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- 83rd Session (2025)
Assembly Bill No. 444–Assemblymember Hafen
Joint Sponsor: Senator Neal
CHAPTER..........
AN ACT relating to governmental administration; revising
provisions relating to the adoption of regulations by certain
agencies of the Executive Department of the State
Government; revising provisions relating to the adoption by a
governing body of a local government of certain ordinances
or the taking of certain actions relating to fees paid by
businesses; revising provisions relating to impact fees; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
The Nevada Administrative Procedure Act establishes procedural requirements
for the adoption of administrative regulations by agencies, officers and employees
of the Executive Department of the State Government, with certain exceptions.
(NRS 233B. 010-233B.120) Under the Act, such state agencies, officers and
employees are required to take certain actions to determine the impact of a
proposed regulation on for -profit businesses that employ less than 150 employees
before adopting a regulation that is likely to impose a direct and significant
economic burden upon such a small business or that directly restricts the formation,
operation or expansion of such a small business. (NRS 233B.0382, 233B.0608) The
Act further requires that after such actions are taken, the state agency, officer or
employee is required to prepare a small business impact statement and prescribes
the information required to be included in the statement. (NRS 233B.0608,
233B.0609) The Act also requires that an agency, before holding an initial public
hearing on a proposed regulation, conduct at least one workshop to solicit
comments from interested persons on one or more general topics to be addressed in
the regulation. (NRS 233B.061) Existing law also establishes procedural
requirements for the adoption by a local government of a rule, which is defined in
existing law to mean an ordinance and, with certain exceptions, an action taken that
imposes, increases or changes the basis for the calculation of a fee that is paid by a
for-profit business. (NRS 237.030-237.150) One of the procedural prerequisites for
the adoption by a local government of such a rule that is likely to impose a direct
and significant economic burden upon a business or directly restricts the formation,
operation or e xpansion of a business is the notification of chambers of commerce
and trade associations of the proposed rule. (NRS 237.080) Existing law requires
inclusion in the business impact statement prepared by the local government
regarding such a proposed rule: (1) the number of businesses likely to be affected
by the proposed rule; and (2) a list of the chambers of commerce and trade
associations notified of the proposed rule. (NRS 237.090) Section 1 of this bill
imposes the same prerequisite of notifying chambe rs of commerce and trade
associations on a state agency, officer or employee subject to the Nevada
Administrative Procedure Act, in determining the impact of a proposed regulation
on small businesses, insofar as is practicable. Section 2 of this bill simil arly
requires the state agency, officer or employee to include in the small business
impact statement for the proposed regulation the total number of small businesses
likely to be affected by the proposed regulation and a list of any chambers of
commerce and trade associations notified pursuant to section 1. Section 2.5 of this
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bill requires an agency to notify by electronic mail chambers of commerce, trade
associations or owners and officers of businesses which are likely be affected by a
proposed regulation of the time and place set for a workshop to solicit comments
from interested persons on one or more general topics to be addressed in the
regulation. Section 2.5 also requires an agency to maintain an electronic mailing
list of local chambers of commerce, trade associations and owners and officers of
businesses and to update the list not later than January 31 of each year.
Under existing law, a local government is not required to comply with the
procedural requirements for adopting a rule if the local government is taking action
that imposes, increases or changes the basis for the calculation of an impact fee or
sales and use taxes. (NRS 237.060) Section 3 of this bill eliminates these
exemptions, thereby requiring a local government to comply with those procedural
requirements with respect to a proposed rule that imp oses, increases or changes the
basis for the calculation of an impact fee or sales and use taxes.
Existing law further provides that any action of a local government to adopt a
proposed rule in violation of the requirements for adopting such a rule is vo id.
(NRS 237.140) Section 4 of this bill clarifies that any such action is also
unenforceable.
Existing law authorizes local governments to impose by ordinance impact fees
to pay the cost of constructing a capital improvement or facility expansions
necessitated or attributable to certain new development. (NRS 278B.160) Under
existing law, a local government that wishes to impose an impact fee is required to
set a public hearing to consider the land use assumptions and to provide certain
notice of such a pu blic hearing. (NRS 278B.180) Section 5 of this bill requires
copies of such notice be provided, insofar as is practicable, to chambers of
commerce and trade associations whose members are owners or officers of
businesses that are likely to be affected by the proposed impact fee.
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 233B.0608 is hereby amended to read as
follows:
233B.0608 1. Before conducting a workshop for a proposed
regulation pursuant to NRS 233B.061, an agency shall make a
concerted effort to determine whether the proposed regulation is
likely to:
(a) Impose a direct and significant economic burden upon a
small business; or
(b) Directly restrict the formation, operation or expansion of a
small business.
