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Senate Bill No. 37-Senator Adler

January 29, 1997
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Referred to Committee on Transportation

SUMMARY--Authorizes certain school districts to permit use of school buses to transport persons other than pupils. (BDR 32-71)

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 school districts; authorizing the board of trustees of certain districts to permit the use of a school bus belonging to the district to transport persons other than pupils over fixed routes; 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 NRS 361.159 is hereby amended to read as follows:
361.159 1. Except as otherwise provided in subsection 3, when personal property, or a portion of personal property, which for any reason is exempt from taxation is leased, loaned or otherwise made available to and used by a natural person, association or corporation in connection with a business conducted for profit, the leasehold interest, possessory interest, beneficial interest or beneficial use of any such lessee or user of the property is subject to taxation to the extent the:
(a) Portion of the property leased or used; and
(b) Percentage of time during the fiscal year that the property is leased to the lessee or used by the user,
can be segregated and identified. The taxable value of the interest or use must be determined in the manner provided in subsection 3 of NRS 361.227.
2. Taxes must be assessed to lessees or users of exempt personal property and collected in the same manner as taxes assessed to owners of other personal property, except that taxes due under this section do not become a lien against the personal property. When due, the taxes constitute a debt due from the lessee or user to the county for which the taxes were assessed and if unpaid are recoverable by the county in the proper court of the county.
3. The provisions of this section do not apply to personal property:
(a) Used in vending stands operated by blind persons under the auspices of the bureau of services to the blind of the rehabilitation division of the department of employment, training and rehabilitation.
(b) Owned by a public airport.
(c) Used by a person who has entered into a contract with the board of trustees of a school district pursuant to the provisions of section 2 of this act.
Sec. 2 Chapter 392 of NRS is hereby amended by adding thereto a new section to read as follows:
1. If a school bus belonging to a school district that is located in a county whose population is less than 100,000 is not needed by the district for the transportation of pupils during a day or any portion of a day, the board of trustees of the school district may, by contract, permit a person specified in the contract to use the bus to transport any person or group of persons other than pupils over fixed transit routes. Such a bus may not be used as a charter bus or tour bus.
2. A person who enters into a contract with a board of trustees of a school district pursuant to subsection 1 shall obtain such insurance relating to the operation of the school bus as the board of trustees may require.
3. Any money received by the board of trustees of a school district pursuant to the provisions of this section may be retained by that board and must be accounted for separately by the district. The money may be used for any purpose for which any other money received by the district may be used.
Sec. 3 NRS 392.320 is hereby amended to read as follows:
392.320 1. As used in this section, "vehicles" means the school buses, station wagons, automobiles and other motor or mechanically propelled vehicles required by the school district for the transportation of pupils.
2. The board of trustees of a school district shall use transportation funds of the school district for:
(a) The purchase, rent, hire and use of vehicles, and for necessary equipment, supplies and articles therefor.
(b) Necessary repairs of vehicles to keep them in safe and workable condition.
(c) The employment and compensation of capable and reliable drivers of vehicles and other employees necessary for the transportation of pupils and other authorized persons.
(d) [Insuring] Except as otherwise provided in section 2 this act, insuring vehicles owned, rented, hired, used or operated by or under the direction or supervision of the board of trustees. [Such insurance shall:] The insurance must:
(1) Be of such an amount as the board of trustees may be able to obtain and the regulations of the state board [of education] require as sufficient to protect the board of trustees, the pupils being transported, and their parents, guardians or legal representatives from loss or damage resulting from acts covered by the insurance.
(2) Especially insure against loss and damage resulting from or on account of injury or death of any pupil being transported, caused by collision or any accident during the operation of any such vehicle.
Sec. 4 This act becomes effective on July 1, 1997.

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