Assembly Bill No. 597–Committee on Ways and Means

March 17, 1999

____________

Referred to Committee on Ways and Means

 

SUMMARY—Revises provisions regarding school facilities. (BDR 34-1574)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

~

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 governmental administration; providing in skeleton form for the revision of provisions governing the construction and financing of school facilities; creating a fund to assist school districts in financing capital improvements; revising provisions governing the review of plans for school facilities; increasing the tax on transient lodging and the real property transfer tax for the support of capital projects of school districts; revising provisions governing the issuance of bonds by the board of trustees of a school district without an election; 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. Chapter 387 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. The fund to assist school districts in financing capital

1-4 improvements is hereby created in the state treasury, to be administered

1-5 by the superintendent of public instruction. All money received and held

1-6 by the state treasurer for the purpose of the fund must be deposited in the

1-7 fund.

1-8 2. The superintendent of public instruction may accept gifts and

1-9 grants from any source for deposit in the fund.

1-10 3. The money in the fund must be invested as the money in other

1-11 state funds is invested. All interest and income earned on the money in

1-12 the fund must be credited to the fund.

1-13 4. Claims against the fund must be paid as other claims against the

1-14 state are paid.

2-1 Sec. 3. 1. The board of trustees of a school district may apply to

2-2 the department for a grant of money from the fund created pursuant to

2-3 section 2 of this act on a form provided by the department. The

2-4 application must be accompanied by proof that the school district has

2-5 committed matching money for the capital improvement project.

2-6 2. The department shall approve an application if the school district

2-7 has committed matching money for the project in an amount that the

2-8 department determines is sufficient pursuant to the criteria adopted by

2-9 the department pursuant to subsection 3. The department shall make

2-10 allocations from the fund based upon the need of each school district

2-11 whose application is approved.

2-12 3. The department shall adopt regulations that prescribe the:

2-13 (a) Annual deadline for submission of an application to the

2-14 department by a school district that desires to receive a grant of money

2-15 from the fund; and

2-16 (b) Criteria for determining the amount of matching money that must

2-17 be committed by a school district to be eligible for a grant of money from

2-18 the fund.

2-19 Sec. 4. NRS 393.110 is hereby amended to read as follows:

2-20 393.110 1. Except as otherwise provided in subsection 2:

2-21 (a) Unless standard plans, designs and specifications are to be used as

2-22 provided in NRS 385.125, before letting any contract or contracts for the

2-23 erection of any new school building, the board of trustees of a school

2-24 district shall submit plans, designs and specifications therefor to and obtain

2-25 the written approval of the plans, designs and specifications by the state

2-26 public works board. The state public works board is authorized to charge

2-27 and collect, and the board of trustees is authorized to pay, a reasonable fee

2-28 for the payment of any costs incurred by the state public works board in

2-29 securing the approval of qualified architects or engineers of the plans,

2-30 designs and specifications submitted by the board of trustees in compliance

2-31 with the provisions of this paragraph. The state public works board shall

2-32 review the plans, designs and specifications not later than 60 days after

2-33 receipt from the school district.

2-34 (b) Before letting any contract or contracts for any addition to or

2-35 alteration of an existing school building which involves structural systems,

2-36 or exiting, sanitary or fire protection facilities, the board of trustees of a

2-37 school district shall submit plans, designs and specifications therefor to and

2-38 obtain the written approval of the plans, designs and specifications by the

2-39 state public works board. The state public works board is authorized to

2-40 charge and collect, and the board of trustees is authorized to pay, a

2-41 reasonable fee for the payment of any costs incurred by the state public

2-42 works board in securing the approval of qualified architects or engineers of

2-43 the plans, designs and specifications submitted by the board of trustees in

3-1 compliance with the provisions of this paragraph. The state public works

3-2 board shall review the plans, designs and specifications not later than 60

3-3 days after receipt from the school district.

