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. As used in sections 2 to 19, inclusive, of this act, unless the

1-2 context otherwise requires, the words and terms defined in sections 2 to 14,

1-3 inclusive, of this act, have the meanings ascribed to them in those sections.

1-4 Sec. 2. "Acquisition" includes the opening, laying out, securing,

1-5 establishment, installation, construction or reconstruction, or the purchase,

1-6 lease, gift, grant, endowment, bequest, devise, transfer, assignment, option

1-7 to purchase, other contract or other acquisition, or any combination thereof,

1-8 from the Federal Government, this state or any person, or any combination

1-9 thereof, of any property pertaining to the project, or an interest therein.

1-10 Sec. 3. "Board" means the board of regents of the University of

1-11 Nevada.

1-12 Sec. 4. "Cost of the project" means all or any part designated by the

1-13 board of the cost of the project, or interest therein, which cost at the option

1-14 of the board may include all or any part of the incidental costs pertaining to

1-15 the project, including, without limitation:

2-1 1. Preliminary expenses advanced by the university or the board from

2-2 any money available therefor, or advanced by this state, the Federal

2-3 Government, or from any other source, with the approval of the board, or

2-4 any combination thereof;

2-5 2. The costs in the making of surveys, audits, preliminary plans, other

2-6 plans, specifications, estimates of costs and other preliminaries;

2-7 3. The costs of premiums on builders’ risk insurance and performance

2-8 bonds, or a reasonably allocable share thereof;

2-9 4. The costs of appraising and printing, and estimates, advice and

2-10 services of engineers, architects, financial consultants, attorneys at law,

2-11 clerical help, or other agents or employees;

2-12 5. The costs of making, publishing, posting, mailing and otherwise

2-13 giving any notice in connection with the project, the filing or recordation of

2-14 instruments, the taking of options, the insurance of bonds and other

2-15 securities, and bank fees and expenses;

2-16 6. The costs of contingencies;

2-17 7. The costs of the capitalization with proceeds of bonds or other

2-18 securities issued pursuant to this act of any operation and maintenance

2-19 expenses pertaining to the project and of any interest on bonds or other

2-20 securities for any period not exceeding the period estimated by the board to

2-21 complete the project plus 1 year, of any discount on bonds or other

2-22 securities, and of any reserves for the payment of the principal of and

2-23 interest on the bonds or other securities, of any replacement expenses, and

2-24 of any other cost of issuance of the bonds or other securities;

2-25 8. The costs of amending any resolutions or other instruments

2-26 authorizing the issuance of securities pursuant to this act;

2-27 9. The costs of funding any short-term financing, construction loans

2-28 and other temporary loans of not exceeding 5 years pertaining to the project

2-29 and of the incidental expenses incurred in connection with those loans; and

2-30 10. All other expenses necessary or desirable and pertaining to the

2-31 project, as estimated or otherwise ascertained by the board.

2-32 Sec. 5. "Equipment" means the furnishing of all related or appurtenant

2-33 machinery, furnishings, apparatus, paraphernalia and other gear, or any

2-34 combination thereof, pertaining to the project or any interest therein.

2-35 Sec. 6. "Facilities" means buildings, structures or other income-

2-36 producing facilities from the operation of which or in connection with

2-37 which pledged revenues for the payment of any bonds or other securities

2-38 issued pursuant to this act are derived, including, without limitation, any

2-39 facilities to be acquired with the proceeds of the bonds or securities issued

2-40 pursuant to this act.

2-41 Sec. 7. "Improvement" includes the extension, widening, lengthening,

2-42 betterment, alteration, reconstruction or other major improvement, or any

2-43 combination thereof, of any property pertaining to the project, or an interest

3-1 therein, but does not mean renovation, reconditioning, patching, general

3-2 maintenance or other minor repair.

3-3 Sec. 8. "Net pledged revenue" means pledged revenue without

3-4 deduction of operation and maintenance expenses, except as otherwise

3-5 provided in section 11 of this act.

3-6 Sec. 9. "Operation and maintenance expenses" means all reasonable

3-7 and necessary current expenses of the university or the board, or both, paid

3-8 or accrued, of operating, maintaining and repairing the facilities pertaining

3-9 to the pledged revenue for the payment of the bonds or other securities

3-10 issued pursuant to this act. The term may include at the board’s option,

3-11 except as limited by contract or law, without limitation:

3-12 1. Legal and overhead expenses of the various university departments

3-13 directly related and reasonably allocable to the administration of the

3-14 facilities;

3-15 2. Fidelity bond and insurance premiums pertaining to the facilities, or

3-16 a reasonably allocable share of a premium of any blanket bond or policy

3-17 pertaining to the facilities;

3-18 3. The reasonable charges of any paying agent, or commercial bank,

3-19 trust bank or other depository bank pertaining to any securities issued by

3-20 the university or by the board or pertaining to the facilities;

3-21 4. Contractual services, professional services, salaries, administrative

3-22 expenses, and costs of labor pertaining to the facilities;

3-23 5. The costs incurred by the board in the collection of all or any part of

3-24 the pledged revenue, including, without limitation, revenue pertaining to

3-25 the facilities;

3-26 6. Any costs of utility services furnished to the facilities by the

3-27 university or otherwise; and

3-28 7. Reasonable allowances for the depreciation of furniture and

3-29 equipment for the facilities.

