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 to 12, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 12, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 and

1-5 4 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Committee" means the legislative committee on education.

1-7 Sec. 4. "Fund" means the rural education fund created pursuant to

1-8 section 5 of this act.

1-9 Sec. 5. 1. The rural education fund is hereby created in the state

1-10 treasury, to be administered by the committee. All money received and

2-1 held by the state treasurer for the purpose of the fund must be deposited

2-2 in the fund.

2-3 2. The money in the fund must be invested as the money in other

2-4 state funds is invested. All interest and income earned on the money in

2-5 the fund must be credited to the fund and accounted for separately with

2-6 the money that is accounted for separately pursuant to subsection 2 of

2-7 section 9 of this act.

2-8 3. The committee shall grant allocations of money from the fund to

2-9 school districts whose applications have been approved pursuant to

2-10 section 8 of this act.

2-11 4. Claims against the fund must be paid as other claims against the

2-12 state are paid.

2-13 5. The committee may use not more than $2,500 of the money in the

2-14 fund each calendar year to pay the administrative expenses to oversee the

2-15 school districts whose applications have been approved pursuant to

2-16 section 8 of this act for that year.

2-17 Sec. 6. 1. Except as otherwise provided in this subsection, the state

2-18 board of finance shall issue general obligation bonds of the State of

2-19 Nevada in the amount of $1,000,000 to generate the amount to be

2-20 allocated by the committee for each calendar year and to pay the

2-21 expenses related to the issuance of the bonds. The state board of finance

2-22 may issue the bonds for more than 1 calendar year as it determines

2-23 appropriate. The expenses related to the issuance of bonds pursuant to

2-24 this section must be paid from the proceeds of the bonds and must not

2-25 exceed 2 percent of the face amount of the bonds sold.

2-26 2. No public debt is created, within the meaning of section 3 of

2-27 article 9 of the constitution of the State of Nevada, until the issuance of

2-28 the bonds.

2-29 3. The proceeds from the sale of the bonds issued pursuant to this

2-30 section, after deducting the expenses related to the issuance of the bonds,

2-31 must be deposited with the state treasurer for credit to the fund.

2-32 4. The provisions of the State Securities Law, contained in chapter

2-33 349 of NRS, apply to the issuance of bonds pursuant to this section.

2-34 5. The committee shall notify the state board of finance of the total

2-35 amount of money that it grants to school districts for each year.

2-36 Sec. 7. 1. A school district is eligible to receive an allocation from

2-37 the fund if the school district has a total enrollment of 2,100 pupils or

2-38 less, calculated pursuant to NRS 387.1233, on the last day of the first

2-39 month of the school year.

2-40 2. Except as otherwise provided in section 11 of this act, if a school

2-41 district has a total enrollment:

2-42 (a) Of 600 pupils or less, calculated pursuant to NRS 387.1233, on the

2-43 last day of the first month of the school year, the school district is eligible

3-1 to receive an allocation from the fund of not more than $300,000 for the

3-2 year in which the school district is eligible for an allocation.

3-3 (b) Of at least 601 pupils but not more than 1,300 pupils, calculated

3-4 pursuant to NRS 387.1233, the school district is eligible to receive an

3-5 allocation from the fund of not more than $500,000 for the year in which

3-6 the school district is eligible for an allocation.

3-7 (c) Of at least 1,301 pupils but not more than 2,100 pupils, calculated

3-8 pursuant to NRS 387.1233, the school district is eligible to receive an

3-9 allocation from the fund of not more than $700,000 for the year in which

3-10 the school district is eligible for an allocation.

3-11 3. On or before September 1 of each year, the committee shall select

3-12 two school districts from the school districts that are described in

3-13 subsection 1 to apply for an allocation from the fund for the immediately

3-14 succeeding calendar year. The committee shall establish criteria for

3-15 determining which two school districts will be selected. The committee

3-16 shall select the two school districts based upon the financial needs of the

3-17 school districts and any additional criteria established by the committee.

3-18 A school district that receives an allocation is not eligible to apply for

3-19 another allocation from the fund until the other school districts that are

3-20 eligible have applied for initial allocations from the fund. The committee

3-21 may appoint a subcommittee of its members to select the two school

3-22 districts that may apply each year.

3-23 Sec. 8. 1. On or before October 1 of each year, a school district

3-24 that has been selected by the committee, or subcommittee, if any, may

3-25 submit an application to the committee for an allocation from the fund.

3-26 Such an application must be endorsed by the board of trustees of the

3-27 school district. Upon receipt of such an application, the committee shall

3-28 review the application. The committee may appoint a subcommittee of its

3-29 members to review applications pursuant to this section.

3-30 2. An application must include a description of the proposed project

3-31 for which the school district requests an allocation and the financial

3-32 costs of the project. A proposed project may include more than one

3-33 phase, component or purpose for the use of the money. The committee

3-34 may approve all the proposals set forth in the application or select which

3-35 proposals it will approve for funding.

