Nac: Chapter 348A - Issuance Of Private Activity Bonds

Link to law: http://www.leg.state.nv.us/nac/NAC-348A.html
Published: 2015

[Rev. 11/21/2013 4:06:36

PM--2013]



[NAC-348A Revised Date: 4-12]

CHAPTER 348A - ISSUANCE OF PRIVATE

ACTIVITY BONDS

348A.010         Definitions.

348A.020         “Allocation” defined.

348A.030         “Code” defined.

348A.040         “Department” defined.

348A.050         “Director” defined.

348A.060         “Local agency” defined.

348A.070         “Local government” defined.

348A.080         “Local population share” defined.

348A.085         “Office of Business Finance and

Planning” defined.

348A.090         “Private activity bond” defined.

348A.100         “Project” defined.

348A.110         “Special Committee” defined.

348A.120         “State agency” defined.

348A.130         “State ceiling” defined.

348A.140         “State estimate of the population”

defined.

348A.150         “Volume cap” defined.

348A.160         Determination of volume cap for

local government.

348A.165         Reports to Office of Business

Finance and Planning; consideration of whether local government or local agency

has abandoned any of its volume cap.

348A.170         Augmentation by Director of volume

cap for local government.

348A.180         Transfer of volume cap or local

population share by local government.

348A.190         Project by local agency without

local population share.

348A.200         Priority for local government that

transfers volume cap.

348A.210         Consent required for certain

augmentations and transfers.

348A.220         Reversion to Director of volume cap

for local government.

348A.230         Transfer of volume cap or state

ceiling by Director.

348A.240         Application for issuance of bonds;

allocation certificate.

348A.250         Director: Determination of state

ceiling; notification of local government; posting of information.

348A.260         Certificates: Issuance of bonds;

transfer of volume cap.

348A.270         Certificates: Official record;

duties of Director.

348A.280         Special Committee to Provide Advice

on Private Activity Bonds. [Effective through June 30, 2012.]

348A.280         Special Committee to Provide Advice

on Private Activity Bonds. [Effective July 1, 2012.]

348A.290         Requests for clarification, relief

or information.

348A.300         Fee for allocation of portion of

state ceiling.

 

 

 

      NAC 348A.010  Definitions. (NRS 348A.040)  As used

in this chapter, unless the context otherwise requires, the words and terms

defined in NAC 348A.020 to 348A.150,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002; R095-05, 10-31-2005)

      NAC 348A.020  “Allocation” defined. (NRS 348A.040)  “Allocation”

means the principal amount of private activity bonds which is reserved and

assigned to state and local governmental agencies authorized by law to issue

private activity bonds.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.030  “Code” defined. (NRS 348A.040)  “Code”

means the Internal Revenue Code of 1954, as amended.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.040  “Department” defined. (NRS 348A.040)  “Department”

means the Department of Business and Industry.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.050  “Director” defined. (NRS 348A.040)  “Director”

means the Director of the Department.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.060  “Local agency” defined. (NRS 348A.040)  “Local

agency” means any political subdivision of the State or of a local government

authorized to issue private activity bonds.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.070  “Local government” defined. (NRS 348A.040)  “Local

government” means any county or incorporated city in this State. The term

includes Carson City.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.080  “Local population share” defined. (NRS 348A.040)  “Local

population share” means:

     1.  For each incorporated city and Carson

City, a percentage calculated for each calendar year by dividing the most

recent state estimate of the population of the city by the most recent state

estimate of the population of the State.

     2.  For each county, a percentage calculated

for each calendar year by dividing the most recent state estimate of the

population of the unincorporated area of the county by the most recent state

estimate of the population of the State.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.085  “Office of Business Finance and Planning” defined. (NRS 348A.040)  “Office

of Business Finance and Planning” means the Office of Business Finance and

Planning created in the Department pursuant to NRS 232.522.

     (Added to NAC by Dep’t of Business & Industry by

R095-05, eff. 10-31-2005)

      NAC 348A.090  “Private activity bond” defined. (NRS 348A.040)  “Private

activity bond” has the meaning ascribed to it in 26 U.S.C. § 141.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.100  “Project” defined. (NRS 348A.040)  “Project”

means any construction, planned expenditure, program or other activity intended

to be financed by a private activity bond which is described in sufficient

detail to determine eligibility for financing.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.110  “Special Committee” defined. (NRS 348A.040)  “Special

Committee” means the Special Committee to Provide Advice on Private Activity

Bonds created pursuant to NAC 348A.280.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.120  “State agency” defined. (NRS 348A.040)  “State

agency” means the Department, any division thereof or any other entity

authorized to issue private activity bonds in the name of the State of Nevada

or any agency of the State.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.130  “State ceiling” defined. (NRS 348A.040)  “State

ceiling” has the meaning ascribed to it in 26 U.S.C. § 146(d).

