SB 47 — Revises provisions governing public borrowing. (BDR 30-395)

(ReprintedSenate withBill amendmentsNo. adopted on April 1, 2021) FIRST REPRINT S.B.

4747–Committee Son ENATEGovernment BAffairs ILLNCHAPTER.......... O.

47–COMMITTEE ON G OVERNMENT A FFAIRS (O NB EHALF OF THE STATE T REASURER ) PREFILED N OVEMBER 18, 2020 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions governing public borrowing.

(BDR 30-395) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

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

SenateFinance Billto No.issue certain interim debentures to pay for the general operations of the State until June 30, 2021, and established a procedure the Board is required to follow in order to determine whether to authorize such an issuance.

4 of the 31st Special Session authorized the State Board of State until June 30, 2021, and established a procedure the Board is required tof the follow in order to determine whether to authorize such an issuance.

or (2) the cash balance in the State General Fund is insufficient to meet expected future obligations anticipated to be paid within the immediately succeeding 120 days.

Upon receipt of such a certification, existing law requires the Board to determine the existence of either of those circumstances and, if so, authorizes the Board to issue general obligation interim debentures and and, special obligation interim debentures for the purpose of paying for the general operations of the State, subject to a maximum aggregate principal amount of any such interim debentures outstanding at one time of $150,000,000.

Session,section at1 pageof 2)Senate Bill No.

4, chapter 1, Statutes of Nevada 2020, 31st Special Session, at page 2) Sections 3 and 4 of this bill remove the expiration date, thereby authorizing the issuance of such interim debentures on or after July 1, 2021.

Section 1 of this bill -revises *SB47_R1* – 2 – Specifically, section 1 replaces the existing criteria underand whichprocedure the State Treasurer is required to submit a certification with a requirement for the Stateissuance Treasurer, if he or she determines that the cash balance in the State General Fund is insufficient to meet future obligations, to submit to the Secretary of the Interiminterim Financedebentures. Committee:

is required to submit a certification with a requirement for the State Treasurer, if he or she determines that the cash balance in the State General Fund is insufficient to meet future obligations, to submit to the Secretary of the Interim Finance Committee:

Section 1 then authorizes the Interim Finance Committee to consider the request and make a determination within 15 days after the date on which the certification and request are submitted regarding whether to approve or disapprove requires the request.Interim Finance Committee to establish by resolution the maximum:

If(1) theamount Interimof Financesuch Committeeinterim approvesdebentures thethat request,may sectionbe 1:issued;

(1) requires the Interim Finance Committee to establish by resolution the maximum amount of such interim debentures that may be issued;

Section 2 of this bill makes a conforming change by authorizing the Interim Finance Committee to perSenateperform Billthe No.duties prescribed by section 1 during a regular or special session.

4- of81st the 31st Special Session made(2021) several– other2 changes– to the existing law relating to state securities that expired on June 30, 2021.

4, chapter 1, Statutes of Nevada 2020, 31st Special Session, at page 5) Section 3 of - *SB47_R1* – 3 – this bill makes the temporary changes made by sections 2-6 of Senate Bill No.

EXPLANATION – Matter in bolded italics is new;

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

[If at any time the State Treasurer determines that the cash balance in the State General Fund has fallen below 25 percent of its lowest average monthly balance for the immediately preceding 36 months or that the cash balance in the State General Fund is insufficient to meet expected future obligations anticipated to be paid within the immediately succeeding 120 calendar days, the State Treasurer shall submit a certification of that fact to the State - 81st Session (2021) – 3 – Board of Finance.

On the date on which the State Treasurer submits the certification to the State Board of Finance, the State Treasurer shall transmit notice of the certification to the Director of the Legislative Counsel Bureau for transmittal to the Legislature if the Legislature is not in session,session.to or to the Interim Finance Committee if the2. Legislature is not in session.

2.

Any determination made by the State Board of Finance pursuant to subsection 2 is conclusive.] 2.balance in the State General Fund is insufficient to meet expectedh future obligations, the State Treasurer shall submit to the Secretary of the Interim Finance Committee:

If(a) atA anycertification timeof the State Treasurer determines that thefact cashand balance in the Stateamount General Fund is insufficient to meet expected future obligations, the State Treasurer shall submit to the Secretary of the Interiminsufficiency; Finance Committee:

- *SB47_R1* – 4 – (a) A certification of that fact and the amount of the insufficiency;

In determining whether to approve or disapprove the request, the Interim Finance Committee shall consider, among other things, the best interests of the State and - 81st Session (2021) – 4 – the intent of the Legislature in enacting this provision.

If the Interim Finance Committee approves the request, the Interim Finance Committee shall establish by resolution the maximum amount of such interim debentures that may be issued subject to the4.imIf the limitationInterim Finance Committee does not consider or disapproves a request pursuant to the procedure set forth in subsection 1.3 within the 15-day period, the State Board of Finance shall not issue any such interim debentures.

4.

If the Interim Finance Committee does not consider or disapproves a request pursuant to the procedure set forth in subsection 3 within the 15-day period, the State Board of Finance shall not issue any such interim debentures.

This section being necessary to secure the public health, safety, convenience and welfare, shall be liberally construed to effecteff[8.] its9. purposes.

[8.] 9.

Except as otherwise provided in subsection 2, the Interim Finance Committee may exercise the powers conferred - *SB47_R1* – 5 – upon it by law only when the Legislature is not in a regular or special session.

During a regular or special session, the Interim Finance Committee may also perform the duties imposed on it by NRS 228.1111, subsection 5 of NRS 284.115, NRS 285.070, subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS 323.020, NRS 323.050, subsection 1 of NRS 323.100, subsection 3 of NRS 341.126, NRS 341.142, paragraph (f) of subsection 1 of NRS 341.145, subsection 3 of NRS 349.073, NRS 353.220, 353.224, 353.2705 to 353.2771, inclusive, 353.288, 353.335, 353C.224, - 81st Session (2021) – 5 – 353C.226, paragraph (b) of subsection 4 of NRS 407.0762, NRS 428.375, 439.4905, 439.620, 439.630, 445B.830, subsection 1 of NRS 445C.320 and NRS 538.650.