CHAPTER........

Whereas, In reliance on Assembly Bill No. 113 of the 1995 legislative

session, the Tricounty Railway Commission of Carson City and Lyon and

Storey counties has been working diligently to obtain the required $15

million from public and private sources to support the establishment of a

railroad line similar to the former Virginia & Truckee Railroad from

Virginia City through the Gold Hill area to Carson City; and

Whereas, This historic reconstruction has wide public support and will

benefit the entire Western Nevada region; and

Whereas, It is important that the State of Nevada honor its 1995

commitment to contribute one-fourth of the costs of this project contingent

upon the success of the local effort to raise the remainder; and

Whereas, If current financial conditions require the withdrawal of the

1995 appropriation, then the State of Nevada must find an alternative

method to keep its commitment to this economic development project;

now, therefore,

Section 1. 1. Except as otherwise provided in subsection 3, the State

Board of Finance shall issue general obligation bonds of the State of

Nevada in the face amount of not more than $5,000,000. The proceeds of

the bonds must be allocated for the establishment of a railroad line similar

to the former Virginia & Truckee Railroad from Virginia City through the

Gold Hill area to Carson City, including, without limitation:

(a) Acquisition of the right of way necessary for the railway and any

appurtenances thereto;

(b) Construction of the track, including any necessary preparation of the

underlying surface; and

(c) Purchase or other acquisition of any associated equipment.

2. The expenses related to the issuance of bonds pursuant to this

section must be paid from the proceeds of the bonds, and must not exceed 2

percent of the face amount of the bonds sold.

3. The State Board of Finance shall not issue the general obligation

bonds pursuant to subsection 1 unless on or before July 1, 2003:

(a) The Tricounty Railway Commission has received commitments for

at least $15,000,000 from other public or private sources, or both, for the

establishment of the railroad line.

(b) The Tricounty Railway Commission has entered into a written

agreement with the State Board of Examiners to repay the amount of these

bonds by transferring to the State Treasurer at least 6 percent of the price

charged or $1 per ticket sold, whichever is greater, per person to ride upon

the railroad line once it is completed until $5,000,000 has been repaid to

the State Treasurer. The agreement must set forth the terms of repayment.

(c) The State Board of Examiners has received a first security interest in

favor of the State of Nevada upon the railroad track, the right of way

acquired and all equipment and other assets of the Tricounty Railway

Commission to the extent necessary, as determined by the State Board of

Examiners, to secure the repayment of the $5,000,000.

4. The provisions of the State Securities Law, contained in chapter 349

of NRS, apply to the issuance of bonds pursuant to this section.

Sec. 2. Section 2 of chapter 676, Statutes of Nevada 1995, at page

2589, is hereby amended to read as follows:

Sec. 3. This act becomes effective upon passage and approval.

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