Assembly Bill No. 454-Assemblymen Humke, Close, Lee, Mortenson, Parks, Amodei, Neighbors, Segerblom, Marvel, Hettrick, Herrera and Carpenter
May 6, 1997
____________
Referred to Committee on Government Affairs
SUMMARY--Requires approval of voters at general municipal election or general election for issuance of certain general obligation bonds. (BDR 30-927)
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 obligations; requiring the approval of voters at a general municipal election or general election for the issuance of certain general obligation bonds; 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 350.020 is hereby amended to read as follows:
350.020 1. Except as otherwise [permitted by subsection 3, when any] provided by subsections 3 and 5, if a 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 a municipality proposes to issue or incur general obligations of more than $1,000,000, the proposal must be submitted to the electors of the municipality at the next general municipal election or general state election unless the governing body of the municipality determines, by a unanimous vote, that an emergency exists.
4. The determination made by a governing body pursuant to subsection 2 or 3 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.
5. 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.] 6. A municipality may issue special or medium-term obligations without an election.
7. As used in this section, "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.
Sec. 2 NRS 350.024 is hereby amended to read as follows:
350.0241. Except as otherwise provided in subsection 3, the sample ballot required to be mailed pursuant to NRS 293.565 and the notice of election must contain:
(a) The time and places of holding the election.
(b) The hours during the day in which the polls will be open, which must be the same as provided for general elections.
(c) The purposes for which the obligations are to be issued or incurred.
(d) A disclosure of any:
(1) Future increase or decrease in costs which can reasonably be anticipated in relation to the purposes for which the obligations are to be issued or incurred and its probable effect on the tax rate; and
(2) Requirement relating to the proposal which is imposed pursuant to a court order or state or federal statute and the probable consequences which will result if the bond question is not approved by the voters.
(e) The maximum amount of the obligations, including the anticipated interest, separately stating the total principal, the total anticipated interest and the anticipated interest rate.
(f) The maximum number of years which the obligations are to run.
(g) An estimate of the range of tax rates necessary to provide for debt service upon the obligations for the dates when they are to be redeemed. The county assessor shall, for each such date, estimate the assessed value of the property against which the obligations are to be issued or incurred, and the governing body shall estimate the tax rate based upon the assessed value of the property as given in the assessor's estimates.
2. If an operating or maintenance rate is proposed in conjunction with the question to issue obligations, the questions may be combined, but the sample ballot and notice of election must each state the tax rate required for the obligations separately from the rate proposed for operation and maintenance.
3. [Any] Except as otherwise provided in subsection 3 of NRS 350.020, any election called pursuant to NRS 350.020 to 350.070, inclusive, may be consolidated with a primary or general municipal election or a primary or general state election. The notice of election need not set forth the places of holding the election, but may instead state that the places of holding the election will be the same as those provided for the election with which it is consolidated.
4. If the election is a special election, the clerk shall cause notice of the close of registration to be published in a newspaper printed in and having a general circulation in the municipality once in each calendar week for two successive calendar weeks next preceding the close of registration for the election.
Sec. 3 NRS 350.030 is hereby amended to read as follows:
350.0301. If the election is not consolidated with another election, the municipality shall pay the expenses of conducting it. [Any] Except as otherwise provided in subsection 3 of NRS 350.020, any proposal to issue or incur general obligations may be submitted on the same ballot as otherwise used at a primary or general municipal election or primary or general state election or may be submitted by separate ballot, as the governing body may determine.
2. No defect in the statement of such a proposal other than in the statement of the maximum amount to be authorized invalidates the proposal.
3. The qualifications of voters, the manner of registration and voting, and the manner of counting the votes cast are governed by the general election laws insofar as those laws can reasonably be made applicable.
