Assembly Bill No. 669

Assembly Bill No. 669-Committee on Ways and Means

CHAPTER

629

AN ACT relating to the University and Community College System of Nevada; authorizing certain capital projects at the campuses in Las Vegas and Reno; authorizing the issuance of general obligations of the state to pay the cost of the projects; pledging certain revenues as additional security for those obligations; and providing other matters properly relating thereto.

[Approved July 16, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 463.385 is hereby amended to read as follows:
463.3851. In addition to any other license fees and taxes imposed by this chapter, there is hereby imposed upon each slot machine operated in this state an annual excise tax of $250. If a slot machine is replaced by another, the replacement is not considered a different slot machine for the purpose of imposing this tax.
2. The commission shall:
(a) Collect the tax annually on or before June 20, as a condition precedent to the issuance of a state gaming license to operate any slot machine for the ensuing fiscal year beginning July 1, from a licensee whose operation is continuing.
(b) Collect the tax in advance from a licensee who begins operation or puts additional slot machines into play during the fiscal year, prorated monthly after July 31.
(c) Include the proceeds of the tax in its reports of state gaming taxes collected.
3. The commission shall pay over the tax as collected to the state treasurer to be deposited to the credit of the state distributive school account in the state general fund, and the capital construction fund for higher education and the special capital construction fund for higher education, which are hereby created in the state treasury as special revenue funds, in the amounts and to be expended only for the purposes specified in this section.
4. During each fiscal year the state treasurer shall deposit the tax paid over to him by the commission as follows:
(a) The first $5,000,000 of the tax in the capital construction fund for higher education;
(b) Twenty percent of the tax in the special capital construction fund for higher education; and
(c) The remainder of the tax in the state distributive school account in the state general fund.
5. There is hereby appropriated from the balance in the special capital construction fund for higher education on July 31 of each year the amount necessary to pay the principal and interest due in that fiscal year on the bonds issued pursuant to section 5 of chapter 679, Statutes of Nevada 1979, as amended by chapter 585, Statutes of Nevada 1981, at page 1251, the bonds authorized to be issued by section 2 of chapter 643, Statutes of Nevada 1987, the bonds authorized to be issued by section 2 of chapter 614, Statutes of Nevada 1989, [and] the bonds authorized to be issued by section 2 of chapter 718, Statutes of Nevada 1991 [.] , and the bonds authorized to be issued by section 2 of this act. If in any year the balance in that fund is not sufficient for this purpose, the remainder necessary is hereby appropriated on July 31 from the capital construction fund for higher education. The balance remaining unappropriated in the capital construction fund for higher education on August 1 of each year and all amounts received thereafter during the fiscal year must be transferred to the state general fund for the support of higher education. If bonds described in this subsection are refunded and if the amount required to pay the principal of and interest on the refunding bonds in any fiscal year during the term of the bonds is less than the amount that would have been required in the same fiscal year to pay the principal of and the interest on the original bonds if they had not been refunded, there is appropriated to the University and Community College System of Nevada an amount sufficient to pay the principal of and interest on the original bonds, as if they had not been refunded. The amount required to pay the principal of and interest on the refunding bonds must be used for that purpose from the amount appropriated. The amount equal to the saving realized in that fiscal year from the refunding must be used by the University and Community College System of Nevada to defray, in whole or in part, the expenses of operation and maintenance of the facilities acquired in part with the proceeds of the original bonds.
6. After the requirements of subsection 5 have been met for each fiscal year, when specific projects are authorized by the legislature, money in the capital construction fund for higher education and the special capital construction fund for higher education must be transferred by the state controller and the state treasurer to the state public works board for the construction of capital improvement projects for the University and Community College System of Nevada, including , but not limited to , capital improvement projects for the community colleges of the University and Community College System of Nevada. As used in this subsection, "construction" includes, but is not limited to, planning, designing, acquiring and developing a site, construction, reconstruction, furnishing, equipping, replacing, repairing, rehabilitating, expanding and remodeling. Any money remaining in either fund at the end of a fiscal year does not revert to the state general fund but remains in those funds for authorized expenditure.
7. The money deposited in the state distributive school account in the state general fund under this section must be apportioned as provided in NRS 387.030 among the several school districts of the state at the times and in the manner provided by law.
8. The board of regents of the University of Nevada may use any money in the capital construction fund for higher education and the special capital construction fund for higher education for the payment of interest and amortization of principal on bonds and other securities, whether issued before, on or after July 1, 1979, to defray in whole or in part the costs of any capital project authorized by the legislature.
