SUMMARY--Authorizes local governments and department of transportation to establish toll roads and toll bridges. (BDR 35-914)
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 roads; authorizing local governments and the director of the department of transportation to establish toll roads and toll bridges; 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 Title 35 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 13, inclusive, of this act.
Sec. 2 As used in this chapter, unless the context otherwise requires:
1. "Municipality" means a county, city or town.
2. "Toll road" means any highway, expressway, turnpike or other right of way used primarily for vehicular traffic and for which a charge is paid for each use. The term includes all structures, culverts, curbs, drains, buildings, services and works incidental to the construction or operation of a toll road.
Sec. 3 The governing body of a municipality may:
1. Construct, maintain and operate toll roads and toll bridges. The toll road or toll bridge may be a new road or bridge or an existing road or bridge to which major improvements will be added, or any combination thereof.
2. Defray the cost of the construction, operation and maintenance of a toll road or toll bridge by the issuance of bonds or other securities pursuant to NRS 350.500 to 350.720, inclusive.
3. Apply for, accept and expend any federal or private grant of money or other type of assistance that becomes available to carry out the provisions of this section and sections 5 and 6 of this act.
4. Enter into an interlocal or intercounty agreement for the acquisition or major improvement of a toll road or toll bridge.
Sec. 4 If practicable, a toll road established pursuant to this chapter must parallel existing roads.
Sec. 5 1. The governing body of a municipality may enter into an agreement with another governing body or the director of the department of transportation to:
(a) Study the feasibility of constructing a toll road or toll bridge;
(b) Construct, operate and maintain a toll road or toll bridge; or
(c) Defray the cost of the construction, operation and maintenance of the toll road or toll bridge by the issuance of bonds or other securities pursuant to NRS 350.500 to 350.720, inclusive.
2. Any agreement entered pursuant to subsection 1 must:
(a) Not exceed 40 years in term; and
(b) Be payable from any money lawfully available to the governing body or the department of transportation.
Sec. 6 1. The ordinance providing for the issuance of any bonds or other securities pursuant to section 3 or 5 of this act must specify the period that the project will remain a toll road or toll bridge and the use of the revenue therefrom.
2. When the project is no longer a toll road or toll bridge, the governing body may enter into an agreement with the director of the department of transportation to make the former toll road or toll bridge a part of the state highway system.
Sec. 7 1. If public money is not used to finance construction, a governing body may:
(a) Adopt an ordinance ordering the acquisition or major improvement of a road or bridge and charge a toll for the use of the road or bridge; and
(b) Contract with a person to construct, improve, maintain or operate, or any combination thereof, the road or bridge as a toll road or toll bridge without complying with the provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, chapters 332, 338 and 339 of NRS, if the governing body enters into a contract for the acquisition, construction or major improvement of the road or bridge which includes:
(1) A provision stating that the requirements of NRS 338.010 to 338.090, inclusive, apply to any construction work to be performed under the contract; and
(2) The price, stated as a lump sum or as unit prices, which the governing body agrees to pay for the road or bridge if the road or bridge meets all requirements and specifications in the contract.
2. The governing body may provide for a letter of credit, surety bond or other collateral to guarantee payment of any interim warrants or bonds issued for a toll road or toll bridge.
3. If a governing body creates a toll road or toll bridge, it shall create a special revenue fund for the tolls collected. Any interest and income earned on the money in the fund must remain in the fund for use as all other money in the fund is used. The money in the fund may only be used to pay the cost of the project for which the tolls are collected and the administrative costs directly related to the project, including the cost of collecting the tolls. The appropriate officer of the municipality shall transfer monthly from the fund to a debt service fund created for this purpose the amount of money necessary to make any payments of interest or principal that will be due in the following year for debt related to the toll road or toll bridge to provide a sufficient amount of money in the debt service fund to make all such payments.
Sec. 8 The governing body of a municipality shall not convert an existing road or bridge into a toll road or toll bridge pursuant to the provisions of this chapter solely to pay the cost of maintenance of the road or bridge.
Sec. 9 As used in sections 9 to 13, inclusive, of this act, unless the context otherwise requires:
1. "Board" means the board of directors of the department of transportation.
2. "Director" means the director of the department of transportation.
Sec. 10 1. Upon approval of the board, the director may:
(a) Establish a toll road or toll bridge.
(b) Enter into an agreement with another state or the Federal Government, or both, concerning the construction, major improvement or maintenance, or any combination thereof, of a toll road or toll bridge.
2. The director may enter into any contracts necessary for the construction, major improvement or maintenance of the road or bridge.
3. The toll road or toll bridge may be a new road or bridge or an existing road or bridge to which major improvements will be added, or any combination thereof.
4. The director shall not convert an existing road or bridge into a toll road or toll bridge pursuant to the provisions of this chapter solely to pay the cost of maintenance of the road or bridge.
Sec. 11 The toll charged for use of the road or bridge must be calculated by the director to produce, within a reasonable period, an amount of money equal to the cost of the project or the portion of the cost of the project to be financed by the tolls. After the cost of the project is recovered, the toll must not be collected unless:
1. A plan for necessary maintenance or future improvements has been adopted by the director;
2. The plan is approved by the board; and
3. The amount of the toll is recalculated to produce the amount of money required by the plan.
Sec. 12 Money collected as tolls from a toll road or toll bridge authorized pursuant to sections 9 to 13, inclusive, of this act must be accounted for separately in the state highway fund and may only be used to pay the costs of the project for which the tolls are collected and the administrative costs directly related to the project, including the cost of collecting the tolls.
Sec. 13 1. The director may, with the approval of the board, request that the state board of examiners issue general obligation bonds, revenue bonds or any other evidence of indebtedness, or any combination thereof, to finance the construction of a toll road or toll bridge.
2. The bonds or other obligations may be issued at one time or from time to time.
3. The provisions of chapter 349 of NRS apply to the issuance of the bonds or other obligations pursuant to this section.