal or state law.

      2.  As used in this section, “contractor” or “educational management organization” means a corporation, business, organization or other entity, whether or not conducted for profit, with whom a committee to form a charter school or the governing body of a charter school, as applicable, contracts to assist with the operation, management or provision and implementation of educational services and programs of the charter school or proposed charter school. The term includes a corporation, business, organization or other entity that directly employs and provides personnel to a charter school or proposed charter school.

      Sec. 42. NRS 386.577 is hereby amended to read as follows:

      386.577  1.  After deducting the costs directly related to administering the Account for Charter Schools, the State Public Charter School Authority may use the money in the Account for Charter Schools, including repayments of principal and interest on loans made from the Account, and interest and income earned on money in the Account, only to make loans at or below market rate to charter schools for the costs [incurred:] identified in the loan application for use:

      (a) In preparing a charter school to commence its first year of operation; [and]

      (b) To improve a charter school that has been in operation [.] ; and

      (c) To fund recruitment of teachers and pupils to new charter school facilities and enrollment of pupils in such facilities.

      2.  The total amount of a loan that may be made to a charter school pursuant to subsection 1 must not exceed the lesser of an amount equal to $500 per pupil enrolled or to be enrolled at the charter school or $200,000.

      Sec. 43. NRS 386.578 is hereby amended to read as follows:

      386.578  1.  If the governing body of a charter school has a written charter issued or a charter contract executed pursuant to NRS 386.527, the governing body may submit an application to the State Public Charter School Authority for a loan from the Account for Charter Schools. An application must include a written description of the manner in which the loan will be used to prepare the charter school for its first year of operation or to improve a charter school that has been in operation.

      2.  The State Public Charter School Authority shall, within the limits of money available for use in the Account, make loans to charter schools whose applications have been approved. If the State Public Charter School Authority makes a loan from the Account, the State Public Charter School Authority shall ensure that the contract for the loan includes all terms and conditions for repayment of the loan.

      3.  The State [Board:] Public Charter School Authority:

      (a) Shall adopt regulations that prescribe the:

             (1) Annual deadline for submission of an application to the State Public Charter School Authority by a charter school that desires to receive a loan from the Account; and

             (2) Period for repayment and the rate of interest for loans made from the Account.

 


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      (b) May adopt such other regulations as it deems necessary to carry out the provisions of this section and NRS 386.576 and 386.577.

      Sec. 44. NRS 386.580 is hereby amended to read as follows:

      386.580  1.  An application for enrollment in a charter school may be submitted to the governing body of the charter school by the parent or legal guardian of any child who resides in this State. Except as otherwise provided in this subsection , [and] subsection 2 [,] and section 6 of this act, a charter school shall enroll pupils who are eligible for enrollment in the order in which the applications are received. If the board of trustees of the school district in which the charter school is located has established zones of attendance pursuant to NRS 388.040, the charter school shall, if practicable, ensure that the racial composition of pupils enrolled in the charter school does not differ by more than 10 percent from the racial composition of pupils who attend public schools in the zone in which the charter school is located. If a charter school is sponsored by the board of trustees of a school district located in a county whose population is 100,000 or more, except for a program of distance education provided by the charter school, the charter school shall enroll pupils who are eligible for enrollment who reside in the school district in which the charter school is located before enrolling pupils who reside outside the school district. Except as otherwise provided in subsection 2, if more pupils who are eligible for enrollment apply for enrollment in the charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      2.  Before a charter school enrolls pupils who are eligible for enrollment, a charter school may enroll a child who:

      (a) Is a sibling of a pupil who is currently enrolled in the charter school;

      (b) Was enrolled, free of charge and on the basis of a lottery system, in a prekindergarten program at the charter school or any other early childhood educational program affiliated with the charter school;

      (c) Is a child of a person who is:

             (1) Employed by the charter school;

             (2) A member of the committee to form the charter school; or

             (3) A member of the governing body of the charter school;

      (d) Is in a particular category of at-risk pupils and the child meets the eligibility for enrollment prescribed by the charter school for that particular category; or

      (e) Resides within the school district and within 2 miles of the charter school if the charter school is located in an area that the sponsor of the charter school determines includes a high percentage of children who are at risk. If space is available after the charter school enrolls pupils pursuant to this paragraph, the charter school may enroll children who reside outside the school district but within 2 miles of the charter school if the charter school is located within an area that the sponsor determines includes a high percentage of children who are at risk.

Ê If more pupils described in this subsection who are eligible apply for enrollment than the number of spaces available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      3.  Except as otherwise provided in subsection 8, a charter school shall not accept applications for enrollment in the charter school or otherwise discriminate based on the:

 


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      (a) Race;

      (b) Gender;

      (c) Religion;

      (d) Ethnicity; or

      (e) Disability,

Ê of a pupil.

      4.  If the governing body of a charter school determines that the charter school is unable to provide an appropriate special education program and related services for a particular disability of a pupil who is enrolled in the charter school, the governing body may request that the board of trustees of the school district of the county in which the pupil resides transfer that pupil to an appropriate school.

