Assembly Bill No. 300–Committee on Ways and Means

 

(On Behalf of State Planning Commission for the
New Construction, Design, Maintenance and
Repair of School Facilities)

 

March 7, 2001

____________

 

Referred to Committee on Ways and Means

 

SUMMARY—Creates revolving fund for construction and repair of school buildings and facilities and makes related appropriations. (BDR 34‑1003)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Contains Appropriation not included in Executive Budget.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to governmental administration; creating a revolving fund for the construction, repair and renovation of school buildings and facilities; authorizing boards of trustees of school districts to apply to the director of the department of administration for a loan or other financial assistance from the revolving fund; making appropriations; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 387 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 6, inclusive, of this act.

1-3    Sec. 2.  As used in sections 2 to 6, inclusive, of this act, unless the

1-4  context otherwise requires, “revolving fund” means the fund for the

1-5  construction, repair and renovation of school buildings and facilities

1-6  created pursuant to section 3 of this act.

1-7    Sec. 3.  1.  The fund for the construction, repair and renovation of

1-8  school buildings and facilities is hereby created in the state treasury as a

1-9  revolving fund, to be administered by the director of the department of

1-10  administration.

1-11    2.  The money in the revolving fund must be invested as other state

1-12  funds are invested. All interest and income earned on the money in the

1-13  revolving fund must be credited to the revolving fund. Any money

1-14  remaining in the revolving fund at the end of a fiscal year does not revert

2-1  to the state general fund and the balance in the fund must be carried

2-2  forward.

2-3    3.  All payments of principal and interest on all the loans made to a

2-4  school district from the revolving fund and all proceeds from the sale,

2-5  refunding or prepayment of acquired obligations of a school district or

2-6  loans made in carrying out the purposes of the revolving fund must be

2-7  deposited in the state treasury for credit to the revolving fund.

2-8    4.  Claims against the revolving fund must be paid as other claims

2-9  against the state are paid.

2-10    5.  The director of the department of administration may accept gifts

2-11  and grants from any source for deposit in the revolving fund.

2-12    Sec. 4.  1.  The director of the department of administration may

2-13  use the money in the revolving fund, including repayments of principal

2-14  and interest on loans made from the revolving fund, and interest and

2-15  income earned on money in the revolving fund, only to:

2-16    (a) Make loans at or below market rate to boards of trustees of school

2-17  districts for the construction, repair and renovation of school buildings

2-18  and facilities.

2-19    (b) Buy or refinance at or below market rate the obligations of school

2-20  districts, if the project for which the obligations were incurred is for a

2-21  purpose set forth in NRS 387.335.

2-22    (c) Guarantee or purchase insurance for obligations of school

2-23  districts if such action would improve access to credit or reduce the rate

2-24  of interest applicable to the obligation.

2-25    (d) Provide or guarantee loans, or as a source of reserve and security

2-26  for leveraged loans.

2-27    2.  The total amount of loans and other financial assistance provided

2-28  to school districts in a single biennium must not exceed one-half of the

2-29  total amount of money in the revolving fund at the beginning of that

2-30  biennium.

2-31    Sec. 5.  1.  The board of trustees of a school district may submit an

2-32  application to the director of the department of administration for a loan

2-33  or other financial assistance from the revolving fund. The application

2-34  must include:

2-35    (a) If the application is for a loan, a written description of the

2-36  construction, repair or renovation project for which the loan will be

2-37  used; and

2-38    (b) A written description of the financial status of the school district,

2-39  including, without limitation, the criteria for approval set forth in

2-40  paragraphs (a), (b) and (c) of subsection 2.

2-41    2.  The director of the department of administration, in consultation

2-42  with the department of education, the department of taxation and the

2-43  state public works board, shall determine whether to approve an

2-44  application submitted pursuant to subsection 1 based upon:

2-45    (a) The money and other resources that are available to the school

2-46  district to finance the construction, repair and renovation of school

2-47  buildings and facilities;

2-48    (b) The discrepancy, if any, between the growth of assessed valuation

2-49  of taxable property in the county in which the school district is located

3-1  and the growth of the total number of pupils enrolled in the school

3-2  district;

3-3    (c) The remaining allowable increase in ad valorem taxes available to

3-4  the school district;

3-5    (d) If the application is for a loan, the proposed use of the loan,

3-6  including, without limitation, whether the money will be used in an

3-7  efficient manner; and

3-8    (e) The needs of the school district.

3-9    3.  The director of the department of administration shall, within the

3-10  limits of money available for use in the revolving fund, make loans and

3-11  provide other financial assistance to school districts whose applications

3-12  have been approved based upon the criteria set forth in paragraphs (a) to

3-13  (e), inclusive, of subsection 2. If the director makes a loan from the

3-14  revolving fund, he shall ensure that the contract of the loan includes all

3-15  terms and conditions for repayment of the loan.

3-16    4.  The director of the department of administration:

3-17    (a) Shall adopt regulations that prescribe the annual deadline for

3-18  submission of an application to the director of the department of

3-19  administration by the board of trustees of a school district that desires to

3-20  receive a loan or other financial assistance from the revolving fund.

3-21    (b) May adopt other regulations as he deems necessary to carry out

3-22  the provisions of sections 2 to 6, inclusive, of this act.

3-23    Sec. 6.  The director of the department of administration may employ

3-24  any legal, fiscal and any other expert services necessary to carry out his

3-25  duties pursuant to sections 2 to 6, inclusive, of this act.

3-26    Sec. 7.  1.  There is hereby appropriated from the state general fund

3-27  to the fund for the construction, repair and renovation of school buildings

3-28  and facilities created pursuant to section 3 of this act, the sum of

3-29  $3,750,000.

3-30    2.  The director of the department of administration shall use the money

3-31  appropriated by subsection 1 to make loans of money and provide other

3-32  financial assistance to school districts pursuant to sections 2 to 6, inclusive,

3-33  of this act.

3-34    Sec. 8.  1.  There is hereby appropriated from the state general fund

3-35  to the fund to assist school districts in financing capital improvements

3-36  created pursuant to NRS 387.333, the sum of $1,250,000.

3-37    2.  The director of the department of administration shall use the money

3-38  appropriated by subsection 1 to provide grants of money to school districts

3-39  in accordance with NRS 387.3335 based upon the need of each school

3-40  district whose application is approved by the state board of examiners

3-41  pursuant to that section.

3-42    Sec. 9.  This act becomes effective upon passage and approval.

 

3-43  H