3-4 The state public works board shall ensure that all plans, designs and

3-5 specifications that it reviews pursuant to this section comply with all

3-6 applicable requirements of the Americans with Disabilities Act of 1990 ,

3-7 [(] 42 U.S.C. §§ 12101 to 12213, inclusive . [).]

3-8 2. Upon the request of a board of trustees of a school district, or its

3-9 designated representative, the state public works board may waive the

3-10 requirements specified in subsection 1 and delegate its powers and duties

3-11 thereunder to the district.

3-12 3. If the state public works board waives the requirements of

3-13 subsection 1 and delegates its powers and duties thereunder to a school

3-14 district, the school district shall submit a copy of its final plans, designs

3-15 and specifications for any project to which that section applies to the

3-16 building and planning department of the appropriate city or county before

3-17 completion of the project. The building and planning department shall

3-18 review the plans, designs and specifications not later than 60 days after

3-19 receipt from the school district.

3-20 4. No contract for any of the purposes specified in subsection 1 made

3-21 by a board of trustees of a school district contrary to the provisions of this

3-22 section is valid, nor [shall] may any public money be paid for erecting,

3-23 adding to or altering any school building in contravention of this section.

3-24 Sec. 5. NRS 244.3352 is hereby amended to read as follows:

3-25 244.3352 1. The board of county commissioners [:

3-26 (a) In a county whose population is 400,000 or more,] in each county

3-27 shall impose a tax at a rate of 2 percent [; and

3-28 (b) In a county whose population is less than 400,000, shall impose a

3-29 tax at the rate of 1 percent,] of the gross receipts from the rental of

3-30 transient lodging in that county upon all persons in the business of

3-31 providing lodging. This tax must be imposed by the board of county

3-32 commissioners in each county, regardless of the existence or nonexistence

3-33 of any other license fee or tax imposed on the revenues from the rental of

3-34 transient lodging. The ordinance imposing the tax must include a schedule

3-35 for the payment of the tax and the provisions of subsection 4.

3-36 2. The tax imposed pursuant to subsection 1 must be collected and

3-37 administered pursuant to NRS 244.335.

3-38 3. The tax imposed pursuant to subsection 1 may be collected from the

3-39 paying guests and may be shown as an addition to the charge for the rental

3-40 of transient lodging. The person providing the transient lodging is liable to

3-41 the county for the tax whether or not it is actually collected from the

3-42 paying guest.

4-1 4. If the tax imposed pursuant to subsection 1 is not paid within the

4-2 time set forth in the schedule for payment, the county shall charge and

4-3 collect in addition to the tax:

4-4 (a) A penalty of not more than 10 percent of the amount due, exclusive

4-5 of interest, or an administrative fee established by the board of county

4-6 commissioners, whichever is greater; and

4-7 (b) Interest on the amount due at the rate of not more than 1.5 percent

4-8 per month or fraction thereof from the date on which the tax became due

4-9 until the date of payment.

4-10 5. As used in this section, "gross receipts from the rental of transient

4-11 lodging" does not include the tax imposed and collected from paying

4-12 guests pursuant to this section or NRS 268.096.

4-13 Sec. 6. NRS 244.3354 is hereby amended to read as follows:

4-14 244.3354 The proceeds of the tax imposed pursuant to NRS 244.3352

4-15 and any applicable penalty or interest must be distributed as follows:

4-16 1. [In a county whose population is 400,000 or more:

4-17 (a)] Three-eighths of the first 1 percent of the proceeds must be paid to

4-18 the department of taxation for deposit with the state treasurer for credit to

4-19 the fund for the promotion of tourism.

4-20 [(b)] 2. The remaining proceeds must be transmitted to the county

4-21 treasurer for deposit in the county school district’s fund for capital projects

4-22 established pursuant to NRS 387.328, to be held and expended in the same

4-23 manner as other money deposited in that fund.

4-24 [2. In a county whose population is less than 400,000:

4-25 (a) Three-eighths must be paid to the department of taxation for deposit

4-26 with the state treasurer for credit to the fund for the promotion of tourism.

