REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 10, 11, 12)exempt

                                                   (Reprinted with amendments adopted on June 2, 2003)

 

Senate Bill No. 447–Committee on Government Affairs

 

(On Behalf of the State Treasurer)

 

March 24, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to governmental financial administration. (BDR 31‑302)

 

FISCAL NOTE:    Effect on Local Government: No.

                             Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to governmental financial administration; expanding the purposes for which, in certain smaller counties, money may be expended from a fund established to stabilize the operation of local government and mitigate the effects of natural disasters; revising provisions relating to the securities in which local governments may invest; providing for expanded oversight by the State Treasurer concerning the collateral that must be maintained by financial institutions to secure certain deposits of public money made by state and local governmental entities; making various other changes concerning the duties of the State Treasurer; revising the limitation on the total amount of revenue that may be paid to a redevelopment agency in certain smaller municipalities; authorizing under certain circumstances the issuance of certain bonds and securities to acquire certain facilities for the University of Nevada School of Medicine in Clark County; providing civil penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

2-1  Section 1. NRS 354.6115 is hereby amended to read as

2-2  follows:

2-3  354.6115  1.  The governing body of a local government may,

2-4  by resolution, establish a fund to stabilize the operation of the local

2-5  government and mitigate the effects of natural disasters.

2-6  2.  [The] Except as otherwise provided in this subsection, the

2-7  money in the fund must be used only:

2-8  (a) If the total actual revenue of the local government falls short

2-9  of the total anticipated revenue in the general fund for the fiscal year

2-10  in which the local government uses that money; or

2-11      (b) To pay expenses incurred by the local government to

2-12  mitigate the effects of a natural disaster.

2-13  In a county whose population is less than 3,000, the money in the

2-14  fund may also be used to retire outstanding bonds or other forms

2-15  of debt. The money in the fund at the end of the fiscal year may not

2-16  revert to any other fund or be a surplus for any purpose other than a

2-17  purpose specified in this subsection.

2-18      3.  The money in the fund may not be used to pay expenses

2-19  incurred to mitigate the effects of a natural disaster until the

2-20  governing body of the local government issues a formal declaration

2-21  that a natural disaster exists. The governing body shall not make

2-22  such a declaration unless a natural disaster is occurring or has

2-23  occurred. Upon the issuance of such a declaration, the money in the

2-24  fund may be used for the payment of the following expenses

2-25  incurred by the local government as a result of the natural disaster:

2-26      (a) The repair or replacement of roads, streets, bridges, water

2-27  control facilities, public buildings, public utilities, recreational

2-28  facilities and parks owned by the local government and damaged by

2-29  the natural disaster;

2-30      (b) Any emergency measures undertaken to save lives, protect

2-31  public health and safety or protect property within the jurisdiction of

2-32  the local government;

2-33      (c) The removal of debris from publicly or privately owned land

2-34  and waterways within the jurisdiction of the local government that

2-35  was undertaken because of the natural disaster;

2-36      (d) Expenses incurred by the local government for any overtime

2-37  worked by an employee of the local government because of the

2-38  natural disaster or any other extraordinary expenses incurred by the

2-39  local government because of the natural disaster; and

2-40      (e) The payment of any grant match the local government must

2-41  provide to obtain a grant from a federal disaster assistance agency

2-42  for an eligible project to repair damage caused by the natural

2-43  disaster within the jurisdiction of the local government.

3-1  4.  The balance in the fund must not exceed 10 percent of the

3-2  expenditures from the general fund for the previous fiscal year,

3-3  excluding any federal funds expended by the local government.

3-4  5.  The annual budget and audit report of the local government

3-5  prepared pursuant to NRS 354.624 must specifically identify the

3-6  fund.

3-7  6.  The audit report prepared for the fund must include a

3-8  statement by the auditor whether the local government has complied

3-9  with the provisions of this section.

3-10      7.  Any transfer of money from a fund established pursuant to

3-11  this section must be completed within 90 days after the end of the

3-12  fiscal year in which the natural disaster for which the fund was

3-13  established occurs.

3-14      8.  As used in this section:

3-15      (a) “Grant match” has the meaning ascribed to it in

3-16  NRS 353.2725.

3-17      (b) “Natural disaster” means a fire, flood, earthquake, drought or

3-18  any other occurrence that:

3-19          (1) Results in widespread or severe damage to property or

3-20  injury to or the death of persons within the jurisdiction of the local

3-21  government; and

3-22          (2) As determined by the governing body of the local

3-23  government, requires immediate action to protect the health, safety

3-24  and welfare of persons residing within the jurisdiction of the local

3-25  government.

3-26      Sec. 1.5.  NRS 355.170 is hereby amended to read as follows:

3-27      355.170  1.  Except as otherwise provided in this section, NRS

3-28  354.750 and 355.171, [a board of county commissioners, a board of

3-29  trustees of a county school district or] the governing body of [an

3-30  incorporated city] a local government may purchase for investment

3-31  the following securities and no others:

3-32      (a) Bonds and debentures of the United States, the maturity

3-33  dates of which do not extend more than 10 years after the date of

3-34  purchase.

3-35      (b) Farm loan bonds, consolidated farm loan bonds, debentures,

3-36  consolidated debentures and other obligations issued by federal land

3-37  banks and federal intermediate credit banks under the authority of

3-38  the Federal Farm Loan Act, formerly 12 U.S.C. §§ 636 to 1012,

3-39  inclusive, and §§ 1021 to 1129, inclusive, and the Farm Credit Act

3-40  of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive, and bonds,

3-41  debentures, consolidated debentures and other obligations issued by

3-42  banks for cooperatives under the authority of the Farm Credit Act of

3-43  1933, formerly 12 U.S.C. §§ 1131 to 1138e, inclusive, and the Farm

3-44  Credit Act of 1971, 12 U.S.C. §§ 2001 to 2259, inclusive.

