(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, and sections 2

2-46  and 3 of Senate Bill No. 123 of this [act,] session, unless the context

2-47  otherwise requires:

2-48    1.  “Commission” means a debt management commission created

2-49  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 general obligation debt and special

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

3-18  retirement schedules, in the detail and form established by the committee

3-19  on local government finance.

3-20    (b) A complete statement, in the detail and form established by the

3-21  committee on local government finance, of general obligation debt and

3-22  special elective taxes contemplated to be submitted to the commission

3-23  during the fiscal year.

3-24    (c) A written statement of the debt management policy of the

3-25  municipality, which must include, without limitation:

3-26      (1) A discussion of its ability to afford existing general obligation

3-27  debt, authorized future general obligation debt and proposed future general

3-28  obligation debt;

3-29      (2) A discussion of its capacity to incur authorized and proposed

3-30  future general obligation debt without exceeding the applicable debt limit;

3-31      (3) A discussion of its general obligation debt that is payable from

3-32  property taxes per capita as compared with such debt of other

3-33  municipalities in this state;

3-34      (4) A discussion of its general obligation debt that is payable from

3-35  property taxes as a percentage of assessed valuation of all taxable property

3-36  within the boundaries of the municipality;

3-37      (5) Policy regarding the manner in which the municipality expects to

3-38  sell its debt;

3-39      (6) A discussion of its sources of money projected to be available to

3-40  pay existing general obligation debt, authorized future general obligation

3-41  debt and proposed future general obligation debt; and

3-42      (7) A discussion of its operational costs and revenue sources, for the

3-43  ensuing 5 fiscal years, associated with each project included in its plan for

3-44  capital improvement submitted pursuant to paragraph (d), if those costs and

3-45  revenues are expected to affect the property tax rate.

3-46    (d) Either:

3-47      (1) Its plan for capital improvement for the ensuing 5fiscal years,

3-48  which must include any contemplated issuance of general obligation debt

4-1  during this period and the sources of money projected to be available to

4-2  pay the debt[.] ; or

4-3       (2) A statement indicating that no changes are contemplated in its

4-4  plan for capital improvement for the ensuing 5 fiscal years.

4-5    (e) A statement containing the name, title, mailing address and

4-6  telephone number of the chief financial officer of the municipality.

4-7    2.  The governing body of a municipality may combine a statement or

4-8  plan required by subsection 1 with the corresponding statement or plan of

4-9  another municipality if both municipalities have the same governing body

4-10  or the governing bodies of both municipalities agree to such a combination.

4-11    3.  Except as otherwise provided in subsection 4, the governing body of

4-12  each municipality shall update all statements and plans required by

4-13  subsection 1 not less frequently than once each fiscal year.

4-14    4.  In a county whose population is 100,000 or more, the governing

4-15  body of each municipality shall update all statements and plans required by

4-16  subsection 1 not less often than once each fiscal year and not more often

4-17  than twice each fiscal year, except that a municipality may update a

4-18  statement or plan required by subsection 1 more often than twice each

4-19  fiscal year:

4-20    (a) If the governing body determines, by a two-thirds vote, that an

4-21  emergency requires that a statement or plan be updated;

4-22    (b) To include an item related to:

4-23      (1) An installment purchase that does not count against a debt limit;

4-24  or

4-25      (2) An obligation for which no additional property tax is expected;

4-26    (c) To update the purpose of a special elective tax without changing the

4-27  rate of the special elective tax; or

4-28    (d) To comply with the requirements of subsection 5 of NRS 268.625 or

4-29  subsection 1 of NRS 350.091.

4-30    5.  The provisions of this section do not apply to the Airport Authority

4-31  of Washoe County so long as the authority does not have any general

4-32  obligation bonds outstanding and does not issue or propose to issue any

4-33  such bonds. At least 30 days before each annual meeting of the

4-34  commission, the authority shall submit to the department of taxation a

4-35  written statement regarding whether the authority is planning to propose to

4-36  issue any general obligation bonds before the next following annual

4-37  meeting of the commission.

4-38    Sec. 12.  NRS 350.004 is hereby amended to read as follows:

4-39    350.004  1.  Before any proposal to incur a general obligation debt or

4-40  levy a special elective tax may be submitted to the electors of a

4-41  municipality, before any issuance of general obligation bonds pursuant to

4-42  subsection 4 of NRS 350.020 , before entering into an installment-

4-43  purchase agreement with a term of more than 10 years or , before any

4-44  other formal action may be taken preliminary to the incurrence of any

4-45  general obligation debt, the proposed incurrence or levy must receive the

4-46  favorable vote of two-thirds of the members of the commission of each

4-47  county in which the municipality is situated.

4-48    2.  Before the board of trustees of a district organized or reorganized

4-49  pursuant to chapter 318 of NRS whose population within its boundaries is

5-1  less than 5,000[,] incurs a medium-term obligation or otherwise borrows

5-2  money or issues securities to evidence such borrowing, other than

5-3  securities representing a general obligation debt[,] or installment-

5-4  purchase agreements with a term of 10 years or less, the proposed

5-5  borrowing or issuing of securities must receive the favorable vote of a

5-6  majority of the members of the commission of each county in which the

5-7  district is situated.

5-8    3.  When any municipality other than a general improvement district

5-9  whose population within its boundaries is less than 5,000[,] issues any

5-10  special obligations, it shall so notify in its annual report the commission of

5-11  each county in which any of its territory is situated.

5-12    4.  The commission shall not approve any proposal submitted to it

5-13  pursuant to this section by a municipality:

5-14    (a) Which, if the proposal is for the financing of a capital improvement,

5-15  is not included in its plan for capital improvement submitted pursuant to

5-16  NRS 350.0035, if such a plan is required to be submitted;

5-17    (b) If, based upon:

5-18      (1) Estimates of the amount of tax revenue from property taxes

5-19  needed for the special elective tax, or to repay the general obligation debt,

5-20  and the dates that revenue will be needed, as provided by the municipality;

5-21      (2) Estimates of the assessed valuation of the municipality for each of

5-22  the years in which tax revenue is needed, as provided by the municipality;

5-23      (3) The amount of any other required levies of property taxes, as

5-24  shown on the most recently filed final budgets of each entity authorized to

5-25  levy property taxes on any property within the municipality submitting the

5-26  proposal; and

5-27      (4) Any other factor the municipality discloses to the

5-28  commission,

5-29  the proposal would result in a combined property tax rate in any of the

5-30  overlapping entities within the county which exceeds the limit provided in

5-31  NRS 361.453, unless the proposal also includes an agreement which

5-32  complies with NRS 361.457 and which is approved by the governing

5-33  bodies of all affected municipalities within the area as to how the combined

5-34  property tax rates will be brought into compliance with the statutory

5-35  limitation or unless the commission adopts a plan that is approved by the

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

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

5-38  limitation; or

5-39    (c) If, based upon the factors listed in subparagraphs (1) to (4),

5-40  inclusive, of paragraph (b), the proposal will affect the ability of an

5-41  affected governmental entity to levy the maximum amount of property

5-42  taxes that it may levy pursuant to NRS 354.59811, unless:

5-43      (1) The proposal includes a resolution approving the proposal

5-44  pursuant to subsection 3 of section 3 of Senate Bill No. 123 of this [act]

5-45  session from each affected governmental entity whose ability to levy

5-46  property taxes will be affected by the commission’s approval of the

5-47  proposal; or

5-48      (2) The commission has resolved all conflicts between the

5-49  municipality and all affected governmental entities and has approved the

6-1  increase in property taxes resulting from the proposal pursuant to section 3

6-2  of Senate Bill No. 123 of this [act.] session.

6-3    5.  Except as otherwise provided in subsection 6, ifgeneral obligation

6-4  debt is to be incurred more than 36 months after the approval of that debt

6-5  by the commission, the governing body of the municipality shall obtain

6-6  [the] additional approval of the [executive director of the department of

6-7  taxation] commission before incurring the general obligation debt. The

6-8  [executive director] commission shall only approve [the] a proposal that is

6-9  submitted pursuant to this subsection if, based on the information set forth

6-10  in paragraph (b) of subsection 4 that is accurate as of the date on which the

6-11  governing body submits , pursuant to this subsection, its request for

6-12  approval to the [executive director:] commission:

6-13    (a) Incurrence of the general obligation debt will not result in a

6-14  combined property tax rate in any of the overlapping entities within the

6-15  county which exceeds the limit provided in NRS 361.453; [or]

6-16    (b) The proposal includes an agreement approved by the governing

6-17  bodies of all affected municipalities within the area as to how the combined

6-18  tax rates will be brought into compliance with the statutory limitation[.] ;

6-19  or

6-20    (c) The commission adopts a plan that is approved by the executive

6-21  director of the department of taxation pursuant to which the

6-22  combined property tax rate will be in compliance with the statutory

6-23  limitation.

6-24  The approval of the [executive director] commission pursuant to this

6-25  subsection is effective for 18 months. The governing body of the

6-26  municipality may renew that approval for successive periods of 18 months

6-27  by filing an application for renewal with the [executive director.]

6-28  commission. Such an application must be accompanied by the information

6-29  set forth in paragraph (b) of subsection 4 that is accurate as of the date the

6-30  governing body files the application for renewal.

6-31    6.  The executive director of the department of taxation may not

6-32  approve a proposal pursuant to subsection 5 which, based upon the factors

6-33  listed in subparagraphs (1) to (4), inclusive, of paragraph (b) of subsection

6-34  4, will affect the ability of an affected governmental entity to levy the

6-35  maximum amount of property taxes that it may levy pursuant to NRS

6-36  354.59811, unless:

6-37    (a) The proposal includes a resolution approving the proposal pursuant

6-38  to subsection 3 of section 3 of Senate Bill No. 123 of this [act] session

6-39  from each affected governmental entity whose ability to levy property

6-40  taxes will be affected by the commission’s approval of the proposal; or

6-41    (b) The commission has resolved all conflicts between the municipality

6-42  and all affected governmental entities and has approved the increase in

6-43  property taxes resulting from the proposal pursuant to section 3 of Senate

6-44  Bill No. 123 of this [act.] session.

6-45    7.  [If the executive director does not approve a proposal submitted to

6-46  him pursuant to subsection 5, the governing body of the municipality may

6-47  appeal his decision to the Nevada tax commission.

7-1    8.] As used in this section, “affected governmental entity” has the

7-2  meaning ascribed to it in subsection 9 of section 3 of Senate Bill No. 123

7-3  of this [act.] session.

7-4    Sec. 13.  NRS 350.005 is hereby amended to read as follows:

7-5    350.005  1.  The governing body of the municipality proposing to

7-6  incur general obligation debt , to enter an installment-purchase agreement

7-7  with a term of more than 10 years or to levy a special elective tax and the

7-8  board of trustees of a general improvement district whose population

7-9  within its boundaries is less than 5,000[,] who proposes to issue a

7-10  medium-term obligation or otherwise borrow money and issue any

7-11  securities other than securities representing a general obligation debt[,] or

7-12  installment-purchase agreements with terms of 10 years or less, shall

7-13  notify the secretary of each appropriate commission, and shall submit a

7-14  statement of its proposal in sufficient number of copies for each member of

7-15  the commission. The secretary, with the approval of the chairman, shall,

7-16  within 10 days, give notice of a meeting, in the manner required by chapter

7-17  241 of NRS, to be held not more than 20 days thereafter. He shall provide a

7-18  copy of the proposal to each member with the notice of the meeting, and

7-19  mail notice of the meeting to the chief financial officer of each

7-20  municipality in the county which has complied with subsection 1 of NRS

7-21  350.0035 within the past year.

7-22    2.  The commission may grant a conditional or provisional approval of

7-23  such proposal. Such conditions or provisions are limited to [the] :

7-24    (a) The scheduling of:

7-25    [(a)] (1) The issuance and retirement of securities, if the proposal is to

7-26  incur general obligation debt; or

7-27    [(b)] (2) The imposition of the tax, if the proposal is to levy a special

7-28  elective tax[.] ; and

7-29    (b) If the proposal would result in a combined property tax rate in any

7-30  of the overlapping entities within the county which exceeds 90 percent of

7-31  the limit provided in NRS 361.453, a condition requiring a reduction in

7-32  the amount of the proposed debt, installment-purchase agreement or

7-33  special elective tax.

7-34    3.  If the proposal is from a municipality, the commission may not

7-35  approve any portion of the proposal that is not included in the statement

7-36  filed pursuant to paragraph (b) of subsection 1 of NRS 350.0035, as

7-37  updated pursuant to subsection 3 or 4 of NRS 350.0035.

7-38    4.  The commission may adjourn a meeting called to consider a

7-39  particular proposal no more than once, for no more than 10 days.

7-40  Notification of the approval or disapproval of its proposal must be sent to

7-41  the governing body within 3 days after the meeting.

7-42    Sec. 14.  NRS 350.0051 is hereby amended to read as follows:

7-43    350.0051  1.  In determining whether to approve, conditionally or

7-44  provisionally approve, or disapprove a proposal to incur debt , to enter an

7-45  installment-purchase agreement with a term of more than 10 years or to

7-46  levy a special elective tax, the commission shall not, except as otherwise

7-47  provided in paragraph (d) and section 3 of Senate Bill No. 123 of this [act,]

7-48  session, initiate a determination as to whether the proposed debt ,

7-49  installment-purchase agreement or special elective tax is sought to

8-1  accomplish a public purpose or to satisfy a public need. The commission

8-2  shall consider, but is not limited to, the following criteria:

8-3    (a) If the proposal is to incur debt, the amount of debt outstanding on

8-4  the part of the municipality proposing to incur the debt.

