Referred to Concurrent Committees on Infrastructure
and Ways and Means
SUMMARY--Revises provisions governing financing of school facilities. (BDR 34-153)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to education; revising provisions governing the review of plans for school facilities; authorizing school districts to lease school facilities; creating the committee to oversee the construction and repair of school facilities; authorizing the issuance of certain bonds under certain circumstances without an election; specifying that the provision of school facilities is a fundamental purpose of the Community Redevelopment Law; providing exceptions to the statutory limit on the total rate of taxes ad valorem for taxes levied under certain circumstances; providing that certain money remaining in the state distributive school account be deposited in the special account for school construction; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 385.125 is hereby amended to read as follows:
385.1251. The state board may adopt standard plans and specifications for the construction of school buildings by the boards of trustees of the various school districts. If such plans and specifications are adopted, provision [shall] must be made for the production and distribution of such plans and specifications by appropriate rules and regulations. The board of trustees of a school district may use any such plans and specifications if it determines that they are in the best interests of the district.
2. [Prior to] Before the adoption of any such standard plans and specifications, the state board shall submit [them] the plans and specifications to the state public works board, whose written approval thereof [shall] must be obtained [prior to] before any further consideration by the board. The state public works board shall ensure that the plans and specifications comply with all applicable requirements of the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 to 12213, inclusive.
3. The state public works board may charge and collect and the board may pay a reasonable fee for the costs incurred by the state public works board in approving the standard plans and specifications submitted.
Sec. 2 NRS 387.3285 is hereby amended to read as follows:
387.32851. Upon the approval of a majority of the registered voters of a county voting upon the question, the board of county commissioners in each county with a school district whose enrollment is fewer than 25,000 pupils may levy a tax which, when combined with any tax imposed pursuant to NRS 387.3287, is not more than 75 cents on each $100 of assessed valuation of taxable property within the county. [The question submitted to the registered voters must include the period during which the tax will be levied. The period may not exceed 20 years.]
2. Upon the approval of a majority of the registered voters of a county voting upon the question, the board of county commissioners in each county with a school district whose enrollment is 25,000 pupils or more may levy a tax which, when combined with any tax imposed pursuant to NRS 387.3287, is not more than 50 cents on each $100 of assessed valuation of taxable property within the county. [The question submitted to the registered voters must include the period during which the tax will be levied. The period may not exceed 20 years.]
3. Any money collected pursuant to this section must be deposited in the county treasury to the credit of the fund for capital projects to be held and, except as otherwise provided in NRS 387.3287, to be expended in the same manner as other money deposited in that fund.
Sec. 3 NRS 387.335 is hereby amended to read as follows:
387.3351. The board of trustees of a county school district may issue its general obligations to raise money for the following purposes, and no others:
(a) Construction or purchase of new buildings for schools, including , but not limited to , teacherages, dormitories, dining halls, gymnasiums and stadiums.
(b) Enlarging, remodeling or repairing existing buildings or grounds for schools, including , but not limited to , teacherages, dormitories, dining halls, gymnasiums and stadiums.
(c) Acquiring sites for building schools, or additional real property for necessary purposes related to schools, including , but not limited to , playgrounds, athletic fields and sites for stadiums.
(d) Paying expenses relating to the lease of school facilities by a school district pursuant to NRS 393.080.
(e) Purchasing necessary furniture and equipment for schools. If money from the issuance of general obligations is used to purchase furniture and equipment to replace existing furniture and equipment, and that existing furniture and equipment subsequently is sold, the proceeds from the sale must be applied toward the retirement of those obligations.
2. Any one or more of the purposes enumerated in subsection 1 may, by order of the board of trustees entered in its minutes, be united and voted upon as one single proposition.
3. Any question submitted pursuant to this section and any question submitted pursuant to NRS 387.3285 may, by order of the board of trustees entered in its minutes, be united and voted upon as a single proposition.
Sec. 4 NRS 387.531 is hereby amended to read as follows:
387.5311. Notwithstanding the provisions of any other law, the boards of trustees of county school districts are authorized and empowered to acquire any or all of the facilities or projects specified in [paragraphs (a) to (d), inclusive, of] subsection 1 of NRS 387.335 jointly, as moneys may be made available therefor, including , but not [necessarily] limited to , proceeds of bonds issued pursuant to this chapter.
2. Subject to the provisions of NRS 387.541, each such county school district, acting by and through its board of trustees, is authorized and empowered, in its name and upon its behalf, to issue the school district's negotiable, coupon, general obligation bonds for defraying all or any part of the cost of the facility or project.
