A.B. 443

 

Assembly Bill No. 443–Assemblywoman Freeman

 

March 19, 2001

____________

 

Referred to Committee on Elections, Procedures, and Ethics

 

SUMMARY—Makes various changes concerning elections. (BDR 24‑986)

 

FISCAL NOTE:            Effect on Local Government: Yes.

                                    Effect on the State: Yes.

 

~

 

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).

 

AN ACT relating to elections; providing for certain designated areas for gathering signatures on petitions; prohibiting state and local government, for certain periods, from expending money to support or oppose candidates or ballot questions; revising requirements governing petition circulators; requiring the secretary of state to prepare a nonbonding code of ethics for petition circulators; revising provisions regarding verification of signatures on certain petitions; revising requirements governing the committees that prepare arguments regarding county and municipal ballot questions; extending the period for gathering signatures on certain petitions; providing a civil penalty; 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 293 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3    Sec. 2.  1.  At each building that is open to the general public and

1-4  owned and occupied by the government of this state or a political

1-5  subdivision of this state or an agency thereof, a designated area not

1-6  smaller than 4 feet by 8 feet and not less than 50 feet from a public

1-7  entrance to the building must be made available for the use of any person

1-8  to gather signatures on a petition at any time that the building is open to

1-9  the public. Each public officer or employee in control of the operation of

1-10  a building governed by this subsection shall designate and approve the

1-11  area required by this subsection for the building.

1-12    2.  At a building that is open to the general public but not owned and

1-13  occupied by the government of this state or a political subdivision of this

1-14  state or an agency thereof, the owner may designate an area not smaller

1-15  than 4 feet by 8 feet and not less than 50 feet from a public entrance to

1-16  the building for the use of any person to gather signatures on a petition

1-17  at any time that the building is open to the public.


2-1    3.  An area designated pursuant to this section may be inside or

2-2  outside of a building.

2-3    Sec. 3.  1.  The government of this state or a political subdivision of

2-4  this state or an agency thereof shall not incur an expense or make an

2-5  expenditure to support or oppose:

2-6    (a) A ballot question within the 60 days immediately preceding the

2-7  election at which the question will appear on the ballot.

2-8    (b) A candidate within the 90 days immediately preceding the election

2-9  at which the candidate will appear on the ballot.

2-10    2.  The provisions of this section do not authorize an expense or

2-11  expenditure that is not otherwise authorized by law.

2-12    Sec. 4.  A person who attempts to obtain the signature of a voter on a

2-13  petition for a ballot question shall:

2-14    1.  When attempting to obtain a signature, wear a badge that

2-15  identifies the primary sponsor or proponent of the petition; and

2-16    2.  Before the voter signs the petition, accurately describe to the voter

2-17  the effect the initiative or referendum will have upon the law of this state.

2-18    Sec. 5.  1.  A person who circulates a petition for a ballot question

2-19  shall not willfully misrepresent the provisions of the petition to a voter to

2-20  obtain the signature of the voter on the petition.

2-21    2.  A person who violates the provisions of this section is subject to a

2-22  civil penalty of not more than $5,000 for each violation and payment of

2-23  court costs and attorney’s fees. The civil penalty must be recovered in a

2-24  civil action brought in the name of the State of Nevada by the secretary

2-25  of state in the first judicial district court and deposited with the state

2-26  treasurer for credit to the state general fund.

2-27    Sec. 6.  NRS 293.12756 is hereby amended to read as follows:

2-28    293.12756  1.  The secretary of state shall prepare an informational

2-29  pamphlet describing the requirements for filing and circulating petitions.

2-30  The pamphlet must also contain [a] :

2-31    (a) A sample of a petition to demonstrate an acceptable format for a

2-32  petition[.] ; and

2-33    (b) A nonbonding code of ethics for petition circulators that sets forth

2-34  aspirational goals for the behavior of persons who circulate petitions,

2-35  including, without limitation, behavior toward a person who may sign a

2-36  petition and behavior toward a person who is circulating another

2-37  petition.

2-38    2.  The pamphlets must be made available to the public and must be

2-39  distributed to any person who requests a pamphlet upon payment of the

2-40  applicable fee, if any. The secretary of state may impose a fee for the

2-41  pamphlet in an amount not to exceed the cost to produce the pamphlet.

