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).

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 director of the department of administration. All money received

1-6 and held by the state treasurer for the purpose of the fund must be

1-7 deposited in the fund.

1-8 2. The director of the department of administration may accept gifts

1-9 and 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.

2-1 4. Claims against the fund must be paid as other claims against the

2-2 state are paid.

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

2-4 the director of the department of administration for a grant of money

2-5 from the fund created pursuant to section 2 of this act on a form

2-6 provided by the director of the department of administration. The

2-7 application must be accompanied by proof that the following emergency

2-8 conditions exist within the school district:

2-9 (a) The assessed valuation of the taxable property in the county in

2-10 which the school district is located is declining and all other resources

2-11 available to the school district for financing capital improvements are

2-12 diminishing;

2-13 (b) The combined ad valorem tax rate of the county is at the limit

2-14 imposed by NRS 361.453; and

2-15 (c) At least:

2-16 (1) One building that is located on the grounds of a school within

2-17 the school district has been condemned;

2-18 (2) One of the facilities that is located on the grounds of a school

2-19 within the school district is unsuitable for use as a result of:

2-20 (I) Structural defects;

2-21 (II) Barriers to accessibility; or

2-22 (III) Hazards to life, health or safety, including, without

2-23 limitation, environmental hazards and the operation of the facility in an

2-24 unsafe manner; or

2-25 (3) One of the facilities that is located on the grounds of a school

2-26 within the school district is in such a condition that the cost of renovating

2-27 the facility would exceed 40 percent of the cost of constructing a new

2-28 facility.

2-29 2. Upon receipt of an application submitted pursuant to subsection 1,

2-30 the director of the department of administration shall forward the

2-31 application to the:

2-32 (a) Department of taxation to determine whether or not:

2-33 (1) The application satisfies the showing of proof required pursuant

2-34 to paragraphs (a) and (b) of subsection 1; and

2-35 (2) The board of county commissioners in the county in which the

2-36 school district is located has imposed a tax of more than one-eighth of 1

2-37 percent pursuant to NRS 377B.100; and

2-38 (b) State public works board to determine whether the application

2-39 satisfies the showing of proof required pursuant to paragraph (c) of

2-40 subsection 1; and

2-41 (c) Department of education for informational purposes.

2-42 3. The department of taxation and the state public works board
2-43 shall submit written statements of their determinations pursuant to

3-1 subsection 2 regarding an application to the director of the department of

3-2 administration. Upon receipt of such statements, the director shall submit

3-3 the application accompanied by the written statements from the

3-4 department of taxation and state public works board to the state board of

3-5 examiners for approval.

3-6 4. The director of the department of administration shall make

3-7 grants from the fund created pursuant to section 2 of this act based upon

3-8 the need of each school district whose application is approved by the state

3-9 board of examiners.

3-10 5. The director of the department of administration shall adopt

3-11 regulations that prescribe the annual deadline for submission of an

3-12 application to the director of the department of administration by a

3-13 school district that desires to receive a grant of money from the fund.

3-14 Sec. 4. NRS 350.020 is hereby amended to read as follows:

3-15 350.020 1. Except as otherwise provided by subsections 3 and 4, if a

3-43 is presented to the governing body signed by not less than 5 percent of the

4-1 registered voters of the municipality who together with any corporate

4-2 petitioners own not less than 2 percent in assessed value of the taxable

4-3 property of the municipality. Any member elected to the governing body

4-4 whose authority to vote is limited by charter, statute or otherwise may vote

4-5 on the determination required to be made by the governing body pursuant

4-6 to this subsection. The determination by the governing body becomes

4-7 conclusive on the last day for filing the petition. For the purpose of this

4-8 subsection, the number of registered voters must be determined as of the

4-9 close of registration for the last preceding general election and assessed

4-10 values must be determined from the next preceding final assessment roll.

4-11 An authorized corporate officer may sign such a petition whether or not he

4-12 is a registered voter. The resolution of intent need not be published in full,

4-13 but the publication must include the amount of the obligation and the

4-14 purpose for which it is to be incurred. Notice of the public hearing must be

4-15 published at least 10 days before the day of the hearing. The publications

4-16 must be made once in a newspaper of general circulation in the

4-17 municipality. When published, the notice of the public hearing must be at

4-18 least as large as 5 inches high by 4 inches wide.

