Senate Bill No. 323–Senator Titus

 

March 13, 2001

____________

 

Referred to Committee on Transportation

 

SUMMARY—Authorizes issuance of bonds, notes obligations or other evidences of borrowing to finance construction of super speed ground transportation system. (BDR 58‑961)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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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 railroads; authorizing the California-Nevada Super Speed Ground Transportation Commission to issue bonds, notes, obligations or evidences of borrowing to finance the construction of a super speed ground transportation system; making various changes to the definition of a super speed ground transportation system; 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 705 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    1.  The commission, or a corporation formed by the commission

1-4  pursuant to the laws of this state or the State of California, as the

1-5  commission deems appropriate, may issue bonds, notes, obligations or

1-6  other evidences of borrowing to finance all or a part of the construction

1-7  of all or a part of the super speed ground transportation system. For

1-8  purposes of issuing bonds, notes, obligations or other evidences of

1-9  borrowing pursuant to this section, the commission and any corporation

1-10  formed by the commission are constituted authorities for the purposes of

1-11  regulations enacted by the Internal Revenue Service pursuant to 26

1-12  U.S.C. §§ 103 and 141 to 150, inclusive.

1-13    2.  Bonds, notes, obligations or other evidences of borrowing issued

1-14  by the commission or any corporation formed by the commission which

1-15  are issued to finance all or any part of the construction of all or a part of

1-16  the super speed ground transportation system may be payable from and

1-17  secured by:

1-18    (a) A pledge of property of the commission or a corporation formed by

1-19  the commission pursuant to this section;

2-1    (b) A pledge of any revenue of the super speed ground transportation

2-2  system, including revenue from fares, revenue from advertising and all

2-3  other revenue of the system; and

2-4    (c) A pledge of any other money made available to the commission or

2-5  a corporation formed by the commission pursuant to this section by:

2-6       (1) Grants from the federal government or any other federal funds

2-7  as may be available to pay costs of the super speed ground transportation

2-8  system or debt service on any borrowing;

2-9       (2) Any company, public or private; or

2-10      (3) Any local government or governmental entity in this state or in

2-11  the State of California pursuant to an intergovernmental agreement or

2-12  otherwise.

2-13    3.  The commission may enter into agreements with any person, local

2-14  government or governmental entity for the provision of resources or

2-15  assistance to the commission or a corporation formed by the commission

2-16  concerning the financing of the super speed ground transportation

2-17  system.

2-18    4.  The commission or any corporation formed by the commission

2-19  pursuant to this section may issue obligations to refund any obligations

2-20  issued pursuant to the provisions of this section and NRS 705.4291 to

2-21  705.4296, inclusive, for any purpose the commission determines to be

2-22  sufficient.

2-23    5.  Nothing in this section authorizes the commission or any

2-24  corporation formed by the commission to obligate this state or the State

2-25  of California or any political subdivision thereof unless such state or

2-26  political subdivision has obligated itself to the commission or a

2-27  corporation created by the commission through an intergovernmental

2-28  agreement.

2-29    6.  Unless a specific statute of this state or the State of California

2-30  requires otherwise, upon dissolution of the commission, all property of

2-31  the commission must be distributed between this state and the State of

2-32  California in an equitable manner as agreed upon by the states.

2-33    7.  The creation, perfection, priority and enforcement of any lien on

2-34  pledged revenue or other money established to secure any bond, note,

2-35  obligation or other evidence of borrowing issued pursuant to this section,

2-36  must be as specified in this section and in the instruments approved by

2-37  the commission pertaining to that bond, note, obligation or other

2-38  evidence of borrowing. It is the purpose of this section to provide

2-39  expressly for the creation, perfection, priority and enforcement of a

2-40  security interest created by the commission in pledged revenues or other

2-41  money in connection with bonds, notes, obligations or other evidences of

2-42  borrowing issued pursuant to this section as described in paragraph (b)

2-43  of subsection 3 of NRS 104.9109. Any lien on pledged revenue or other

2-44  money created to secure any bond, note, obligation or other evidence of

2-45  borrowing issued pursuant to this section has priority over any lien

2-46  thereon created pursuant to the provisions of chapter 104 of NRS unless

2-47  otherwise provided in the instrument creating the lien to secure such

2-48  bond, note, obligation or other evidence of borrowing issued pursuant to

2-49  the provisions of this section.

3-1    Sec. 2.  NRS 705.4292 is hereby amended to read as follows:

3-2    705.4292  As used in NRS 705.4291 to 705.4296, inclusive, and

3-3  section 1 of this act, unless the context otherwise requires:

3-4    1.  “Commission” means the California-Nevada Super Speed Ground

3-5  Transportation Commission.

3-6    2.  “Southern California” means the counties of Los Angeles, Orange,

3-7  Riverside and San Bernardino.

3-8    3.  “Super speed ground transportation system” means a system that:

3-9    (a) Is capable of sustained speeds of at least [180] 240 miles per hour;

3-10    (b) Uses magnetic levitation technology;

3-11    (c) Carries primarily passengers; and

3-12    [(c)] (d) Operates on a grade-separated, dedicated guideway.

3-13    Sec. 3. Section 7 of chapter 568, Statutes of Nevada 1987, at page

3-14  1359, as amended by section 4 of chapter 106, Statutes of Nevada 1991, at

3-15  page 177, is hereby amended to read as follows:

3-16  Sec. 7.  1.  This act becomes effective on January 1, 1988.

3-17  2.  This act expires by limitation [1] :

3-18  (a) One year after the date on which the governor declares by

3-19  public proclamation that the super speed ground transportation system

3-20  connecting southern California with southern Nevada has been

3-21  completed [.] ; or

3-22  (b) On the date all borrowing made pursuant to section 1 of this

3-23  act is retired,

3-24  whichever is later.

3-25    Sec. 4.  1.  This act becomes effective on July 1, 2001.

3-26    2.  Sections 1 and 2 of this act expire by limitation:

3-27    (a) One year after the date on which the governor declares by public

3-28  proclamation that the super speed ground transportation system connecting

3-29  southern California with southern Nevada has been completed; or

3-30    (b) On the date all borrowing made pursuant to section 1 of this act is

3-31  retired,

3-32  whichever is later.

 

3-33  H