8-5    (b) The effect of the tax levy required for debt service on the proposed

8-6  debt[,] or to repay an installment-purchase agreement with a term of

8-7  more than 10 years, or of the proposed levy of a special elective tax, upon

8-8  the ability of the municipality proposing to incur the general obligation

8-9  debt , enter the installment-purchase agreement or levy the special

8-10  elective tax and of other municipalities to raise revenue for operating

8-11  purposes.

8-12    (c) The anticipated need for other incurrences of debt , installment-

8-13  purchase agreements or levies of special elective taxes by the municipality

8-14  proposing to incur the debt , enter the installment-purchase agreement or

8-15  levy the special elective tax and other municipalities whose tax-levying

8-16  powers overlap, as shown by the county or regional master plan, if any, and

8-17  by other available information.

8-18    (d) If the information set forth in paragraph (b) of subsection 4 of NRS

8-19  350.004 indicates that the proposal would result in a combined property tax

8-20  rate in any of the overlapping entities within the county which exceeds the

8-21  specified percentage, pursuant to subsection 1 of section 2 of Senate Bill

8-22  No. 123 of this [act,] session, of the limit provided in NRS 361.453:

8-23      (1) The public need to be served by the proceeds from the proposed

8-24  debt or tax levy in accordance with the priorities established pursuant to

8-25  subsection 2 of section 2 of Senate Bill No. 123 of this [act;] session; and

8-26      (2) A comparison of that public need and other public needs that

8-27  appear on the statements of current and contemplated general obligation

8-28  debt and special elective taxes submitted pursuant to paragraphs (a) and (b)

8-29  of subsection 1 of NRS 350.0035 that may affect the combined property

8-30  tax rate in any of the overlapping entities within the county.

8-31    2.  If the commission approves the proposal, the amount received from

8-32  the sale of the general obligation debt or from the special elective tax may

8-33  be expended only for the purposes described in the proposal.

8-34    3.  The commission may make reasonable requests from a

8-35  municipality for information relating to the criteria described in

8-36  paragraphs (a) to (d), inclusive, of subsection 1. A municipality shall use

8-37  its best efforts to comply with information requests from the commission

8-38  in a timely manner.

8-39    Sec. 15.  NRS 350.006 is hereby amended to read as follows:

8-40    350.006  The provisions of NRS 350.001 to 350.0052, inclusive, do not

8-41  apply to:

8-42    1.  Any general obligation debt incurred or special elective tax levied

8-43  before July 1, 1995;

8-44    2.  Any general obligation debt or special elective tax approved at an

8-45  election held before July 1, 1995, whether or not the debt is incurred or tax

8-46  is levied before that date;

8-47    3.  Any general obligation debt authorized to be incurred, or special

8-48  elective tax authorized to be levied, by a special act adopted and approved

8-49  before July 1, 1995; [and]

9-1    4.  Any debt incurred for the purpose of refunding any outstanding

9-2  general obligation debt[.] ; and

9-3    5.  Any medium-term obligation, except a medium-term obligation

9-4  issued after July 1, 2001, by a general improvement district whose

9-5  population within its boundaries is less than 5,000.

9-6    Sec. 16.  NRS 350.020 is hereby amended to read as follows:

9-7    350.020  1.  Except as otherwise provided by subsections 3 and 4, if a

9-8  municipality proposes to issue or incur general obligations, the proposal

9-9  must be submitted to the electors of the municipality at a special election

9-10  called for that purpose or the next general municipal election or general

9-11  state election.

9-12    2.  Such a special election may be held:

9-13    (a) At any time, including, without limitation, on the date of a primary

9-14  municipal election or a primary state election, if the governing body of the

9-15  municipality determines, by a unanimous vote, that an emergency exists; or

9-16    (b) On the first Tuesday after the first Monday in June of an odd-

9-17  numbered year.

9-18  The determination made by the governing body is conclusive unless it is

9-19  shown that the governing body acted with fraud or a gross abuse of

9-20  discretion. An action to challenge the determination made by the governing

9-21  body must be commenced within 15 days after the governing body’s

9-22  determination is final. As used in this subsection, “emergency” means any

9-23  occurrence or combination of occurrences which requires immediate action

9-24  by the governing body of the municipality to prevent or mitigate a

9-25  substantial financial loss to the municipality or to enable the governing

9-26  body to provide an essential service to the residents of the municipality.

9-27    3.  If payment of a general obligation of the municipality is additionally

9-28  secured by a pledge of gross or net revenue of a project to be financed by

9-29  its issue, and the governing body determines, by an affirmative vote of

9-30  two-thirds of the members elected to the governing body, that the pledged

9-31  revenue will at least equal the amount required in each year for the

9-32  payment of interest and principal, without regard to any option reserved by

9-33  the municipality for early redemption, the municipality may, after a public

9-34  hearing, incur this general obligation without an election unless, within 60

9-35  days after publication of a resolution of intent to issue the bonds, a petition

9-36  is presented to the governing body signed by not less than 5 percent of the

9-37  registered voters of the municipality who together with any corporate

9-38  petitioners own not less than 2 percent in assessed value of the taxable

9-39  property of the municipality. Any member elected to the governing body

9-40  whose authority to vote is limited by charter, statute or otherwise may vote

9-41  on the determination required to be made by the governing body pursuant

9-42  to this subsection. The determination by the governing body becomes

9-43  conclusive on the last day for filing the petition. For the purpose of this

9-44  subsection, the number of registered voters must be determined as of the

9-45  close of registration for the last preceding general election and assessed

9-46  values must be determined from the next preceding final assessment roll.

9-47  An authorized corporate officer may sign such a petition whether or not he

9-48  is a registered voter. The resolution of intent need not be published in full,

9-49  but the publication must include the amount of the obligation and the

10-1  purpose for which it is to be incurred. Notice of the public hearing must be

10-2  published at least 10 days before the day of the hearing. The publications

10-3  must be made once in a newspaper of general circulation in the

10-4  municipality. When published, the notice of the public hearing must be at

10-5  least as large as 5 inches high by 4 inches wide.

10-6    4.  The board of trustees of a school district may issue general

10-7  obligation bonds which are not expected to result in an increase in the

10-8  existing property tax levy for the payment of bonds of the school district

10-9  without holding an election for each issuance of the bonds if the qualified

10-10  electors approve a question submitted by the board of trustees that

10-11  authorizes issuance of bonds for a period of 10 years after the date of

10-12  approval by the voters. If the question is approved, the board of trustees of

10-13  the school district may issue the bonds for a period of 10 years after the

10-14  date of approval by the voters, after obtaining the approval of the debt

10-15  management commission in the county in which the school district is

10-16  located and, in a county whose population is 100,000 or more, the approval

10-17  of the oversight panel for school facilities established pursuant to NRS

10-18  393.092 in that county, if the board of trustees of the school district finds

10-19  that the existing tax for debt service will at least equal the amount required

10-20  to pay the principal and interest on the outstanding general obligations of

10-21  the school district and the general obligations proposed to be issued. The

10-22  finding made by the board of trustees is conclusive in the absence of fraud

10-23  or gross abuse of discretion. As used in this subsection, “general

10-24  obligations” does not include medium-term obligations issued pursuant to

10-25  NRS [350.085] 350.087 to 350.095, inclusive.

10-26  5.  At the time of issuance of bonds authorized pursuant to subsection

10-27  4, the board of trustees shall establish a reserve account in its debt service

10-28  fund for payment of the outstanding bonds of the school district. The

10-29  reserve account must be established and maintained in an amount at least

10-30  equal to the lesser of the amount of principal and interest payments due on

10-31  all of the outstanding bonds of the school district in the next fiscal year or

10-32  10 percent of the outstanding principal amount of the outstanding bonds of

10-33  the school district. If the amount in the reserve account falls below the

10-34  amount required by this subsection:

10-35  (a) The board of trustees shall not issue additional bonds pursuant to

10-36  subsection 4 until the reserve account is restored to the level required by

10-37  this subsection; and

10-38  (b) The board of trustees shall apply all of the taxes levied by the school

10-39  district for payment of bonds of the school district that are not needed for

10-40  payment of the principal and interest on bonds of the school district in the

10-41  current fiscal year to restore the reserve account to the level required

10-42  pursuant to this subsection.

10-43  6.  A municipality may issue special or medium-term obligations

10-44  without an election.

10-45  Sec. 17.  NRS 350.087 is hereby amended to read as follows:

10-46  350.087  1.  If the public interest requires a medium-term obligation

10-47  [,] or installment-purchase agreement, the governing body of any local

10-48  government, by a resolution adopted by two-thirds of its members, may

10-49  authorize a medium-term obligation[.] or installment-purchase

11-1  agreement. For the purposes of the issuance of a medium-term obligation

11-2  pursuant to NRS 280.266, a metropolitan police committee on fiscal affairs

11-3  shall be deemed the governing body of a local government.

11-4    2.  The resolution must contain:

11-5    (a) A finding by the governing body that the public interest requires the

11-6  medium-term obligation[;] or installment-purchase agreement;

11-7    (b) A statement of the facts upon which the finding required pursuant to

11-8  paragraph (a) is based; [and]

11-9    (c) A statement that identifies:

11-10     (1) Each source of revenue of the local government that is anticipated

11-11  to be used to repay the medium-term obligation[;] or installment-

11-12  purchase agreement; and

11-13     (2) The dollar amount that is anticipated to be available to repay the

11-14  medium-term obligation or installment-purchase agreement from each

11-15  such source[.] ; and

11-16  (d) If the resolution is for an installment-purchase agreement with a

11-17  term of more than 10 years:

11-18     (1) A statement comparing the cost of installment-purchase

11-19  financing with other available methods of financing, including, without

11-20  limitation, financing with general obligation bonds or revenue bonds;

11-21  and

11-22     (2) If such statement concludes that installment-purchase financing

11-23  is more expensive than other available methods of financing, a statement

11-24  explaining the reasons for choosing installment-purchase financing

11-25  instead of a less expensive alternative.

11-26  3.  Except as otherwise provided in subsection 4, before the adoption of

11-27  any such resolution, the governing body shall publish notice of its intention

11-28  to act thereon in a newspaper of general circulation for at least one

11-29  publication. No vote may be taken upon the resolution until 10 days after

11-30  the publication of the notice. The cost of publication of the notice required

11-31  of an entity is a proper charge against its general fund.

11-32  4.  If such a resolution will be adopted by a metropolitan police

11-33  committee on fiscal affairs, the sheriff of the county in which the

11-34  metropolitan police department is located shall publish the notice required

11-35  pursuant to subsection 3.

11-36  Sec. 18.  NRS 350.089 is hereby amended to read as follows:

11-37  350.089  Except as otherwise provided in NRS 280.266 and 496.155:

11-38  1.  Upon the adoption by a local government of a resolution for a

11-39  medium-term obligation[,] or installment-purchase agreement, as

11-40  provided in NRS 350.087, [by a local government,] a certified copy thereof

11-41  must be forwarded to the executive director of the department of taxation.

11-42  As soon as is practicable, the executive director of the department of

11-43  taxation shall, after consideration of the tax structure of the local

11-44  government concerned, the probable ability of the local government to

11-45  repay the requested medium-term obligation or installment-purchase

11-46  agreement and the compliance of the local government with the applicable

11-47  provisions of law, including, without limitation, the provisions of chapter

11-48  354 of NRS, approve or disapprove the resolution in writing to the

11-49  governing board. No such resolution is effective until approved by the

12-1  executive director of the department of taxation. The written approval of

12-2  the executive director of the department of taxation must be recorded in the

12-3  minutes of the governing board.

12-4    2.  If the executive director of the department of taxation does not

12-5  approve the resolution for the medium-term obligation[,] or installment-

12-6  purchase agreement, the governing board of the local government may

12-7  appeal the executive director’s decision to the Nevada tax commission.

12-8    Sec. 19.  NRS 350.091 is hereby amended to read as follows:

12-9    350.091  1.  Whenever the governing body of any local government is

12-10  authorized to enter into a medium-term obligation or installment-purchase

12-11  agreement as provided in NRS 280.266 or 350.089[, the governing body:

12-12  (a) If the medium-term obligation] that is intended to finance a capital

12-13  project, the governing body shall update its plan for capital improvement

12-14  in the same manner as is required for general obligation debt pursuant to

12-15  NRS 350.0035.

12-16  [(b) May]

12-17  2.  Whenever the governing body of any local government is

12-18  authorized to enter into a medium-term obligation as provided in NRS

12-19  350.089, the governing body may issue, as evidence thereof, negotiable

12-20  notes[, leases, other evidence of a transaction described in NRS 350.800,

12-21  or short-time] or medium-term negotiable bonds[.

12-22  2.  Except] that, except as otherwise provided in subsection 5 of NRS

12-23  496.155 : [, the negotiable notes or bonds:]

12-24  (a) Must mature not later than 10 years after the date of issuance ; [.]