      5.  Except as otherwise provided in this subsection, upon the request of a parent or legal guardian of a child who is enrolled in a public school of a school district or a private school, or a parent or legal guardian of a homeschooled child, the governing body of the charter school shall authorize the child to participate in a class that is not otherwise available to the child at his or her school or homeschool or participate in an extracurricular activity at the charter school if:

      (a) Space for the child in the class or extracurricular activity is available;

      (b) The parent or legal guardian demonstrates to the satisfaction of the governing body that the child is qualified to participate in the class or extracurricular activity; and

      (c) The child is a homeschooled child and a notice of intent of a homeschooled child to participate in programs and activities is filed for the child with the school district in which the child resides for the current school year pursuant to NRS 392.705.

Ê If the governing body of a charter school authorizes a child to participate in a class or extracurricular activity pursuant to this subsection, the governing body is not required to provide transportation for the child to attend the class or activity. A charter school shall not authorize such a child to participate in a class or activity through a program of distance education provided by the charter school pursuant to NRS 388.820 to 388.874, inclusive.

      6.  The governing body of a charter school may revoke its approval for a child to participate in a class or extracurricular activity at a charter school pursuant to subsection 5 if the governing body determines that the child has failed to comply with applicable statutes, or applicable rules and regulations. If the governing body so revokes its approval, neither the governing body nor the charter school is liable for any damages relating to the denial of services to the child.

      7.  The governing body of a charter school may, before authorizing a homeschooled child to participate in a class or extracurricular activity pursuant to subsection 5, require proof of the identity of the child, including, without limitation, the birth certificate of the child or other documentation sufficient to establish the identity of the child.

      8.  This section does not preclude the formation of a charter school that is dedicated to provide educational services exclusively to pupils:

      (a) With disabilities;

      (b) Who pose such severe disciplinary problems that they warrant a specific educational program, including, without limitation, a charter school specifically designed to serve a single gender that emphasizes personal responsibility and rehabilitation; or

 


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school specifically designed to serve a single gender that emphasizes personal responsibility and rehabilitation; or

      (c) Who are at risk.

Ê If more eligible pupils apply for enrollment in such a charter school than the number of spaces which are available, the charter school shall determine which applicants to enroll pursuant to this subsection on the basis of a lottery system.

      Sec. 45. NRS 386.584 is hereby amended to read as follows:

      386.584  1.  If a charter school provides instruction to pupils enrolled in a high school grade level and the charter school requires those pupils to satisfy requirements for graduation from high school that are less than the requirements imposed by the school district in which the charter school is located, the charter school shall not issue a high school diploma of the school district but may issue a high school diploma which clearly indicates that it is a diploma issued by a charter school. If a charter school requires its pupils to satisfy requirements for graduation from high school that meet or exceed the requirements of the school district in which the charter school is located, the charter school may issue a high school diploma of the school district or a high school diploma of the charter school.

      2.  A charter school shall submit the form for a diploma of the charter school to the Department for approval if the form differs from the form of the school district in which the charter school is located.

      3.  The provisions of this section do not [authorize] :

      (a) Authorize a charter school to impose requirements for graduation from high school that are less than the requirements of the applicable state statutes and regulations.

      (b) Require a charter school that imposes requirements for graduation from high school that are more stringent than the requirements of applicable state statutes and regulations and more stringent than the requirements of the school district in which the charter school is located to issue a high school diploma to a pupil who has not met the requirements for graduation from the charter school even if the pupil has met the requirements of applicable state statutes and regulations or the requirements of the school district in which the charter school is located.

      Sec. 46. NRS 386.585 is hereby amended to read as follows:

      386.585  1.  A governing body of a charter school shall adopt:

      (a) Written rules of behavior required of and prohibited for pupils attending the charter school; and

      (b) Appropriate punishments for violations of the rules.

      2.  Except as otherwise provided in subsection 3, if suspension or expulsion of a pupil is used as a punishment for a violation of the rules, the charter school shall ensure that, before the suspension or expulsion, the pupil and, if the pupil is under 18 years of age, the parent or guardian of the pupil, has been given notice of the charges against him or her, an explanation of the evidence and an opportunity for a hearing. The provisions of chapter 241 of NRS do not apply to any hearing conducted pursuant to this section. Such a hearing must be closed to the public.

      3.  A pupil who poses a continuing danger to persons or property or an ongoing threat of disrupting the academic process or who is selling or distributing any controlled substance or who is found to be in possession of a dangerous weapon as provided in NRS 392.466 may be removed from the charter school immediately upon being given an explanation of the reasons for his or her removal and pending proceedings, which must be conducted as soon as practicable after removal, for suspension or expulsion of the pupil.

 


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for his or her removal and pending proceedings, which must be conducted as soon as practicable after removal, for suspension or expulsion of the pupil.

      4.  A pupil who is enrolled in a charter school and participating in a program of special education pursuant to NRS 388.520, other than a pupil who is gifted and talented or who receives early intervening services, may, in accordance with the procedural policy adopted by the governing body of the charter school for such matters, be:

      (a) Suspended from the charter school pursuant to this section for not more than 10 days.

      (b) Suspended from the charter school for more than 10 days or permanently expelled from school pursuant to this section only after the governing body has reviewed the circumstances and determined that the action is in compliance with the Individuals with Disabilities Education Act, 20 U.S.C. §§ 1400 et seq.

