AB435 - Revises provisions governing the funding of schools. (BDR 34-1087)

A.B. 435 - *AB435* ASSEMBLY BILL NO. 435–ASSEMBLYMEMBER KOENIG MARCH 17, 2025 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions governing the funding of schools. (BDR 34-1087) 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 education; creating the State Public Charter School Facility Fund; authorizing the Executive Director of the State Public Charter School Authority to request the issuance of bonds by the State Board of Finance for certain purposes; authorizing a school district to impose a property tax, the proceeds and interest of which must be remitted for credit to the Fund; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law creates the State Public Charter School Authority and requires, 1 under certain circumstances, the Authority to sponsor charter schools. (NRS 2 388A.150, 388A.220) Existing law requires each board of county commissioners to 3 levy a tax for the payment of interest and principal of outstanding bonds of the 4 county school district. (NRS 387.195) 5 Section 1 of this bill creates the State Public Charter School Facility Fund in 6 the State Treasury and requires the Executive Director of the Authority to 7 administer the Fund. Section 1 authorizes the Executive Director to request that the 8 State Board of Finance issue bonds, secured by the money in and revenue of the 9 Fund, to finance: (1) the construction, design or purchase of new and existing 10 buildings for a charter school; (2) projects to enlarge, remodel or repair existing 11 buildings or grounds for a charter school; (3) the acquiring of sites for building 12 charter schools or additional property for necessary purposes related to charter 13 schools; or (4) the rental or lease of buildings or grounds for a charter school. 14 Section 1 applies the provisions of the State Securities Law (chapter 349 of NRS) 15 to the issuance of such bonds and requires the State Board of Finance to determine 16 that sufficient revenue will be available to pay the interest and installments of 17 principal as they become due before issuing such bonds. Section 1 authorizes a 18 charter school that is sponsored by the Authority to apply to the Authority for 19 – 2 – - *AB435* financial assistance from the proceeds of such bonds for one of the purposes for 20 which such bonds may be issued. 21 Section 2 of this bill authorizes a school district: (1) to impose a tax similar to 22 the tax levied to pay interest and principal of bonds of a county school district; and 23 (2) if such a tax is imposed, to require the proceeds and interest earned on those 24 proceeds to be remitted to the State Treasurer for credit to the Fund created by 25 section 1 and used for the purposes set forth in section 1 with respect to charter 26 schools in the county. 27 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 387 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. The State Public Charter School Facility Fund is hereby 3 created in the State Treasury, to be administered by the Executive 4 Director of the State Public Charter School Authority. All money 5 received and held by the State Treasurer for the purpose of the 6 Fund must be deposited in the Fund. 7 2. The Executive Director may accept gifts and grants from 8 any source for deposit in the Fund. 9 3. The money in the Fund must be invested as the money in 10 other state funds is invested. All interest and income earned on 11 money in the Fund must be credited to the Fund. 12 4. Claims against the Fund must be paid as other claims 13 against the State are paid. 14 5. Money in the Fund does not revert to the State General 15 Fund at the end of the fiscal year, and the balance in the Fund 16 must be carried forward to the next fiscal year. 17 6. Money in the Fund must be used for the payment of 18 interest and redemption of outstanding bonds issued pursuant to 19 subsection 7. 20 7. The Executive Director may request that the State Board of 21 Finance issue bonds, secured by the money in and revenue of the 22 Fund, to finance: 23 (a) The construction, design or purchase of new and existing 24 buildings for a charter school, including, without limitation, 25 teacherages, dormitories, dining halls, gymnasiums and stadiums. 26 (b) Projects to enlarge, remodel or repair existing buildings or 27 grounds for a charter school, including, without limitation, 28 teacherages, dormitories, dining halls, gymnasiums and stadiums. 29 (c) The acquiring of sites for building charter schools, or 30 additional real property for necessary purposes related to charter 31 schools, including, without limitation, playgrounds, athletic fields 32 and sites for stadiums. 33 – 3 – - *AB435* (d) The rental or lease of buildings or grounds from a public 1 or private landlord for a charter school. 2 8. The provisions of the State Securities Law contained in 3 chapter 349 of NRS apply to the issuance of bonds pursuant to this 4 section. 5 9. The State Board of Finance, before issuing bonds 6 pursuant to subsection 7, must determine that sufficient revenue 7 will be available in the Fund to pay the interest and installments of 8 principal as they become due. 9 10. A charter school sponsored by the State Public Charter 10 School Authority may apply to the Authority for financial 11 assistance from the proceeds of bonds issued pursuant to 12 subsection 7 for one of the purposes described in that subsection. 13 11. The State Public Charter School Authority may adopt 14 regulations to carry out the provisions of this section. 15 Sec. 2. NRS 387.195 is hereby amended to read as follows: 16 387.195 1. Each board of county commissioners shall levy a 17 tax of 75 cents on each $100 of assessed valuation of taxable 18 property within the county for the support of the public schools. 19 2. The tax collected pursuant to subsection 1 on any assessed 20 valuation attributable to the net proceeds of minerals must not be 21 considered as available to pay liabilities of the fiscal year in which 22 the tax is collected but must be deferred for use in the subsequent 23 fiscal year. 24 3. In addition to any tax levied in accordance with subsection 25 1, each board of county commissioners [shall] : 26 (a) Shall levy a tax for the payment of interest and redemption 27 of outstanding bonds of the county school district [.] ; and 28 (b) May levy a tax for the payment of interest and redemption 29 of outstanding bonds issued pursuant to section 1 of this act with 30 respect to a charter school in the county. 31 4. The tax collected pursuant to subsection 1 and any interest 32 earned from the investment of the proceeds of that tax must be 33 remitted by the county treasurer to the State Treasurer for credit to 34 the State Education Fund. 35 5. The tax collected pursuant to paragraph (a) of subsection 3 36 and any interest earned from the investment of the proceeds of that 37 tax must be credited to the county school district’s debt service 38 fund. The tax collected pursuant to paragraph (b) of subsection 3 39 and any interest from the investment of the proceeds must be 40 remitted to the State Treasurer for credit to the State Public 41 Charter School Facility Fund created by section 1 of this act. 42 H