12-25  (b) Must bear interest at a rate or rates which do not exceed by more

12-26  than 3 percent the Index of Twenty Bonds which was most recently

12-27  published before the bids are received or a negotiated offer is accepted[.] ;

12-28  and

12-29  (c) May, at the option of the local government, contain a provision

12-30  which allows redemption of the notes or bonds before maturity, upon such

12-31  terms as the governing body determines.

12-32  3.  Whenever the governing body of any local government is

12-33  authorized to enter into an installment-purchase agreement as provided

12-34  in NRS 280.266 or 350.089, the governing body may issue, as evidence

12-35  thereof, an installment-purchase agreement, lease or other evidence of a

12-36  transaction described in NRS 350.800. An installment-purchase

12-37  agreement, lease or other evidence of a transaction described in NRS

12-38  350.800 issued pursuant to this subsection:

12-39  (a) Must have a term that is 30 years or less;

12-40  (b) Must bear interest at a rate or rates that do not exceed by more

12-41  than 3 percent the Index of Revenue Bonds which was most recently

12-42  published before the local government enters into the installment-

12-43  purchase agreement; and

12-44  (c) May, at the option of the local government, contain a provision

12-45  that allows prepayment of the purchase price upon such terms as are

12-46  provided in the agreement.

12-47  4.  If the [maximum term of the financing is more than 5 years, the]

12-48  term of the medium-term obligation or installment-purchase agreement

12-49  is more than 5 years, the weighted average term of the medium-term

13-1  obligation or installment-purchase agreement may not exceed the

13-2  estimated weighted average useful life of the [asset to be purchased with

13-3  the proceeds from the financing.] assets being financed with the medium-

13-4  term obligation or installment-purchase agreement.

13-5    5.  For the purposes of subsection 4, the committee on local

13-6  government finance may adopt regulations that provide guidelines for

13-7  the useful life of various types of assets and for calculation of the

13-8  weighted average useful life of assets.

13-9    Sec. 20.  NRS 350.093 is hereby amended to read as follows:

13-10  350.093  1.  After a medium-term obligation has been authorized as

13-11  provided in NRS 350.089 and if, in the judgment of the governing board of

13-12  the local government, the fiscal affairs of the local government can be

13-13  carried on without impairment and there is sufficient money in the general

13-14  fund or a surplus in any other fund, with the exception of the bond interest

13-15  and redemption fund, of the local government, the governing board may

13-16  transfer from the general fund or from the surplus appearing in any fund,

13-17  with the exception of the bond interest and redemption fund, money

13-18  sufficient to meet the purpose of the medium-term obligation.

13-19  2.  When such a transfer is made, the governing board of the local

13-20  government shall comply with the provisions of NRS 350.095, and when

13-21  the special tax is thereafter collected, the amount so collected must be

13-22  placed immediately in the fund from which the loan was made.

13-23  3.  In cases where the fund from which the loan was made, at the time

13-24  of the transfer of funds therefrom, contains a surplus that in the judgment

13-25  of the executive director of the department of taxation is or will not be

13-26  needed for the purposes of the fund in the ordinary course of events, the

13-27  special tax need not be levied, collected and placed in the fund from which

13-28  the loan was made, but the transfer shall be deemed refunded for all

13-29  purposes of NRS [350.085] 350.087 to 350.095, inclusive.

13-30  Sec. 21.  NRS 350.115 is hereby amended to read as follows:

13-31  350.115  “Bond” means any evidence of [indebtedness of] borrowing

13-32  by a municipality that is issued pursuant to the provisions of this chapter or

13-33  chapter 244, 244A, 268, 269, 271, 318[, 354] or 387 of NRS, whether

13-34  general or special obligations, including, without limitation, bonds, notes,

13-35  debentures, warrants and certificates.

13-36  Sec. 22.  NRS 350.800 is hereby amended to read as follows:

13-37  350.800  1.  A transaction whereby a municipality acquires real or

13-38  personal property and another person acquires or retains a security interest

13-39  in that or other property creates a general obligation of the municipality

13-40  which must be counted against any limit upon its debt unless:

13-41  (a) The obligation by its terms is extinguished by failure of the

13-42  governing body to appropriate money for the ensuing fiscal year for

13-43  payment of the amounts then due; or

13-44  (b) The budget of the municipality for the fiscal year in which the

13-45  transaction occurs includes a provision for the discharge of the obligation

13-46  in full.

13-47  2.  Any member of the governing body may vote upon such a

13-48  transaction whether or not the obligation incurred is expected to extend

13-49  beyond his term of office, without any special notice or other formality.

14-1    3.  Any such transaction is subject to the requirements of this chapter

14-2  for an election if it must be counted against a debt limit, but , except as

14-3  otherwise provided in NRS 350.001 to 350.006, inclusive, and 350.087 to

14-4  350.095, inclusive, is not subject to any other requirement of this chapter.

14-5    4.  In addition to or as a substitute for granting a security interest in the

14-6  property being acquired in a transaction described in subsection 1, the

14-7  municipality may grant a security interest in other property if the governing

14-8  body finds that:

14-9    (a) Granting the security interest in the other property will result in

14-10  lower financing costs to the municipality; and

14-11  (b) The value of all property in which a security interest is granted does

14-12  not, at the time the security interest is granted, exceed an amount equal

14-13  to one and one-half times the value of the property being

14-14  acquired.

14-15  The finding and determination of values by the governing body are

14-16  conclusive in the absence of fraud or gross abuse of discretion.

14-17  Sec. 23.  NRS 104.9109 is hereby amended to read as follows:

14-18  104.9109  1.  Except as otherwise provided in subsections 3 and 4,

14-19  this article applies to:

14-20  (a) A transaction, regardless of its form, that creates a security interest

14-21  in personal property or fixtures by contract;

14-22  (b) An agricultural lien;

14-23  (c) A sale of accounts, chattel paper, payment intangibles or promissory

14-24  notes;

14-25  (d) A consignment;

14-26  (e) A security interest arising under NRS 104.2401, 104.2505,

14-27  subsection 3 of NRS 104.2711 or subsection 5 of NRS 104A.2508, as

14-28  provided in NRS 104.9110; and

14-29  (f) A security interest arising under NRS 104.4210 or 104.5118.

14-30  2.  The application of this article to a security interest in a secured

14-31  obligation is not affected by the fact that the obligation is itself secured by

14-32  a transaction or interest to which this article does not apply.

14-33  3.  This article does not apply to the extent that:

14-34  (a) A statute, regulation or treaty of the United States preempts this

14-35  article; or

14-36  (b) The rights of a transferee beneficiary or nominated person under a

14-37  letter of credit are independent and superior under NRS 104.5114.

14-38  4.  This article does not apply to:

14-39  (a) A landlord’s lien, other than an agricultural lien;

14-40  (b) A lien, other than an agricultural lien, given by statute or other rule

14-41  of law for services or materials, but NRS 104.9333 applies with respect to

14-42  priority of the lien;

14-43  (c) An assignment of a claim for wages, salary or other compensation of

14-44  an employee;

14-45  (d) A sale of accounts, chattel paper, payment intangibles or promissory

14-46  notes as part of a sale of the business out of which they arose;

14-47  (e) An assignment of accounts, chattel paper, payment intangibles or

14-48  promissory notes which is for the purpose of collection only;

15-1    (f) An assignment of a right to payment under a contract to an assignee

15-2  that is also obligated to perform under the contract;

15-3    (g) An assignment of a single account, payment intangible or

15-4  promissory note to an assignee in full or partial satisfaction of a preexisting

15-5  indebtedness;

15-6    (h) A transfer of an interest in or an assignment of a claim under a

15-7  policy of insurance, other than an assignment by or to a health-care

15-8  provider of a health-care-insurance receivable and any subsequent

15-9  assignment of the right to payment, but NRS 104.9315 and 104.9322 apply

15-10  with respect to proceeds and priorities in proceeds;

15-11  (i) An assignment of a right represented by a judgment, other than a

15-12  judgment taken on a right to payment that was collateral;

15-13  (j) A right of recoupment or set-off, but:

15-14     (1) NRS 104.9340 applies with respect to the effectiveness of rights

15-15  of recoupment or set-off against deposit accounts; and

15-16     (2) NRS 104.9404 applies with respect to defenses or claims of an

15-17  account debtor;

15-18  (k) The creation or transfer of an interest in or lien on real property,

15-19  including a lease or rents thereunder, except to the extent that provision is

15-20  made for:

15-21     (1) Liens on real property in NRS 104.9203 and 104.9308;

15-22     (2) Fixtures in NRS 104.9334;

15-23     (3) Fixture filings in NRS 104.9501, 104.9502, 104.9512, 104.9516

15-24  and 104.9519; and

15-25     (4) Security agreements covering personal and real property in NRS

15-26  104.9604;

15-27  (l) An assignment of a claim arising in tort, other than a commercial tort

15-28  claim, but NRS 104.9315 and 104.9322 apply with respect to proceeds and

15-29  priorities in proceeds;

15-30  (m) An assignment of a deposit account in a consumer transaction, but

15-31  NRS 104.9315 and 104.9322 apply with respect to proceeds and priorities

15-32  in proceeds; or

15-33  (n) A transfer by a government or governmental unit.

15-34  Sec. 24.  NRS 233B.062 is hereby amended to read as follows:

15-35  233B.062  1.  It is the policy of this state that every regulation of an

15-36  agency be made easily accessible to the public and expressed in clear and

15-37  concise language. To assist in carrying out this policy:

15-38  (a) The attorney general must develop guidelines for drafting

15-39  regulations; and

15-40  (b) Every permanent regulation must be incorporated, excluding any

15-41  forms used by the agency, any publication adopted by reference, the title,

15-42  any signature and other formal parts, in the Nevada Administrative Code,

15-43  and every emergency or temporary regulation must be distributed in the

15-44  same manner as the Nevada Administrative Code.

15-45  2.  The legislative counsel shall treat regulations adopted by entities

15-46  other than agencies, in the same manner as regulations adopted by

15-47  agencies if the entity is required by statute to adopt the regulation in the

15-48  manner prescribed by this chapter.

16-1    3.  The legislative commission may authorize inclusion in the Nevada

16-2  Administrative Code of the regulations of an agency otherwise exempted

16-3  from the requirements of this chapter.

16-4    Sec. 25-27.  (Deleted by amendment.)

16-5    Sec. 28.  NRS 244.3661 is hereby amended to read as follows:

16-6    244.3661  1.  Except as otherwise provided in NRS 704.664, a board

16-7  of county commissioners may, by ordinance, impose an excise tax on the

16-8  use of water in an amount sufficient to ensure the payment, wholly or in

16-9  part, of obligations incurred by the county to acquire and construct a new

16-10  facility for the treatment of water for public or private use, or both. The tax

16-11  must be imposed on customers of suppliers of water that are capable of

16-12  using the water treatment services provided by the facility to be financed

16-13  with the proceeds of the tax.

16-14  2.  An excise tax imposed pursuant to subsection 1 may be levied at

16-15  different rates for different classes of customers or to take into account

16-16  differences in the amount of water used or estimated to be used or the size

16-17  of the connection.

16-18  3.  The ordinance imposing the tax must provide the:

16-19  (a) Rate or rates of the tax;

16-20  (b) Procedure for collection of the tax;

16-21  (c) Duration of the tax; and

16-22  (d) Rate of interest that will be charged on late payments.

16-23  4.  Late payments of the tax must bear interest at a rate not exceeding 2

16-24  percent per month, or fraction thereof. The tax due is a perpetual lien

16-25  against the property served by the water on whose use the tax is imposed

16-26  until the tax and any interest which may accrue thereon are paid. The

16-27  county shall enforce the lien in the same manner as provided in NRS

16-28  [361.565] 361.5648 to 361.730, inclusive, for property taxes.

16-29  5.  A county may:

16-30  (a) Acquire and construct a new facility for the treatment of water for

16-31  public or private use, or both.

16-32  (b) Finance the project by the issuance of general obligation bonds,

16-33  medium-term obligations or revenue bonds or other securities issued

16-34  pursuant to chapter 350 of NRS, or by [installment purchase] installment-

16-35  purchase financing pursuant to [NRS 350.800.] that chapter.

16-36  (c) Enter into an agreement with a public utility which provides that:

16-37     (1) Water treatment services provided by the facility will be made

16-38  available to the public utility; or

16-39     (2) The public utility will operate and maintain the facility,

16-40  or both. An agreement entered into pursuant to this paragraph may extend

16-41  beyond the terms of office of the members of the board of county

16-42  commissioners who voted upon it.

16-43  6.  A county may pledge any money received from the proceeds of a

16-44  tax imposed pursuant to this section for the payment of general or special

16-45  obligations issued for a new facility for the treatment of water for public or

16-46  private use, or both. Any money pledged by the county pursuant to this

16-47  subsection may be treated as pledged revenues of the project for the

16-48  purposes of subsection 3 of NRS 350.020.

17-1    7.  As used in this section, “public utility” has the meaning ascribed to

17-2  it in NRS 704.020 and does not include the persons excluded by NRS

17-3  704.030.

