(REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 553–Committee on Government Affairs

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes concerning finances of local governments. (BDR 30‑130)

 

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.

 

AN ACT relating to governmental administration; establishing certain requirements for the use of installment-purchase agreements by local governments; removing the requirement that local governments create funds for certain extraordinary maintenance, repair or improvements; creating certain exceptions to the Uniform Commercial Code—Secured Transactions; authorizing the committee on local government finance to adopt certain regulations; requiring the committee on local government finance to adopt certain regulations; prohibiting the use of the proceeds from certain obligations issued by a local government to pay operating expenses; requiring the Nevada tax commission to appoint a subcommittee to conduct a public hearing concerning the management of a local government in a severe financial emergency; requiring the publication of certain regulations in the Nevada Administrative Code; 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 350 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3    Sec. 2.  As used in this chapter, unless the context otherwise

1-4  requires, the words and terms defined in sections 3 to 7, inclusive, of this

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

1-6    Sec. 3.  “General obligation debt” means debt that is legally payable

1-7  from general revenues, as a primary or secondary source of repayment,

1-8  and is backed by the full faith and credit of a governmental entity, and if

1-9  the governmental entity is authorized to levy taxes, by those taxes. The

1-10  term includes, without limitation, debt represented by local government

1-11  securities issued pursuant to this chapter and installment-purchase

1-12  agreements described in subsection 1 of section 4 of this act. The term

1-13  does not include, without limitation:

2-1    1.  Installment-purchase agreements described in subsection 2 of

2-2  section 4 of this act;

2-3    2.  Special obligations; and

2-4    3.  Obligations with a term of less than 1 year that are payable in full

2-5  from money appropriated for the same fiscal year in which the

2-6  obligations are incurred.

2-7    Sec. 4.  “Installment-purchase agreement” means an agreement for

2-8  the purchase of real or personal property by installment or lease or

2-9  another transaction that is described in NRS 350.800 which:

2-10    1.  Is required to be counted against any limit upon the debt of a local

2-11  government pursuant to subsection 1 of NRS 350.800; or

2-12    2.  Is not required to be counted against any limit upon the debt of a

2-13  local government and:

2-14    (a) Exceeds $100,000 for a local government in a county whose

2-15  population is 100,000 or more; or

2-16    (b) Exceeds $50,000 for a local government in a county whose

2-17  population is less than 100,000.

2-18  The term “installment-purchase agreement” does not include an

2-19  obligation to pay rent pursuant to a lease which contains no option or

2-20  right to purchase or which contains only an option or right to purchase

2-21  the property without any credit towards the purchase price for lease or

2-22  rental payments.

2-23    Sec. 5.  “Local government” has the meaning ascribed to it in

2-24  NRS 354.474.

2-25    Sec. 6.  “Medium-term obligation” means an obligation to repay

2-26  borrowed money evidenced by a note or bond which is authorized to be

2-27  issued pursuant to NRS 350.087 to 350.095, inclusive, and which has a

2-28  term of 10 years or less. The term does not include an obligation which

2-29  has a term of less than 1 year and which is payable in full from money

2-30  appropriated for the same fiscal year that the obligation is incurred.

2-31    Sec. 7.  “Special obligation” means a municipal security issued

2-32  pursuant to NRS 350.582.

2-33    Sec. 8.  For the purposes of this chapter, the term of an installment-

2-34  purchase agreement must be determined as the period from the date the

2-35  agreement is entered into by a local government to the date that the

2-36  purchase price will be paid in full and must include the term of the

2-37  original agreement and the term of any renewal, including, without

2-38  limitation, an optional renewal, of the agreement.

2-39    Sec. 9.  1.  The committee on local government finance may adopt

2-40  such regulations as are necessary for the administration of this chapter.

2-41    2.  Any regulations adopted by the committee on local government

2-42  finance must be adopted in the manner prescribed for state agencies in

2-43  chapter 233B of NRS.

2-44    Sec. 10.  NRS 350.001 is hereby amended to read as follows:

2-45    350.001  As used in NRS 350.001 to 350.006, inclusive, unless the

2-46  context otherwise requires:

2-47    1.  “Commission” means a debt management commission created

2-48  pursuant to NRS 350.002.

3-1    2.  [“General obligation debt” means debt which is legally payable

3-2  from general revenues, as a primary or secondary source of repayment, and

3-3  is backed by the full faith and credit of a governmental entity. The term

3-4  includes debt represented by local government securities issued pursuant to

3-5  this chapter except debt created for medium-term obligations pursuant to

3-6  NRS 350.085 to 350.095, inclusive.

3-7    3.] “Special elective tax” means a tax imposed pursuant to NRS

3-8  354.59817, 354.5982, 387.197, 387.3285 or 387.3287.

3-9    Sec. 11.  NRS 350.0035 is hereby amended to read as follows:

3-10    350.0035  1.  Except as otherwise provided in this section, on or

3-11  before July 1 of each year, the governing body of a municipality which

3-12  proposes to issue or has outstanding any general obligation debt, other

3-13  general obligations or special obligations, or which levies or proposes to

3-14  levy any special elective tax, shall submit to the department of taxation and

3-15  the commission:

3-16    (a) A complete statement of current and contemplated general

3-17  obligation debt and special elective taxes, and a report of current and

3-18  contemplated debt and special assessments and retirement schedules, in the

3-19  detail and form established by the committee on local government finance.

3-20    (b) A written statement of the debt management policy of the

3-21  municipality, which must include, without limitation:

3-22      (1) A discussion of its ability to afford existing general obligation

3-23  debt, authorized future general obligation debt and proposed future general

3-24  obligation debt;

3-25      (2) A discussion of its capacity to incur authorized and proposed

3-26  future general obligation debt without exceeding the applicable debt limit;

3-27      (3) A discussion of its general obligation debt that is payable from ad

3-28  valorem taxes per capita as compared with such debt of other

3-29  municipalities in this state;

3-30      (4) A discussion of its general obligation debt that is payable from ad

3-31  valorem taxes as a percentage of assessed valuation of all taxable property

3-32  within the boundaries of the municipality;

3-33      (5) Policy regarding the manner in which the municipality expects to

3-34  sell its debt;

3-35      (6) A discussion of its sources of money projected to be available to

3-36  pay existing general obligation debt, authorized future general obligation

3-37  debt and proposed future general obligation debt; and

3-38      (7) A discussion of its operational costs and revenue sources, for the

3-39  ensuing 5 fiscal years, associated with each project included in its plan for

3-40  capital improvement submitted pursuant to paragraph (c), if those costs and

3-41  revenues are expected to affect the tax rate.

3-42    (c) Either:

3-43      (1) Its plan for capital improvement for the ensuing [3] 5 fiscal years,

3-44  which must include any contemplated issuance of general obligation debt

3-45  during this period and the sources of money projected to be available to

3-46  pay the debt[.] ; or

3-47      (2) A statement indicating that no changes are contemplated in its

3-48  plan for capital improvement for the ensuing 5 fiscal years.

4-1    (d) A statement containing the name, title, mailing address and

4-2  telephone number of the chief financial officer of the municipality.

4-3    2.  The governing body of a municipality may combine a statement or

4-4  plan required by subsection 1 with the corresponding statement or plan of

4-5  another municipality if both municipalities have the same governing body

4-6  or the governing bodies of both municipalities agree to such a combination.

4-7    3.  The governing body of each municipality shall update all statements

4-8  and plans required by subsection 1 not less frequently than annually.

4-9    4.  The provisions of this section do not apply to the Airport Authority

4-10  of Washoe County so long as the authority does not have any general

4-11  obligation bonds outstanding and does not issue or propose to issue any

4-12  such bonds. At least 30 days before each annual meeting of the

4-13  commission, the authority shall submit to the department of taxation a

4-14  written statement regarding whether the authority is planning to propose to

4-15  issue any general obligation bonds before the next following annual

4-16  meeting of the commission.

4-17    Sec. 12.  NRS 350.004 is hereby amended to read as follows:

4-18    350.004  1.  Before any proposal to incur a general obligation debt or

4-19  levy a special elective tax may be submitted to the electors of a

4-20  municipality, before any issuance of general obligation bonds pursuant to

4-21  subsection 4 of NRS 350.020 , before entering into an installment-

4-22  purchase agreement with a term of more than 10 years or , before any

4-23  other formal action may be taken preliminary to the incurrence of any

4-24  general obligation debt, the proposed incurrence or levy must receive the

4-25  favorable vote of two-thirds of the members of the commission of each

4-26  county in which the municipality is situated.

4-27    2.  Before the board of trustees of a district organized or reorganized

4-28  pursuant to chapter 318 of NRS whose population within its boundaries is

4-29  less than 5,000[,] incurs a medium-term obligation or otherwise borrows

4-30  money or issues securities to evidence such borrowing, other than

4-31  securities representing a general obligation debt[,] or installment-

4-32  purchase agreements with a term of 10 years or less, the proposed

4-33  borrowing or issuing of securities must receive the favorable vote of a

4-34  majority of the members of the commission of each county in which the

4-35  district is situated.

4-36    3.  When any municipality other than a general improvement district

4-37  whose population within its boundaries is less than 5,000[,] issues any

4-38  special obligations, it shall so notify in its annual report the commission of

4-39  each county in which any of its territory is situated.

4-40    4.  The commission shall not approve any proposal submitted to it

4-41  pursuant to this section by a municipality:

4-42    (a) Which, if the proposal is for the financing of a capital improvement,

4-43  is not included in its plan for capital improvement submitted pursuant to

4-44  NRS 350.0035, if such a plan is required to be submitted; or

4-45    (b) If, based upon:

4-46      (1) Estimates of the amount of tax revenue from ad valorem taxes

4-47  needed for the special elective tax, or to repay the general obligation debt,

4-48  and the dates that revenue will be needed, as provided by the municipality;

5-1       (2) Estimates of the assessed valuation of the municipality for each of

5-2  the years in which tax revenue is needed, as provided by the municipality;

5-3       (3) The amount of any other required levies of ad valorem taxes, as

5-4  shown on the most recently filed final budgets of each entity authorized to

5-5  levy ad valorem taxes on any property within the municipality submitting

5-6  the proposal; and

5-7       (4) Any other factor the municipality discloses to the

5-8  commission,

5-9  the proposal would result in a combined property tax rate in any of the

5-10  overlapping entities within the county which exceeds the limit provided in

5-11  NRS 361.453, unless the proposal also includes an agreement approved by

5-12  the governing bodies of all affected municipalities within the area as to

5-13  how the combined property tax rates will be brought into compliance with

5-14  the statutory limitation[.] or unless the commission adopts a plan that is

5-15  approved by the executive director of the department of taxation

5-16  pursuant to which the combined property tax rate will be in compliance

5-17  with the statutory limitation.

5-18    5.  If general obligation debt is to be incurred more than 36 months

5-19  after the approval of that debt by the commission, the governing body of

5-20  the municipality shall obtain [the] additional approval of the [executive

5-21  director of the department of taxation] commission before incurring the

5-22  general obligation debt. The [executive director] commission shall only

5-23  approve [the] a proposal that is submitted pursuant to this subsection if,

5-24  based on the information set forth in paragraph (b) of subsection 4 that is

5-25  accurate as of the date on which the governing body submits , pursuant to

5-26  this subsection, its request for approval to the [executive director:]

5-27  commission:

5-28    (a) Incurrence of the general obligation debt will not result in a

5-29  combined property tax rate in any of the overlapping entities within the

5-30  county which exceeds the limit provided in NRS 361.453; [or]

5-31    (b) The proposal includes an agreement approved by the governing

5-32  bodies of all affected municipalities within the area as to how the combined

5-33  tax rates will be brought into compliance with the statutory limitation[.] ;

5-34  or

5-35    (c) The commission adopts a plan that is approved by the executive

5-36  director of the department of taxation pursuant to which the combined

5-37  property tax rate will be in compliance with the statutory limitation.

5-38  The approval of the [executive director] commission pursuant to this

5-39  subsection is effective for 18 months. The governing body of the

5-40  municipality may renew that approval for successive periods of 18 months

5-41  by filing an application for renewal with the [executive director.]

5-42  commission. Such an application must be accompanied by the information

5-43  set forth in paragraph (b) of subsection 4 that is accurate as of the date the

5-44  governing body files the application for renewal.

5-45    [6.  If the executive director does not approve a proposal submitted to

5-46  him pursuant to subsection 5, the governing body of the municipality may

5-47  appeal his decision to the Nevada tax commission.]

