Assembly Bill No. 576-Committee on Government Affairs
(On Behalf of the Office of the State Treasurer)
June 9, 1997
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Referred to Committee on Government Affairs
SUMMARY--Makes various changes concerning state securities. (BDR 30-638)
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 state securities; allowing certain agencies authorized to issue bonds to delegate the authority to sign contracts or accept binding bids for bonds to the state treasurer under certain circumstances; transferring certain duties relating to the issuance and redemption of state securities from the state board of examiners to the state board of finance; repealing certain requirements relating to the public sale of state 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 349 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The commission may, before any sale of bonds, delegate to the treasurer the authority to sign a contract for the purchase of the bonds or to accept a binding bid for the bonds subject to the requirements specified by the commission concerning:
(a) The rate of interest on the bonds;
(b) The dates on which and the prices at which the bonds may be called for redemption before maturity;
(c) The price at which the bonds will be sold; and
(d) The principal amount of the bonds and the amount of principal maturing in any particular year.
2. All terms of the bonds other than:
(a) The rate of interest;
(b) The dates and prices for the redemption of the bonds;
(c) The price for the sale of the bonds;
(d) The principal amount of the bonds; and
(e) The requirements for the principal maturing in particular years,
must be approved by the commission before the bonds are delivered.
3. The final rate of interest, dates and prices of redemption, price for the sale of the bonds, principal amount and the requirements for the principal amount maturing in particular years are not required to be approved by the commission if each of those terms complies with the requirements specified by the commission before the contract for the purchase of the bonds is signed or the bid for the bonds is accepted.
Sec. 2. NRS 349.150 is hereby amended to read as follows:
349.150 NRS 349.150 to 349.364, inclusive, and section 1 of this act may be cited as the State Securities Law.
Sec. 3. NRS 349.270 is hereby amended to read as follows:
349.270 1. [Subject] If securities are sold publicly and subject to the right of the commission to reject any and all bids, the securities [shall] must be sold to the responsible bidder making the best bid.
2. If there are two or more equal bids for the securities and such equal bids are the best bids received and not less than the principal amount of the securities and accrued interest, except for any permitted discount, the commission shall determine which bid [shall] must be accepted.
Sec. 4. NRS 350A.030 is hereby amended to read as follows:
350A.030 "Board" means the state board of [examiners.] finance.
Sec. 5. NRS 233C.225 is hereby amended to read as follows:
233C.225 1. The commission for cultural affairs shall determine annually the total amount of financial assistance it will grant in that calendar year pursuant to NRS 233C.200 to 233C.230, inclusive. The commission shall notify the state board of examiners and the state board of finance of the total amount to be granted. In no case may the amount to be granted exceed $2,000,000 per year.
2. After receiving the notice given pursuant to subsection 1, the state board of [examiners] finance shall issue general obligation bonds of the State of Nevada in the amount necessary to generate the amount to be granted by the commission and to pay the expenses related to the issuance of the bonds. The expenses related to the issuance of bonds pursuant to this section must be paid from the proceeds of the bonds, and must not exceed 2 percent of the face amount of the bonds sold. No public debt is created, within the meaning of section 3 of article 9 of the constitution of the State of Nevada, until the issuance of the bonds.
3. The proceeds from the sale of the bonds authorized by this section, after deducting the expenses relating to the issuance of the bonds, must be deposited with the state treasurer and credited to the fund for the preservation and promotion of cultural resources.
4. The provisions of the State Securities Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant to this section.
5. The amount of financial assistance granted pursuant to this section must not exceed $20,000,000 in any 10-year period. The total face amount of the bonds issued pursuant to this section must not exceed the sum of:
(a) The amount of financial assistance granted pursuant to this section; and
(b) The amount necessary to pay the expenses related to the issuance of the bonds, which must not exceed 2 percent of the face amount of the bonds sold.
Sec. 6. NRS 408.273 is hereby amended to read as follows:
408.273 The state board of [examiners] finance shall, when so requested by the board of directors of the department of transportation, issue special obligation bonds of the State of Nevada to provide money to enable the department of transportation to complete pending and currently projected highway construction projects, in an amount specified in the request. The bonds may be issued at one time or from time to time, and must be issued in accordance with the State Securities Law. These bonds must be secured by a pledge of the appropriate federal highway grants payable to the state and by taxes which are credited to the state highway fund, and must mature within not more than 5 years from their date.