Sec. 5 Chapter 393 of NRS is hereby amended by adding thereto the provisions set forth as sections 6 to 13, inclusive, of this act.
Sec. 6 As used in sections 6 to 13, inclusive, of this act, unless the context otherwise requires, "committee" means the committee to oversee the construction and repair of school facilities created pursuant to section 7 of this act.
Sec. 7 1. The committee to oversee the construction and repair of school facilities is hereby created. The committee consists of seven members appointed by the governor as follows:
(a) Three representatives of private business;
(b) One representative of the department of education;
(c) One representative of the state public works board;
(d) One retired school teacher of a public school who is receiving retirement allowances pursuant to chapter 286 of NRS; and
(e) One parent or legal guardian of a pupil who is enrolled in a public school.
The governor shall ensure that the members whom he appoints to the committee have a broad range of knowledge and interests.
2. The members of the committee shall elect a chairman from among their membership.
3. Except as otherwise provided in this subsection, each member of the committee serves without compensation. For each day or portion of a day during which a member of the committee attends a meeting of the committee or is otherwise engaged in the work of the committee, he is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally if a sufficient amount of money is available in the special account for school construction established pursuant to section 9 of this act to pay for the allowances and expenses of each member of the committee.
Sec. 8 1. On or before August 1, 1997, the committee shall, in cooperation with the department, enter into a contract with a qualified, independent consultant to conduct an evaluation of school facilities in this state.
2. On or before February 1, 1998, the consultant shall:
(a) Provide to the committee a written survey of the condition of the existing school facilities in each school district, including, without limitation, the professional opinion of the consultant concerning:
(1) The need to upgrade existing school facilities;
(2) Any improvements which are necessary to ensure that existing school facilities comply with all applicable requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12101 to 12213, inclusive); and
(3) The need, if any, for new school facilities in each school district;
(b) Make recommendations to the committee concerning the:
(1) Manner in which the boards of trustees of school districts in this state may enter into agreements with the University and Community College System of Nevada to share resources and facilities;
(2) Feasibility of adopting uniform plans for the construction of new school facilities throughout this state; and
(3) Priorities for the distribution of money from the special account for school construction established pursuant to section 9 of this act; and
(c) Perform any other duties required by the committee or the department, including, without limitation, cooperating with the committee in the development of a plan for the distribution of money from the special account for school construction established pursuant to section 9 of this act.
3. The board of trustees of each school district shall:
(a) Comply with all reasonable requests by the consultant for information; and
(b) Otherwise cooperate with the consultant in carrying out his duties pursuant to this section.
Sec. 9 On or before October 15 of each odd-numbered year, the superintendent of public instruction shall deposit one-half of all money that remains in the state distributive school account in the state general fund from the immediately preceding fiscal biennium for credit to a special account for school construction in the state general fund.
Sec. 10 1. On and after January 1, 1998, the board of trustees of a school district may apply to the committee for a grant of money from the special account for school construction established pursuant to section 9 of this act for the purchase of portable school facilities. Such an application must include:
(a) A description of the proposed portable school facility; and
(b) An explanation of the necessity for the portable school facility.
2. The committee shall consider each application in the order in which it is received unless the board of trustees of a school district provides proof satisfactory to the committee that the school district requires emergency financial assistance that warrants immediate consideration of its application.
3. The committee may impose reasonable conditions on the board of trustees of a school district to whom a grant is awarded pursuant to this section, including, without limitation, requiring the board of trustees to participate in a program for the transfer or exchange of portable school facilities with other school districts in this state.
Sec. 11 1. On or before July 1, 1998, the committee shall adopt a plan for the distribution of money from the special account for school construction established pursuant to section 9 of this act.
2. In developing the plan, the committee shall consider:
(a) The written survey provided to the committee by the consultant pursuant to paragraph (a) of subsection 2 of section 8 of this act;
(b) All recommendations of the consultant.
3. The plan adopted by the committee must:
(a) Ensure that the method of distributing money to the various school districts is general and uniform;
(b) Ensure compliance with any applicable standards of accounting for the money in the special account for school construction adopted by the legislature;
(c) Include criteria for determining the eligibility of a school district to receive a grant of money from the special account for school construction, including, without limitation, a requirement that a school district provide proof that the plan for construction or renovation provides for the efficient use of resources and personnel;
(d) A formula for determining how much money or equipment a school district is required to contribute toward the costs of construction or renovation of a school facility as a condition of receiving a grant of money from the special account for school construction;
(e) The conditions under which the committee will grant a waiver from the strict application of the provisions of paragraph (d) to a particular school district; and
(f) The conditions under which the committee may require a school district to refund a grant of money to the committee, including, without limitation, if the school district fails to complete a project for which a grant was awarded.