      5.  A copy of the rules of behavior, prescribed punishments and procedures to be followed in imposing punishments must be:

      (a) Distributed to each pupil at the beginning of the school year and to each new pupil who enters school during the year.

      (b) Available for public inspection at the charter school.

      6.  The governing body of a charter school may adopt rules relating to the truancy of pupils who are enrolled in the charter school if the rules are at least as restrictive as the provisions governing truancy set forth in NRS 392.130 to 392.220, inclusive. If a governing body adopts rules governing truancy, it shall include the rules in the written rules adopted by the governing body pursuant to subsection 1.

      Sec. 47. NRS 386.590 is hereby amended to read as follows:

      386.590  1.  Except as otherwise provided in this subsection, at least 70 percent of the teachers who provide instruction at a charter school must be [licensed teachers.] highly qualified. If a charter school is a vocational school, the charter school shall, to the extent practicable, ensure that at least 70 percent of the teachers who provide instruction at the school are [licensed teachers,] highly qualified, but in no event may [more] less than 50 percent of the teachers who provide instruction at the school be [unlicensed teachers.

      2.  A governing body of a charter school shall employ:

      (a) If the charter school offers instruction in kindergarten or grade 1, 2, 3, 4, 5, 6, 7 or 8, a licensed teacher to teach pupils who are enrolled in those grades. If required by subsection 3 or 4, such a teacher must possess the qualifications required by 20 U.S.C. § 6319(a).

      (b) If the charter school offers instruction in grade 9, 10, 11 or 12, a licensed teacher to teach pupils who are enrolled in those grades for the subjects set forth in subsection 4. If required by subsection 3 or 4, such a teacher must possess the qualifications required by 20 U.S.C. § 6319(a).

      (c) In addition to the requirements of paragraphs (a) and (b):

             (1)] highly qualified.

      2.  If a charter school specializes in [arts] :

      (a) Arts and humanities, physical education or health education, a [licensed] teacher must be highly qualified to teach those courses of study.

             [(2) If a charter school specializes in the]

      (b) The construction industry or other building industry, [licensed] teachers must be highly qualified to teach courses of study relating to the industry if those teachers are employed full-time.

             [(3) If a charter school specializes in the]

 


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      (c) The construction industry or other building industry and the school offers courses of study in computer education, technology or business, [licensed] teachers must be highly qualified to teach those courses of study if those teachers are employed full-time.

      3.  A person who is initially hired by the governing body of a charter school on or after January 8, 2002, to teach in a program supported with money from Title I must [possess the qualifications required by 20 U.S.C. § 6319(a).] be highly qualified. For the purposes of this subsection, a person is not “initially hired” if the person has been employed as a teacher by another school district or charter school in this State without an interruption in employment before the date of hire by his or her current employer.

      4.  A teacher who is employed by a charter school, regardless of the date of hire, must, on or before July 1, 2006, [possess the qualifications required by 20 U.S.C. § 6319(a)] be highly qualified if the teacher teaches one or more of the following subjects:

      (a) English, reading or language arts;

      (b) Mathematics;

      (c) Science;

      (d) Foreign language;

      (e) Civics or government;

      (f) Economics;

      (g) Geography;

      (h) History; or

      (i) The arts.

      5.  Except as otherwise provided in NRS 386.588, a charter school may employ a person who is not [licensed pursuant to the provisions of chapter 391 of NRS] highly qualified to teach a course of study for which a [licensed] teacher is not required [pursuant to subsections 2, 3 and 4] to be highly qualified if the person has:

      (a) A degree, a license or a certificate in the field for which the person is employed to teach at the charter school; and

      (b) At least 2 years of experience in that field.

      6.  A teacher who is employed by a charter school to teach special education or English as a second language must be licensed to teach special education or English as a second language, as applicable.

      7.Except as otherwise provided in NRS 386.588, a charter school shall employ such administrators for the school as it deems necessary. A person employed as an administrator must possess:

      (a) A valid teacher’s license issued pursuant to chapter 391 of NRS with an administrative endorsement;

      (b) A master’s degree in school administration, public administration or business administration; or

      (c) At least 5 years of experience in school administration, public administration or business administration and a baccalaureate degree.

      [7.]8. Except as otherwise provided in subsection [8,] 9, the portion of the salary or other compensation of an administrator employed by a charter school that is derived from public funds must not exceed the salary or other compensation, as applicable, of the highest paid administrator in a comparable position in the school district in which the charter school is located. For purposes of determining the salary or other compensation of the highest paid administrator in a comparable position in the school district, the salary or other compensation of the superintendent of schools of that school district must not be included in the determination.

 


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salary or other compensation of the superintendent of schools of that school district must not be included in the determination.

      [8.]9. If the salary or other compensation paid to an administrator employed by a charter school from public funds exceeds the maximum amount prescribed in subsection [7,] 8, the sponsor of the charter school shall conduct an audit of the salary or compensation. The audit must include, without limitation, a review of the reasons set forth by the governing body of the charter school for the salary or other compensation and the interests of the public in using public funds to pay that salary or compensation. If the sponsor determines that the payment of the salary or other compensation from public funds is justified, the sponsor shall provide written documentation of its determination to the governing body of the charter school and to the Department. If the sponsor determines that the payment of the salary or other compensation from public funds is not justified, the governing body of the charter school shall reduce the salary or compensation paid to the administrator from public funds to an amount not to exceed the maximum amount prescribed in subsection [7.] 8.