4-19 4. [Until June 30, 2008, the] The board of trustees of a school district

4-20 may issue general obligation bonds which are not expected to result in an

4-21 increase in the existing property tax levy for the payment of bonds of the

4-22 school district without holding an election for each issuance of the bonds if

4-23 the qualified electors approve a question submitted by the board of trustees

4-24 that authorizes issuance of bonds [in such a manner.] for a period of 10

4-25 years after the date of approval by the voters. If the question is approved,

4-26 the board of trustees of the school district may issue the bonds [,] for a

4-27 period of 10 years after the date of approval by the voters, after obtaining

4-28 the approval of the debt management commission in the county in which

4-29 the school district is located and, in a county whose population is 100,000

4-30 or more, the approval of the oversight panel for school facilities established

4-31 pursuant to NRS 393.092 in that county, if the board of trustees of the

4-32 school district finds that the existing tax for debt service will at least equal

4-33 the amount required to pay the principal and interest on the outstanding

4-34 general obligations of the school district and the general obligations

4-35 proposed to be issued. The finding made by the board of trustees is

4-36 conclusive in the absence of fraud or gross abuse of discretion. As used in

4-37 this subsection, "general obligations" does not include medium-term

4-38 obligations issued pursuant to NRS 350.085 to 350.095, inclusive.

4-39 5. At the time of issuance of bonds authorized pursuant to subsection 4,

4-40 the board of trustees shall establish a reserve account in its debt service

4-41 fund for payment of the outstanding bonds of the school district. The

4-42 reserve account must be established and maintained in an amount at least

4-43 equal to the lesser of the amount of principal and interest payments due on

5-1 all of the outstanding bonds of the school district in the next fiscal year or

5-2 10 percent of the outstanding principal amount of the outstanding bonds of

5-3 the school district. If the amount in the reserve account falls below the

5-4 amount required by this subsection:

5-5 (a) The board of trustees shall not issue additional bonds pursuant to

5-6 subsection 4 until the reserve account is restored to the level required by

5-7 this subsection; and

5-8 (b) The board of trustees shall apply all of the taxes levied by the school

5-9 district for payment of bonds of the school district that are not needed for

5-10 payment of the principal and interest on bonds of the school district in the

5-11 current fiscal year to restore the reserve account to the level required

5-12 pursuant to this subsection.

5-13 6. A municipality may issue special or medium-term obligations

5-14 without an election.

5-15 Sec. 5. Title 32 of NRS is hereby amended by adding thereto a new

5-16 chapter to consist of the provisions set forth as sections 6 and 7 of this act.

5-17 Sec. 6. 1. A tax is hereby imposed on all retailers within a county

5-18 in which:

5-19 (a) The board of county commissioners of the county has not imposed

5-20 the maximum rate of tax that it is authorized to impose pursuant to

5-21 NRS 377B.100;

5-22 (b) The board of trustees of a county school district has applied for a

5-23 grant from the fund to assist school districts in financing capital

5-24 improvements pursuant to section 3 of this act; and

5-25 (c) The state board of examiners has approved the application by the

5-26 board of trustees.

5-27 2. The rate of the tax imposed by subsection 1 is the difference

5-28 between:

5-29 (a) The rate of tax that the board of county commissioners of the

5-30 county has imposed pursuant to NRS 377B.100; and

5-31 (b) The maximum rate of tax that the board of county commissioners

5-32 of the county is authorized to impose pursuant to NRS 377B.100,

5-33 but in no event may the rate imposed by subsection 1 exceed one-eighth

5-34 of 1 percent of the gross receipts of any retailer from the sale of all

5-35 tangible personal property sold at retail, or stored, used or otherwise

5-36 consumed, in the county.

5-37 Sec. 7. 1. The collection of the tax imposed by section 6 of this act

5-38 must be commenced on the first day of the first calendar quarter that

5-39 begins at least 30 days after the last condition in subsection 1 of section 6

5-40 of this act is met.

5-41 2. The tax must be administered, collected and distributed in the

5-42 manner set forth in chapter 374 of NRS.

6-1 3. The board of trustees of the school district shall transfer the

6-2 proceeds of the tax imposed by section 6 of this act from the county

6-3 school district fund to the fund described in NRS 354.611 which has been

6-4 established by the board of trustees. The money deposited in the fund

6-5 described in NRS 354.611 pursuant to this subsection must be accounted

6-6 for separately in that fund and must only be expended by the board of

6-7 trustees for the cost of the extraordinary maintenance, extraordinary

6-8 repair and extraordinary improvement of school facilities within the

6-9 county.