Sec. 4 NRS 176.0611 is hereby amended to read as follows:
176.0611 1. A county whose population is 400,000 or more or a city located within such a county, upon recommendation of the appropriate court, may, by ordinance, authorize the justices or judges of the justices' or municipal courts within its jurisdiction to impose for not longer than 25 years, in addition to an administrative assessment imposed pursuant to NRS 176.059, an administrative assessment for the provision of court facilities.
2. Except as otherwise provided in subsection 3, in any jurisdiction in which an administrative assessment for the provision of court facilities has been authorized, when a defendant pleads guilty or guilty but mentally ill or is found guilty of a misdemeanor, including the violation of any municipal ordinance, the justice or judge shall include in the sentence the sum of $10 as an administrative assessment for the provision of court facilities and render a judgment against the defendant for the assessment.
3. The provisions of subsection 2 do not apply to:
(a) An ordinance regulating metered parking; or
(b) An ordinance which is specifically designated as imposing a civil penalty or liability pursuant to NRS 244.3575 or 268.019.
4. The money collected for an administrative assessment for the provision of court facilities must not be deducted from the fine imposed by the justice or judge but must be taxed against the defendant in addition to the fine. The money collected for such an administrative assessment must be stated separately on the court's docket and must be included in the amount posted for bail. If the defendant is found not guilty or the charges are dismissed, the money deposited with the court must be returned to the defendant. If the justice or judge cancels a fine because the fine has been determined to be uncollectible, any balance of the fine and the administrative assessment remaining unpaid shall be deemed to be uncollectible and the defendant is not required to pay it. If a fine is determined to be uncollectible, the defendant is not entitled to a refund of the fine or administrative assessment he has paid and the justice or judge shall not recalculate the administrative assessment.
5. If the justice or judge permits the fine and administrative assessment for the provision of court facilities to be paid in installments, the payments must be applied in the following order:
(a) To pay the unpaid balance of an administrative assessment imposed pursuant to NRS 176.059;
(b) To pay the unpaid balance of an administrative assessment for the provision of court facilities pursuant to this section; and
(c) To pay the fine.
6. The money collected for administrative assessments for the provision of court facilities in municipal courts must be paid by the clerk of the court to the city treasurer on or before the fifth day of each month for the preceding month. The city treasurer shall deposit the money received in a special revenue fund. The city may use the money in the special revenue fund only to:
(a) Acquire land on which to construct additional facilities for the municipal courts or a regional justice center which includes the municipal courts.
(b) Construct or acquire additional facilities for the municipal courts or a regional justice center which includes the municipal courts.
(c) Renovate or remodel existing facilities for the municipal courts.
(d) Acquire furniture, fixtures and equipment necessitated by the construction or acquisition of additional facilities or the renovation of an existing facility for the municipal courts or a regional justice center which includes the municipal courts. This paragraph does not authorize the expenditure of money from the fund for furniture, fixtures or equipment for judicial chambers.
(e) Acquire advanced technology for use in the additional or renovated facilities.
(f) Pay debt service on any bonds issued pursuant to subsection [3] 5 of NRS 350.020 for the acquisition of land or facilities or the construction or renovation of facilities for the municipal courts or a regional justice center which includes the municipal courts.
Any money remaining in the special revenue fund after 5 fiscal years must be deposited in the municipal general fund for the continued maintenance of court facilities if it has not been committed for expenditure pursuant to a plan for the construction or acquisition of court facilities or improvements to court facilities. The city treasurer shall provide, upon request by a municipal court, monthly reports of the revenue credited to and expenditures made from the special revenue fund.
7. The money collected for administrative assessments for the provision of court facilities in justices' courts must be paid by the clerk of the court to the county treasurer on or before the fifth day of each month for the preceding month. The county treasurer shall deposit the money received to a special revenue fund. The county may use the money in the special revenue fund only to:
(a) Acquire land on which to construct additional facilities for the justices' courts or a regional justice center which includes the justices' courts.
(b) Construct or acquire additional facilities for the justices' courts or a regional justice center which includes the justices' courts.
