S.B. 559
Senate Bill No. 559–Committee on Government
Affairs
(On Behalf of Nevada Association of Counties)
March 26, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes to procedures for
borrowing by local governments. (BDR 30‑417)
FISCAL NOTE: Effect on Local Government: No.
~
EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along
left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to municipal obligations; 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; 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 8,
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:
1-14 1. Installment-purchase
agreements described in subsection 2 of
1-15 section 4 of this
act;
1-16 2. Special
obligations; and
2-1 3. Obligations
with a term of less than 1 year that are payable in full
2-2 from money
appropriated for the same fiscal year in which the
2-3 obligations are
incurred.
2-4 Sec. 4. “Installment-purchase agreement” means
an agreement for
2-5 the purchase of
real or personal property by installment or lease or
2-6 another
transaction that is described in NRS 350.800 which:
2-7 1. Is
required to be counted against any limit upon the debt of a local
2-8 government
pursuant to subsection 1 of NRS 350.800; or
2-9 2. Is
not required to be counted against any limit upon the debt of a
2-10 local government
and:
2-11 (a) Exceeds $100,000 for a local government in
a county whose
2-12 population is
100,000 or more; or
2-13 (b) Exceeds $50,000 for a local government in
a county whose
2-14 population is
less than 100,000.
2-15 The term
“installment-purchase agreement” does not include an
2-16 obligation to pay
rent pursuant to a lease which contains no option or
2-17 right to purchase
or which contains only an option or right to purchase
2-18 the property
without any credit toward the purchase price for lease or
2-19 rental payments.
2-20 Sec. 5. “Local government” has the meaning
ascribed to it in NRS
2-21 354.474.
2-22 Sec. 6. “Medium-term obligation” means an
obligation to repay
2-23 borrowed money
evidenced by a note or bond which is authorized to be
2-24 issued pursuant
to NRS 350.087 to 350.095, inclusive, and which has a
2-25 term of 10 years
or less. The term does not include an obligation which
2-26 has a term of
less than 1 year and which is payable in full from money
2-27 appropriated for
the same fiscal year that the obligation is incurred.
2-28 Sec. 7. “Special obligation” means a municipal
security issued
2-29 pursuant to NRS
350.582.
2-30 Sec. 8. For the purposes of this chapter, the
term of an installment-
2-31 purchase
agreement must be determined as the period from the date the
2-32 agreement is
entered into by a local government to the date that the
2-33 purchase price
will be paid in full and most include the term of the
2-34 original
agreement and the term of any renewal, including, without
2-35 limitation, an
optional renewal, of the agreement.
2-36 Sec. 9. NRS
350.001 is hereby amended to read as follows:
2-37 350.001 As used in NRS 350.001 to 350.006, inclusive,
unless the
2-38 context otherwise requires:
2-39 1. “Commission” means a debt management
commission created
2-40 pursuant to NRS 350.002.
2-41 2. [“General
obligation debt” means debt which is legally payable
2-42 from general
revenues, as a primary or secondary source of repayment, and
2-43 is backed by the
full faith and credit of a governmental entity. The term
2-44 includes debt
represented by local government securities issued pursuant to
2-45 this chapter
except debt created for medium-term obligations pursuant to
2-46 NRS 350.085 to
350.095, inclusive.
2-47 3.] “Special elective tax” means a tax imposed pursuant to NRS
2-48 354.59817, 354.5982, 387.197, 387.3285 or 387.3287.
3-1 Sec. 10. NRS
350.0035 is hereby amended to read as follows:
3-2 350.0035 1. Except
as otherwise provided in this section, on or
3-3 before July 1 of each year, the governing body of a
municipality which
3-4 proposes to issue or has outstanding any general
obligation debt, other
3-5 general obligations or special obligations, or which
levies or proposes to
3-6 levy any special elective tax, shall submit to the
department of taxation and
3-7 the commission:
3-8 (a) A
complete statement of current and contemplated general
3-9 obligation debt and special elective taxes, and a
report of current and
3-10 contemplated debt and special assessments and
retirement schedules, in the
3-11 detail and form established by the committee on
local government finance.
3-12 (b) A written
statement of the debt management policy of the
3-13 municipality, which must include, without
limitation:
3-14 (1) A
discussion of its ability to afford existing general obligation
3-15 debt, authorized future general obligation debt and
proposed future general
3-16 obligation debt;
3-17 (2) A
discussion of its capacity to incur authorized and proposed
3-18 future general obligation debt without exceeding the
applicable debt limit;
3-19 (3) A
discussion of its general obligation debt that is payable from ad
3-20 valorem taxes per capita as compared with such debt
of other
3-21 municipalities in this state;
3-22 (4) A
discussion of its general obligation debt that is payable from ad
3-23 valorem taxes as a percentage of assessed valuation
of all taxable property
3-24 within the boundaries of the municipality;
3-25 (5) Policy
regarding the manner in which the municipality expects to
3-26 sell its debt;
3-27 (6) A
discussion of its sources of money projected to be available to
3-28 pay existing general obligation debt, authorized
future general obligation
3-29 debt and proposed future general obligation debt;
and
3-30 (7) A
discussion of its operational costs and revenue sources, for the
3-31 ensuing 5 fiscal years, associated with each project
included in its plan for
3-32 capital improvement submitted pursuant to paragraph
(c), if those costs and
3-33 revenues are expected to affect the tax rate.
3-34 (c) Either:
3-35 (1) Its plan for capital improvement for the
ensuing [3] 5 fiscal
years,
3-36 which must include any contemplated issuance of
general obligation debt
3-37 during this period and the sources of money
projected to be available to
3-38 pay the debt [.] ; or
3-39 (2) A statement indicating that no changes
are contemplated in its
3-40 plan for capital
improvement for the ensuing 5 fiscal years.
3-41 (d) A
statement containing the name, title, mailing address and
3-42 telephone number of the chief financial officer of
the municipality.
3-43 2. The governing body of a municipality may
combine a statement or
3-44 plan required by subsection 1 with the corresponding
statement or plan of
3-45 another municipality if both municipalities have the
same governing body
3-46 or the governing bodies of both municipalities agree
to such a combination.
3-47 3. The governing body of each municipality shall
update all statements
3-48 and plans required by subsection 1 not less
frequently than annually.
4-1 4. The provisions of this section do not apply
to the Airport Authority
4-2 of Washoe County so long as the authority does not
have any general
4-3 obligation bonds outstanding and does not issue or
propose to issue any
4-4 such bonds. At least 30 days before each annual
meeting of the
4-5 commission, the authority shall submit to the
department of taxation a
4-6 written statement regarding whether the authority is
planning to propose to
4-7 issue any general obligation bonds before the next
following annual
4-8 meeting of the commission.
4-9 Sec. 11. NRS
350.004 is hereby amended to read as follows:
4-10 350.004 1. Before
any proposal to incur a general obligation debt or
4-11 levy a special elective tax may be submitted to the
electors of a
4-12 municipality, before any issuance of general
obligation bonds pursuant to
4-13 subsection 4 of NRS 350.020 , before entering into an installment-
4-14 purchase
agreement with a term of more than 10 years or before any
4-15 other formal action may be taken preliminary to the
incurrence of any
4-16 general obligation debt, the proposed incurrence or
levy must receive the
4-17 favorable vote of two-thirds of the members of the
commission of each
4-18 county in which the municipality is situated.
4-19 2. Before the board of trustees of a district
organized or reorganized
4-20 pursuant to chapter 318 of NRS whose population
within its boundaries is
4-21 less than 5,000 [,] incurs a medium-term obligation or otherwise borrows
4-22 money or issues securities to evidence such
borrowing, other than
4-23 securities representing a general obligation debt [,] or installment-
4-24 purchase
agreements with a term of 10 years or less, the proposed
4-25 borrowing or issuing of securities must receive the
favorable vote of a
4-26 majority of the members of the commission of each
county in which the
4-27 district is situated.
4-28 3. When any municipality other than a general
improvement district
4-29 whose population within its boundaries is less than
5,000 [,]
issues any
4-30 special obligations, it shall so notify in its
annual report the commission of
4-31 each county in which any of its territory is
situated.
4-32 4. The commission shall not approve any proposal
submitted to it
4-33 pursuant to this section by a municipality:
4-34 (a) Which, if
the proposal is for the financing of a capital improvement,
4-35 is not included in its plan for capital improvement
submitted pursuant to
4-36 NRS 350.0035, if such a plan is required to be
submitted; or
4-37 (b) If, based
upon:
4-38 (1) Estimates
of the amount of tax revenue from ad valorem taxes
4-39 needed for the special elective tax, or to repay the
general obligation debt,
4-40 and the dates that revenue will be needed, as
provided by the municipality;
4-41 (2) Estimates
of the assessed valuation of the municipality for each of
4-42 the years in which tax revenue is needed, as
provided by the municipality;
4-43 (3) The
amount of any other required levies of ad valorem taxes, as
4-44 shown on the most recently filed final budgets of
each entity authorized to
4-45 levy ad valorem taxes on any property within the
municipality submitting
4-46 the proposal; and
4-47 (4) Any
other factor the municipality discloses to the commission,
4-48 the proposal would result in a combined property tax
rate in any of the
4-49 overlapping entities within the county which exceeds
the limit provided in
5-1 NRS 361.453, unless the proposal also includes an
agreement approved by
5-2 the governing bodies of all affected municipalities
within the area as to
5-3 how the combined property tax rates will be brought
into compliance with
5-4 the statutory limitation [.] or unless the commission adopts a plan that is
5-5 approved by the
executive director of the department of taxation
5-6 pursuant to which
the combined property tax rate will be in compliance
5-7 with the
statutory limitation.
5-8 5. If general obligation debt is to be incurred
more than 36 months
5-9 after the approval of that debt by the commission,
the governing body of
5-10 the municipality shall obtain the additional approval of the
[executive
5-11 director of the
department of taxation] commission before incurring the
5-12 general obligation debt. The [executive director]
commission shall only
5-13 approve [the] a proposal that is submitted pursuant to this subsection if,
5-14 based on the information set forth in paragraph (b)
of subsection 4 that is
5-15 accurate as of the date on which the governing body
submits , pursuant to
5-16 this subsection, its request for approval to
the [executive director:]
5-17 commission:
5-18 (a) Incurrence
of the general obligation debt will not result in a
5-19 combined property tax rate in any of the overlapping
entities within the
5-20 county which exceeds the limit provided in NRS
361.453; [or]
5-21 (b) The
proposal includes an agreement approved by the governing
5-22 bodies of all affected municipalities within the
area as to how the combined
5-23 tax rates will be brought into compliance with the
statutory limitation [.] ;
5-24 or
5-25 (c) The commission adopts a plan that is
approved by the executive
5-26 director of the
department of taxation pursuant to which the combined
5-27 property tax rate
will be in compliance with the statutory
limitation.
5-28 The approval of the [executive director]
commission pursuant to this
5-29 subsection is effective for 18 months.
The governing body of the
5-30 municipality may renew that approval for successive
periods of 18 months
5-31 by filing an application for renewal with the [executive director.]
