MINERAL COUNTY POWER SYSTEM ACT OF 1925

[Rev. 6/29/2024 7:35:11 PM--2023]

Chapter 128, Statutes of Nevada 1925

AN ACT supplementary to an act entitled “An act to authorize the Board of County Commissioners of the County of Mineral, State of Nevada, to purchase, acquire and construct an electric power and telephone line extending from the Lundy generating plant of the Nevada-California power company, situated in the county of Mono, State of California, to the town of Hawthorne, Nevada, ant thence via Luning and Mina to the town of Simon, in the County of Mineral, State of Nevada, and branches thereof; providing for the maintenance and operation of said line as a public utility; the issuance and sale of bonds therefor; the levy and collection of taxes for the payment of said bonds, and other matters relating thereto,” approved March 4, 1921, and of all acts amendatory thereof, and authorizing the board of county commissioners of the County of Mineral, State of Nevada, to form a foreign corporation for certain purposes in connection with the ownership and operation of the Mineral County Power System; prescribing who shall be stockholders and directors thereof; fixing their powers and duties; prohibiting the alienation or sale of the property of said System and other matters relating thereto.

[Approved: March 21, 1925]

(Leadlines for sections have been supplied by the Legislative Counsel of the State of Nevada)

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

Section 1. Lease or sale of part of System located in California to public utility organized under laws of California. The Board of County Commissioners of Mineral County, Nevada, are hereby authorized to take such action as they may deem necessary to legally safeguard the interests of the Mineral County Power System (a public utility owned and operated by the said County of Mineral) in the ownership, maintenance, and operation of that portion of the electric lines belonging to said System, lying and being in the State of California, and may lease or sell such part of said system lines, or any part thereof as may be deemed desirable or necessary to a public utility corporation to be organized under the laws of such state for the purpose of acquiring, holding and operating such utility therein, as the same now exists, or may hereafter be extended, controlled or owned.

(Ch. 128, Stats. 1925 p. 209)

Sec. 2. Power of Board of County Commissioners to form corporation under laws of California to acquire portion of system located in California and hold it in trust for Mineral County; directors of corporation. Permission is hereby granted to such Board of Commissioners to cause to be organized a corporation under the laws of the State of California, to be known as the “Mineral County Power System,” or with similar name, with provision that the directors thereof (who shall serve without additional or any compensation for their services as such) shall include the members of the Board of County Commissioners, the County Clerk, and the District Attorney of Mineral County, State of Nevada, and when so organized as to comply with all the statutory requirements of the State of California, such corporation may acquire by lease or purchase from the Board of County Commissioners of Mineral County, Nevada, all the property of the Mineral County Power System lying within the State of California, to be held in trust by such corporation for the County of Mineral, State of Nevada.

(Ch. 128, Stats. 1925 p. 210)

Sec. 3. Capital stock of foreign corporation subscribed for by incorporators; payment by System. If it be found necessary to have a definite amount of or value to the capital stock of such proposed corporation the amount and value may be fixed by such Board of County Commissioners, in an appropriate resolution and order therefor to be spread upon their minutes, and said Board shall provide that the whole of such capital stock shall be subscribed for and be fully paid in equal pro rata shares by the several incorporators. Any available funds of the Mineral County Power System, necessary for such purpose, may, by order of the Board of County Commissioners, be advanced by the County of Mineral, State of Nevada, and upon the completion of the organization of such corporation, such stock shall be delivered by the incorporators to, and held in trust by, the County Treasurer of said County for the Mineral County Power System.

(Ch. 128, Stats. 1925 p. 210)

Sec. 4. Stockholders and directors; principal place of business. Provision shall be made in organizing such corporation that the members of the Board of County Commissioners, the County Clerk, and District Attorney of Mineral County, who shall be in office at such time, shall be stockholders and directors of said corporation, and that upon the expiration of their official terms of office their respective successors shall succeed them as stockholders and directors therein; provided, the Chair of the Board of County Commissioners shall be the President of such corporation and also Chair of the Board of Directors, and the County Clerk shall be the secretary thereof; provided further, that the articles of incorporation shall state that the principal place of business and head office of such corporation shall be the place in the State of Nevada (naming it) fixed by law as the county-seat of Mineral County, although provision may be made for maintaining an office elsewhere if necessary, and also for the holding of any required meetings at such office.

(Ch. 128, Stats. 1925 p. 210)

Sec. 5. No private rights of ownership in property of foreign corporation. It is hereby declared to be the express intent and purpose of this act that if any such corporation shall be formed, the several officials herein named, as well as their successors in office, shall act as officers and stockholders of such in their official capacity only, and shall not thereby acquire, either directly or indirectly, any private rights of ownership in the property operated, controlled or owned by such corporation.

(Ch. 128, Stats. 1925 p. 211)

Sec. 6. Restrictions on sale or encumbrance of capital stock of foreign corporation. No part of the capital stock of such Corporation shall thereafter be sold, pledged or otherwise encumbered so long as the County of Mineral shall continue to own, maintain, and operate the Mineral County Power System as a public utility.

(Ch. 128, Stats. 1925 p. 211)

Sec. 7. Approval of Legislature and voters of County required for sale or encumbrance of System. Neither the whole nor any part of the said Mineral County Power System, situated either within or without the State of Nevada, shall be encumbered, alienated or sold, without the express consent and sanction of the State of Nevada, expressed in an act of the Legislature passed for such purpose, and not then unless such proposition shall have first been approved by at least a three-fifth vote of the qualified voters of Mineral County, voting at a general election, and to be determined by the vote cast thereat for member of Congress.

(Ch. 128, Stats. 1925 p. 211)

Sec. 8. Copies of reports of foreign corporation: Annexation to annual report; filing in records of system. Exact copies of all reports of said corporation required by law to be made in the State of California shall be made by, or under the direction, of the general manager of the Mineral County Power System, and annexed to his or her annual report required by law to be made to the Board of Managers of said system, and the same shall be filed and kept as part of the records thereof in the office of such system at the county-seat of Mineral County.

(Ch. 128, Stats. 1925 p. 211)

Sec. 9. Payment of expenses of corporation. Any and all expense incurred in the organization of such corporation, or by such corporation during the term of its existence, shall be a charge upon and be paid from the funds of the Mineral County Power System, and shall be approved, allowed, audited and paid as are all other claims against the County.

(Ch. 128, Stats. 1925 p. 211)

Sec. 10. Severability. If any section or part of a section of this act shall be declared by the Supreme Court of this state to be unconstitutional, such declaration shall not thereby affect the remainder of this act.

(Ch. 128, Stats. 1925 p. 211)

Sec. 11. Effective date. This act shall take effect and be in full force from and after its passage and approval.

(Ch. 128, Stats. 1925 p. 211)