 

 

6-1    Sec. 13.  NRS 350.005 is hereby amended to read as follows:

6-2    350.005  1.  The governing body of the municipality proposing to

6-3  incur general obligation debt , to enter an installment-purchase agreement

6-4  with a term of more than 10 years or to levy a special elective tax and the

6-5  board of trustees of a general improvement district whose population

6-6  within its boundaries is less than 5,000[,] who proposes to issue a

6-7  medium-term obligation or otherwise borrow money and issue any

6-8  securities other than securities representing a general obligation debt[,] or

6-9  installment-purchase agreements with terms of 10 years or less, shall

6-10  notify the secretary of each appropriate commission, and shall submit a

6-11  statement of its proposal in sufficient number of copies for each member of

6-12  the commission. The secretary, with the approval of the chairman, shall,

6-13  within 10 days, give notice of a meeting, in the manner required by chapter

6-14  241 of NRS, to be held not more than 20 days thereafter. He shall provide a

6-15  copy of the proposal to each member with the notice of the meeting, and

6-16  mail notice of the meeting to the chief financial officer of each

6-17  municipality in the county which has complied with subsection 1 of NRS

6-18  350.0035 within the past year.

6-19    2.  The commission may grant a conditional or provisional approval of

6-20  such proposal. Such conditions or provisions are limited to [the] :

6-21    (a) The scheduling of:

6-22    [(a)] (1) The issuance and retirement of securities, if the proposal is to

6-23  incur general obligation debt; or

6-24    [(b)] (2) The imposition of the tax, if the proposal is to levy a special

6-25  elective tax[.] ; and

6-26    (b) If the proposal would result in a combined property tax rate in any

6-27  of the overlapping entities within the county which exceeds 90 percent of

6-28  the limit provided in NRS 361.453, a condition requiring a reduction in

6-29  the amount of the proposed debt, installment-purchase agreement or

6-30  special elective tax.

6-31    3.  The commission may adjourn a meeting called to consider a

6-32  particular proposal no more than once, for no more than 10 days.

6-33  Notification of the approval or disapproval of its proposal must be sent to

6-34  the governing body within 3 days after the meeting.

6-35    Sec. 14.  NRS 350.0051 is hereby amended to read as follows:

6-36    350.0051  1.  In determining whether to approve or disapprove a

6-37  proposal to incur debt , to enter an installment-purchase agreement with

6-38  a term of more than 10 years or to levy a special elective tax, the

6-39  commission shall not, except as otherwise provided in paragraph (d),

6-40  initiate a determination as to whether the proposed debt , installment-

6-41  purchase agreement or special elective tax is sought to accomplish a

6-42  public purpose or to satisfy a public need. The commission shall consider,

6-43  but is not limited to, the following criteria:

6-44    (a) If the proposal is to incur debt, the amount of debt outstanding on

6-45  the part of the municipality proposing to incur the debt.

6-46    (b) The effect of the tax levy required for debt service on the proposed

6-47  debt[,] or to repay an installment-purchase agreement with a term of

6-48  more than 10 years, or of the proposed levy of a special elective tax, upon

6-49  the ability of the municipality proposing to incur the general obligation

7-1  debt , enter the installment-purchase agreement or levy the special

7-2  elective tax and of other municipalities to raise revenue for operating

7-3  purposes.

7-4    (c) The anticipated need for other incurrences of debt , installment-

7-5  purchase agreements or levies of special elective taxes by the municipality

7-6  proposing to incur the debt , enter the installment-purchase agreement or

7-7  levy the special elective tax and other municipalities whose tax-levying

7-8  powers overlap, as shown by the county or regional master plan, if any, and

7-9  by other available information.

7-10    (d) If the information set forth in paragraph (b) of subsection 4 of NRS

7-11  350.004 indicates that the proposal would result in a combined property tax

7-12  rate in any of the overlapping entities within the county which exceeds 90

7-13  percent of the limit provided in NRS 361.453:

7-14      (1) The public need to be served by the proceeds from the proposed

7-15  debt or tax levy; and

7-16      (2) A comparison of that public need and other public needs that

7-17  appear on the statements of current and contemplated general obligation

7-18  debt and special elective taxes submitted pursuant to paragraph (a) of

7-19  subsection 1 of NRS 350.0035 that may affect the combined property tax

7-20  rate in any of the overlapping entities within the county.

7-21    2.  If the commission approves the proposal, the amount received from

7-22  the sale of the general obligation debt or from the special elective tax may

7-23  be expended only for the purposes described in the proposal.

7-24    3.  The commission may make reasonable requests from a

7-25  municipality for information relating to the criteria described in

7-26  paragraphs (a) to (d), inclusive, of subsection 1. A municipality shall use

7-27  its best efforts to comply with information requests from the commission

7-28  in a timely manner.

7-29    Sec. 15.  NRS 350.006 is hereby amended to read as follows:

7-30    350.006  The provisions of NRS 350.001 to 350.0052, inclusive, do not

7-31  apply to:

7-32    1.  Any general obligation debt incurred or special elective tax levied

7-33  before July 1, 1995;

7-34    2.  Any general obligation debt or special elective tax approved at an

7-35  election held before July 1, 1995, whether or not the debt is incurred or tax

7-36  is levied before that date;

7-37    3.  Any general obligation debt authorized to be incurred, or special

7-38  elective tax authorized to be levied, by a special act adopted and approved

7-39  before July 1, 1995; [and]

7-40    4.  Any debt incurred for the purpose of refunding any outstanding

7-41  general obligation debt[.] ; and

7-42    5.  Any medium-term obligation, except a medium-term obligation

7-43  issued after July 1, 2001, by a general improvement district whose

7-44  population within its boundaries is less than 5,000.

7-45    Sec. 16.  NRS 350.020 is hereby amended to read as follows:

7-46    350.020  1.  Except as otherwise provided by subsections 3 and 4, if a

7-47  municipality proposes to issue or incur general obligations, the proposal

7-48  must be submitted to the electors of the municipality at a special election

8-1  called for that purpose or the next general municipal election or general

8-2  state election.

8-3    2.  Such a special election may be held:

8-4    (a) At any time, including, without limitation, on the date of a primary

8-5  municipal election or a primary state election, if the governing body of the

8-6  municipality determines, by a unanimous vote, that an emergency exists; or

8-7    (b) On the first Tuesday after the first Monday in June of an odd-

8-8  numbered year.

8-9  The determination made by the governing body is conclusive unless it is

8-10  shown that the governing body acted with fraud or a gross abuse of

8-11  discretion. An action to challenge the determination made by the governing

8-12  body must be commenced within 15 days after the governing body’s

8-13  determination is final. As used in this subsection, “emergency” means any

8-14  occurrence or combination of occurrences which requires immediate action

8-15  by the governing body of the municipality to prevent or mitigate a

8-16  substantial financial loss to the municipality or to enable the governing

8-17  body to provide an essential service to the residents of the municipality.

8-18    3.  If payment of a general obligation of the municipality is additionally

8-19  secured by a pledge of gross or net revenue of a project to be financed by

8-20  its issue, and the governing body determines, by an affirmative vote of

8-21  two-thirds of the members elected to the governing body, that the pledged

8-22  revenue will at least equal the amount required in each year for the

8-23  payment of interest and principal, without regard to any option reserved by

8-24  the municipality for early redemption, the municipality may, after a public

8-25  hearing, incur this general obligation without an election unless, within 60

8-26  days after publication of a resolution of intent to issue the bonds, a petition

8-27  is presented to the governing body signed by not less than 5 percent of the

8-28  registered voters of the municipality who together with any corporate

8-29  petitioners own not less than 2 percent in assessed value of the taxable

8-30  property of the municipality. Any member elected to the governing body

8-31  whose authority to vote is limited by charter, statute or otherwise may vote

8-32  on the determination required to be made by the governing body pursuant

8-33  to this subsection. The determination by the governing body becomes

8-34  conclusive on the last day for filing the petition. For the purpose of this

8-35  subsection, the number of registered voters must be determined as of the

8-36  close of registration for the last preceding general election and assessed

8-37  values must be determined from the next preceding final assessment roll.

8-38  An authorized corporate officer may sign such a petition whether or not he

8-39  is a registered voter. The resolution of intent need not be published in full,

8-40  but the publication must include the amount of the obligation and the

8-41  purpose for which it is to be incurred. Notice of the public hearing must be

8-42  published at least 10 days before the day of the hearing. The publications

8-43  must be made once in a newspaper of general circulation in the

8-44  municipality. When published, the notice of the public hearing must be at

8-45  least as large as 5 inches high by 4 inches wide.

8-46    4.  The board of trustees of a school district may issue general

8-47  obligation bonds which are not expected to result in an increase in the

8-48  existing property tax levy for the payment of bonds of the school district

8-49  without holding an election for each issuance of the bonds if the qualified

9-1  electors approve a question submitted by the board of trustees that

9-2  authorizes issuance of bonds for a period of 10 years after the date of

9-3  approval by the voters. If the question is approved, the board of trustees of

9-4  the school district may issue the bonds for a period of 10 years after the

9-5  date of approval by the voters, after obtaining the approval of the debt

9-6  management commission in the county in which the school district is

9-7  located and, in a county whose population is 100,000 or more, the approval

9-8  of the oversight panel for school facilities established pursuant to NRS

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

9-10  that the existing tax for debt service will at least equal the amount required

9-11  to pay the principal and interest on the outstanding general obligations of

9-12  the school district and the general obligations proposed to be issued. The

9-13  finding made by the board of trustees is conclusive in the absence of fraud

9-14  or gross abuse of discretion. As used in this subsection, “general

9-15  obligations” does not include medium-term obligations issued pursuant to

9-16  NRS [350.085] 350.087 to 350.095, inclusive.

9-17    5.  At the time of issuance of bonds authorized pursuant to subsection

9-18  4, the board of trustees shall establish a reserve account in its debt service

9-19  fund for payment of the outstanding bonds of the school district. The

9-20  reserve account must be established and maintained in an amount at least

9-21  equal to the lesser of the amount of principal and interest payments due on

9-22  all of the outstanding bonds of the school district in the next fiscal year or

9-23  10 percent of the outstanding principal amount of the outstanding bonds of

9-24  the school district. If the amount in the reserve account falls below the

9-25  amount required by this subsection:

9-26    (a) The board of trustees shall not issue additional bonds pursuant to

9-27  subsection 4 until the reserve account is restored to the level required by

9-28  this subsection; and

9-29    (b) The board of trustees shall apply all of the taxes levied by the school

9-30  district for payment of bonds of the school district that are not needed for

9-31  payment of the principal and interest on bonds of the school district in the

9-32  current fiscal year to restore the reserve account to the level required

9-33  pursuant to this subsection.

9-34    6.  A municipality may issue special or medium-term obligations

9-35  without an election.

9-36    Sec. 17.  NRS 350.087 is hereby amended to read as follows:

9-37    350.087  1.  If the public interest requires a medium-term obligation

9-38  [,] or installment-purchase agreement, the governing body of any local

9-39  government, by a resolution adopted by two-thirds of its members, may

9-40  authorize a medium-term obligation[.] or installment-purchase

9-41  agreement. For the purposes of the issuance of a medium-term obligation

9-42  pursuant to NRS 280.266, a metropolitan police committee on fiscal affairs

9-43  shall be deemed the governing body of a local government.

9-44    2.  The resolution must contain:

9-45    (a) A finding by the governing body that the public interest requires the

9-46  medium-term obligation[;] or installment-purchase agreement;

9-47    (b) A statement of the facts upon which the finding required pursuant to

9-48  paragraph (a) is based; [and]

9-49    (c) A statement that identifies:

10-1      (1) Each source of revenue of the local government that is anticipated

10-2  to be used to repay the medium-term obligation[;] or installment-

10-3  purchase agreement; and

10-4      (2) The dollar amount that is anticipated to be available to repay the

10-5  medium-term obligation or installment-purchase agreement from each

10-6  such source[.] ; and

10-7    (d) If the resolution is for an installment-purchase agreement with a

10-8  term of more than 10 years:

10-9      (1) A statement comparing the cost of installment-purchase

10-10  financing with other available methods of financing, including, without

10-11  limitation, financing with general obligation bonds or revenue bonds;

10-12  and

10-13     (2) If such statement concludes that installment-purchase financing

10-14  is more expensive than other available methods of financing, a statement

10-15  explaining the reasons for choosing installment-purchase financing

10-16  instead of a less expensive alternative.

10-17  3.  Except as otherwise provided in subsection 4, before the adoption of

10-18  any such resolution, the governing body shall publish notice of its intention

10-19  to act thereon in a newspaper of general circulation for at least one

10-20  publication. No vote may be taken upon the resolution until 10 days after

10-21  the publication of the notice. The cost of publication of the notice required

10-22  of an entity is a proper charge against its general fund.

10-23  4.  If such a resolution will be adopted by a metropolitan police

10-24  committee on fiscal affairs, the sheriff of the county in which the

10-25  metropolitan police department is located shall publish the notice required

10-26  pursuant to subsection 3.

10-27  Sec. 18.  NRS 350.089 is hereby amended to read as follows:

10-28  350.089  Except as otherwise provided in NRS 280.266 and 496.155:

10-29  1.  Upon the adoption by a local government of a resolution for a

10-30  medium-term obligation[,] or installment-purchase agreement, as

10-31  provided in NRS 350.087, [by a local government,] a certified copy thereof

10-32  must be forwarded to the executive director of the department of taxation.

