Senate Bill No. 140–Senator Townsend

 

CHAPTER..........

 

AN ACT relating to municipal obligations; revising provisions governing the acquisition by a county or this state of municipal obligations issued by a water authority organized as a political subdivision created by cooperative agreement; 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 244A.0347 is hereby amended to read as

follows:

    244A.0347  “Municipality” means any city, town, school

district, library district, consolidated library district, fire protection

district, district for a fire department, park district, general

improvement district organized pursuant to chapter 318 of NRS,

water district organized pursuant to a special act or water authority

organized as a political subdivision created by cooperative

agreement . [whose members include at least the two largest

municipal retail water purveyors in the county.]

    Sec. 2.  NRS 350A.152 is hereby amended to read as follows:

    350A.152  1.  Before state securities may be issued pursuant to

this chapter for the purpose of acquiring bonds which are issued by

a water authority organized as a political subdivision created by

cooperative agreement[:] that operates in all or a portion of a

county whose population is 400,000 or more:

    (a) The water authority must obtain approval for the bonds from

the debt management commission of each county in which any

member of the water authority that is obligated to make payments

on the bonds of the water authority is located; and

    (b) The members of the water authority must contract with the

water authority to make payments from the revenues of the

members’ water systems that, in the aggregate, are fully sufficient to

pay those bonds as they become due. If the water revenues of any

such member are insufficient to pay that member’s share of the

amount due on the bonds, the member shall pay the deficiency out

of money available for that purpose in the general fund of the

member. If the money in the general fund of the member is

insufficient to pay fully any such deficiency promptly, the member

shall levy a general ad valorem tax on all taxable property within the

member’s boundaries at a rate necessary to produce revenue in an

amount sufficient to pay that member’s share of the payments due

on the bonds.

    2.  Notwithstanding the provisions of paragraph (a) of

subsection 1, the obligations of the members of the water authority

to the water authority and the State of Nevada as a result of the

acquisition of bonds of the water authority pursuant to this chapter

do not constitute indebtedness of the members within the meaning

of any constitutional, charter or statutory limitation or other

provisions restricting the incurrence of any debt.

    3.  A property tax levied pursuant to this section:

    (a) Shall be considered to have been levied for the payment of

bonded indebtedness for the purposes of NRS 361.463.

    (b) Is exempt from the limitations on property taxes contained in

chapter 354 of NRS.

    Sec. 3.  This act becomes effective on July 1, 2003.

 

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