17-4    Sec. 29.  NRS 280.266 is hereby amended to read as follows:

17-5    280.266  1.  Upon the adoption of a resolution pursuant to NRS

17-6  350.087, the committee may issue a medium-term obligation to purchase

17-7  capital equipment or enter into a lease-purchase agreement for capital

17-8  equipment.

17-9    2.  The committee is not required to comply with the provisions of

17-10  NRS 350.089 if it [issues a medium-term obligation for] enters a lease-

17-11  purchase agreement for capital equipment.

17-12  Sec. 30.  Chapter 354 of NRS is hereby amended by adding thereto the

17-13  provisions set forth as sections 31 and 32 of this act.

17-14  Sec. 31.  1.  The committee on local government finance may adopt

17-15  such regulations as are necessary for the administration of this chapter.

17-16  2.  Any regulations adopted by the committee on local government

17-17  finance must be adopted in the manner prescribed for state agencies in

17-18  chapter 233B of NRS.

17-19  Sec. 32.  The proceeds from any obligation issued by a local

17-20  government that has a term which is more than 1 year must not be used

17-21  to pay operating expenses, except that:

17-22  1.  The proceeds of any obligation issued to construct or acquire a

17-23  facility may be used to pay operating expenses for the period provided in

17-24  subsection 7 of NRS 350.516.

17-25  2.  The proceeds of a medium-term obligation issued by a local

17-26  government with respect to which the Nevada tax commission has

17-27  determined that a financial emergency exists pursuant to NRS 354.685

17-28  may be used to pay operating expenses with the approval of the executive

17-29  director of the department of taxation.

17-30  Sec. 33.  NRS 354.475 is hereby amended to read as follows:

17-31  354.475  1.  All special districts subject to the provisions of the Local

17-32  Government Budget Act with annual total expenditures of less than

17-33  $100,000 may petition the department of taxation for exemption from the

17-34  requirements of the Local Government Budget Act for the filing of certain

17-35  budget documents and audit reports. Such districts may further petition to

17-36  return to a cash method of accounting. The minimum required of such

17-37  districts is the filing with the department of taxation of an annual budget on

17-38  or before April 15 of each year and the filing of quarterly reports in

17-39  accordance with NRS 354.602. Such petitions must be received by the

17-40  department of taxation before December 31 to be effective for the

17-41  succeeding fiscal year or, in a case of an annual audit exemption, to be

17-42  effective for the current fiscal year. A board of county commissioners may

17-43  request the department of taxation to audit the financial records of such an

17-44  exempt district.

17-45  2.  Such districts are exempt from all publication requirements of the

17-46  Local Government Budget Act, except that the department of taxation by

17-47  regulation shall require an annual publication of a notice of budget

17-48  adoption and filing. The [department of taxation] committee on local

18-1  government finance shall adopt regulations pursuant to NRS 354.594

18-2  which are necessary to carry out the purposes of this section.

18-3    3.  The revenue recorded in accounts that are kept on a cash basis must

18-4  consist of cash items.

18-5    4.  As used in this section, “cash basis” means the system of accounting

18-6  under which revenues are recorded only when received and expenditures or

18-7  expenses are recorded only when paid.

18-8    Sec. 34.  NRS 354.535 is hereby amended to read as follows:

18-9    354.535  “General long-term debt” means debt which is legally payable

18-10  from general revenues and is backed by the full faith and credit of a

18-11  governmental unit. The term includes debt represented by local

18-12  government securities issued pursuant to chapter 350 of NRS and debt

18-13  created for medium-term obligations pursuant to NRS [350.085] 350.087

18-14  to 350.095, inclusive.

18-15  Sec. 35.  NRS 354.594 is hereby amended to read as follows:

18-16  354.594  The [department of taxation] committee on local government

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

18-18  regulations, procedures and report forms for compliance with NRS 354.470

18-19  to 354.626, inclusive. [It shall make such determinations after hearing the

18-20  advice and recommendations of the committee on local government

18-21  finance.]

18-22  Sec. 36.  NRS 354.598 is hereby amended to read as follows:

18-23  354.598  1.  At the time and place advertised for public hearing, or at

18-24  any time and place to which the public hearing is from time to time

18-25  adjourned, the governing body shall hold a public hearing on the tentative

18-26  budget, at which time interested persons must be given an opportunity to

18-27  be heard.

18-28  2.  At the public hearing, the governing body shall indicate changes, if

18-29  any, to be made in the tentative budget, and shall adopt a final budget by

18-30  the favorable votes of a majority of all members of the governing body.

18-31  Except as otherwise provided in this subsection, the final budget must be

18-32  adopted on or before June 1 of each year. The final budgets of school

18-33  districts must be adopted on or before June 8 of each year and must be

18-34  accompanied by copies of the written report and written procedure

18-35  prepared pursuant to subsection 3 of NRS 385.351. Should the governing

18-36  body fail to adopt a final budget that complies with the requirements of law

18-37  and the regulations of the [department of taxation] committee on local

18-38  government finance on or before the required date, the budget adopted and

18-39  approved by the department of taxation for the current year, adjusted as to

18-40  content and rate in such a manner as the department of taxation may

18-41  consider necessary, automatically becomes the budget for the ensuing

18-42  fiscal year. When a budget has been so adopted by default, the governing

18-43  body may not reconsider the budget without the express approval of the

18-44  department of taxation. If the default budget creates a combined ad

18-45  valorem tax rate in excess of the limit imposed by NRS 361.453, the

18-46  Nevada tax commission shall adjust the budget as provided in NRS

18-47  361.4547 or 361.455.

18-48  3.  The final budget must be certified by a majority of all members of

18-49  the governing body and a copy of it, together with an affidavit of proof of

19-1  publication of the notice of the public hearing, must be transmitted to the

19-2  Nevada tax commission. If a tentative budget is adopted by default as

19-3  provided in subsection 2, the clerk of the governing body shall certify the

19-4  budget and transmit to the Nevada tax commission a copy of the budget,

19-5  together with an affidavit of proof of the notice of the public hearing, if

19-6  that notice was published. Certified copies of the final budget must be

19-7  distributed as determined by the department of taxation.

19-8    4.  Upon the adoption of the final budget or the amendment of the

19-9  budget in accordance with NRS 354.606, the several amounts stated in it as

19-10  proposed expenditures are appropriated for the purposes indicated in the

19-11  budget.

19-12  5.  No governing body may adopt any budget which appropriates for

19-13  any fund any amount in excess of the budget resources of that fund.

19-14  6.  On or before January 1 of each school year, each school district

19-15  shall adopt an amendment to its final budget after the count of pupils is

19-16  completed pursuant to subsection 1 of NRS 387.1233. The amendment

19-17  must reflect any adjustments necessary as a result of the completed count

19-18  of pupils.

19-19  Sec. 37.  NRS 354.59811 is hereby amended to read as follows:

19-20     354.59811  1.  Except as otherwise provided in NRS 354.59813,

19-21  354.59815, 354.5982, 354.5987, 354.59871, 354.705, 354.723, 450.425,

19-22  450.760, 540A.265 and 543.600, and section 4 of Senate Bill No. 203 of

19-23  this [act,] session, for each fiscal year beginning on or after July 1, 1989,

19-24  the maximum amount of money that a local government, except a school

19-25  district, a district to provide a telephone number for emergencies[,] or a

19-26  redevelopment agency, may receive from taxes ad valorem, other than

19-27  those attributable to the net proceeds of minerals or those levied for the

19-28  payment of bonded indebtedness and interest thereon incurred as general

19-29  long-term debt of the issuer, or for the payment of obligations issued to pay

19-30  the cost of a water project pursuant to NRS 349.950, or for the payment of

19-31  obligations under a capital lease executed before April 30, 1981, must be

19-32  calculated as follows:

19-33  (a) The rate must be set so that when applied to the current fiscal year’s

19-34  assessed valuation of all property which was on the preceding fiscal year’s

19-35  assessment roll, together with the assessed valuation of property on the

19-36  central assessment roll which was allocated to the local government, but

19-37  excluding any assessed valuation attributable to the net proceeds of

19-38  minerals, assessed valuation attributable to a redevelopment area and

19-39  assessed valuation of a fire protection district attributable to real property

19-40  which is transferred from private ownership to public ownership for the

19-41  purpose of conservation, it will produce 106 percent of the maximum

19-42  revenue allowable from taxes ad valorem for the preceding fiscal year,

19-43  except that the rate so determined must not be less than the rate allowed for

19-44  the previous fiscal year, except for any decrease attributable to the

19-45  imposition of a tax pursuant to NRS 354.59813 in the previous year.

19-46  (b) This rate must then be applied to the total assessed valuation,

19-47  excluding the assessed valuation attributable to the net proceeds of

19-48  minerals and the assessed valuation of a fire protection district attributable

19-49  to real property which is transferred from private ownership to public

20-1  ownership for the purpose of conservation , but including new real

20-2  property, possessory interests and mobile homes, for the current fiscal year

20-3  to determine the allowed revenue from taxes ad valorem for the local

20-4  government.

20-5    2.  As used in this section, “general long-term debt” does not include

20-6  debt created for medium-term obligations pursuant to NRS [350.085]

20-7  350.087 to 350.095, inclusive.

20-8    Sec. 38.  NRS 354.59817 is hereby amended to read as follows:

20-9     354.59817  1.  In addition to the allowed revenue from taxes ad

20-10  valorem determined pursuant to NRS 354.59811, upon the approval of a

20-11  majority of the registered voters of a county voting upon the question, the

20-12  board of county commissioners may levy a tax ad valorem on all taxable

20-13  property in the county at a rate not to exceed 15 cents per $100 of the

20-14  assessed valuation of the county. A tax must not be levied pursuant to this

20-15  section for more than 10 years.

20-16  2.  The board of county commissioners shall direct the county treasurer

20-17  to distribute quarterly the proceeds of any tax levied pursuant to the

20-18  provisions of this section among the county and the cities and towns within

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

20-20  distribution factor of each of those local governments for the 1990-1991

20-21  fiscal year bears to the sum of the supplemental city-county relief tax

20-22  distribution factors of all of the local governments in the county for the

20-23  1990-1991 fiscal year.

20-24  3.  The board of county commissioners shall not reduce the rate of any

20-25  tax levied pursuant to the provisions of this section without the approval of

20-26  each of the local governments that receives a portion of the tax, except that,

20-27  if a local government declines to receive its portion of the tax in a

20-28  particular year the levy may be reduced by the amount that local

20-29  government would have received.

20-30  4.  The governing body of each local government that receives a

20-31  portion of the revenue from the tax levied pursuant to this section shall

20-32  establish a separate fund for capital projects for the purposes set forth in

20-33  this section. All interest and income earned on the money in the fund must

20-34  also be deposited in the fund. The money in the fund may only be used for:

20-35  (a) The purchase of capital assets including land, improvements to land

20-36  and major items of equipment;

20-37  (b) The construction or replacement of public works; and

20-38  (c) The renovation of existing governmental facilities, not including

20-39  normal recurring maintenance.

20-40  The money in the fund must not be used to finance the issuance or the

20-41  repayment of bonds or other obligations, including medium-term

20-42  obligations[.] and installment-purchase agreements.

20-43  5.  Money may be retained in the fund for not more than 10 years to

20-44  allow the funding of projects without the issuance of bonds or other

20-45  obligations. For the purpose of determining the length of time a deposit of

20-46  money has been retained in the fund, all money withdrawn from the fund

20-47  shall be deemed to be taken on a first-in, first-out basis. No money in the

20-48  fund at the end of the fiscal year may revert to any other fund, nor may the

21-1  money be a surplus for any other purpose than those specified in this

21-2  section.

21-3    6.  The annual budget and audit report of each local government must

21-4  specifically identify this fund and must indicate in detail the projects that

21-5  have been funded with money from the fund. Any planned accumulation of

21-6  the money in the fund must also be specifically identified.

21-7    7.  The projects on which money raised pursuant to this section will be

21-8  expended must be approved by the voters in the question submitted

21-9  pursuant to subsection 1 or in a separate question submitted on the ballot at

21-10  a [primary,] general or special election.

21-11  Sec. 39.  NRS 354.59891 is hereby amended to read as follows:

21-12     354.59891  1.  As used in this section:

21-13  (a) “Building permit” means the official document or certificate issued

21-14  by the building officer of a local government which authorizes the

21-15  construction of a structure.

21-16  (b) “Building permit basis” means the combination of the rate and the

21-17  valuation method used to calculate the total building permit fee.

21-18  (c) “Building permit fee” means the total fees that must be paid before

21-19  the issuance of a building permit, including without limitation, all permit

21-20  fees and inspection fees. The term does not include, without limitation, fees

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

21-22  for the improvement of transportation imposed pursuant to NRS 278.710,

21-23  any fee imposed pursuant to NRS 244.386 or any amount expended to

21-24  change the zoning of the property.

21-25  (d) “Current asset” means any cash maintained in an enterprise fund and

21-26  any interest or other income earned on the money in the enterprise fund

21-27  that, at the end of the current fiscal year, is anticipated by a local

21-28  government to be consumed or converted into cash during the next ensuing

21-29  fiscal year.

21-30  (e) “Current liability” means any debt incurred by a local government to

21-31  provide the services associated with issuing building permits that, at the

21-32  end of the current fiscal year, is determined by the local government to

21-33  require payment within the next ensuing fiscal year.