10-33  As soon as is practicable, the executive director of the department of

10-34  taxation shall, after consideration of the tax structure of the local

10-35  government concerned, the probable ability of the local government to

10-36  repay the requested medium-term obligation or installment-purchase

10-37  agreement and the compliance of the local government with the applicable

10-38  provisions of law, including, without limitation, the provisions of chapter

10-39  354 of NRS, approve or disapprove the resolution in writing to the

10-40  governing board. No such resolution is effective until approved by the

10-41  executive director of the department of taxation. The written approval of

10-42  the executive director of the department of taxation must be recorded in the

10-43  minutes of the governing board.

10-44  2.  If the executive director of the department of taxation does not

10-45  approve the resolution for the medium-term obligation[,] or installment-

10-46  purchase agreement, the governing board of the local government may

10-47  appeal the executive director’s decision to the Nevada tax commission.

 

 

11-1    Sec. 19.  NRS 350.091 is hereby amended to read as follows:

11-2    350.091  1.  Whenever the governing body of any local government is

11-3  authorized to enter into a medium-term obligation or installment-purchase

11-4  agreement as provided in NRS 280.266 or 350.089[, the governing body:

11-5    (a) If the medium-term obligation] that is intended to finance a capital

11-6  project, the governing body shall update its plan for capital improvement

11-7  in the same manner as is required for general obligation debt pursuant to

11-8  NRS 350.0035.

11-9    [(b) May]

11-10  2.  Whenever the governing body of any local government is

11-11  authorized to enter into a medium-term obligation as provided in NRS

11-12  350.089, the governing body may issue, as evidence thereof, negotiable

11-13  notes[, leases, other evidence of a transaction described in NRS 350.800,

11-14  or short-time] or medium-term negotiable bonds[.

11-15  2.  Except] that, except as otherwise provided in subsection 5 of NRS

11-16  496.155 : [, the negotiable notes or bonds:]

11-17  (a) Must mature not later than 10 years after the date of issuance ; [.]

11-18  (b) Must bear interest at a rate or rates which do not exceed by more

11-19  than 3 percent the Index of Twenty Bonds which was most recently

11-20  published before the bids are received or a negotiated offer is accepted[.] ;

11-21  and

11-22  (c) May, at the option of the local government, contain a provision

11-23  which allows redemption of the notes or bonds before maturity, upon such

11-24  terms as the governing body determines.

11-25  3.  Whenever the governing body of any local government is

11-26  authorized to enter into an installment-purchase agreement as provided

11-27  in NRS 280.266 or 350.089, the governing body may issue, as evidence

11-28  thereof, an installment-purchase agreement, lease or other evidence of a

11-29  transaction described in NRS 350.800. An installment-purchase

11-30  agreement, lease or other evidence of a transaction described in NRS

11-31  350.800 issued pursuant to this subsection:

11-32  (a) Must have a term that is 30 years or less;

11-33  (b) Must bear interest at a rate or rates that do not exceed by more

11-34  than 3 percent the Index of Revenue Bonds which was most recently

11-35  published before the local government enters into the installment-

11-36  purchase agreement; and

11-37  (c) May, at the option of the local government, contain a provision

11-38  that allows prepayment of the purchase price upon such terms as are

11-39  provided in the agreement.

11-40  4.  If the [maximum term of the financing is more than 5 years, the]

11-41  term of the medium-term obligation or installment-purchase agreement

11-42  is more than 5 years, the weighted average term of the medium-term

11-43  obligation or installment-purchase agreement may not exceed the

11-44  estimated weighted average useful life of the [asset to be purchased with

11-45  the proceeds from the financing.] assets being financed with the medium-

11-46  term obligation or installment-purchase agreement.

11-47  5.  For the purposes of subsection 4, the committee on local

11-48  government finance may adopt regulations that provide guidelines for

12-1  the useful life of various types of assets and for calculation of the

12-2  weighted average useful life of assets.

12-3    Sec. 20.  NRS 350.093 is hereby amended to read as follows:

12-4    350.093  1.  After a medium-term obligation has been authorized as

12-5  provided in NRS 350.089 and if, in the judgment of the governing board of

12-6  the local government, the fiscal affairs of the local government can be

12-7  carried on without impairment and there is sufficient money in the general

12-8  fund or a surplus in any other fund, with the exception of the bond interest

12-9  and redemption fund, of the local government, the governing board may

12-10  transfer from the general fund or from the surplus appearing in any fund,

12-11  with the exception of the bond interest and redemption fund, money

12-12  sufficient to meet the purpose of the medium-term obligation.

12-13  2.  When such a transfer is made, the governing board of the local

12-14  government shall comply with the provisions of NRS 350.095, and when

12-15  the special tax is thereafter collected, the amount so collected must be

12-16  placed immediately in the fund from which the loan was made.

12-17  3.  In cases where the fund from which the loan was made, at the time

12-18  of the transfer of funds therefrom, contains a surplus that in the judgment

12-19  of the executive director of the department of taxation is or will not be

12-20  needed for the purposes of the fund in the ordinary course of events, the

12-21  special tax need not be levied, collected and placed in the fund from which

12-22  the loan was made, but the transfer shall be deemed refunded for all

12-23  purposes of NRS [350.085] 350.087 to 350.095, inclusive.

12-24  Sec. 21.  NRS 350.115 is hereby amended to read as follows:

12-25  350.115  “Bond” means any evidence of [indebtedness of] borrowing

12-26  by a municipality that is issued pursuant to the provisions of this chapter or

12-27  chapter 244, 244A, 268, 269, 271, 318[, 354] or 387 of NRS, whether

12-28  general or special obligations, including, without limitation, bonds, notes,

12-29  debentures, warrants and certificates.

12-30  Sec. 22.  NRS 350.800 is hereby amended to read as follows:

12-31  350.800  1.  A transaction whereby a municipality acquires real or

12-32  personal property and another person acquires or retains a security interest

12-33  in that or other property creates a general obligation of the municipality

12-34  which must be counted against any limit upon its debt unless:

12-35  (a) The obligation by its terms is extinguished by failure of the

12-36  governing body to appropriate money for the ensuing fiscal year for

12-37  payment of the amounts then due; or

12-38  (b) The budget of the municipality for the fiscal year in which the

12-39  transaction occurs includes a provision for the discharge of the obligation

12-40  in full.

12-41  2.  Any member of the governing body may vote upon such a

12-42  transaction whether or not the obligation incurred is expected to extend

12-43  beyond his term of office, without any special notice or other formality.

12-44  3.  Any such transaction is subject to the requirements of this chapter

12-45  for an election if it must be counted against a debt limit, but , except as

12-46  otherwise provided in NRS 350.001 to 350.006, inclusive, and 350.087 to

12-47  350.095, inclusive, is not subject to any other requirement of this chapter.

12-48  4.  In addition to or as a substitute for granting a security interest in the

12-49  property being acquired in a transaction described in subsection 1, the

13-1  municipality may grant a security interest in other property if the governing

13-2  body finds that:

13-3    (a) Granting the security interest in the other property will result in

13-4  lower financing costs to the municipality; and

13-5    (b) The value of all property in which a security interest is granted does

13-6  not, at the time the security interest is granted, exceed an amount equal

13-7  to one and one-half times the value of the property being

13-8  acquired.

13-9  The finding and determination of values by the governing body are

13-10  conclusive in the absence of fraud or gross abuse of discretion.

13-11  Sec. 23.  NRS 104.9109 is hereby amended to read as follows:

13-12  104.9109  1.  Except as otherwise provided in subsections 3 and 4,

13-13  this article applies to:

13-14  (a) A transaction, regardless of its form, that creates a security interest

13-15  in personal property or fixtures by contract;

13-16  (b) An agricultural lien;

13-17  (c) A sale of accounts, chattel paper, payment intangibles or promissory

13-18  notes;

13-19  (d) A consignment;

13-20  (e) A security interest arising under NRS 104.2401, 104.2505,

13-21  subsection 3 of NRS 104.2711[,] or subsection 5 of NRS 104A.2508, as

13-22  provided in NRS 104.9110; and

13-23  (f) A security interest arising under NRS 104.4210 or 104.5118.

13-24  2.  The application of this article to a security interest in a secured

13-25  obligation is not affected by the fact that the obligation is itself secured by

13-26  a transaction or interest to which this article does not apply.

13-27  3.  This article does not apply to the extent that:

13-28  (a) A statute, regulation or treaty of the United States preempts this

13-29  article;

13-30  [(b) Another statute of this state expressly governs the creation,

13-31  perfection, priority or enforcement of a security interest created by this

13-32  state or a governmental unit of this state;

13-33  (c) A statute of another state, a foreign country, or a governmental unit

13-34  of another state or a foreign country, other than a statute generally

13-35  applicable to security interests, expressly governs creation, perfection,

13-36  priority, or enforcement of a security interest created by the state, country,

13-37  or governmental unit; or

13-38  (d)] or

13-39  (b) The rights of a transferee beneficiary or nominated person under a

13-40  letter of credit are independent and superior under NRS 104.5114.

13-41  4.  This article does not apply to:

13-42  (a) A landlord’s lien, other than an agricultural lien;

13-43  (b) A lien, other than an agricultural lien, given by statute or other rule

13-44  of law for services or materials, but NRS 104.9333 applies with respect to

13-45  priority of the lien;

13-46  (c) An assignment of a claim for wages, salary or other compensation of

13-47  an employee;

13-48  (d) A sale of accounts, chattel paper, payment intangibles or promissory

13-49  notes as part of a sale of the business out of which they arose;

14-1    (e) An assignment of accounts, chattel paper, payment intangibles or

14-2  promissory notes which is for the purpose of collection only;

14-3    (f) An assignment of a right to payment under a contract to an assignee

14-4  that is also obligated to perform under the contract;

14-5    (g) An assignment of a single account, payment intangible or

14-6  promissory note to an assignee in full or partial satisfaction of a preexisting

14-7  indebtedness;

14-8    (h) A transfer of an interest in or an assignment of a claim under a

14-9  policy of insurance, other than an assignment by or to a health-care

14-10  provider of a health-care-insurance receivable and any subsequent

14-11  assignment of the right to payment, but NRS 104.9315 and 104.9322 apply

14-12  with respect to proceeds and priorities in proceeds;

14-13  (i) An assignment of a right represented by a judgment, other than a

14-14  judgment taken on a right to payment that was collateral;

14-15  (j) A right of recoupment or set-off, but:

14-16     (1) NRS 104.9340 applies with respect to the effectiveness of rights

14-17  of recoupment or set-off against deposit accounts; and

14-18     (2) NRS 104.9404 applies with respect to defenses or claims of an

14-19  account debtor;

14-20  (k) The creation or transfer of an interest in or lien on real property,

14-21  including a lease or rents thereunder, except to the extent that provision is

14-22  made for:

14-23     (1) Liens on real property in NRS 104.9203 and 104.9308;

14-24     (2) Fixtures in NRS 104.9334;

14-25     (3) Fixture filings in NRS 104.9501, 104.9502, 104.9512, 104.9516

14-26  and 104.9519; and

14-27     (4) Security agreements covering personal and real property in NRS

14-28  104.9604;

14-29  (l) An assignment of a claim arising in tort, other than a commercial tort

14-30  claim, but NRS 104.9315 and 104.9322 apply with respect to proceeds and

14-31  priorities in proceeds; [or]

14-32  (m) An assignment of a deposit account in a consumer transaction, but

14-33  NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities

14-34  in proceeds[.] ; or

14-35  (n) A transfer by a government or governmental unit.

14-36  Sec. 24.  NRS 233B.062 is hereby amended to read as follows:

14-37  233B.062  1.  It is the policy of this state that every regulation of an

14-38  agency be made easily accessible to the public and expressed in clear and

14-39  concise language. To assist in carrying out this policy:

14-40  (a) The attorney general must develop guidelines for drafting

14-41  regulations; and

14-42  (b) Every permanent regulation must be incorporated, excluding any

14-43  forms used by the agency, any publication adopted by reference, the title,

14-44  any signature and other formal parts, in the Nevada Administrative Code,

14-45  and every emergency or temporary regulation must be distributed in the

14-46  same manner as the Nevada Administrative Code.

14-47  2.  The legislative counsel shall treat regulations adopted by entities

14-48  other than agencies, in the same manner as regulations adopted by

15-1  agencies if the entity is required by statute to adopt the regulation in the

15-2  manner prescribed by this chapter.

15-3    3.  The legislative commission may authorize inclusion in the Nevada

15-4  Administrative Code of the regulations of an agency otherwise exempted

15-5  from the requirements of this chapter.

15-6    Sec. 25-27.  (Deleted by amendment.)