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.140  “State estimate of the population” defined. (NRS 348A.040)  “State

estimate of the population” means the estimate of the population of the State

and its subdivisions published by the Department of Taxation and certified by

the Governor pursuant to NRS 360.285.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.150  “Volume cap” defined. (NRS 348A.040)  “Volume

cap” has the meaning ascribed to it in 26 U.S.C. § 146(b) and (c).

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.160  Determination of volume cap for local government. (NRS 348A.040)  The

local population share of a local government in this State will be used to

determine the volume cap for that government at the beginning of each calendar

year, pursuant to NRS 348A.020.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.165  Reports to Office of Business Finance and Planning; consideration

of whether local government or local agency has abandoned any of its volume

cap. (NRS

348A.040)

     1.  Each local government or local agency

which, on or before December 31 of any year, has indicated, through adoption of

a resolution or otherwise, that it has used, intends to use or has reserved its

entire allocation of volume cap, or a portion thereof, for a specific project

or use for that year, or which has carried forward any volume cap in any of the

immediately preceding 3 years, shall file a report concerning that year with

the Office of Business Finance and Planning of the Department.

     2.  The report must be filed on or before

February 15 of the subsequent year, and set forth with respect to the local

government or local agency for the year covered by the report:

     (a) The amount and source of its volume cap used

during that year for each project and authorized use;

     (b) The amount and authorized use of its volume cap

carried forward from that year to the subsequent year; and

     (c) The amount of its volume cap carried forward

from each of the immediately preceding 3 years and available during that year,

including:

          (1) The amount of such volume cap used during

that year;

          (2) The amount of such volume cap carried

forward to the subsequent year;

          (3) The amount of such volume cap abandoned

during that year; and

          (4) The name of the project or authorized use

to which such volume cap relates.

     3.  The Director will consider whether a

local government or local agency has abandoned any of its volume cap in

determining whether to consent to any augmentation or transfer of any volume

cap pursuant to NAC 348A.170 and 348A.180 or to approve the transfer of any volume cap

pursuant to NAC 348A.230.

     (Added to NAC by Dep’t of Business & Industry by

R140-06, eff. 9-18-2006)

      NAC 348A.170  Augmentation by Director of volume cap for local government. (NRS 348A.040)

     1.  A local government may apply to the

Director for a transfer of any portion of the state ceiling allocated to the

Director pursuant to NRS 348A.020,

or any augmentation of the Director’s allocation. The application must contain

such information as the Director may require.

     2.  The Director will augment the volume cap

for any local government only for a specific project.

     3.  The Director, upon the advice of the

Special Committee, may transfer to a local government a portion of the state

ceiling assigned as an allocation to or controlled by the Director, upon such

terms and conditions as the Director may determine.

     4.  An allocation made or transferred to a

local government by the Director is irrevocable upon the issuance of private

activity bonds for the project being financed pursuant thereto to the extent of

the principal amount of the bonds so issued. The local government to which the

allocation is made or the local agency to which the allocation is transferred

for the eventual issuance of private activity bonds may treat all or any

portion of the allocation or transfer as a carry forward pursuant to the Code

unless the allocation or transfer provides otherwise.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.180  Transfer of volume cap or local population share by local

government. (NRS

348A.040)

     1.  A local government may, by resolution,

transfer to any other local government located within the same county, all or

any portion of its volume cap or local population share for a specific project.

Any portion that is transferred is subject to the provisions of NAC 348A.220 in the same manner as the local

population share of the local government receiving the transfer. A copy of the

resolution must:

     (a) Be mailed to the Director and the Secretary of

the State Board of Finance;

     (b) Identify a representative of the local

government with whom the Director may communicate regarding the resolution; and

     (c) Provide a means of contacting the

representative.