4-1  (c) Bills and notes of the United States Treasury, the maturity

4-2  date of which is not more than 10 years after the date of purchase.

4-3  (d) Obligations of an agency or instrumentality of the United

4-4  States of America or a corporation sponsored by the government,

4-5  the maturity date of which is not more than 10 years after the date of

4-6  purchase.

4-7  (e) Negotiable certificates of deposit issued by commercial

4-8  banks, insured credit unions or savings and loan associations.

4-9  (f) Securities which have been expressly authorized as

4-10  investments for local governments [or agencies, as defined in NRS

4-11  354.474,] by any provision of Nevada Revised Statutes or by any

4-12  special law.

4-13      (g) Nonnegotiable certificates of deposit issued by insured

4-14  commercial banks, insured credit unions or insured savings and loan

4-15  associations, except certificates that are not within the limits of

4-16  insurance provided by an instrumentality of the United States,

4-17  unless those certificates are collateralized in the same manner as is

4-18  required for uninsured deposits by a county treasurer pursuant to

4-19  NRS 356.133. For the purposes of this paragraph, any reference in

4-20  NRS 356.133 to a “county treasurer” or “board of county

4-21  commissioners” shall be deemed to refer to the appropriate financial

4-22  officer or governing body of the [county, school district or city]

4-23  local government purchasing the certificates.

4-24      (h) Subject to the limitations contained in NRS 355.177,

4-25  negotiable notes or medium-term obligations issued by local

4-26  governments of the State of Nevada pursuant to NRS 350.087 to

4-27  350.095, inclusive.

4-28      (i) Bankers’ acceptances of the kind and maturities made

4-29  eligible by law for rediscount with Federal Reserve Banks, and

4-30  generally accepted by banks or trust companies which are members

4-31  of the Federal Reserve System. Eligible bankers’ acceptances may

4-32  not exceed 180 days’ maturity. Purchases of bankers’ acceptances

4-33  may not exceed 20 percent of the money available to a local

4-34  government for investment as determined on the date of purchase.

4-35      (j) Obligations of state and local governments if:

4-36          (1) The interest on the obligation is exempt from gross

4-37  income for federal income tax purposes; and

4-38          (2) The obligation has been rated “A” or higher by one or

4-39  more nationally recognized bond credit rating agencies.

4-40      (k) Commercial paper issued by a corporation organized and

4-41  operating in the United States or by a depository institution licensed

4-42  by the United States or any state and operating in the United States

4-43  that:

4-44          (1) Is purchased from a registered broker-dealer;

5-1       (2) At the time of purchase has a remaining term to maturity

5-2  of no more than 270 days; and

5-3       (3) Is rated by a nationally recognized rating service as

5-4  “A-1,” “P-1” or its equivalent, or better,

5-5  except that investments pursuant to this paragraph may not, in

5-6  aggregate value, exceed 20 percent of the total portfolio as

5-7  determined on the date of purchase, and if the rating of an obligation

5-8  is reduced to a level that does not meet the requirements of this

5-9  paragraph, it must be sold as soon as possible.

5-10      (l) Money market mutual funds which:

5-11          (1) Are registered with the Securities and Exchange

5-12  Commission;

5-13          (2) Are rated by a nationally recognized rating service as

5-14  “AAA” or its equivalent; and

5-15          (3) Invest only in:

5-16              (I) Securities issued by the Federal Government or

5-17  agencies of the Federal Government;

5-18              (II) Master notes, bank notes or other short-term

5-19  commercial paper rated by a nationally recognized rating service as

5-20  “A-1,” “P-1” or its equivalent, or better, issued by a corporation

5-21  organized and operating in the United States or by a depository

5-22  institution licensed by the United States or any state and operating in

5-23  the United States; or

5-24              (III) Repurchase agreements that are fully collateralized

5-25  by the obligations described in sub-subparagraphs (I) and (II).

5-26      (m) Obligations of the Federal Agricultural Mortgage

5-27  Corporation.

5-28      2.  Repurchase agreements are proper and lawful investments of

5-29  money of a [board of county commissioners, a board of trustees of a

5-30  county school district or a] governing body of [an incorporated city]

5-31  a local government for the purchase or sale of securities which are

5-32  negotiable and of the types listed in subsection 1 if made in

5-33  accordance with the following conditions:

5-34      (a) The [board of county commissioners, the board of trustees of

5-35  the school district or the] governing body of the [city] local

5-36  government shall designate in advance and thereafter maintain a list

5-37  of qualified counterparties which:

5-38          (1) Regularly provide audited and, if available, unaudited

5-39  financial statements;

5-40          (2) The [board of county commissioners, the board of

5-41  trustees of the school district or the] governing body of the [city]

5-42  local government has determined to have adequate capitalization

5-43  and earnings and appropriate assets to be highly creditworthy; and

5-44          (3) Have executed a written master repurchase agreement in

5-45  a form satisfactory to the [board of county commissioners, the board

6-1  of trustees of the school district or the] governing body of the [city]

6-2  local government pursuant to which all repurchase agreements are

6-3  entered into. The master repurchase agreement must require the

6-4  prompt delivery to the [board of county commissioners, the board of

6-5  trustees of the school district or the] governing body of the [city]

6-6  local government and the appointed custodian of written

6-7  confirmations of all transactions conducted thereunder, and must be

6-8  developed giving consideration to the Federal Bankruptcy Act.