15-7    Sec. 28.  NRS 244.3661 is hereby amended to read as follows:

15-8    244.3661  1.  Except as otherwise provided in NRS 704.664, a board

15-9  of county commissioners may, by ordinance, impose an excise tax on the

15-10  use of water in an amount sufficient to ensure the payment, wholly or in

15-11  part, of obligations incurred by the county to acquire and construct a new

15-12  facility for the treatment of water for public or private use, or both. The tax

15-13  must be imposed on customers of suppliers of water that are capable of

15-14  using the water treatment services provided by the facility to be financed

15-15  with the proceeds of the tax.

15-16  2.  An excise tax imposed pursuant to subsection 1 may be levied at

15-17  different rates for different classes of customers or to take into account

15-18  differences in the amount of water used or estimated to be used or the size

15-19  of the connection.

15-20  3.  The ordinance imposing the tax must provide the:

15-21  (a) Rate or rates of the tax;

15-22  (b) Procedure for collection of the tax;

15-23  (c) Duration of the tax; and

15-24  (d) Rate of interest that will be charged on late payments.

15-25  4.  Late payments of the tax must bear interest at a rate not exceeding 2

15-26  percent per month, or fraction thereof. The tax due is a perpetual lien

15-27  against the property served by the water on whose use the tax is imposed

15-28  until the tax and any interest which may accrue thereon are paid. The

15-29  county shall enforce the lien in the same manner as provided in NRS

15-30  [361.565] 361.5648 to 361.730, inclusive, for property taxes.

15-31  5.  A county may:

15-32  (a) Acquire and construct a new facility for the treatment of water for

15-33  public or private use, or both.

15-34  (b) Finance the project by the issuance of general obligation bonds,

15-35  medium-term obligations or revenue bonds or other securities issued

15-36  pursuant to chapter 350 of NRS, or by [installment purchase] installment-

15-37  purchase financing pursuant to [NRS 350.800.] that chapter.

15-38  (c) Enter into an agreement with a public utility which provides that:

15-39     (1) Water treatment services provided by the facility will be made

15-40  available to the public utility; or

15-41     (2) The public utility will operate and maintain the facility,

15-42  or both. An agreement entered into pursuant to this paragraph may extend

15-43  beyond the terms of office of the members of the board of county

15-44  commissioners who voted upon it.

15-45  6.  A county may pledge any money received from the proceeds of a

15-46  tax imposed pursuant to this section for the payment of general or special

15-47  obligations issued for a new facility for the treatment of water for public or

15-48  private use, or both. Any money pledged by the county pursuant to this

16-1  subsection may be treated as pledged revenues of the project for the

16-2  purposes of subsection 3 of NRS 350.020.

16-3    7.  As used in this section, “public utility” has the meaning ascribed to

16-4  it in NRS 704.020 and does not include the persons excluded by NRS

16-5  704.030.

16-6    Sec. 29.  NRS 280.266 is hereby amended to read as follows:

16-7    280.266  1.  Upon the adoption of a resolution pursuant to NRS

16-8  350.087, the committee may issue a medium-term obligation to purchase

16-9  capital equipment or enter into a lease-purchase agreement for capital

16-10  equipment.

16-11  2.  The committee is not required to comply with the provisions of

16-12  NRS 350.089 if it [issues a medium-term obligation for] enters a lease-

16-13  purchase agreement for capital equipment.

16-14  Sec. 30.  Chapter 354 of NRS is hereby amended by adding thereto the

16-15  provisions set forth as sections 31 and 32 of this act.

16-16  Sec. 31.  1.  The committee on local government finance may adopt

16-17  such regulations as are necessary for the administration of this chapter.

16-18  2.  Any regulations adopted by the committee on local government

16-19  finance must be adopted in the manner prescribed for state agencies in

16-20  chapter 233B of NRS.

16-21  Sec. 32.  The proceeds from any obligation issued by a local

16-22  government that has a term which is more than 1 year must not be used

16-23  to pay operating expenses, except that:

16-24  1.  The proceeds of any obligation issued to construct or acquire a

16-25  facility may be used to pay operating expenses for the period provided in

16-26  subsection 7 of NRS 350.516.

16-27  2.  The proceeds of a medium-term obligation issued by a local

16-28  government with respect to which the Nevada tax commission has

16-29  determined that a financial emergency exists pursuant to NRS 354.685

16-30  may be used to pay operating expenses with the approval of the executive

16-31  director of the department of taxation.

16-32  Sec. 33.  NRS 354.475 is hereby amended to read as follows:

16-33  354.475  1.  All special districts subject to the provisions of the Local

16-34  Government Budget Act with annual total expenditures of less than

16-35  $100,000 may petition the department of taxation for exemption from the

16-36  requirements of the Local Government Budget Act for the filing of certain

16-37  budget documents and audit reports. Such districts may further petition to

16-38  return to a cash method of accounting. The minimum required of such

16-39  districts is the filing with the department of taxation of an annual budget on

16-40  or before April 15 of each year and the filing of quarterly reports in

16-41  accordance with NRS 354.602. Such petitions must be received by the

16-42  department of taxation before December 31 to be effective for the

16-43  succeeding fiscal year or, in a case of an annual audit exemption, to be

16-44  effective for the current fiscal year. A board of county commissioners may

16-45  request the department of taxation to audit the financial records of such an

16-46  exempt district.

16-47  2.  Such districts are exempt from all publication requirements of the

16-48  Local Government Budget Act, except that the department of taxation by

16-49  regulation shall require an annual publication of a notice of budget

17-1  adoption and filing. The [department of taxation] committee on local

17-2  government finance shall adopt regulations pursuant to NRS 354.594

17-3  which are necessary to carry out the purposes of this section.

17-4    3.  The revenue recorded in accounts that are kept on a cash basis must

17-5  consist of cash items.

17-6    4.  As used in this section, “cash basis” means the system of accounting

17-7  under which revenues are recorded only when received and expenditures or

17-8  expenses are recorded only when paid.

17-9    Sec. 34.  NRS 354.535 is hereby amended to read as follows:

17-10  354.535  “General long-term debt” means debt which is legally payable

17-11  from general revenues and is backed by the full faith and credit of a

17-12  governmental unit. The term includes debt represented by local

17-13  government securities issued pursuant to chapter 350 of NRS and debt

17-14  created for medium-term obligations pursuant to NRS [350.085] 350.087

17-15  to 350.095, inclusive.

17-16  Sec. 35.  NRS 354.594 is hereby amended to read as follows:

17-17  354.594  The [department of taxation] committee on local government

17-18  finance shall determine and advise local government officers of

17-19  regulations, procedures and report forms for compliance with NRS 354.470

17-20  to 354.626, inclusive. [It shall make such determinations after hearing the

17-21  advice and recommendations of the committee on local government

17-22  finance.]

17-23  Sec. 36.  NRS 354.598 is hereby amended to read as follows:

17-24  354.598  1.  At the time and place advertised for public hearing, or at

17-25  any time and place to which the public hearing is from time to time

17-26  adjourned, the governing body shall hold a public hearing on the tentative

17-27  budget, at which time interested persons must be given an opportunity to

17-28  be heard.

17-29  2.  At the public hearing, the governing body shall indicate changes, if

17-30  any, to be made in the tentative budget, and shall adopt a final budget by

17-31  the favorable votes of a majority of all members of the governing body.

17-32  Except as otherwise provided in this subsection, the final budget must be

17-33  adopted on or before June 1 of each year. The final budgets of school

17-34  districts must be adopted on or before June 8 of each year and must be

17-35  accompanied by copies of the written report and written procedure

17-36  prepared pursuant to subsection 3 of NRS 385.351. Should the governing

17-37  body fail to adopt a final budget that complies with the requirements of law

17-38  and the regulations of the [department of taxation] committee on local

17-39  government finance on or before the required date, the budget adopted and

17-40  approved by the department of taxation for the current year, adjusted as to

17-41  content and rate in such a manner as the department of taxation may

17-42  consider necessary, automatically becomes the budget for the ensuing

17-43  fiscal year. When a budget has been so adopted by default, the governing

17-44  body may not reconsider the budget without the express approval of the

17-45  department of taxation. If the default budget creates a combined ad

17-46  valorem tax rate in excess of the limit imposed by NRS 361.453, the

17-47  Nevada tax commission shall adjust the budget as provided in NRS

17-48  361.4547 or 361.455.

18-1    3.  The final budget must be certified by a majority of all members of

18-2  the governing body and a copy of it, together with an affidavit of proof of

18-3  publication of the notice of the public hearing, must be transmitted to the

18-4  Nevada tax commission. If a tentative budget is adopted by default as

18-5  provided in subsection 2, the clerk of the governing body shall certify the

18-6  budget and transmit to the Nevada tax commission a copy of the budget,

18-7  together with an affidavit of proof of the notice of the public hearing, if

18-8  that notice was published. Certified copies of the final budget must be

18-9  distributed as determined by the department of taxation.

18-10  4.  Upon the adoption of the final budget or the amendment of the

18-11  budget in accordance with NRS 354.606, the several amounts stated in it as

18-12  proposed expenditures are appropriated for the purposes indicated in the

18-13  budget.

18-14  5.  No governing body may adopt any budget which appropriates for

18-15  any fund any amount in excess of the budget resources of that fund.

18-16  6.  On or before January 1 of each school year, each school district

18-17  shall adopt an amendment to its final budget after the count of pupils is

18-18  completed pursuant to subsection 1 of NRS 387.1233. The amendment

18-19  must reflect any adjustments necessary as a result of the completed count

18-20  of pupils.

18-21  Sec. 37.  NRS 354.59811 is hereby amended to read as follows:

18-22  354.59811  1.  Except as otherwise provided in NRS 354.59813,

18-23  354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425,

18-24  450.760, 540A.265 and 543.600, for each fiscal year beginning on or after

18-25  July 1, 1989, the maximum amount of money that a local government,

18-26  except a school district, a district to provide a telephone number for

18-27  emergencies[,] or a redevelopment agency, may receive from taxes ad

18-28  valorem, other than those attributable to the net proceeds of minerals or

18-29  those levied for the payment of bonded indebtedness and interest thereon

18-30  incurred as general long-term debt of the issuer, or for the payment of

18-31  obligations issued to pay the cost of a water project pursuant to NRS

18-32  349.950, or for the payment of obligations under a capital lease executed

18-33  before April 30, 1981, must be calculated as follows:

18-34  (a) The rate must be set so that when applied to the current fiscal year’s

18-35  assessed valuation of all property which was on the preceding fiscal year’s

18-36  assessment roll, together with the assessed valuation of property on the

18-37  central assessment roll which was allocated to the local government, but

18-38  excluding any assessed valuation attributable to the net proceeds of

18-39  minerals, assessed valuation attributable to a redevelopment area and

18-40  assessed valuation of a fire protection district attributable to real property

18-41  which is transferred from private ownership to public ownership for the

18-42  purpose of conservation, it will produce 106 percent of the maximum

18-43  revenue allowable from taxes ad valorem for the preceding fiscal year,

18-44  except that the rate so determined must not be less than the rate allowed for

18-45  the previous fiscal year, except for any decrease attributable to the

18-46  imposition of a tax pursuant to NRS 354.59813 in the previous year.

18-47  (b) This rate must then be applied to the total assessed valuation,

18-48  excluding the assessed valuation attributable to the net proceeds of

18-49  minerals and the assessed valuation of a fire protection district attributable

19-1  to real property which is transferred from private ownership to public

19-2  ownership for the purpose of conservation , but including new real

19-3  property, possessory interests and mobile homes, for the current fiscal year

19-4  to determine the allowed revenue from taxes ad valorem for the local

19-5  government.

19-6    2.  As used in this section, “general long-term debt” does not include

19-7  debt created for medium-term obligations pursuant to NRS [350.085]

19-8  350.087 to 350.095, inclusive.

19-9    Sec. 38.  NRS 354.59817 is hereby amended to read as follows:

19-10  354.59817  1.  In addition to the allowed revenue from taxes ad

19-11  valorem determined pursuant to NRS 354.59811, upon the approval of a

19-12  majority of the registered voters of a county voting upon the question, the

19-13  board of county commissioners may levy a tax ad valorem on all taxable

19-14  property in the county at a rate not to exceed 15 cents per $100 of the

19-15  assessed valuation of the county. A tax must not be levied pursuant to this

19-16  section for more than 10 years.

19-17  2.  The board of county commissioners shall direct the county treasurer

19-18  to distribute quarterly the proceeds of any tax levied pursuant to the

19-19  provisions of this section among the county and the cities and towns within

19-20  that county in the proportion that the supplemental city-county relief tax

19-21  distribution factor of each of those local governments for the 1990-1991

19-22  fiscal year bears to the sum of the supplemental city-county relief tax

19-23  distribution factors of all of the local governments in the county for the

19-24  1990-1991 fiscal year.

