Senate Bill No. 290

Senate Bill No. 290-Committee on Government Affairs

(On Behalf of Clark County)

April 14, 1997
____________

Referred to Committee on Government Affairs

SUMMARY--Authorizes metropolitan police committee on fiscal affairs to issue medium-term obligations under certain circumstances. (BDR 30-206)

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; authorizing a metropolitan police committee on fiscal affairs to issue medium-term obligations under certain circumstances; exempting the committee from the requirement of obtaining approval from the executive director of the department of taxation before issuing a medium-term obligation for certain lease-purchase agreements; 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 NRS 350.087 is hereby amended to read as follows:
350.0871. If the public interest requires a medium-term obligation, the governing body of any local government, by a resolution adopted by two-thirds of its members, may authorize a medium-term obligation. For the purposes of the issuance of a medium-term obligation pursuant to section 4 of this act, a metropolitan police committee on fiscal affairs shall be deemed the governing body of a local government.
2. The resolution must contain:
(a) A finding by the governing body that the public interest requires the medium-term obligation; and
(b) A statement of the facts upon which the finding is based.
[2. Before]
3. Except as otherwise provided in subsection 4, before the adoption of any such resolution, the governing body shall publish notice of its intention to act thereon in a newspaper of general circulation for at least one publication. No vote may be taken upon the resolution until 10 days after the publication of the notice. The cost of publication of the notice required of an entity is a proper charge against its general fund.
4. If such a resolution will be adopted by a metropolitan police committee on fiscal affairs, the sheriff of the county in which the metropolitan police department is located shall publish the notice required pursuant to subsection 3.
Sec. 2 NRS 350.089 is hereby amended to read as follows:
350.089Except as otherwise provided in NRS 496.155 [:] and section 4 of this act:
1. Upon the adoption of a resolution for a medium-term obligation, as provided in NRS 350.087, by a local government, a certified copy thereof must be forwarded to the executive director of the department of taxation. As soon as is practicable, the executive director of the department of taxation shall, after consideration of the tax structure of the local government concerned and the probable ability of the local government to repay the requested medium-term obligation, approve or disapprove the resolution in writing to the governing board. No such resolution is effective until approved by the executive director of the department of taxation. The written approval of the executive director of the department of taxation must be recorded in the minutes of the governing board.
2. If the executive director of the department of taxation does not approve the resolution for the medium-term obligation, the governing board of the local government may appeal the executive director's decision to the Nevada tax commission.
Sec. 3 NRS 350.091 is hereby amended to read as follows:
350.0911. Whenever the governing body of any local government is authorized to enter into a medium-term obligation as provided in NRS 350.089 [,] or section 4 of this act, the governing body may issue, as evidence thereof, negotiable notes, leases, other evidence of a transaction described in NRS 350.800, or short-time negotiable bonds.
2. Except as otherwise provided in subsection 5 of NRS 496.155, the negotiable notes or bonds:
(a) Must mature not later than 10 years after the date of issuance.
(b) Must bear interest at a rate or rates which do not exceed by more than 3 percent the Index of Twenty Bonds which was most recently published before the bids are received or a negotiated offer is accepted.
(c) May, at the option of the local government, contain a provision which allows redemption of the notes or bonds before maturity, upon such terms as the governing body determines.
3. If the maximum term of the financing is more than 5 years, the term may not exceed the estimated useful life of the asset to be purchased with the proceeds from the financing.
Sec. 4 Chapter 280 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Upon the adoption of a resolution pursuant to NRS 350.087, the committee may issue a medium-term obligation to purchase capital equipment or enter into a lease-purchase agreement for capital equipment.
2. The committee is not required to comply with the provisions of NRS 350.089 if it issues a medium-term obligation for a lease-purchase agreement for capital equipment.
Sec. 5 This act becomes effective upon passage and approval.