Assembly Bill No. 499

Assembly Bill No. 499-Assemblymen Berman, Segerblom, Hettrick, Manendo, Lee, Collins and Chowning

May 16, 1997
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Referred to Committee on Transportation

SUMMARY--Authorizes department of transportation to contract for private establishment of limited number of toll roads. (BDR 35-1463)

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 the department of transportation to contract for the private establishment of a limited number of 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:

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 6, inclusive, of this act.
Sec. 2. As used in this chapter, unless the context otherwise requires, the words and terms defined in sections 3 and 4 of this act have the meanings ascribed to them in those sections.
Sec. 3. "Board" means the board of directors of the department of transportation.
Sec. 4. "Director" means the director of the department of transportation.
Sec. 5. 1. Upon approval of the board, the director may contract with a person to construct, improve, maintain, operate, or any combination thereof, a particular toll road or toll bridge. The term of such a contract must not exceed 40 years. Such a contract must include a provision:
(a) Specifying whether the transference of ownership of the project will occur before the road or bridge is open for public use and whether an operational franchise will be granted to the person;
(b) Specifying which party to the contract is responsible for the design and development of the project, for the maintenance of the project and for police service;
(c) If applicable, authorizing the person to lease for the period of the operational franchise, at nominal cost, the air space over the toll road or toll bridge;
(d) If applicable, authorizing the person to set and impose tolls for use of the road or bridge and require that over the term of the contract the toll revenues be applied to payment of the costs for the capital outlay, the costs associated with operations, toll collections and the administration of the facility and a stated reasonable return on investment to the person. Such a provision must require that any excess earnings be paid to the director for deposit in the state highway fund for use within the county or counties in which the toll road or bridge is located; and
(e) If applicable, authorizing the person to charge and collect reasonable civil fines upon a failure to pay an applicable toll.
2. The director may enter into such a contract 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 contract includes 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.
3. The toll road or toll bridge may be:
(a) A new road or bridge that is built within an existing state right of way; or
(b) An existing road or bridge to which major improvements will be added,
or any combination thereof.
4. In determining the manner in which each such project will be accomplished, the director is encouraged to:
(a) Consider a variety of methods to demonstrate the feasibility of building privately financed toll roads in this state; and
(b) If the project will not be financed entirely from private sources, select the proposal that will require the least amount of public financial support.
5. The director shall not:
(a) 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 routine maintenance of the road or bridge;
(b) Authorize or facilitate the creation of a project pursuant to the provisions of this chapter, other than a bridge or tunnel, unless an alternative route without charge is reasonably available; or
(c) Authorize, pursuant to the provisions of this chapter, more than a total of four projects for the establishment of toll roads or toll bridges or the conversion of existing roads or bridges.
Sec. 6. 1. The director may take such actions as are necessary to secure federal financial support for the project.
2. With the approval of the board, the director may 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 a portion that does not exceed 50 percent of the total cost of such a project. The bonds or other obligations may be issued at one time or from time to time. The provisions of chapter 349 of NRS apply to the issuance of the bonds or other obligations pursuant to this chapter.
3. If public bonds or other obligations are used to support such a project, the director shall include in the contract a statement of the manner in which the debt is to be paid from the revenue produced from the tolls charged for use of the road or bridge.