6-9  (b) In all repurchase agreements:

6-10          (1) At or before the time money to pay the purchase price is

6-11  transferred, title to the purchased securities must be recorded in the

6-12  name of the appointed custodian, or the purchased securities must be

6-13  delivered with all appropriate, executed transfer instruments by

6-14  physical delivery to the custodian;

6-15          (2) The [board of county commissioners, the board of

6-16  trustees of the school district or the] governing body of the [city]

6-17  local government must enter a written contract with the custodian

6-18  appointed pursuant to subparagraph (1) which requires the custodian

6-19  to:

6-20              (I) Disburse cash for repurchase agreements only upon

6-21  receipt of the underlying securities;

6-22              (II) Notify the [board of county commissioners, the board

6-23  of trustees of the school district or the] governing body of the [city]

6-24  local government when the securities are marked to the market if

6-25  the required margin on the agreement is not maintained;

6-26              (III) Hold the securities separate from the assets of the

6-27  custodian; and

6-28              (IV) Report periodically to the [board of county

6-29  commissioners, the board of trustees of the school district or the]

6-30  governing body of the [city] local government concerning the

6-31  market value of the securities;

6-32          (3) The market value of the purchased securities must exceed

6-33  102 percent of the repurchase price to be paid by the counterparty

6-34  and the value of the purchased securities must be marked to the

6-35  market weekly;

6-36          (4) The date on which the securities are to be repurchased

6-37  must not be more than 90 days after the date of purchase; and

6-38          (5) The purchased securities must not have a term to maturity

6-39  at the time of purchase in excess of 10 years.

6-40      3.  The securities described in paragraphs (a), (b) and (c) of

6-41  subsection 1 and the repurchase agreements described in subsection

6-42  2 may be purchased when, in the opinion of the [board of county

6-43  commissioners, the board of trustees of a county school district or

6-44  the] governing body of the [city,] local government, there is

6-45  sufficient money in any fund of the [county, the school district or

7-1  city] local government to purchase those securities and the purchase

7-2  will not result in the impairment of the fund for the purposes for

7-3  which it was created.

7-4  4.  When the [board of county commissioners, the board of

7-5  trustees of a county school district or the] governing body of the

7-6  [city] local government has determined that there is available

7-7  money in any fund or funds for the purchase of bonds as set out in

7-8  subsection 1 or 2, those purchases may be made and the bonds paid

7-9  for out of any one or more of the funds, but the bonds must be

7-10  credited to the funds in the amounts purchased, and the money

7-11  received from the redemption of the bonds, as and when redeemed,

7-12  must go back into the fund or funds from which the purchase money

7-13  was taken originally.

7-14      5.  Any interest earned on money invested pursuant to

7-15  subsection 3, may, at the discretion of the [board of county

7-16  commissioners, the board of trustees of a county school district or

7-17  the] governing body of the [city,] local government, be credited to

7-18  the fund from which the principal was taken or to the general fund

7-19  of the [county, school district or incorporated city.] local

7-20  government.

7-21      6.  The [board of county commissioners, the board of trustees of

7-22  a county school district or the] governing body of [an incorporated

7-23  city] a local government may invest any money apportioned into

7-24  funds and not invested pursuant to subsection 3 and any money not

7-25  apportioned into funds in bills and notes of the United States

7-26  Treasury, the maturity date of which is not more than 1 year after

7-27  the date of investment. These investments must be considered as

7-28  cash for accounting purposes, and all the interest earned on them

7-29  must be credited to the general fund of the [county, school district or

7-30  incorporated city.] local government.

7-31      7.  This section does not authorize the investment of money

7-32  administered pursuant to a contract, debenture agreement or grant in

7-33  a manner not authorized by the terms of the contract, agreement or

7-34  grant.

7-35      8.  As used in this section:

7-36      (a) “Counterparty” means a bank organized and operating or

7-37  licensed to operate in the United States pursuant to federal or state

7-38  law or a securities dealer which is:

7-39          (1) A registered broker-dealer;

7-40          (2) Designated by the Federal Reserve Bank of New York as

7-41  a “primary” dealer in United States government securities; and

7-42          (3) In full compliance with all applicable capital

7-43  requirements.

7-44      (b) “Local government” has the meaning ascribed to it in

7-45  NRS 354.474.

8-1  (c) “Repurchase agreement” means a purchase of securities by

8-2  [a board of county commissioners, the board of trustees of a county

8-3  school district or] the governing body of [an incorporated city] a

8-4  local government from a counterparty which commits to repurchase

8-5  those securities or securities of the same issuer, description, issue

8-6  date and maturity on or before a specified date for a specified price.

8-7  Sec. 2.  NRS 355.175 is hereby amended to read as follows:

8-8  355.175  1.  The governing body of any local government or

8-9  agency, whether or not it is included in the provisions of chapter 354

8-10  of NRS, may:

8-11      (a) Direct its treasurer or other appropriate officer to invest its

8-12  money or any part thereof in any investment which is lawful for a

8-13  [county, a school district or incorporated city] local government

8-14  pursuant to NRS 355.170; or

8-15      (b) Allow a county treasurer to make such investments through a

8-16  pool as provided in NRS 355.168.

8-17      2.  In case of conflict, any order made pursuant to paragraph (a)

8-18  of subsection 1 takes precedence over any other order concerning

8-19  the same money or funds pursuant to subsection 5 of NRS 355.170.

8-20      3.  Any interest earned from investments made pursuant to this

8-21  section must be credited, at the discretion of the local governing

8-22  unit, to any fund under its control, but the designation of the fund

8-23  must be made at the time of investment of the principal.

8-24      Sec. 3.  Chapter 356 of NRS is hereby amended by adding

8-25  thereto the provisions set forth as sections 4 to 13, inclusive, of this

8-26  act.

8-27      Sec. 4.  As used in sections 4 to 13, inclusive, of this act,

8-28  unless the context otherwise requires, the words and terms defined

8-29  in sections 5 to 8, inclusive, of this act have the meanings ascribed

8-30  to them in those sections.

8-31      Sec. 5.  “Depository” means an insured state or national

8-32  bank, insured savings and loan association, or insured credit

8-33  union in this state in which public money is held on deposit. The

8-34  term does not include a third-party depository.

8-35      Sec. 6.  “Local government” has the meaning ascribed to it in

8-36  NRS 354.474.