3-30 Sec. 10. The term "operation and maintenance expenses" does not

3-31 include:

3-32 1. Any allowance for depreciation, except as otherwise provided in

3-33 subsection 7 of section 9 of this act;

3-34 2. Any costs of reconstruction, improvements, extensions or

3-35 betterments;

3-36 3. Any accumulation of reserves for capital replacements;

3-37 4. Any reserves for the operation, maintenance or repair of the

3-38 facilities;

3-39 5. Any allowance for the redemption of any bond or other security

3-40 evidencing a loan or other obligation or the payment of any interest

3-41 thereon;

4-1 6. Any liabilities incurred in the acquisition or improvement of any

4-2 property comprising the project or any existing facilities, or any

4-3 combination thereof; and

4-4 7. Any other ground of legal liability not based on contract.

4-5 Sec. 11. 1. "Pledged revenue" means a source of revenue arising

4-6 from the gross revenue derived from or otherwise pertaining to the

4-7 operation of one, all, or any combination of the facilities of the Desert

4-8 Research Institute, including those relating to the project, after the

4-9 deduction of the expenses of operation and maintenance of the facilities

4-10 pertaining to that source or revenue.

4-11 2. The term includes:

4-12 (a) Grants, whether or not conditional, from the Federal Government for

4-13 the payment of any securities requirements; and

4-14 (b) Net revenue derived from the operation of any facilities of the Desert

4-15 Research Institute, or from any other available source, to which are

4-16 extended a pledge and lien for the payment of the securities issued pursuant

4-17 to this act or otherwise issued after the effective date of this act.

4-18 Sec. 12. "Project" means the planning, design, acquisition,

4-19 improvement and equipment of a building for the Desert Research Institute

4-20 in the vicinity of its existing campus in the environs of Las Vegas, Nevada,

4-21 as required or desired by the university.

4-22 Sec. 13. "Securities" means notes, warrants, bonds, temporary bonds

4-23 and interim debentures.

4-24 Sec. 14. "University" means the University and Community College

4-25 System of Nevada.

4-26 Sec. 15. 1. The board may perform such acts, on behalf of and in the

4-27 name of the university, as are consistent with the provisions of this act and

4-28 other applicable law, to carry out the project.

4-29 2. To pay for the cost of the project the board may:

4-30 (a) Issue bonds and other securities of the university:

4-31 (1) In a total principal amount of not more than $8,600,000;

4-32 (2) In one or more series at any time, or from time to time, as

4-33 determined by the board, within 5 years after the effective date of this act;

4-34 and

4-35 (3) Consisting of special obligations of the university payable from

4-36 any combination of net pledged revenue, secured by a pledge thereof and a

4-37 lien thereon, subject to existing contractual limitations;

4-38 (b) Employ legal, fiscal and other expert services with any available

4-39 money, including, without limitation, the proceeds of securities issued

4-40 pursuant to this act; and

4-41 (c) Exercise the powers provided in NRS 396.809 to 396.885, inclusive,

4-42 except as otherwise provided in this act.

5-1 3. This act does not prohibit the board from funding, refunding or

5-2 reissuing any securities of the university or the board at any time pursuant

5-3 to NRS 396.809 to 396.885, inclusive.

5-4 Sec. 16. Upon the request of the board, the state public works board

5-5 may delegate to the board any authority concerning the project that is

5-6 granted to the state public works board pursuant to chapter 341 of NRS.

5-7 Sec. 17. The legislature intends that the provisions of this act, being

5-8 necessary to secure and preserve the public health, safety, convenience and

5-9 welfare, be liberally construed to accomplish its purposes.

5-10 Sec. 18. If any provision of this act, or the application of this act to

5-11 any person, thing or circumstance is held invalid, that invalidity does not

5-12 affect any provision or application, and to this end the provisions of this act

5-13 are declared to be severable.

5-14 Sec. 19. The provisions of this act are supplemental to and do not limit

5-15 any other law of this state, except that the provisions of this act prevail over

5-16 the inconsistent provisions of any other law of this state. No other law of

5-17 this state concerning the issuance of securities applies to the issuance of

5-18 securities pursuant to this act, except that the provisions of NRS 396.809 to

5-19 396.885, inclusive, that are consistent with this act apply as if the securities

5-20 were issued pursuant to those sections.

5-21 Sec. 20. This act becomes effective upon passage and approval.