(c) Renovate or remodel existing facilities for the justices' courts.
(d) Acquire furniture, fixtures and equipment necessitated by the construction or acquisition of additional facilities or the renovation of an existing facility for the justices' courts or a regional justice center which includes the justices' courts. This paragraph does not authorize the expenditure of money from the fund for furniture, fixtures or equipment for judicial chambers.
(e) Acquire advanced technology for use in the additional or renovated facilities.
(f) Pay debt service on any bonds issued pursuant to subsection [3] 5 of NRS 350.020 for the acquisition of land or facilities or the construction or renovation of facilities for the justices' courts or a regional justice center which includes the justices' courts.
Any money remaining in the special revenue fund after 5 fiscal years must be deposited in the county general fund for the continued maintenance of court facilities if it has not been committed for expenditure pursuant to a plan for the construction or acquisition of court facilities or improvements to court facilities. The county treasurer shall provide, upon request by a justice's court, monthly reports of the revenue credited to and expenditures made from the special revenue fund.
8. If money collected pursuant to this section is to be used to acquire land on which to construct a regional justice center, to construct a regional justice center or to pay debt service on bonds issued for these purposes, the county and the participating cities shall, by interlocal agreement, determine such issues as the size of the regional justice center, the manner in which the center will be used and the apportionment of fiscal responsibility for the center.
Sec. 5 NRS 244.3661 is hereby amended to read as follows:
244.3661 1. Except as otherwise provided in NRS 704.664, a board of county commissioners may, by ordinance, impose an excise tax on the use of water in an amount sufficient to ensure the payment, wholly or in part, of obligations incurred by the county to acquire and construct a new facility for the treatment of water for public or private use, or both. The tax must be imposed on customers of suppliers of water that are capable of using the water treatment services provided by the facility to be financed with the proceeds of the tax.
2. An excise tax imposed pursuant to subsection 1 may be levied at different rates for different classes of customers or to take into account differences in the amount of water used or estimated to be used or the size of the connection.
3. The ordinance imposing the tax must provide the:
(a) Rate or rates of the tax;
(b) Procedure for collection of the tax;
(c) Duration of the tax; and
(d) Rate of interest that will be charged on late payments.
4. Late payments of the tax must bear interest at a rate not exceeding 2 percent per month, or fraction thereof. The tax due is a perpetual lien against the property served by the water on whose use the tax is imposed until the tax and any interest which may accrue thereon are paid. The county shall enforce the lien in the same manner as provided in NRS 361.565 to 361.730, inclusive, for property taxes.
5. A county may:
(a) Acquire and construct a new facility for the treatment of water for public or private use, or both.
(b) Finance the project by the issuance of general obligation bonds, medium-term obligations or revenue bonds or other securities issued pursuant to chapter 350 of NRS, or by installment purchase financing pursuant to NRS 350.800.
(c) Enter into an agreement with a public utility which provides that:
(1) Water treatment services provided by the facility will be made available to the public utility; or
(2) The public utility will operate and maintain the facility,
or both. An agreement entered into pursuant to this paragraph may extend beyond the terms of office of the members of the board of county commissioners who voted upon it.
6. A county may pledge any money received from the proceeds of a tax imposed pursuant to this section for the payment of general or special obligations issued for a new facility for the treatment of water for public or private use, or both. Any money pledged by the county pursuant to this subsection may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.
7. As used in this section, "public utility" has the meaning ascribed to it in NRS 704.020 and does not include the persons excluded by NRS 704.030.