3-36 3. An allocation may be requested to provide financial support for:

3-37 (a) The existing financial needs and deficiencies of the school district

3-38 relating to the repair, maintenance and improvement of school facilities

3-39 and buildings that are necessary to comply with all applicable laws and

3-40 regulations of this state and the Federal Government, including, without

3-41 limitation, the Americans with Disabilities Act of 1990, 42 U.S.C. §§

3-42 12101 et seq., fire codes and electrical codes;

4-1 (b) Professional development of teachers and other educational

4-2 personnel that would not be carried out if the school district does not

4-3 receive an allocation;

4-4 (c) Special education if money is otherwise unavailable for the school

4-5 district to satisfy local, state or federal requirements relating to the

4-6 special education of pupils with disabilities;

4-7 (d) Advancements in educational technology which are part of an

4-8 existing educational technology plan, including, without limitation,

4-9 contracts for technical support and other related professional assistance;

4-10 (e) Any other project that will provide a direct educational benefit, as

4-11 demonstrated by the applicant; or

4-12 (f) Any combination of the purposes listed in this section.

4-13 4. The committee shall, if necessary, make recommendations to an

4-14 applicant concerning the proposals contained in the application.

4-15 5. The committee shall approve an application if the committee

4-16 determines that the proposed project qualifies for an allocation pursuant

4-17 to subsection 3. The committee shall not approve an application that

4-18 proposes to use an allocation to pay the costs of construction for new

4-19 school buildings or facilities. The committee shall specifically set forth

4-20 each proposal that it approves for inclusion in the project. The committee

4-21 shall give priority of funding to an application that proposes to use an

4-22 allocation for the purposes set forth in paragraph (a) of subsection 3.

4-23 6. A school district that receives an allocation shall not use the

4-24 money to:

4-25 (a) Settle or arbitrate disputes or negotiate settlements between an

4-26 organization that represents licensed employees of the school district and

4-27 the school district;

4-28 (b) Pay the salaries or benefits of the employees of the school district;

4-29 or

4-30 (c) Pay the costs of construction for new school buildings or facilities.

4-31 Sec. 9. 1. On or before December 1 of each year, the committee

4-39 separately.

4-40 Sec. 10. 1. The first allocation to a school district whose

4-41 application has been approved must not exceed an amount equal to 100

4-42 percent of the total cost of the project approved by the committee or the

5-1 amount that the school district is eligible to receive pursuant to

5-2 subsection 2 of section 7 of this act, whichever is less.

5-3 2. Except as otherwise provided in subsection 3, if a school district

5-4 submits an application after its first allocation, the total allocation to the

5-5 school district must not exceed an amount equal to 80 percent of the total

5-6 cost of the project approved by the committee or of the amount that the

5-7 school district is eligible to receive pursuant to subsection 2 of section 7

5-8 of this act, whichever is less.

5-9 3. Except as otherwise provided in this subsection, if a school district

5-10 demonstrates to the satisfaction of the committee that the school district

5-11 has committed a matching sum of at least 20 percent of the total cost of

5-12 the project or at least 20 percent of the total amount that the school

5-13 district is eligible to receive pursuant to subsection 2 of section 7 of this

5-14 act from money available to the school district, including, without

5-15 limitation, money available from the issuance of bonds, the total

5-16 allocation must not exceed an amount equal to 100 percent of the total

5-17 cost of the project or the amount that the school district is eligible to

5-18 receive pursuant to subsection 2 of section 7 of this act, whichever is less.

5-19 If a school district demonstrates to the satisfaction of the committee that

5-20 the school district is unable to commit a matching sum of at least 20

5-21 percent of the total cost or amount but has committed a matching sum of

5-22 at least 10 percent, the committee may, based upon the financial needs

5-23 and circumstances of the school district, allocate, in addition to the

5-24 amount that the school district receives pursuant to subsection 2, a sum

5-25 of money matching the percentage that the school district was able to

5-26 commit.

5-27 Sec. 11. Notwithstanding the provisions of sections 7 and 10 of this

5-28 act, if there is a balance in the account of money that is accounted for

5-29 separately pursuant to subsection 2 of section 5 of this act or subsection 2

5-30 of section 9 of this act, the committee may grant an additional allocation

5-31 to a school district whose application for an allocation is approved upon

5-32 a determination by the committee that the total cost of the project for

5-33 which the application was approved exceeds the amount that the school

5-34 district is eligible to receive pursuant to subsection 2 of section 7 of this

5-35 act. After the first allocation to a school district pursuant to subsection 1

5-36 of section 10 of this act, an additional allocation pursuant to this section

5-37 must not be granted to a school district that does not commit a matching

5-38 sum pursuant to subsection 3 of section 10 of this act unless the

5-39 committee determines that the financial needs and circumstances of the

5-40 school district warrant an additional allocation.

5-41 Sec. 12. 1. A school district that receives an allocation of money

5-42 from the fund shall submit periodic reports of progress to the committee

5-43 in the time and manner specified by the committee. Each report must

6-1 describe the progress of the project for which the allocation was made,

6-2 the financial costs incurred by the school district for the project and the

6-3 management of the money allocated to the school district. The committee

6-4 shall, if necessary, make recommendations to the school district

6-5 concerning the progress of the project and the management of the money

6-6 by the school district.

6-7 2. A school district shall submit a final report after completion of a

6-8 project for which an allocation was made in the time and manner

6-9 specified by the committee. The final report must include a description of

6-10 the completed project and the total costs incurred by the school district

6-11 for the project.

6-12 Sec. 13. As soon as practicable after July 1, 1999, the state board of

6-13 finance shall issue the general obligation bonds required by section 6 of this

6-14 act.

6-15 Sec. 14. This act becomes effective on July 1, 1999.