4. The committee may adopt:
(a) Programs to facilitate the efficient use of resources or personnel by the school districts in accommodating increased rates of enrollment of pupils;
(b) Programs to facilitate the sharing of resources and facilities among the various school districts, including, without limitation, the transfer or exchange of portable school facilities;
(c) Methods to encourage persons who develop property to donate property to school districts; and
(d) Any other programs relating to school construction deemed necessary by the committee.
Sec. 12 1. After the adoption of a plan by the committee pursuant to section 11 of this act, the board of trustees of a school district may apply to the committee for a grant of money for the repair of existing school facilities, the construction of new school facilities or the payment of expenses relating to the purchase of a facility that the school district is leasing pursuant to NRS 393.080 from the special account for school construction.
2. The committee shall consider each application in the order in which it is received unless the board of trustees of a school district provides proof satisfactory to the committee that the school district requires emergency financial assistance that warrants immediate consideration of its application.
3. Except as otherwise provided in this subsection, a board of trustees of a school district that receives a grant of money pursuant to this section shall not use any portion of the grant to pay the salary or otherwise compensate a person to oversee or inspect the construction or repair of a school facility for which the grant is provided other than those persons who are necessary to ensure the proper completion of the project. The committee may, for good cause shown by the board of trustees of a school district, authorize the board of trustees to employ or otherwise compensate additional persons to oversee or inspect the construction or repair of a school facility.
Sec. 13 1. On or before December 31 of each year, the committee shall submit a written report to the director of the legislative counsel bureau for transmission to:
(a) In each even-numbered year, the next regular session of the legislature.
(b) In each odd-numbered year, the legislative commission.
2. The report must:
(a) Set forth the amount of money in the special account for school construction established pursuant to section 9 of this act at the beginning of the preceding fiscal biennium;
(b) Describe each distribution of money from the special account to a school district in the preceding fiscal biennium, including, without limitation:
(1) The amount of money that was distributed to the school district;
(2) The purpose for which the money was distributed to the school district; and
(3) The status of the project for which the money was distributed; and
(c) Set forth the amount of money that was distributed from the special account to pay the allowances and expenses of the members of the committee in the preceding fiscal biennium.
3. The committee shall comply with all requests for additional information by the legislature or the legislative commission.
Sec. 14 NRS 393.080 is hereby amended to read as follows:
393.0801. The board of trustees of a school district may:
(a) Build, purchase or rent schoolhouses and other school buildings, including , but not limited to , teacherages, gymnasiums and stadiums, and dormitories and dining halls as provided in NRS 393.090.
(b) Enter into lease agreements for school facilities with an option to purchase the facilities.
(c) Change the location of schools.
[(c)] (d) Close a school or change the use of the school building to a purpose other than the teaching of kindergarten through 12th grade.
[(d)] (e) Supervise and inspect the work performed pursuant to a contract to which the provisions of NRS 393.110 apply.
2. Any board of trustees which proposes to change the location of a school, close a school or change the use of a school building as provided in subsection 1 shall give 30 days' written notice to the principal and teachers of the affected school and to the parents of the children attending that school. In addition the board of trustees shall publish a notice of the subject, time and place of the meeting at which the matter will be considered, in a newspaper of general circulation in the county at least 10 days before the meeting.
Sec. 15 NRS 393.110 is hereby amended to read as follows:
393.1101. Except as otherwise provided in subsection 2:
(a) Unless standard plans are to be used as provided in NRS 385.125, before letting any contract or contracts for the erection of any new school building, the board of trustees of a school district shall submit plans therefor to and obtain the written approval of the plans by the state public works board. The state public works board is authorized to charge and collect, and the board of trustees is authorized to pay, a reasonable fee for the payment of any costs incurred by the state public works board in securing the approval of qualified architects or engineers of the plans submitted by the board of trustees in compliance with the provisions of this paragraph.
(b) Before letting any contract or contracts for any addition to or alteration of an existing school building which involves structural systems, or exiting, sanitary or fire protection facilities, the board of trustees of a school district shall submit plans therefor to and obtain the written approval of the plans by the state public works board. The state public works board is authorized to charge and collect, and the board of trustees is authorized to pay, a reasonable fee for the payment of any costs incurred by the state public works board in securing the approval of qualified architects or engineers of the plans submitted by the board of trustees in compliance with the provisions of this paragraph.
