Assembly Bill No. 13–Committee of the Whole
CHAPTER..........
AN ACT relating to governmental financial administration; revising provisions relating to the securities in which local governments may invest; providing for expanded oversight by the State Treasurer concerning the collateral that must be maintained by financial institutions to secure certain deposits of public money made by state and local governmental entities; making various other changes concerning the duties of the State Treasurer; revising the limitation on the total amount of revenue that may be paid to a redevelopment agency in certain smaller municipalities; providing civil penalties; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 355.170 is hereby amended to read as follows:
355.170 1. Except as otherwise provided in this section, NRS
354.750 and 355.171, [a board of county commissioners, a board of
trustees of a county school district or] the governing body of [an
incorporated city] a local government may purchase for investment
the following securities and no others:
(a) Bonds and debentures of the United States, the maturity
dates of which do not extend more than 10 years after the date of
purchase.
(b) Farm loan bonds, consolidated farm loan bonds, debentures,
consolidated debentures and other obligations issued by federal
land banks and federal intermediate credit banks under the authority
of the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012,
inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act
of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds,
debentures, consolidated debentures and other obligations issued by
banks for cooperatives under the authority of the Farm Credit Act
of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the
Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.
(c) Bills and notes of the United States Treasury, the maturity
date of which is not more than 10 years after the date of purchase.
(d) Obligations of an agency or instrumentality of the United
States of America or a corporation sponsored by the government,
the maturity date of which is not more than 10 years after the date
of purchase.
(e) Negotiable certificates of deposit issued by commercial
banks, insured credit unions or savings and loan associations.
(f) Securities which have been expressly authorized as
investments for local governments [or agencies, as defined in NRS
354.474,] by any provision of Nevada Revised Statutes or by any
special law.
(g) Nonnegotiable certificates of deposit issued by insured
commercial banks, insured credit unions or insured savings and
loan associations, except certificates that are not within the limits of
insurance provided by an instrumentality of the United States,
unless those certificates are collateralized in the same manner as is
required for uninsured deposits by a county treasurer pursuant to
NRS 356.133. For the purposes of this paragraph, any reference in
NRS 356.133 to a “county treasurer” or “board of county
commissioners” shall be deemed to refer to the appropriate
financial officer or governing body of the [county, school district or
city] local government purchasing the certificates.
(h) Subject to the limitations contained in NRS 355.177,
negotiable notes or medium-term obligations issued by local
governments of the State of Nevada pursuant to NRS 350.087 to
350.095, inclusive.
(i) Bankers’ acceptances of the kind and maturities made
eligible by law for rediscount with Federal Reserve Banks, and
generally accepted by banks or trust companies which are members
of the Federal Reserve System. Eligible bankers’ acceptances may
not exceed 180 days’ maturity. Purchases of bankers’ acceptances
may not exceed 20 percent of the money available to a local
government for investment as determined on the date of purchase.
(j) Obligations of state and local governments if:
(1) The interest on the obligation is exempt from gross
income for federal income tax purposes; and
(2) The obligation has been rated “A” or higher by one or
more nationally recognized bond credit rating agencies.
(k) Commercial paper issued by a corporation organized and
operating in the United States or by a depository institution licensed
by the United States or any state and operating in the United States
that:
(1) Is purchased from a registered broker-dealer;
(2) At the time of purchase has a remaining term to maturity
of no more than 270 days; and
(3) Is rated by a nationally recognized rating service as “A
-1,” “P-1” or its equivalent, or better,
except that investments pursuant to this paragraph may not, in
aggregate value, exceed 20 percent of the total portfolio as
determined on the date of purchase, and if the rating of an
obligation is reduced to a level that does not meet the requirements
of this paragraph, it must be sold as soon as possible.