4-27 (b) Five-eighths must be deposited with the county fair and recreation

4-28 board created pursuant to NRS 244A.599 or, if no such board is created,

4-29 with the board of county commissioners, to be used to advertise the

4-30 resources of that county related to tourism, including available

4-31 accommodations, transportation, entertainment, natural resources and

4-32 climate, and to promote special events related thereto.]

4-33 Sec. 7. NRS 244.3359 is hereby amended to read as follows:

4-34 244.3359 1. A county whose population is 400,000 or more shall not

4-35 impose a new tax on the rental of transient lodging or increase the rate of

4-36 an existing tax on the rental of transient lodging after March 25, 1991,

4-37 except pursuant to NRS 244.3351 and 244.3352.

4-38 2. [A] Except as otherwise provided in subsection 3, a county whose

4-39 population is 100,000 or more but less than 400,000 shall not impose a

4-40 new tax on the rental of transient lodging or increase the rate of an existing

4-41 tax on the rental of transient lodging after March 25, 1991.

5-1 3. The legislature hereby declares that the limitation imposed by

5-2 subsection 2 will not be repealed or amended except to allow the

5-3 imposition of an increase in such a tax for [the] :

5-4 (a) The promotion of tourism [or for the] ;

5-5 (b) The support of a school district’s fund for capital projects

5-6 established pursuant to NRS 387.328; or

5-7 (c) The construction or operation of tourism facilities by a convention

5-8 and visitors authority.

5-9 Sec. 8. NRS 268.096 is hereby amended to read as follows:

5-10 268.096 1. The city council or other governing body of each

5-11 incorporated city [:

5-12 (a) In a county whose population is 400,000 or more,] shall impose a

5-13 tax at a rate of 2 percent [; and

5-14 (b) In a county whose population is less than 400,000, shall impose a

5-15 tax at the rate of 1 percent,] of the gross receipts from the rental of

5-16 transient lodging in that city upon all persons in the business of providing

5-17 lodging. This tax must be imposed by the city council or other governing

5-18 body of each incorporated city, regardless of the existence or nonexistence

5-19 of any other license fee or tax imposed on the revenues from the rental of

5-20 transient lodging. The ordinance imposing the tax must include a schedule

5-21 for the payment of the tax and the provisions of subsection 4.

5-22 2. The tax imposed pursuant to subsection 1 must be collected and

5-23 administered pursuant to NRS 268.095.

5-24 3. The tax imposed pursuant to subsection 1 may be collected from the

5-25 paying guests and may be shown as an addition to the charge for the rental

5-26 of transient lodging. The person providing the transient lodging is liable to

5-27 the city for the tax whether or not it is actually collected from the paying

5-28 guest.

5-29 4. If the tax imposed pursuant to subsection 1 is not paid within the

5-30 time set forth in the schedule for payment, the city shall charge and collect

5-31 in addition to the tax:

5-32 (a) A penalty of not more than 10 percent of the amount due, exclusive

5-33 of interest, or an administrative fee established by the governing body,

5-34 whichever is greater; and

5-35 (b) Interest on the amount due at the rate of not more than 1.5 percent

5-36 per month or fraction thereof from the date on which the tax became due

5-37 until the date of payment.

5-38 5. As used in this section, "gross receipts from the rental of transient

5-39 lodging" does not include the tax imposed or collected from paying guests

5-40 pursuant to this section or NRS 244.3352.

5-41 Sec. 9. NRS 268.0962 is hereby amended to read as follows:

5-42 268.0962 The proceeds of the tax imposed pursuant to NRS 268.096

5-43 and any applicable penalty or interest must be distributed as follows:

6-1 1. [In a county whose population is 400,000 or more:

6-2 (a)] Three-eighths of the first 1 percent of the proceeds must be paid to

6-3 the department of taxation for deposit with the state treasurer for credit to

6-4 the fund for the promotion of tourism.