The state public works board shall ensure that all plans that it reviews pursuant to this section comply with all applicable requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12101 to 12213, inclusive).
2. Upon the request of a board of trustees of a school district, or its designated representative, the state public works board may waive the requirements specified in subsection 1 and delegate its powers and duties thereunder to the district.
3. If the state public works board waives the requirements of subsection 1 and delegates its powers and duties thereunder to a school district, the school district shall submit a copy of its final plans for any project to which that section applies to the building and planning department of the appropriate city or county before completion of the project.
4. No contract for any of the purposes specified in subsection 1 made by a board of trustees of a school district contrary to the provisions of this section is valid, nor shall any public money be paid for erecting, adding to or altering any school building in contravention of this section.
Sec. 16 Chapter 279 of NRS is hereby amended by adding thereto a new section to read as follows:
It is further found and declared that:
1. The provision of school facilities is a fundamental purpose of the Community Redevelopment Law and that a generally inadequate supply of decent, safe and sanitary school facilities threatens the accomplishment of the primary purposes of the Community Redevelopment Law, including, without limitation, creating new employment opportunities, attracting new private investments of money in the area and creating physical, economic, social and environmental conditions to remove and prevent the recurrence of blight.
2. The provision of school facilities by redevelopment agencies and the use of taxes allocated to the agency pursuant thereto is of statewide benefit and assistance to all local governmental agencies.
Sec. 17 NRS 279.382 is hereby amended to read as follows:
279.382The provisions contained in NRS 279.382 to 279.685, inclusive, and section 16 of this act, may be cited as the Community Redevelopment Law.
Sec. 18 NRS 279.408 is hereby amended to read as follows:
279.4081. "Redevelopment" means the planning, development, replanning, redesign, clearance, reconstruction or rehabilitation, or any combination of these, of all or part of a redevelopment area, and the provision of such residential, commercial, educational, industrial, public or other structures or spaces as may be appropriate or necessary in the interest of the general welfare, including:
(a) Recreational and other facilities appurtenant thereto.
(b) The alteration, improvement, modernization, reconstruction or rehabilitation, or any combination thereof, of existing structures in a redevelopment area [.] , including, without limitation, school facilities.
(c) Provision for uses involving open space, such as:
(1) Streets and other public grounds;
(2) Space around buildings, structures and improvements;
(3) Improvements of recreational areas; and
(4) Improvement of other public grounds.
(d) The replanning, redesign or original development of undeveloped areas where:
(1) The areas are stagnant or used improperly because of defective or inadequate layouts of streets, faulty layouts of lots in relation to size, shape, accessibility or usefulness, or for other causes; or
(2) The areas require replanning and assembly of land for reclamation or development in the interest of the general welfare because of widely scattered ownership, tax delinquency or other reasons.
2. "Redevelopment" does not exclude the continuance of existing buildings or uses whose demolition and rebuilding or change of use are not deemed essential to the redevelopment and rehabilitation of the area.
Sec. 19 NRS 279.522 is hereby amended to read as follows:
279.522[Any] The board of trustees of any school district or any person may, in writing, request the legislative body, or the planning commission or the agency if authorized by the legislative body to designate areas for evaluation, to designate such an area for study, and may submit with their request plans showing the proposed redevelopment of that area or any part thereof.
Sec. 20 NRS 350.020 is hereby amended to read as follows:
350.020 1. Except as otherwise permitted by [subsection 3, when] subsections 3 and 4, if any municipality proposes to issue or incur general obligations, the proposal must be submitted to the electors of the municipality at a special election called for that purpose or the next primary or general municipal election or primary or general state election.
2. A special election may be held only if the governing body of the municipality determines, by a unanimous vote, that an emergency exists. The determination made by the governing body is conclusive unless it is shown that the governing body acted with fraud or a gross abuse of discretion. An action to challenge the determination made by the governing body must be commenced within 15 days after the governing body's determination is final. As used in this subsection, "emergency" means any unexpected occurrence or combination of occurrences which requires immediate action by the governing body of the municipality to prevent or mitigate a substantial financial loss to the municipality or to enable the governing body to provide an essential service to the residents of the municipality.
