1. Subject to the provisions of subsection 3, a municipality constructing, leasing, operating or maintaining any public utility, or a trust created for the benefit and furtherance of any public function pursuant to the provisions of general or special law, is not required to obtain a certificate of public convenience, but any trust so created which undertakes the operation of a public utility shall first submit a certified copy of the trust documents or prepared trust documents to the Commission together with a detailed explanation of the purposes, scope, area to be affected and such other pertinent information necessary to assist the Commission in making a determination as to whether the service presently being offered by any existing public utility would be unreasonably impaired by the approval of such trust documents.
2. The Commission shall, after investigation and hearing on any contemplated trust coming within the provisions of subsection 1, submit a report of its findings and reasons therefor to the State and each political subdivision within which such trust contemplates operation. Such trust does not become effective unless and until written approval has been given by the Commission.
3. If a municipality assumes operation and control of a package plant for sewage treatment pursuant to the provisions of NRS 445A.555 or subsection 2 or 3 of NRS 268.4105, the plant is exempt from the jurisdiction of the Commission only for the period of time the municipality continues the maintenance and operation of the plant. The certificate of public convenience as it applies to that plant is suspended for that period of time.