5-32 commission. Such an application must be
accompanied by the information
5-33 set forth in paragraph (b) of subsection 4 that is
accurate as of the date the
5-34 governing body files the application for renewal.
5-35 [6. If the executive
director does not approve a proposal submitted to
5-36 him pursuant to
subsection 5, the governing body of the municipality may
5-37 appeal his
decision to the Nevada tax commission.]
5-38 Sec. 12. NRS
350.005 is hereby amended to read as follows:
5-39 350.005 1. The
governing body of the municipality proposing to
5-40 incur general obligation debt , to enter an installment-purchase agreement
5-41 with a term of
more than 10 years or to levy a
special elective tax and the
5-42 board of trustees of a general improvement district
whose population
5-43 within its boundaries is less than 5,000 [,]
who proposes to issue a
5-44 medium-term
obligation or otherwise borrow money and issue any
5-45 securities other than securities representing a
general obligation debt [,] or
5-46 installment-purchase
agreements with terms of 10 years or less, shall
5-47 notify the secretary of each appropriate commission,
and shall submit a
5-48 statement of its proposal in sufficient number of
copies for each member of
6-1 the commission. The secretary, with the approval of
the chairman, shall,
6-2 within 10 days, give notice of a meeting, in the
manner required by chapter
6-3 241 of NRS, to be held not more than 20 days
thereafter. He shall provide a
6-4 copy of the proposal to each member with the notice
of the meeting, and
6-5 mail notice of the meeting to the chief financial
officer of each
6-6 municipality in the county which has complied with
subsection 1 of NRS
6-7 350.0035 within the past year.
6-8 2. The commission may grant a conditional or
provisional approval of
6-9 such proposal. Such conditions or provisions are
limited to [the] :
6-10 (a) The scheduling of:
6-11 [(a)] (1) The issuance and
retirement of securities, if the proposal is to
6-12 incur general obligation debt; or
6-13 [(b)] (2) The imposition of the
tax, if the proposal is to levy a special
6-14 elective tax [.] ; and
6-15 (b) If the proposal would result in a combined
property tax rate in any
6-16 of the overlapping
entities within the county which exceeds 90 percent of
6-17 the limit
provided in NRS 361.453, a condition requiring a reduction in
6-18 the amount of the
proposed debt, installment-purchase agreement or
6-19 special elective
tax.
6-20 3. The commission may adjourn a meeting called
to consider a
6-21 particular proposal no more than once, for no more
than 10 days.
6-22 Notification of the approval or disapproval of its
proposal must be sent to
6-23 the governing body within 3 days after the meeting.
6-24 Sec. 13. NRS
350.0051 is hereby amended to read as follows:
6-25 350.0051 1. In
determining whether to approve or disapprove a
6-26 proposal to incur debt , to enter an installment-purchase agreement with
6-27 a term of more
than 10 years or to levy a special elective tax, the
6-28 commission shall not, except as otherwise provided
in paragraph (d),
6-29 initiate a determination as to whether the proposed
debt , installment-
6-30 purchase
agreement or
special elective tax is sought to accomplish a
6-31 public purpose or to satisfy a public need. The
commission shall consider,
6-32 but is not limited to, the following criteria:
6-33 (a) If the
proposal is to incur debt, the amount of debt outstanding on
6-34 the part of the municipality proposing to incur the
debt.
6-35 (b) The
effect of the tax levy required for debt service on the proposed
6-36 debt [,] or to repay an installment-purchase
agreement with a term of
6-37 more than 10
years, or
of the proposed levy of a special elective tax, upon
6-38 the ability of the municipality proposing to incur
the general obligation
6-39 debt ,
enter the installment-purchase agreement or levy the special
6-40 elective tax and of other municipalities to raise
revenue for operating
6-41 purposes.
6-42 (c) The
anticipated need for other incurrences of debt , installment-
6-43 purchase
agreements or
levies of special elective taxes by the municipality
6-44 proposing to incur the debt , enter the installment-purchase agreement or
6-45 levy the special elective tax and other
municipalities whose tax-levying
6-46 powers overlap, as shown by the county or regional
master plan, if any, and
6-47 by other available information.
6-48 (d) If the
information set forth in paragraph (b) of subsection 4 of NRS
6-49 350.004 indicates that the proposal would result in
a combined property tax
7-1 rate in any of the overlapping entities within the
county which exceeds 90
7-2 percent of the limit provided in NRS 361.453:
7-3 (1) The
public need to be served by the proceeds from the proposed
7-4 debt or tax levy; and
7-5 (2) A
comparison of that public need and other public needs that
7-6 appear on the statements of current and contemplated
general obligation
7-7 debt and special elective taxes submitted pursuant
to paragraph (a) of
7-8 subsection 1 of NRS 350.0035 that may affect the
combined property tax
7-9 rate in any of the overlapping entities within the
county.
7-10 2. If the commission approves the proposal, the
amount received from
7-11 the sale of the general obligation debt or from the
special elective tax may
7-12 be expended only for the purposes described in the
proposal.
7-13 3. The
commission may make reasonable requests from a
7-14 municipality for
information relating to the criteria described in
7-15 paragraphs (a) to
(d), inclusive, of subsection 1. A municipality shall use
7-16 its best efforts
to comply with information requests from the commission
7-17 in a timely
manner.
7-18 Sec. 14. NRS
350.006 is hereby amended to read as follows:
7-19 350.006 The provisions of NRS 350.001 to 350.0052,
inclusive, do not
7-20 apply to:
7-21 1. Any general obligation debt incurred or
special elective tax levied
7-22 before July 1, 1995;
7-23 2. Any general obligation debt or special
elective tax approved at an
7-24 election held before July 1, 1995, whether or not
the debt is incurred or tax
7-25 is levied before that date;
7-26 3. Any general obligation debt authorized to be
incurred, or special
7-27
elective tax authorized to be levied, by a
special act adopted and approved
7-28 before July 1, 1995; [and]
7-29 4. Any debt incurred for the purpose of
refunding any outstanding
7-30 general obligation debt [.] ; and
7-31 5. Any
medium-term obligation, except a medium-term obligation
7-32 issued after July
1, 2001, by a general improvement district whose
7-33 population within
its boundaries is less than 5,000.
7-34 Sec. 15. NRS
350.020 is hereby amended to read as follows:
7-35 350.020 1. Except
as otherwise provided by subsections 3 and 4, if a
7-36 municipality proposes to issue or incur general
obligations, the proposal
7-37 must be submitted to the electors of the
municipality at a special election
7-38 called for that purpose or the next general
municipal election or general
7-39 state election.
7-40 2. Such a special election may be held:
7-41 (a) At any
time, including, without limitation, on the date of a primary
7-42 municipal election or a primary state election, if
the governing body of the
7-43 municipality determines, by a unanimous vote, that
an emergency exists; or
7-44 (b) On the
first Tuesday after the first Monday in June of an odd-
7-45 numbered year.
7-46 The determination made by the governing body is
conclusive unless it is
7-47 shown that the governing body acted with fraud or a
gross abuse of
7-48 discretion. An action to challenge the determination
made by the governing
7-49 body must be commenced within 15 days after the
governing body’s
8-1 determination is final. As used in this subsection,
“emergency” means any
8-2 occurrence or combination of occurrences which
requires immediate action
8-3 by the governing body of the municipality to prevent
or mitigate a
8-4 substantial financial loss to the municipality or to
enable the governing
8-5 body to provide an essential service to the
residents of the municipality.
8-6 3. If payment of a general obligation of the
municipality is additionally
8-7 secured by a pledge of gross or net revenue of a
project to be financed by
8-8 its issue, and the governing body determines, by an
affirmative vote of
8-9 two-thirds of the members elected to the governing
body, that the pledged
8-10 revenue will at least equal the amount required in
each year for the
8-11 payment of interest and principal, without regard to
any option reserved by
8-12 the municipality for early redemption, the
municipality may, after a public
8-13 hearing, incur this general obligation without an
election unless, within 60
8-14 days after publication of a resolution of intent to
issue the bonds, a petition
8-15 is presented to the governing body signed by not
less than 5 percent of the
8-16 registered voters of the municipality who together
with any corporate
8-17 petitioners own not less than 2 percent in assessed
value of the taxable
8-18 property of the municipality. Any member elected to
the governing body
8-19 whose authority to vote is limited by charter,
statute or otherwise may vote
8-20 on the determination required to be made by the
governing body pursuant
8-21 to this subsection. The determination by the
governing body becomes
8-22 conclusive on the last day for filing the petition.
For the purpose of this
8-23 subsection, the number of registered voters must be
determined as of the
8-24 close of registration for the last preceding general
election and assessed
8-25 values must be determined from the next preceding
final assessment roll.
8-26 An authorized corporate officer may sign such a
petition whether or not he
8-27 is a registered voter. The resolution of intent need
not be published in full,
8-28 but the publication must include the amount of the
obligation and the
8-29 purpose for which it is to be incurred. Notice of
the public hearing must be
8-30 published at least 10 days before the day of the
hearing. The publications
8-31 must be made once in a newspaper of general
circulation in the
8-32 municipality. When published, the notice of the
public hearing must be at
8-33 least as large as 5 inches high by 4 inches wide.
8-34 4. The board of trustees of a school district
may issue general
8-35 obligation bonds which are not expected to result in
an increase in the
8-36 existing property tax levy for the payment of bonds
of the school district
8-37 without holding an election for each issuance of the
bonds if the qualified
8-38 electors approve a question submitted by the board
of trustees that
8-39 authorizes issuance of bonds for a period of 10
years after the date of
8-40 approval by the voters. If the question is approved,
the board of trustees of
8-41 the school district may issue the bonds for a period
of 10 years after the
8-42 date of approval by the voters, after obtaining the
approval of the debt
8-43 management commission in the county in which the
school district is
8-44 located and, in a county whose population is 100,000
or more, the approval
8-45 of the oversight panel for school facilities
established pursuant to NRS
8-46 393.092 in that county, if the board of trustees of
the school district finds
8-47 that the existing tax for debt service will at least
equal the amount required
8-48 to pay the principal and interest on the outstanding
general obligations of
8-49 the school district and the general obligations
proposed to be issued. The
9-1 finding made by the board of trustees is conclusive
in the absence of fraud
9-2 or gross abuse of discretion. As used in this
subsection, “general
9-3 obligations” does not include medium-term
obligations issued pursuant to
9-4 NRS [350.085] 350.087 to 350.095, inclusive.
9-5 5. At the time of issuance of bonds authorized
pursuant to subsection
9-6 4, the board of trustees shall establish a reserve
account in its debt service
9-7 fund for payment of the outstanding bonds of the
school district. The
9-8 reserve account must be established and maintained
in an amount at least
9-9 equal to the lesser of the amount of principal and
interest payments due on
9-10 all of the outstanding bonds of the school district
in the next fiscal year or
9-11 10 percent of the outstanding principal amount of
the outstanding bonds of
9-12 the school district. If the amount in the reserve
account falls below the
9-13 amount required by this subsection:
9-14 (a) The board
of trustees shall not issue additional bonds pursuant to
9-15 subsection 4 until the reserve account is restored
to the level required by
9-16 this subsection; and
9-17 (b) The board
of trustees shall apply all of the taxes levied by the school
9-18 district for payment of bonds of the school district
that are not needed for
9-19 payment of the principal and interest on bonds of
the school district in the
9-20 current fiscal year to restore the reserve account
to the level required
9-21 pursuant to this subsection.