      [9.]10. A charter school shall not employ a person pursuant to this section if the person’s license to teach or provide other educational services has been revoked or suspended in this State or another state.

      [10.]11. On or before November 15 of each year, a charter school shall submit to the Department, in a format prescribed by the Superintendent of Public Instruction, the following information for each person who is licensed pursuant to chapter 391 of NRS and who is employed by the governing body on October 1 of that year:

      (a) The amount of salary or compensation of the licensed person, including, without limitation, verification of compliance with subsection [7,] 8, if applicable to that person; and

      (b) The designated assignment, as that term is defined by the Department, of the licensed person.

      12.  For purposes of this section, a teacher is highly qualified:

      (a) If employed by a charter school that has not received, within the immediately preceding 2 consecutive school years, one of the three highest ratings of performance pursuant to the statewide system of accountability for public schools, or equivalent ratings in another state, as determined by the Department, if the teacher:

             (1) Meets the qualifications prescribed in 20 U.S.C. § 7801(23)(B) or (C), as applicable; and

             (2) Is licensed to teach pursuant to chapter 391 of NRS.

      (b) If employed by a charter school that has received, within the immediately preceding 2 consecutive school years, one of the three highest ratings of performance pursuant to the statewide system of accountability for public schools, or equivalent ratings in another state, as determined by the Department, if the teacher meets the qualifications prescribed in 20 U.S.C. § 7801(23)(B) or (C), as applicable, regardless of whether the teacher is licensed to teach pursuant to chapter 391 of NRS.

      13.  If a charter school that has received within the immediately preceding 2 consecutive school years, one of the three highest ratings of performance pursuant to the statewide system of accountability for public schools, or equivalent ratings in another state, as determined by the Department, intends to employ persons to teach who are not licensed, the charter school shall within 3 years:

 


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      (a) Obtain approval for and offer an alternative route to licensure pursuant to NRS 391.019; or

      (b) Enter into an agreement with a qualified provider of an alternative route to licensure to provide the required education and training to unlicensed teachers who are employed by the school to teach such a course of study.

      Sec. 48. NRS 388.795 is hereby amended to read as follows:

      388.795  1.  The Commission shall establish a plan for the use of educational technology in the public schools of this State. In preparing the plan, the Commission shall consider:

      (a) Plans that have been adopted by the Department and the school districts and charter schools in this State;

      (b) Plans that have been adopted in other states;

      (c) The information reported pursuant to paragraph (v) of subsection 2 of NRS 385.347 and similar information included in the annual report of accountability information prepared by the State Public Charter School Authority and a college or university within the Nevada System of Higher Education that sponsors a charter school pursuant to subsection 3 of NRS 385.347;

      (d) The results of the assessment of needs conducted pursuant to subsection 6; and

      (e) Any other information that the Commission or the Committee deems relevant to the preparation of the plan.

      2.  The plan established by the Commission must include recommendations for methods to:

      (a) Incorporate educational technology into the public schools of this State;

      (b) Increase the number of pupils in the public schools of this State who have access to educational technology;

      (c) Increase the availability of educational technology to assist licensed teachers and other educational personnel in complying with the requirements of continuing education, including, without limitation, the receipt of credit for college courses completed through the use of educational technology;

      (d) Facilitate the exchange of ideas to improve the achievement of pupils who are enrolled in the public schools of this State; and

      (e) Address the needs of teachers in incorporating the use of educational technology in the classroom, including, without limitation, the completion of training that is sufficient to enable the teachers to instruct pupils in the use of educational technology.

      3.  The Department shall provide:

      (a) Administrative support;

      (b) Equipment; and

      (c) Office space,

Ê as is necessary for the Commission to carry out the provisions of this section.

      4.  The following entities shall cooperate with the Commission in carrying out the provisions of this section:

      (a) The State Board.

      (b) The board of trustees of each school district.

      (c) The superintendent of schools of each school district.

      (d) The Department.

      5.  The Commission shall:

 


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      (a) Develop technical standards for educational technology and any electrical or structural appurtenances necessary thereto, including, without limitation, uniform specifications for computer hardware and wiring, to ensure that such technology is compatible, uniform and can be interconnected throughout the public schools of this State.

      (b) Allocate money to the school districts from the Trust Fund for Educational Technology created pursuant to NRS 388.800 and any money appropriated by the Legislature for educational technology, subject to any priorities for such allocation established by the Legislature.

      (c) Establish criteria for the board of trustees of a school district that receives an allocation of money from the Commission to:

             (1) Repair, replace and maintain computer systems.

             (2) Upgrade and improve computer hardware and software and other educational technology.

             (3) Provide training, installation and technical support related to the use of educational technology within the district.

      (d) Submit to the Governor, the Committee and the Department its plan for the use of educational technology in the public schools of this State and any recommendations for legislation.