Sec. 2. 1. The Board of Regents of the University of Nevada shall issue not more than $55,000,000 in face amount of general obligation bonds of the State of Nevada to provide money necessary to accomplish the purposes of this act. The bonds may be issued at one time or from time to time.
2. The Board of Regents of the University of Nevada, on behalf and in the name of the State of Nevada, may, consistent with the provisions of the State Securities Law:
(a) Finance the improvement, refurnishing and renovation of the Thomas and Mack Center and Sam Boyd Stadium for the University of Nevada, Las Vegas, including equipment, furnishings and appurtenances therefor by issuing general obligation bonds and other general obligation securities of the state in a principal amount which does not exceed $33,000,000.
(b) Finance the improvement, refurnishing and renovation of buildings and capital improvements for the University of Nevada, Reno, including equipment, furnishings and appurtenances therefor by issuing general obligation bonds and other general obligation securities of the state in a principal amount which does not exceed $22,000,000.
3. The Board of Regents of the University of Nevada may acquire and construct the projects designated in subsection 2 and issue state securities to finance the costs of those projects in a total principal amount not to exceed $55,000,000. For the purposes of this act, the costs of the project may include interest on the bonds for the period estimated by the Board of Regents to effect the project plus 2 years. The Board of Regents may:
(a) Cooperate with other public and private entities in financing the projects specified in subsection 2; and
(b) Increase the amount of money expended on the projects specified in subsection 2 to the extent money is made available for that purpose from a source other than the state general obligation securities authorized to be issued by this act.
4. If bonds or other securities are issued pursuant to this act, the faith of the State of Nevada is hereby pledged that the tax imposed by subsection 1 of NRS 463.385 and credited to the capital construction fund for higher education and the special capital construction fund for higher education pursuant to subsection 5 of this section will not be repealed or diminished so as to impair the payment of principal or interest upon those securities.
5. Subject to the limitations as to maximum principal amount set forth in subsections 1, 2 and 3, the Board of Regents of the University of Nevada may issue to defray the cost of the projects designated in subsection 2, or any part of the projects, at any time or from time to time general obligation securities of the state, which are payable from ad valorem taxes levied annually in an amount sufficient to pay the interest on and the principal of the securities as they become due, except to the extent other money is lawfully made available therefor. The proceeds of any such taxes must be appropriated for the payment of those securities, and this appropriation must neither be repealed nor the taxes postponed or diminished, except to the extent that other money is used for their payment, until the principal and interest of those securities have been wholly paid. The payment of those securities must be additionally secured by a pledge of the gross revenues credited to the special capital construction fund for higher education and the capital construction fund for higher education, and those securities must be paid from the revenues in either or both of those accounts as the interest on, any prior premiums of redemption due in connection with, and the principal of the securities become due.
6. As provided in subsection 4 of NRS 349.304, any interest or other gain from the temporary investment of proceeds of securities pending their expenditure on the project must be accounted for in an account or accounts for defraying, and must be used to defray the cost of the project, or accounted for in a reserve account or reserve accounts therefor, until sufficient money has been encumbered to assure the completion of the project.
7. Any securities issued pursuant to this section may be issued in such a manner at, above or below par, without limitation as to interest rate, effective interest rate or any discount, and may be sold by the board of regents at public sale in accordance with the State Securities Law or at private sale.
8. This section does not prevent the Board of Regents of the University of Nevada, from funding, refunding or reissuing any outstanding general obligation securities of the state issued by the Board of Regents on behalf of the state for the benefit of the University and Community College System of Nevada, and payable from ad valorem taxes, whose payment is additionally secured by a pledge of proceeds of excise tax credited to those two capital accounts, at any time as provided in the State Securities Law.
9. Any securities issued pursuant to this section must be executed as provided in the State Securities Law in accordance with NRS 349.282 and must be countersigned by the Chairman of the Board of Regents and the Chancellor and Treasurer of the University of Nevada in accordance with NRS 349.284.
Sec. 3. The powers conferred by this act are in addition to and supplemental to, and the limitations imposed by those sections do not affect the powers conferred by, any other law, general or special. Securities may be issued under this act without regard to the procedure required by any other such law except as otherwise provided in this act or in the University Securities Law. Insofar as the provisions of this act are inconsistent with the provisions of any other law, general or special, the provisions of this act control.
Sec. 4. The legislature intends that this act, being necessary to secure and preserve the public health, safety, convenience and welfare, be liberally construed to effect its purposes.
Sec. 5. If any provision of this act or the application thereof to any person, thing or circumstance is held invalid, that invalidity does not affect the provisions or application of this act that can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable.
Sec. 6. This act becomes effective on July 1, 1997.
________