SB 450 — Revises provisions relating to the financing of school facilities. (BDR 30-1153)

S.B.EMERGENCY REQUEST of Senate Majority Leader Senate Bill No.

450450–Senators EMERGENCYCannizzaro, REQUESTRatti, OFDondero SENATELoop, MDenis, AJORITYLange; LEADER SENATE BILL NO.

450–SENATORSBrooks, CANNIZZARODonate, ,Hardy, ATTI,Kieckhefer, DONDEROOhrenschall, LOOPScheible ,and DENIS,Spearman LANGEJoint ;Sponsors:

BROOKSAssemblymen ,Frierson, DBenitez-Thompson, ONATECarlton, ,Jauregui, HBilbray-Axelrod; ARDY , K IECKHEFER,O HRENSCHALL , CHEIBLE AND SPEARMAN M AY 17, 2021 ____________ JOINT SPONSORS :

ASSEMBLYMENAnderson, FRIERSON,Considine BENITEZ-THOMPSONand ,Brittney CMiller ARLTONCHAPTER.......... , JAUREGUI , B ILBRAY-AXELROD ;

A NDERSON , C ONSIDINE AND BRITTNEY M ILLER ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the financing of school facilities.

(BDR 30-1153) FISCAL NOTE:

EEffect on the State:

No.t:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegiExisting Counsel’slaw Digest:authorizes the board of trustees of a school district to issue general obligation bonds to raise money for certain specified purposes related to school facilities, including, but not limited to:

Existing(1) law authorizes the boardconstruction, ofdesign trusteesor purchase of anew schoolbuildings district to issue general obligation bonds to raise money for certainschools; specified purposes related to school facilities, including, but not limited to:

(1)(2) theenlarging, construction,remodeling design or purchaserepairing ofexisting buildings or grounds for schools;

(NRS 387.335)s387.335) Under existing law, if a municipality proposes to issue or incur general obligation bonds, the proposal is required to be submitted to the qualified electors atissuance anof election.general obligation bonds of a school district if:

Existing law provides an exception from this requirement for the issuance of general obligation bonds of a school district if:

and (2) the voters have approved a - *SB450* – 2 – question that authorizes the issuance of such bonds by the board of trustees of the school district for 10 years after the date of approval under two conditions.

First, the board of trustees is required to make a finding that the existing tax for debt service will at least equal the amount required to pay the principal and interest on the outstanding general obligations of the school district and the general obligations ofproposed eachto suchbe bondissued. issuance from the debt management commission in the county inoval which the school district is located and, in counties whose population is 100,000 or more (currently Clark and Washoe Counties), from the oversight panel for school facilities.

ExistingSecond, lawthe alsoboard providesof thattrustees suchis arequired questionto mayobtain authorizeapproval theof boardeach ofsuch trusteesbond toissuance transferfrom anythe excessdebt revenuemanagement generatedcommission byin the schoolcounty district’sin propertywhich taxthe forschool debtdistrict serviceis tolocated theand, fundin forcounties capitalwhose projectspopulation ofis the100,000 schoolor districtmore to(currently payClark forand certainWashoe capitalCounties), projects,from commonlythe knownoversight aspanel “payfor asschool youfacilities. go” funding.

(NRIfExisting law also provides that such a question may authorize the board of trustees to transfer any excess revenue generated by the school district’s property certain capital projects, commonly known as “pay as you go” funding.district to pay for (NRS 350.020) If such a question for the issuance of bonds of a school district has been approved by the voters, existing law authorizes the board of trustees of the school district to issue general obligation bonds for one additional period of 10 years, without any further approval of the voters and regardless of whether the question was approved more than 10 years before March 4, 2015.

For each issuance of - 81st Session (2021) – 2 – bonds during that additional 10-year period, the board of trustees must make the required finding regarding the sufficiency of the existing tax to pay debt service on county and, if applicable, the oversight panel for school facilities.

(NRS 350.0201) This billbonds authorizesfor thea boardsecond ofadditional trusteesperiod of a10 schoolyears, districtwithout toany issuefurther generalapproval obligationofation the voters and regardless of whether the question was approved more than 10 years before March 4, 2025.

THEEXPLANATION PEOPLE– OFMatter THEin STATEbolded OFitalics NEVADA,is REPRESENTEDnew; IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sectionmatter 1.between brackets [omitted material] is material to be omitted.

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

Such approval shall be deemed to constitute approval of the qualified electors for the issuance of general obligation bonds by the board of trustees of the school district pursuant to subsection 4 of NRS 350.020 for a period of 10 years commencing on March 4, 2025, if the question was approved by the voters more than 10 years before March 4, 2025, or otherwise commencing on the date of the expiration of the 10-year period approved by the voters in the question, and no other approval of the qualified - *SB450* – 3 – electors is required for such issuance of general obligation bonds pursuant to the provisions of NRS 350.020 by the board of trustees of the school district for that period.

During the 10-year period in which a board of trustees is authorized to issue bonds as provided in subsection 1, all or a portion of the revenue generated by the school district’s property tax for debt service which is in excess of the amount required:

and (c) To maintain the reserve account required pursuant to subsection 5 of NRS 350.020, - 81st Session (2021) – 3 –  may be transferred by the board of trustees to the school district’s fund for capital projects established pursuant to NRS 387.328 and used to pay the cost of capital projects which can lawfully be paid from that fund.

H~~~~~ 21 - *SB450*81st Session (2021)