      (e) Review the plan annually and make revisions as it deems necessary or as directed by the Committee or the Department.

      (f) In addition to the recommendations set forth in the plan pursuant to subsection 2, make further recommendations to the Committee and the Department as the Commission deems necessary.

      6.  During the spring semester of each even-numbered school year, the Commission shall conduct an assessment of the needs of each school district relating to educational technology. In conducting the assessment, the Commission shall consider:

      (a) The recommendations set forth in the plan pursuant to subsection 2;

      (b) The plan for educational technology of each school district, if applicable;

      (c) Evaluations of educational technology conducted for the State or for a school district, if applicable; and

      (d) Any other information deemed relevant by the Commission.

Ê The Commission shall submit a final written report of the assessment to the Superintendent of Public Instruction on or before April 1 of each even-numbered year.

      7.  The Superintendent of Public Instruction shall prepare a written compilation of the results of the assessment conducted by the Commission and transmit the written compilation on or before June 1 of each even-numbered year to the Legislative Committee on Education and to the Director of the Legislative Counsel Bureau for transmission to the next regular session of the Legislature.

      8.  The Commission may appoint an advisory committee composed of members of the Commission or other qualified persons to provide recommendations to the Commission regarding standards for the establishment, coordination and use of a telecommunications network in the public schools throughout the various school districts in this State. The advisory committee serves at the pleasure of the Commission and without compensation unless an appropriation or other money for that purpose is provided by the Legislature.

 


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      9.  As used in this section, “public school” includes the Caliente Youth Center, the Nevada Youth Training Center and any other state facility for the detention of children that is operated pursuant to title 5 of NRS.

      Sec. 49. NRS 388.800 is hereby amended to read as follows:

      388.800  1.  The Trust Fund for Educational Technology is hereby created in the State General Fund. The Trust Fund must be administered by the Superintendent of Public Instruction. The Superintendent may accept gifts and grants of money from any source for deposit in the Trust Fund. Any such money may be expended in accordance with the terms and conditions of the gift or grant, or in accordance with subsection 3.

      2.  The interest and income earned on the money in the Trust Fund must be credited to the Trust Fund.

      3.  The money in the Trust Fund may be used only for the distribution of money to school districts and charter schools to be used in kindergarten through 12th grade to obtain and maintain hardware and software for computer systems, equipment for transfer of data by modem through connection to telephone lines, and other educational technology as may be approved by the Commission for use in classrooms.

      Sec. 50. NRS 388.805 is hereby amended to read as follows:

      388.805  The Department shall, in consultation with the Commission, adopt regulations that establish a program whereby school districts and charter schools may apply to the Commission on Educational Technology for money from the Trust Fund for Educational Technology.

      Sec. 51. NRS 391.170 is hereby amended to read as follows:

      391.170  1.  Except as otherwise provided in subsection 2, a teacher or other employee for whom a license is required is not entitled to receive any portion of public money for schools as compensation for services rendered unless he or she:

      (a) Is legally employed by the board of trustees of the school district or the governing body of the charter school in which he or she is teaching or performing other educational functions.

      (b) Has a license authorizing him or her to teach or perform other educational functions at the level and, except as otherwise provided in NRS 391.125, in the field for which he or she is employed, issued in accordance with law and in full force at the time the services are rendered.

      2.  The provisions of subsection 1 do not prohibit the payment of public money to teachers or other employees who are employed by a charter school [for whom a license is] who are not required to be highly qualified pursuant to the provisions of NRS 386.590.

      3.  As used in this section, “highly qualified” has the meaning ascribed to it in 20 U.S.C. § 7801.

      Sec. 52. NRS 288.150 is hereby amended to read as follows:

      288.150  1.  Except as provided in subsection 4, every local government employer shall negotiate in good faith through one or more representatives of its own choosing concerning the mandatory subjects of bargaining set forth in subsection 2 with the designated representatives of the recognized employee organization, if any, for each appropriate bargaining unit among its employees. If either party so requests, agreements reached must be reduced to writing.

      2.  The scope of mandatory bargaining is limited to:

      (a) Salary or wage rates or other forms of direct monetary compensation.

      (b) Sick leave.

      (c) Vacation leave.

 


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      (d) Holidays.

      (e) Other paid or nonpaid leaves of absence.

      (f) Insurance benefits.

      (g) Total hours of work required of an employee on each workday or workweek.

      (h) Total number of days’ work required of an employee in a work year.

      (i) [Discharge] Except as otherwise provided in subsection 6, discharge and disciplinary procedures.

      (j) Recognition clause.

      (k) The method used to classify employees in the bargaining unit.

      (l) Deduction of dues for the recognized employee organization.

      (m) Protection of employees in the bargaining unit from discrimination because of participation in recognized employee organizations consistent with the provisions of this chapter.

      (n) No-strike provisions consistent with the provisions of this chapter.

      (o) Grievance and arbitration procedures for resolution of disputes relating to interpretation or application of collective bargaining agreements.

      (p) General savings clauses.

      (q) Duration of collective bargaining agreements.

      (r) Safety of the employee.

      (s) Teacher preparation time.

      (t) Materials and supplies for classrooms.

      (u) The policies for the transfer and reassignment of teachers.