19-25  3.  The board of county commissioners shall not reduce the rate of any

19-26  tax levied pursuant to the provisions of this section without the approval of

19-27  each of the local governments that receives a portion of the tax, except that,

19-28  if a local government declines to receive its portion of the tax in a

19-29  particular year the levy may be reduced by the amount that local

19-30  government would have received.

19-31  4.  The governing body of each local government that receives a

19-32  portion of the revenue from the tax levied pursuant to this section shall

19-33  establish a separate fund for capital projects for the purposes set forth in

19-34  this section. All interest and income earned on the money in the fund must

19-35  also be deposited in the fund. The money in the fund may only be used for:

19-36  (a) The purchase of capital assets including land, improvements to land

19-37  and major items of equipment;

19-38  (b) The construction or replacement of public works; and

19-39  (c) The renovation of existing governmental facilities, not including

19-40  normal recurring maintenance.

19-41  The money in the fund must not be used to finance the issuance or the

19-42  repayment of bonds or other obligations, including medium-term

19-43  obligations[.] and installment-purchase agreements.

19-44  5.  Money may be retained in the fund for not more than 10 years to

19-45  allow the funding of projects without the issuance of bonds or other

19-46  obligations. For the purpose of determining the length of time a deposit of

19-47  money has been retained in the fund, all money withdrawn from the fund

19-48  shall be deemed to be taken on a first-in, first-out basis. No money in the

19-49  fund at the end of the fiscal year may revert to any other fund, nor may the

20-1  money be a surplus for any other purpose than those specified in this

20-2  section.

20-3    6.  The annual budget and audit report of each local government must

20-4  specifically identify this fund and must indicate in detail the projects that

20-5  have been funded with money from the fund. Any planned accumulation of

20-6  the money in the fund must also be specifically identified.

20-7    7.  The projects on which money raised pursuant to this section will be

20-8  expended must be approved by the voters in the question submitted

20-9  pursuant to subsection 1 or in a separate question submitted on the ballot at

20-10  a [primary,] general or special election.

20-11  Sec. 39.  NRS 354.59891 is hereby amended to read as follows:

20-12  354.59891  1.  As used in this section:

20-13  (a) “Building permit basis” means the combination of the rate and the

20-14  valuation method used to calculate the total building permit fee.

20-15  (b) “Building permit” means the official document or certificate issued

20-16  by the building officer of a local government which authorizes the

20-17  construction of a structure.

20-18  (c) “Building permit fee” means the total fees that must be paid before

20-19  the issuance of a building permit, including without limitation, all permit

20-20  fees and inspection fees. The term does not include, without limitation, fees

20-21  relating to water, sewer or other utilities, residential construction tax, tax

20-22  for the improvement of transportation imposed pursuant to NRS 278.710,

20-23  any fee imposed pursuant to NRS 244.386 or any amount expended to

20-24  change the zoning of the property.

20-25  2.  Except as otherwise provided in subsections 3 and 4, a local

20-26  government shall not increase its building permit basis by more than an

20-27  amount equal to the building permit basis on June 30, 1989, multiplied by a

20-28  percentage equal to the percentage increase in the consumer price index

20-29  from January 1, 1988, to the January 1 next preceding the fiscal year for

20-30  which the calculation is made.

20-31  3.  A local government may submit an application to increase its

20-32  building permit basis by an amount greater than otherwise allowable

20-33  pursuant to subsection 2 to the Nevada tax commission. The Nevada tax

20-34  commission may allow the increase only if it finds that:

20-35  (a) Emergency conditions exist which impair the ability of the local

20-36  government to perform the basic functions for which it was created; or

20-37  (b) The building permit basis of the local government is substantially

20-38  below that of other local governments in the state and the cost of providing

20-39  the services associated with the issuance of building permits in the

20-40  previous fiscal year exceeded the total revenue received from building

20-41  permit fees, excluding any amount of residential construction tax collected,

20-42  for that fiscal year.

20-43  4.  Upon application by a local government, the Nevada tax

20-44  commission shall exempt the local government from the limitation on the

20-45  increase of its building permit basis if:

20-46  (a) The local government creates an enterprise fund exclusively for fees

20-47  for building permits;

20-48  (b) Any interest or other income earned on the money in the enterprise

20-49  fund is credited to the fund; and

21-1    (c) The local government does not use any of the money in the

21-2  enterprise fund for any purpose other than the actual direct and indirect

21-3  costs of the program for the issuance of building permits, including without

21-4  limitation, the cost of checking plans, issuing permits, inspecting buildings

21-5  and administering the program. The [executive director of the department

21-6  of taxation] committee on local government finance shall adopt

21-7  regulations governing the permissible expenditures from an enterprise fund

21-8  pursuant to this paragraph.

21-9    Sec. 40.  NRS 354.6105 is hereby amended to read as follows:

21-10  354.6105  1.  A local government [in a county whose population is

21-11  100,000 or more shall] may establish a fund for the extraordinary

21-12  maintenance, repair or improvement of capital projects. [The local

21-13  government shall establish within that fund a separate account for each

21-14  capital project it undertakes, except a capital project for the:

21-15  (a) Construction of public roads;

21-16  (b) Control of floods; or

21-17  (c) Transmission or treatment of water, waste water or sewerage.

21-18  The local government shall allocate an amount equal to one-half of 1

21-19  percent of the total amount of the bonds sold for each capital project and

21-20  deposit that amount in the separate account established for that capital

21-21  project. The proceeds from the sale of those bonds or any other money of

21-22  the local government may be used to carry out the provisions of this

21-23  subsection.]

21-24  2.  Any interest and income earned on the money in [an account within]

21-25  the fund in excess of any amount which is reserved for rebate payments to

21-26  the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is

21-27  otherwise required to be applied in a specific manner by the Internal

21-28  Revenue Code of 1986, as amended, must be credited to [that account.

21-29  3.  The] the fund.

21-30  3.  Except as otherwise provided in NRS 374A.020, the money in

21-31  [each account within] the fund may be used only for the extraordinary

21-32  maintenance, repair or improvement of [the capital project or a facility

21-33  which replaces that capital project.] capital projects or facilities that

21-34  replace capital projects of the entity that made the deposits in the fund.

21-35  The money in [each account within] the fund at the end of the fiscal year

21-36  may not revert to any other fund or be a surplus for any purpose other than

21-37  the purpose specified in this subsection. [If the local government sells any

21-38  capital project for which an account within the fund was established, any

21-39  balance remaining in that account must be used to reduce the debt of the

21-40  local government.

21-41  4.  The annual budget and audit report of the local government

21-42  prepared pursuant to NRS 354.624 must specifically identify:

21-43  (a) Each fund and every account within that fund established pursuant

21-44  to this section and indicate in detail any extraordinary maintenance, repairs

21-45  or improvements of the capital project that have been paid for with money

21-46  from the fund; and

21-47  (b) Any planned accumulation of money in each fund and every account

21-48  within the fund.

22-1  The audit report must include a statement by the auditor whether the local

22-2  government has complied with the provisions of this subsection.]

22-3    4.  As used in this section, “extraordinary maintenance, repair or

22-4  improvement” means all expenses ordinarily incurred not more than

22-5  once every 5 years to maintain a local governmental facility or capital

22-6  project in a fit operating condition.

22-7    Sec. 41.  NRS 354.6116 is hereby amended to read as follows:

22-8    354.6116  A local government, except a school district, that receives

22-9  revenue from taxes ad valorem from a lessee or user of property which is

22-10  taxable pursuant to NRS 361.157 or 361.159 shall deposit the revenue in or

22-11  transfer the revenue to one or more of the funds established by the local

22-12  government pursuant to NRS [354.611,] 354.6113 or 354.6115 and use that

22-13  revenue only for the purposes authorized by those sections if the revenue

22-14  was received in:

22-15  1.  A fiscal year after the fiscal year the taxes were owed; or

22-16  2.  The fiscal year the taxes are owed and the taxes were excluded from

22-17  the estimate of revenue from taxes ad valorem for the local government

22-18  pursuant to NRS 354.597.

22-19  Sec. 42.  NRS 354.6117 is hereby amended to read as follows:

22-20  354.6117  1.  Except as otherwise provided in subsection 2, the total

22-21  amount of money which may be transferred in a fiscal year from the

22-22  general fund of a local government to the funds established pursuant to

22-23  NRS [354.611,] 354.6113 and 354.6115 must not exceed 10 percent of the

22-24  total amount of the budgeted expenditures of the general fund, plus any

22-25  money transferred from the general fund, other than the money transferred

22-26  to those funds, for that fiscal year.

22-27  2.  Any money that a local government, pursuant to NRS 354.6116,

22-28  deposits in or transfers to one or more of the funds established by the local

22-29  government pursuant to NRS [354.611,] 354.6113 or 354.6115:

22-30  (a) Is not subject to the limitation on the amount of money that a local

22-31  government may transfer to those funds pursuant to subsection 1.

22-32  (b) Must not be included in the determination of the total amount of

22-33  money transferred to those funds for the purposes of the limitation set forth

22-34  in subsection 1.

22-35  Sec. 43.  NRS 354.626 is hereby amended to read as follows:

22-36  354.626  1.  No governing body or member thereof, officer, office,

22-37  department or agency may, during any fiscal year, expend or contract to

22-38  expend any money or incur any liability, or enter into any contract which

22-39  by its terms involves the expenditure of money, in excess of the amounts

22-40  appropriated for that function, other than bond repayments, medium-term

22-41  obligation repayments, and any other long-term contract expressly

22-42  authorized by law. Any officer or employee of a local government who

22-43  willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a

22-44  misdemeanor, and upon conviction thereof ceases to hold his office or

22-45  employment. Prosecution for any violation of this section may be

22-46  conducted by the attorney general, or, in the case of incorporated cities,

22-47  school districts or special districts, by the district attorney.

22-48  2.  Without limiting the generality of the exceptions contained in

22-49  subsection 1, the provisions of this section specifically do not apply to:

23-1    (a) Purchase of comprehensive general liability policies of insurance

23-2  which require an audit at the end of the term thereof.

23-3    (b) Long-term cooperative agreements as authorized by chapter 277 of

23-4  NRS.

23-5    (c) Long-term contracts in connection with planning and zoning as

23-6  authorized by NRS 278.010 to 278.630, inclusive.

23-7    (d) Long-term contracts for the purchase of utility service such as, but

23-8  not limited to, heat, light, sewerage, power, water and telephone service.

23-9    (e) Contracts between a local government and an employee covering

23-10  professional services to be performed within 24 months following the date

23-11  of such contract or contracts entered into between local government

23-12  employers and employee organizations.

23-13  (f) Contracts between a local government and any person for the

23-14  construction or completion of public works, money for which has been or

23-15  will be provided by the proceeds of a sale of bonds , [or] medium-term

23-16  obligations or an installment-purchase agreement and that are entered

23-17  into by the local government after:

23-18     (1) Any election required for the approval of the bonds or

23-19  installment-purchase agreement has been held;

23-20     (2) Any approvals by any other governmental entity required to be

23-21  obtained before the bonds , [or] medium-term obligations or installment-

23-22  purchase agreement can be issued have been obtained; and

23-23     (3) The ordinance or resolution that specifies each of the terms of the

23-24  bonds , [or] medium-term obligations[,] or installment-purchase

23-25  agreement, except those terms that are set forth in paragraphs (a) to (e),

23-26  inclusive, of subsection 2 of NRS 350.165, has been adopted.

23-27  Neither the fund balance of a governmental fund nor the equity balance in

23-28  any proprietary fund may be used unless appropriated in a manner

23-29  provided by law.

23-30  (g) Contracts which are entered into by a local government and

23-31  delivered to any person solely for the purpose of acquiring supplies and

23-32  equipment necessarily ordered in the current fiscal year for use in an

23-33  ensuing fiscal year, and which, under the method of accounting adopted by

23-34  the local government, will be charged against an appropriation of a

23-35  subsequent fiscal year. Purchase orders evidencing such contracts are

23-36  public records available for inspection by any person on demand.

23-37  (h) Long-term contracts for the furnishing of television or FM radio

23-38  broadcast translator signals as authorized by NRS 269.127.

23-39  (i) The receipt and proper expenditure of money received pursuant to a

23-40  grant awarded by an agency of the Federal Government.

23-41  (j) The incurrence of obligations beyond the current fiscal year under a

23-42  lease or contract for installment purchase which contains a provision that

23-43  the obligation incurred thereby is extinguished by the failure of the

23-44  governing body to appropriate money for the ensuing fiscal year for the

23-45  payment of the amounts then due.

23-46  Sec. 44.  NRS 354.705 is hereby amended to read as follows:

23-47  354.705  1.  As soon as practicable after the department takes over the

23-48  management of a local government, the executive director shall:

24-1    (a) Determine the total amount of expenditures necessary to allow the

24-2  local government to perform the basic functions for which it was created;

24-3    (b) Determine the amount of revenue reasonably expected to be

24-4  available to the local government; and

24-5    (c) Consider any alternative sources of revenue available to the local

24-6  government.

