(Reprinted with amendments adopted on April 3, 2003)

 

Assembly Bill No. 85–Committee on
Government Affairs

 

(On Behalf of the Department of Business
and Industry, Director’s Office)

 

February 13, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing revenue bonds for industrial development. (BDR 30‑469)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to revenue bonds for industrial development; revising the prerequisites to the financing of certain proposed projects; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 349.590 is hereby amended to read as follows:

1-2  349.590  Except as otherwise provided in NRS 349.640, before

1-3  financing a project pursuant to subsection 2 of NRS 349.580, the

1-4  Director and the Board [must also:] shall, or before financing a

1-5  project pursuant to NRS 349.595, the Director shall:

1-6  1.  Determine the total amount of money necessary to be

1-7  provided by the Director for financing the project.

1-8  2.  Except as otherwise provided in this subsection, receive a

1-9  5-year operating history from the contemplated lessee, purchaser or

1-10  other obligor or from any other enterprise that will make or

1-11  guarantee the payment of the principal, premium, if any, and interest

1-12  on any bonds issued. An operating history is not required if the

1-13  bonds:

2-1  (a) Are to be sold only to qualified institutional buyers, as

2-2  defined in Rule 144A of the Securities and Exchange Commission,

2-3  17 C.F.R. § 230.144A, in minimum denominations of at least

2-4  $100,000; or

2-5  (b) Will receive a rating within one of the top four rating

2-6  categories of Moody’s Investors Service, Inc., Standard and Poor’s

2-7  Rating Services or Fitch IBCA, Inc.

2-8  3.  Consider whether the contemplated lessee, purchaser, other

2-9  obligor or other enterprise that will make or guarantee the payment

2-10  of the principal, premium, if any, and interest on any bonds issued

2-11  has received within the 12 months preceding the date of the findings

2-12  of the Director, or then has or has not in effect, a rating within one

2-13  of the top four rating categories of Moody’s Investors Service, Inc.,

2-14  Standard and Poor’s Ratings Services or Fitch IBCA, Inc.

2-15      4.  Identify any existing facilities of a like nature within the

2-16  county or city in which the project will be located and consider the

2-17  applicability of paragraph (b) of subsection 1 of NRS 349.565.

2-18      5.  Consider the extent to which the project is affected by any

2-19  federal, state or local governmental action, activity, program or

2-20  development.

2-21      6.  Consider whether the lessee, purchaser, other obligor or

2-22  other enterprise of the project has maintained facilities appropriate

2-23  to the community in this state for 10 years or longer.

2-24      Sec.  2.  NRS 349.595 is hereby amended to read as follows:

2-25      349.595  1.  The Director may provide financing for a project

2-26  pursuant to this section if:

2-27      (a) [The financing is limited in amount and purpose to the

2-28  payment of the costs associated with:

2-29          (1) The acquisition, refurbishing, replacement and

2-30  installation of equipment for the project; and

2-31          (2) The issuance of bonds pursuant to this section;

2-32      (b)] The total amount of the bonds issued pursuant to this

2-33  section for [a particular] the project does not exceed [$2,500,000;

2-34      (c)] $3,000,000;

2-35      (b) The Director determines that the bonds will:

2-36          (1) Be sold only to qualified institutional buyers, as defined

2-37  in Rule 144A of the Securities and Exchange Commission,

2-38  17 C.F.R. § 230.144A, in minimum denominations of at least

2-39  $100,000; or

2-40          (2) Receive a rating within one of the top four rating

2-41  categories of Moody’s Investors Service, Inc., Standard and Poor’s

2-42  Rating Services or Fitch IBCA, Inc.;

2-43      [(d)] (c) The Director makes the findings set forth in

2-44  paragraphs (a) [to (e), inclusive,] , (b), (d), (e), (g) and (h) of

2-45  subsection 2 of NRS 349.580[, and the governing body of the city

3-1  or county where the project is to be located approves the findings of

3-2  the Director;] ;

3-3  (d) The Director provides notice of the request for the

3-4  financing of the project to the governing body of the city or county

3-5  in which the project is proposed to be located, and has not received

3-6  a copy of a resolution from the governing body objecting to the

3-7  project within 25 business days after the notice is provided; and

3-8  (e) The Director complies with the provisions of NRS 349.590

3-9  and the guidelines established pursuant to subsection 2.

3-10      2.  The Board shall establish guidelines for the provision of

3-11  financing for a project pursuant to this section.

3-12      Sec.  3.  This act becomes effective upon passage and approval.

 

3-13  H