6-10 Sec. 8. Sections 23, 24, 25, 29 and 31 of chapter 516, Statutes of

6-11 Nevada 1997, at pages 2467, 2468, 2469 and 2470, respectively, are

6-12 hereby amended to read as follows:

6-13 Sec. 23. 1. There is hereby created the state planning

6-14 commission for the new construction, design, maintenance and

6-15 repair of school facilities. The membership of the commission

6-16 consists of 10 members selected as follows:

6-17 (a) Two members of the legislature appointed by the majority

6-18 leader of the senate, one of whom must represent a rural area of

6-19 this state;

6-20 (b) Two members of the legislature appointed by the speaker of

6-21 the assembly , one of whom must represent a rural area of this

6-22 state;

6-23 (c) The superintendent of public instruction;

6-24 (d) One member who is employed by a city and has substantial

6-25 experience in financial matters with respect to cities, appointed by

6-26 the Nevada League of Cities;

6-27 (e) One member who is employed by a county and has

6-28 substantial experience in financial matters with respect to

6-29 counties, appointed by the Nevada Association of Counties;

6-30 (f) One member who is employed by a school district and has

6-31 substantial experience in financial matters with respect to school

6-32 districts, appointed by the Nevada Association of School Boards;

6-33 (g) The director of the department of administration in his

6-34 capacity as chairman of the state public works board or his

6-35 designee; and

6-36 (h) The executive director of the department of taxation or his

6-37 designee.

6-38 2. The members of the commission shall elect a chairman from

6-39 among their members.

6-40 3. Except during a regular or special session of the legislature,

6-41 for each day or portion of a day during which a member of the

6-42 commission who is a legislator attends a meeting of the commission

7-1 or is otherwise engaged in the work of the commission, he is

7-2 entitled to receive the:

7-3 (a) Compensation provided for a majority of the members of the

7-4 legislature during the first 60 days of the preceding regular session;

7-5 (b) Per diem allowance provided for state officers and

7-6 employees generally; and

7-7 (c) Travel expenses pursuant to NRS 218.2207.

7-8 The compensation, per diem allowances and travel expenses of the

7-9 members of the commission who are legislators must be paid from

7-10 the legislative fund.

7-11 4. For each day or portion of a day during which a member of

7-12 the commission who is not a legislator attends a meeting of the

7-13 commission or is otherwise engaged in the work of the commission,

7-14 he is entitled to receive the per diem allowance and travel expenses

7-15 provided for state officers and employees generally, if the

7-16 legislature has made an appropriation or otherwise made available

7-17 money for this purpose.

7-18 Sec. 24. 1. The commission shall hold at least four meetings

7-19 annually and may hold additional meetings at the call of the

7-20 chairman.

7-21 2. The commission shall:

7-22 (a) Develop a plan pursuant to which each school district in

7-23 this state may adequately finance the costs of designing and

7-24 constructing new school facilities and maintaining and repairing

7-25 existing school facilities in the school district. The plan must

7-26 provide for the efficient use of resources in the design,

7-27 construction, maintenance and repair of school facilities.

7-28 (b) Review the number of hours required to transport pupils by

7-29 bus to and from school and the costs associated with that

7-30 transportation, and compare those costs to the costs that would be

7-31 incurred to build new school facilities or change the boundaries

7-32 of the zones within which pupils are transported to certain

7-33 schools.

7-34 3. The board of trustees of each school district shall:

7-35 (a) Comply with all requests by the commission for information,

7-36 including, without limitation, the projections for the enrollment of

7-37 pupils in a school district for the succeeding 10 years; and

7-38 (b) Otherwise cooperate with the commission in carrying out its

7-39 duties pursuant to this section.

7-40 Sec. 25. 1. The department of education shall provide

7-41 administrative support to the commission.

7-42 2. In carrying out its duties pursuant to subsection 1, the

7-43 department of education shall ensure that notice of the meetings

8-1 of the commission is provided to the director of the legislative

8-2 counsel bureau for publication with the agendas of scheduled

8-3 meetings of the legislative committees that are published by the

8-4 legislative counsel bureau.