2-42    Sec. 7.  NRS 295.105 is hereby amended to read as follows:

2-43    295.105  1.  Within 20 days after the petition is filed, the county clerk

2-44  shall complete a certificate as to its sufficiency, specifying, if it is

2-45  insufficient, the particulars wherein it is defective and shall promptly send

2-46  a copy of the certificate to the petitioners’ committee by registered or

2-47  certified mail. In examining the petition to determine its sufficiency, the

2-48  county clerk may use any file or list of registered voters maintained by

2-49  his office or facsimiles of voters’ signatures.


3-1    2.  A petition must not be certified insufficient for lack of the required

3-2  number of valid signatures if, in the absence of other proof of

3-3  disqualification, any signature on the face thereof does not exactly

3-4  correspond with the signature appearing on the official register of voters

3-5  and the identity of the signer can be ascertained from the face of the

3-6  petition. A petition certified insufficient for lack of the required number of

3-7  valid signatures may be amended once if the petitioners’ committee files a

3-8  notice of intention to amend it with the county clerk within 2 days after

3-9  receiving the copy of his certificate and files a supplementary petition upon

3-10  additional papers within 10 days after receiving the copy of the certificate.

3-11  A supplementary petition must comply with the requirements of

3-12  subsections 5 and 6 of NRS 295.095, and within 5 days after it is filed the

3-13  county clerk shall complete a certificate as to the sufficiency of the petition

3-14  as amended and promptly send a copy of the certificate to the petitioners’

3-15  committee by registered or certified mail.

3-16    3.  If a petition or amended petition is certified sufficient, or if a

3-17  petition or amended petition is certified insufficient and the petitioners’

3-18  committee does not elect to amend or request board review under

3-19  subsection 4 within the time required, the county clerk shall promptly

3-20  present his certificate to the board and the certificate is a final

3-21  determination as to the sufficiency of the petition.

3-22    4.  If a petition has been certified insufficient and the petitioners’

3-23  committee does not file notice of intention to amend it or if an amended

3-24  petition has been certified insufficient, the committee may, within 2 days

3-25  after receiving a copy of the certificate, file a request that it be reviewed by

3-26  the board. The board shall review the certificate at its next meeting

3-27  following the filing of the request and approve or disapprove it, and the

3-28  determination of the board is a final determination as to the sufficiency of

3-29  the petition.

3-30    5.  A final determination as to the sufficiency of a petition is subject to

3-31  court review. A final determination of insufficiency, even if sustained upon

3-32  court review, does not prejudice the filing of a new petition for the same

3-33  purpose.

3-34    Sec. 8.  NRS 295.121 is hereby amended to read as follows:

3-35    295.121  1.  In a county whose population is 50,000 or more, for each

3-36  initiative, referendum or other question to be placed on the ballot by the

3-37  board or county clerk, including, without limitation, pursuant to NRS

3-38  293.482, 295.115 or 295.160, the board shall, in consultation with the

3-39  county clerk, pursuant to subsection 2, appoint a committee of six persons,

3-40  three of whom are known to favor approval by the voters of the initiative,

3-41  referendum or other question and three of whom are known to oppose

3-42  approval by the voters of the initiative, referendum or other question. A

3-43  person may serve on more than one committee. Members of the committee

3-44  serve without compensation[.] and must be registered voters eligible to

3-45  vote on the initiative, referendum or other question. The term of office for

3-46  each member commences upon appointment and expires upon the

3-47  publication of the sample ballot containing the initiative, referendum or

3-48  other question.


4-1    2.  Before the board appoints a committee pursuant to subsection 1, the

4-2  county clerk shall:

4-3    (a) Recommend to the board persons to be appointed to the committee;

4-4  and

4-5    (b) Consider recommending pursuant to paragraph (a):

4-6       (1) Any person who has expressed an interest in serving on the

4-7  committee; and

4-8       (2) A person who is a member of an organization that has expressed

4-9  an interest in having a member of the organization serve on the committee.

4-10    3.  If the board of a county whose population is 50,000 or more fails to

4-11  appoint a committee as required by subsection 1, the county clerk shall

4-12  appoint the committee.