6-5 [(b)] 2. The remaining proceeds must be transmitted to the county

6-6 treasurer for deposit in the county school district’s fund for capital projects

6-7 established pursuant to NRS 387.328, to be held and expended in the same

6-8 manner as other money deposited in that fund.

6-9 [2. In a county whose population is less than 400,000:

6-10 (a) Three-eighths must be paid to the department of taxation for deposit

6-11 with the state treasurer for credit to the fund for the promotion of tourism.

6-12 (b) Five-eighths must be deposited with the county fair and recreation

6-13 board created pursuant to NRS 244A.599 or, if no such board is created,

6-14 with the city council or other governing body of the incorporated city, to

6-15 be used to advertise the resources of that county or incorporated city

6-16 related to tourism, including available accommodations, transportation,

6-17 entertainment, natural resources and climate, and to promote special events

6-18 related thereto.]

6-19 Sec. 10. NRS 268.0968 is hereby amended to read as follows:

6-20 268.0968 1. Except as otherwise provided in NRS 268.096 and

6-21 268.801 to 268.808, inclusive, a city located in a county whose population

6-22 is 400,000 or more shall not impose a new tax on the rental of transient

6-23 lodging or increase the rate of an existing tax on the rental of transient

6-24 lodging after March 25, 1991.

6-25 2. Except as otherwise provided in subsection 3 and NRS 268.096

6-26 and 268.7845, a city located in a county whose population is 100,000 or

6-27 more but less than 400,000 shall not impose a new tax on the rental of

6-28 transient lodging or increase the rate of an existing tax on the rental of

6-29 transient lodging after March 25, 1991.

6-30 3. The legislature hereby declares that the limitation imposed by

6-31 subsection 2 will not be repealed or amended except to allow the

6-32 imposition of an increase in such a tax for:

6-33 (a) The promotion of tourism;

6-34 (b) The support of a school district’s fund for capital projects

6-35 established pursuant to NRS 387.328;

6-36 (c) The construction or operation of tourism facilities by a convention

6-37 and visitors authority; or

6-38 [(c)] (d) The acquisition, establishment, construction or expansion of

6-39 one or more railroad grade separation projects.

6-40 Sec. 11. Chapter 278 of NRS is hereby amended by adding thereto a

6-41 new section to read as follows:

6-42 A governing body shall not require a school district to make an

6-43 improvement or pay the costs associated with an improvement if the

7-1 improvement is located more than 100 feet from the edge of the property

7-2 owned by the school district.

7-3 Sec. 12. NRS 350.020 is hereby amended to read as follows:

7-4 350.020 1. Except as otherwise provided by subsections 3 and 4, if a

7-5 municipality proposes to issue or incur general obligations, the proposal

7-6 must be submitted to the electors of the municipality at a special election

7-7 called for that purpose or the next general municipal election or general

7-8 state election.

7-9 2. Such a special election may be held:

7-10 (a) At any time if the governing body of the municipality determines,

7-11 by a unanimous vote, that an emergency exists; or

7-12 (b) On the first Tuesday after the first Monday in June of an odd-

7-13 numbered year.

7-14 The determination made by the governing body is conclusive unless it is

7-15 shown that the governing body acted with fraud or a gross abuse of

7-16 discretion. An action to challenge the determination made by the

7-17 governing body must be commenced within 15 days after the governing

7-18 body’s determination is final. As used in this subsection, "emergency"

7-19 means any occurrence or combination of occurrences which requires

7-20 immediate action by the governing body of the municipality to prevent or

7-21 mitigate a substantial financial loss to the municipality or to enable the

7-22 governing body to provide an essential service to the residents of the

7-23 municipality.