9-22 6. A municipality may issue special or
medium-term obligations
9-23 without an election.
9-24 Sec. 16. NRS
350.087 is hereby amended to read as follows:
9-25 350.087 1. If
the public interest requires a medium-term obligation
9-26 [,] or
installment-purchase agreement, the governing body of any local
9-27 government, by a resolution adopted by two-thirds of
its members, may
9-28 authorize a medium-term obligation [.] or installment-purchase
9-29 agreement. For the purposes of the
issuance of a medium-term obligation
9-30 pursuant to NRS 280.266, a metropolitan police
committee on fiscal affairs
9-31 shall be deemed the governing body of a local
government.
9-32 2. The resolution must contain:
9-33 (a) A finding
by the governing body that the public interest requires the
9-34 medium-term obligation [;] or installment-purchase agreement;
9-35 (b) A
statement of the facts upon which the finding required pursuant to
9-36 paragraph (a) is based; [and]
9-37 (c) A
statement that identifies:
9-38 (1) Each
source of revenue of the local government that is anticipated
9-39 to be used to repay the medium-term obligation [;] or installment-
9-40 purchase agreement;
and
9-41 (2) The
dollar amount that is anticipated to be available to repay the
9-42 medium-term obligation or installment-purchase agreement from each
9-43 such source [.] ; and
9-44 (d) If the resolution is for an
installment-purchase agreement with a
9-45 term of more than
10 years:
9-46 (1) A statement comparing the cost of
installment-purchasing
9-47 financing with
other available methods of financing, including, without
9-48 limitation,
financing with general obligation bonds or revenue bonds;
9-49 and
10-1 (2) If such statement concludes that
installment-purchase financing
10-2 is more expensive
than other available methods of financing, a statement
10-3 explaining the
reasons for choosing installment-purchase financing
10-4 instead of a less
expensive alternative.
10-5 3. Except as otherwise provided in subsection 4,
before the adoption of
10-6 any such resolution, the governing body shall
publish notice of its intention
10-7 to act thereon in a newspaper of general circulation
for at least one
10-8 publication. No vote may be taken upon the
resolution until 10 days after
10-9 the publication of the notice. The cost of
publication of the notice required
10-10 of an entity is a proper charge against its general
fund.
10-11 4. If such a resolution will be adopted by a
metropolitan police
10-12 committee on fiscal affairs, the sheriff of the
county in which the
10-13 metropolitan police department is located shall
publish the notice required
10-14 pursuant to subsection 3.
10-15 Sec. 17. NRS
350.089 is hereby amended to read as follows:
10-16 350.089 Except as otherwise provided in NRS 280.266
and 496.155:
10-17 1. Upon the adoption by a local government of a resolution for a
10-18 medium-term obligation [,] or installment-purchase agreement, as
10-19 provided in NRS 350.087, [by a local government,]
a certified copy thereof
10-20 must be forwarded to the executive director of the
department of taxation.
10-21 As soon as is practicable, the executive director of
the department of
10-22 taxation shall, after consideration of the tax
structure of the local
10-23 government concerned, the probable ability of the
local government to
10-24 repay the requested medium-term obligation or installment-purchase
10-25 agreement and the compliance of the
local government with the applicable
10-26 provisions of law, including, without limitation,
the provisions of chapter
10-27 354 of NRS, approve or disapprove the resolution in
writing to the
10-28 governing board. No such resolution is effective
until approved by the
10-29 executive director of the department of taxation.
The written approval of
10-30 the executive director of the department of taxation
must be recorded in the
10-31 minutes of the governing board.
10-32 2. If the executive director of the department
of taxation does not
10-33 approve the resolution for the medium-term
obligation [,] or installment-
10-34 purchase
agreement, the
governing board of the local government may
10-35 appeal the executive director’s decision to the
Nevada tax commission.
10-36 Sec. 18. NRS
350.091 is hereby amended to read as follows:
10-37 350.091 1. Whenever
the governing body of any local government is
10-38 authorized to enter into a medium-term obligation or installment-purchase
10-39 agreement as provided in NRS 280.266
or 350.089 [, the governing body:
10-40 (a) If the medium-term obligation] that
is intended to finance a capital
10-41 project, the governing body shall update its plan for capital
improvement
10-42 in the same manner as is required for general
obligation debt pursuant to
10-43 NRS 350.0035.
10-44 [(b) May]
10-45 2. Whenever
the governing body of any local government is
10-46 authorized to
enter into a medium-term obligation as provided in NRS
10-47 350.089, the
governing body may issue, as evidence thereof, negotiable
10-48 notes [, leases, other evidence of a transaction described in NRS
350.800,
10-49 or short-time] or
medium-term negotiable bonds [.
11-1 2. Except] that,
except as otherwise provided in subsection 5 of NRS
11-2 496.155
: [, the negotiable notes or
bonds:]
11-3 (a) Must
mature not later than 10 years after the date of issuance ; [.]
11-4 (b) Must bear
interest at a rate or rates which do not exceed by more
11-5 than 3 percent the Index of Twenty Bonds which was
most recently
11-6 published before the bids are received or a
negotiated offer is accepted [.] ;
11-7 and
11-8 (c) May, at
the option of the local government, contain a provision
11-9 which allows redemption of the notes or bonds before
maturity, upon such
11-10 terms as the governing body determines.
11-11 3. Whenever
the governing body of any local government is
11-12 authorized to
enter into an installment-purchase agreement as provided
11-13 in NRS 280.266 or
350.089, the governing body may issue, as evidence
11-14 thereof, an
installment-purchase agreement, lease or other evidence of a
11-15 transaction
described in NRS 350.800. An installment-purchase
11-16 agreement, lease
or other evidence of a transaction described in NRS
11-17 350.800 issued
pursuant to this subsection:
11-18 (a) Must have a term that is 30 years or less;
11-19 (b) Must bear interest at a rate or rates that
do not exceed by more
11-20 than 3 percent
the Index of Revenue Bonds which was most recently
11-21 published before
the local government enters into the installment-
11-22 purchase
agreement; and
11-23 (c) May, at the option of the local government,
contain a provision
11-24 that allows
prepayment of the purchase price upon such terms as are
11-25 provided in the
agreement.
11-26 4. If the [maximum term of the financing is more than 5 years, the]
11-27 term of
the medium-term obligation or installment-purchase agreement
11-28 is more than 5
years, the weighted average term of the medium-term
11-29 obligation or
installment-purchase agreement may not exceed the
11-30 estimated weighted average useful life of the [asset to be purchased with
11-31 the proceeds from
the financing.] assets being financed with the medium-
11-32 term obligation
or installment-purchase agreement.
11-33 5. For
the purposes of subsection 4, the Nevada tax commission may
11-34 adopt regulations
that provide guidelines for the useful life of various
11-35 types of assets
and for calculation of the weighted average useful life of
11-36 assets.
11-37 Sec. 19. NRS
350.093 is hereby amended to read as follows:
11-38 350.093 1. After
a medium-term obligation has been authorized as
11-39 provided in NRS 350.089 and if, in the judgment of
the governing board of
11-40 the local government, the fiscal affairs of the
local government can be
11-41 carried on without impairment and there is
sufficient money in the general
11-42 fund or a surplus in any other fund, with the
exception of the bond interest
11-43 and redemption fund, of the local government, the
governing board may
11-44 transfer from the general fund or from the surplus
appearing in any fund,
11-45 with the exception of the bond interest and
redemption fund, money
11-46 sufficient to meet the purpose of the medium-term
obligation.
11-47 2. When such a transfer is made, the governing
board of the local
11-48 government shall comply with the provisions of NRS
350.095, and when
12-1 the special tax is thereafter collected, the amount
so collected must be
12-2 placed immediately in the fund from which the loan
was made.
12-3 3. In cases where the fund from which the loan
was made, at the time
12-4 of the transfer of funds therefrom, contains a
surplus that in the judgment
12-5 of the executive director of the department of
taxation is or will not be
12-6 needed for the purposes of the fund in the ordinary
course of events, the
12-7 special tax need not be levied, collected and placed
in the fund from which
12-8 the loan was made, but the transfer shall be deemed
refunded for all
12-9 purposes of NRS [350.085]
350.087 to 350.095,
inclusive.
12-10 Sec. 20. NRS
350.115 is hereby amended to read as follows:
12-11 350.115 “Bond” means any evidence of [indebtedness of]
borrowing
12-12 by a municipality that is
issued pursuant to the provisions of this chapter or
12-13 chapter 244, 244A, 268, 269, 271, 318 [, 354]
or 387 of NRS, whether
12-14 general or special obligations, including, without
limitation, bonds, notes,
12-15 debentures, warrants and certificates.
12-16 Sec. 21. NRS
350.800 is hereby amended to read as follows:
12-17 350.800 1. A
transaction whereby a municipality acquires real or
12-18 personal property and another person acquires or
retains a security interest
12-19 in that or other property creates a general
obligation of the municipality
12-20 which must be counted against any limit upon its
debt unless:
12-21 (a) The
obligation by its terms is extinguished by failure of the
12-22 governing body to appropriate money for the ensuing
fiscal year for
12-23 payment of the amounts then due; or
12-24 (b) The budget
of the municipality for the fiscal year in which the
12-25 transaction occurs includes a provision for the
discharge of the obligation
12-26 in full.
12-27 2. Any member of the governing body may vote
upon such a
12-28 transaction whether or not the obligation incurred
is expected to extend
12-29 beyond his term of office, without any special
notice or other formality.
12-30 3. Any such transaction is subject to the
requirements of this chapter
12-31 for an election if it must be counted against a debt
limit, but , except as
12-32 otherwise
provided in NRS 350.001 to 350.006, inclusive, and 350.087 to
12-33 350.095,
inclusive, is
not subject to any other requirement of this chapter.
12-34 4. In addition to or as a substitute for granting
a security interest in the
12-35 property being acquired in a transaction described
in subsection 1, the
12-36 municipality may grant a security interest in other
property if the governing
12-37 body finds that:
12-38 (a) Granting
the security interest in the other property will result in
12-39 lower financing costs to the municipality; and
12-40 (b) The value
of all property in which a security interest is granted does
12-41 not, at the time the security interest is granted,
exceed an amount equal
to one and one-half times the value of the property being
acquired.
12-42 The finding and determination of values by the
governing body are
12-43 conclusive in the absence of fraud or gross abuse of
discretion.
12-44 Sec. 22. NRS
104.9109 is hereby amended to read as follows:
12-45 104.9109 1. Except
as otherwise provided in subsections 3 and 4,
12-46 this article applies to:
13-1 (a) A
transaction, regardless of its form, that creates a security interest
13-2 in personal property or fixtures by contract;
13-3 (b) An
agricultural lien;
13-4 (c) A sale of
accounts, chattel paper, payment intangibles or promissory
13-5 notes;
13-6 (d) A
consignment;
13-7 (e) A
security interest arising under NRS 104.2401, 104.2505,
13-8 subsection 3 of NRS 104.2711 [,] or subsection 5 of NRS
104A.2508, as
13-9 provided in NRS 104.9110; and
13-10 (f) A security
interest arising under NRS 104.4210 or 104.5118.