8-37      Sec. 7.  “Public money” means money deposited with a

8-38  depository by the State or a local government.

8-39      Sec. 8.  “Third-party depository” means a trust company or

8-40  trust department of a state, national or federal reserve district

8-41  bank which is authorized to hold securities on behalf of a

8-42  depository for the benefit of the State Treasurer.

8-43      Sec. 9.  The State Treasurer shall establish a program for the

8-44  monitoring of collateral maintained by depositories.

9-1  Sec. 10.  1.  The program established pursuant to section 9

9-2  of this act must provide that:

9-3  (a) Each depository is required to maintain as collateral

9-4  acceptable securities having a fair market value that is at least 102

9-5  percent of the amount of the uninsured balances of the public

9-6  money held by the depository;

9-7  (b) A depository may satisfy the requirement set forth in

9-8  paragraph (a) by arranging for a third-party depository to hold

9-9  securities on behalf of the depository for the benefit of the State

9-10  Treasurer;

9-11      (c) No depository may, at any one time, hold public money in

9-12  an amount exceeding the total equity of the depository, as reflected

9-13  on the financial statement of the depository;

9-14      (d) Each depository is required to submit to the State

9-15  Treasurer, in the form and manner prescribed by the State

9-16  Treasurer, the following reports:

9-17          (1) A daily report of the total amount of public money held

9-18  by the depository;

9-19          (2) A weekly summary report of the total fair market value

9-20  of securities held by a third-party depository on behalf of the

9-21  depository;

9-22          (3) A monthly report setting forth a list of acceptable

9-23  securities, including, without limitation, the fair market value of

9-24  those securities, held by the depository or held by any third-party

9-25  depository on behalf of the depository; and

9-26          (4) A current annual report containing the financial

9-27  statement of the depository; and

9-28      (e) The State Treasurer may impose an administrative fine not

9-29  to exceed:

9-30          (1) One hundred dollars per day against a depository that

9-31  fails to submit in a timely manner a report described in paragraph

9-32  (d); and

9-33          (2) Two hundred fifty dollars per day against a depository

9-34  that fails to maintain collateral as described in paragraph (a).

9-35      2.  As used in this section, “acceptable securities” means the

9-36  securities described in:

9-37      (a) Subsection 1 of NRS 356.020; and

9-38      (b) Subsection 1 of NRS 356.133.

9-39      Sec. 11.  1.  Once each fiscal year the State Treasurer shall

9-40  levy a pro rata assessment against each depository that held public

9-41  money at any time during the immediately preceding fiscal year.

9-42      2.  The amount of the assessment levied pursuant to

9-43  subsection 1 must be based on the average weekly deposits of

9-44  public money held by a depository.

10-1      3.  The State Treasurer shall provide to each depository a

10-2  notice setting forth:

10-3      (a) The amount of the assessment levied against the depository

10-4  pursuant to subsection 1; and

10-5      (b) The provisions of section 12 of this act.

10-6      Sec. 12.  1.  A depository shall, within 45 days after the date

10-7  on which the depository received the notice provided pursuant to

10-8  subsection 3 of section 11 of this act, remit to the State Treasurer

10-9  the amount of the assessment levied against the depository.

10-10     2.  The State Treasurer may impose an administrative fine not

10-11  exceeding $500 per day against a depository that fails to comply

10-12  with the provisions of subsection 1.

10-13     Sec. 13.  The State Treasurer shall adopt such regulations as

10-14  he determines are necessary to carry out the provisions of sections

10-15  4 to 13, inclusive, of this act.

10-16     Sec. 14.  NRS 356.020 is hereby amended to read as follows:

10-17     356.020  1.  All money deposited by the State Treasurer which

10-18  is not within the limits of insurance provided by an instrumentality

10-19  of the United States must be secured by collateral composed of the

10-20  following types of securities:

10-21     (a) United States treasury notes, bills, bonds or obligations as to

10-22  which the full faith and credit of the United States are pledged for

10-23  the payment of principal and interest, including the guaranteed

10-24  portions of Small Business Administration loans if the full faith and

10-25  credit of the United States is pledged for the payment of the

10-26  principal and interest;

10-27     (b) Bonds of this state;

10-28     (c) Bonds of any county, municipality or school district within

10-29  this state;

10-30     (d) Promissory notes secured by first mortgages or first deeds of

10-31  trust which meet the requirements of NRS 356.025;

10-32     (e) Mortgage-backed pass-through securities guaranteed by the

10-33  Federal National Mortgage Association, the Federal Home Loan

10-34  Mortgage Corporation or the Government National Mortgage

10-35  Association;

10-36     (f) Collateralized mortgage obligations or real estate mortgage

10-37  investment conduits that are rated “AAA,” “Aaa” or its equivalent

10-38  by a nationally recognized rating service; [or]

10-39     (g) Instruments in which the State is permitted by NRS 355.140

10-40  to invest[.] ; or

10-41     (h) Irrevocable letters of credit from any Federal Home Loan

10-42  Bank with the State Treasurer named as the beneficiary.

10-43     2.  Collateral deposited by the depository bank, credit union or

10-44  savings and loan association must be pledged with the State

10-45  Treasurer or with any Federal Home Loan Bank, any bank or any

11-1  insured credit union or savings and loan association, other than the

11-2  depository bank, credit union or savings and loan association, which

11-3  will accept the securities in trust for the purposes of this section.

11-4      3.  The fair market value of the deposit of securities as

11-5  collateral by each depository bank, credit union or savings and loan

11-6  association must be at least the amount [of the State Treasurer’s

11-7  deposit with the depository bank, credit union or association.]

11-8  required pursuant to sections 4 to 13, inclusive, of this act. The fair

11-9  market value of any collateral consisting of promissory notes with

11-10  first mortgages or first deeds of trust shall be deemed to be 75

11-11  percent of the unpaid principal of the notes.