     2.  A local government may transfer to the

Director, by resolution, all or any portion of its volume cap or local

population share for any specified project or use authorized by the Code for

private activity bonds, subject to the Director’s approval. The resolution must

identify a representative of the local government with whom the Director may

communicate regarding the resolution and must provide a means of contacting

that representative.

     3.  Any transfer made pursuant to this

section may be subject to such terms and conditions as may be established by

the local government in its resolution if the resolution requires the

beneficiary of the transfer to:

     (a) Notify the Director in writing as soon as

practicable of the occurrence or nonoccurrence of any term or condition that

would affect the disposition of the subject volume cap;

     (b) Identify a representative of the beneficiary of

the transfer with whom the Director may communicate regarding the resolution;

and

     (c) Provide a means of contacting that representative.

     4.  Any transfer is irrevocable upon the

issuance of private activity bonds for the project which is the subject of the

transfer to the extent of the principal amount of the bonds so issued.

     5.  The local government receiving the

transfer may elect to treat all or any portion of the transfer as a carry

forward, if permitted by the Code, unless the resolution making the transfer

provides otherwise. If the local government receiving the transfer elects to

treat all or any portion of the transfer as a carry forward, the local

government receiving the transfer shall provide to the Director a copy of the

federal tax form filed to evidence its election within 30 days after the form

is filed with the Internal Revenue Service.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002; R095-05, 10-31-2005)

      NAC 348A.190  Project by local agency without local population share. (NRS 348A.040)

     1.  A local agency which does not have a

local population share of the state ceiling shall apply to the local government

in which the project to be financed is located for use of the local

government’s local population share for the project.

     2.  If the project of the local agency

requires an augmentation of the local government’s local population share, the

local government may request an augmentation of its local population share for

the project in any manner permitted in this chapter.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.200  Priority for local government that transfers volume cap. (NRS 348A.040)  The

Director will give priority to the issuance of private activity bonds by or on

behalf of a local government, in an amount which does not exceed the amount of

the volume cap transferred to the Director by the local government in the

current calendar year.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A 11-13-90)

      NAC 348A.210  Consent required for certain augmentations and transfers. (NRS 348A.040)  No

augmentation of the volume cap for or transfer made to a local government

pursuant to NAC 348A.170 and 348A.180 may be transferred by the initial recipient

to any other local government, state agency or agency of any other state

without the written consent of the Director.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.220  Reversion to Director of volume cap for local government. (NRS 348A.040)

     1.  After September 1 of any calendar year,

the volume cap for the Director will, for the remainder of that calendar year,

be augmented by an amount equal to any unused portion of the volume cap

assigned for that calendar year to any local government pursuant to chapter 348A of NRS, and augmented

pursuant to this chapter, unless the local government adopts a resolution on or

before September 1 of that year indicating that it has used, intends to use or

has reserved its entire allocation, or a portion thereof, for a specified

project or use for the remainder of that calendar year.

     2.  Any portion of a local government’s

volume cap allocated for a calendar year which is not committed to a specified

project by September 1, or is not sufficiently identified or adequately

described in a resolution adopted by the local government, reverts to the

Director.

     3.  A copy of the resolution required by

subsection 1 must:

     (a) Identify a representative of the local

government with whom the Director may communicate regarding the resolution;

     (b) Provide a means of contacting that

representative;

     (c) Be mailed to the Director and Secretary of the

State Board of Finance; and

     (d) Be received on or before September 15 of the

calendar year to which it applies, or the local government’s local population

share reverts to the Director.

     4.  On October 1 of each calendar year, or as

soon thereafter as is practicable, the Director will:

     (a) File a certificate on a form designated by the

Secretary of the State Board of Finance, specifying the local governments

affected by the provisions of this section and the amount by which the

Director’s volume cap is augmented for the remainder of the calendar year;

     (b) File a copy of the certificate with the

Secretary of the State Board of Finance; and

     (c) Post a copy of the certificate on the website

of the Office of Business Finance and Planning.

     5.  If a local government has adopted and

mailed a resolution pursuant to the provisions of this section, it shall

determine not later than December 1 if the allocation reserved has been, or

will be, used by December 31 through the issuance of bonds or used by February

15 of the following year through a carry forward to a subsequent year and shall

immediately certify in writing to the Director the amount of the reserved

allocation which will be used.

