Assembly Bill No. 201-Committee on Government Affairs
February 24, 1997
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Referred to Committee on Government Affairs
SUMMARY--Makes various changes relating to municipal bond bank. (BDR 30-639)
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 municipal securities; authorizing the state treasurer to make certain loans to a water authority organized as a political subdivision created by cooperative agreement; increasing the aggregate principal amount in which state securities may be issued to acquire municipal securities; 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 Chapter 350A of NRS is hereby amended by adding thereto a new section to read as follows:
1. Before state securities may be issued pursuant to this chapter for the purpose of acquiring bonds which are issued by a water authority organized as a political subdivision created by cooperative agreement, the members of the water authority must contract with the water authority to make payments from the revenues of the members' water systems that, in the aggregate, are fully sufficient to pay those bonds as they become due. If the water revenues of any such member are insufficient to pay that member's share of the amount due on the bonds, the member shall pay the deficiency out of money available for that purpose in the general fund of the member. If the money in the general fund of the member is insufficient to pay fully any such deficiency promptly, the member shall levy a general ad valorem tax on all taxable property within the member's boundaries at a rate necessary to produce revenue in an amount sufficient to pay that member's share of the payments due on the bonds.
2. The obligations of the members of the water authority to the water authority and the State of Nevada as a result of the acquisition of bonds of the water authority pursuant to this chapter do not constitute indebtedness of the members within the meaning of any constitutional, charter or statutory limitation or other provisions restricting the incurrence of any debt.
3. A property tax levied pursuant to this section:
(a) Shall be considered to have been levied for the payment of bonded indebtedness for the purposes of NRS 361.463.
(b) Is exempt from the limitations on property taxes contained in chapter 354 of NRS.
Sec. 2. NRS 350A.070 is hereby amended to read as follows:
350A.070"Municipal securities" means notes, warrants, interim debentures, bonds and temporary bonds validly issued as obligations for a purpose related to natural resources which are payable:
1. From taxes whether or not additionally secured by any municipal revenues available therefor; [or]
2. For bonds issued by an irrigation district, from assessments against real property [.] ; or
3. For bonds issued by a water authority organized as a political subdivision created by cooperative agreement, from revenues of the water system of the water authority or one or more of the water purveyors who are members of the water authority or any combination thereof.
Sec. 3. NRS 350A.080 is hereby amended to read as follows:
350A.080 "Municipality" means county, city, town, water authority organized as a political subdivision created by cooperative agreement, school district, general improvement district or other district, including an irrigation district.
Sec. 4. NRS 350A.150 is hereby amended to read as follows:
350A.150 1. The board may, at the request of the state treasurer, to pay the cost of any lending project, borrow money or otherwise become obligated, and may provide evidence of those obligations by issuing state securities.
2. State securities issued to acquire municipal securities may be outstanding pursuant to this chapter in an aggregate principal amount of not more than [$600,000,000.] $1.8 billion.
3. State securities issued to:
(a) Acquire municipal securities must be payable from taxes and may be additionally secured by all or any designated revenues from one or more lending projects.
(b) Acquire revenue securities must be payable from all or any designated revenues from one or more lending projects and from allocable local revenues payable to a municipality.
Any such state securities may be issued without an election or other preliminaries. No state securities may be issued to refund any municipal securities issued before May 29, 1981.
4. No state securities may be issued to acquire revenue securities unless:
(a) The state treasurer presents to the state board of finance findings which indicate that the revenues and taxes pledged to the payment of the revenue securities are sufficient to repay the state securities; and
(b) The state board of finance approves the findings.
5. Provisions of the State Securities Law which are not inconsistent with the provisions of this chapter apply to the issuance of state securities pursuant to this chapter.
Sec. 5. This act becomes effective upon passage and approval.