Assembly Bill No. 128–Committee on Government Affairs

(On Behalf of State Treasurer)

February 4, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes to provisions governing authorization, sale and issuance of state obligations. (BDR 30-994)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to state obligations; authorizing a state agency that issues bonds in the name of the state to delegate the authority to sign a contract for the purchase of the bonds to a person designated by the state treasurer; authorizing the state treasurer to employ legal, financial and other professional services in connection with the authorization, sale or issuance of certain obligations; expanding the time within which certain bonds for highway construction must mature; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 349.303 is hereby amended to read as follows:

1-2 349.303 1. The commission may, before any sale of bonds, delegate

1-3 to the treasurer or his designee the authority to sign a contract for the

1-4 purchase of the bonds or to accept a binding bid for the bonds subject to

1-5 the requirements specified by the commission concerning:

1-6 (a) The rate of interest on the bonds;

1-7 (b) The dates on which and the prices at which the bonds may be called

1-8 for redemption before maturity;

1-9 (c) The price at which the bonds will be sold; and

1-10 (d) The principal amount of the bonds and the amount of principal

1-11 maturing in any particular year.

1-12 2. All terms of the bonds other than:

1-13 (a) The rate of interest;

2-1 (b) The dates and prices for the redemption of the bonds;

2-2 (c) The price for the sale of the bonds;

2-3 (d) The principal amount of the bonds; and

2-4 (e) The requirements for the principal maturing in particular years,

2-5 must be approved by the commission before the bonds are delivered.

2-6 3. The final rate of interest, dates and prices of redemption, price for

2-7 the sale of the bonds, principal amount and the requirements for the

2-8 principal amount maturing in particular years are not required to be

2-9 approved by the commission if each of those terms complies with the

2-10 requirements specified by the commission before the contract for the

2-11 purchase of the bonds is signed or the bid for the bonds is accepted.

2-12 Sec. 2. NRS 226.100 is hereby amended to read as follows:

2-13 226.100 1. The state treasurer may appoint and employ a chief

2-14 deputy, a deputy of [operations,] debt management, a deputy of

2-15 investments, a deputy of cash management and an assistant to the state

2-16 treasurer in the unclassified service of the state.

2-17 2. Except as otherwise provided in NRS 284.143, the chief deputy

2-18 state treasurer shall devote his entire time and attention to the business of

2-19 his office and shall not pursue any other business or occupation or hold

2-20 any other office of profit.

2-21 Sec. 3. NRS 226.110 is hereby amended to read as follows:

2-22 226.110 The state treasurer:

2-23 1. Shall receive and keep all money of the state which is not expressly

2-24 required by law to be received and kept by some other person.

2-25 2. Shall receipt to the state controller for all money received, from

2-26 whatever source, at the time of receiving it.

2-27 3. Shall establish the policies to be followed in the investment of

2-28 money of the state, subject to the periodic review and approval or

2-29 disapproval of those policies by the state board of finance.

2-30 4. Shall disburse the public money upon warrants drawn upon the

2-31 treasury by the state controller, and not otherwise. The warrants must be

2-32 registered, and paid in the order of their registry. The state treasurer may

2-33 use any sampling or post-audit technique, or both, which he considers

2-34 reasonable to verify the proper distribution of warrants.

2-35 5. Shall keep a just, true and comprehensive account of all money

2-36 received and disbursed.

2-37 6. Shall deliver in good order to his successor in office all money,

2-38 records, books, papers and other things belonging to his office.

2-39 7. Shall fix, charge and collect reasonable fees for:

2-40 (a) Investing the money in any fund or account which is credited for

2-41 interest earned on money deposited in it; and

2-42 (b) Special services rendered to other state agencies or to members of

2-43 the public which increase the cost of operating his office.

3-1 8. Serves as the primary representative of the state in matters

3-2 concerning any nationally recognized bond credit rating agency for the

3-3 purposes of the issuance of any obligation authorized on the behalf and in

3-4 the name of the state, except as otherwise provided in NRS 538.206 and

3-5 except for those obligations issued pursuant to chapter 319 of NRS and

3-6 NRS 349.400 to 349.987, inclusive.

3-7 9. Is directly responsible for the issuance of any obligation authorized

3-8 on the behalf and in the name of the state, except as otherwise provided in

3-9 NRS 538.206 and except for those obligations issued pursuant to chapter

3-10 319 of NRS and NRS 349.400 to 349.987, inclusive. The state treasurer

3-11 [shall] :

3-12 (a) Shall issue such an obligation as soon as practicable after receiving

3-13 a request from a state agency for the issuance of the obligation.

3-14 (b) May, except as otherwise provided in NRS 538.206, employ

3-15 necessary legal, financial or other professional services in connection

3-16 with the authorization, sale or issuance of such an obligation.

3-17 10. May organize and facilitate statewide pooled financing programs,

3-18 including lease purchases, for the benefit of the state and any political

3-19 subdivision, including districts organized pursuant to NRS 450.550 to

3-20 450.750, inclusive, and chapters 244A, 309, 318, 379, 474, 541, 543 and

3-21 555 of NRS.

3-22 Sec. 4. NRS 408.273 is hereby amended to read as follows:

3-23 408.273 1. The state board of finance shall, when so requested by

3-24 the board , [of directors of the department of transportation,] issue special

3-25 obligation bonds of the State of Nevada to provide money to enable the

3-26 department [of transportation] to complete pending and currently projected

3-27 highway construction projects, in an amount specified in the request. The

3-28 bonds may be issued at one time or from time to time, and must be issued

3-29 in accordance with the State Securities Law. These bonds must be secured

3-30 by [a] :

3-31 (a) A pledge of the appropriate federal highway grants payable to the

3-32 state [and by] ; or

3-33 (b) The appropriate federal highway grants payable to the state and

3-34 taxes which are credited to the state highway fund,

3-35 and must mature within not more than [10] 20 years from their date.

3-36 2. The department shall cooperate with the state treasurer in the

3-37 issuance of the bonds.

3-38 3. The state treasurer may employ any necessary legal, financial or

3-39 other professional services in connection with the issuance of the bonds.

3-40 Sec. 5. NRS 538.206 is hereby amended to read as follows:

3-41 538.206 Before issuing any general obligation which the commission

3-42 is authorized by law to issue on behalf and in the name of the State of

4-1 Nevada, the commission shall consult the state treasurer. The chairman of

4-2 the commission and the state treasurer [shall jointly] , jointly:

4-3 1. Shall represent the State of Nevada in matters concerning any

4-4 nationally recognized bond credit rating agency for the purposes of the

4-5 issuance of any such obligation.

4-6 2. May employ any necessary legal, financial or other professional

4-7 services in connection with the authorization, sale or issuance of any

4-8 such obligation.

4-9 Sec. 6. This act becomes effective on July 1, 1999.

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