13-11 2. The application of this article to a security
interest in a secured
13-12 obligation is not affected by the fact that the
obligation is itself secured by
13-13 a transaction or interest to which this article does
not apply.
13-14 3. This article does not apply to the extent
that:
13-15 (a) A statute,
regulation or treaty of the United States preempts this
13-16 article;
13-17 (b) Another
statute of this state expressly governs the creation,
13-18 perfection, priority or enforcement of a security
interest created by this
13-19 state or a governmental unit of this state;
13-20 (c) A statute
of another state, a foreign country, or a governmental unit
13-21 of another state or a foreign country, other than a
statute generally
13-22 applicable to security interests, expressly governs
creation, perfection,
13-23 priority, or enforcement of a security interest
created by the state, country
13-24 [,] or governmental unit; or
13-25 (d) The rights
of a transferee beneficiary or nominated person under a
13-26 letter of credit are independent and superior under
NRS 104.5114.
13-27 4. This article does not apply to:
13-28 (a) A
landlord’s lien, other than an agricultural lien;
13-29 (b) A lien,
other than an agricultural lien, given by statute or other rule
13-30 of law for services or materials, but NRS 104.9333
applies with respect to
13-31 priority of the lien;
13-32 (c) An
assignment of a claim for wages, salary or other compensation of
13-33 an employee;
13-34 (d) A sale of
accounts, chattel paper, payment intangibles or promissory
13-35 notes as part of a sale of the business out of which
they arose;
13-36 (e) An
assignment of accounts, chattel paper, payment intangibles or
13-37 promissory notes which is for the purpose of
collection only;
13-38 (f) An
assignment of a right to payment under a contract to an assignee
13-39 that is also obligated to perform under the
contract;
13-40 (g) An
assignment of a single account, payment intangible or
13-41 promissory note to an assignee in full or partial
satisfaction of a preexisting
13-42 indebtedness;
13-43 (h) A transfer
of an interest in or an assignment of a claim under a
13-44 policy of insurance, other than an assignment by or
to a health-care
13-45 provider of a health-care-insurance receivable and
any subsequent
13-46 assignment of the right to payment, but NRS 104.9315
and 104.9322 apply
13-47 with respect to proceeds and priorities in proceeds;
13-48 (i) An
assignment of a right represented by a judgment, other than a
13-49 judgment taken on a right to payment that was
collateral;
14-1 (j) A right
of recoupment or set-off, but:
14-2 (1) NRS
104.9340 applies with respect to the effectiveness of rights
14-3 of recoupment or set-off against deposit accounts;
and
14-4 (2) NRS
104.9404 applies with respect to defenses or claims of an
14-5 account debtor;
14-6 (k) The
creation or transfer of an interest in or lien on real property,
14-7 including a lease or rents thereunder, except to the
extent that provision is
14-8 made for:
14-9 (1) Liens
on real property in NRS 104.9203 and 104.9308;
14-10 (2) Fixtures
in NRS 104.9334;
14-11 (3) Fixture
filings in NRS 104.9501, 104.9502, 104.9512, 104.9516
14-12 and 104.9519; and
14-13 (4) Security agreements covering personal and real
property in NRS
14-14 104.9604;
14-15 (l) An
assignment of a claim arising in tort, other than a commercial tort
14-16 claim, but NRS 104.9315 and 104.9322 apply with
respect to proceeds and
14-17 priorities in proceeds; [or]
14-18 (m) An
assignment of a deposit account in a consumer transaction, but
14-19 NRS 104.9315 and 104.9322 apply with respect to
proceeds and priorities
14-20 in proceeds [.] ; or
14-21 (n) A transfer by a government or governmental
unit.
14-22 Sec. 23. NRS
237.060 is hereby amended to read as follows:
14-23 237.060 “Rule” means an ordinance, regulation,
resolution or other
14-24 type of instrument by the adoption of which the
governing body of a local
14-25 government exercises legislative powers. The term
does not include an
14-26 ordinance, regulation, resolution or other type of
instrument by the
14-27 adoption of which the governing body of a local
government exercises
14-28 legislative powers authorized pursuant to chapter
271, 278, 278A , [or]
14-29 278B ,
279 or 350 of NRS [.] or pursuant to any other law that
authorizes
14-30 the issuance of a
bond, note or other evidence of borrowing by a local
14-31 government.
14-32 Sec. 24. NRS
244.3661 is hereby amended to read as follows:
14-33 244.3661 1. Except
as otherwise provided in NRS 704.664, a board
14-34 of county commissioners may, by ordinance, impose an
excise tax on the
14-35 use of water in an amount sufficient to ensure the
payment, wholly or in
14-36 part, of obligations incurred by the county to
acquire and construct a new
14-37 facility for the treatment of water for public or
private use, or both. The tax
14-38 must be imposed on customers of suppliers of water
that are capable of
14-39 using the water treatment services provided by the
facility to be financed
14-40 with the proceeds of the tax.
14-41 2. An excise tax imposed pursuant to subsection
1 may be levied at
14-42 different rates for different classes of customers
or to take into account
14-43 differences in the amount of water used or estimated
to be used or the size
14-44 of the connection.
14-45 3. The ordinance imposing the tax must provide
the:
14-46 (a) Rate or
rates of the tax;
14-47 (b) Procedure
for collection of the tax;
14-48 (c) Duration
of the tax; and
14-49 (d) Rate of
interest that will be charged on late payments.
15-1 4. Late payments of the tax must bear interest
at a rate not exceeding 2
15-2 percent per month, or fraction thereof. The tax due
is a perpetual lien
15-3 against the property served by the water on whose
use the tax is imposed
15-4 until the tax and any interest which may accrue
thereon are paid. The
15-5 county shall enforce the lien in the same manner as
provided in NRS
15-6 [361.565] 361.5648
to 361.730, inclusive, for property taxes.
15-7 5. A county may:
15-8 (a) Acquire
and construct a new facility for the treatment of water for
15-9 public or private use, or both.
15-10 (b) Finance
the project by the issuance of general obligation bonds,
15-11 medium-term obligations or revenue bonds or other
securities issued
15-12 pursuant to chapter 350 of NRS, or by [installment purchase]
installment-
15-13 purchase financing pursuant to [NRS 350.800.] that chapter.
15-14 (c) Enter into
an agreement with a public utility which provides that:
15-15 (1) Water
treatment services provided by the facility will be made
15-16 available to the public utility; or
15-17 (2) The
public utility will operate and maintain the facility,
15-18 or both. An agreement entered into pursuant to this
paragraph may extend
15-19 beyond the terms of office of the members of the
board of county
15-20 commissioners who voted upon it.
15-21 6. A county may pledge any money received from
the proceeds of a
15-22 tax imposed pursuant to this section for the payment
of general or special
15-23 obligations issued for a new facility for the
treatment of water for public or
15-24 private use, or both. Any money pledged by the
county pursuant to this
15-25 subsection may be treated as pledged revenues of the
project for the
15-26 purposes of subsection 3 of NRS 350.020.
15-27 7. As used in this section, “public utility” has
the meaning ascribed to
15-28 it in NRS 704.020 and does not include the persons
excluded by NRS
15-29 704.030.
15-30 Sec. 25. NRS
280.266 is hereby amended to read as follows:
15-31 280.266 1. Upon
the adoption of a resolution pursuant to NRS
15-32 350.087, the committee may issue a medium-term
obligation to purchase
15-33 capital equipment or enter into a lease-purchase
agreement for capital
15-34 equipment.
15-35 2. The committee is not required to comply with
the provisions of
15-36 NRS 350.089 if it [issues a medium-term obligation for] enters
a lease-
15-37 purchase agreement for capital equipment.
15-38 Sec. 26. NRS
354.535 is hereby amended to read as follows:
15-39 354.535 “General long-term debt” means debt which is
legally payable
15-40 from general revenues and is backed by the full
faith and credit of a
15-41 governmental unit. The term includes debt
represented by local
15-42 government securities issued pursuant to chapter 350
of NRS and debt
15-43 created for medium-term obligations pursuant to NRS [350.085]
350.087
15-44 to 350.095, inclusive.
15-45 Sec. 27. NRS
354.59811 is hereby amended to read as follows:
15-46 354.59811 1. Except
as otherwise provided in NRS 354.59813,
15-47 354.59815, 354.5982, 354.5987, 354.59871, 354.705,
354.723, 450.425,
15-48 450.760, 540A.265 and 543.600, for each fiscal year
beginning on or after
15-49 July 1, 1989, the maximum amount of money that a
local government,
16-1 except a school district, a district to provide a
telephone number for
16-2 emergencies [,] or a redevelopment
agency, may receive from taxes ad
16-3 valorem, other than those attributable to the net
proceeds of minerals or
16-4 those levied for the payment of bonded indebtedness
and interest thereon
16-5 incurred as general long-term debt of the issuer, or
for the payment of
16-6 obligations issued to pay the cost of a water
project pursuant to NRS
16-7 349.950, or for the payment of obligations under a
capital lease executed
16-8 before April 30, 1981, must be calculated as
follows:
16-9 (a) The rate
must be set so that when applied to the current fiscal year’s
16-10 assessed valuation of all property which was on the
preceding fiscal year’s
16-11 assessment roll, together with the assessed
valuation of property on the
16-12 central assessment roll which was allocated to the
local government, but
16-13 excluding any assessed valuation attributable to the
net proceeds of
16-14 minerals, assessed valuation attributable to a
redevelopment area and
16-15 assessed valuation of a fire protection district
attributable to real property
16-16 which is transferred from private ownership to
public ownership for the
16-17 purpose of conservation, it will produce 106 percent
of the maximum
16-18 revenue allowable from taxes ad valorem for the
preceding fiscal year,
16-19 except that the rate so determined must not be less
than the rate allowed for
16-20 the previous fiscal year, except for any decrease
attributable to the
16-21 imposition of a tax pursuant to NRS 354.59813 in the
previous year.
16-22 (b) This rate
must then be applied to the total assessed valuation,
16-23 excluding the assessed valuation attributable to the
net proceeds of
16-24 minerals and the assessed valuation of a fire
protection district attributable
16-25 to real property which is transferred from private
ownership to public
16-26 ownership for the purpose of conservation , but including new real
16-27 property, possessory interests and mobile homes, for
the current fiscal year
16-28 to determine the allowed revenue from taxes ad
valorem for the local
16-29 government.
16-30 2. As used in this section, “general long-term
debt” does not include
16-31 debt created for medium-term obligations pursuant to
NRS [350.085]
16-32 350.087 to 350.095, inclusive.
16-33 Sec. 28. NRS
354.59817 is hereby amended to read as follows:
16-34 354.59817 1. In
addition to the allowed revenue from taxes ad
16-35 valorem determined pursuant to NRS 354.59811, upon
the approval of a
16-36 majority of the registered voters of a county voting
upon the question, the
16-37 board of county commissioners may levy a tax ad
valorem on all taxable
16-38 property in the county at a rate not to exceed 15
cents per $100 of the
16-39 assessed valuation of the county. A tax must not be
levied pursuant to this
16-40 section for more than 10 years.