3. If payment of a general obligation of the municipality is additionally secured by a pledge of gross or net revenue of a project to be financed by its issue, and the governing body determines, by an affirmative vote of two-thirds of the members elected to the governing body, that the pledged revenue will at least equal the amount required in each year for the payment of interest and principal, without regard to any option reserved by the municipality for early redemption, the municipality may, after a public hearing, incur this general obligation without an election unless, within 60 days after publication of a resolution of intent to issue the bonds, a petition is presented to the governing body signed by not less than 5 percent of the registered voters of the municipality who together with any corporate petitioners own not less than 2 percent in assessed value of the taxable property of the municipality. Any member elected to the governing body whose authority to vote is limited by charter, statute or otherwise may vote on the determination required to be made by the governing body pursuant to this subsection. The determination by the governing body becomes conclusive on the last day for filing the petition. For the purpose of this subsection, the number of registered voters must be determined as of the close of registration for the last preceding general election and assessed values must be determined from the next preceding final assessment roll. An authorized corporate officer may sign such a petition whether or not he is a registered voter. The resolution of intent need not be published in full, but the publication must include the amount of the obligation and the purpose for which it is to be incurred. Notice of the public hearing must be published at least 10 days before the day of the hearing. The publications must be made once in a newspaper of general circulation in the municipality. When published, the notice of the public hearing must be at least as large as 5 inches high by 4 inches wide.
4. If a board of county commissioners has levied a tax for the payment of interest and redemption of outstanding bonds issued by the board of trustees of the county school district pursuant to NRS 387.335, the board of county commissioners may, without an election, continue the levy after the payment of interest and redemption of those bonds and issue additional bonds for the same purpose not exceeding the amount for which the levy is sufficient to pay the indebtedness as it becomes due.
5. A municipality may issue special or medium-term obligations without an election.
Sec. 21 NRS 361.453 is hereby amended to read as follows:
361.4531. Except as otherwise provided in [NRS 354.705,] subsection 2, the total ad valorem tax levy for all public purposes must not exceed $3.64 on each $100 of assessed valuation, or a lesser or greater amount fixed by the state board of examiners if the state board of examiners is directed by law to fix a lesser or greater amount for that fiscal year.
2. The limitation set forth in subsection 1 does not apply to any levy imposed:
(a) Pursuant to NRS 354.705;
(b) Pursuant to NRS 387.195;
(c) By a county pursuant to NRS 428.050, 428.185, 428.285 or 450.425; and
(d) By the legislature.
Sec. 22 Section 8 of chapter 639, Statutes of Nevada 1995, at page 2490, is hereby amended to read as follows:
Sec. 8. 1. There is hereby appropriated from the state general fund to the state distributive school account in the state general fund created pursuant to NRS 387.030:
For the fiscal year 1995-1996 $362,673,057
For the fiscal year 1996-1997 $423,104,047
2. Of the money appropriated by subsection 1 for fiscal year 1995-1996, $4,769,552 is provided for school districts to purchase computer hardware and software for instructional use in schools. This amount shall be considered a one-time appropriation and must not be included in the adjusted base budget or in estimates of the cost of maintaining the current level of service for the 1997-1999 biennium.
3. The money appropriated by subsection 1 must be:
(a) Expended in accordance with NRS 353.150 to 353.245, inclusive, concerning the allotment, transfer, work program and budget; and
(b) Work-programmed for the 2 separate fiscal years, 1995-1996 and 1996-1997, as required by NRS 353.215. Work programs may be revised with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration.
4. Transfers to and from allotments must be allowed and made in accordance with NRS 353.215 to 353.225, inclusive, after separate considerations of the merits of each request.
5. The sums appropriated by subsection 1 are available for either fiscal year. Money may be transferred from one fiscal year to the other with the approval of the governor upon the recommendation of the chief of the budget division of the department of administration.
6. Any remaining balance of the appropriation made by subsection 1 for the fiscal year 1995-1996 must be transferred and added to the money appropriated for the fiscal year 1996-1997 and may be expended as that money is expended.
7. Any remaining balance of the appropriation made by subsection 1 for the year 1996-1997, including any money added thereto pursuant to the provisions of subsections 4 and 6, must [not be committed for expenditure after June 30, 1997, and reverts to the state general fund] , as soon as all payments of money committed have been made [.] and after the computation of the final adjustment required by NRS 387.1243, be transferred to the special account for school construction established in the state general fund.
Sec. 23 1. This section and sections 21 and 22 of this act becomes effective upon passage and approval.
2. Section 7 of this act becomes effective upon passage and approval for the purpose of appointing members to the committee to oversee the construction and repair of school facilities, and on July 1, 1997, for all other purposes.
3. Sections 1 to 6, inclusive, and 8 to 20, inclusive, of this act become effective on July 1, 1997.
4. This act expires by limitation on July 1, 2003.