21-34  (f) “Operating cost” means the amount paid by a local government for

21-35  supplies, services, salaries, wages and employee benefits to provide the

21-36  services associated with issuing building permits.

21-37  (g) “Working capital” means the excess of current assets over current

21-38  liabilities, as determined by the local government at the end of the current

21-39  fiscal year.

21-40  2.  Except as otherwise provided in subsections 3 and 4, a local

21-41  government shall not increase its building permit basis by more than an

21-42  amount equal to the building permit basis on June 30, 1989, multiplied by a

21-43  percentage equal to the percentage increase in the consumer price index

21-44  from January 1, 1988, to the January 1 next preceding the fiscal year for

21-45  which the calculation is made.

21-46  3.  A local government may submit an application to increase its

21-47  building permit basis by an amount greater than otherwise allowable

21-48  pursuant to subsection 2 to the Nevada tax commission. The Nevada tax

21-49  commission may allow the increase only if it finds that:

22-1    (a) Emergency conditions exist which impair the ability of the local

22-2  government to perform the basic functions for which it was created; or

22-3    (b) The building permit basis of the local government is substantially

22-4  below that of other local governments in the state and the cost of providing

22-5  the services associated with the issuance of building permits in the

22-6  previous fiscal year exceeded the total revenue received from building

22-7  permit fees, excluding any amount of residential construction tax collected,

22-8  for that fiscal year.

22-9    4.  Upon application by a local government, the Nevada tax

22-10  commission shall exempt the local government from the limitation on the

22-11  increase of its building permit basis if:

22-12  (a) The local government creates an enterprise fund exclusively for

22-13  building permit fees;

22-14  (b) Any interest or other income earned on the money in the enterprise

22-15  fund is credited to the fund;

22-16  (c) Except as otherwise provided in subsection 5, the local government

22-17  maintains a balance of unreserved working capital in the enterprise fund

22-18  that does not exceed an amount equal to 9 months’ operating costs for the

22-19  program for the issuance of building permits of the local government; and

22-20  (d) The local government does not use any of the money in the

22-21  enterprise fund for any purpose other than the actual direct and indirect

22-22  costs of the program for the issuance of building permits, including without

22-23  limitation, the cost of checking plans, issuing permits, inspecting buildings

22-24  and administering the program. The [executive director of the department

22-25  of taxation] committee on local government finance shall adopt

22-26  regulations governing the permissible expenditures from an enterprise fund

22-27  pursuant to this paragraph.

22-28  5.  In addition to the balance of unreserved working capital authorized

22-29  pursuant to subsection 4, the local government may maintain in an

22-30  enterprise fund created pursuant to this section an amount of working

22-31  capital for the following purposes:

22-32  (a) An amount sufficient to pay the debt service for 1 year on any debt

22-33  incurred by the local government to provide the services associated with

22-34  issuing building permits;

22-35  (b) An amount that does not exceed the total amount of expenditures for

22-36  the program for the issuance of building permits of the local government

22-37  set forth in the capital improvement plan of the local government prepared

22-38  pursuant to NRS 354.5945 for the current fiscal year; and

22-39  (c) An amount that does not exceed 4 percent of the annual operating

22-40  costs of the program for the issuance of building permits of the local

22-41  government which must be used to pay for unanticipated capital

22-42  replacement.

22-43  6.  Any amount in an enterprise fund created pursuant to this section

22-44  that is designated for special use, including, without limitation, prepaid

22-45  fees and any other amount subject to a contractual agreement, must be

22-46  identified as a restricted asset and must not be included as a current asset in

22-47  the calculation of working capital.

22-48  7.  If a balance in excess of the amount authorized pursuant to

22-49  subsections 4 and 5 is maintained in an enterprise fund created pursuant to

23-1  this section at the close of 2 consecutive fiscal years, the local government

23-2  shall reduce the building permit fees it charges by an amount that is

23-3  sufficient to ensure that the balance in the enterprise fund at the close of the

23-4  fiscal year next following those 2 consecutive fiscal years does not exceed

23-5  the amount authorized pursuant to subsections 4 and 5.

23-6    Sec. 40.  NRS 354.6105 is hereby amended to read as follows:

23-7    354.6105  1.  A local government [in a county whose population is

23-8  100,000 or more shall] may establish a fund for the extraordinary

23-9  maintenance, repair or improvement of capital projects. [The local

23-10  government shall establish within that fund a separate account for each

23-11  capital project it undertakes, except a capital project for the:

23-12  (a) Construction of public roads;

23-13  (b) Control of floods; or

23-14  (c) Transmission or treatment of water, waste water or sewerage.

23-15  The local government shall allocate an amount equal to one-half of 1

23-16  percent of the total amount of the bonds sold for each capital project and

23-17  deposit that amount in the separate account established for that capital

23-18  project. The proceeds from the sale of those bonds or any other money of

23-19  the local government may be used to carry out the provisions of this

23-20  subsection.]

23-21  2.  Any interest and income earned on the money in [an account within]

23-22  the fund in excess of any amount which is reserved for rebate payments to

23-23  the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is

23-24  otherwise required to be applied in a specific manner by the Internal

23-25  Revenue Code of 1986, as amended, must be credited to [that account.

23-26  3.  The] the fund.

23-27  3.  Except as otherwise provided in NRS 374A.020, the money in

23-28  [each account within] the fund may be used only for the extraordinary

23-29  maintenance, repair or improvement of [the capital project or a facility

23-30  which replaces that capital project.] capital projects or facilities that

23-31  replace capital projects of the entity that made the deposits in the fund.

23-32  The money in [each account within] the fund at the end of the fiscal year

23-33  may not revert to any other fund or be a surplus for any purpose other than

23-34  the purpose specified in this subsection. [If the local government sells any

23-35  capital project for which an account within the fund was established, any

23-36  balance remaining in that account must be used to reduce the debt of the

23-37  local government.

23-38  4.  The annual budget and audit report of the local government

23-39  prepared pursuant to NRS 354.624 must specifically identify:

23-40  (a) Each fund and every account within that fund established pursuant

23-41  to this section and indicate in detail any extraordinary maintenance, repairs

23-42  or improvements of the capital project that have been paid for with money

23-43  from the fund; and

23-44  (b) Any planned accumulation of money in each fund and every account

23-45  within the fund.

23-46  The audit report must include a statement by the auditor whether the local

23-47  government has complied with the provisions of this subsection.]

23-48  4.  As used in this section, “extraordinary maintenance, repair or

23-49  improvement” means all expenses ordinarily incurred not more than

24-1  once every 5 years to maintain a local governmental facility or capital

24-2  project in a fit operating condition.

24-3    Sec. 41.  NRS 354.6116 is hereby amended to read as follows:

24-4    354.6116  A local government, except a school district, that receives

24-5  revenue from taxes ad valorem from a lessee or user of property which is

24-6  taxable pursuant to NRS 361.157 or 361.159 shall deposit the revenue in or

24-7  transfer the revenue to one or more of the funds established by the local

24-8  government pursuant to NRS [354.611,] 354.6113 or 354.6115 and use that

24-9  revenue only for the purposes authorized by those sections if the revenue

24-10  was received in:

24-11  1.  A fiscal year after the fiscal year the taxes were owed; or

24-12  2.  The fiscal year the taxes are owed and the taxes were excluded from

24-13  the estimate of revenue from taxes ad valorem for the local government

24-14  pursuant to NRS 354.597.

24-15  Sec. 42.  NRS 354.6117 is hereby amended to read as follows:

24-16  354.6117  1.  Except as otherwise provided in subsection 2, the total

24-17  amount of money which may be transferred in a fiscal year from the

24-18  general fund of a local government to the funds established pursuant to

24-19  NRS [354.611,] 354.6113 and 354.6115 must not exceed 10 percent of the

24-20  total amount of the budgeted expenditures of the general fund, plus any

24-21  money transferred from the general fund, other than the money transferred

24-22  to those funds, for that fiscal year.

24-23  2.  Any money that a local government, pursuant to NRS 354.6116,

24-24  deposits in or transfers to one or more of the funds established by the local

24-25  government pursuant to NRS [354.611,] 354.6113 or 354.6115:

24-26  (a) Is not subject to the limitation on the amount of money that a local

24-27  government may transfer to those funds pursuant to subsection 1.

24-28  (b) Must not be included in the determination of the total amount of

24-29  money transferred to those funds for the purposes of the limitation set forth

24-30  in subsection 1.

24-31  Sec. 43.  NRS 354.626 is hereby amended to read as follows:

24-32  354.626  1.  No governing body or member thereof, officer, office,

24-33  department or agency may, during any fiscal year, expend or contract to

24-34  expend any money or incur any liability, or enter into any contract which

24-35  by its terms involves the expenditure of money, in excess of the amounts

24-36  appropriated for that function, other than bond repayments, medium-term

24-37  obligation repayments, and any other long-term contract expressly

24-38  authorized by law. Any officer or employee of a local government who

24-39  willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a

24-40  misdemeanor, and upon conviction thereof ceases to hold his office or

24-41  employment. Prosecution for any violation of this section may be

24-42  conducted by the attorney general, or, in the case of incorporated cities,

24-43  school districts or special districts, by the district attorney.

24-44  2.  Without limiting the generality of the exceptions contained in

24-45  subsection 1, the provisions of this section specifically do not apply to:

24-46  (a) Purchase of comprehensive general liability policies of insurance

24-47  which require an audit at the end of the term thereof.

24-48  (b) Long-term cooperative agreements as authorized by chapter 277 of

24-49  NRS.

25-1    (c) Long-term contracts in connection with planning and zoning as

25-2  authorized by NRS 278.010 to 278.630, inclusive.

25-3    (d) Long-term contracts for the purchase of utility service such as, but

25-4  not limited to, heat, light, sewerage, power, water and telephone service.

25-5    (e) Contracts between a local government and an employee covering

25-6  professional services to be performed within 24 months following the date

25-7  of such contract or contracts entered into between local government

25-8  employers and employee organizations.

25-9    (f) Contracts between a local government and any person for the

25-10  construction or completion of public works, money for which has been or

25-11  will be provided by the proceeds of a sale of bonds , [or] medium-term

25-12  obligations or an installment-purchase agreement and that are entered

25-13  into by the local government after:

25-14     (1) Any election required for the approval of the bonds or

25-15  installment-purchase agreement has been held;

25-16     (2) Any approvals by any other governmental entity required to be

25-17  obtained before the bonds , [or] medium-term obligations or installment-

25-18  purchase agreement can be issued have been obtained; and

25-19     (3) The ordinance or resolution that specifies each of the terms of the

25-20  bonds , [or] medium-term obligations[,] or installment-purchase

25-21  agreement, except those terms that are set forth in paragraphs (a) to (e),

25-22  inclusive, of subsection 2 of NRS 350.165, has been adopted.

25-23  Neither the fund balance of a governmental fund nor the equity balance in

25-24  any proprietary fund may be used unless appropriated in a manner

25-25  provided by law.

25-26  (g) Contracts which are entered into by a local government and

25-27  delivered to any person solely for the purpose of acquiring supplies and

25-28  equipment necessarily ordered in the current fiscal year for use in an

25-29  ensuing fiscal year, and which, under the method of accounting adopted by

25-30  the local government, will be charged against an appropriation of a

25-31  subsequent fiscal year. Purchase orders evidencing such contracts are

25-32  public records available for inspection by any person on demand.

25-33  (h) Long-term contracts for the furnishing of television or FM radio

25-34  broadcast translator signals as authorized by NRS 269.127.

25-35  (i) The receipt and proper expenditure of money received pursuant to a

25-36  grant awarded by an agency of the Federal Government.

25-37  (j) The incurrence of obligations beyond the current fiscal year under a

25-38  lease or contract for installment purchase which contains a provision that

25-39  the obligation incurred thereby is extinguished by the failure of the

25-40  governing body to appropriate money for the ensuing fiscal year for the

25-41  payment of the amounts then due.

25-42  Sec. 44.  NRS 354.705 is hereby amended to read as follows:

25-43  354.705  1.  As soon as practicable after the department takes over the

25-44  management of a local government, the executive director shall:

25-45  (a) Determine the total amount of expenditures necessary to allow the

25-46  local government to perform the basic functions for which it was created;

25-47  (b) Determine the amount of revenue reasonably expected to be

25-48  available to the local government; and

26-1    (c) Consider any alternative sources of revenue available to the local

26-2  government.

26-3    2.  If the executive director determines that the available revenue is not

26-4  sufficient to provide for the payment of required debt service and operating

26-5  expenses, he may submit his findings to the committee who shall review

26-6  the determinations made by the executive director. If the committee

26-7  determines that additional revenue is needed, it shall prepare a

26-8  recommendation to the Nevada tax commission as to which one or more of

26-9  the following additional taxes or charges should be imposed by the local

26-10  government:

26-11  (a) The levy of a property tax up to a rate which when combined with

26-12  all other overlapping rates levied in the state does not exceed $4.50 on each

26-13  $100 of assessed valuation.

26-14  (b) An additional tax on transient lodging at a rate not to exceed 1

26-15  percent of the gross receipts from the rental of transient lodging within the

26-16  boundaries of the local government upon all persons in the business of

26-17  providing lodging. Any such tax must be collected and administered in the

26-18  same manner as all other taxes on transient lodging are collected by or for

26-19  the local government.