4-13    4.  A committee appointed pursuant to this section:

4-14    (a) Shall elect a chairman for the committee;

4-15    (b) Shall meet and conduct its affairs as necessary to fulfill the

4-16  requirements of this section;

4-17    (c) May seek and consider comments from the general public;

4-18    (d) Shall prepare an argument advocating approval by the voters of the

4-19  initiative, referendum or other question, and prepare a rebuttal to that

4-20  argument;

4-21    (e) Shall prepare an argument opposing approval by the voters of the

4-22  initiative, referendum or other question, and prepare a rebuttal to that

4-23  argument; and

4-24    (f) Shall submit the arguments and rebuttals prepared pursuant to

4-25  paragraphs (d) and (e) to the county clerk not later than the date prescribed

4-26  by the county clerk pursuant to subsection 5.

4-27    5.  The county clerk of a county whose population is 50,000 or more

4-28  shall provide, by rule or regulation:

4-29    (a) The maximum permissible length of an argument or rebuttal

4-30  prepared pursuant to this section; and

4-31    (b) The date by which an argument or rebuttal prepared pursuant to this

4-32  section must be submitted by the committee to the county clerk.

4-33    6.  Upon receipt of an argument or rebuttal prepared pursuant to this

4-34  section, the county clerk shall reject each statement in the argument or

4-35  rebuttal that he believes is libelous or factually inaccurate. Not later than 5

4-36  days after the county clerk rejects a statement pursuant to this subsection,

4-37  the committee may appeal that rejection to the district attorney. The district

4-38  attorney shall review the statement and the reasons for its rejection and

4-39  may receive evidence, documentary or testimonial, to aid him in his

4-40  decision. Not later than 3 business days after the appeal by the committee,

4-41  the district attorney shall issue his decision rejecting or accepting the

4-42  statement. The decision of the district attorney is a final decision for the

4-43  purposes of judicial review. Not later than 5 days after the district

4-44  attorney issues his decision, the committee may file a complaint in

4-45  district court challenging the decision. The court shall give priority to

4-46  such a complaint over all other matters pending with the court, except for

4-47  criminal proceedings.

4-48    7.  The county clerk shall place in the sample ballot provided to the

4-49  registered voters of the county each argument and rebuttal prepared


5-1  pursuant to this section, containing all statements that were not rejected

5-2  pursuant to subsection 6. The county clerk may revise the language

5-3  submitted by the committee so that it is clear, concise and suitable for

5-4  incorporation in the sample ballot, but shall not alter the meaning or effect

5-5  without the consent of the committee.

5-6    8.  In a county whose population is less than 50,000:

5-7    (a) The board may appoint a committee pursuant to subsection 1.

5-8    (b) If the board appoints a committee, the county clerk shall provide for

5-9  rules or regulations pursuant to subsection 5.

5-10    Sec. 9.  NRS 295.210 is hereby amended to read as follows:

5-11    295.210  1.  Within 20 days after the petition is filed, the city clerk

5-12  shall examine the signatures thereon, complete a certificate as to its

5-13  sufficiency, specifying, if it is insufficient, the particulars wherein it is

5-14  defective and shall promptly send a copy of the certificate to the

5-15  petitioners’ committee by registered or certified mail. In examining the

5-16  petition to determine its sufficiency, the city clerk may use any file or list

5-17  of registered voters maintained by his office or the office of the county

5-18  clerk or facsimiles of voters’ signatures.

5-19    2.  If more than 500 names are signed on the documents filed with him,

5-20  the city clerk must examine the signatures by sampling them randomly for

5-21  verification. The random sample of signatures to be verified must be drawn

5-22  in such a manner that every signature which has been submitted to the city

5-23  clerk is given an equal opportunity to be included in the sample. The

5-24  sample must include an examination of at least 500 signatures or 5 percent

5-25  of the signatures, whichever is greater.

5-26    3.  A petition must not be certified insufficient for lack of the required

5-27  number of valid signatures if, in the absence of other proof of

5-28  disqualification, any signature on the face thereof does not exactly

5-29  correspond with the signature appearing on the official register of voters

5-30  and the identity of the signer can be ascertained from the face of the

5-31  petition. A petition certified insufficient for lack of the required number of

5-32  valid signatures may be amended once if the petitioners’ committee files a

5-33  notice of intention to amend it with the city clerk within 2 days after

5-34  receiving the copy of his certificate and files a supplementary petition upon

5-35  additional papers within 10 days after receiving the copy of the certificate.