16-41 2. The board of county commissioners shall
direct the county treasurer
16-42 to distribute quarterly the proceeds of any tax
levied pursuant to the
16-43 provisions of this section among the county and the
cities and towns within
16-44 that county in the proportion that the supplemental
city-county relief tax
16-45 distribution factor of each of those local
governments for the 1990-1991
16-46 fiscal year bears to the sum of the supplemental
city-county relief tax
16-47 distribution factors of all of the local governments
in the county for the
16-48 1990-1991 fiscal year.
17-1 3. The board of county commissioners shall not
reduce the rate of any
17-2 tax levied pursuant to the provisions of this
section without the approval of
17-3 each of the local governments that receives a
portion of the tax, except that,
17-4 if a local government declines to receive its
portion of the tax in a
17-5 particular year the levy may be reduced by the
amount that local
17-6 government would have received.
17-7 4. The governing body of each local government
that receives a
17-8 portion of the revenue from the tax levied pursuant
to this section shall
17-9 establish a separate fund for capital projects for
the purposes set forth in
17-10 this section. All interest and income earned on the
money in the fund must
17-11 also be deposited in the fund. The money in the fund
may only be used for:
17-12 (a) The
purchase of capital assets including land, improvements to land
17-13 and major items of equipment;
17-14 (b) The
construction or replacement of public works; and
17-15 (c) The
renovation of existing governmental facilities, not including
17-16 normal recurring maintenance.
17-17 The money in the fund must not be used to finance
the issuance or the
17-18 repayment of bonds or other obligations, including
medium-term
17-19 obligations [.] and installment-purchase agreements.
17-20 5. Money may be retained in the fund for not
more than 10 years to
17-21 allow the funding of projects without the issuance
of bonds or other
17-22 obligations. For the purpose of determining the
length of time a deposit of
17-23 money has been retained in the fund, all money
withdrawn from the fund
17-24 shall be deemed to be taken on a first-in, first-out
basis. No money in the
17-25 fund at the end of the fiscal year may revert to any
other fund, nor may the
17-26 money be a surplus for any other purpose than those
specified in this
17-27 section.
17-28 6. The annual budget and audit report of each
local government must
17-29 specifically identify this fund and must indicate in
detail the projects that
17-30 have been funded with money from the fund. Any
planned accumulation of
17-31 the money in the fund must also be specifically
identified.
17-32 7. The projects on which money raised pursuant
to this section will be
17-33 expended must be approved by the voters in the
question submitted
17-34 pursuant to subsection 1 or in a separate question
submitted on the ballot at
17-35 a [primary,] general or special
election.
17-36 Sec. 29. NRS
354.6105 is hereby amended to read as follows:
17-37 354.6105 1. A
local government [in a county whose
population is
17-38 100,000 or more
shall] may establish a fund for the extraordinary
17-39 maintenance, repair or improvement of capital
projects. [The local
17-40 government shall
establish within that fund a separate account for each
17-41 capital project it
undertakes, except a capital project for the:
17-42 (a) Construction of public roads;
17-43 (b) Control of floods; or
17-44 (c) Transmission or treatment of water, waste
water or sewerage.
17-45 The local
government shall allocate an amount equal to one-half of 1
17-46 percent of the
total amount of the bonds sold for each capital project and
17-47 deposit that
amount in the separate account established for that capital
17-48 project. The
proceeds from the sale of those bonds or any other money of
18-1 the local
government may be used to carry out the provisions of this
18-2 subsection.]
18-3 2. Any interest and income earned on the money
in [an account within]
18-4 the fund in excess of any amount which is reserved
for rebate payments to
18-5 the Federal Government pursuant to 26 U.S.C. § 148,
as amended, or is
18-6 otherwise required to be applied in a specific
manner by the Internal
18-7 Revenue Code of 1986, as amended, must be credited
to [that account.
18-8 3. The] the
fund.
18-9 3. Except
as otherwise provided in NRS 374A.020, the money in
18-10 [each account
within] the fund may be used only
for the extraordinary
18-11 maintenance, repair or improvement of [the capital project or a facility
18-12 which replaces
that capital project.] capital projects or facilities that
18-13 replace capital
projects of the entity that made the deposits in the fund.
18-14 The money in [each account within]
the fund at the end of the fiscal year
18-15 may not revert to any other fund or be a surplus for
any purpose other than
18-16 the purpose specified in this subsection. [If the local government sells any
18-17 capital project
for which an account within the fund was established, any
18-18 balance remaining
in that account must be used to reduce the debt of the
18-19 local government.
18-20 4. The
annual budget and audit report of the local government
18-21 prepared pursuant
to NRS 354.624 must specifically identify:
18-22 (a) Each fund and every account within that
fund established pursuant
18-23 to this section
and indicate in detail any extraordinary maintenance, repairs
18-24 or improvements of
the capital project that have been paid for with money
18-25 from the fund; and
18-26 (b) Any planned accumulation of money in each
fund and every account
18-27 within the fund.
18-28 The audit report
must include a statement by the auditor whether the local
18-29 government has
complied with the provisions of this subsection.]
18-30 4. As
used in this section, “extraordinary maintenance, repair or
18-31 improvement”
means all expenses ordinarily incurred not more than
18-32 once every 5
years to maintain a local governmental facility or capital
18-33 project in a fit
operating condition.
18-34 Sec. 30. NRS
354.6116 is hereby amended to read as follows:
18-35 354.6116 A local government, except a school district,
that receives
18-36 revenue from taxes ad valorem from a lessee or user
of property which is
18-37 taxable pursuant to NRS 361.157 or 361.159 shall
deposit the revenue in or
18-38 transfer the revenue to one or more of the funds
established by the local
18-39 government pursuant to NRS [354.611,]
354.6113 or 354.6115 and use that
18-40 revenue only for the purposes authorized by those
sections if the revenue
18-41 was received in:
18-42 1. A fiscal year after the fiscal year the taxes
were owed; or
18-43 2. The fiscal year the taxes are owed and the
taxes were excluded from
18-44 the estimate of revenue from taxes ad valorem for
the local government
18-45 pursuant to NRS 354.597.
18-46 Sec. 31. NRS
354.6117 is hereby amended to read as follows:
18-47 354.6117 1. Except
as otherwise provided in subsection 2, the total
18-48 amount of money which may be transferred in a fiscal
year from the
18-49 general fund of a local government to the funds
established pursuant to
19-1 NRS [354.611,] 354.6113 and 354.6115
must not exceed 10 percent of the
19-2 total amount of the budgeted expenditures of the
general fund, plus any
19-3 money transferred from the general fund, other than
the money transferred
19-4 to those funds, for that fiscal year.
19-5 2. Any money that a local government, pursuant
to NRS 354.6116,
19-6 deposits in or transfers to one or more of the funds
established by the local
19-7 government pursuant to NRS [354.611,]
354.6113 or 354.6115:
19-8 (a) Is not
subject to the limitation on the amount of money that a local
19-9 government may transfer to those funds pursuant to
subsection 1.
19-10 (b) Must not
be included in the determination of the total amount of
19-11 money transferred to those funds for the purposes of
the limitation set forth
19-12 in subsection 1.
19-13 Sec. 32. NRS
354.626 is hereby amended to read as follows:
19-14 354.626 1. No
governing body or member thereof, officer, office,
19-15 department or agency may, during any fiscal year,
expend or contract to
19-16 expend any money or incur any liability, or enter
into any contract which
19-17 by its terms involves the expenditure of money, in
excess of the amounts
19-18 appropriated for that function, other than bond
repayments, medium-term
19-19 obligation repayments, and any other long-term
contract expressly
19-20 authorized by law. Any officer or employee of a
local government who
19-21 willfully violates NRS 354.470 to 354.626,
inclusive, is guilty of a
19-22 misdemeanor, and upon conviction thereof ceases to
hold his office or
19-23 employment. Prosecution for any violation of this
section may be
19-24 conducted by the attorney general, or, in the case
of incorporated cities,
19-25 school districts or special districts, by the
district attorney.
19-26 2. Without limiting the generality of the
exceptions contained in
19-27 subsection 1, the provisions of this section
specifically do not apply to:
19-28 (a) Purchase
of comprehensive general liability policies of insurance
19-29 which require an audit at the end of the term
thereof.
19-30 (b) Long-term
cooperative agreements as authorized by chapter 277 of
19-31 NRS.
19-32 (c) Long-term
contracts in connection with planning and zoning as
19-33 authorized by NRS 278.010 to 278.630, inclusive.
19-34 (d) Long-term
contracts for the purchase of utility service such as, but
19-35 not limited to, heat, light, sewerage, power, water
and telephone service.
19-36 (e) Contracts
between a local government and an employee covering
19-37 professional services to be performed within 24
months following the date
19-38 of such contract or contracts entered into between
local government
19-39 employers and employee organizations.
19-40 (f) Contracts
between a local government and any person for the
19-41 construction or completion of public works, money
for which has been or
19-42 will be provided by the proceeds of a sale of bonds , [or]
medium-term
19-43 obligations or an installment-purchase agreement and that
are entered
19-44 into by the local government after:
19-45 (1) Any
election required for the approval of the bonds or
19-46 installment-purchase
agreement has
been held;
19-47 (2) Any
approvals by any other governmental entity required to be
19-48 obtained before the bonds , [or] medium-term obligations
or installment-
19-49 purchase
agreement can
be issued have been obtained; and
20-1 (3) The
ordinance or resolution that specifies each of the terms of the
20-2 bonds ,
[or] medium-term obligations [,] or installment-purchase
20-3 agreement, except those terms that are
set forth in paragraphs (a) to (e),
20-4 inclusive, of subsection 2 of NRS 350.165, has been
adopted.
20-5 Neither the fund balance of a governmental fund nor
the equity balance in
20-6 any proprietary fund may be used unless appropriated
in a manner
20-7 provided by law.
20-8 (g) Contracts
which are entered into by a local government and
20-9 delivered to any person solely for the purpose of
acquiring supplies and
20-10 equipment necessarily ordered in the current fiscal
year for use in an
20-11 ensuing fiscal year, and which, under the method of
accounting adopted by
20-12 the local government, will be charged against an
appropriation of a
20-13 subsequent fiscal year. Purchase orders evidencing
such contracts are
20-14 public records available for inspection by any
person on demand.
20-15 (h) Long-term
contracts for the furnishing of television or FM radio
20-16 broadcast translator signals as authorized by NRS
269.127.
20-17 (i) The
receipt and proper expenditure of money received pursuant to a
20-18 grant awarded by an agency of the Federal
Government.
20-19 (j) The
incurrence of obligations beyond the current fiscal year under a
20-20 lease or contract for installment purchase which
contains a provision that
20-21 the obligation incurred thereby is extinguished by
the failure of the
20-22 governing body to appropriate money for the ensuing
fiscal year for the
20-23 payment of the amounts then due.
