Senate Bill No. 78–Committee on Government Affairs

 

(On Behalf of the Department of Business
and Industry, Housing Division)

 

February 11, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to assistance to finance housing. (BDR 25‑467)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

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

 

AN ACT relating to affordable housing; providing that the Housing Division of the Department of Business and Industry may develop or acquire one or more information systems; establishing the circumstances under which the Division may issue a letter of credit; increasing the permissible aggregate principal amount of the outstanding obligations of the Division; repealing the prospective expiration of certain provisions regarding assistance to finance housing; 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 319.140 is hereby amended to read as follows:

1-2  319.140  1.  The Division shall administer the provisions of

1-3  this chapter. The Administrator may adopt, amend or rescind

1-4  regulations, consistent with the provisions of this chapter,

1-5  appropriate to carry out its purposes.

1-6  2.  The Administrator may make copies of all proceedings and

1-7  other records and documents of the Division and issue certificates

1-8  under the seal of the Division to the effect that the copies are true

1-9  copies, and all persons dealing with the Division may rely upon

1-10  such certificates.

2-1  3.  The Division has perpetual succession, subject to

2-2  termination in accordance with statute, and may:

2-3  (a) Sue and be sued in its own name, subject to chapter 41 of

2-4  NRS;

2-5  (b) Adopt an official seal and alter the same at the pleasure of

2-6  the Division;

2-7  (c) Maintain such offices at any place or places within the State

2-8  as it determines necessary to carry out the provisions of this chapter;

2-9  (d) [Adopt, amend and repeal regulations as provided in chapter

2-10  233B of NRS, consistent with the provisions of this chapter and

2-11  appropriate to carry out its purposes;

2-12      (e)] Maintain records, proceedings and documents of the

2-13  Division, subject to chapters 239, 239A and 239B of NRS;

2-14      (e) Develop or purchase, lease or otherwise acquire one or

2-15  more information systems that the Division determines are

2-16  necessary or convenient for the exercise of its powers and duties

2-17  pursuant to this chapter and acquire any consulting, support or

2-18  other service for such information systems;

2-19      (f) Make and execute contracts and all other instruments

2-20  necessary or convenient for the exercise of its powers and functions

2-21  pursuant to this chapter with any governmental agency, private

2-22  corporation or other entity, or natural person;

2-23      (g) Enter into agreements or other transactions with, and accept

2-24  grants from and cooperate with, any governmental agency or other

2-25  source in furtherance of the purposes of this chapter;

2-26      (h) Acquire real or personal property or any interest therein, by

2-27  gift, purchase, foreclosure, deed in lieu of foreclosure, lease, option

2-28  or otherwise;

2-29      (i) Hold, sell, assign, lease, encumber, mortgage, release or

2-30  otherwise dispose of any real or personal property or any interest

2-31  therein, by public or private sale, with or without public bidding,

2-32  notwithstanding any other provision of law;

2-33      (j) Employ or contract for the services of attorneys, accountants,

2-34  financial experts and any other advisers, employees, consultants and

2-35  agents as the Administrator may determine to be necessary;

2-36      (k) Create or cause to be created legal entities, including

2-37  nonprofit corporations, grantor trusts and other legal entities, which

2-38  the Division determines are necessary or convenient for the exercise

2-39  of its powers and duties pursuant to this chapter, provided, however,

2-40  that the issuance of bonds, notes or other evidence of indebtedness

2-41  by any legal entity controlled by the Division is subject to the

2-42  approval of the State Board of Finance;

2-43      (l) Provide advice, technical information, training and

2-44  educational services related to the development of housing, building

2-45  technologies and related fields;

3-1  (m) Conduct research, make grants, and promote the

3-2  development of housing, building technologies and related fields;

3-3  and

3-4  (n) Do any and all things necessary or appropriate to carry out

3-5  its purposes and exercise the powers expressly granted pursuant to

3-6  this chapter.

3-7  4.  Before September 1 of each even-numbered year, the

3-8  Division shall submit a report of its activities for the biennium

3-9  ending June 30 of that year to the Governor, State Treasurer and the

3-10  Legislature. Each such report [shall] must set forth a complete

3-11  operating and financial statement of the Division during such

3-12  biennium. The Division shall cause an audit of its books and

3-13  accounts to be made at least once in each fiscal year by a certified

3-14  public accountant. The certified public accountant may audit the

3-15  Division’s books and accounts for consecutive audit periods as

3-16  requested by the Division.

3-17      5.  The Division is exempt from the provisions of chapter 333

3-18  of NRS.

3-19      Sec. 2.  NRS 319.190 is hereby amended to read as follows:

3-20      319.190  1.  The Division may make, undertake commitments

3-21  to make and participate with lending institutions in the making of

3-22  mortgage loans[,] and may make temporary loans and advances in

3-23  anticipation of mortgage loans[, and issue letters of credit] to

3-24  finance the acquisition, construction, development, renewal,

3-25  redevelopment, rehabilitation or refinancing of residential housing,

3-26  including , without limitation, multifamily housing, within this

3-27  state.