7-24 3. If payment of a general obligation of the municipality is

7-25 additionally secured by a pledge of gross or net revenue of a project to be

7-26 financed by its issue, and the governing body determines, by an affirmative

7-27 vote of two-thirds of the members elected to the governing body, that the

7-28 pledged revenue will at least equal the amount required in each year for the

7-29 payment of interest and principal, without regard to any option reserved by

7-30 the municipality for early redemption, the municipality may, after a public

7-31 hearing, incur this general obligation without an election unless, within 60

7-32 days after publication of a resolution of intent to issue the bonds, a petition

7-33 is presented to the governing body signed by not less than 5 percent of the

7-34 registered voters of the municipality who together with any corporate

7-35 petitioners own not less than 2 percent in assessed value of the taxable

7-36 property of the municipality. Any member elected to the governing body

7-37 whose authority to vote is limited by charter, statute or otherwise may vote

7-38 on the determination required to be made by the governing body pursuant

7-39 to this subsection. The determination by the governing body becomes

7-40 conclusive on the last day for filing the petition. For the purpose of this

7-41 subsection, the number of registered voters must be determined as of the

7-42 close of registration for the last preceding general election and assessed

7-43 values must be determined from the next preceding final assessment roll.

8-1 An authorized corporate officer may sign such a petition whether or not he

8-2 is a registered voter. The resolution of intent need not be published in full,

8-3 but the publication must include the amount of the obligation and the

8-4 purpose for which it is to be incurred. Notice of the public hearing must be

8-5 published at least 10 days before the day of the hearing. The publications

8-6 must be made once in a newspaper of general circulation in the

8-7 municipality. When published, the notice of the public hearing must be at

8-8 least as large as 5 inches high by 4 inches wide.

8-9 4. [Until June 30, 2008, the] The board of trustees of a school district

8-10 may issue general obligation bonds which are not expected to result in an

8-11 increase in the existing property tax levy for the payment of bonds of the

8-12 school district without holding an election for each issuance of the bonds if

8-13 the qualified electors approve a question submitted by the board of trustees

8-14 that authorizes issuance of bonds [in such a manner.] for a period of 10

8-15 years after the date of approval by the voters. If the question is approved,

8-16 the board of trustees of the school district may issue the bonds [,] for a

8-17 period of 10 years after the date of approval by the voters, after obtaining

8-18 the approval of the debt management commission in the county in which

8-19 the school district is located and, in a county whose population is 100,000

8-20 or more, the approval of the oversight panel for school facilities

8-21 established pursuant to NRS 393.092 in that county, if the board of trustees

8-22 of the school district finds that the existing tax for debt service will at least

8-23 equal the amount required to pay the principal and interest on the

8-24 outstanding general obligations of the school district and the general

8-25 obligations proposed to be issued. The finding made by the board of

8-26 trustees is conclusive in the absence of fraud or gross abuse of discretion.

8-27 As used in this subsection, "general obligations" does not include medium-

8-28 term obligations issued pursuant to NRS 350.085 to 350.095, inclusive.

8-29 5. At the time of issuance of bonds authorized pursuant to subsection

8-30 4, the board of trustees shall establish a reserve account in its debt service

8-31 fund for payment of the outstanding bonds of the school district. The

8-32 reserve account must be established and maintained in an amount at least

8-33 equal to the lesser of the amount of principal and interest payments due on

8-34 all of the outstanding bonds of the school district in the next fiscal year or

8-35 10 percent of the outstanding principal amount of the outstanding bonds of

8-36 the school district. If the amount in the reserve account falls below the

8-37 amount required by this subsection:

8-38 (a) The board of trustees shall not issue additional bonds pursuant to

8-39 subsection 4 until the reserve account is restored to the level required by

8-40 this subsection; and

8-41 (b) The board of trustees shall apply all of the taxes levied by the school

8-42 district for payment of bonds of the school district that are not needed for

8-43 payment of the principal and interest on bonds of the school district in the

9-1 current fiscal year to restore the reserve account to the level required

9-2 pursuant to this subsection.

9-3 6. Any revenue from property taxes in addition to the amount

9-4 required to be deposited in the reserve account pursuant to subsection 5

9-5 may be deposited in the county school district’s fund for capital projects

9-6 established pursuant to NRS 387.328, to be held and expended in the

9-7 same manner as other money deposited in that fund.

9-8 7. A municipality may issue special or medium-term obligations

9-9 without an election.

