Dissolution of district in county whose population is less than 400,000. In a county whose population is less than 400,000:
1. If, after a hearing, the board of county commissioners determines that the dissolution of a hospital district is necessary, the board shall by resolution provide for the dissolution of the hospital district. On and after the filing of the resolution with the county recorder, the hospital district shall be deemed dissolved.
2. Before dissolving a hospital district pursuant to subsection 1, the board of county commissioners shall determine whether the proceeds from the taxes currently being levied in the district, if any, for the operation of the hospital and the repayment of debt are sufficient to repay any outstanding obligations of the hospital district within a reasonable period after the dissolution of the district. If there are no taxes currently being levied for the hospital district or the taxes being levied are not sufficient to repay the outstanding obligations of the hospital district within a reasonable period after the dissolution of the district, before dissolving the district pursuant to subsection 1 the board of county commissioners may levy a property tax on all of the taxable property in the district that is sufficient, when combined with any revenue from taxes currently being levied in the district, to repay the outstanding obligations of the hospital district within a reasonable period after the dissolution of the district. The allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811 does not apply to any additional property tax levied pursuant to this subsection. If the hospital district is being managed by the Department of Taxation pursuant to NRS 354.685 to 354.725, inclusive, at the time of dissolution, the rate levied pursuant to this subsection must not be included in the total ad valorem tax levy for the purposes of the application of the limitation in NRS 361.453, but the rate levied when combined with all other overlapping rates levied in the State must not exceed $4.50 on each $100 of assessed valuation. The board of county commissioners shall discontinue any rate levied pursuant to this subsection on a date that will ensure that no taxes are collected for this purpose after the outstanding obligations of the hospital district have been paid in full.
3. If, at the time of the dissolution of the hospital district, there are any outstanding loans, bonded indebtedness or other obligations of the hospital district, including, without limitation, unpaid obligations to organizations such as the Public Employees’ Retirement System, unpaid salaries or unpaid loans made to the hospital district by the county, the taxes being levied in the district at the time of dissolution must continue to be levied and collected in the same manner as if the hospital district had not been dissolved until all outstanding obligations of the district have been paid in full, but for all other purposes the hospital district shall be deemed dissolved from the time the resolution is filed pursuant to subsection 1.
4. If the hospital district is being managed by the Department of Taxation pursuant to NRS 354.685 to 354.725, inclusive, at the time of dissolution, the management ceases upon dissolution, but the board of county commissioners shall continue to make such financial reports to the Department of Taxation as the Department deems necessary until all outstanding obligations of the hospital district have been paid in full.
5. The property of the dissolved hospital district may be retained by the board of county commissioners for use as a hospital or disposed of in any manner the board deems appropriate. Any proceeds of the sale or other transfer of the property of the dissolved hospital district and any proceeds from taxes which had been levied and received by the hospital district before dissolution, whether levied for operating purposes or for the repayment of debt, must be used by the board of county commissioners to repay any indebtedness of the hospital district.
Last modified: February 26, 2006