(l) Money market mutual funds which:
(1) Are registered with the Securities and Exchange
Commission;
(2) Are rated by a nationally recognized rating service as
“AAA” or its equivalent; and
(3) Invest only in:
(I) Securities issued by the Federal Government or
agencies of the Federal Government;
(II) Master notes, bank notes or other short-term
commercial paper rated by a nationally recognized rating service as
“A-1,” “P-1” or its equivalent, or better, issued by a corporation
organized and operating in the United States or by a depository
institution licensed by the United States or any state and operating
in the United States; or
(III) Repurchase agreements that are fully collateralized
by the obligations described in sub-subparagraphs (I) and (II).
(m) Obligations of the Federal Agricultural Mortgage
Corporation.
2. Repurchase agreements are proper and lawful investments of
money of a [board of county commissioners, a board of trustees of
a county school district or a] governing body of [an incorporated
city] a local government for the purchase or sale of securities
which are negotiable and of the types listed in subsection 1 if made
in accordance with the following conditions:
(a) The [board of county commissioners, the board of trustees of
the school district or the] governing body of the [city] local
government shall designate in advance and thereafter maintain a
list of qualified counterparties which:
(1) Regularly provide audited and, if available, unaudited
financial statements;
(2) The [board of county commissioners, the board of
trustees of the school district or the] governing body of the [city]
local government has determined to have adequate capitalization
and earnings and appropriate assets to be highly creditworthy; and
(3) Have executed a written master repurchase agreement in
a form satisfactory to the [board of county commissioners, the
board of trustees of the school district or the] governing body of the
[city] local government pursuant to which all repurchase
agreements are entered into. The master repurchase agreement must
require the prompt delivery to the [board of county commissioners,
the board of trustees of the school district or the] governing body of
the [city] local government and the appointed custodian of written
confirmations of all transactions conducted thereunder, and must be
developed giving consideration to the Federal Bankruptcy Act.
(b) In all repurchase agreements:
(1) At or before the time money to pay the purchase price is
transferred, title to the purchased securities must be recorded in the
name of the appointed custodian, or the purchased securities must be
delivered with all appropriate, executed transfer instruments by
physical delivery to the custodian;
(2) The [board of county commissioners, the board of
trustees of the school district or the] governing body of the [city]
local government must enter a written contract with the custodian
appointed pursuant to subparagraph (1) which requires the
custodian to:
(I) Disburse cash for repurchase agreements only upon
receipt of the underlying securities;
(II) Notify the [board of county commissioners, the board
of trustees of the school district or the] governing body of the [city]
local government when the securities are marked to the market if
the required margin on the agreement is not maintained;
(III) Hold the securities separate from the assets of the
custodian; and
(IV) Report periodically to the [board of county
commissioners, the board of trustees of the school district or the]
governing body of the [city] local government concerning the
market value of the securities;
(3) The market value of the purchased securities must exceed
102 percent of the repurchase price to be paid by the counterparty
and the value of the purchased securities must be marked to the
market weekly;
(4) The date on which the securities are to be repurchased
must not be more than 90 days after the date of purchase; and
(5) The purchased securities must not have a term to maturity
at the time of purchase in excess of 10 years.
3. The securities described in paragraphs (a), (b) and (c) of
subsection 1 and the repurchase agreements described in subsection
2 may be purchased when, in the opinion of the [board of county
commissioners, the board of trustees of a county school district or
the] governing body of the [city,] local government, there is
sufficient money in any fund of the [county, the school district or
city] local government to purchase those securities and the
purchase will not result in the impairment of the fund for the
purposes for which it was created.
4. When the [board of county commissioners, the board of
trustees of a county school district or the] governing body of the
[city] local government has determined that there is available
money in any fund or funds for the purchase of bonds as set out in
subsection 1 or 2, those purchases may be made and the bonds paid
for out of any one or more of the funds, but the bonds must be
credited to the funds in the amounts purchased, and the money
received from the redemption of the bonds, as and when redeemed,
must go back into the fund or funds from which the purchase money
was taken originally.
