(On Behalf of the Budget Division of the
Department of Administration)
March 20, 1997
____________
Referred to Committee on Finance
SUMMARY--Authorizes leases and installment contracts for purchase of certain equipment by agencies of executive department. (BDR S-1452)
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 financial administration; authorizing leases and installment contracts which extend in duration beyond the 1997-99 biennium for purchase of certain equipment by agencies of the executive department; 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 1. Notwithstanding the provisions of NRS 353.260, an agency of the executive department may enter into a contract for equipment, including, but not limited to, a lease or installment purchase agreement, which extends in duration beyond the 1997-99 biennium and thereby constitutes a debt of the State of Nevada except that the total amount of all portions of all such contracts which will not be paid during the 1997-99 biennium must not exceed $19,234,000. Money for the payment of the debt incurred pursuant to this section will be provided for in the annual tax imposed for the payment of the obligations of the State of Nevada from the consolidated bond interest and redemption fund or by other legislative act. The provisions of NRS 349.238 to 349.248, inclusive, apply to payment of the debt. Interest on the debt must be paid at least semiannually and the principal must be paid within 20 years after the date of passage of this act.
2. Before entering into a contract pursuant to this section, an agency must submit, for approval, a copy of the contract to the chief of the budget division of the department of administration. The chief shall not withhold approval of the contract unless the amount of the contract would result in a total debt of the State of Nevada that exceeds $19,234,000.
Sec. 2. This act becomes effective on July 1, 1997.