11-12     4.  All securities to be used as such collateral are subject to

11-13  review by the State Treasurer . [and the State Board of Finance.]

11-14  The depository bank, credit union or savings and loan association

11-15  shall submit [monthly] reports to the State Treasurer [showing the

11-16  securities which constitute the collateral and their fair market value.]

11-17  as required pursuant to sections 4 to 13, inclusive, of this act.

11-18     5.  The State Treasurer [or the State Board of Finance] may,

11-19  from time to time, require the deposit of additional securities as

11-20  collateral if, in their judgment, the additional securities are

11-21  necessary to secure the State Treasurer’s deposit.

11-22     Sec. 15.  NRS 356.133 is hereby amended to read as follows:

11-23     356.133  1.  All money deposited by a county treasurer that is

11-24  not within the limits of insurance provided by an instrumentality of

11-25  the United States must be secured by collateral composed of the

11-26  following types of securities:

11-27     (a) United States treasury notes, bills, bonds or obligations as to

11-28  which the full faith and credit of the United States are pledged for

11-29  the payment of principal and interest, including the guaranteed

11-30  portions of Small Business Administration loans if the full faith and

11-31  credit of the United States is pledged for the payment of the

11-32  principal and interest;

11-33     (b) Bonds of this state;

11-34     (c) Bonds of a county, municipality or school district within this

11-35  state;

11-36     (d) Mortgage-backed pass-through securities guaranteed by the

11-37  Federal National Mortgage Association, the Federal Home Loan

11-38  Mortgage Corporation or the Government National Mortgage

11-39  Association; [or]

11-40     (e) Instruments in which the county is authorized by NRS

11-41  355.170 to invest[.] ; or

11-42     (f) Irrevocable letters of credit from any Federal Home Loan

11-43  Bank with the State Treasurer named as the beneficiary.

11-44     2.  Collateral deposited by the depository bank, credit union or

11-45  savings and loan association must be pledged with the county

12-1  treasurer or with a Federal Home Loan Bank, or any insured bank,

12-2  insured credit union or insured savings and loan association, other

12-3  than the depository bank, credit union or savings and loan

12-4  association, which will accept the securities in trust for the purposes

12-5  of this section.

12-6      3.  The fair market value of the deposit of securities as

12-7  collateral by each depository bank, credit union or savings and loan

12-8  association must be at least [102 percent of] the amount [of the

12-9  county treasurer’s deposit with the depository bank, credit union or

12-10  association.] required pursuant to sections 4 to 13, inclusive, of

12-11  this act.

12-12     4.  All securities to be used as such collateral are subject to

12-13  review by the county treasurer and the board of county

12-14  commissioners. The depository bank, credit union or savings and

12-15  loan association shall submit [monthly]reports to the [county

12-16  treasurer showing the securities which constitute the collateral and

12-17  their fair market value.]State Treasurer as required pursuant to

12-18  sections 4 to 13, inclusive, of this act. The State Treasurer will

12-19  provide periodic reports to the county treasurer showing the

12-20  securities which constitute the collateral and their fair market

12-21  value.

12-22     5.  The county treasurer or the board of county commissioners

12-23  may, from time to time, require the deposit of additional securities

12-24  as collateral if, in their judgment, the additional securities are

12-25  necessary to secure the county treasurer’s deposit.

12-26     Sec. 15.5.  NRS 279.676 is hereby amended to read as follows:

12-27     279.676  1.  Any redevelopment plan may contain a provision

12-28  that taxes, if any, levied upon taxable property in the redevelopment

12-29  area each year by or for the benefit of the State, any city, county,

12-30  district or other public corporation, after the effective date of the

12-31  ordinance approving the redevelopment plan, must be divided as

12-32  follows:

12-33     (a) That portion of the taxes which would be produced by the

12-34  rate upon which the tax is levied each year by or for each of

12-35  the taxing agencies upon the total sum of the assessed value of the

12-36  taxable property in the redevelopment area as shown upon the

12-37  assessment roll used in connection with the taxation of the property

12-38  by the taxing agency, last equalized before the effective date of the

12-39  ordinance, must be allocated to and when collected must be paid

12-40  into the funds of the respective taxing agencies as taxes by or for

12-41  such taxing agencies on all other property are paid. To allocate taxes

12-42  levied by or for any taxing agency or agencies which did not include

12-43  the territory in a redevelopment area on the effective date of the

12-44  ordinance but to which the territory has been annexed or otherwise

12-45  included after the effective date, the assessment roll of the county

13-1  last equalized on the effective date of the ordinance must be used in

13-2  determining the assessed valuation of the taxable property in the

13-3  redevelopment area on the effective date. If property which was

13-4  shown on the assessment roll used to determine the amount of taxes

13-5  allocated to the taxing agencies is transferred to the State and

13-6  becomes exempt from taxation, the assessed valuation of the exempt

13-7  property as shown on that assessment roll must be subtracted from

13-8  the assessed valuation used to determine the amount of revenue

13-9  allocated to the taxing agencies.

13-10     (b) Except as otherwise provided in paragraphs (c) and (d) and

13-11  NRS 540A.265, that portion of the levied taxes each year in excess

13-12  of the amount set forth in paragraph (a) must be allocated to and

13-13  when collected must be paid into a special fund of the

13-14  redevelopment agency to pay the costs of redevelopment and to pay

13-15  the principal of and interest on loans, money advanced to, or

13-16  indebtedness, whether funded, refunded, assumed, or otherwise,

13-17  incurred by the redevelopment agency to finance or refinance, in

13-18  whole or in part, redevelopment. Unless the total assessed valuation

13-19  of the taxable property in a redevelopment area exceeds the total

13-20  assessed value of the taxable property in the redevelopment area as

13-21  shown by the last equalized assessment roll referred to in paragraph

13-22  (a), all of the taxes levied and collected upon the taxable property in

13-23  the redevelopment area must be paid into the funds of the respective

13-24  taxing agencies. When the redevelopment plan is terminated

13-25  pursuant to the provisions of NRS 279.438 and 279.439 and all

13-26  loans, advances and indebtedness, if any, and interest thereon, have

13-27  been paid, all money thereafter received from taxes upon the taxable

13-28  property in the redevelopment area must be paid into the funds of

13-29  the respective taxing agencies as taxes on all other property are paid.