5. Any interest earned on money invested pursuant to
subsection 3, may, at the discretion of the [board of county
commissioners, the board of trustees of a county school district or
the] governing body of the [city,] local government, be credited to
the fund from which the principal was taken or to the general fund
of the [county, school district or incorporated city.] local
government.
6. The [board of county commissioners, the board of trustees of
a county school district or the] governing body of [an incorporated
city] a local government may invest any money apportioned into
funds and not invested pursuant to subsection 3 and any money not
apportioned into funds in bills and notes of the United States
Treasury, the maturity date of which is not more than 1 year after
the date of investment. These investments must be considered as
cash for accounting purposes, and all the interest earned on them
must be credited to the general fund of the [county, school district
or incorporated city.] local government.
7. This section does not authorize the investment of money
administered pursuant to a contract, debenture agreement or grant
in a manner not authorized by the terms of the contract, agreement
or grant.
8. As used in this section:
(a) “Counterparty” means a bank organized and operating or
licensed to operate in the United States pursuant to federal or state
law or a securities dealer which is:
(1) A registered broker-dealer;
(2) Designated by the Federal Reserve Bank of New York as
a “primary” dealer in United States government securities; and
(3) In full compliance with all applicable capital
requirements.
(b) “Local government” has the meaning ascribed to it in
NRS 354.474.
(c) “Repurchase agreement” means a purchase of securities by
[a board of county commissioners, the board of trustees of a county
school district or] the governing body of [an incorporated city] a
local government from a counterparty which commits to
repurchase those securities or securities of the same issuer,
description, issue date and maturity on or before a specified date for
a specified price.
Sec. 2. NRS 355.175 is hereby amended to read as follows:
355.175 1. The governing body of any local government or
agency, whether or not it is included in the provisions of chapter
354 of NRS, may:
(a) Direct its treasurer or other appropriate officer to invest its
money or any part thereof in any investment which is lawful for a
[county, a school district or incorporated city] local government
pursuant to NRS 355.170; or
(b) Allow a county treasurer to make such investments through a
pool as provided in NRS 355.168.
2. In case of conflict, any order made pursuant to paragraph (a)
of subsection 1 takes precedence over any other order concerning
the same money or funds pursuant to subsection 5 of NRS 355.170.
3. Any interest earned from investments made pursuant to this
section must be credited, at the discretion of the local governing
unit, to any fund under its control, but the designation of the fund
must be made at the time of investment of the principal.
Sec. 3. Chapter 356 of NRS is hereby amended by adding
thereto the provisions set forth as sections 4 to 13, inclusive, of this
act.
Sec. 4. As used in sections 4 to 13, inclusive, of this act,
unless the context otherwise requires, the words and terms
defined in sections 5 to 8, inclusive, of this act have the meanings
ascribed to them in those sections.
Sec. 5. “Depository” means an insured state or national
bank, insured savings and loan association, or insured credit
union in this state in which public money is held on deposit. The
term does not include a third-party depository.
Sec. 6. “Local government” has the meaning ascribed to it in
NRS 354.474.
Sec. 7. “Public money” means money deposited with a
depository by the State or a local government.
Sec. 8. “Third-party depository” means a trust company or
trust department of a state, national or federal reserve district
bank which is authorized to hold securities on behalf of a
depository for the benefit of the State Treasurer.
Sec. 9. The State Treasurer shall establish a program for the
monitoring of collateral maintained by depositories.
