Assembly Bill No. 85–Committee on Government Affairs

 

(On Behalf of the Department of Business and
Industry, Director’s Office)

 

February 13, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing revenue bonds for industrial development. (BDR 30‑469)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to revenue bonds for industrial development; revising the prerequisites to the financing of certain proposed projects; 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. NRS 349.590 is hereby amended to read as follows:

1-2  349.590  Except as otherwise provided in NRS 349.640, before

1-3  financing a project pursuant to subsection 2 of NRS 349.580, the

1-4  Director and the Board [must also:] shall, or before financing a

1-5  project pursuant to NRS 349.595, the Director shall:

1-6  1.  Determine the total amount of money necessary to be

1-7  provided by the Director for financing the project.

1-8  2.  Except as otherwise provided in this subsection, receive a

1-9  5-year operating history from the contemplated lessee, purchaser or

1-10  other obligor or from any other enterprise that will make or

1-11  guarantee the payment of the principal, premium, if any, and interest

1-12  on any bonds issued. An operating history is not required if the

1-13  bonds:

1-14      (a) Are to be sold only to qualified institutional buyers, as

1-15  defined in Rule 144A of the Securities and Exchange Commission,

2-1  17 C.F.R. § 230.144A, in minimum denominations of at least

2-2  $100,000; or

2-3  (b) Will receive a rating within one of the top four rating

2-4  categories of Moody’s Investors Service, Inc., Standard and Poor’s

2-5  Rating Services or Fitch IBCA, Inc.

2-6  3.  Consider whether the contemplated lessee, purchaser, other

2-7  obligor or other enterprise that will make or guarantee the payment

2-8  of the principal, premium, if any, and interest on any bonds issued

2-9  has received within the 12 months preceding the date of the findings

2-10  of the Director, or then has or has not in effect, a rating within one

2-11  of the top four rating categories of Moody’s Investors Service, Inc.,

2-12  Standard and Poor’s Ratings Services or Fitch IBCA, Inc.

2-13      4.  Identify any existing facilities of a like nature within the

2-14  county or city in which the project will be located and consider the

2-15  applicability of paragraph (b) of subsection 1 of NRS 349.565.

2-16      5.  Consider the extent to which the project is affected by any

2-17  federal, state or local governmental action, activity, program or

2-18  development.

2-19      6.  Consider whether the lessee, purchaser, other obligor or

2-20  other enterprise of the project has maintained facilities appropriate

2-21  to the community in this state for 10 years or longer.

2-22      Sec. 2.  NRS 349.595 is hereby amended to read as follows:

2-23      349.595  1.  The Director may provide financing for a project

2-24  pursuant to this section if:

2-25      (a) [The financing is limited in amount and purpose to the

2-26  payment of the costs associated with:

2-27          (1) The acquisition, refurbishing, replacement and

2-28  installation of equipment for the project; and

2-29          (2) The issuance of bonds pursuant to this section;

2-30      (b)] The total amount of the bonds issued pursuant to this

2-31  section for [a particular] the project does not exceed [$2,500,000;

2-32      (c)] $3,000,000;

2-33      (b) The Director determines that the bonds will:

2-34          (1) Be sold only to qualified institutional buyers, as defined

2-35  in Rule 144A of the Securities and Exchange Commission,

2-36  17 C.F.R. § 230.144A, in minimum denominations of at least

2-37  $100,000; or

2-38          (2) Receive a rating within one of the top four rating

2-39  categories of Moody’s Investors Service, Inc., Standard and Poor’s

2-40  Rating Services or Fitch IBCA, Inc.;

2-41      [(d)] (c) The Director makes the findings set forth in

2-42  paragraphs (a) [to (e), inclusive,] , (b), (d), (e), (g) and (h) of

2-43  subsection 2 of NRS 349.580[, and the governing body of the city

2-44  or county where the project is to be located approves the findings of

2-45  the Director; and

3-1  (e)] ; and

3-2  (d) The Director complies with the provisions of NRS 349.590

3-3  and the guidelines established pursuant to subsection 2.

3-4  2.  The Board shall establish guidelines for the provision of

3-5  financing for a project pursuant to this section.

3-6  Sec. 3.  This act becomes effective upon passage and approval.

 

3-7  H