      (v) Procedures for reduction in workforce consistent with the provisions of this chapter.

      (w) Procedures and requirements for the reopening of collective bargaining agreements that exceed 1 year in duration for additional, further, new or supplementary negotiations during periods of fiscal emergency. The requirements for the reopening of a collective bargaining agreement must include, without limitation, measures of revenue shortfalls or reductions relative to economic indicators such as the Consumer Price Index, as agreed upon by both parties.

      3.  Those subject matters which are not within the scope of mandatory bargaining and which are reserved to the local government employer without negotiation include:

      (a) Except as otherwise provided in paragraph (u) of subsection 2, the right to hire, direct, assign or transfer an employee, but excluding the right to assign or transfer an employee as a form of discipline.

      (b) The right to reduce in force or lay off any employee because of lack of work or lack of money, subject to paragraph (v) of subsection 2.

      (c) The right to determine:

             (1) Appropriate staffing levels and work performance standards, except for safety considerations;

             (2) The content of the workday, including without limitation workload factors, except for safety considerations;

             (3) The quality and quantity of services to be offered to the public; and

             (4) The means and methods of offering those services.

      (d) Safety of the public.

      4.  Notwithstanding the provisions of any collective bargaining agreement negotiated pursuant to this chapter, a local government employer is entitled to take whatever actions may be necessary to carry out its responsibilities in situations of emergency such as a riot, military action, natural disaster or civil disorder.

 


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natural disaster or civil disorder. Those actions may include the suspension of any collective bargaining agreement for the duration of the emergency. Any acti0on taken under the provisions of this subsection must not be construed as a failure to negotiate in good faith.

      5.  The provisions of this chapter, including without limitation the provisions of this section, recognize and declare the ultimate right and responsibility of the local government employer to manage its operation in the most efficient manner consistent with the best interests of all its citizens, its taxpayers and its employees.

      6.  If the sponsor of a charter school reconstitutes the governing body of a charter school pursuant to NRS 386.535, the new governing body may terminate the employment of any teachers or other employees of the charter school, and any provision of any agreement negotiated pursuant to this chapter that provides otherwise is unenforceable and void.

      7.  This section does not preclude, but this chapter does not require, the local government employer to negotiate subject matters enumerated in subsection 3 which are outside the scope of mandatory bargaining. The local government employer shall discuss subject matters outside the scope of mandatory bargaining but it is not required to negotiate those matters.

      [7.]8.  Contract provisions presently existing in signed and ratified agreements as of May 15, 1975, at 12 p.m. remain negotiable.

      Sec. 53. Section 4 of this act is hereby amended to read as follows:

      Sec. 4.  1.  The State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education as applicable, which sponsors a charter school may hold a public hearing concerning any request to amend [a written charter or] a charter contract of the charter school it sponsors, including, without limitation a request to amend a written charter or charter contract for the purpose of:

       (a) Expanding the charter school to offer instruction in grade levels for which the charter school does not already offer instruction.

       (b) Increasing the total enrollment of a charter school or the enrollment of pupils in a particular grade level in the charter school for a school year to more than 120 percent of the enrollment prescribed in the [written charter or] charter contract for that school year.

       (c) Reducing the total enrollment of a charter school or the enrollment of pupils in a particular grade level in the charter school for a school year to less than 80 percent of the enrollment prescribed in [the written charter or] charter contract for that school year.

       (d) Seeking to acquire an additional facility in any county of this State to expand the enrollment of the charter school.

       (e) Consolidating the operations of multiple charter schools pursuant to section 5 of this act.

       2.  A [written charter or] charter contract may not be amended in any manner described in subsection 1 unless the amendment is approved by the State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable.

       3.  The State Public Charter School Authority, the board of trustees of the school district or a college or university within the Nevada System of Higher Education, as applicable, must deny a request to amend a [written charter or] charter contract in the manner described in paragraphs (d) or (e) of subsection 1 if the State Public Charter School Authority, the board of trustees or a college or university within the Nevada System of Higher Education, as applicable, determines that:

 


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request to amend a [written charter or] charter contract in the manner described in paragraphs (d) or (e) of subsection 1 if the State Public Charter School Authority, the board of trustees or a college or university within the Nevada System of Higher Education, as applicable, determines that:

       (a) The charter school is not meeting the requirements of the performance framework concerning academics, finances or organization established pursuant to NRS 386.528; or

       (b) The governing body does not have a comprehensive and feasible plan to operate additional facilities.

      Sec. 54. Section 5 of this act is hereby amended to read as follows:

       Sec. 5.  The sponsor of a charter school may approve an amendment to [a written charter or] a charter contract to consolidate the operations of two or more charter schools if:

       1.  The sponsor of a charter school for which [a written charter has been revoked or] a charter contract has been terminated has approved a request by the governing body of the charter school requesting the amendment to negotiate with the owner, mortgagor or lienholder of the facilities in which the charter school has been operated for the purpose of operating an additional campus of the other charter school pursuant to section 6 of this act. If charter schools are consolidated under such conditions, the prior academic, operational and fiscal performance of the charter school [whose written charter has been revoked or] whose charter contract has been terminated will not be attributed to the consolidated charter school.