20-24 Sec. 33. NRS
355.170 is hereby amended to read as follows:
20-25 355.170 1. Except
as otherwise provided in this section and in NRS
20-26 354.750, a board of county commissioners, a board of
trustees of a county
20-27 school district or the governing body of an
incorporated city may purchase
20-28 for investment the following securities and no
others:
20-29 (a) Bonds and
debentures of the United States, the maturity dates of
20-30 which do not extend more than 10 years after the
date of purchase.
20-31 (b) Farm loan
bonds, consolidated farm loan bonds, debentures,
20-32 consolidated debentures and other obligations issued
by federal land banks
20-33 and federal intermediate credit banks under the
authority of the Federal
20-34 Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012,
inclusive, and §§ 1021
20-35 to 1129, inclusive, and the Farm Credit Act of 1971,
12 U.S.C. §§ 2001 to
20-36 2259, inclusive, and bonds, debentures, consolidated
debentures and other
20-37 obligations issued by banks for cooperatives under
the authority of the
20-38 Farm Credit Act of 1933, formerly 12 U.S.C. §§ 1131
to 1138e, inclusive,
20-39 and the Farm Credit Act of 1971, 12 U.S.C. §§ 2001
to 2259, inclusive.
20-40 (c) Bills and
notes of the United States Treasury, the maturity date of
20-41 which is not more than 10 years after the date of
purchase.
20-42 (d) Obligations
of an agency or instrumentality of the United States of
20-43 America or a corporation sponsored by the
government, the maturity date
20-44 of which is not more than 10 years after the date of
purchase.
20-45 (e) Negotiable
certificates of deposit issued by commercial banks,
20-46 insured credit unions or savings and loan
associations.
20-47 (f) Securities
which have been expressly authorized as investments for
20-48 local governments or agencies, as defined in NRS
354.474, by any
20-49 provision of Nevada Revised Statutes or by any
special law.
21-1 (g) Subject
to the limitations contained in NRS 355.177, negotiable
21-2 notes or [short-time
negotiable bonds] medium-term obligations issued
by
21-3 local governments of the State of Nevada pursuant to
NRS [350.091.]
21-4 350.087 to
350.095, inclusive.
21-5 (h) Bankers’
acceptances of the kind and maturities made eligible by
21-6 law for rediscount with Federal Reserve Banks, and
generally accepted by
21-7 banks or trust companies which are members of the
Federal Reserve
21-8 System. Eligible bankers’ acceptances may not exceed
180 days’ maturity.
21-9 Purchases of bankers’ acceptances may not exceed 20
percent of the
21-10 money available to a local government for investment
as determined on the
21-11 date of purchase.
21-12 (i) Obligations
of state and local governments if:
21-13 (1) The
interest on the obligation is exempt from gross income for
21-14 federal income tax purposes; and
21-15 (2) The
obligation has been rated “A” or higher by one or more
21-16 nationally recognized bond credit rating agencies.
21-17 (j) Commercial
paper issued by a corporation organized and operating
21-18 in the United States or by a depository institution
licensed by the United
21-19 States or any state and operating in the United
States that:
21-20 (1) Is
purchased from a registered broker-dealer;
21-21 (2) At the
time of purchase has a remaining term to maturity of no
21-22 more than 270 days; and
21-23 (3) Is rated
by a nationally recognized rating service as “A-1,” “P-1”
21-24 or its equivalent, or better,
21-25 except that investments pursuant to this paragraph
may not, in aggregate
21-26 value, exceed 20 percent of the total portfolio as
determined on the date of
21-27 purchase, and if the rating of an obligation is
reduced to a level that does
21-28 not meet the requirements of this paragraph, it must
be sold as soon as
21-29 possible.
21-30 (k) Money
market mutual funds which:
21-31 (1) Are
registered with the Securities and Exchange Commission;
21-32 (2) Are
rated by a nationally recognized rating service as “AAA” or
21-33 its equivalent; and
21-34 (3) Invest
only in securities issued by the Federal Government or
21-35 agencies of the Federal Government or in repurchase
agreements fully
21-36 collateralized by such securities.
21-37 2. Repurchase agreements are proper and lawful
investments of money
21-38 of a board of county commissioners, a board of
trustees of a county school
21-39 district or a governing body of an incorporated city
for the purchase or sale
21-40 of securities which are negotiable and of the types
listed in subsection 1 if
21-41 made in accordance with the following conditions:
21-42 (a) The board
of county commissioners, the board of trustees of the
21-43 school district or the governing body of the city
shall designate in advance
21-44 and thereafter maintain a list of qualified
counterparties which:
21-45 (1) Regularly
provide audited and, if available, unaudited financial
21-46 statements;
21-47 (2) The
board of county commissioners, the board of trustees of the
21-48 school district or the governing body of the city
has determined to have
22-1 adequate capitalization and earnings and appropriate
assets to be highly
22-2 [credit worthy;] creditworthy;
and
22-3 (3) Have
executed a written master repurchase agreement in a form
22-4 satisfactory to the board of county commissioners,
the board of trustees of
22-5 the school district or the governing body of the
city pursuant to which all
22-6 repurchase agreements are entered into. The master
repurchase agreement
22-7 must require the prompt delivery to the board of
county commissioners, the
22-8 board of trustees of the school district or the
governing body of the city and
22-9 the appointed custodian of written confirmations of
all transactions
22-10 conducted thereunder, and must be developed giving
consideration to the
22-11 Federal Bankruptcy Act.
22-12 (b) In all
repurchase agreements:
22-13 (1) At or
before the time money to pay the purchase price is
22-14 transferred, title to the purchased securities must
be recorded in the name
22-15 of the appointed custodian, or the purchased
securities must be delivered
22-16 with all appropriate, executed transfer instruments
by physical delivery to
22-17 the custodian;
22-18 (2) The
board of county commissioners, the board of trustees of the
22-19 school district or the governing body of the city
must enter a written
22-20 contract with the custodian appointed pursuant to
subparagraph (1) which
22-21 requires the custodian to:
22-22 (I) Disburse
cash for repurchase agreements only upon receipt of
22-23 the underlying securities;
22-24 (II) Notify the board of county
commissioners, the board of
22-25 trustees of the school district or the governing
body of the city when the
22-26 securities are marked to the market if the required
margin on the agreement
22-27 is not maintained;
22-28 (III) Hold
the securities separate from the assets of the custodian;
22-29 and
22-30 (IV) Report
periodically to the board of county commissioners, the
22-31 board of trustees of the school district or the
governing body of the city
22-32 concerning the market value of the securities;
22-33 (3) The
market value of the purchased securities must exceed 102
22-34 percent of the repurchase price to be paid by the
counterparty and the value
22-35 of the purchased securities must be marked to the
market weekly;
22-36 (4) The date
on which the securities are to be repurchased must not
22-37 be more than 90 days after the date of purchase; and
22-38 (5) The
purchased securities must not have a term to maturity at the
22-39 time of purchase in excess of 10 years.
22-40 3. The securities described in paragraphs (a),
(b) and (c) of subsection
22-41 1 and the repurchase agreements described in
subsection 2 may be
22-42 purchased when, in the opinion of the board of
county commissioners, the
22-43 board of trustees of a county school district or the
governing body of the
22-44 city, there is sufficient money in any fund of the
county, the school district
22-45 or city to purchase those securities and the
purchase will not result in the
22-46 impairment of the fund for the purposes for which it
was created.
22-47 4. When the board of county commissioners, the
board of trustees of a
22-48 county school district or the governing body of the city has determined
that
22-49 there is available money in any fund or funds for
the purchase of bonds as
23-1 set out in subsection 1 or 2, those purchases may be
made and the bonds
23-2 paid for out of any one or more of the funds, but
the bonds must be
23-3 credited to the funds in the amounts purchased, and
the money received
23-4 from the redemption of the bonds, as and when
redeemed, must go back
23-5 into the fund or funds from which the purchase money
was taken
23-6 originally.
23-7 5. Any interest earned on money invested
pursuant to subsection 3,
23-8 may, at the discretion of the board of county
commissioners, the board of
23-9 trustees of a county school district or the governing body of the
city, be
23-10 credited to the fund from which the principal was
taken or to the general
23-11 fund of the county, school district or incorporated
city.
23-12 6. The board of county commissioners, the board
of trustees of a
23-13 county school district or the governing body of an incorporated city may
23-14 invest any money apportioned into funds and not
invested pursuant to
23-15 subsection 3 and any money not apportioned into
funds in bills and notes
23-16 of the United States Treasury, the maturity date of
which is not more than 1
23-17 year after the date of investment. These investments
must be considered as
23-18 cash for accounting purposes, and all the interest
earned on them must be
23-19 credited to the general fund of the county, school
district or incorporated
23-20 city.
23-21 7. This section does not authorize the
investment of money
23-22 administered pursuant to a contract, debenture
agreement or grant in a
23-23 manner not authorized by the terms of the contract,
agreement or grant.
23-24 8. As used in this section:
23-25 (a) “Counterparty”
means a bank organized and operating or licensed to
23-26 operate in the United States pursuant to federal or
state law or a securities
23-27 dealer which is:
23-28 (1) A
registered broker-dealer;
23-29 (2) Designated
by the Federal Reserve Bank of New York as a
23-30 “primary” dealer in United States government
securities; and
23-31 (3) In full
compliance with all applicable capital requirements.
23-32 (b) “Repurchase
agreement” means a purchase of securities by a board
23-33 of county commissioners, the board of trustees of a
county school district
23-34 or the governing body of an incorporated city from a
counterparty which
23-35 commits to repurchase those securities or securities
of the same issuer,
23-36 description, issue date and maturity on or before a
specified date for a
23-37 specified price.
23-38 Sec. 34. NRS
360.750 is hereby amended to read as follows:
23-39 360.750 1. A
person who intends to locate or expand a business in
23-40 this state may apply to the commission on economic
development for a
23-41 partial abatement of one or more of the taxes
imposed on the new or
23-42 expanded business pursuant to chapter 361, 364A or
374 of NRS.
23-43 2. The commission on economic development shall
approve an
23-44 application for a partial abatement if the
commission makes the following
23-45 determinations:
23-46 (a) The
business is consistent with:
23-47 (1) The
state plan for industrial development and diversification that
23-48 is developed by the commission pursuant to NRS
231.067; and
23-49 (2) Any
guidelines adopted pursuant to the state plan.
24-1 (b) The
applicant has executed an agreement with the commission
24-2 which states that the business will, after the date
on which a certificate of
24-3 eligibility for the abatement is issued pursuant to
subsection 5, continue in
24-4 operation in this state for a period specified by
the commission, which
24-5 must be at least 5 years, and will continue to meet
the eligibility
24-6 requirements set forth in this subsection. The
agreement must bind the
24-7 successors in interest of the business for the
specified period.
24-8 (c) The
business is registered pursuant to the laws of this state or the
24-9 applicant commits to obtain a valid business license
and all other permits
24-10 required by the county, city or town in which the
business operates.
24-11 (d) Except as
otherwise provided in NRS 361.0687, if the business is a
24-12 new business in a county or city whose population is
50,000 or more, the
24-13 business meets at least two of the following
requirements:
24-14 (1) The
business will have 75 or more full-time employees on the
24-15 payroll of the business by the fourth quarter that
it is in operation.
