In a county whose population is less than 700,000:

1. Before dissolving a hospital district pursuant to NRS 450.751 to 450.760, inclusive, the board of county commissioners of the county in which the district hospital is located shall determine whether the proceeds from the taxes currently being levied in the hospital 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 hospital 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 hospital district, before dissolving the hospital district pursuant to NRS 450.751 to 450.760, inclusive:

(a) If the hospital district does not include territory within more than one county, the board of county commissioners may levy a property tax on all of the taxable property in the hospital district that is sufficient, when combined with any revenue from taxes currently being levied in the hospital district, to repay the outstanding obligations of the hospital district within a reasonable period after the dissolution of the hospital district; or

(b) If the hospital district includes territory within more than one county, the board of county commissioners of each county within which any territory of the hospital district is located may levy a property tax on all of the taxable property in the county that is within the hospital district that is sufficient, when combined with any revenue from taxes currently being levied in the hospital district, to repay the outstanding obligations of the hospital district within a reasonable period after the dissolution of the hospital district.

2. The allowed revenue from taxes ad valorem determined pursuant to NRS 354.59811 does not apply to any additional property tax levied pursuant to subsection 1. 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 subsection 1 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. A board of county commissioners shall discontinue any rate levied pursuant to subsection 1 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 pursuant to NRS 450.751 to 450.760, inclusive, 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 hospital 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 hospital district have been paid in full, but for all other purposes, the hospital district shall be considered dissolved from the date on which each board of county commissioners of each county included within the hospital district has adopted a final ordinance of dissolution pursuant to NRS 450.753 or 450.755.

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 of the county in which the district hospital was located 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 of the county in which the district hospital was located for use as a hospital or disposed of in any manner the board deems appropriate.

6. 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 of the county in which the district hospital was located to repay any indebtedness of the hospital district.

(Added to NRS by 1999, 86; A 2005, 1448; 2011, 1267)