Sec. 10. 1. The program established pursuant to section 9
of this act must provide that:
(a) Each depository is required to maintain as collateral
acceptable securities having a fair market value that is at least
102 percent of the amount of the uninsured balances of the public
money held by the depository;
(b) A depository may satisfy the requirement set forth in
paragraph (a) by arranging for a third-party depository to hold
securities on behalf of the depository for the benefit of the State
Treasurer;
(c) No depository may, at any one time, hold public money in
an amount exceeding the total equity of the depository, as
reflected on the financial statement of the depository;
(d) Each depository is required to submit to the State
Treasurer, in the form and manner prescribed by the State
Treasurer, the following reports:
(1) A daily report of the total amount of public money held
by the depository;
(2) A weekly summary report of the total fair market value
of securities held by a third-party depository on behalf of the
depository;
(3) A monthly report setting forth a list of acceptable
securities, including, without limitation, the fair market value of
those securities, held by the depository or held by any third-party
depository on behalf of the depository; and
(4) A current annual report containing the financial
statement of the depository; and
(e) The State Treasurer may impose an administrative fine not
to exceed:
(1) One hundred dollars per day against a depository that
fails to submit in a timely manner a report described in paragraph
(d); and
(2) Two hundred fifty dollars per day against a depository
that fails to maintain collateral as described in paragraph (a).
2. As used in this section, “acceptable securities” means the
securities described in:
(a) Subsection 1 of NRS 356.020; and
(b) Subsection 1 of NRS 356.133.
Sec. 11. 1. Once each fiscal year the State Treasurer shall
levy a pro rata assessment against each depository that held
public money at any time during the immediately preceding fiscal
year.
2. The amount of the assessment levied pursuant to
subsection 1 must be based on the average weekly deposits of
public money held by a depository.
3. The State Treasurer shall provide to each depository a
notice setting forth:
(a) The amount of the assessment levied against the depository
pursuant to subsection 1; and
(b) The provisions of section 12 of this act.
Sec. 12. 1. A depository shall, within 45 days after the date
on which the depository received the notice provided pursuant to
subsection 3 of section 11 of this act, remit to the State Treasurer
the amount of the assessment levied against the depository.
2. The State Treasurer may impose an administrative fine not
exceeding $500 per day against a depository that fails to comply
with the provisions of subsection 1.
Sec. 13. The State Treasurer shall adopt such regulations as
he determines are necessary to carry out the provisions of sections
4 to 13, inclusive, of this act.
Sec. 14. NRS 356.020 is hereby amended to read as follows:
356.020 1. All money deposited by the State Treasurer which
is not within the limits of insurance provided by an instrumentality
of the United States must be secured by collateral composed of the
following types of securities:
(a) United States treasury notes, bills, bonds or obligations as to
which the full faith and credit of the United States are pledged for
the payment of principal and interest, including the guaranteed
portions of Small Business Administration loans if the full faith and
credit of the United States is pledged for the payment of the
principal and interest;
(b) Bonds of this state;
(c) Bonds of any county, municipality or school district within
this state;
(d) Promissory notes secured by first mortgages or first deeds of
trust which meet the requirements of NRS 356.025;
(e) Mortgage-backed pass-through securities guaranteed by the
Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation or the Government National Mortgage
Association;
(f) Collateralized mortgage obligations or real estate mortgage
investment conduits that are rated “AAA,” “Aaa” or its equivalent
by a nationally recognized rating service; [or]
(g) Instruments in which the State is permitted by NRS 355.140
to invest[.] ; or
(h) Irrevocable letters of credit from any Federal Home Loan
Bank with the State Treasurer named as the beneficiary.
2. Collateral deposited by the depository bank, credit union or
savings and loan association must be pledged with the State
Treasurer or with any Federal Home Loan Bank, any bank or any
insured credit union or savings and loan association, other than the
depository bank, credit union or savings and loan association,
which will accept the securities in trust for the purposes of this
section.
3. The fair market value of the deposit of securities as
collateral by each depository bank, credit union or savings and loan
association must be at least the amount [of the State Treasurer’s
deposit with the depository bank, credit union or association.]
required pursuant to sections 4 to 13, inclusive, of this act. The
fair market value of any collateral consisting of promissory notes
with first mortgages or first deeds of trust shall be deemed to be 75
percent of the unpaid principal of the notes.