2. If an agency determines pursuant to subsection 1 that a
proposed regulation is likely to impose a direct and significant
economic burden upon a small business or directly restrict the
formation, operation or expansion of a small business , the agency
shall:
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(a) Insofar as practicable, consult with owners and officers of
small businesses that are likely to be affected by the proposed
regulation.
(b) Insofar as practicable, notify chambers of commerce and
trade associations whose members a re owners or officers of small
businesses that are likely to be affected by the proposed regulation.
(c) Conduct or cause to be conducted an analysis of the likely
impact of the proposed regulation on small businesses. Insofar as
practicable, the analysis must be conducted by the employee of the
agency who is most knowledgeable about the subject of the
proposed regulation and its likely impact on small businesses or by
a consultant or other independent contractor who has such
knowledge and is retained by the agency.
[(c)] (d) Consider methods to reduce the impact of the proposed
regulation on small businesses, including, without limitation:
(1) Simplifying the proposed regulation;
(2) Establishing different standards of compliance for a small
business; and
(3) Modifying a fee or fine set forth in the regulation so that
a small business is authorized to pay a lower fee or fine.
[(d)] (e) Prepare a small business impact statement and make
copies of the statement available to the public not less than 15 days
before the workshop conducted and the public hearing held pursuant
to NRS 233B.061. A copy of the statement must accompany the
notice required by subsection 2 of NRS 233B.061 and the agenda
for the public hearing held pursuant to that section.
3. The agency shall p repare a statement identifying the
methods used by the agency in determining the impact of a proposed
regulation on a small business and the reasons for the conclusions of
the agency. The director, executive head or other person who is
responsible for the agency shall sign the statement certifying that, to
the best of his or her knowledge or belief, a concerted effort was
made to determine the impact of the proposed regulation on small
businesses and that the information contained in the st atement is
accurate.
4. Each adopted regulation which is submitted to the
Legislative Counsel pursuant to NRS 233B.067 must be
accompanied by a copy of the small business impact statement and
the statement made pursuant to subsection 3. If the agency rev ises a
regulation after preparing the small business impact statement and
the statement made pursuant to subsection 3, the agency must
include an explanation of the revision and the effect of the change
on small businesses.
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Sec. 2. NRS 233B.0609 is hereby amended to read as follows:
233B.0609 1. A small business impact statement prepared
pursuant to NRS 233B.0608 must set forth the following
information:
(a) A description of the manner in which comment was solicited
from affected small businesses, a summary of their response and an
explanation of the manner in which other interested persons may
obtain a copy of the summary.
(b) The total number of small businesses likely to be affected
by the proposed regulation.
(c) A list of the chambers of commerce and trade associations
notified of the proposed regulation pursuant to paragraph (b) of
subsection 2 of NRS 233B.0608.
(d) The manner in which the analysis required pursuant to
paragraph (c) of subsection 2 of NRS 233B.0608 was conducted.
[(c)] (e) The estimated economic effect of the proposed
regulation on the small businesses which it is to regulate, including,
without limitation:
(1) Both adverse and beneficial effects; and
(2) Both direct and indirect effects.
[(d)] (f) A description of the methods that the agency
considered to reduce the impact of the proposed regulation on small
businesses and a statement regarding whether the agency actually
used any of those methods.
[(e)] (g) The estimated cost t o the agency for enforcement of
the proposed regulation.
[(f)] (h) If the proposed regulation provides a new fee or
increases an existing fee, the total annual amount the agency expects
to collect and the manner in which the money will be used.
[(g)] (i) If the proposed regulation includes provisions which
duplicate or are more stringent than federal, state or local standards
regulating the same activity, an explanation of why such duplicative
or more stringent provisions are necessary.
[(h)] (j) The reasons for the conclusions of the agency regarding
the impact of a regulation on small businesses.
2. The director, executive head or other person who is
responsible for the agency shall sign the small business impact
statement certifying that, to the best of his or her knowledge or
belief, the information contained in the statement was prepared
properly and is accurate.
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Sec. 2.5. NRS 233B.061 is hereby amended to read as follows:
233B.061 1. All interested persons must be afforded a
reasonable opportunity to submit data, views or arguments upon a
proposed regulation, orally or in writing.