9-10 Sec. 13. NRS 375.020 is hereby amended to read as follows:

9-11 375.020 1. A tax, at the rate of [:

9-12 (a) In a county whose population is 400,000 or more, $1.25; and

9-13 (b) In a county whose population is less than 400,000, 65 cents,] $1.25

9-14 for each $500 of value or fraction thereof, is hereby imposed on each deed

9-15 by which any lands, tenements or other realty is granted, assigned,

9-16 transferred or otherwise conveyed to, or vested in, another person, if the

9-17 consideration or value of the interest or property conveyed, exclusive of

9-18 the value of any lien or encumbrance remaining on the interest or property

9-19 at the time of sale, exceeds $100.

9-20 2. The amount of tax must be computed on the basis of the value of

9-21 the transferred real property as declared pursuant to NRS 375.060.

9-22 Sec. 14. NRS 375.070 is hereby amended to read as follows:

9-23 375.070 1. The county recorder shall transmit the proceeds of the

9-24 real property transfer tax at the end of each quarter in the following

9-25 manner:

9-26 (a) An amount equal to that portion of the proceeds which is equivalent

9-27 to 10 cents for each $500 of value or fraction thereof must be transmitted

9-28 to the state treasurer who shall deposit that amount in the account for low-

9-29 income housing created pursuant to NRS 319.500.

9-30 (b) [In a county whose population is more than 400,000, an] An amount

9-31 equal to that portion of the proceeds which is equivalent to 60 cents for

9-32 each $500 of value or fraction thereof must be transmitted to the county

9-33 treasurer for deposit in the county school district’s fund for capital projects

9-34 established pursuant to NRS 387.328, to be held and expended in the same

9-35 manner as other money deposited in that fund.

9-36 (c) The remaining proceeds must be transmitted to the state treasurer for

9-37 deposit in the local government tax distribution fund created by NRS

9-38 360.660 for credit to the respective accounts of Carson City and each

9-39 county.

9-40 2. In addition to any other authorized use of the proceeds it receives

9-41 pursuant to subsection 1, a county or city may use the proceeds to pay

9-42 expenses related to or incurred for the development of affordable housing

9-43 for families whose income does not exceed 80 percent of the median

10-1 income for families residing in the same county, as that percentage is

10-2 defined by the United States Department of Housing and Urban

10-3 Development. A county or city that uses the proceeds in that manner must

10-4 give priority to the development of affordable housing for persons who are

10-5 disabled or elderly.

10-6 3. The expenses authorized by subsection 2 include, but are not limited

10-7 to:

10-8 (a) The costs to acquire land and developmental rights;

10-9 (b) Related predevelopment expenses;

10-10 (c) The costs to develop the land, including the payment of related

10-11 rebates;

10-12 (d) Contributions toward down payments made for the purchase of

10-13 affordable housing; and

10-14 (e) The creation of related trust funds.

10-15 Sec. 15. Section 31 of chapter 516, Statutes of Nevada 1997, at page

10-16 2470, is hereby amended to read as follows:

10-17 Sec. 31. 1. This section and sections 1 to 7, inclusive, 9, 10,

10-18 22 to 25, inclusive, and 27 to 30, inclusive, of this act, become

10-19 effective upon passage and approval. Sections 22 to 25, inclusive,

10-20 of this act, expire by limitation on June 30, 1999.

10-21 2. Sections 11, 11.5, 13, 14, 14.5, 16, 20 and 21 of this act

10-22 become effective on August 1, 1997.

10-23 3. Sections 8, 12 and 15 of this act become effective on July 1,

10-24 1999.

10-25 4. Sections 17, 18 and 19 of this act become effective on

10-26 October 1, 1997. [The amendatory provisions of sections 17, 18

10-27 and 19 of this act expire by limitation on June 30, 2008.]

10-28 5. Section 26 of this act becomes effective on July 1, 2008.

10-29 Sec. 16. This act becomes effective on July 1, 1999.

~