4. All securities to be used as such collateral are subject to
review by the State Treasurer . [and the State Board of Finance.]
The depository bank, credit union or savings and loan association
shall submit [monthly] reports to the State Treasurer [showing the
securities which constitute the collateral and their fair market value.]
as required pursuant to sections 4 to 13, inclusive, of this act.
5. The State Treasurer [or the State Board of Finance] may,
from time to time, require the deposit of additional securities as
collateral if, in their judgment, the additional securities are
necessary to secure the State Treasurer’s deposit.
Sec. 15. NRS 356.133 is hereby amended to read as follows:
356.133 1. All money deposited by a county treasurer that is
not within the limits of insurance provided by an instrumentality of
the United States must be secured by collateral composed of the
following types of securities:
(a) United States treasury notes, bills, bonds or obligations as to
which the full faith and credit of the United States are pledged for
the payment of principal and interest, including the guaranteed
portions of Small Business Administration loans if the full faith and
credit of the United States is pledged for the payment of the
principal and interest;
(b) Bonds of this state;
(c) Bonds of a county, municipality or school district within this
state;
(d) Mortgage-backed pass-through securities guaranteed by the
Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation or the Government National Mortgage
Association; [or]
(e) Instruments in which the county is authorized by NRS
355.170 to invest[.] ; or
(f) Irrevocable letters of credit from any Federal Home Loan
Bank with the State Treasurer named as the beneficiary.
2. Collateral deposited by the depository bank, credit union or
savings and loan association must be pledged with the county
treasurer or with a Federal Home Loan Bank, or any insured bank,
insured credit union or insured savings and loan association, other
than the depository bank, credit union or savings and loan
association, which will accept the securities in trust for the purposes
of this section.
3. The fair market value of the deposit of securities as
collateral by each depository bank, credit union or savings and loan
association must be at least [102 percent of] the amount [of the
county treasurer’s deposit with the depository bank, credit union or
association.] required pursuant to sections 4 to 13, inclusive, of
this act.
4. All securities to be used as such collateral are subject to
review by the county treasurer and the board of county
commissioners. The depository bank, credit union or savings and
loan association shall submit [monthly]reports to the [county
treasurer showing the securities which constitute the collateral and
their fair market value.]State Treasurer as required pursuant to
sections 4 to 13, inclusive, of this act. The State Treasurer will
provide periodic reports to the county treasurer showing the
securities which constitute the collateral and their fair market
value.
5. The county treasurer or the board of county commissioners
may, from time to time, require the deposit of additional securities
as collateral if, in their judgment, the additional securities are
necessary to secure the county treasurer’s deposit.
Sec. 15.5. NRS 279.676 is hereby amended to read as follows:
279.676 1. Any redevelopment plan may contain a provision
that taxes, if any, levied upon taxable property in the redevelopment
area each year by or for the benefit of the State, any city, county,
district or other public corporation, after the effective date of the
ordinance approving the redevelopment plan, must be divided as
follows:
(a) That portion of the taxes which would be produced by the
rate upon which the tax is levied each year by or for each of
the taxing agencies upon the total sum of the assessed value of the
taxable property in the redevelopment area as shown upon the
assessment roll used in connection with the taxation of the property
by the taxing agency, last equalized before the effective date of the
ordinance, must be allocated to and when collected must be paid
into the funds of the respective taxing agencies as taxes by or for
such taxing agencies on all other property are paid. To allocate
taxes levied by or for any taxing agency or agencies which did not
include the territory in a redevelopment area on the effective date of
the ordinance but to which the territory has been annexed or
otherwise included after the effective date, the assessment roll of
the county last equalized on the effective date of the ordinance must
be used in determining the assessed valuation of the taxable
property in the redevelopment area on the effective date. If property
which was shown on the assessment roll used to determine the
amount of taxes allocated to the taxing agencies is transferred to the
State and becomes exempt from taxation, the assessed valuation of
the exempt property as shown on that assessment roll must be
subtracted from the assessed valuation used to determine the
amount of revenue allocated to the taxing agencies.