26-20  (c) Additional service charges appropriate to the local government.

26-21  (d) If the local government is a county or has boundaries that are

26-22  conterminous with the boundaries of the county:

26-23     (1) An additional tax on the gross receipts from the sale or use of

26-24  tangible personal property not to exceed one quarter of 1 percent

26-25  throughout the county. The ordinance imposing any such tax must include

26-26  provisions in substance which comply with the requirements of subsections

26-27  2 to 5, inclusive, of NRS 377A.030.

26-28     (2) An additional governmental services tax of not more than 1 cent

26-29  on each $1 of valuation of the vehicle for the privilege of operating upon

26-30  the public streets, roads and highways of the county on each vehicle based

26-31  in the county except those vehicles exempt from the governmental services

26-32  tax imposed pursuant to chapter 371 of NRS or a vehicle subject to NRS

26-33  706.011 to 706.861, inclusive, which is engaged in interstate or intercounty

26-34  operations. As used in this subparagraph, “based” has the meaning ascribed

26-35  to it in NRS 482.011.

26-36  3.  Upon receipt of the plan from the committee, a panel consisting of

26-37  three members of the committee appointed by the committee and three

26-38  members of the Nevada tax commission appointed by the Nevada tax

26-39  commission shall hold a public hearing at a location within the boundaries

26-40  of the local government in which the severe financial emergency exists

26-41  after giving public notice of the hearing at least 10 days before the date on

26-42  which the hearing will be held. In addition to the public notice, the

26-43  [Nevada tax commission] panel shall give notice to the governing body of

26-44  each local government whose jurisdiction overlaps with the jurisdiction of

26-45  the local government in which the severe financial emergency exists.

26-46  4.  After the public hearing[,] conducted pursuant to subsection 3, the

26-47  Nevada tax commission may adopt the plan as submitted or adopt a revised

26-48  plan. Any plan adopted pursuant to this section must include the duration

27-1  for which any new or increased taxes or charges may be collected which

27-2  must not exceed 5 years.

27-3    5.  Upon adoption of the plan by the Nevada tax commission, the local

27-4  government in which the severe financial emergency exists shall impose or

27-5  cause to be imposed the additional taxes and charges included in the plan

27-6  for the duration stated in the plan or until the severe financial emergency

27-7  has been determined by the Nevada tax commission to have ceased to

27-8  exist.

27-9    6.  The allowed revenue from taxes ad valorem determined pursuant to

27-10  NRS 354.59811 does not apply to any additional property tax levied

27-11  pursuant to this section.

27-12  Sec. 45.  NRS 355.170 is hereby amended to read as follows:

27-13  355.170  1.  Except as otherwise provided in this section, NRS

27-14  354.750 and section 1 of Assembly Bill No. 96 of this [act,] session, a

27-15  board of county commissioners, a board of trustees of a county school

27-16  district or the governing body of an incorporated city may purchase for

27-17  investment the following securities and no others:

27-18  (a) Bonds and debentures of the United States, the maturity dates of

27-19  which do not extend more than 10 years after the date of purchase.

27-20  (b) Farm loan bonds, consolidated farm loan bonds, debentures,

27-21  consolidated debentures and other obligations issued by federal land banks

27-22  and federal intermediate credit banks under the authority of the Federal

27-23  Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012, inclusive, and §§ 1021

27-24  to 1129, inclusive, and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to

27-25  2259, inclusive, and bonds, debentures, consolidated debentures and other

27-26  obligations issued by banks for cooperatives under the authority of the

27-27  Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive,

27-28  and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.

27-29  (c) Bills and notes of the United States Treasury, the maturity date of

27-30  which is not more than 10 years after the date of purchase.

27-31  (d) Obligations of an agency or instrumentality of the United States of

27-32  America or a corporation sponsored by the government, the maturity date

27-33  of which is not more than 10 years after the date of purchase.

27-34  (e) Negotiable certificates of deposit issued by commercial banks,

27-35  insured credit unions or savings and loan associations.

27-36  (f) Securities which have been expressly authorized as investments for

27-37  local governments or agencies, as defined in NRS 354.474, by any

27-38  provision of Nevada Revised Statutes or by any special law.

27-39  (g) Nonnegotiable certificates of deposit issued by insured commercial

27-40  banks, insured credit unions or insured savings and loan associations,

27-41  except certificates that are not within the limits of insurance provided by an

27-42  instrumentality of the United States, unless those certificates are

27-43  collateralized in the same manner as is required for uninsured deposits by a

27-44  county treasurer pursuant to NRS 356.133. For the purposes of this

27-45  paragraph, any reference in NRS 356.133 to a “county treasurer” or “board

27-46  of county commissioners” shall be deemed to refer to the appropriate

27-47  financial officer or governing body of the county, school district or city

27-48  purchasing the certificates.

28-1    (h) Subject to the limitations contained in NRS 355.177, negotiable

28-2  notes or [short-time negotiable bonds] medium-term obligations issued by

28-3  local governments of the State of Nevada pursuant to NRS [350.091.]

28-4  350.087 to 350.095, inclusive.

28-5    (i) Bankers’ acceptances of the kind and maturities made eligible by law

28-6  for rediscount with Federal Reserve Banks, and generally accepted by

28-7  banks or trust companies which are members of the Federal Reserve

28-8  System. Eligible bankers’ acceptances may not exceed 180 days’ maturity.

28-9  Purchases of bankers’ acceptances may not exceed 20 percent of the

28-10  money available to a local government for investment as determined on the

28-11  date of purchase.

28-12  (j) Obligations of state and local governments if:

28-13     (1) The interest on the obligation is exempt from gross income for

28-14  federal income tax purposes; and

28-15     (2) The obligation has been rated “A” or higher by one or more

28-16  nationally recognized bond credit rating agencies.

28-17  (k) Commercial paper issued by a corporation organized and operating

28-18  in the United States or by a depository institution licensed by the United

28-19  States or any state and operating in the United States that:

28-20     (1) Is purchased from a registered broker-dealer;

28-21     (2) At the time of purchase has a remaining term to maturity of no

28-22  more than 270 days; and

28-23     (3) Is rated by a nationally recognized rating service as “A-1,” “P-1”

28-24  or its equivalent, or better,

28-25  except that investments pursuant to this paragraph may not, in aggregate

28-26  value, exceed 20 percent of the total portfolio as determined on the date of

28-27  purchase, and if the rating of an obligation is reduced to a level that does

28-28  not meet the requirements of this paragraph, it must be sold as soon as

28-29  possible.

28-30  (l) Money market mutual funds which:

28-31     (1) Are registered with the Securities and Exchange Commission;

28-32     (2) Are rated by a nationally recognized rating service as “AAA” or

28-33  its equivalent; and

28-34     (3) Invest only in:

28-35       (I) Securities issued by the Federal Government or agencies of the

28-36  Federal Government;

28-37        (II) Master notes, bank notes or other short-term commercial paper

28-38  rated by a nationally recognized rating service as “A-1,” “P-1” or its

28-39  equivalent, or better, issued by a corporation organized and operating in the

28-40  United States or by a depository institution licensed by the United States or

28-41  any state and operating in the United States; or

28-42        (III) Repurchase agreements that are fully collateralized by the

28-43  obligations described in sub-subparagraphs (I) and (II).

28-44  2.  Repurchase agreements are proper and lawful investments of money

28-45  of a board of county commissioners, a board of trustees of a county school

28-46  district or a governing body of an incorporated city for the purchase or sale

28-47  of securities which are negotiable and of the types listed in subsection 1 if

28-48  made in accordance with the following conditions:

29-1    (a) The board of county commissioners, the board of trustees of the

29-2  school district or the governing body of the city shall designate in advance

29-3  and thereafter maintain a list of qualified counterparties which:

29-4      (1) Regularly provide audited and, if available, unaudited financial

29-5  statements;

29-6      (2) The board of county commissioners, the board of trustees of the

29-7  school district or the governing body of the city has determined to have

29-8  adequate capitalization and earnings and appropriate assets to be highly

29-9  [credit worthy;] creditworthy; and

29-10     (3) Have executed a written master repurchase agreement in a form

29-11  satisfactory to the board of county commissioners, the board of trustees of

29-12  the school district or the governing body of the city pursuant to which all

29-13  repurchase agreements are entered into. The master repurchase agreement

29-14  must require the prompt delivery to the board of county commissioners, the

29-15  board of trustees of the school district or the governing body of the city and

29-16  the appointed custodian of written confirmations of all transactions

29-17  conducted thereunder, and must be developed giving consideration to the

29-18  Federal Bankruptcy Act.

29-19  (b) In all repurchase agreements:

29-20     (1) At or before the time money to pay the purchase price is

29-21  transferred, title to the purchased securities must be recorded in the name

29-22  of the appointed custodian, or the purchased securities must be delivered

29-23  with all appropriate, executed transfer instruments by physical delivery to

29-24  the custodian;

29-25     (2) The board of county commissioners, the board of trustees of the

29-26  school district or the governing body of the city must enter a written

29-27  contract with the custodian appointed pursuant to subparagraph (1) which

29-28  requires the custodian to:

29-29        (I) Disburse cash for repurchase agreements only upon receipt of

29-30  the underlying securities;

29-31        (II) Notify the board of county commissioners, the board of

29-32  trustees of the school district or the governing body of the city when the

29-33  securities are marked to the market if the required margin on the agreement

29-34  is not maintained;

29-35        (III) Hold the securities separate from the assets of the custodian;

29-36  and

29-37        (IV) Report periodically to the board of county commissioners, the

29-38  board of trustees of the school district or the governing body of the city

29-39  concerning the market value of the securities;

29-40     (3) The market value of the purchased securities must exceed 102

29-41  percent of the repurchase price to be paid by the counterparty and the value

29-42  of the purchased securities must be marked to the market weekly;

29-43     (4) The date on which the securities are to be repurchased must not

29-44  be more than 90 days after the date of purchase; and

29-45     (5) The purchased securities must not have a term to maturity at the

29-46  time of purchase in excess of 10 years.

29-47  3.  The securities described in paragraphs (a), (b) and (c) of subsection

29-48  1 and the repurchase agreements described in subsection 2 may be

29-49  purchased when, in the opinion of the board of county commissioners, the

30-1  board of trustees of a county school district or the governing body of the

30-2  city, there is sufficient money in any fund of the county, the school district

30-3  or city to purchase those securities and the purchase will not result in the

30-4  impairment of the fund for the purposes for which it was created.

30-5    4.  When the board of county commissioners, the board of trustees of a

30-6  county school district or the governing body of the city has determined that

30-7  there is available money in any fund or funds for the purchase of bonds as

30-8  set out in subsection 1 or 2, those purchases may be made and the bonds

30-9  paid for out of any one or more of the funds, but the bonds must be

30-10  credited to the funds in the amounts purchased, and the money received

30-11  from the redemption of the bonds, as and when redeemed, must go back

30-12  into the fund or funds from which the purchase money was taken

30-13  originally.

30-14  5.  Any interest earned on money invested pursuant to subsection 3,

30-15  may, at the discretion of the board of county commissioners, the board of

30-16  trustees of a county school district or the governing body of the city, be

30-17  credited to the fund from which the principal was taken or to the general

30-18  fund of the county, school district or incorporated city.

30-19  6.  The board of county commissioners, the board of trustees of a

30-20  county school district or the governing body of an incorporated city may

30-21  invest any money apportioned into funds and not invested pursuant to

30-22  subsection 3 and any money not apportioned into funds in bills and notes

30-23  of the United States Treasury, the maturity date of which is not more than 1

30-24  year after the date of investment. These investments must be considered as

30-25  cash for accounting purposes, and all the interest earned on them must be

30-26  credited to the general fund of the county, school district or incorporated

30-27  city.

30-28  7.  This section does not authorize the investment of money

30-29  administered pursuant to a contract, debenture agreement or grant in a

30-30  manner not authorized by the terms of the contract, agreement or grant.

30-31  8.  As used in this section:

30-32  (a) “Counterparty” means a bank organized and operating or licensed to

30-33  operate in the United States pursuant to federal or state law or a securities

30-34  dealer which is:

30-35     (1) A registered broker-dealer;

30-36     (2) Designated by the Federal Reserve Bank of New York as a

30-37  “primary” dealer in United States government securities; and

30-38     (3) In full compliance with all applicable capital requirements.

30-39  (b) “Repurchase agreement” means a purchase of securities by a board

30-40  of county commissioners, the board of trustees of a county school district

30-41  or the governing body of an incorporated city from a counterparty which

30-42  commits to repurchase those securities or securities of the same issuer,

30-43  description, issue date and maturity on or before a specified date for a

30-44  specified price.

30-45  Sec. 46.  NRS 360.750 is hereby amended to read as follows:

30-46  360.750  1.  A person who intends to locate or expand a business in

30-47  this state may apply to the commission on economic development for a

30-48  partial abatement of one or more of the taxes imposed on the new or

30-49  expanded business pursuant to chapter 361, 364A or 374 of NRS.