13-30     (c) That portion of the taxes in excess of the amount set forth in

13-31  paragraph (a) that is attributable to a tax rate levied by a taxing

13-32  agency to produce revenues in an amount sufficient to make annual

13-33  repayments of the principal of, and the interest on, any bonded

13-34  indebtedness that was approved by the voters of the taxing agency

13-35  on or after November 5, 1996, must be allocated to and when

13-36  collected must be paid into the debt service fund of that taxing

13-37  agency.

13-38     (d) That portion of the taxes in excess of the amount set forth in

13-39  paragraph (a) that is attributable to a new or increased tax rate levied

13-40  by a taxing agency and was approved by the voters of the taxing

13-41  agency on or after November 5, 1996, must be allocated to and

13-42  when collected must be paid into the appropriate fund of the taxing

13-43  agency.

14-1      2.  Except as otherwise provided in subsection 3, in any fiscal

14-2  year, the total revenue paid to a redevelopment agency must not

14-3  exceed:

14-4      (a) In a municipality whose population is 100,000 or more, an

14-5  amount equal to the combined tax rates of the taxing agencies for

14-6  that fiscal year multiplied by 10 percent of the total assessed

14-7  valuation of the municipality.

14-8      (b) In a municipality whose population is 25,000 or more but

14-9  less than 100,000, an amount equal to the combined tax rates of the

14-10  taxing agencies for that fiscal year multiplied by 15 percent of the

14-11  total assessed valuation of the municipality.

14-12     (c) In a municipality whose population is less than 25,000, an

14-13  amount equal to the combined tax rates of the taxing agencies for

14-14  that fiscal year multiplied by 20 percent of the total assessed

14-15  valuation of the municipality.

14-16  If the revenue paid to a redevelopment agency must be limited

14-17  pursuant to paragraph (a) , [or] (b) or (c) and the redevelopment

14-18  agency has more than one redevelopment area, the redevelopment

14-19  agency shall determine the allocation to each area. Any revenue

14-20  which would be allocated to a redevelopment agency but for the

14-21  provisions of this section must be paid into the funds of the

14-22  respective taxing agencies.

14-23     3.  The taxing agencies shall continue to pay to a

14-24  redevelopment agency any amount which was being paid before

14-25  July 1, 1987, and in anticipation of which the agency became

14-26  obligated before July 1, 1987, to repay any bond, loan, money

14-27  advanced or any other indebtedness, whether funded, refunded,

14-28  assumed or otherwise incurred.

14-29     4.  For the purposes of this section, the assessment roll last

14-30  equalized before the effective date of the ordinance approving the

14-31  redevelopment plan is the assessment roll in existence on March 15

14-32  immediately preceding the effective date of the ordinance.

14-33     Sec. 16.  NRS 349.950 is hereby amended to read as follows:

14-34     349.950  1.  The Director may, to pay the cost of any water

14-35  project, borrow money or otherwise become obligated, and may

14-36  provide evidence of those obligations by issuing, except as

14-37  otherwise provided in this subsection, state securities or revenue

14-38  bonds. If the obligor is not a governmental entity, the Director shall

14-39  issue only revenue bonds to fulfill the obligation.

14-40     2.  [State] Except as otherwise provided in this subsection,

14-41  state obligations may be outstanding pursuant to this section in an

14-42  aggregate principal amount of not more than $200,000,000. No state

14-43  obligations, other than refunding obligations, may be issued

14-44  pursuant to this section after July 1, 2003.

15-1      3.  State securities must be payable from taxes and may be

15-2  additionally secured by all or any designated revenues from one or

15-3  more water projects. Any governmental entity statutorily authorized

15-4  to levy taxes for the payment of bonded indebtedness may use the

15-5  proceeds of those taxes to pay the principal of, interest on and

15-6  redemption premiums due in connection with state securities issued

15-7  pursuant to this section. Any such state securities may be issued

15-8  without an election or other preliminaries. No state securities may

15-9  be issued to refund any municipal securities issued to finance a

15-10  water project before July 1, 1987.

15-11     4.  Provisions of NRS 349.150 to 349.364, inclusive, which are

15-12  not inconsistent with the provisions of NRS 349.935 to 349.961,

15-13  inclusive, apply to the issuance of state securities under this section.

15-14  Provisions of NRS 349.400 to 349.670, inclusive, which are not

15-15  inconsistent with the provisions of NRS 349.935 to 349.961,

15-16  inclusive, apply to the issuance of revenue bonds under this section.

15-17     5.  The Legislature finds and declares that the issuance of state

15-18  securities pursuant to NRS 349.935 to 349.961, inclusive, is

15-19  necessary for the protection and preservation of the natural

15-20  resources of this state and for the purpose of obtaining the benefits

15-21  thereof, and constitutes an exercise of the authority conferred by the

15-22  second paragraph of Section 3 of Article 9 of the Constitution of the

15-23  State of Nevada.

15-24     Sec. 17.  Section 2 of chapter 478, Statutes of Nevada 1983, as

15-25  amended by chapter 785, Statutes of Nevada 1989, at page 1866, is

15-26  hereby amended to read as follows:

15-27     Sec. 2.  [After]

15-28     1.  Except as otherwise provided in subsection 2, after

15-29  any of the agreements described in section 1 of this act have

15-30  been entered into, the state board of examiners shall issue

15-31  general obligation bonds of the State of Nevada to provide the

15-32  money necessary to pay the state’s share of costs associated

15-33  with projects authorized pursuant to section 1 of this act for

15-34  the conservation, distribution and acquisition of water

15-35  associated with the Truckee River, the Carson River, the

15-36  Lahontan Valley Wetlands and the Newlands Federal

15-37  Reclamation Project, but not more than $8,000,000 in face

15-38  amount. The bonds may be issued at one time or from time to

15-39  time.

