1. Not more than once every 3 years, a local government may, upon reasonable written notice, review and audit the business records of a video service provider to the extent necessary to ensure payment of a franchise fee pursuant to this chapter. If the results of such a review and audit identify an underpayment of the franchise fee in an amount that requires corrective action, the local government may perform a subsequent compliance review and audit to determine whether the video service provider has corrected the underpayment of the franchise fee. The compliance review and audit must be performed not later than 12 months after the date on which the results of the initial review and audit are submitted to the local government.
2. The local government and the video service provider shall each pay its own costs and fees relating to each review and audit performed pursuant to subsection 1, except that if the video service provider elects to have the local government review and audit the requested business records of the video service provider at a location outside the territorial boundaries of the local government, the video service provider shall pay the per diem allowances and travel expenses incurred by the local government to perform the review and audit at that location.
3. A person who performs a review and audit pursuant to subsection 1 may not receive compensation that is based, in whole or in part, on:
(a) Finding a particular result; or
(b) The amount of any underpayment of the franchise fee that is identified as a result of the review and audit.
4. Any action to recover a disputed underpayment of a franchise fee from a video service provider must be commenced and prosecuted by the Attorney General on behalf of the affected local governments.
5. A video service provider may bring an action against a local government to recover a disputed overpayment of a franchise fee to the local government.
6. Any action to recover a disputed underpayment or overpayment of a franchise fee must be commenced in a district court not later than 4 years after the last day of the tax year to which the disputed underpayment or overpayment relates.
7. Each party shall pay its own costs and attorney’s fees in commencing and prosecuting any action involving a disputed underpayment or overpayment of a franchise fee.
(Added to NRS by 2007, 1364)