31-1    2.  The commission on economic development shall approve an

31-2  application for a partial abatement if the commission makes the following

31-3  determinations:

31-4    (a) The business is consistent with:

31-5      (1) The state plan for industrial development and diversification that

31-6  is developed by the commission pursuant to NRS 231.067; and

31-7      (2) Any guidelines adopted pursuant to the state plan.

31-8    (b) The applicant has executed an agreement with the commission

31-9  which states that the business will, after the date on which a certificate of

31-10  eligibility for the abatement is issued pursuant to subsection 5, continue in

31-11  operation in this state for a period specified by the commission, which

31-12  must be at least 5 years, and will continue to meet the eligibility

31-13  requirements set forth in this subsection. The agreement must bind the

31-14  successors in interest of the business for the specified period.

31-15  (c) The business is registered pursuant to the laws of this state or the

31-16  applicant commits to obtain a valid business license and all other permits

31-17  required by the county, city or town in which the business operates.

31-18  (d) Except as otherwise provided in NRS 361.0687, if the business is a

31-19  new business in a county or city whose population is 50,000 or more, the

31-20  business meets at least two of the following requirements:

31-21     (1) The business will have 75 or more full-time employees on the

31-22  payroll of the business by the fourth quarter that it is in operation.

31-23     (2) Establishing the business will require the business to make a

31-24  capital investment of at least $1,000,000 in this state.

31-25     (3) The average hourly wage that will be paid by the new business to

31-26  its employees in this state is at least 100 percent of the average statewide

31-27  hourly wage as established by the employment security division of the

31-28  department of employment, training and rehabilitation on July 1 of each

31-29  fiscal year and:

31-30        (I) The business will provide a health insurance plan for all

31-31  employees that includes an option for health insurance coverage for

31-32  dependents of the employees; and

31-33        (II) The cost to the business for the benefits the business provides

31-34  to its employees in this state will meet the minimum requirements for

31-35  benefits established by the commission by regulation pursuant to

31-36  subsection 9.

31-37  (e) Except as otherwise provided in NRS 361.0687, if the business is a

31-38  new business in a county or city whose population is less than 50,000, the

31-39  business meets at least two of the following requirements:

31-40     (1) The business will have 25 or more full-time employees on the

31-41  payroll of the business by the fourth quarter that it is in operation.

31-42     (2) Establishing the business will require the business to make a

31-43  capital investment of at least $250,000 in this state.

31-44     (3) The average hourly wage that will be paid by the new business to

31-45  its employees in this state is at least 100 percent of the average statewide

31-46  hourly wage as established by the employment security division of the

31-47  department of employment, training and rehabilitation on July 1 of each

31-48  fiscal year and:

32-1         (I) The business will provide a health insurance plan for all

32-2  employees that includes an option for health insurance coverage for

32-3  dependents of the employees; and

32-4         (II) The cost to the business for the benefits the business provides

32-5  to its employees in this state will meet the minimum requirements for

32-6  benefits established by the commission by regulation pursuant to

32-7  subsection 9.

32-8    (f) If the business is an existing business, the business meets at least two

32-9  of the following requirements:

32-10     (1) The business will increase the number of employees on its payroll

32-11  by 10 percent more than it employed in the immediately preceding fiscal

32-12  year or by six employees, whichever is greater.

32-13     (2) The business will expand by making a capital investment in this

32-14  state in an amount equal to at least 20 percent of the value of the tangible

32-15  property possessed by the business in the immediately preceding fiscal

32-16  year. The determination of the value of the tangible property possessed by

32-17  the business in the immediately preceding fiscal year must be made by the:

32-18        (I) County assessor of the county in which the business will

32-19  expand, if the business is locally assessed; or

32-20        (II) Department, if the business is centrally assessed.

32-21     (3) The average hourly wage that will be paid by the existing

32-22  business to its new employees in this state is at least 100 percent of the

32-23  average statewide hourly wage as established by the employment security

32-24  division of the department of employment, training and rehabilitation on

32-25  July 1 of each fiscal year and:

32-26        (I) The business will provide a health insurance plan for all new

32-27  employees that includes an option for health insurance coverage for

32-28  dependents of the employees; and

32-29        (II) The cost to the business for the benefits the business provides

32-30  to its new employees in this state will meet the minimum requirements for

32-31  benefits established by the commission by regulation pursuant to

32-32  subsection 9.

32-33  3.  Notwithstanding the provisions of subsection 2, the commission on

32-34  economic development may:

32-35  (a) Approve an application for a partial abatement by a business that

32-36  does not meet the requirements set forth in paragraph (d), (e) or (f) of

32-37  subsection 2;

32-38  (b) Make the requirements set forth in paragraph (d), (e) or (f) of

32-39  subsection 2 more stringent; or

32-40  (c) Add additional requirements that a business must meet to qualify for

32-41  a partial abatement,

32-42  if the commission determines that such action is necessary.

32-43  4.  If a person submits an application to the commission on economic

32-44  development pursuant to subsection 1, the commission shall provide notice

32-45  to the governing body of the county and the city or town, if any, in which

32-46  the person intends to locate or expand a business. The notice required

32-47  pursuant to this subsection must set forth the date, time and location of the

32-48  hearing at which the commission will consider the application.

33-1    5.  If the commission on economic development approves an

33-2  application for a partial abatement, the commission shall immediately

33-3  forward a certificate of eligibility for the abatement to:

33-4    (a) The department;

33-5    (b) The Nevada tax commission; and

33-6    (c) If the partial abatement is from the property tax imposed pursuant to

33-7  chapter 361 of NRS, the county treasurer.

33-8    6.  An applicant for a partial abatement pursuant to this section or an

33-9  existing business whose partial abatement is in effect shall, upon the

33-10  request of the executive director of the commission on economic

33-11  development, furnish the executive director with copies of all

33-12  records necessary to verify that the applicant meets the requirements of

33-13  subsection 2.

33-14  7.  If a business whose partial abatement has been approved pursuant to

33-15  this section and is in effect ceases:

33-16  (a) To meet the requirements set forth in subsection 2; or

33-17  (b) Operation before the time specified in the agreement described in

33-18  paragraph (b) of subsection 2,

33-19  the business shall repay to the department or, if the partial abatement was

33-20  from the property tax imposed pursuant to chapter 361 of NRS, to the

33-21  county treasurer, the amount of the exemption that was allowed pursuant to

33-22  this section before the failure of the business to comply unless the Nevada

33-23  tax commission determines that the business has substantially complied

33-24  with the requirements of this section. Except as otherwise provided in NRS

33-25  360.232 and 360.320, the business shall, in addition to the amount of the

33-26  exemption required to be paid pursuant to this subsection, pay interest on

33-27  the amount due at the rate most recently established pursuant to NRS

33-28  99.040 for each month, or portion thereof, from the last day of the month

33-29  following the period for which the payment would have been made had the

33-30  partial abatement not been approved until the date of payment of the tax.

33-31  8.  A county treasurer:

33-32  (a) Shall deposit any money that he receives pursuant to subsection 7 in

33-33  one or more of the funds established by a local government of the county

33-34  pursuant to NRS [354.611,] 354.6113 or 354.6115; and

33-35  (b) May use the money deposited pursuant to paragraph (a) only for the

33-36  purposes authorized by NRS [354.611,] 354.6113 and 354.6115.

33-37  9.  The commission on economic development:

33-38  (a) Shall adopt regulations relating to:

33-39     (1) The minimum level of benefits that a business must provide to its

33-40  employees if the business is going to use benefits paid to employees as a

33-41  basis to qualify for a partial abatement; and

33-42     (2) The notice that must be provided pursuant to subsection 4.

33-43  (b) May adopt such other regulations as the commission on economic

33-44  development determines to be necessary to carry out the provisions of this

33-45  section.

33-46  10.  The Nevada tax commission:

33-47  (a) Shall adopt regulations regarding:

33-48     (1) The capital investment that a new business must make to meet the

33-49  requirement set forth in paragraph (d) or (e) of subsection 2; and

34-1      (2) Any security that a business is required to post to qualify for a

34-2  partial abatement pursuant to this section.

34-3    (b) May adopt such other regulations as the Nevada tax commission

34-4  determines to be necessary to carry out the provisions of this section.

34-5    11.  An applicant for an abatement who is aggrieved by a final decision

34-6  of the commission on economic development may petition for judicial

34-7  review in the manner provided in chapter 233B of NRS.

34-8    Sec. 47.  NRS 374A.020 is hereby amended to read as follows:

34-9    374A.020  1.  The collection of the tax imposed by NRS 374A.010

34-10  must be commenced on the first day of the first calendar quarter that begins

34-11  at least 30 days after the last condition in subsection 1 of NRS 374A.010 is

34-12  met.

34-13  2.  The tax must be administered, collected and distributed in the

34-14  manner set forth in chapter 374 of NRS.

34-15  3.  The board of trustees of the school district shall transfer the

34-16  proceeds of the tax imposed by NRS 374A.010 from the county school

34-17  district fund to the fund described in NRS [354.611 which has been]

34-18  354.6105 which must be established by the board of trustees. The money

34-19  deposited in the fund described in NRS [354.611] 354.6105 pursuant to

34-20  this subsection must be accounted for separately in that fund and must only

34-21  be expended by the board of trustees for the cost of the extraordinary

34-22  maintenance, extraordinary repair and extraordinary improvement of

34-23  school facilities within the county.

34-24  Sec. 48.  NRS 387.335 is hereby amended to read as follows:

34-25  387.335  1.  The board of trustees of a county school district may

34-26  issue its general obligations to raise money for the following purposes, and

34-27  no others:

34-28  (a) Construction, design or purchase of new buildings for schools,

34-29  including, but not limited to, teacherages, dormitories, dining halls,

34-30  gymnasiums and stadiums.

34-31  (b) Enlarging, remodeling , [or] repairing or replacing existing

34-32  buildings or grounds for schools, including, but not limited to, teacherages,

34-33  dormitories, dining halls, gymnasiums and stadiums.

34-34  (c) Acquiring sites for building schools, or additional real property for

34-35  necessary purposes related to schools, including, but not limited to,

34-36  playgrounds, athletic fields and sites for stadiums.

34-37  (d) Paying expenses relating to the acquisition of school facilities which

34-38  have been leased by a school district pursuant to NRS 393.080.

34-39  (e) Purchasing necessary furniture and equipment for schools [.] ,

34-40  including, without limitation, equipment used in educating pupils,

34-41  furniture for school buildings and equipment used for the transportation

34-42  of pupils. If money from the issuance of general obligations is used to

34-43  purchase furniture and equipment to replace existing furniture and

34-44  equipment, and that existing furniture and equipment subsequently is sold,

34-45  the proceeds from the sale must be applied toward the retirement of those

34-46  obligations. If equipment used for the transportation of pupils is

34-47  purchased pursuant to this paragraph, only the following equipment may

34-48  be purchased:

35-1      (1) Motor vehicles that use biodiesel, compressed natural gas or a

35-2  similar fuel formulated to reduce emissions from the amount of

35-3  emissions produced from traditional fuels such as gasoline and diesel

35-4  fuel; 

35-5      (2) Equipment to retrofit motor vehicles to use biodiesel,

35-6  compressed natural gas or a similar fuel formulated to reduce emissions

35-7  from the amount of emissions produced from traditional fuels such as

35-8  gasoline and diesel fuel; or

35-9      (3) Equipment for the transportation, storage or dispensing of

35-10  biodiesel, compressed natural gas or similar fuels formulated to reduce

35-11  emissions from the amount of emissions produced from traditional fuels

35-12  such as gasoline and diesel fuel.

35-13  2.  Any one or more of the purposes enumerated in subsection 1 may,

35-14  by order of the board of trustees entered in its minutes, be united and voted

35-15  upon as one single proposition.

35-16  3.  Any question submitted pursuant to this section and any question

35-17  submitted pursuant to NRS 387.3285 may, by order of the board of trustees

35-18  entered in its minutes, be united and voted upon as a single proposition.

35-19  4.  As used in this section, “biodiesel” has the meaning ascribed to it

35-20  in 42 U.S.C. § 13220.

35-21  Sec. 49.  NRS 387.516 is hereby amended to read as follows:

35-22  387.516  1.  The board of trustees of a school district may apply to the

35-23  state treasurer for a guarantee agreement whereby money in the state

35-24  permanent school fund is used to guarantee the payment of the debt service

35-25  on bonds that the school district will issue. The amount of the guarantee for

35-26  bonds of each school district outstanding at any one time must not exceed

35-27  $25,000,000.

35-28  2.  The application must be on a form prescribed by the state treasurer.

35-29  The state treasurer shall develop the form in consultation with the

35-30  executive director.

35-31  3.  Medium-term obligations entered into pursuant to the provisions of

35-32  NRS [350.085] 350.087 to 350.095, inclusive, are not eligible for

35-33  guarantee pursuant to NRS 387.513 to 387.528, inclusive.

35-34  4.  Upon receipt of an application for a guarantee agreement from a

35-35  school district, the state treasurer shall provide a copy of the application

35-36  and any supporting documentation to the executive director. As soon as

35-37  practicable after receipt of a copy of an application, the executive director

35-38  shall investigate the ability of the school district to make timely payments

35-39  on the debt service of the bonds for which the guarantee is requested. The

35-40  executive director shall submit a written report of his investigation to the

35-41  state board of finance indicating his opinion as to whether the school

35-42  district has the ability to make timely payments on the debt service of

35-43  the bonds.