(b) Except as otherwise provided in paragraphs (c) and (d) and
NRS 540A.265, that portion of the levied taxes each year in excess
of the amount set forth in paragraph (a) must be allocated to and
when collected must be paid into a special fund of the
redevelopment agency to pay the costs of redevelopment and to pay
the principal of and interest on loans, money advanced to, or
indebtedness, whether funded, refunded, assumed, or otherwise,
incurred by the redevelopment agency to finance or refinance, in
whole or in part, redevelopment. Unless the total assessed valuation
of the taxable property in a redevelopment area exceeds the total
assessed value of the taxable property in the redevelopment area as
shown by the last equalized assessment roll referred to in paragraph
(a), all of the taxes levied and collected upon the taxable property in
the redevelopment area must be paid into the funds of the
respective taxing agencies. When the redevelopment plan is
terminated pursuant to the provisions of NRS 279.438 and 279.439
and all loans, advances and indebtedness, if any, and interest
thereon, have been paid, all money thereafter received from taxes
upon the taxable property in the redevelopment area must be paid
into the funds of the respective taxing agencies as taxes on all other
property are paid.
(c) That portion of the taxes in excess of the amount set forth in
paragraph (a) that is attributable to a tax rate levied by a taxing
agency to produce revenues in an amount sufficient to make annual
repayments of the principal of, and the interest on, any bonded
indebtedness that was approved by the voters of the taxing agency
on or after November 5, 1996, must be allocated to and when
collected must be paid into the debt service fund of that taxing
agency.
(d) That portion of the taxes in excess of the amount set forth in
paragraph (a) that is attributable to a new or increased tax rate
levied by a taxing agency and was approved by the voters of the
taxing agency on or after November 5, 1996, must be allocated to
and when collected must be paid into the appropriate fund of the
taxing agency.
2. Except as otherwise provided in subsection 3, in any fiscal
year, the total revenue paid to a redevelopment agency must not
exceed:
(a) In a municipality whose population is 100,000 or more, an
amount equal to the combined tax rates of the taxing agencies for
that fiscal year multiplied by 10 percent of the total assessed
valuation of the municipality.
(b) In a municipality whose population is 25,000 or more but
less than 100,000, an amount equal to the combined tax rates of the
taxing agencies for that fiscal year multiplied by 15 percent of the
total assessed valuation of the municipality.
(c) In a municipality whose population is less than 25,000, an
amount equal to the combined tax rates of the taxing agencies for
that fiscal year multiplied by 20 percent of the total assessed
valuation of the municipality.
If the revenue paid to a redevelopment agency must be limited
pursuant to paragraph (a) , [or] (b) or (c) and the redevelopment
agency has more than one redevelopment area, the redevelopment
agency shall determine the allocation to each area. Any revenue
which would be allocated to a redevelopment agency but for the
provisions of this section must be paid into the funds of the
respective taxing agencies.
3. The taxing agencies shall continue to pay to a
redevelopment agency any amount which was being paid before
July 1, 1987, and in anticipation of which the agency became
obligated before July 1, 1987, to repay any bond, loan, money
advanced or any other indebtedness, whether funded, refunded,
assumed or otherwise incurred.
4. For the purposes of this section, the assessment roll last
equalized before the effective date of the ordinance approving the
redevelopment plan is the assessment roll in existence on March 15
immediately preceding the effective date of the ordinance.
Sec. 16. NRS 349.950 is hereby amended to read as follows:
349.950 1. The Director may, to pay the cost of any water
project, borrow money or otherwise become obligated, and may
provide evidence of those obligations by issuing, except as
otherwise provided in this subsection, state securities or revenue
bonds. If the obligor is not a governmental entity, the Director shall
issue only revenue bonds to fulfill the obligation.