2. Before holding the public hearing required pursuant to
subsection 3, an agency shall conduct at least one workshop to
solicit co mments from interested persons on one or more general
topics to be addressed in a proposed regulation, except that a
workshop is not required if it is the second or subsequent hearing on
the regulation. Not less than 15 days before the workshop, the
agency shall provide notice of the time and place set for the
workshop:
(a) In writing to each person who has requested to be placed on
a mailing list; [and]
(b) By electronic mail to chambers of commerce, trade
associations or owners and officers of businesse s which are likely
to be affected by the proposed regulation; and
(c) In any other manner reasonably calculated to provide such
notice to the general public and any business that may be affected
by a proposed regulation which addresses the general topics to be
considered at the workshop.
3. With respect to substantive regulations, the agency shall set
a time and place for an oral public hearing, but if no one appears
who will be directly affected by the proposed regulation and
requests an oral hearing, the agency may proceed immediately to act
upon any written submissions. The agency shall consider fully all
written and oral submissions respecting the proposed regulation.
4. An agency shall not hold the public hearing required
pursuant to subsection 3 o n the same day that the agency holds the
workshop required pursuant to subsection 2.
5. Each workshop and public hearing required pursuant to
subsections 2 and 3 must be conducted in accordance with the
provisions of chapter 241 of NRS.
6. The agency shall maintain an electronic mailing list of
chambers of commerce, trade associations and owners and
officers of businesses. The electronic mailing list must be updated
on or before January 31 of each year. The agency must provide
notification pursuant to this section to each chamber of commerce
and trade association by electronic mail regardless of whether the
chamber of commerce or trade association has requested that it be
placed on the electronic mailing list. Nothing in this section
prohibits the agency from also providing notification pursuant to
this section by mail.
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Sec. 3. NRS 237.060 is hereby amended to read as follows:
237.060 1. “Rule” means:
(a) An ordinance by the adoption of which the govern ing body
of a local government exercises legislative powers; and
(b) An action taken by the governing body of a local
government that imposes, increases or changes the basis for the
calculation of a fee that is paid in whole or in substantial part by
businesses [.] , including, without limitation, an impact fee.
2. “Rule” does not include:
(a) An action taken by the governing body of a local
government that imposes, increases or changes the basis for the
calculation of:
(1) Special assessments imposed pursuant to chapter 271 of
NRS;
(2) [Impact fees imposed pursuant to chapter 278B of NRS;
(3)] Fees for remediation imposed pursuant to chapter 540A
of NRS;
[(4)] (3) Taxes ad valorem; or
[(5) Sales and use taxes; or
(6)] (4) A fee that has been negotiated pursuant to a contract
between a business and a local government.
(b) An action taken by the governing body of a local
government that approves, amends or augments the annual budget
of the local government.
(c) An ordinance adopted by the governing body of a local
government pursuant to a provision of chapter 271, 271A, 278,
278A, 278B or 350 of NRS.
(d) An ordinance adopted by or action taken by the governing
body of a local government that authorizes or relates to the issuance
of bonds or other evidence of debt of the local government.
Sec. 4. NRS 237.140 is hereby amended to read as follows:
237.140 Any action of the governing body of a local
government to adopt a proposed rule in violation of the provi sions
of NRS 237.030 to 237.150, inclusive, is void [,] and
unenforceable, including, without limitation, if the governing body
does not comply with the provisions of subsection 3 of
NRS 237.100.
Sec. 5. NRS 278B.180 is hereby amended to read as follows:
278B.180 1. A local government which wishes to impose an
impact fee must set a time at least 20 days thereafter and place for a
public hearing to consider the land use assumptions within the
designated service area whi ch will be used to develop the capital
improvements plan.
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2. The notice must be given:
(a) By publication of a copy of the notice at least once a week
for 2 weeks in a newspaper of general circulation in the jurisdiction
of the local government.
(b) By posting a copy of the notice at the principal office of the
local government and at least three other separate, prominent places
within the jurisdiction of the local government.
(c) Insofar as practicable, by providing copies of the notice to
chambers of commerce and trade associations whose members are
owners and officers of businesses that are likely to be affected by
the proposed impact fee.
3. Proof of publication must be by affidavit of the publisher.
4. Proof of posting must be by affidavit of t he clerk or any
deputy posting the notice.
5. The notice must contain:
(a) The time, date and location of the hearing;
(b) A statement that the purpose of the hearing is to consider the
land use assumptions which will be used to develop a capital
improvements plan for which an impact fee may be imposed;
(c) A map of the service area to which the land assumptions
apply; and
(d) A statement that any person may appear at the hearing and
present evidence for or against the land use assumptions.
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