35-44  Sec. 50.  NRS 387.526 is hereby amended to read as follows:

35-45  387.526  1.  If a school district fails to make a timely payment on the

35-46  debt service of bonds that are guaranteed pursuant to the provisions of NRS

35-47  387.513 to 387.528, inclusive, the state treasurer shall:

35-48  (a) Withdraw from the state permanent school fund the amount of

35-49  money due for the payment on the debt service;

36-1    (b) Make the payment on the debt service; and

36-2    (c) Report the payment to the executive director.

36-3    2.  The amount of money withdrawn pursuant to subsection 1 shall be

36-4  deemed a loan to the school district from the state permanent school fund.

36-5  The state treasurer shall determine the rate of interest on the loan, which

36-6  must not exceed 1 percent above the average rate of interest yielded on

36-7  investments in the state permanent school fund on the date that the loan is

36-8  made. A loan that is made to a school district pursuant to this subsection is

36-9  a special obligation of the school district and is payable only from the

36-10  sources specified in NRS 387.528.

36-11  3.  A school district that receives a loan pursuant to this section shall

36-12  not:

36-13  (a) Include the loan as a general obligation of the school district when

36-14  determining any limit on the debt of the school district.

36-15  (b) Unless the school district obtains the written approval of the

36-16  executive director, for the period during which the loan is unpaid, enter

36-17  into any medium-term obligations or installment-purchase agreement

36-18  pursuant to the provisions of NRS [350.085] 350.087 to 350.095, inclusive,

36-19  or otherwise borrow money.

36-20  4.  If the executive director receives notice that a loan has been made

36-21  pursuant to this section, he shall proceed pursuant to the provisions of NRS

36-22  354.685.

36-23  Sec. 51.  NRS 387.528 is hereby amended to read as follows:

36-24  387.528  1.  If a loan is made from the state permanent school fund

36-25  pursuant to NRS 387.526, the loan must be repaid[:

36-26  1.  By] by the school district from the money that is available to the

36-27  school district to pay the debt service on the bonds that are guaranteed

36-28  pursuant to the provisions of NRS 387.513 to 387.528, inclusive, unless

36-29  payment from that money would cause the school district to default on

36-30  other outstanding bonds , [or] medium-term obligations or installment-

36-31  purchase agreements entered into pursuant to the provisions of NRS

36-32  [350.085] 350.087 to 350.095, inclusive; and

36-33  2.  If the school district is not able to repay fully the loan, including any

36-34  accrued interest, in a timely manner pursuant to subsection 1 or by any

36-35  other lawful means, the state treasurer shall withhold the payments of

36-36  money that would otherwise be distributed to the school district from:

36-37  (a) The interest earned on the state permanent school fund that is

36-38  distributed among the various school districts;

36-39  (b) Distributions of the local school support tax, which must be

36-40  transferred by the state controller upon notification by the state treasurer;

36-41  and

36-42  (c) Distributions from the state distributive school account,

36-43  until the loan is repaid, including any accrued interest on the loan. The

36-44  state treasurer shall apply the money first to the interest on the loan and,

36-45  when the interest is paid in full, then to the balance. When the interest and

36-46  balance on the loan are repaid, the state treasurer shall resume making the

36-47  distributions that would otherwise be due to the school district.

 

 

37-1    Sec. 52.  NRS 496.155 is hereby amended to read as follows:

37-2    496.155  1.  Subject to the provisions of NRS 496.150 and subsections

37-3  2 and 3 of this section, for any undertaking authorized in NRS 496.150, the

37-4  governing body of a municipality, as it determines from time to time, may,

37-5  on the behalf and in the name of the municipality, borrow money,

37-6  otherwise become obligated, and evidence the obligations by the issuance

37-7  of bonds and other municipal securities, and in connection with the

37-8  undertaking or the municipal airport, including, without limitation, air

37-9  navigation facilities and other facilities appertaining to the airport, the

37-10  governing body may otherwise proceed as provided in the Local

37-11  Government Securities Law or as provided in subsections 4 and 5.

37-12  2.  General obligation bonds, whether or not their payment is

37-13  additionally secured by a pledge of net revenues, must be sold as provided

37-14  in the Local Government Securities Law.

37-15  3.  Revenue bonds may be sold at a public sale as provided in the Local

37-16  Government Securities Law or at a private sale.

37-17  4.  The governing body may by resolution acquire real property for the

37-18  expansion of airport or air navigation facilities by entering into contracts of

37-19  purchase, of a type and duration and on such terms as the governing body

37-20  determines, including, without limitation, contracts secured by a mortgage

37-21  or other security interest in the real property. The governing body may not

37-22  use any revenue derived from taxes ad valorem to pay for the acquisition,

37-23  and the obligation under the contract does not constitute a general

37-24  obligation of the municipality or apply against any debt limitation

37-25  pertaining to the municipality.

37-26  5.  The governing body may by resolution enter into a medium-term

37-27  obligation or installment-purchase agreement for any undertaking

37-28  authorized in NRS 496.150 and issue negotiable instruments without

37-29  regard to the requirements specified in:

37-30  (a) Paragraphs (a) and (b) of subsection 2 of NRS 350.091; and

37-31  (b) Subsections 1 and 2 of NRS 350.089, unless the financing is to be

37-32  repaid from the proceeds of a special tax exempt from limitations on taxes

37-33  ad valorem.

37-34  Sec. 53.  NRS 555.215 is hereby amended to read as follows:

37-35  555.215  1.  Upon the preparation and approval of a budget in the

37-36  manner required by the Local Government Budget Act, the board of county

37-37  commissioners of each county having lands situated in the district shall, by

37-38  resolution, levy an assessment upon all real property in the county which is

37-39  in the weed control district.

37-40  2.  Every assessment so levied is a lien against the property assessed.

37-41  3.  Amounts collected in counties other than the county having the

37-42  larger or largest proportion of the area of the district must be paid over to

37-43  the board of county commissioners of that county for the use of the district.

37-44  4.  The county commissioners of that county may obtain medium-term

37-45  obligations pursuant to NRS [350.085] 350.087 to 350.095, inclusive, of an

37-46  amount of money not to exceed the total amount of the assessment, to pay

37-47  the expenses of controlling the weeds in the weed control district. The

37-48  loans may be made only after the assessments are levied.

38-1    Sec. 54.  Section 12 of chapter 227, Statutes of Nevada 1975, as

38-2  amended by chapter 351, Statutes of Nevada 1997, at page 1280, is hereby

38-3  amended to read as follows:

38-4  Sec. 12. 1.  The provisions of the Local Government Budget

38-5  Act, NRS 354.470 to 354.626, inclusive, as now and hereafter

38-6  amended, apply to the Authority as a local government, and the

38-7  Authority shall, for purposes of that application, be deemed a district

38-8  other than a school district.

38-9  2.  The provisions of NRS [350.085] 350.087 to 350.095,

38-10  inclusive, apply to the Authority.

38-11  Sec. 55.  Section 20 of chapter 474, Statutes of Nevada 1977, as last

38-12  amended by chapter 203, Statutes of Nevada 1997, at page 567, is hereby

38-13  amended to read as follows:

38-14  Sec. 20.  The authority may enter into medium-term obligations

38-15  and installment-purchase obligations in compliance with NRS

38-16  350.087 to 350.095, inclusive.

38-17  Sec. 56.  Section 8A.140 of the charter of Carson City, being chapter

38-18  16, Statutes of Nevada 1997, at page 45, is hereby amended to read as

38-19  follows:

38-20  Sec. 8A.140 Types of securities; pledged revenue.

38-21  1.  For the acquisition, development, construction, equipping,

38-22  operation, maintenance, improvement and management of open

38-23  spaces, parks, trails and recreational facilities authorized by this

38-24  article, the board may issue:

38-25  (a) General obligation bonds;

38-26  (b) General obligation bonds for which payment is additionally

38-27  secured by a pledge of the proceeds of the tax imposed pursuant to

38-28  this article, and if so determined by the board, further secured by a

38-29  pledge of the gross or net revenues derived from the operation of the

38-30  recreational facilities, and any other project of the city which produces

38-31  income, or from any license fees or other excise taxes imposed for

38-32  revenue by the city, or otherwise, as may be legally made available

38-33  for payment of the bonds;

38-34  (c) Revenue bonds for which payment is solely secured by a

38-35  pledge of the proceeds of the tax imposed pursuant to this article, and

38-36  if so determined by the board, further secured by a pledge of the gross

38-37  or net revenues derived from the operation of the recreational

38-38  facilities, and any other project of the city which produces income, or

38-39  from any license fees or other excise taxes imposed for revenue by the

38-40  city, or otherwise, as may be legally made available for payment of

38-41  the bonds; and

38-42  (d) Medium-term obligations pursuant to NRS [350.085] 350.087

38-43  to 350.095, inclusive.

38-44  2.  Money pledged to the payment of bonds or other securities

38-45  pursuant to subsection 1 may be treated for the purposes of subsection

38-46  3 of NRS 350.020 as pledged revenue for the uses authorized by this

38-47  article.

 

39-1    Sec. 57.  Section 24 of chapter 37, Statutes of Nevada 1999, at page

39-2  85, is hereby amended to read as follows:

39-3  Sec. 24.  1.  To acquire, develop, construct, equip, improve and

39-4  manage libraries, airports, and facilities and services for senior

39-5  citizens located in the county, the board may issue:

39-6  (a) General obligation bonds;

39-7  (b) General obligation bonds for which payment is additionally

39-8  secured by a pledge of the proceeds of the tax imposed pursuant to

39-9  this act, and if so determined by the board, further secured by a pledge

39-10  of the gross or net revenues derived from the operation of libraries,

39-11  airports or facilities and services for senior facilities or any other

39-12  project of the county which produces income, or from any license fees

39-13  or other excise taxes imposed for revenue by the county, or otherwise,

39-14  as may be legally made available for payment of the bonds;

39-15  (c) Revenue bonds for which payment is solely secured by a

39-16  pledge of the proceeds of the tax imposed pursuant to this act, and if

39-17  so determined by the board, further secured by a pledge of the gross

39-18  or net revenues derived from the operation of the libraries, airports or

39-19  facilities for senior citizens or any other project of the county which

39-20  produces income, or from any license fees or other excise taxes

39-21  imposed for revenue by the county, or otherwise, as may be legally

39-22  made available for payment of the bonds; and

39-23  (d) Medium-term obligations pursuant to NRS [350.085] 350.087

39-24  to 350.095, inclusive.

39-25  2.  Money pledged to the payment of bonds or other securities

39-26  pursuant to subsection 1 may be treated for the purposes of subsection

39-27  3 of NRS 350.020 as pledged revenue for the uses authorized by this

39-28  act.

39-29  Sec. 58.  NRS 350.085, NRS 354.5235, 354.6107 and 354.611 are

39-30  hereby repealed.

39-31  Sec. 59.  1.  Except as otherwise provided in subsection 2, all money

39-32  in an extraordinary maintenance fund created pursuant to NRS 354.6107 or

39-33  354.611 must be transferred to an extraordinary maintenance fund

39-34  established pursuant to NRS 354.6105 and must be used for the purposes

39-35  set forth in that section.

39-36  2.  Money in an extraordinary maintenance fund created pursuant to

39-37  NRS 354.611 that was collected pursuant to NRS 374A.020 must be:

39-38  (a) Transferred to an extraordinary maintenance fund created pursuant

39-39  to NRS 354.6105;

39-40  (b) Accounted for separately in that fund; and

39-41  (c) Used only for the purposes and in the manner set forth in

39-42  NRS 374A.020.

39-43  Sec. 59.5.  A board of trustees of a county school district that issues

39-44  general obligations on or after the effective date of this act for purchases of

39-45  necessary furniture and equipment for schools pursuant to paragraph (e) of

39-46  subsection 1 of NRS 387.335, as amended by section 48 of this act, shall

39-47  submit to the director of the legislative counsel bureau for transmission to

39-48  the legislative commission on or before February 1, 2003, a report which

39-49  itemizes those purchases made through December 31, 2002.

40-1    Sec. 60.  1.  This section, sections 48 and 59.5 of this act become

40-2  effective upon passage and approval.

40-3    2.  Sections 1 to 22, inclusive, 24 to 36, inclusive, 38, 40 to 43,

40-4  inclusive, 46, 47 and 49 to 59, inclusive, of this act become effective on

40-5  July 1, 2001.

40-6    3.  Sections 37, 39, 44 and 45 of this act become effective at 12:01 a.m.

40-7  on July 1, 2001.

40-8    4.  Section 23 of this act becomes effective at 12:02 a.m. on July 1,

40-9  2001.

40-10  5.  Section 48 of this act expires by limitation on July 1, 2003.

 

40-11  LEADLINES OF REPEALED SECTIONS

 

40-12  350.085  Definitions.

40-13     354.5235  “Extraordinary maintenance, repair or improvement”

40-14   defined.

40-15     354.6107  Fund for extraordinary maintenance, repair or

40-16   improvement of capital projects in county whose population is less

40-17   than 100,000.

40-18  354.611  Fund for extraordinary maintenance, repair or

40-19   improvement of local governmental facilities.

 

40-20  H