2. [State] Except as otherwise provided in this subsection,
state obligations may be outstanding pursuant to this section in an
aggregate principal amount of not more than $200,000,000. No
state obligations, other than refunding obligations, may be issued
pursuant to this section after August 1, 2003.
3. State securities must be payable from taxes and may be
additionally secured by all or any designated revenues from one or
more water projects. Any governmental entity statutorily authorized
to levy taxes for the payment of bonded indebtedness may use the
proceeds of those taxes to pay the principal of, interest on and
redemption premiums due in connection with state securities issued
pursuant to this section. Any such state securities may be issued
without an election or other preliminaries. No state securities may
be issued to refund any municipal securities issued to finance a
water project before July 1, 1987.
4. Provisions of NRS 349.150 to 349.364, inclusive, which are
not inconsistent with the provisions of NRS 349.935 to 349.961,
inclusive, apply to the issuance of state securities under this section.
Provisions of NRS 349.400 to 349.670, inclusive, which are not
inconsistent with the provisions of NRS 349.935 to 349.961,
inclusive, apply to the issuance of revenue bonds under this section.
5. The Legislature finds and declares that the issuance of state
securities pursuant to NRS 349.935 to 349.961, inclusive, is
necessary for the protection and preservation of the natural
resources of this state and for the purpose of obtaining the benefits
thereof, and constitutes an exercise of the authority conferred by the
second paragraph of Section 3 of Article 9 of the Constitution of the
State of Nevada.
Sec. 17. Section 2 of chapter 478, Statutes of Nevada 1983, as
amended by chapter 785, Statutes of Nevada 1989, at page 1866, is
hereby amended to read as follows:
Sec. 2. [After]
1. Except as otherwise provided in subsection 2, after
any of the agreements described in section 1 of this act have
been entered into, the state board of examiners shall issue
general obligation bonds of the State of Nevada to provide
the money necessary to pay the state’s share of costs
associated with projects authorized pursuant to section 1 of
this act for the conservation, distribution and acquisition of
water associated with the Truckee River, the Carson River,
the Lahontan Valley Wetlands and the Newlands Federal
Reclamation Project, but not more than $8,000,000 in face
amount. The bonds may be issued at one time or from time to
time.
2. No bonds, other than refunding bonds, may be
issued pursuant to this section after August 1, 2003.
Sec. 18. Section 4 of chapter 78, Statutes of Nevada 1993, at
page 124, is hereby amended to read as follows:
Sec. 4. 1. Subject to the limitations as to the
maximum principal amount in section 2 of this act,
the commission may in accordance with the provisions of the
State Securities Law issue revenue bonds and other securities
constituting special obligations and payable from net pledged
revenues, to defray the cost of the system, or any part
thereof, at any time or from time to time after the adoption of
this act, but not later than [15 years after the effective date
thereof, as the commission deems appropriate.] August 1,
2003.
2. This act does not prevent the commission from
funding, refunding or reissuing any outstanding state
securities issued by the commission or the former division of
Colorado River resources at any time as provided in the State
Securities Law.
3. Subject to contractual obligations, the net revenues
pledged for the payment of state securities by the
commission may be derived from contractual commitments
of the Federal Government, of those customers of the
commission or of others utilizing the system to repay the
commission’s cost of retiring the state securities, including
interest thereon, as the commission may determine.
Sec. 19. Chapter 627, Statutes of Nevada 1995, at page 2379,
is hereby amended to read a follows:
Section 1. 1. The department of information services
may enter into contracts for the purchase of equipment to
upgrade the mainframe of the computer. [The] Except as
otherwise provided in subsection 2, the contracts may
include installment purchase agreements for the equipment
which constitute a total debt of the State of Nevada in an
amount determined by the state board of examiners not
exceeding $5,000,000. Money for the payment of the debt
incurred pursuant to this section will be provided for in the
annual tax imposed for the payment of the obligations of the
State of Nevada from the consolidated bond interest and
redemption fund or by other legislative act. The provisions of
NRS 349.238 to 349.248, inclusive, apply to payment of the
debt. Interest on the debt must be paid at least semiannually
and the principal must be paid within 20 years after the date
of passage of this act.