3-28      2.  The Division may issue letters of credit to finance the

3-29  acquisition, construction, development, renewal, redevelopment,

3-30  rehabilitation or refinancing of residential housing, including,

3-31  without limitation, multifamily housing, within this state if, at the

3-32  time a letter of credit is issued, the Division has a credit rating

3-33  within one of the three highest rating categories of a nationally

3-34  recognized rating agency.

3-35      Sec. 3.  NRS 319.270 is hereby amended to read as follows:

3-36      319.270  1.  Subject to the limitation imposed by subsections 4

3-37  and 5, the Division may issue its negotiable notes and bonds in such

3-38  principal amount as the Administrator determines to be necessary to

3-39  provide sufficient money for achieving any of its statutory purposes,

3-40  including the payment of interest on notes and bonds of the

3-41  Division, establishment of bond reserve funds and other reserves to

3-42  secure the notes and bonds, and all other expenditures of the

3-43  Division necessary or convenient to carry out its statutory purposes

3-44  and powers.

4-1  2.  Subject to any agreements with holders of notes or bonds, all

4-2  notes and bonds issued by the Division are special obligations of the

4-3  Division payable out of any revenues, money or other assets of the

4-4  Division pledged thereto.

4-5  3.  In issuing the notes and bonds, the Division acts as an

4-6  agency or instrumentality of the State of Nevada.

4-7  4.  Before any notes or bonds may be issued pursuant to this

4-8  section, except those issued for the purpose of refunding outstanding

4-9  notes or bonds, the Administrator must submit a copy of his finding

4-10  of the conditions prerequisite to the financing of residential housing

4-11  under this chapter to the State Board of Finance. If that Board

4-12  approves, the Division may proceed to issue its notes or bonds in the

4-13  amount approved, subject to the further limitation of subsection 5.

4-14      5.  The aggregate principal amount of outstanding bonds, notes

4-15  and other obligations of the Division must not exceed

4-16  [$2,000,000,000,] $5,000,000,000, of which $100,000,000 must be

4-17  allocated to veterans who qualify for loans under this chapter,

4-18  exclusive of any bonds, notes or obligations which have been

4-19  refunded[.] or which were issued at a time when the Division had

4-20  a credit rating within one of three highest rating categories of a

4-21  nationally recognized rating agency. The establishment of this debt

4-22  limitation does not prohibit the Division from issuing additional

4-23  bonds, notes or other obligations if the debt limitation is

4-24  subsequently increased.

4-25      Sec. 4.  NRS 242.131 is hereby amended to read as follows:

4-26      242.131  1.  The Department shall provide state agencies and

4-27  elected state officers with all their required design of information

4-28  systems. All agencies and officers must use those services and

4-29  equipment, except as otherwise provided in subsection 2.

4-30      2.  The following agencies may negotiate with the Department

4-31  for its services or the use of its equipment, subject to the provisions

4-32  of this chapter, and the Department shall provide those services and

4-33  the use of that equipment as may be mutually agreed:

4-34      (a) The Court Administrator;

4-35      (b) The Department of Motor Vehicles;

4-36      (c) The Department of Public Safety;

4-37      (d) The Department of Transportation;

4-38      (e) The Employment Security Division of the Department of

4-39  Employment, Training and Rehabilitation;

4-40      (f) The Division of Wildlife of the State Department of

4-41  Conservation and Natural Resources;

4-42      (g) The Housing Division of the Department of Business and

4-43  Industry;

4-44      (h) The Legislative Counsel Bureau;

4-45      [(h)] (i) The State Controller;

5-1  [(i)] (j) The State Gaming Control Board and Nevada Gaming

5-2  Commission; and

5-3  [(j)] (k) The University and Community College System of

5-4  Nevada.

5-5  3.  Any state agency or elected state officer who uses the

5-6  services of the Department and desires to withdraw substantially

5-7  from that use must apply to the Director for approval. The

5-8  application must set forth justification for the withdrawal. If the

5-9  Director denies the application, the agency or officer must:

5-10      (a) If the Legislature is in regular or special session, obtain the

5-11  approval of the Legislature by concurrent resolution.

5-12      (b) If the Legislature is not in regular or special session, obtain

5-13  the approval of the Interim Finance Committee. The Director shall,

5-14  within 45 days after receipt of the application, forward the

5-15  application together with his recommendation for approval or denial

5-16  to the Interim Finance Committee. The Interim Finance Committee

5-17  has 45 days after the application and recommendation are submitted

5-18  to its Secretary within which to consider the application. Any

5-19  application which is not considered by the Committee within the

5-20  45-day period shall be deemed approved.

5-21      4.  If the demand for services or use of equipment exceeds the

5-22  capability of the Department to provide them, the Department may

5-23  contract with other agencies or independent contractors to furnish

5-24  the required services or use of equipment and is responsible for the

5-25  administration of the contracts.

5-26      Sec. 5.  Section 8 of chapter 418, Statutes of Nevada 2001, at

5-27  page 2123, is hereby amended to read as follows:

5-28      Sec. 8. This act becomes effective on July 1, 2001 . [,

5-29  and expires by limitation on July 1, 2003.]

5-30      Sec. 6.  This act becomes effective on July 1, 2003.

 

5-31  H