5-36  A supplementary petition must comply with the requirements of

5-37  subsections 5 and 6 of NRS 295.205, and within 5 days after it is filed the

5-38  city clerk shall complete a certificate as to the sufficiency of the petition as

5-39  amended and promptly send a copy of the certificate to the petitioners’

5-40  committee by registered or certified mail.

5-41    4.  If a petition or amended petition is certified sufficient, or if a

5-42  petition or amended petition is certified insufficient and the petitioners’

5-43  committee does not elect to amend or request council review under

5-44  subsection 5 within the time required, the city clerk must promptly present

5-45  his certificate to the council and the certificate is a final determination as to

5-46  the sufficiency of the petition.

5-47    5.  If a petition has been certified insufficient and the petitioners’

5-48  committee does not file notice of intention to amend it or if an amended

5-49  petition has been certified insufficient, the committee may, within 2 days


6-1  after receiving the copy of the certificate, file a request that it be reviewed

6-2  by the council. The council shall review the certificate at its next meeting

6-3  following the filing of the request and approve or disapprove it, and the

6-4  council’s determination is a final determination as to the sufficiency of the

6-5  petition.

6-6    6.  A final determination as to the sufficiency of a petition is subject to

6-7  court review. A final determination of insufficiency, even if sustained upon

6-8  court review, does not prejudice the filing of a new petition for the same

6-9  purpose.

6-10    Sec. 10.  NRS 295.217 is hereby amended to read as follows:

6-11    295.217  1.  In a city whose population is 50,000 or more, for each

6-12  initiative, referendum or other question to be placed on the ballot by the

6-13  council, including, without limitation, pursuant to NRS 293.482 or

6-14  295.215, the council shall, in consultation with the city clerk, pursuant to

6-15  subsection 2, appoint a committee of six persons, three of whom are known

6-16  to favor approval by the voters of the initiative, referendum or other

6-17  question and three of whom are known to oppose approval by the voters of

6-18  the initiative, referendum or other question. A person may serve on more

6-19  than one committee. Members of the committee serve without

6-20  compensation[.] and must be registered voters eligible to vote on the

6-21  initiative, referendum or other question. The term of office for each

6-22  member commences upon appointment and expires upon the publication of

6-23  the sample ballot containing the initiative, referendum or other question.

6-24    2.  Before the council appoints a committee pursuant to subsection 1,

6-25  the city clerk shall:

6-26    (a) Recommend to the council persons to be appointed to the

6-27  committee; and

6-28    (b) Consider recommending pursuant to paragraph (a):

6-29       (1) Any person who has expressed an interest in serving on the

6-30  committee; and

6-31      (2) A person who is a member of an organization that has expressed

6-32  an interest in having a member of the organization serve on the committee.

6-33    3.  If the council of a city whose population is 50,000 or more fails to

6-34  appoint a committee as required by subsection 1, the city clerk shall

6-35  appoint the committee.

6-36    4.  A committee appointed pursuant to this section:

6-37    (a) Shall elect a chairman for the committee;

6-38    (b) Shall meet and conduct its affairs as necessary to fulfill the

6-39  requirements of this section;

6-40    (c) May seek and consider comments from the general public;

6-41    (d) Shall prepare an argument advocating approval by the voters of the

6-42  initiative, referendum or other question, and prepare a rebuttal to that

6-43  argument;

6-44    (e) Shall prepare an argument opposing approval by the voters of the

6-45  initiative, referendum or other question, and prepare a rebuttal to that

6-46  argument; and

6-47    (f) Shall submit the arguments and rebuttals prepared pursuant to

6-48  paragraphs (d) and (e) to the city clerk not later than the date prescribed by

6-49  the city clerk pursuant to subsection 5.


7-1    5.  The city clerk of a city whose population is 50,000 or more shall

7-2  provide, by rule or regulation:

7-3    (a) The maximum permissible length of an argument or rebuttal

7-4  prepared pursuant to this section; and

7-5    (b) The date by which an argument or rebuttal prepared pursuant to this

7-6  section must be submitted by the committee to the city clerk.

7-7    6.  Upon receipt of an argument or rebuttal prepared pursuant to this

7-8  section, the city clerk shall reject each statement in the argument or rebuttal

7-9  that he believes is libelous or factually inaccurate. Not later than 5 days

7-10  after the city clerk rejects a statement pursuant to this subsection, the

7-11  committee may appeal that rejection to the city attorney. The city attorney

7-12  shall review the statement and the reasons for its rejection and may receive

7-13  evidence, documentary or testimonial, to aid him in his decision. Not later

7-14  than 3 business days after the appeal by the committee, the city attorney

7-15  shall issue his decision rejecting or accepting the statement. The decision

7-16  of the city attorney is a final decision for the purposes of judicial review.