2. No installment purchase agreement authorized
pursuant to subsection 1 may be entered into after August
1, 2003, other than an installment purchase agreement
entered into for the purpose of refunding outstanding
obligations.
Sec. 20. Section 4 of chapter 656, Statutes of Nevada 1995, at
page 2530, is hereby amended to read as follows:
Sec. 4. 1. The director of the department of prisons
shall, to the extent of legislative appropriations and
authorizations, enter into a contract in accordance with the
provisions of chapter 573, Statutes of Nevada 1991, at page
1893, for the construction and operation of a new
correctional facility for women in southern Nevada. [The]
Except as otherwise provided in subsection 2, the contract
may include an assignable lease or installment purchase
agreement for the facility which constitutes a debt of the
State of Nevada in an amount determined by the state board
of examiners not exceeding $44,000,000. Money for the
payment of the debt incurred pursuant to this section will be
provided for in the annual tax imposed for the payment of the
obligations of the State of Nevada from the consolidated
bond interest and redemption fund or by other legislative act.
The provisions of NRS 349.238 to 349.248, inclusive, apply
to payment of the debt. Interest on the debt must be paid at
least semiannually and the principal must be paid within 20
years after the date of passage of this act.
2. No lease or installment purchase agreement
authorized pursuant to subsection 1 may be entered into
after August 1, 2003, other than a lease or installment
purchase agreement entered into for the purpose of
refunding outstanding obligations.
3. Except for debt incurred as provided in subsection 1,
all payments of money required by the contract authorized by
subsection 1 must be subject to biennial appropriation by the
legislature and must not be due and payable unless an
appropriation is made.
Sec. 21. Section 7 of chapter 563, Statutes of Nevada 1997, at
page 2738, is hereby amended to read as follows:
Sec. 7. 1. The director may, to the extent of legislative
appropriations and authorizations, enter into a single contract
to finance, acquire and construct the facility. The contract
may include a provision that requires the contractor to
provide correctional services for the facility. The provisions
of this subsection do not prohibit the department or any other
state agency from providing correctional services for the
facility.
2. [The] Except as otherwise provided in this
subsection, the contract may include an assignable lease or
installment purchase agreement for the facility. The lease or
agreement constitutes a debt of the State of Nevada in an
amount determined by the state board of examiners not
exceeding $20,000,000. No lease or installment purchase
agreement authorized pursuant to this subsection may be
entered into after August 1, 2003, other than a lease or
installment purchase agreement entered into for the
purpose of refunding outstanding obligations.
3. Money for the payment of the debt incurred pursuant
to this section will be provided for in the annual tax imposed
for the payment of the obligations of the State of Nevada
from the consolidated bond interest and redemption fund or
by other legislative act. The provisions of NRS 349.238 to
349.248, inclusive, apply to the payment of the debt. Any
interest on the debt must be paid at least semiannually and
the principal must be paid within 20 years after the date the
contract is approved by the state board of examiners.
4. Except for debt incurred as provided in subsection 1,
all payments of money required by the contract authorized
pursuant to the provisions of subsection 1 must be subject to
biennial appropriation by the legislature and must not be due
and payable unless an appropriation is made.
5. The department may request that proposals for
correctional services be submitted and must specify the
requirements for the proposal.
6. A proposal submitted to the department must:
(a) Meet the requirements specified in the request; and
(b) Set a fixed price for the services offered.
7. The contract to finance, acquire and construct the
facility is exempt from the provisions relating to bids set
forth in NRS 341.145 to 341.151, inclusive.
Sec. 22. This act becomes effective upon passage and approval
and applies retroactively to July 1, 2003.
20~~~~~03