24-7    2.  If the executive director determines that the available revenue is not

24-8  sufficient to provide for the payment of required debt service and operating

24-9  expenses, he may submit his findings to the committee who shall review

24-10  the determinations made by the executive director. If the committee

24-11  determines that additional revenue is needed, it shall prepare a

24-12  recommendation to the Nevada tax commission as to which one or more of

24-13  the following additional taxes or charges should be imposed by the local

24-14  government:

24-15  (a) The levy of a property tax up to a rate which when combined with

24-16  all other overlapping rates levied in the state does not exceed $4.50 on each

24-17  $100 of assessed valuation.

24-18  (b) An additional tax on transient lodging at a rate not to exceed 1

24-19  percent of the gross receipts from the rental of transient lodging within the

24-20  boundaries of the local government upon all persons in the business of

24-21  providing lodging. Any such tax must be collected and administered in the

24-22  same manner as all other taxes on transient lodging are collected by or for

24-23  the local government.

24-24  (c) Additional service charges appropriate to the local government.

24-25  (d) If the local government is a county or has boundaries that are

24-26  conterminous with the boundaries of the county:

24-27     (1) An additional tax on the gross receipts from the sale or use of

24-28  tangible personal property not to exceed one quarter of 1 percent

24-29  throughout the county. The ordinance imposing any such tax must include

24-30  provisions in substance which comply with the requirements of subsections

24-31  2 to 5, inclusive, of NRS 377A.030.

24-32     (2) An additional governmental services tax of not more than 1 cent

24-33  on each $1 of valuation of the vehicle for the privilege of operating upon

24-34  the public streets, roads and highways of the county on each vehicle based

24-35  in the county except those vehicles exempt from the governmental services

24-36  tax imposed pursuant to chapter 371 of NRS or a vehicle subject to NRS

24-37  706.011 to 706.861, inclusive, which is engaged in interstate or intercounty

24-38  operations. As used in this subparagraph, “based” has the meaning ascribed

24-39  to it in NRS 482.011.

24-40  3.  Upon receipt of the plan from the committee, a panel consisting of

24-41  three members of the committee appointed by the committee and three

24-42  members of the Nevada tax commission appointed by the Nevada tax

24-43  commission shall hold a public hearing at a location within the boundaries

24-44  of the local government in which the severe financial emergency exists

24-45  after giving public notice of the hearing at least 10 days before the date on

24-46  which the hearing will be held. In addition to the public notice, the

24-47  [Nevada tax commission] panel shall give notice to the governing body of

24-48  each local government whose jurisdiction overlaps with the jurisdiction of

24-49  the local government in which the severe financial emergency exists.

25-1    4.  After the public hearing[,] conducted pursuant to subsection 3, the

25-2  Nevada tax commission may adopt the plan as submitted or adopt a revised

25-3  plan. Any plan adopted pursuant to this section must include the duration

25-4  for which any new or increased taxes or charges may be collected which

25-5  must not exceed 5 years.

25-6    5.  Upon adoption of the plan by the Nevada tax commission, the local

25-7  government in which the severe financial emergency exists shall impose or

25-8  cause to be imposed the additional taxes and charges included in the plan

25-9  for the duration stated in the plan or until the severe financial emergency

25-10  has been determined by the Nevada tax commission to have ceased to

25-11  exist.

25-12  6.  The allowed revenue from taxes ad valorem determined pursuant to

25-13  NRS 354.59811 does not apply to any additional property tax levied

25-14  pursuant to this section.

25-15  Sec. 45.  NRS 355.170 is hereby amended to read as follows:

25-16  355.170  1.  Except as otherwise provided in this section and in NRS

25-17  354.750, a board of county commissioners, a board of trustees of a county

25-18  school district or the governing body of an incorporated city may purchase

25-19  for investment the following securities and no others:

25-20  (a) Bonds and debentures of the United States, the maturity dates of

25-21  which do not extend more than 10 years after the date of purchase.

25-22  (b) Farm loan bonds, consolidated farm loan bonds, debentures,

25-23  consolidated debentures and other obligations issued by federal land banks

25-24  and federal intermediate credit banks under the authority of the Federal

25-25  Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

25-26  to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

25-27  2259, inclusive, and bonds, debentures, consolidated debentures and other

25-28  obligations issued by banks for cooperatives under the authority of the

25-29  Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive,

25-30  and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.

25-31  (c) Bills and notes of the United States Treasury, the maturity date of

25-32  which is not more than 10 years after the date of purchase.

25-33  (d) Obligations of an agency or instrumentality of the United States of

25-34  America or a corporation sponsored by the government, the maturity date

25-35  of which is not more than 10 years after the date of purchase.

25-36  (e) Negotiable certificates of deposit issued by commercial banks,

25-37  insured credit unions or savings and loan associations.

25-38  (f) Securities which have been expressly authorized as investments for

25-39  local governments or agencies, as defined in NRS 354.474, by any

25-40  provision of Nevada Revised Statutes or by any special law.

25-41  (g) Subject to the limitations contained in NRS 355.177, negotiable

25-42  notes or [short-time negotiable bonds] medium-term obligations issued by

25-43  local governments of the State of Nevada pursuant to NRS [350.091.]

25-44  350.087 to 350.095, inclusive.

25-45  (h) Bankers’ acceptances of the kind and maturities made eligible by

25-46  law for rediscount with Federal Reserve Banks, and generally accepted by

25-47  banks or trust companies which are members of the Federal Reserve

25-48  System. Eligible bankers’ acceptances may not exceed 180 days’ maturity.

25-49  Purchases of bankers’ acceptances may not exceed 20 percent of the

26-1  money available to a local government for investment as determined on the

26-2  date of purchase.

26-3    (i) Obligations of state and local governments if:

26-4      (1) The interest on the obligation is exempt from gross income for

26-5  federal income tax purposes; and

26-6      (2) The obligation has been rated “A” or higher by one or more

26-7  nationally recognized bond credit rating agencies.

26-8    (j) Commercial paper issued by a corporation organized and operating

26-9  in the United States or by a depository institution licensed by the United

26-10  States or any state and operating in the United States that:

26-11     (1) Is purchased from a registered broker-dealer;

26-12     (2) At the time of purchase has a remaining term to maturity of no

26-13  more than 270 days; and

26-14     (3) Is rated by a nationally recognized rating service as “A-1,” “P-1”

26-15  or its equivalent, or better,

26-16  except that investments pursuant to this paragraph may not, in aggregate

26-17  value, exceed 20 percent of the total portfolio as determined on the date of

26-18  purchase, and if the rating of an obligation is reduced to a level that does

26-19  not meet the requirements of this paragraph, it must be sold as soon as

26-20  possible.

26-21  (k) Money market mutual funds which:

26-22     (1) Are registered with the Securities and Exchange Commission;

26-23     (2) Are rated by a nationally recognized rating service as “AAA” or

26-24  its equivalent; and

26-25     (3) Invest only in securities issued by the Federal Government or

26-26  agencies of the Federal Government or in repurchase agreements fully

26-27  collateralized by such securities.

26-28  2.  Repurchase agreements are proper and lawful investments of money

26-29  of a board of county commissioners, a board of trustees of a county school

26-30  district or a governing body of an incorporated city for the purchase or sale

26-31  of securities which are negotiable and of the types listed in subsection 1 if

26-32  made in accordance with the following conditions:

26-33  (a) The board of county commissioners, the board of trustees of the

26-34  school district or the governing body of the city shall designate in advance

26-35  and thereafter maintain a list of qualified counterparties which:

26-36     (1) Regularly provide audited and, if available, unaudited financial

26-37  statements;

26-38     (2) The board of county commissioners, the board of trustees of the

26-39  school district or the governing body of the city has determined to have

26-40  adequate capitalization and earnings and appropriate assets to be highly

26-41  [credit worthy;] creditworthy; and

26-42     (3) Have executed a written master repurchase agreement in a form

26-43  satisfactory to the board of county commissioners, the board of trustees of

26-44  the school district or the governing body of the city pursuant to which all

26-45  repurchase agreements are entered into. The master repurchase agreement

26-46  must require the prompt delivery to the board of county commissioners, the

26-47  board of trustees of the school district or the governing body of the city and

26-48  the appointed custodian of written confirmations of all transactions

27-1  conducted thereunder, and must be developed giving consideration to the

27-2  Federal Bankruptcy Act.

27-3    (b) In all repurchase agreements:

27-4      (1) At or before the time money to pay the purchase price is

27-5  transferred, title to the purchased securities must be recorded in the name

27-6  of the appointed custodian, or the purchased securities must be delivered

27-7  with all appropriate, executed transfer instruments by physical delivery to

27-8  the custodian;

27-9      (2) The board of county commissioners, the board of trustees of the

27-10  school district or the governing body of the city must enter a written

27-11  contract with the custodian appointed pursuant to subparagraph (1) which

27-12  requires the custodian to:

27-13        (I) Disburse cash for repurchase agreements only upon receipt of

27-14  the underlying securities;

27-15        (II) Notify the board of county commissioners, the board of

27-16  trustees of the school district or the governing body of the city when the

27-17  securities are marked to the market if the required margin on the agreement

27-18  is not maintained;

27-19        (III) Hold the securities separate from the assets of the custodian;

27-20  and

27-21        (IV) Report periodically to the board of county commissioners, the

27-22  board of trustees of the school district or the governing body of the city

27-23  concerning the market value of the securities;

27-24     (3) The market value of the purchased securities must exceed 102

27-25  percent of the repurchase price to be paid by the counterparty and the value

27-26  of the purchased securities must be marked to the market weekly;

27-27     (4) The date on which the securities are to be repurchased must not

27-28  be more than 90 days after the date of purchase; and

27-29     (5) The purchased securities must not have a term to maturity at the

27-30  time of purchase in excess of 10 years.

27-31  3.  The securities described in paragraphs (a), (b) and (c) of subsection

27-32  1 and the repurchase agreements described in subsection 2 may be

27-33  purchased when, in the opinion of the board of county commissioners, the

27-34  board of trustees of a county school district or the governing body of the

27-35  city, there is sufficient money in any fund of the county, the school district

27-36  or city to purchase those securities and the purchase will not result in the

27-37  impairment of the fund for the purposes for which it was created.

27-38  4.  When the board of county commissioners, the board of trustees of a

27-39  county school district or the governing body of the city has determined that

27-40  there is available money in any fund or funds for the purchase of bonds as

27-41  set out in subsection 1 or 2, those purchases may be made and the bonds

27-42  paid for out of any one or more of the funds, but the bonds must be

27-43  credited to the funds in the amounts purchased, and the money received

27-44  from the redemption of the bonds, as and when redeemed, must go back

27-45  into the fund or funds from which the purchase money was taken

27-46  originally.

27-47  5.  Any interest earned on money invested pursuant to subsection 3,

27-48  may, at the discretion of the board of county commissioners, the board of

27-49  trustees of a county school district or the governing body of the city, be

28-1  credited to the fund from which the principal was taken or to the general

28-2  fund of the county, school district or incorporated city.

28-3    6.  The board of county commissioners, the board of trustees of a

28-4  county school district or the governing body of an incorporated city may

28-5  invest any money apportioned into funds and not invested pursuant to

28-6  subsection 3 and any money not apportioned into funds in bills and notes

28-7  of the United States Treasury, the maturity date of which is not more than 1

28-8  year after the date of investment. These investments must be considered as

28-9  cash for accounting purposes, and all the interest earned on them must be

28-10  credited to the general fund of the county, school district or incorporated

28-11  city.

28-12  7.  This section does not authorize the investment of money

28-13  administered pursuant to a contract, debenture agreement or grant in a

28-14  manner not authorized by the terms of the contract, agreement or grant.

28-15  8.  As used in this section:

28-16  (a) “Counterparty” means a bank organized and operating or licensed to

28-17  operate in the United States pursuant to federal or state law or a securities

28-18  dealer which is:

28-19     (1) A registered broker-dealer;

28-20     (2) Designated by the Federal Reserve Bank of New York as a

28-21  “primary” dealer in United States government securities; and

28-22     (3) In full compliance with all applicable capital requirements.

28-23  (b) “Repurchase agreement” means a purchase of securities by a board

28-24  of county commissioners, the board of trustees of a county school district

28-25  or the governing body of an incorporated city from a counterparty which

28-26  commits to repurchase those securities or securities of the same issuer,

28-27  description, issue date and maturity on or before a specified date for a

28-28  specified price.

28-29  Sec. 46.  NRS 360.750 is hereby amended to read as follows:

28-30  360.750  1.  A person who intends to locate or expand a business in

28-31  this state may apply to the commission on economic development for a

28-32  partial abatement of one or more of the taxes imposed on the new or

28-33  expanded business pursuant to chapter 361, 364A or 374 of NRS.

