Senate Bill No. 140–Senator Townsend

 

February 18, 2003

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Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing acquisition by county or state of municipal obligations issued by certain water authorities. (BDR 20‑854)

 

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 municipal obligations; revising provisions governing the acquisition by a county or this state of municipal obligations issued by a water authority organized as a political subdivision created by cooperative agreement; 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 244A.0347 is hereby amended to read as

1-2  follows:

1-3  244A.0347  “Municipality” means any city, town, school

1-4  district, library district, consolidated library district, fire protection

1-5  district, district for a fire department, park district, general

1-6  improvement district organized pursuant to chapter 318 of NRS,

1-7  water district organized pursuant to a special act or water authority

1-8  organized as a political subdivision created by cooperative

1-9  agreement . [whose members include at least the two largest

1-10  municipal retail water purveyors in the county.]

1-11      Sec. 2.  NRS 350A.152 is hereby amended to read as follows:

1-12      350A.152  1.  Before state securities may be issued pursuant to

1-13  this chapter for the purpose of acquiring bonds which are issued by

1-14  a water authority organized as a political subdivision created by

2-1  cooperative agreement[:] that operates in all or a portion of a

2-2  county whose population is 400,000 or more:

2-3  (a) The water authority must obtain approval for the bonds from

2-4  the debt management commission of each county in which any

2-5  member of the water authority that is obligated to make payments

2-6  on the bonds of the water authority is located; and

2-7  (b) The members of the water authority must contract with the

2-8  water authority to make payments from the revenues of the

2-9  members’ water systems that, in the aggregate, are fully sufficient to

2-10  pay those bonds as they become due. If the water revenues of any

2-11  such member are insufficient to pay that member’s share of the

2-12  amount due on the bonds, the member shall pay the deficiency out

2-13  of money available for that purpose in the general fund of the

2-14  member. If the money in the general fund of the member is

2-15  insufficient to pay fully any such deficiency promptly, the member

2-16  shall levy a general ad valorem tax on all taxable property within the

2-17  member’s boundaries at a rate necessary to produce revenue in an

2-18  amount sufficient to pay that member’s share of the payments due

2-19  on the bonds.

2-20      2.  Notwithstanding the provisions of paragraph (a) of

2-21  subsection 1, the obligations of the members of the water authority

2-22  to the water authority and the State of Nevada as a result of the

2-23  acquisition of bonds of the water authority pursuant to this chapter

2-24  do not constitute indebtedness of the members within the meaning

2-25  of any constitutional, charter or statutory limitation or other

2-26  provisions restricting the incurrence of any debt.

2-27      3.  A property tax levied pursuant to this section:

2-28      (a) Shall be considered to have been levied for the payment of

2-29  bonded indebtedness for the purposes of NRS 361.463.

2-30      (b) Is exempt from the limitations on property taxes contained in

2-31  chapter 354 of NRS.

2-32      Sec. 3.  This act becomes effective on July 1, 2003.

 

2-33  H