15-40     2.  No bonds, other than refunding bonds, may be

15-41  issued pursuant to this section after July 1, 2003.

15-42     Sec. 18.  Section 4 of chapter 78, Statutes of Nevada 1993, at

15-43  page 124, is hereby amended to read as follows:

15-44     Sec. 4.  1.  Subject to the limitations as to the

15-45  maximum principal amount in section 2 of this act, the

16-1  commission may in accordance with the provisions of

16-2  the State Securities Law issue revenue bonds and other

16-3  securities constituting special obligations and payable from

16-4  net pledged revenues, to defray the cost of the system, or any

16-5  part thereof, at any time or from time to time after the

16-6  adoption of this act, but not later than [15 years after the

16-7  effective date thereof, as the commission deems appropriate.]

16-8  July 1, 2003.

16-9      2.  This act does not prevent the commission from

16-10  funding, refunding or reissuing any outstanding state

16-11  securities issued by the commission or the former division of

16-12  Colorado River resources at any time as provided in the State

16-13  Securities Law.

16-14     3.  Subject to contractual obligations, the net revenues

16-15  pledged for the payment of state securities by the commission

16-16  may be derived from contractual commitments of the Federal

16-17  Government, of those customers of the commission or of

16-18  others utilizing the system to repay the commission’s cost of

16-19  retiring the state securities, including interest thereon, as the

16-20  commission may determine.

16-21     Sec. 19.  Chapter 627, Statutes of Nevada 1995, at page 2379,

16-22  is hereby amended to read a follows:

16-23     Section 1.  1.  The department of information services

16-24  may enter into contracts for the purchase of equipment to

16-25  upgrade the mainframe of the computer. [The] Except as

16-26  otherwise provided in subsection 2, the contracts may

16-27  include installment purchase agreements for the equipment

16-28  which constitute a total debt of the State of Nevada in an

16-29  amount determined by the state board of examiners not

16-30  exceeding $5,000,000. Money for the payment of the debt

16-31  incurred pursuant to this section will be provided for in the

16-32  annual tax imposed for the payment of the obligations of the

16-33  State of Nevada from the consolidated bond interest and

16-34  redemption fund or by other legislative act. The provisions of

16-35  NRS 349.238 to 349.248, inclusive, apply to payment of the

16-36  debt. Interest on the debt must be paid at least semiannually

16-37  and the principal must be paid within 20 years after the date

16-38  of passage of this act.

16-39     2.  No installment purchase agreement authorized

16-40  pursuant to subsection 1 may be entered into after July 1,

16-41  2003, other than an installment purchase agreement that:

16-42     (a) Is entered into for the purpose of refunding

16-43  outstanding obligations; and

16-44     (b) Has been approved by the State Board of Finance

16-45  and the Interim Finance Committee.

17-1      Sec. 20.  Section 4 of chapter 656, Statutes of Nevada 1995, at

17-2  page 2530, is hereby amended to read as follows:

17-3      Sec. 4.  1.  The director of the department of prisons

17-4  shall, to the extent of legislative appropriations and

17-5  authorizations, enter into a contract in accordance with the

17-6  provisions of chapter 573, Statutes of Nevada 1991, at page

17-7  1893, for the construction and operation of a new correctional

17-8  facility for women in southern Nevada. [The] Except as

17-9  otherwise provided in subsection 2, the contract may include

17-10  an assignable lease or installment purchase agreement for the

17-11  facility which constitutes a debt of the State of Nevada in an

17-12  amount determined by the state board of examiners not

17-13  exceeding $44,000,000. Money for the payment of the debt

17-14  incurred pursuant to this section will be provided for in the

17-15  annual tax imposed for the payment of the obligations of the

17-16  State of Nevada from the consolidated bond interest and

17-17  redemption fund or by other legislative act. The provisions of

17-18  NRS 349.238 to 349.248, inclusive, apply to payment of the

17-19  debt. Interest on the debt must be paid at least semiannually

17-20  and the principal must be paid within 20 years after the date

17-21  of passage of this act.

17-22     2.  No lease or installment purchase agreement

17-23  authorized pursuant to subsection 1 may be entered into

17-24  after July 1, 2003, other than a lease or installment

17-25  purchase agreement that:

17-26     (a) Is entered into for the purpose of refunding

17-27  outstanding obligations; and

17-28     (b) Has been approved by the State Board of Finance

17-29  and the Interim Finance Committee.

17-30     3.  Except for debt incurred as provided in subsection 1,

17-31  all payments of money required by the contract authorized by

17-32  subsection 1 must be subject to biennial appropriation by the

17-33  legislature and must not be due and payable unless an

17-34  appropriation is made.

17-35     Sec. 21.  Section 7 of chapter 563, Statutes of Nevada 1997, at

17-36  page 2738, is hereby amended to read as follows:

17-37     Sec. 7.  1.  The director may, to the extent of legislative

17-38  appropriations and authorizations, enter into a single contract

17-39  to finance, acquire and construct the facility. The contract

17-40  may include a provision that requires the contractor to

17-41  provide correctional services for the facility. The provisions

17-42  of this subsection do not prohibit the department or any other

17-43  state agency from providing correctional services for the

17-44  facility.