28-34  2.  The commission on economic development shall approve an

28-35  application for a partial abatement if the commission makes the following

28-36  determinations:

28-37  (a) The business is consistent with:

28-38     (1) The state plan for industrial development and diversification that

28-39  is developed by the commission pursuant to NRS 231.067; and

28-40     (2) Any guidelines adopted pursuant to the state plan.

28-41  (b) The applicant has executed an agreement with the commission

28-42  which states that the business will, after the date on which a certificate of

28-43  eligibility for the abatement is issued pursuant to subsection 5, continue in

28-44  operation in this state for a period specified by the commission, which

28-45  must be at least 5 years, and will continue to meet the eligibility

28-46  requirements set forth in this subsection. The agreement must bind the

28-47  successors in interest of the business for the specified period.

29-1    (c) The business is registered pursuant to the laws of this state or the

29-2  applicant commits to obtain a valid business license and all other permits

29-3  required by the county, city or town in which the business operates.

29-4    (d) Except as otherwise provided in NRS 361.0687, if the business is a

29-5  new business in a county or city whose population is 50,000 or more, the

29-6  business meets at least two of the following requirements:

29-7      (1) The business will have 75 or more full-time employees on the

29-8  payroll of the business by the fourth quarter that it is in operation.

29-9      (2) Establishing the business will require the business to make a

29-10  capital investment of at least $1,000,000 in this state.

29-11     (3) The average hourly wage that will be paid by the new business to

29-12  its employees in this state is at least 100 percent of the average statewide

29-13  hourly wage as established by the employment security division of the

29-14  department of employment, training and rehabilitation on July 1 of each

29-15  fiscal year and:

29-16        (I) The business will provide a health insurance plan for all

29-17  employees that includes an option for health insurance coverage for

29-18  dependents of the employees; and

29-19        (II) The cost to the business for the benefits the business provides

29-20  to its employees in this state will meet the minimum requirements for

29-21  benefits established by the commission by regulation pursuant to

29-22  subsection 9.

29-23  (e) Except as otherwise provided in NRS 361.0687, if the business is a

29-24  new business in a county or city whose population is less than 50,000, the

29-25  business meets at least two of the following requirements:

29-26     (1) The business will have 25 or more full-time employees on the

29-27  payroll of the business by the fourth quarter that it is in operation.

29-28     (2) Establishing the business will require the business to make a

29-29  capital investment of at least $250,000 in this state.

29-30     (3) The average hourly wage that will be paid by the new business to

29-31  its employees in this state is at least 100 percent of the average statewide

29-32  hourly wage as established by the employment security division of the

29-33  department of employment, training and rehabilitation on July 1 of each

29-34  fiscal year and:

29-35        (I) The business will provide a health insurance plan for all

29-36  employees that includes an option for health insurance coverage for

29-37  dependents of the employees; and

29-38        (II) The cost to the business for the benefits the business provides

29-39  to its employees in this state will meet the minimum requirements for

29-40  benefits established by the commission by regulation pursuant to

29-41  subsection 9.

29-42  (f) If the business is an existing business, the business meets at least two

29-43  of the following requirements:

29-44     (1) The business will increase the number of employees on its payroll

29-45  by 10 percent more than it employed in the immediately preceding fiscal

29-46  year or by six employees, whichever is greater.

29-47     (2) The business will expand by making a capital investment in this

29-48  state in an amount equal to at least 20 percent of the value of the tangible

29-49  property possessed by the business in the immediately preceding fiscal

30-1  year. The determination of the value of the tangible property possessed by

30-2  the business in the immediately preceding fiscal year must be made by the:

30-3         (I) County assessor of the county in which the business will

30-4  expand, if the business is locally assessed; or

30-5         (II) Department, if the business is centrally assessed.

30-6      (3) The average hourly wage that will be paid by the existing

30-7  business to its new employees in this state is at least 100 percent of the

30-8  average statewide hourly wage as established by the employment security

30-9  division of the department of employment, training and rehabilitation on

30-10  July 1 of each fiscal year and:

30-11        (I) The business will provide a health insurance plan for all new

30-12  employees that includes an option for health insurance coverage for

30-13  dependents of the employees; and

30-14        (II) The cost to the business for the benefits the business provides

30-15  to its new employees in this state will meet the minimum requirements for

30-16  benefits established by the commission by regulation pursuant to

30-17  subsection 9.

30-18  3.  Notwithstanding the provisions of subsection 2, the commission on

30-19  economic development may:

30-20  (a) Approve an application for a partial abatement by a business that

30-21  does not meet the requirements set forth in paragraph (d), (e) or (f) of

30-22  subsection 2;

30-23  (b) Make the requirements set forth in paragraph (d), (e) or (f) of

30-24  subsection 2 more stringent; or

30-25  (c) Add additional requirements that a business must meet to qualify for

30-26  a partial abatement,

30-27  if the commission determines that such action is necessary.

30-28  4.  If a person submits an application to the commission on economic

30-29  development pursuant to subsection 1, the commission shall provide notice

30-30  to the governing body of the county and the city or town, if any, in which

30-31  the person intends to locate or expand a business. The notice required

30-32  pursuant to this subsection must set forth the date, time and location of the

30-33  hearing at which the commission will consider the application.

30-34  5.  If the commission on economic development approves an

30-35  application for a partial abatement, the commission shall immediately

30-36  forward a certificate of eligibility for the abatement to:

30-37  (a) The department;

30-38  (b) The Nevada tax commission; and

30-39  (c) If the partial abatement is from the property tax imposed pursuant to

30-40  chapter 361 of NRS, the county treasurer.

30-41  6.  An applicant for a partial abatement pursuant to this section or an

30-42  existing business whose partial abatement is in effect shall, upon the

30-43  request of the executive director of the commission on economic

30-44  development, furnish the executive director with copies of all

30-45  records necessary to verify that the applicant meets the requirements of

30-46  subsection 2.

30-47  7.  If a business whose partial abatement has been approved pursuant to

30-48  this section and is in effect ceases:

30-49  (a) To meet the requirements set forth in subsection 2; or

31-1    (b) Operation before the time specified in the agreement described in

31-2  paragraph (b) of subsection 2,

31-3  the business shall repay to the department or, if the partial abatement was

31-4  from the property tax imposed pursuant to chapter 361 of NRS, to the

31-5  county treasurer, the amount of the exemption that was allowed pursuant to

31-6  this section before the failure of the business to comply unless the Nevada

31-7  tax commission determines that the business has substantially complied

31-8  with the requirements of this section. Except as otherwise provided in NRS

31-9  360.232 and 360.320, the business shall, in addition to the amount of the

31-10  exemption required to be paid pursuant to this subsection, pay interest on

31-11  the amount due at the rate most recently established pursuant to NRS

31-12  99.040 for each month, or portion thereof, from the last day of the month

31-13  following the period for which the payment would have been made had the

31-14  partial abatement not been approved until the date of payment of the tax.

31-15  8.  A county treasurer:

31-16  (a) Shall deposit any money that he receives pursuant to subsection 7 in

31-17  one or more of the funds established by a local government of the county

31-18  pursuant to NRS [354.611,] 354.6113 or 354.6115; and

31-19  (b) May use the money deposited pursuant to paragraph (a) only for the

31-20  purposes authorized by NRS [354.611,] 354.6113 and 354.6115.

31-21  9.  The commission on economic development:

31-22  (a) Shall adopt regulations relating to:

31-23     (1) The minimum level of benefits that a business must provide to its

31-24  employees if the business is going to use benefits paid to employees as a

31-25  basis to qualify for a partial abatement; and

31-26     (2) The notice that must be provided pursuant to subsection 4.

31-27  (b) May adopt such other regulations as the commission on economic

31-28  development determines to be necessary to carry out the provisions of this

31-29  section.

31-30  10.  The Nevada tax commission:

31-31  (a) Shall adopt regulations regarding:

31-32     (1) The capital investment that a new business must make to meet the

31-33  requirement set forth in paragraph (d) or (e) of subsection 2; and

31-34     (2) Any security that a business is required to post to qualify for a

31-35  partial abatement pursuant to this section.

31-36  (b) May adopt such other regulations as the Nevada tax commission

31-37  determines to be necessary to carry out the provisions of this section.

31-38  11.  An applicant for an abatement who is aggrieved by a final decision

31-39  of the commission on economic development may petition for judicial

31-40  review in the manner provided in chapter 233B of NRS.

31-41  Sec. 47.  NRS 374A.020 is hereby amended to read as follows:

31-42  374A.020  1.  The collection of the tax imposed by NRS 374A.010

31-43  must be commenced on the first day of the first calendar quarter that begins

31-44  at least 30 days after the last condition in subsection 1 of NRS 374A.010 is

31-45  met.

31-46  2.  The tax must be administered, collected and distributed in the

31-47  manner set forth in chapter 374 of NRS.

31-48  3.  The board of trustees of the school district shall transfer the

31-49  proceeds of the tax imposed by NRS 374A.010 from the county school

32-1  district fund to the fund described in NRS [354.611 which has been]

32-2  354.6105 which must be established by the board of trustees. The money

32-3  deposited in the fund described in NRS [354.611] 354.6105 pursuant to

32-4  this subsection must be accounted for separately in that fund and must only

32-5  be expended by the board of trustees for the cost of the extraordinary

32-6  maintenance, extraordinary repair and extraordinary improvement of

32-7  school facilities within the county.

32-8  Sec. 48.  NRS 387.335 is hereby amended to read as follows:

32-9  387.335  1.  The board of trustees of a county school district may

32-10  issue its general obligations to raise money for the following purposes, and

32-11  no others:

32-12  (a) Construction, design or purchase of new buildings for schools,

32-13  including, but not limited to, teacherages, dormitories, dining halls,

32-14  gymnasiums and stadiums.

32-15  (b) Enlarging, remodeling , [or] repairing or replacing existing

32-16  buildings or grounds for schools, including, but not limited to, teacherages,

32-17  dormitories, dining halls, gymnasiums and stadiums.

32-18  (c) Acquiring sites for building schools, or additional real property for

32-19  necessary purposes related to schools, including, but not limited to,

32-20  playgrounds, athletic fields and sites for stadiums.

32-21  (d) Paying expenses relating to the acquisition of school facilities which

32-22  have been leased by a school district pursuant to NRS 393.080.

32-23  (e) Purchasing necessary furniture and equipment for schools [.] ,

32-24  including, without limitation, equipment used in educating pupils,

32-25  furniture for school buildings and equipment used for the transportation

32-26  of pupils. If money from the issuance of general obligations is used to

32-27  purchase furniture and equipment to replace existing furniture and

32-28  equipment, and that existing furniture and equipment subsequently is sold,

32-29  the proceeds from the sale must be applied toward the retirement of those

32-30  obligations. If equipment used for the transportation of pupils is

32-31  purchased pursuant to this paragraph, only the following equipment may

32-32  be purchased:

32-33     (1) Motor vehicles that use biodiesel, compressed natural gas or a

32-34  similar fuel formulated to reduce emissions from the amount of

32-35  emissions produced from traditional fuels such as gasoline and diesel

32-36  fuel;

32-37     (2) Equipment to retrofit motor vehicles to use biodiesel,

32-38  compressed natural gas or a similar fuel formulated to reduce emissions

32-39  from the amount of emissions produced from traditional fuels such as

32-40  gasoline and diesel fuel; or

32-41     (3) Equipment for the transportation, storage or dispensing of

32-42  biodiesel, compressed natural gas or similar fuels formulated to reduce

32-43  emissions from the amount of emissions produced from traditional fuels

32-44  such as gasoline and diesel fuel.

32-45  2.  Any one or more of the purposes enumerated in subsection 1 may,

32-46  by order of the board of trustees entered in its minutes, be united and voted

32-47  upon as one single proposition.

33-1  3.  Any question submitted pursuant to this section and any question

33-2  submitted pursuant to NRS 387.3285 may, by order of the board of trustees

33-3  entered in its minutes, be united and voted upon as a single proposition.

33-4  4.  As used in this section, “biodiesel” has the meaning ascribed to it

33-5  in 42 U.S.C. § 13220.

33-6    Sec. 49.  NRS 387.516 is hereby amended to read as follows:

33-7    387.516  1.  The board of trustees of a school district may apply to the

33-8  state treasurer for a guarantee agreement whereby money in the state

33-9  permanent school fund is used to guarantee the payment of the debt service

33-10  on bonds that the school district will issue. The amount of the guarantee for

33-11  bonds of each school district outstanding at any one time must not exceed

33-12  $25,000,000.

33-13  2.  The application must be on a form prescribed by the state treasurer.

33-14  The state treasurer shall develop the form in consultation with the

33-15  executive director.

33-16  3.  Medium-term obligations entered into pursuant to the provisions of

33-17  NRS [350.085] 350.087 to 350.095, inclusive, are not eligible for

33-18  guarantee pursuant to NRS 387.513 to 387.528, inclusive.