24-16 (2) Establishing
the business will require the business to make a
24-17 capital investment of at least $1,000,000 in this
state.
24-18 (3) The
average hourly wage that will be paid by the new business to
24-19 its employees in this state is at least 100 percent
of the average statewide
24-20 hourly wage as established by the employment
security division of the
24-21 department of employment, training and
rehabilitation on July 1 of each
24-22 fiscal year and:
24-23 (I) The
business will provide a health insurance plan for all
24-24 employees that includes an option for health
insurance coverage for
24-25 dependents of the employees; and
24-26 (II) The
cost to the business for the benefits the business provides
24-27 to its employees in this state will meet the minimum
requirements for
24-28 benefits established by the commission by regulation
pursuant to
24-29 subsection 9.
24-30 (e) Except as
otherwise provided in NRS 361.0687, if the business is a
24-31 new business in a county or city whose population is
less than 50,000, the
24-32 business meets at least two of the following
requirements:
24-33 (1) The
business will have 25 or more full-time employees on the
24-34 payroll of the business by the fourth quarter that
it is in operation.
24-35 (2) Establishing
the business will require the business to make a
24-36 capital investment of at least $250,000 in this
state.
24-37 (3) The
average hourly wage that will be paid by the new business to
24-38 its employees in this state is at least 100 percent
of the average statewide
24-39 hourly wage as established by the employment
security division of the
24-40 department of employment, training and
rehabilitation on July 1 of each
24-41 fiscal year and:
24-42 (I) The
business will provide a health insurance plan for all
24-43 employees that includes an option for health
insurance coverage for
24-44 dependents of the employees; and
24-45 (II) The
cost to the business for the benefits the business provides
24-46 to its employees in this state will meet the minimum
requirements for
24-47 benefits established by the commission by regulation
pursuant to
24-48 subsection 9.
25-1 (f) If the
business is an existing business, the business meets at least two
25-2 of the following requirements:
25-3 (1) The
business will increase the number of employees on its payroll
25-4 by 10 percent more than it employed in the
immediately preceding fiscal
25-5 year or by six employees, whichever is greater.
25-6 (2) The
business will expand by making a capital investment in this
25-7 state in an amount equal to at least 20 percent of
the value of the tangible
25-8 property possessed by the business in the
immediately preceding fiscal
25-9 year. The determination of the value of the tangible
property possessed by
25-10 the business in the immediately preceding fiscal
year must be made by the:
25-11 (I) County
assessor of the county in which the business will
25-12 expand, if the business is locally assessed; or
25-13 (II) Department,
if the business is centrally assessed.
25-14 (3) The
average hourly wage that will be paid by the existing
25-15 business to its new employees in this state is at
least 100 percent of the
25-16 average statewide hourly wage as established by the
employment security
25-17 division of the department of employment, training
and rehabilitation on
25-18 July 1 of each fiscal year and:
25-19 (I) The
business will provide a health insurance plan for all new
25-20 employees that includes an option for health
insurance coverage for
25-21 dependents of the employees; and
25-22 (II) The
cost to the business for the benefits the business provides
25-23 to its new employees in this state will meet the
minimum requirements for
25-24 benefits established by the commission by regulation
pursuant to
25-25 subsection 9.
25-26 3. Notwithstanding the provisions of subsection
2, the commission on
25-27 economic development may:
25-28 (a) Approve an
application for a partial abatement by a business that
25-29 does not meet the requirements set forth in
paragraph (d), (e) or (f) of
25-30 subsection 2;
25-31 (b) Make the
requirements set forth in paragraph (d), (e) or (f) of
25-32 subsection 2 more stringent; or
25-33 (c) Add
additional requirements that a business must meet to qualify for
25-34 a partial abatement,
25-35 if the commission determines that such action is
necessary.
25-36 4. If a person submits an application to the
commission on economic
25-37 development pursuant to subsection 1, the commission
shall provide notice
25-38 to the governing body of the county and the city or
town, if any, in which
25-39 the person intends to locate or expand a business.
The notice required
25-40 pursuant to this subsection must set forth the date,
time and location of the
25-41 hearing at which the commission will consider the
application.
25-42 5. If the commission on economic development
approves an
25-43 application for a partial abatement, the commission
shall immediately
25-44 forward a certificate of eligibility for the
abatement to:
25-45 (a) The
department;
25-46 (b) The Nevada
tax commission; and
25-47 (c) If the
partial abatement is from the property tax imposed pursuant to
25-48 chapter 361 of NRS, the county treasurer.
26-1 6. An applicant for a partial abatement pursuant
to this section or an
26-2 existing business whose partial abatement is in
effect shall, upon the
26-3 request of the executive director of the commission
on economic
26-4 development, furnish the executive director with
copies of all
records necessary to verify that the applicant meets the requirements of
26-5 subsection 2.
26-6 7. If a business whose partial abatement has
been approved pursuant to
26-7 this section and is in effect ceases:
26-8 (a) To meet
the requirements set forth in subsection 2; or
26-9 (b) Operation
before the time specified in the agreement described in
26-10 paragraph (b) of subsection 2,
26-11 the business shall repay to the department or, if
the partial abatement was
26-12 from the property tax imposed pursuant to chapter
361 of NRS, to the
26-13 county treasurer, the amount of the exemption that
was allowed pursuant to
26-14 this section before the failure of the business to
comply unless the Nevada
26-15 tax commission determines that the business has
substantially complied
26-16 with the requirements of this section. Except as
otherwise provided in NRS
26-17 360.232 and 360.320, the business shall, in addition
to the amount of the
26-18 exemption required to be paid pursuant to this
subsection, pay interest on
26-19 the amount due at the rate most recently established
pursuant to NRS
26-20 99.040 for each month, or portion thereof, from the
last day of the month
26-21 following the period for which the payment would
have been made had the
26-22 partial abatement not been approved until the date
of payment of the tax.
26-23 8. A county treasurer:
26-24 (a) Shall
deposit any money that he receives pursuant to subsection 7 in
26-25 one or more of the funds established by a local
government of the county
26-26 pursuant to NRS [354.611,]
354.6113 or 354.6115; and
26-27 (b) May use
the money deposited pursuant to paragraph (a) only for the
26-28 purposes authorized by NRS [354.611,]
354.6113 and 354.6115.
26-29 9. The commission on economic development:
26-30 (a) Shall
adopt regulations relating to:
26-31 (1) The
minimum level of benefits that a business must provide to its
26-32 employees if the business is going to use benefits
paid to employees as a
26-33 basis to qualify for a partial abatement; and
26-34 (2) The
notice that must be provided pursuant to subsection 4.
26-35 (b) May adopt
such other regulations as the commission on economic
26-36 development determines to be necessary to carry out
the provisions of this
26-37 section.
26-38 10. The Nevada tax commission:
26-39 (a) Shall
adopt regulations regarding:
26-40 (1) The
capital investment that a new business must make to meet the
26-41 requirement set forth in paragraph (d) or (e) of
subsection 2; and
26-42 (2) Any
security that a business is required to post to qualify for a
26-43 partial abatement pursuant to this section.
26-44 (b) May adopt
such other regulations as the Nevada tax commission
26-45 determines to be necessary to carry out the
provisions of this section.
26-46 11. An applicant for an abatement who is aggrieved
by a final decision
26-47 of the commission on economic development may
petition for judicial
26-48 review in the manner provided in chapter 233B of
NRS.
27-1 Sec. 35. NRS
374A.020 is hereby amended to read as follows:
27-2 374A.020 1. The
collection of the tax imposed by NRS 374A.010
27-3 must be commenced on the first day of the first
calendar quarter that begins
27-4 at least 30 days after the last condition in
subsection 1 of NRS 374A.010 is
27-5 met.
27-6 2. The tax must be administered, collected and
distributed in the
27-7 manner set forth in chapter 374 of NRS.
27-8 3. The board of trustees of the school district
shall transfer the
27-9 proceeds of the tax imposed by NRS 374A.010 from the
county school
27-10 district fund to the fund described in NRS [354.611 which has been]
27-11 354.6105 which must be established by the board of trustees.
The money
27-12 deposited in the fund described in NRS [354.611]
354.6105 pursuant to
27-13 this subsection must be accounted for separately in
that fund and must only
27-14 be expended by the board of trustees for the cost of
the extraordinary
27-15 maintenance, extraordinary repair and extraordinary
improvement of
27-16 school facilities within the county.
27-17 Sec. 36. NRS
387.516 is hereby amended to read as follows:
27-18 387.516 1. The
board of trustees of a school district may apply to the
27-19 state treasurer for a guarantee agreement whereby
money in the state
27-20 permanent school fund is used to guarantee the
payment of the debt service
27-21 on bonds that the school district will issue. The
amount of the guarantee for
27-22 bonds of each school district outstanding at any one
time must not exceed
27-23 $25,000,000.
27-24 2. The application must be on a form prescribed
by the state treasurer.
27-25 The state treasurer shall develop the form in
consultation with the
27-26 executive director.
27-27 3. Medium-term obligations entered into pursuant
to the provisions of
27-28 NRS [350.085] 350.087 to 350.095, inclusive, are not
eligible for
27-29 guarantee pursuant to NRS 387.513 to 387.528,
inclusive.
27-30 4. Upon receipt of an application for a
guarantee agreement from a
27-31 school district, the state treasurer shall provide a
copy of the application
27-32 and any supporting documentation to the executive
director. As soon as
27-33 practicable after receipt of a copy of an
application, the executive director
27-34 shall investigate the ability of the school district
to make timely payments
27-35 on the debt service of the bonds for which the
guarantee is requested. The
27-36 executive director shall submit a written report of
his investigation to the
27-37 state board of finance indicating his opinion as to
whether the school
27-38 district has the ability to make timely payments on
the debt service of the
27-39 bonds.
27-40 Sec. 37. NRS
387.526 is hereby amended to read as follows:
27-41 387.526 1. If
a school district fails to make a timely payment on the
27-42 debt service of bonds that are guaranteed pursuant
to the provisions of NRS
27-43 387.513 to 387.528, inclusive, the state treasurer
shall:
27-44 (a) Withdraw
from the state permanent school fund the amount of
27-45 money due for the payment on the debt service;
27-46 (b) Make the
payment on the debt service; and
27-47 (c) Report the
payment to the executive director.
27-48 2. The amount of money withdrawn pursuant to
subsection 1 shall be
27-49 deemed a loan to the school district from the state
permanent school fund.
28-1 The state treasurer shall determine the rate of
interest on the loan, which
28-2 must not exceed 1 percent above the average rate of
interest yielded on
28-3 investments in the state permanent school fund on
the date that the loan is
28-4 made. A loan that is made to a school district
pursuant to this subsection is
28-5 a special obligation of the school district and is
payable only from the
28-6 sources specified in NRS 387.528.
28-7 3. A school district that receives a loan
pursuant to this section shall
28-8 not:
28-9 (a) Include
the loan as a general obligation of the school district when
28-10 determining any limit on the debt of the school
district.
28-11 (b) Unless the
school district obtains the written approval of the
28-12 executive director, for the period during which the
loan is unpaid, enter
28-13 into any medium-term obligations or installment-purchase agreement
28-14 pursuant to the provisions of NRS [350.085]
350.087 to 350.095,
inclusive,
28-15 or otherwise borrow money.