     6.  If the local government fails to certify

on or before December 1 that any portion of a reserved allocation will be used

or if the Director does not receive written certification by December 10, the

unused portion of the reserved allocation reverts to the Director. As soon

thereafter as is practicable, the Director will:

     (a) File a certificate in the form and manner

provided in subsection 4;

     (b) Mail a copy of the certificate to the

representative of the local government;

     (c) File a copy of the certificate with the

Secretary of the State Board of Finance; and

     (d) Post a copy of the certificate on the website

of the Office of Business Finance and Planning.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002; R095-05, 10-31-2005)

      NAC 348A.230  Transfer of volume cap or state ceiling by Director. (NRS 348A.040)

     1.  An agency of this State or the agency of

any other state which has the authority to issue private activity bonds may

apply to the Director for a transfer of a portion of the Director’s volume cap

or any share of the state ceiling controlled by the Director. The application

must contain such information as the Director may require.

     2.  An application filed pursuant to

subsection 1 must be for a specific project.

     3.  The Director, upon the advice of the

Special Committee, may transfer to an applicant a portion of the state ceiling

controlled by the Director upon such terms and conditions as the Director may

determine.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88)

      NAC 348A.240  Application for issuance of bonds; allocation certificate. (NRS 348A.040)

     1.  An application for the issuance of

private activity bonds by the Director must be submitted on a form approved by

the Director. Before any private activity bonds are issued, the Director will

execute, issue and file with the Office of Business Finance and Planning and

the Secretary of the State Board of Finance an allocation certificate in a form

approved by the Secretary in the amount of the bonds to be issued for the

benefit of the applicant or the sponsor of the project, reserving a portion of

the state ceiling for the project for 45 days after the date of the issuance of

the certificate.

     2.  An allocation certificate issued pursuant

to this section may only be extended by the Director, upon the advice of the

Special Committee, for a term and under such conditions as he or she

determines. An extension will not be granted if it would cause the amount of

private activity bonds issued for the calendar year to exceed the state

ceiling.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R095-05, 10-31-2005)

      NAC 348A.250  Director: Determination of state ceiling; notification of local

government; posting of information. (NRS 348A.040)  The Director

will, at the beginning of each calendar year:

     1.  Determine the state ceiling for that

year, based upon the state estimate of the population;

     2.  Notify the appropriate representative of

each local government of the state ceiling and the amount of the state ceiling

allocated to that local government; and

     3.  Post the information concerning the

allocation for each local government on the website of the Office of Business

Finance and Planning.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R095-05, 10-31-2005)

      NAC 348A.260  Certificates: Issuance of bonds; transfer of volume cap. (NRS 348A.040)

     1.  The Director, any state agency, any local

government and any local agency which issues private activity bonds subject to

the limitations established in the Code shall file a certificate with the

Office of Business Finance and Planning describing the amount of the bonds and

the purpose for which they were issued. The certificate must be filed within 15

days after the date on which the bonds are issued.

     2.  A local government shall or the Director

will, within 5 days after transferring any portion of the volume cap of the

local government or the allocation of the state ceiling under the control of

the Director, file a certificate with the Office of Business Finance and

Planning indicating that the transfer was made. The transfer becomes effective

on the date on which the certificate is filed with the Office of Business

Finance and Planning.

     3.  If good cause is shown, the Special

Committee may grant upon referral from the Director a variance from the

provisions of this section if the variance does not cause the amount of private

activity bonds issued for the calendar year to exceed the state ceiling.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R095-05, 10-31-2005)

      NAC 348A.270  Certificates: Official record; duties of Director. (NRS 348A.040)  The

official record of all certificates filed pursuant to NAC

348A.260 must be maintained in the Office of Business Finance and Planning.

The Director will:

     1.  File a copy of each certificate executed

pursuant to NAC 348A.260 with the Secretary of the

State Board of Finance; and

     2.  Post a copy of each certificate on the

website of the Office of Business Finance and Planning.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R095-05, 10-31-2005)

      NAC 348A.280  Special Committee to Provide Advice on Private Activity Bonds.

[Effective through June 30, 2012.] (NRS 348A.040)

     1.  The Special Committee to Provide Advice

on Private Activity Bonds is hereby created, consisting of the following

members:

     (a) The Director, who will act as Chair.

     (b) The Executive Director of the Commission on

Economic Development, or a designee thereof.

     (c) The Administrator of the Housing Division of

the Department, or a designee thereof.

     (d) The Chief of the Office of Business Finance and

Planning, who shall act as the ex officio Secretary of the Committee and as the

Chair in the Director’s absence.

