Assembly Bill No. 16

Assembly Bill No. 16-Committee on Government Affairs

Prefiled on January 15, 1997
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Referred to Committee on Infrastructure

SUMMARY--Provides exemption for obligors from submission of operating history before issuance of certain bonds. (BDR 20-223)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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

AN ACT relating to public improvements; providing an exemption for obligors from the submission of an operating history before the issuance of bonds for affordable housing or residential housing for a corporation for public benefit; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1 NRS 244A.711 is hereby amended to read as follows:
244A.711 1. Except as otherwise provided in NRS 244A.703, after holding the [required] public hearing [,] required by NRS 244A.707, the board of county commissioners shall proceed no further [unless or] until it:
(a) Except as otherwise provided in subsection 2, determines by resolution the total amount of money necessary to be provided by the county for the acquisition, improvement and equipment of the project;
(b) [Receives] If the project is a project other than one that is described in NRS 244A.6975, receives a 5-year operating history from the contemplated lessee, purchaser , [or] other obligor [, or from a parent] or other enterprise which guarantees principal and interest payments on any bonds issued;
(c) Receives evidence that the contemplated lessee, purchaser, other obligor or other enterprise which guarantees principal and interest payments, has received within the 12 months preceding the date of the public hearing, or then has in effect, a rating within one of the top four rating categories of either Moody's Investor Service, Inc. , or Standard and Poor's Corporation, except that a municipal or other public supplier of electricity in this state, a public utility regulated by the public service commission of Nevada, the obligor with respect to a project described in NRS 244A.6975, the owner of a historic structure, a health and care facility or a supplemental facility for a health and care facility is not required to furnish that evidence;
(d) Determines by resolution that the contemplated lessee, purchaser or other obligor has sufficient financial resources to place the project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement; and
(e) If the project is for the generation and transmission of electricity, determines by resolution that the project will serve one or more of the purposes set forth in NRS 244A.695 and specifies in the resolution its findings supporting that determination.
2. If the project is for the generation and transmission of electricity, the board may estimate the total amount of money necessary for its completion, and the total amount of money which may be provided by the county in connection with the project may exceed the estimate, without the requirement for any further public hearings to be held in connection therewith, to the extent that the excess is required to complete the project or to finance any improvements to or replacements in the project and the county has previously determined to finance the remaining costs of acquiring, improving and equipping the project.
3. The board may refuse to adopt such a resolution with respect to any project even if all the criteria of subsection 1 are satisfied. If the board desires to adopt such a resolution with respect to any project where any criterion of subsection 1 is not satisfied, it may do so only with the approval of the state board of finance. In requesting this approval, the board of county commissioners shall transmit to the state board of finance all evidence received pursuant to subsection 1.
4. If any part of the project or improvements is to be constructed by a lessee or his designee, a purchaser or his designee or an obligor or his designee, the board shall provide, or determine that there are provided, sufficient safeguards to assure that all money provided by the county will be expended solely for the purposes of the project.
Sec. 2 NRS 268.530 is hereby amended to read as follows:
268.530 1. After holding [a] the public hearing [as provided in] required by NRS 268.528, the governing body shall proceed no further until it:
(a) Determines by resolution the total amount of money necessary to be provided by the city for the acquisition, improvement and equipment of the project;
(b) [Receives] If the project is a project other than one that is described in NRS 268.5385, receives a 5-year operating history from the contemplated lessee, purchaser , [or] other obligor [, or from a parent] or other enterprise which guarantees principal and interest payments on any bonds issued;
(c) Receives evidence that the contemplated lessee, purchaser, other obligor or other enterprise which guarantees principal and interest payments, has received within the 12 months preceding the date of the public hearing a rating within one of the top four rating categories of either Moody's Investor Service, Inc., or Standard and Poor's Corporation, except that a public utility regulated by the public service commission of Nevada, the obligor with respect to a project described in NRS 268.5385, a health and care facility or a supplemental facility for a health and care facility is not required to furnish that evidence;
(d) Determines by resolution that the contemplated lessee, purchaser or other obligor has sufficient financial resources to place the project in operation and to continue its operation, meeting the obligations of the lease, purchase contract or financing agreement; and
(e) Finds by resolution that the project:
(1) Will provide a public benefit;
(2) Would be compatible with existing facilities in the area adjacent to the location of the project;
(3) Will encourage the creation of jobs for the residents of this state;
(4) Is compatible with the general plan of the city adopted pursuant to chapter 278 of NRS; and
(5) If not exempt from the provisions of subsection 2 of NRS 268.527, will not compete substantially with an enterprise or organization already established in the city or the county within which the city is located.
2. The governing body may refuse to proceed with any project even if all the criteria of subsection 1 are satisfied. If the governing body desires to proceed with any project where any criterion of subsection 1 is not satisfied, it may do so only with the approval of the state board of finance. In requesting the approval, the governing body shall transmit to the state board of finance all evidence received pursuant to subsection 1.
3. If any part of the project or improvements is to be constructed by a lessee or his designee, a purchaser or his designee or an obligor or his designee, the governing body shall provide, or determine that there are provided, sufficient safeguards to assure that all money provided by the city will be expended solely for the purposes of the project.