28-16 4. If the executive director receives notice
that a loan has been made
28-17 pursuant to this section, he shall proceed pursuant
to the provisions of NRS
28-18 354.685.
28-19 Sec. 38. NRS
387.528 is hereby amended to read as follows:
28-20 387.528 1.
If a loan is made from
the state permanent school fund
28-21 pursuant to NRS 387.526, the loan must be repaid [:
28-22 1. By] by
the school district from the money that is available to the
28-23 school district to pay the debt service on the bonds
that are guaranteed
28-24 pursuant to the provisions of NRS 387.513 to
387.528, inclusive, unless
28-25 payment from that money would cause the school
district to default on
28-26 other outstanding bonds , [or] medium-term obligations
or installment-
28-27 purchase
agreements entered
into pursuant to the provisions of NRS
28-28 [350.085] 350.087
to 350.095, inclusive; and
28-29 2. If the school district is not able to repay
fully the loan, including any
28-30 accrued interest, in a timely manner pursuant to
subsection 1 or by any
28-31 other lawful means, the state treasurer shall
withhold the payments of
28-32 money that would otherwise be distributed to the
school district from:
28-33 (a) The
interest earned on the state permanent school fund that is
28-34 distributed among the various school districts;
28-35 (b) Distributions
of the local school support tax, which must be
28-36 transferred by the state controller upon
notification by the state treasurer;
28-37 and
28-38 (c) Distributions
from the state distributive school account,
28-39 until the loan is repaid, including any accrued
interest on the loan. The
28-40 state treasurer shall apply the money first to the
interest on the loan and,
28-41 when the interest is paid in full, then to the
balance. When the interest and
28-42 balance on the loan are repaid, the state treasurer
shall resume making the
28-43 distributions that would otherwise be due to the
school district.
28-44 Sec. 39. NRS
496.155 is hereby amended to read as follows:
28-45 496.155 1. Subject
to the provisions of NRS 496.150 and subsections
28-46 2 and 3 of this section, for any undertaking
authorized in NRS 496.150, the
28-47 governing body of a municipality, as it determines
from time to time, may,
28-48 on the behalf and in the name of the municipality,
borrow money,
28-49 otherwise become obligated, and evidence the
obligations by the issuance
29-1 of bonds and other municipal securities, and in connection
with the
29-2 undertaking or the municipal airport, including,
without limitation, air
29-3 navigation facilities and other facilities
appertaining to the airport, the
29-4 governing body may otherwise proceed as provided in
the Local
29-5 Government Securities Law or as provided in
subsections 4 and 5.
29-6 2. General obligation bonds, whether or not
their payment is
29-7 additionally secured by a pledge of net revenues,
must be sold as provided
29-8 in the Local Government Securities Law.
29-9 3. Revenue bonds may be sold at a public sale as
provided in the Local
29-10 Government Securities Law or at a private sale.
29-11 4. The governing body may by resolution acquire
real property for the
29-12 expansion of airport or air navigation facilities by
entering into contracts of
29-13 purchase, of a type and duration and on such terms
as the governing body
29-14 determines, including, without limitation, contracts
secured by a mortgage
29-15 or other security interest in the real property. The
governing body may not
29-16 use any revenue derived from taxes ad valorem to pay
for the acquisition,
29-17 and the obligation under the contract does not
constitute a general
29-18 obligation of the municipality or apply against any
debt limitation
29-19 pertaining to the municipality.
29-20 5. The governing body may by resolution enter
into a medium-term
29-21 obligation or installment-purchase agreement for any
undertaking
29-22 authorized in NRS 496.150 and issue negotiable
instruments without
29-23 regard to the requirements specified in:
29-24 (a) Paragraphs
(a) and (b) of subsection 2 of NRS 350.091; and
29-25 (b) Subsections
1 and 2 of NRS 350.089, unless the financing is to be
29-26 repaid from the proceeds of a special tax exempt
from limitations on taxes
29-27 ad valorem.
29-28 Sec. 40. NRS
555.215 is hereby amended to read as follows:
29-29 555.215 1. Upon
the preparation and approval of a budget in the
29-30 manner required by the Local Government Budget Act,
the board of county
29-31 commissioners of each county having lands situated
in the district shall, by
29-32 resolution, levy an assessment upon all real
property in the county which is
29-33 in the weed control district.
29-34
2. Every assessment so levied is a lien against
the property assessed.
29-35 3. Amounts collected in counties other than the
county having the
29-36 larger or largest proportion of the area of the
district must be paid over to
29-37 the board of county commissioners of that county for
the use of the district.
29-38 4. The county commissioners of that county may
obtain medium-term
29-39 obligations pursuant to NRS [350.085]
350.087 to 350.095,
inclusive, of an
29-40 amount of money not to exceed the total amount of
the assessment, to pay
29-41 the expenses of controlling the weeds in the weed
control district. The
29-42 loans may be made only after the assessments are
levied.
29-43 Sec. 41. Section
12 of chapter 227, Statutes of Nevada 1975, as last
29-44 amended by chapter 351, Statutes of Nevada 1997, at
page 1280, is hereby
29-45 amended to read as follows:
29-46 Sec. 12.
1. The provisions of the Local Government Budget
29-47 Act, NRS 354.470 to 354.626, inclusive, as now and
hereafter
29-48 amended, apply to the Authority as a local
government, and the
30-1 Authority shall, for purposes of that application,
be deemed a district
30-2 other than a school district.
30-3 2. The provisions of NRS [350.085]
350.087 to 350.095,
30-4 inclusive, apply to the Authority.
30-5 Sec. 42. Section
20 of chapter 474, Statutes of Nevada 1977, as last
30-6 amended by chapter 203, Statutes of Nevada 1997, at
page 567, is hereby
30-7 amended to read as follows:
30-8 Sec. 20. The authority may enter into
medium-term obligations
30-9 and
installment-purchase obligations in compliance with NRS
30-10 350.087 to 350.095, inclusive.
30-11 Sec. 43. Section 8A.140 of the charter of Carson
City, being chapter
30-12 16, Statutes of Nevada 1997, at page 45, is hereby
amended to read as
30-13 follows:
30-14 Sec. 8A.140 Types of securities; pledged revenue.
30-15 1. For the acquisition, development,
construction, equipping,
30-16 operation, maintenance, improvement and management
of open
30-17 spaces, parks, trails and recreational facilities
authorized by this
30-18 article, the board may issue:
30-19 (a) General
obligation bonds;
30-20 (b) General
obligation bonds for which payment is additionally
30-21 secured by a pledge of the proceeds of the tax
imposed pursuant to
30-22 this article, and if so determined by the board,
further secured by a
30-23 pledge of the gross or net revenues derived from the
operation of the
30-24 recreational facilities, and any other project of
the city which produces
30-25 income, or from any license fees or other excise
taxes imposed for
30-26 revenue by the city, or otherwise, as may be legally
made available
30-27 for payment of the bonds;
30-28 (c) Revenue
bonds for which payment is solely secured by a
30-29 pledge of the proceeds of the tax imposed pursuant
to this article, and
30-30 if so determined by the board, further secured by a
pledge of the gross
30-31 or net revenues derived from the operation of the
recreational
30-32 facilities, and any other project of the city which
produces income, or
30-33 from any license fees or other excise taxes imposed
for revenue by the
30-34 city, or otherwise, as may be legally made available
for payment of
30-35 the bonds; and
30-36 (d) Medium-term
obligations pursuant to NRS [350.085] 350.087
30-37 to 350.095, inclusive.
30-38 2. Money pledged to the payment of bonds or
other securities
30-39 pursuant to subsection 1 may be treated for the
purposes of subsection
30-40 3 of NRS 350.020 as pledged revenue for the uses
authorized by this
30-41 article.
30-42 Sec. 44. Section
24 of chapter 37, Statutes of Nevada 1999, at page
30-43 85, is hereby amended to read as follows:
30-44 Sec. 24. 1. To acquire, develop, construct, equip,
improve and
30-45 manage libraries, airports, and facilities and
services for senior
30-46 citizens located in the county, the board may issue:
30-47 (a) General
obligation bonds;
30-48 (b) General
obligation bonds for which payment is additionally
30-49 secured by a pledge of the proceeds of the tax
imposed pursuant to
31-1 this act, and if so determined by the board, further
secured by a pledge
31-2 of the gross or net revenues derived from the
operation of libraries,
31-3 airports or facilities and services for senior
facilities or any other
31-4 project of the county which produces income, or from
any license fees
31-5 or other excise taxes imposed for revenue by the
county, or otherwise,
31-6 as may be legally made available for payment of the
bonds;
31-7 (c) Revenue
bonds for which payment is solely secured by a
31-8 pledge of the proceeds of the tax imposed pursuant
to this act, and if
31-9 so determined by the board, further secured by a
pledge of the gross
31-10
or net revenues derived from the operation of
the libraries, airports or
31-11 facilities for senior citizens or any other project
of the county which
31-12 produces income, or from any license fees or other
excise taxes
31-13 imposed for revenue by the county, or otherwise, as
may be legally
31-14 made available for payment of the bonds; and
31-15 (d) Medium-term
obligations pursuant to NRS [350.085] 350.087
31-16 to 350.095, inclusive.
31-17 2. Money pledged to the payment of bonds or
other securities
31-18 pursuant to subsection 1 may be treated for the
purposes of subsection
31-19 3 of NRS 350.020 as pledged revenue for the uses
authorized by this
31-20 act.
31-21 Sec. 45. NRS
350.085, NRS 354.5235, 354.6107 and 354.611 are
31-22 hereby repealed.
31-23 Sec. 46. 1. Except as otherwise provided in subsection 2,
all money
31-24 in an extraordinary maintenance fund created
pursuant to NRS 354.6107 or
31-25 354.611 must be transferred to an extraordinary
maintenance fund
31-26 established pursuant to NRS 354.6105 and must be
used for the purposes
31-27 set forth in that section.
31-28 2. Money in an extraordinary maintenance fund
created pursuant to
31-29 NRS 354.611 that was collected pursuant to NRS
374A.020 must be:
31-30 (a) Transferred
to an extraordinary maintenance fund created pursuant
31-31 to NRS 354.6105;
31-32 (b) Accounted
for separately in that fund; and
31-33 (c) Used only
for the purposes and in the manner set forth in NRS
31-34 374A.020.
31-35 Sec. 47. 1. This section and sections 1 to 21, inclusive,
and 23 to 46,
31-36 inclusive, of this act become effective on July 1,
2001.
31-37 2. Section 22 of this act becomes effective at
12:01 a.m. on July 1,
31-38 2001.
31-39 LEADLINES OF
REPEALED SECTIONS
31-40 350.085 Definitions.
31-41 354.5235 “Extraordinary maintenance, repair or improvement”
31-42 defined.
32-1 354.6107 Fund for extraordinary maintenance, repair or
32-2 improvement of capital projects in county
whose population is less
32-3 than
100,000.
32-4 354.611 Fund for extraordinary maintenance, repair or
32-5 improvement of local governmental facilities.
32-6 H