8-5 Sec. 29. 1. There is hereby appropriated from the state

8-6 general fund to the state planning commission for the new

8-7 construction, design, maintenance and repair of school facilities

8-8 created pursuant to section 23 of this act the sum of $75,000 for use

8-9 by the state planning commission for:

8-10 (a) The carrying out of the duties set forth in section 24 of this

8-11 act; and

8-12 (b) Expenses relating to the operation of the state planning

8-13 commission.

8-14 2. Any remaining balance of the appropriation made by

8-15 subsection 1 must not be committed for expenditure after June 30,

8-16 2001, and reverts to the state general fund as soon as all payments

8-17 of money committed have been made.

8-18 Sec. 31. 1. This section and sections 1 to 7, inclusive, 9, 10,

8-19 22 to 25, inclusive, and 27 to 30, inclusive, of this act, become

8-20 effective upon passage and approval. Sections 22 to 25, inclusive,

8-21 of this act, expire by limitation on June 30, 2001.

8-22 2. Sections 11, 11.5, 13, 14, 14.5, 16, 20 and 21 of this act

8-23 become effective on August 1, 1997.

8-24 3. Sections 8, 12 and 15 of this act become effective on July 1,

8-25 1999.

8-26 4. Sections 17, 18 and 19 of this act become effective on

8-27 October 1, 1997.

8-28 Sec. 9. Section 2 of Senate Bill No. 501 of this session is hereby

8-29 amended to read as follows:

8-30 Sec. 2. NRS 350.020 is hereby amended to read as follows:

8-31 350.020 1. Except as otherwise provided by subsections 3

8-32 and 4, if a municipality proposes to issue or incur general

8-33 obligations, the proposal must be submitted to the electors of the

8-34 municipality at a special election called for that purpose or the next

8-35 general municipal election or general state election.

8-36 2. Such a special election may be held:

8-37 (a) At any time, including, without limitation, on the date of a

8-38 primary municipal election or a primary state election, if the

8-39 governing body of the municipality determines, by a unanimous

8-40 vote, that an emergency exists; or

8-41 (b) On the first Tuesday after the first Monday in June of an odd-

8-42 numbered year.

9-1 The determination made by the governing body is conclusive unless

9-2 it is shown that the governing body acted with fraud or a gross

9-3 abuse of discretion. An action to challenge the determination made

9-4 by the governing body must be commenced within 15 days after the

9-5 governing body’s determination is final. As used in this subsection,

9-6 "emergency" means any occurrence or combination of occurrences

9-7 which requires immediate action by the governing body of the

9-8 municipality to prevent or mitigate a substantial financial loss to the

9-9 municipality or to enable the governing body to provide an essential

9-10 service to the residents of the municipality.

9-11 3. If payment of a general obligation of the municipality is

9-12 additionally secured by a pledge of gross or net revenue of a project

9-13 to be financed by its issue, and the governing body determines, by

9-14 an affirmative vote of two-thirds of the members elected to the

9-15 governing body, that the pledged revenue will at least equal the

9-16 amount required in each year for the payment of interest and

9-17 principal, without regard to any option reserved by the municipality

9-18 for early redemption, the municipality may, after a public hearing,

9-19 incur this general obligation without an election unless, within 60

9-20 days after publication of a resolution of intent to issue the bonds, a

9-21 petition is presented to the governing body signed by not less than 5

9-22 percent of the registered voters of the municipality who together

9-23 with any corporate petitioners own not less than 2 percent in

9-24 assessed value of the taxable property of the municipality. Any

9-25 member elected to the governing body whose authority to vote is

9-26 limited by charter, statute or otherwise may vote on the

9-27 determination required to be made by the governing body pursuant

9-28 to this subsection. The determination by the governing body

9-29 becomes conclusive on the last day for filing the petition. For the

9-30 purpose of this subsection, the number of registered voters must be

9-31 determined as of the close of registration for the last preceding

9-32 general election and assessed values must be determined from the

9-33 next preceding final assessment roll. An authorized corporate

9-34 officer may sign such a petition whether or not he is a registered

9-35 voter. The resolution of intent need not be published in full, but the

9-36 publication must include the amount of the obligation and the

9-37 purpose for which it is to be incurred. Notice of the public hearing

9-38 must be published at least 10 days before the day of the hearing.