33-19  4.  Upon receipt of an application for a guarantee agreement from a

33-20  school district, the state treasurer shall provide a copy of the application

33-21  and any supporting documentation to the executive director. As soon as

33-22  practicable after receipt of a copy of an application, the executive director

33-23  shall investigate the ability of the school district to make timely payments

33-24  on the debt service of the bonds for which the guarantee is requested. The

33-25  executive director shall submit a written report of his investigation to the

33-26  state board of finance indicating his opinion as to whether the school

33-27  district has the ability to make timely payments on the debt service of

33-28  the bonds.

33-29  Sec. 50.  NRS 387.526 is hereby amended to read as follows:

33-30  387.526  1.  If a school district fails to make a timely payment on the

33-31  debt service of bonds that are guaranteed pursuant to the provisions of NRS

33-32  387.513 to 387.528, inclusive, the state treasurer shall:

33-33  (a) Withdraw from the state permanent school fund the amount of

33-34  money due for the payment on the debt service;

33-35  (b) Make the payment on the debt service; and

33-36  (c) Report the payment to the executive director.

33-37  2.  The amount of money withdrawn pursuant to subsection 1 shall be

33-38  deemed a loan to the school district from the state permanent school fund.

33-39  The state treasurer shall determine the rate of interest on the loan, which

33-40  must not exceed 1 percent above the average rate of interest yielded on

33-41  investments in the state permanent school fund on the date that the loan is

33-42  made. A loan that is made to a school district pursuant to this subsection is

33-43  a special obligation of the school district and is payable only from the

33-44  sources specified in NRS 387.528.

33-45  3.  A school district that receives a loan pursuant to this section shall

33-46  not:

33-47  (a) Include the loan as a general obligation of the school district when

33-48  determining any limit on the debt of the school district.

34-1    (b) Unless the school district obtains the written approval of the

34-2  executive director, for the period during which the loan is unpaid, enter

34-3  into any medium-term obligations or installment-purchase agreement

34-4  pursuant to the provisions of NRS [350.085] 350.087 to 350.095, inclusive,

34-5  or otherwise borrow money.

34-6    4.  If the executive director receives notice that a loan has been made

34-7  pursuant to this section, he shall proceed pursuant to the provisions of NRS

34-8  354.685.

34-9    Sec. 51.  NRS 387.528 is hereby amended to read as follows:

34-10  387.528  1.  If a loan is made from the state permanent school fund

34-11  pursuant to NRS 387.526, the loan must be repaid[:

34-12  1.  By] by the school district from the money that is available to the

34-13  school district to pay the debt service on the bonds that are guaranteed

34-14  pursuant to the provisions of NRS 387.513 to 387.528, inclusive, unless

34-15  payment from that money would cause the school district to default on

34-16  other outstanding bonds , [or] medium-term obligations or installment-

34-17  purchase agreements entered into pursuant to the provisions of NRS

34-18  [350.085] 350.087 to 350.095, inclusive; and

34-19  2.  If the school district is not able to repay fully the loan, including any

34-20  accrued interest, in a timely manner pursuant to subsection 1 or by any

34-21  other lawful means, the state treasurer shall withhold the payments of

34-22  money that would otherwise be distributed to the school district from:

34-23  (a) The interest earned on the state permanent school fund that is

34-24  distributed among the various school districts;

34-25  (b) Distributions of the local school support tax, which must be

34-26  transferred by the state controller upon notification by the state treasurer;

34-27  and

34-28  (c) Distributions from the state distributive school account,

34-29  until the loan is repaid, including any accrued interest on the loan. The

34-30  state treasurer shall apply the money first to the interest on the loan and,

34-31  when the interest is paid in full, then to the balance. When the interest and

34-32  balance on the loan are repaid, the state treasurer shall resume making the

34-33  distributions that would otherwise be due to the school district.

34-34  Sec. 52.  NRS 496.155 is hereby amended to read as follows:

34-35  496.155  1.  Subject to the provisions of NRS 496.150 and subsections

34-36  2 and 3 of this section, for any undertaking authorized in NRS 496.150, the

34-37  governing body of a municipality, as it determines from time to time, may,

34-38  on the behalf and in the name of the municipality, borrow money,

34-39  otherwise become obligated, and evidence the obligations by the issuance

34-40  of bonds and other municipal securities, and in connection with the

34-41  undertaking or the municipal airport, including, without limitation, air

34-42  navigation facilities and other facilities appertaining to the airport, the

34-43  governing body may otherwise proceed as provided in the Local

34-44  Government Securities Law or as provided in subsections 4 and 5.

34-45  2.  General obligation bonds, whether or not their payment is

34-46  additionally secured by a pledge of net revenues, must be sold as provided

34-47  in the Local Government Securities Law.

34-48  3.  Revenue bonds may be sold at a public sale as provided in the Local

34-49  Government Securities Law or at a private sale.

35-1    4.  The governing body may by resolution acquire real property for the

35-2  expansion of airport or air navigation facilities by entering into contracts of

35-3  purchase, of a type and duration and on such terms as the governing body

35-4  determines, including, without limitation, contracts secured by a mortgage

35-5  or other security interest in the real property. The governing body may not

35-6  use any revenue derived from taxes ad valorem to pay for the acquisition,

35-7  and the obligation under the contract does not constitute a general

35-8  obligation of the municipality or apply against any debt limitation

35-9  pertaining to the municipality.

35-10  5.  The governing body may by resolution enter into a medium-term

35-11  obligation or installment-purchase agreement for any undertaking

35-12  authorized in NRS 496.150 and issue negotiable instruments without

35-13  regard to the requirements specified in:

35-14  (a) Paragraphs (a) and (b) of subsection 2 of NRS 350.091; and

35-15  (b) Subsections 1 and 2 of NRS 350.089, unless the financing is to be

35-16  repaid from the proceeds of a special tax exempt from limitations on taxes

35-17  ad valorem.

35-18  Sec. 53.  NRS 555.215 is hereby amended to read as follows:

35-19  555.215  1.  Upon the preparation and approval of a budget in the

35-20  manner required by the Local Government Budget Act, the board of county

35-21  commissioners of each county having lands situated in the district shall, by

35-22  resolution, levy an assessment upon all real property in the county which is

35-23  in the weed control district.

35-24  2.  Every assessment so levied is a lien against the property assessed.

35-25  3.  Amounts collected in counties other than the county having the

35-26  larger or largest proportion of the area of the district must be paid over to

35-27  the board of county commissioners of that county for the use of the district.

35-28  4.  The county commissioners of that county may obtain medium-term

35-29  obligations pursuant to NRS [350.085] 350.087 to 350.095, inclusive, of an

35-30  amount of money not to exceed the total amount of the assessment, to pay

35-31  the expenses of controlling the weeds in the weed control district. The

35-32  loans may be made only after the assessments are levied.

35-33  Sec. 54.  Section 12 of chapter 227, Statutes of Nevada 1975, as

35-34  amended by chapter 351, Statutes of Nevada 1997, at page 1280, is hereby

35-35  amended to read as follows:

35-36  Sec. 12. 1.  The provisions of the Local Government Budget

35-37  Act, NRS 354.470 to 354.626, inclusive, as now and hereafter

35-38  amended, apply to the Authority as a local government, and the

35-39  Authority shall, for purposes of that application, be deemed a district

35-40  other than a school district.

35-41  2.  The provisions of NRS [350.085] 350.087 to 350.095,

35-42  inclusive, apply to the Authority.

35-43  Sec. 55.  Section 20 of chapter 474, Statutes of Nevada 1977, as last

35-44  amended by chapter 203, Statutes of Nevada 1997, at page 567, is hereby

35-45  amended to read as follows:

35-46  Sec. 20.  The authority may enter into medium-term obligations

35-47  and installment-purchase obligations in compliance with NRS

35-48  350.087 to 350.095, inclusive.

36-1    Sec. 56.  Section 8A.140 of the charter of Carson City, being chapter

36-2  16, Statutes of Nevada 1997, at page 45, is hereby amended to read as

36-3  follows:

36-4  Sec. 8A.140 Types of securities; pledged revenue.

36-5  1.  For the acquisition, development, construction, equipping,

36-6  operation, maintenance, improvement and management of open

36-7  spaces, parks, trails and recreational facilities authorized by this

36-8  article, the board may issue:

36-9  (a) General obligation bonds;

36-10  (b) General obligation bonds for which payment is additionally

36-11  secured by a pledge of the proceeds of the tax imposed pursuant to

36-12  this article, and if so determined by the board, further secured by a

36-13  pledge of the gross or net revenues derived from the operation of the

36-14  recreational facilities, and any other project of the city which produces

36-15  income, or from any license fees or other excise taxes imposed for

36-16  revenue by the city, or otherwise, as may be legally made available

36-17  for payment of the bonds;

36-18  (c) Revenue bonds for which payment is solely secured by a

36-19  pledge of the proceeds of the tax imposed pursuant to this article, and

36-20  if so determined by the board, further secured by a pledge of the gross

36-21  or net revenues derived from the operation of the recreational

36-22  facilities, and any other project of the city which produces income, or

36-23  from any license fees or other excise taxes imposed for revenue by the

36-24  city, or otherwise, as may be legally made available for payment of

36-25  the bonds; and

36-26  (d) Medium-term obligations pursuant to NRS [350.085] 350.087

36-27  to 350.095, inclusive.

36-28  2.  Money pledged to the payment of bonds or other securities

36-29  pursuant to subsection 1 may be treated for the purposes of subsection

36-30  3 of NRS 350.020 as pledged revenue for the uses authorized by this

36-31  article.

36-32  Sec. 57.  Section 24 of chapter 37, Statutes of Nevada 1999, at page

36-33  85, is hereby amended to read as follows:

36-34  Sec. 24.  1.  To acquire, develop, construct, equip, improve and

36-35  manage libraries, airports, and facilities and services for senior

36-36  citizens located in the county, the board may issue:

36-37  (a) General obligation bonds;

36-38  (b) General obligation bonds for which payment is additionally

36-39  secured by a pledge of the proceeds of the tax imposed pursuant to

36-40  this act, and if so determined by the board, further secured by a pledge

36-41  of the gross or net revenues derived from the operation of libraries,

36-42  airports or facilities and services for senior facilities or any other

36-43  project of the county which produces income, or from any license fees

36-44  or other excise taxes imposed for revenue by the county, or otherwise,

36-45  as may be legally made available for payment of the bonds;

36-46  (c) Revenue bonds for which payment is solely secured by a

36-47  pledge of the proceeds of the tax imposed pursuant to this act, and if

36-48  so determined by the board, further secured by a pledge of the gross

36-49  or net revenues derived from the operation of the libraries, airports or

37-1  facilities for senior citizens or any other project of the county which

37-2  produces income, or from any license fees or other excise taxes

37-3  imposed for revenue by the county, or otherwise, as may be legally

37-4  made available for payment of the bonds; and

37-5  (d) Medium-term obligations pursuant to NRS [350.085] 350.087

37-6  to 350.095, inclusive.

37-7  2.  Money pledged to the payment of bonds or other securities

37-8  pursuant to subsection 1 may be treated for the purposes of subsection

37-9  3 of NRS 350.020 as pledged revenue for the uses authorized by this

37-10  act.

37-11  Sec. 58.  NRS 350.085, NRS 354.5235, 354.6107 and 354.611 are

37-12  hereby repealed.

37-13  Sec. 59.  1.  Except as otherwise provided in subsection 2, all money

37-14  in an extraordinary maintenance fund created pursuant to NRS 354.6107 or

37-15  354.611 must be transferred to an extraordinary maintenance fund

37-16  established pursuant to NRS 354.6105 and must be used for the purposes

37-17  set forth in that section.

37-18  2.  Money in an extraordinary maintenance fund created pursuant to

37-19  NRS 354.611 that was collected pursuant to NRS 374A.020 must be:

37-20  (a) Transferred to an extraordinary maintenance fund created pursuant

37-21  to NRS 354.6105;

37-22  (b) Accounted for separately in that fund; and

37-23  (c) Used only for the purposes and in the manner set forth in

37-24  NRS 374A.020.

37-25  Sec. 60.  1.  This section and section 48 of this act become effective

37-26  upon passage and approval.

37-27  2.  Sections 1 to 22, inclusive, 24 to 43, inclusive, 45, 46, 47 and 49 to

37-28  59, inclusive, become effective on July 1, 2001.

37-29  3.  Sections 23 and 44 of this act become effective at 12:01 a.m. on

37-30  July 1, 2001.

 

37-31  LEADLINES OF REPEALED SECTIONS

 

37-32  350.085  Definitions.

37-33  354.5235  “Extraordinary maintenance, repair or improvement”

37-34   defined.

37-35  354.6107  Fund for extraordinary maintenance, repair or

37-36   improvement of capital projects in county whose population is less

37-37   than 100,000.

37-38  354.611  Fund for extraordinary maintenance, repair or

37-39   improvement of local governmental facilities.

 

37-40  H