18-1      2.  [The] Except as otherwise provided in this

18-2  subsection, the contract may include an assignable lease or

18-3  installment purchase agreement for the facility. The lease or

18-4  agreement constitutes a debt of the State of Nevada in an

18-5  amount determined by the state board of examiners not

18-6  exceeding $20,000,000. No lease or installment purchase

18-7  agreement authorized pursuant to this subsection may be

18-8  entered into after July 1, 2003, other than a lease or

18-9  installment purchase agreement that:

18-10     (a) Is entered into for the purpose of refunding

18-11  outstanding obligations; and

18-12     (b) Has been approved by the State Board of Finance

18-13  and the Interim Finance Committee.

18-14     3.  Money for the payment of the debt incurred pursuant

18-15  to this section will be provided for in the annual tax imposed

18-16  for the payment of the obligations of the State of Nevada

18-17  from the consolidated bond interest and redemption fund or

18-18  by other legislative act. The provisions of NRS 349.238 to

18-19  349.248, inclusive, apply to the payment of the debt. Any

18-20  interest on the debt must be paid at least semiannually and the

18-21  principal must be paid within 20 years after the date the

18-22  contract is approved by the state board of examiners.

18-23     4.  Except for debt incurred as provided in subsection 1,

18-24  all payments of money required by the contract authorized

18-25  pursuant to the provisions of subsection 1 must be subject to

18-26  biennial appropriation by the legislature and must not be due

18-27  and payable unless an appropriation is made.

18-28     5.  The department may request that proposals for

18-29  correctional services be submitted and must specify the

18-30  requirements for the proposal.

18-31     6.  A proposal submitted to the department must:

18-32     (a)  Meet the requirements specified in the request; and

18-33     (b)  Set a fixed price for the services offered.

18-34     7.  The contract to finance, acquire and construct the

18-35  facility is exempt from the provisions relating to bids set forth

18-36  in NRS 341.145 to 341.151, inclusive.

18-37     Sec. 22.  1.  At the request of the University and Community

18-38  College System of Nevada, the State Board of Finance shall review

18-39  a proposal for the issuance of general obligation bonds of the State

18-40  of Nevada or a combination of general obligation bonds and other

18-41  state securities to acquire a portion of the facilities known as the

18-42  Academic Medical Center located in downtown Las Vegas, or

18-43  similar facilities within the City of Las Vegas, for the University of

18-44  Nevada School of Medicine in Clark County and make a

18-45  recommendation regarding the proposal to the Interim Finance

19-1  Committee. If the Interim Finance Committee, after independent

19-2  determination, finds that the issuance of such securities is

19-3  appropriate, the committee shall by resolution direct the State Board

19-4  of Finance to issue general obligation bonds of the State of Nevada

19-5  or a combination of general obligation bonds of the State of Nevada

19-6  and other state securities in the face amount of not more than

19-7  $10,000,000 for the purpose of acquiring a portion of the facilities

19-8  known as the Academic Medical Center located in downtown Las

19-9  Vegas, or similar facilities within the City of Las Vegas, for the

19-10  University of Nevada School of Medicine in Clark County.

19-11     2.  The amount of the bonds and the timing of the issuance of

19-12  the bonds must be determined by the State Treasurer and

19-13  representatives of the University and Community College System of

19-14  Nevada and must reflect the expenses associated with the issuance

19-15  of the bonds and the expenses and timing associated with the

19-16  acquisition of a portion of the facilities known as the Academic

19-17  Medical Center located in downtown Las Vegas, or similar facilities

19-18  within the City of Las Vegas, for the University of Nevada School

19-19  of Medicine in Clark County.

19-20     3.  Following the acquisition of the portion of the Academic

19-21  Medical Center located in downtown Las Vegas, or similar facilities

19-22  within the City of Las Vegas, for the University of Nevada School

19-23  of Medicine in Clark County with the proceeds of the bonds

19-24  authorized by this section, the University and Community College

19-25  System of Nevada shall pay or transfer to the State Treasurer on the

19-26  date on which the rent payments for the portion of the Academic

19-27  Medical Center located in downtown Las Vegas that is rented by the

19-28  University and Community College System of Nevada on

19-29  October 1, 2003, would have been due, for deposit into the

19-30  Consolidated Bond Interest and Redemption Fund, from amounts

19-31  appropriated by the Legislature to the University and Community

19-32  College System of Nevada for rent payments on a portion of the

19-33  Academic Medical Center located in downtown Las Vegas and from

19-34  other money of the University and Community College System of

19-35  Nevada, an amount equal to the amount of principal and interest

19-36  which accrues on the bonds in each month following the acquisition

19-37  of the portion of the Academic Medical Center located in downtown

19-38  Las Vegas, or similar facilities within the City of Las Vegas, for the

19-39  University of Nevada School of Medicine in Clark County.

19-40     4.  For the purposes of this section, the principal amount and

19-41  interest on the bonds shall be deemed to accrue in equal monthly

19-42  amounts from the date of the issuance of the bonds until the date of

19-43  the first interest payment on the bonds and thereafter each

19-44  semiannual interest payment shall be deemed to accrue in six equal

19-45  monthly installments ending on the semiannual interest payment

20-1  date. Principal on the bonds shall be deemed to accrue in equal

20-2  monthly installments from the date of the issuance of the bonds until

20-3  the first principal payment date on the bonds and thereafter each

20-4  annual principal payment shall be deemed to accrue in 12 equal

20-5  monthly installments ending on each annual bond principal payment

20-6  date. The annual principal payment must occur on the date of the

20-7  first semiannual interest payment.

20-8      5.  Except with respect to the first interest and principal

20-9  payments, the interest payments on the bonds must be made

20-10  semiannually and the principal payments must be made annually.

20-11     6.  The provisions of the State Securities Law, set forth in NRS

20-12  349.150 to 349.364, inclusive, apply to the issuance of bonds

20-13  pursuant to the provisions of this section.

20-14     Sec. 23.  1.  This section and sections 1 to 21, inclusive, of

20-15  this act become effective on July 1, 2003.

20-16     2.  Section 22 of this act becomes effective on October 1, 2003.

 

20-17  H