Sec. 7. NRS 445A.155 is hereby amended to read as follows:
445A.155 1. The director may, with the approval of the department of administration, authorize the state treasurer to issue, sell or deliver general obligation bonds of the state or revenue bonds if viable to support the purposes of the account.
2. If the director authorizes the issuance of those bonds, the state treasurer may:
(a) Sue and be sued to establish or enforce any right arising out of a project receiving financial assistance or of any state securities issued pursuant to this authorization;
(b) Acquire and hold municipal securities, and exercise all of the rights of holders of those securities;
(c) Sell or otherwise dispose of municipal securities and assets acquired in connection with those securities, unless limited by any agreement which relates to the securities;
(d) Make contracts and execute all necessary or convenient instruments;
(e) Accept grants of money from the Federal Government, the state, any agency or political subdivision, or any other person;
(f) Adopt regulations relating to projects receiving financial assistance and the administration of those projects;
(g) Employ for himself or for any municipality or interstate agency, any necessary legal, fiscal, engineering and other expert services in connection with projects receiving financial assistance and with the authorization, sale and issuance of state securities and municipal securities;
(h) Enter into agreements and arrangements consistent with NRS 445A.060 to 445A.160, inclusive, concerning the issuance of state securities and the purchase of municipal securities; and
(i) Undertake other matters which he determines to be necessary or desirable to accomplish the purposes of NRS 445A.060 to 445A.160, inclusive.
3. Before any bonds are issued pursuant to this section, the state board of [examiners] finance must certify that sufficient revenue will be available in the account to pay the interest and installments of principal as they become due.
4. The money in the account that is available for the payment of the interest and installments of principal on the bonds must be pledged as the primary source for the payment of the bonds. The full faith and credit of the state may be pledged.
Sec. 8. Section 1 of chapter 361, Statutes of Nevada 1995, at page 907, is hereby amended to read as follows:
Section 1. 1. At the general election to be held in the State of Nevada in 1996, there must be submitted to the voters of the state, in the manner prescribed by chapter 349 of NRS, a proposal to issue general obligation bonds of the state to provide grants to local governments and the department of transportation to carry out projects for the control of erosion and the restoration of natural watercourses in the Lake Tahoe Basin in an amount of not more than $20,000,000.
2. If the proposal is carried, the state board of [examiners] finance shall issue general obligation bonds of the State of Nevada in a total face amount of not more than $20,000,000. The bonds may be issued at one time or from time to time. The expenses related to the issuance of bonds pursuant to this section must be paid from the proceeds of the bonds, and must not exceed 2 percent of the face amount of the bonds sold.
3. The provisions of the State Securities Law, contained in chapter 349 of NRS, apply to the issuance of bonds pursuant to this section.
Sec. 9. Section 11 of chapter 619, Statutes of Nevada 1995, at page 2337, is hereby amended to read as follows:
Sec. 11. The state board of [examiners] finance shall issue general obligation bonds of the State of Nevada in the face amount of not more than $79,207,558 for the following capital improvements summarized in this section. This amount is allocated to projects numbered and described in the executive budget for the fiscal years 1995-1996 and 1996-1997 or otherwise described as follows:
Description Project No. Amount
1. Juvenile treatment facility, division of child and family services, Las Vegas 95-C2 $8,787,261
2. Addition to Lakes Crossing, division of MH / MR, Sparks 95-C3 $3,662,687
3. Conversion of NWCC to a male facility and construction of a 125-bed housing unit, department of prisons, Carson City 95-G3 $7,350,733
4. Phase V, WNCC, UCCSN, Carson City 95-C6 $14,076,946
9. Completion of classroom and student center, NNCC, UCCSN, Elko 95-L13 $652,898
Sec. 10. Section 23 of chapter 619, Statutes of Nevada 1995, at page 2342, is hereby amended to read as follows:
Sec. 23. The state board of [examiners,] finance, in its capacity as the general obligation bond commission and to the extent that money is available, shall pay the expenses related to the issuance of general obligation bonds approved by the 68th session of the Nevada legislature from the proceeds of those bonds.
Sec. 11. NRS 349.264, 349.266, 349.268 and 349.272 are hereby repealed.
LEADLINES OF REPEALED SECTIONS
349.264 Notice of public sale: Requirements.
349.266 Notice of public sale: Contents.
349.268 Bids: Written and sealed; amount of deposit.
349.272 Return and forfeiture of deposits; acceptance of next best bid; readvertisement or private sale.