9-39 The publications must be made once in a newspaper of general

9-40 circulation in the municipality. When published, the notice of the

9-41 public hearing must be at least as large as 5 inches high by 4 inches

9-42 wide.

10-1 4. The board of trustees of a school district may issue general

10-2 obligation bonds which are not expected to result in an increase in

10-3 the existing property tax levy for the payment of bonds of the

10-4 school district without holding an election for each issuance of the

10-5 bonds if the qualified electors approve a question submitted by the

10-6 board of trustees that authorizes issuance of bonds for a period of

10-7 10 years after the date of approval by the voters. If the question is

10-8 approved, the board of trustees of the school district may issue the

10-9 bonds for a period of 10 years after the date of approval by the

10-10 voters, after obtaining the approval of the debt management

10-11 commission in the county in which the school district is located and,

10-12 in a county whose population is 100,000 or more, the approval of

10-13 the oversight panel for school facilities established pursuant to NRS

10-14 393.092 in that county, if the board of trustees of the school district

10-15 finds that the existing tax for debt service will at least equal the

10-16 amount required to pay the principal and interest on the outstanding

10-17 general obligations of the school district and the general obligations

10-18 proposed to be issued. The finding made by the board of trustees is

10-19 conclusive in the absence of fraud or gross abuse of discretion. As

10-20 used in this subsection, "general obligations" does not include

10-21 medium-term obligations issued pursuant to NRS 350.085 to

10-22 350.095, inclusive.

10-23 5. At the time of issuance of bonds authorized pursuant to

10-24 subsection 4, the board of trustees shall establish a reserve account

10-25 in its debt service fund for payment of the outstanding bonds of the

10-26 school district. The reserve account must be established and

10-27 maintained in an amount at least equal to the lesser of the amount of

10-28 principal and interest payments due on all of the outstanding bonds

10-29 of the school district in the next fiscal year or 10 percent of the

10-30 outstanding principal amount of the outstanding bonds of the school

10-31 district. If the amount in the reserve account falls below the amount

10-32 required by this subsection:

10-33 (a) The board of trustees shall not issue additional bonds

10-34 pursuant to subsection 4 until the reserve account is restored to the

10-35 level required by this subsection; and

10-36 (b) The board of trustees shall apply all of the taxes levied by the

10-37 school district for payment of bonds of the school district that are

10-38 not needed for payment of the principal and interest on bonds of the

10-39 school district in the current fiscal year to restore the reserve

10-40 account to the level required pursuant to this subsection.

10-41 6. A municipality may issue special or medium-term

10-42 obligations without an election.

11-1 Sec. 10. Section 26 of chapter 516, Statutes of Nevada 1997,

11-2 at page 2469, and sections 3 and 15 of Senate Bill No. 501 of this

11-3 session are hereby repealed.

11-4 Sec. 11. At the request of the director of the department of

11-5 administration, the state board of finance shall issue general obligation

11-6 bonds of the State of Nevada in a face amount not exceeding $16,000,000

11-7 pursuant to the State Securities Law. The proceeds of the bonds remaining

11-8 after the payment of the costs of issuance of the bonds must be deposited in

11-9 the fund to assist school districts in financing capital improvements, created

11-10 pursuant to section 2 of this act, and used by the director of the department

11-11 of administration pursuant to section 3 of this act to make grants to school

11-12 districts for capital improvements.

11-13 Sec. 12. 1. The state controller may advance temporarily from the

11-14 state general fund, upon the approval of the chief of the budget division of

11-15 the department of administration, to the fund to assist school districts in

11-16 financing capital improvements created pursuant to section 2 of this act,

11-17 until the date on which bonds authorized by section 11 of this act are sold,

11-18 amounts necessary to facilitate the making of grants to school districts

11-19 pursuant to section 3 of this act. The state controller shall not advance more

11-20 than the face amount of the bonds authorized to be issued. The advanced

11-21 amounts must be repaid immediately to the state general fund upon the sale

11-22 of the bonds.

11-23 2. The chief of the budget division of the department of administration

11-24 shall notify the state controller and the fiscal analysis division of the

11-25 legislative counsel bureau of the approval of an advance from the state

11-26 general fund to the fund to assist school districts in financing capital

11-27 improvements pursuant to subsection 1.

11-28 Sec. 13. This act becomes effective on July 1, 1999.