       2.  Two or more governing bodies submit a request for an amendment to consolidate their charter contracts, governing bodies and operations to form a single charter school operating one or more campuses under a new charter contract. If charter schools are consolidated under such conditions:

       (a) The new charter contract will be in effect for the duration of the term of the written charter or charter contract which was closest to its date of expiration before consolidation; and

       (b) The academic, operational and fiscal performances of all charter schools that have been consolidated will be attributed to the consolidated charter school.

      Sec. 55. Section 6 of this act is hereby amended to read as follows:

       Sec. 6.  1.  If the sponsor of a charter school reconstitutes the governing body of a charter school pursuant to NRS 386.535, the sponsor must appoint new members to the governing body who meet the qualifications for membership set forth in NRS 386.549. The sponsor shall not reappoint more than 40 percent of the members of the previous governing body. Before appointing new members to the governing body, the sponsor must consider:

       (a) Input from members of the community in which the charter school is located and parents of pupils who attend the charter school.

       (b) Any relevant credentials, experience or other qualifications of a potential member, including, without limitation, whether the potential member resides in the geographic area served by the charter school or has experience in education.

       2.  If the sponsor of a charter school [revokes a written charter or] terminates a charter contract pursuant to 386.535 the sponsor may:

 


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       (a) Petition the district court to appoint a receiver, to be paid from the funds of the charter school, to oversee and manage the charter school until other arrangements are made for pupils who attend the school.

       (b) Issue a request for proposals inviting the governing body of another charter school to negotiate with the owner, mortgagor or lienholder of the facilities in which the charter school operated for the purpose of operating an additional campus of the other charter school under the sponsorship of either the sponsor of the charter school [for which the written charter has been revoked or] the charter contract has been terminated or the sponsor of the charter school that intends to operate an additional campus. If the governing body proposes to operate an additional campus of the other charter school under the sponsorship of:

             (1) The sponsor of the charter school for which [the written charter has been revoked or] the charter contract has been terminated and the sponsor is not the sponsor of the charter school currently operated by the governing body, the governing body must, before the additional campus begins operating, also submit to the sponsor of the charter school [for which the written charter has been revoked or] the charter contract has been terminated and receive approval for an application to form a charter school pursuant to NRS 386.520.

             (2) The sponsor of the charter school currently operated by the governing body, the governing body must, before the additional campus begins operating, also submit a request for and receive approval of an amendment to its [written charter or] charter contract to consolidate charter schools pursuant to NRS 386.527 and sections 4 and 5 of this act.

       3.  Before selecting a governing body to operate another campus of an existing charter school to replace a charter school [whose written charter has been revoked or] whose charter contract has been terminated pursuant to subsection 2, the sponsor must consider:

       (a) The performance record of the charter school in this State and other states;

       (b) The plan of the governing body for improving pupil achievement and school performance;

       (c) The suitability of the proposed academic program for pupils who were enrolled in the charter school before [the revocation of the written charter or] the termination of the charter contract; and

       (d) Input from members of the community in which the charter school is located and parents who were enrolled in the charter school before [the revocation of the written charter or] the termination of the charter contract, including, without limitation, the input described in subsection 4.

       4.  A sponsor that solicits proposals to operate an additional campus of an existing charter school shall allow parents of pupils who were enrolled in the charter school before [the revocation of the written charter or] the termination of the charter contract to interview governing bodies who submit proposals and, if three or more proposals are submitted pursuant to paragraph (b) of subsection 2, cast an advisory vote for the governing body that they would prefer be given the opportunity to operate the campus.

 


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       5.  If a governing body is selected pursuant to this section to operate another campus of an existing charter school to replace a charter school [whose written charter has been revoked or] whose charter contract has been terminated and any necessary amendments or applications are approved, the charter school must enroll pupils who were enrolled in the charter school [whose written charter was revoked or] whose charter contract was terminated before enrolling other pupils.

      6.  If the sponsor of a charter school reconstitutes the governing body of a charter school, the principal of the charter school or another administrator of the charter school appointed by the reconstituted governing body shall:

      (a) Review each employee of the charter school to determine whether to retain the employee based on the needs of the school and the ability of the employee to improve pupil achievement and school performance at the charter school. The new governing body may terminate the employment of any teachers or other employees of the charter school.

      (b) Collaborate with the new governing body in making hiring determinations for the charter school.

       7.  If the sponsor of a charter school selects a governing body to operate another campus of an existing charter school to replace a charter school [whose written charter has been revoked or] whose charter contract has been terminated, the new governing body is not required to offer employment to any teacher or other employee of the charter school [whose written charter has been revoked or] whose charter contract has been terminated.

      Sec. 56. Section 33 of Assembly Bill No. 448 of this session is hereby amended to read as follows:

       Sec. 33.  1.  During the sixth year that a school operates as an achievement charter school, the [Executive Director] Department shall evaluate the pupil achievement and school performance of the school. The Executive Director shall provide the Department with such information and assistance as the Department determines necessary to perform such an evaluation. If, as a result of such an evaluation, the [Executive Director] Department determines:

       (a) That the achievement charter school has made adequate improvement in pupil achievement and school performance, the governing body of the achievement charter school must decide whether to:

             (1) Convert to a public school under the governance of the board of trustees of the school district in which the school is located;

             (2) Seek to continue as a charter school subject to the provisions of NRS 386.490 to 386.649, inclusive, and section 11 of this act by applying to the board of trustees of the school district in which the school is located, the State Public Charter School Authority or a college or university within the Nevada System of Higher Education to sponsor the charter school pursuant to NRS 386.525; or

             (3) Remain an achievement charter school for at least 6 more years.

