SB415_EN

Senate Bill No. 415–Committee on Finance

CHAPTER..........

AN ACT relating to taxes on estates; removing certain restrictions on the use of money in the Estate Tax Account in the Endowment Fund of the University and Community College System of Nevada; requiring the Board of Regents of the University of Nevada to make certain transfers of money from the Account to the State General Fund; 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 375A.705 is hereby amended to read as

follows:

375A.705 1. All money received by the Board of Regents of

the University of Nevada pursuant to paragraph (b) of subsection 1

of NRS 375A.700 must be accounted for separately in the

Endowment Fund of the University and Community College System

of Nevada.

2. The money in the Estate Tax Account must be invested

pursuant to the same investment policies as the other money in the

Endowment Fund is invested. All interest and income earned on the

money in the Account must be credited to the Account.

3. [The money in the Estate Tax Account must only be

expended as follows:

(a)] The Board of Regents of the University of Nevada may

[spend $2,500,000 of the money in the Account each year.

(b) Until the principal in the Account is sufficient to yield

income of $2,500,000 per year, all revenue deposited in the Account

in excess of the $2,500,000 allocated pursuant to paragraph (a) must

remain in the Account.

the Board of Regents of the University of Nevada may spend any

money in the Account which is not part of the principal necessary to

yield income of $2,500,000 per year.

(d) Any money expended pursuant to the provisions of

paragraph (a) or (c) must be approved] , upon approval by the

Legislature when in regular session or by the Interim Finance

Committee when the Legislature is not in regular session[.] ,

expend any money in the Estate Tax Account.

Sec. 2. 1. The Board shall, on a monthly basis, transfer

money from the Account to the State General Fund in an amount up

to the level of expenditures approved in the final budget of the

System for the applicable fiscal year. Except as otherwise provided

in this subsection and subsection 2, the amount of money transferred

each month must be:

(a) For Fiscal Year 2003-2004, $3,819,713, until the total

amount of money transferred for all 12 months in the fiscal year is

$45,836,551.

(b) For Fiscal Year 2004-2005, $3,616,525, until the total

amount of money transferred for all 12 months in the fiscal year is

$43,398,297.

A monthly transfer described in this section must not be made to the

extent that making the transfer would result in a negative balance in

the Account.

2. If the amount of money in the Account is not, for a given

month, sufficient to allow the full amount of the transfer scheduled

for that month, as described in subsection 1, any money that

subsequently becomes available in the Account must first be applied

to complete the full amount of the transfer scheduled for that month,

as described in subsection 1.

3. If, at the end of Fiscal Year 2004-2005, the total amount

transferred from the Account to the State General Fund pursuant to

this section has not reached the total amount of $89,234,848 that is

scheduled to be transferred pursuant to subsection 1 during both

Fiscal Year 2003-2004 and Fiscal Year 2004-2005 combined, the

Board shall continue to make transfers from the Account to the State

General Fund in subsequent fiscal years until the total amount

transferred equals $89,234,848, subject to the continued availability

of estate tax revenues.

4. As used in this section:

(a) “Account” means the Estate Tax Account in the Endowment

Fund of the University and Community College System of Nevada.

(b) “Board” means the Board of Regents of the University of

Nevada.

System of Nevada.

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

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