Sec. 6 NRS 244A.256 is hereby amended to read as follows:
244A.256 1. A county may pledge any money received from the proceeds of taxes imposed pursuant to paragraph (a) of subsection 1 of NRS 244.3351 or paragraph (a) of subsection 1 of NRS 278.710 or pursuant to NRS 371.045 or, with the consent of the regional transportation commission, received from the proceeds of the tax imposed pursuant to NRS 377A.020, or any combination of money from those sources with revenue derived from the project financed with the proceeds of the obligations for whose payment those taxes are pledged, including any existing or future extensions or enlargements thereof, for the payment of general or special obligations issued for projects described in paragraph (a) of subsection 2 of NRS 244.33512, if the project for which the securities are issued could be directly funded with the taxes whose proceeds are pledged for the payment of the securities.
2. A county may pledge any money received from the proceeds of taxes imposed pursuant to paragraph (b) of subsection 1 of NRS 244.3351 or paragraph (b) of subsection 1 of NRS 278.710, or any combination of money from those taxes with revenue derived from the project financed with the proceeds of the obligations for whose payment those taxes are pledged, including any existing or future extensions or enlargements thereof, for the payment of general or special obligations issued for projects described in subsection 1 of NRS 244.33514, if the project for which the securities are issued could be directly funded with the taxes whose proceeds are pledged for the payment of the securities.
3. Any money pledged by the county pursuant to subsection 1 or 2 may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.
Sec. 7 NRS 268.448 is hereby amended to read as follows:
268.448 1. A city may pledge any money received pursuant to the provisions of NRS 244.3351 or any combination of that money with revenue derived from the project financed with the proceeds of the obligations for whose payment the money and revenue are pledged, including any existing or future extensions or enlargements thereof, for the payment of general or special obligations issued for projects described in paragraph (a) of subsection 2 of NRS 244.33512, if the project for which the obligations are issued could be directly funded with the tax whose proceeds are pledged for the payment of the securities.
2. Any money pledged by the city pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.
Sec. 8 NRS 268.806 is hereby amended to read as follows:
268.806 1. A city may pledge any money received from a tax imposed pursuant to NRS 268.804 or any combination of that money with revenue derived from the projects financed with the proceeds of the obligations for whose payment the money and revenue are pledged, with revenues of other revenue-producing projects of the city, including any existing or future extensions or enlargements of any of those projects, and with any revenues received by the city as grants [under] pursuant to an interlocal agreement with any other entity in the county in which the city is located, or otherwise, for payment of general or special obligations of the city issued for projects described in NRS 268.805.
2. Any money pledged by the city pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.
Sec. 9 NRS 365.545 is hereby amended to read as follows:
365.545 1. The proceeds of all taxes on fuel for jet or turbine-powered aircraft imposed pursuant to NRS 365.170 or 365.203 must be deposited in the account for taxes on fuel for jet or turbine-powered aircraft in the state general fund and must be allocated monthly by the department to the governmental entity which owns the airport at which the tax was collected, or if the airport is privately owned, to the county in which the airport is located.
2. The money so received must be used by the entity receiving it to pay the cost of:
(a) Transportation projects related to airports, including access on the ground to airports;
(b) Payment of principal and interest on notes, bonds or other obligations incurred to fund projects described in paragraph (a); or
(c) Any combination of those purposes.
3. Money so received may also be pledged for the payment of general or special obligations issued to fund projects described in paragraph (a) of subsection 2.
4. Any money pledged pursuant to subsection 3 may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.
Sec. 10 NRS 377A.100 is hereby amended to read as follows:
377A.100 1. Each ordinance providing for the issuance of any bond or security issued [under] pursuant to this chapter payable from the receipts of the tax for public mass transportation and construction of public roads may, in addition to covenants and other provisions authorized in the Local Government Securities Law, contain a covenant or other provision to pledge and create a lien upon the receipts of the tax or upon the proceeds of any bond or security pending their application to defray the cost of establishing or operating a public transit system, or both tax proceeds and security proceeds, to secure the payment of any bond or security issued [under] pursuant to this chapter.
2. Any money pledged to the payment of bonds or other securities pursuant to subsection 1 may be treated as pledged revenues of the project for the purposes of subsection [3] 5 of NRS 350.020.