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 355 of NRS is hereby amended by adding thereto a

1-3 1. The governing body of a city or county whose population is

1-4 100,000 or more may lend securities from its investment portfolio if:

1-5 (a) The investment portfolio has a value of at least $100,000,000;

1-6 (b) The treasurer of the city or county:

1-7 (1) Establishes a policy for investment that includes provisions

1-8 which set forth the procedures to be used to lend securities pursuant to

1-9 this section; and

1-10 (2) Submits the policy established pursuant to subparagraph (1) to

1-11 the city or county manager and prepares and submits to the city or

1-12 county manager a monthly report that sets forth the securities that have

1-13 been lent pursuant to this section and any other information relating

1-14 thereto, including, without limitation, the terms of each agreement for

1-15 the lending of those securities; and

1-16 (c) The governing body receives collateral from the borrower in the

1-17 form of cash or marketable securities that are:

2-1 (1) Authorized pursuant to NRS 355.170, if the collateral is in the

2-2 form of marketable securities; and

2-3 (2) At least 102 percent of the value of the securities borrowed.

2-4 2. The governing body of a city or consolidated municipality whose

2-5 population is 50,000 or more but less than 100,000 may lend securities

2-6 from its investment portfolio if:

2-7 (a) The investment portfolio has a value of at least $50,000,000;

2-8 (b) The governing body is currently authorized to lend securities

2-9 pursuant to subsection 5;

2-10 (c) The treasurer of the city or consolidated municipality:

2-11 (1) Establishes a policy for investment that includes provisions

2-12 which set forth the procedures to be used to lend securities pursuant to

2-13 this section; and

2-14 (2) Submits the policy established pursuant to subparagraph (1) to

2-15 the manager of the city or consolidated municipality and prepares and

2-16 submits to the manager of the city or consolidated municipality a

2-17 monthly report that sets forth the securities that have been lent pursuant

2-18 to this section and any other information relating thereto, including,

2-19 without limitation, the terms of each agreement for the lending of those

2-20 securities; and

2-21 (d) The governing body receives collateral from the borrower in the

2-22 form of cash or marketable securities that are:

2-23 (1) Authorized pursuant to NRS 355.170, if the collateral is in the

2-24 form of marketable securities; and

2-25 (2) At least 102 percent of the value of the securities borrowed.

2-26 3. The governing body of a city, county or consolidated municipality

2-27 may enter into such contracts as are necessary to extend and manage

2-28 loans pursuant to this section.

2-29 4. Any investments made with collateral received pursuant to

2-30 subsection 1 or 2 must mature not later than 90 days after the date on

2-31 which the securities are lent.

2-32 5. The governing body of a city or consolidated municipality whose

2-33 population is 50,000 or more but less than 100,000 shall not lend

2-34 securities from its investment portfolio unless it has been authorized to

2-35 do so by the state board of finance. The state board of finance shall adopt

2-36 regulations that establish minimum standards for granting authorization

2-37 pursuant to this subsection. Such an authorization is valid for 2 years

2-38 and may be renewed by the state board of finance for additional 2-year

2-39 periods.

2-40 Sec. 2. NRS 355.167 is hereby amended to read as follows:

2-41 355.167 1. The local government pooled investment fund is hereby

2-42 created as an agency fund to be administered by the state treasurer.

3-1 2. Any local government, as defined in NRS 354.474, may deposit its

3-2 money with the state treasurer for credit to the fund for purposes of

3-3 investment.

3-4 3. The state treasurer may invest the money of the fund:

3-5 (a) In securities which have been authorized as investments for a local

3-6 government by any provision of NRS or any special law.

3-7 (b) In time certificates of deposit in the manner provided by NRS

3-8 356.015.

3-9 4. The state treasurer may lend securities in which he invests

3-10 pursuant to subsection 3 or NRS 355.165 if he receives collateral from the

3-11 borrower in the form of cash or marketable securities that are:

3-12 (a) Acceptable to the state treasurer; and

3-13 (b) At least 102 percent of the value of the securities borrowed.

3-14 The state treasurer may enter into such contracts as are necessary to

3-15 extend and manage loans pursuant to this subsection.

3-16 5. Each local government [which] that elects to deposit money with the

3-17 state treasurer for such an investment must:

3-18 (a) Upon the deposit, inform him in writing how long a period the money

3-19 is expected to be available for investment.

3-20 (b) At the end of the period, notify him in writing whether it wishes to

3-21 extend the period.

3-22 [5.] 6. If a local government wishes to withdraw any of its money

3-23 before the end of the period of investment, it must make a written request to

3-24 the state treasurer. Whenever he is required to sell or liquidate invested

3-25 securities because of a request for early withdrawal, any penalties or loss of

3-26 interest incurred must be charged against the deposit of the local

3-27 government which requested the early withdrawal.

3-28 [6.] 7. All interest received on money of the fund must be deposited for

3-29 credit to the fund.

3-30 [7.] 8. The state treasurer may assess reasonable charges against the

3-31 fund for reimbursement of the expenses which he incurs in administering the

3-32 fund. The amount of the assessments must be transferred to an account

3-33 within the state general fund for use of the state treasurer in carrying out the

3-34 provisions of this section.

3-35 [8.] 9. At the end of each quarter of each fiscal year, the state treasurer

3-36 shall:

3-37 (a) Compute the proportion of the total deposits in the fund which were

3-38 attributable during the quarter to each local government;

3-39 (b) Apply that proportion to the total amount of interest received during

3-40 the quarter on invested money of the fund; and

3-41 (c) Pay to each participating local government or reinvest upon its

3-42 instructions its proportionate share of the interest, as computed pursuant to

4-1 paragraphs (a) and (b), less the proportionate amounts of the assessments

4-2 for the expenses of administration.

4-3 [9.] 10. The state treasurer may adopt reasonable regulations to carry

4-4 out the provisions of this section.

4-5 Sec. 3. NRS 355.172 is hereby amended to read as follows:

4-6 355.172 1. [Any] Except as otherwise provided in section 1 of this

4-32 securities.

4-33 Sec. 4. Chapter 319 of NRS is hereby amended by adding thereto a

4-41 extend and manage loans pursuant to this section.

5-1 Sec. 5. Chapter 349 of NRS is hereby amended by adding thereto a

5-2 new section to read as follows:

5-3 1. The director may lend any securities in which he invests pursuant

5-4 to NRS 349.855 if he receives collateral from the borrower in the form of

5-5 cash or marketable securities that are:

5-6 (a) Acceptable to the director; and

5-7 (b) At least 102 percent of the value of the securities borrowed.

5-8 2. The director may enter into such contracts as are necessary to

5-9 extend and manage loans pursuant to this section.