7-17  Not later than 5 days after the city attorney issues his decision, the

7-18  committee may file a complaint in district court challenging the decision.

7-19  The court shall give priority to such a complaint over all other matters

7-20  pending with the court, except for criminal proceedings.

7-21    7.  The city clerk shall place in the sample ballot provided to the

7-22  registered voters of the city each argument and rebuttal prepared pursuant

7-23  to this section, containing all statements that were not rejected pursuant to

7-24  subsection 6. The city clerk may revise the language submitted by the

7-25  committee so that it is clear, concise and suitable for incorporation in the

7-26  sample ballot, but shall not alter the meaning or effect without the consent

7-27  of the committee.

7-28    8.  In a city whose population is less than 50,000:

7-29    (a) The council may appoint a committee pursuant to subsection 1.

7-30    (b) If the council appoints a committee, the city clerk shall provide for

7-31  rules or regulations pursuant to subsection 5.

7-32    Sec. 11.  NRS 306.015 is hereby amended to read as follows:

7-33    306.015  1.  Before a petition to recall a public officer is circulated,

7-34  the persons proposing to circulate the petition must file a notice of intent

7-35  with the filing officer.

7-36    2.  The notice of intent:

7-37    (a) Must be signed by three registered voters who actually voted in this

7-38  state or in the county, district or municipality electing the officer at the last

7-39  preceding general election.

7-40    (b) Must be signed before a person authorized by law to administer

7-41  oaths that the statements and signatures contained in the notice are true.

7-42    (c) Is valid until the date on which the call for a special election is

7-43  issued, as set forth in NRS 306.040.

7-44    3.  The petition may consist of more than one document. The persons

7-45  filing the notice of intent shall submit the petition that was circulated for

7-46  signatures to the filing officer within [60] 90 days after the date on which

7-47  the notice of intent was filed. The filing officer shall immediately submit

7-48  the petition to the county clerk for verification pursuant to NRS 306.035.

7-49  Any person who fails to file the petition as required by this subsection is


8-1  guilty of a misdemeanor. Copies of the petition are not valid for any

8-2  subsequent petition.

8-3    4.  The county clerk shall, upon completing the verification of the

8-4  signatures on the petition, file the petition with the filing officer.

8-5    5.  Any person who signs a petition to recall any public officer may

8-6  remove his name from the petition by submitting a request in writing to the

8-7  county clerk at any time before the petition is submitted for the verification

8-8  of the signatures thereon pursuant to NRS 306.035.

8-9    6.  A person who signs a notice of intent pursuant to subsection 1 or a

8-10  petition to recall a public officer is immune from civil liability for conduct

8-11  related to the exercise of his right to participate in the recall of a public

8-12  officer.

8-13    7.  As used in this section, “filing officer” means the officer with whom

8-14  the public officer to be recalled filed his declaration of candidacy or

8-15  acceptance of candidacy pursuant to NRS 293.185, 293C.145 or 293C.175.

8-16    Sec. 12.  NRS 350.020 is hereby amended to read as follows:

8-17    350.020  1.  Except as otherwise provided by subsections 3 and 4, if a

8-18  municipality proposes to issue or incur general obligations, the proposal

8-19  must be submitted to the electors of the municipality at a special election

8-20  called for that purpose or the next general municipal election or general

8-21  state election.

8-22    2.  Such a special election may be held:

8-23    (a) At any time, including, without limitation, on the date of a primary

8-24  municipal election or a primary state election, if the governing body of the

8-25  municipality determines, by a unanimous vote, that an emergency exists; or

8-26    (b) On the first Tuesday after the first Monday in June of an odd-

8-27  numbered year.

8-28  The determination made by the governing body is conclusive unless it is

8-29  shown that the governing body acted with fraud or a gross abuse of

8-30  discretion. An action to challenge the determination made by the governing

8-31  body must be commenced within 15 days after the governing body’s

8-32  determination is final. As used in this subsection, “emergency” means any

8-33  occurrence or combination of occurrences which requires immediate action

8-34  by the governing body of the municipality to prevent or mitigate a

8-35  substantial financial loss to the municipality or to enable the governing

8-36  body to provide an essential service to the residents of the municipality.