       (b) That the achievement charter school has not made adequate improvement in pupil achievement and school performance, the [school must continue] Department shall direct the Executive Director to notify the parent or legal guardian of each pupil enrolled in the achievement charter school that the achievement charter school has not made adequate improvement in pupil achievement and school performance.

 


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[school must continue] Department shall direct the Executive Director to notify the parent or legal guardian of each pupil enrolled in the achievement charter school that the achievement charter school has not made adequate improvement in pupil achievement and school performance. Such notice must include, without limitation, information regarding:

             (1) Public schools which the pupil may be eligible to attend, including, without limitation, charter schools, programs of distance education offered pursuant to NRS 388.820 to 388.874, inclusive, and alternative programs for the education of pupils at risk of dropping out of school pursuant to NRS 388.537;

             (2) The opportunity for the parent to establish an education savings account pursuant to section 7 of Senate Bill No. 302 of this session and enroll the pupil in a private school, have the pupil become an opt-in child or provide for the education of the pupil in any other manner authorized by section 11 of Senate Bill No. 302 of this session;

             (3) Any other alternatives for the education of the pupil that are available in this State; and

             (4) The actions that may be considered by the Department with respect to the achievement charter school and the manner in which the parent may provide input.

       2.  Upon deciding that the achievement charter school has not made adequate improvement in pupil achievement and school performance pursuant to paragraph (b) of subsection 1, the Department must decide whether to:

       (a) Convert the achievement charter school to a public school under the governance of the board of trustees of the school district in which the school is located; or

       (b) Continue to operate the school as an achievement charter school for at least 6 more years. [The]

       3.  If the Department decides to continue to operate a school as an achievement charter school pursuant to subsection 2, the Executive Director [shall evaluate] must:

       (a) Terminate the contract with the charter management organization, educational management organization or other person that operated the achievement charter school;

       (b) Enter into a contract with a different charter management organization, educational management organization or other person to operate the achievement charter school after complying with the provisions of section 21 of this act;

       (c) Require the charter management organization, educational management organization or other person with whom the Executive Director enters into a contract to operate the achievement charter school to appoint a new governing body of the achievement charter school in the manner provided pursuant to section 21.5 of this act, and must not reappoint more than 40 percent of the members of the previous governing body; and

       (d) Evaluate the pupil achievement and school performance of such a school at least each 3 years of operation thereafter.

       [2.] 4.  If an achievement charter school is converted to a public school under the governance of the board of trustees of a school district pursuant to paragraph (a) of subsection 1, the board of trustees must employ any teacher, administrator or paraprofessional who wishes to continue employment at the school and meets the requirements of chapter 391 of NRS to teach at the school.

 


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district pursuant to paragraph (a) of subsection 1, the board of trustees must employ any teacher, administrator or paraprofessional who wishes to continue employment at the school and meets the requirements of chapter 391 of NRS to teach at the school. Any administrator or teacher employed at such a school who was employed by the board of trustees as a postprobationary employee before the school was converted to an achievement charter school and who wishes to continue employment at the school after it is converted back into a public school must be employed as a postprobationary employee.

      [3.] 5.  If an achievement charter school becomes a charter school sponsored by the school district in which the charter school is located, the State Public Charter School Authority or a college or university within the Nevada System of Higher Education pursuant to paragraph (a) of subsection 1, the school is subject to the provisions of NRS 386.490 to 386.649, inclusive, and section 11 of this act, and the continued operation of the charter school in the building in which the school has been operating is subject to the provisions of NRS 386.560.

      [4.]6.  As used in this section, “postprobationary employee” has the meaning ascribed to it in NRS 391.311.

      Sec. 57.  The provisions of NRS 288.150, as amended by section 52 of this act:

      1.  Apply to any collective bargaining agreement entered into, extended or renewed on or after the effective date of that section, and any provision of the agreement that is in conflict with that section, as amended, is void.

      2.  Do not apply to any collective bargaining agreement entered into before the effective date of that section during the current term of the agreement.

      Sec. 58.  1.  This section and sections 52 and 57 of this act become effective upon passage and approval.

      2.  Sections 1 to 15, inclusive, 17, 18, 19, 21, 22, 23, 25 to 28, inclusive, 30, 32, 34, 35, 36, 38, 39, 40, 42 to 51, inclusive, of this act become effective:

      (a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks necessary to carry out the provisions of this act; and

      (b) On January 1, 2016, for all other purposes.

      3.  Section 56 of this act becomes effective on July 1, 2016, if, and only if, Assembly Bill No. 448 of this session is enacted and becomes effective.

      4.  Sections 16, 20, 24, 29, 31, 33, 37, 41, 53, 54 and 55, inclusive, of this act become effective on January 1, 2020.

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