2023 Nevada Revised Statutes › Chapter 231 - Economic Development, Tourism and Cultural Affairs › NRS 231.3731 - Duty of lead participant in qualified project to provide records to verify eligibility for matching funds; repayment of matching funds; revocation or suspension of state business registration of lead participant; material underperformance of project; transfer of facility that ceases to operate or files for bankruptcy protection.

1. The lead participant of a qualified project shall, upon the request of the Office of Economic Development, furnish the Office with copies of all records necessary to verify that the qualified project meets or has met the eligibility requirements for state matching funds issued pursuant to NRS 231.3711 to 231.3737, inclusive.
2. The lead participant shall repay to the State Treasurer, as applicable, any portion of the matching funds to which the lead participant is not entitled if:
(a) The participants in the qualified project collectively fail to make the investment in this State necessary to support the determination by the Office that the project is a qualified project;
(b) The lead participant submits any false statement, representation or certification in any document submitted for the purpose of obtaining matching funds;
(c) The lead participant otherwise becomes ineligible for matching funds after receiving the matching funds pursuant to sections NRS 231.3711 to 231.3737, inclusive; or
(d) The lead participant ceases operation within 30 years of having received the last installment of matching funds pursuant to NRS 231.3711 to 231.3737, inclusive.
3. The Secretary of State may, upon application by the Executive Director, revoke or suspend the state business registration of the lead participant in a qualified project which is required to repay any portion of the matching funds allocated pursuant to subsection 2. If the state business registration of the lead participant in a qualified project is suspended or revoked pursuant to this subsection, the Secretary of State shall provide written notice of the action to the lead participant. The Secretary of State shall not reinstate a state business registration suspended pursuant to this subsection or issue a new state business registration to the lead participant whose state business registration has been revoked pursuant to this subsection unless the Executive Director provides proof satisfactory to the Secretary of State that the lead participant is in compliance with the requirements of this section governing repayment.
4. In the event the Executive Director determines that the project is materially underperforming based on the reports provided by the lead participant pursuant to paragraph (r) of subsection 3 of NRS 231.3725, the Executive Director may:
(a) Require that the lead participant review, revise and submit any element of the application submitted pursuant to subsection 3 of NRS 231.3725;
(b) Request operating recommendations for improvement from the technical advisory committee created pursuant to paragraph (g) of subsection 4 of NRS 231.3727;
(c) Request that the lead participant retain a subject matter expert to address the identified areas of underperformance; or
(d) Any combination of paragraphs (a), (b) and (c).
5. In the event the project ceases to operate pursuant to subsection 2 or files for bankruptcy protection under any chapter of Title 11 of United States Code after having received matching funds pursuant to NRS 231.3711 to 231.3737, inclusive, the facility, including the underlying land and any personal property necessary for the operations of the facility, shall be transferred to the incorporated city in which any part of the facility exists. If the facility does not exist in an incorporated city, it shall be transferred to the county in which the facility exists. Such transfer shall be made at no cost to the city or county, and the city or county may determine, at its sole discretion, whether to operate the facility in whole or in part or otherwise close, modify or sell the facility and any related assets.
(Added to NRS by 2023, 3129)