8-37    3.  If payment of a general obligation of the municipality is additionally

8-38  secured by a pledge of gross or net revenue of a project to be financed by

8-39  its issue, and the governing body determines, by an affirmative vote of

8-40  two-thirds of the members elected to the governing body, that the pledged

8-41  revenue will at least equal the amount required in each year for the

8-42  payment of interest and principal, without regard to any option reserved by

8-43  the municipality for early redemption, the municipality may, after a public

8-44  hearing, incur this general obligation without an election unless, within

8-45  [60] 90 days after publication of a resolution of intent to issue the bonds, a

8-46  petition is presented to the governing body signed by not less than 5

8-47  percent of the registered voters of the municipality who together with any

8-48  corporate petitioners own not less than 2 percent in assessed value of the

8-49  taxable property of the municipality. Any member elected to the governing


9-1  body whose authority to vote is limited by charter, statute or otherwise may

9-2  vote on the determination required to be made by the governing body

9-3  pursuant to this subsection. The determination by the governing body

9-4  becomes conclusive on the last day for filing the petition. For the purpose

9-5  of this subsection, the number of registered voters must be determined as

9-6  of the close of registration for the last preceding general election and

9-7  assessed values must be determined from the next preceding final

9-8  assessment roll. An authorized corporate officer may sign such a petition

9-9  whether or not he is a registered voter. The resolution of intent need not be

9-10  published in full, but the publication must include the amount of the

9-11  obligation and the purpose for which it is to be incurred. Notice of the

9-12  public hearing must be published at least 10 days before the day of the

9-13  hearing. The publications must be made once in a newspaper of general

9-14  circulation in the municipality. When published, the notice of the public

9-15  hearing must be at least as large as 5 inches high by 4 inches wide.

9-16    4.  The board of trustees of a school district may issue general

9-17  obligation bonds which are not expected to result in an increase in the

9-18  existing property tax levy for the payment of bonds of the school district

9-19  without holding an election for each issuance of the bonds if the qualified

9-20  electors approve a question submitted by the board of trustees that

9-21  authorizes issuance of bonds for a period of 10 years after the date of

9-22  approval by the voters. If the question is approved, the board of trustees of

9-23  the school district may issue the bonds for a period of 10 years after the

9-24  date of approval by the voters, after obtaining the approval of the debt

9-25  management commission in the county in which the school district is

9-26  located and, in a county whose population is 100,000 or more, the approval

9-27  of the oversight panel for school facilities established pursuant to NRS

9-28  393.092 in that county, if the board of trustees of the school district finds

9-29  that the existing tax for debt service will at least equal the amount required

9-30  to pay the principal and interest on the outstanding general obligations of

9-31  the school district and the general obligations proposed to be issued. The

9-32  finding made by the board of trustees is conclusive in the absence of fraud

9-33  or gross abuse of discretion. As used in this subsection, “general

9-34  obligations” does not include medium-term obligations issued pursuant to

9-35  NRS 350.085 to 350.095, inclusive.

9-36    5.  At the time of issuance of bonds authorized pursuant to subsection

9-37  4, the board of trustees shall establish a reserve account in its debt service

9-38  fund for payment of the outstanding bonds of the school district. The

9-39  reserve account must be established and maintained in an amount at least

9-40  equal to the lesser of the amount of principal and interest payments due on

9-41  all of the outstanding bonds of the school district in the next fiscal year or

9-42  10 percent of the outstanding principal amount of the outstanding bonds of

9-43  the school district. If the amount in the reserve account falls below the

9-44  amount required by this subsection:

9-45    (a) The board of trustees shall not issue additional bonds pursuant to

9-46  subsection 4 until the reserve account is restored to the level required by

9-47  this subsection; and

9-48    (b) The board of trustees shall apply all of the taxes levied by the school

9-49  district for payment of bonds of the school district that are not needed for


10-1  payment of the principal and interest on bonds of the school district in the

10-2  current fiscal year to restore the reserve account to the level required

10-3  pursuant to this subsection.

10-4    6.  A municipality may issue special or medium-term obligations

10-5  without an election.

10-6    Sec. 13.  The provisions of this act do not apply to conduct that

10-7  occurred before October 1, 2001.

 

10-8  H