     (e) The Director of the Nevada Association of

Counties, or a designee thereof.

     (f) The Director of the Nevada League of Cities, or

a designee thereof.

     2.  The Director may appoint an additional

member to the Committee who:

     (a) Is a member of the general public;

     (b) Is knowledgeable in matters referred to the

Committee; and

     (c) Has no financial or pecuniary interest in

matters referred to the Committee pursuant to this chapter.

     3.  Four members of the Committee must be

present to conduct the business of the Committee.

     4.  The Committee shall consider any matter

referred to it pursuant to this chapter and may, if requested, advise the Governor,

the State Board of Finance and the Director on any matter concerning private

activity bonds.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002; R095-05, 10-31-2005)

      NAC 348A.280  Special

Committee to Provide Advice on Private Activity Bonds. [Effective July 1,

2012.] (NRS

348A.040)

     1.  The Special Committee to Provide Advice

on Private Activity Bonds is hereby created, consisting of the following

members:

     (a) The Director, who will act as Chair.

     (b) The Executive Director of the Office of

Economic Development, or a designee thereof.

     (c) The Administrator of the Housing Division of

the Department, or a designee thereof.

     (d) The Chief of the Office of Business Finance and

Planning, who shall act as the ex officio Secretary of the Committee and as the

Chair in the Director’s absence.

     (e) The Director of the Nevada Association of

Counties, or a designee thereof.

     (f) The Director of the Nevada League of Cities, or

a designee thereof.

     2.  The Director may appoint an additional

member to the Committee who:

     (a) Is a member of the general public;

     (b) Is knowledgeable in matters referred to the

Committee; and

     (c) Has no financial or pecuniary interest in

matters referred to the Committee pursuant to this chapter.

     3.  Four members of the Committee must be

present to conduct the business of the Committee.

     4.  The Committee shall consider any matter

referred to it pursuant to this chapter and may, if requested, advise the

Governor, the State Board of Finance and the Director on any matter concerning

private activity bonds.

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002; R095-05, 10-31-2005)

      NAC 348A.290  Requests for clarification, relief or information. (NRS 348A.040)  Any

person who wishes:

     1.  A clarification of the application of the

provisions of this chapter;

     2.  Relief from the strict application of any

provision of this chapter; or

     3.  Information concerning the procedures for

submitting requests to the Director or the Special Committee,

Ê may address a

written request therefor as follows:

 

     Attn: Director

     Department of Business and

Industry

     555 East Washington Avenue,

Suite 4900

     Las Vegas, Nevada 89101-1075

 

     (Added to NAC by Dep’t of Commerce, eff. 2-18-88; A by

Dep’t of Business & Industry by R038-02, 6-26-2002)

      NAC 348A.300  Fee for allocation of portion of state ceiling. (NRS 348A.040)

     1.  If a portion of the state ceiling for

private activity bonds allocated to or controlled by the Director is assigned,

transferred or committed to a recipient or an allocation certificate is issued

by the Director, the sponsor of the project shall pay or become obligated to

pay to the Director a fee for the allocation of that portion of the state

ceiling for private activity bonds in the amount of $600 per $1,000,000 or any

fraction thereof of the portion that is the subject of the transfer,

assignment, commitment or allocation certificate.

     2.  The payment must be remitted at the time

of:

     (a) The assignment or transfer;

     (b) The issuance of the allocation certificate; or

     (c) The issuance of the bonds,

Ê whichever

date of payment is agreed to by the Director and the applicant or recipient.

     3.  The Director will use the fees collected

pursuant to this section exclusively to support the operations of his or her

office that are in connection with the programs administered pursuant to the

provisions of chapters 348A and 349 of NRS and any regulations adopted

pursuant thereto.

     4.  The Director will establish the

appropriate accounts and procedures for the deposit and expenditure of money

received pursuant to this section.

     5.  This section applies to:

     (a) Any transfer or assignment of, or any

allocation certificate issued for, any portion of the state ceiling for private

activity bonds that is subject to the authority of the Director; and

     (b) Any other official act performed by the

Director that allocates, obligates, uses or commits any such portion of the

state ceiling for private activity bonds.

     (Added to NAC by Dep’t of Commerce, eff. 7-6-92; A by

Dep’t of Business & Industry by R104-08, 12-17-2008)
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