2005 Nevada Revised Statutes - Chapter 387 — Financial Support of School System

CHAPTER 387 - FINANCIAL SUPPORT OF SCHOOLSYSTEM

STATE MONEY

NRS 387.013 StatePermanent School Fund: Quarterly financial reports by State Controller.

NRS 387.015 StateTreasurer custodian of securities; liability on bond.

NRS 387.030 StateDistributive School Account: Creation; sources; distribution.

NRS 387.032 Fundfor School Improvement: Creation; use of interest and income; transfer of moneyto State General Fund.

NRS 387.035 StateController to keep separate accounts of money for schools.

NRS 387.040 Disbursementof money for public schools.

NRS 387.045 Restrictionson use of money for public schools.

NRS 387.047 Moneyfor pupils receiving special education: Separate accounting by school districtsand charter schools required.

FEDERAL MONEY

NRS 387.049 Requiredmanner of administration of money.

NRS 387.050 Appropriationsfor career and technical education: Acceptance and disbursement of money.

NRS 387.067 Appropriationsfor elementary and secondary education: Acceptance and disbursement of money.

PROGRAMS OF NUTRITION

NRS 387.070 Programof nutrition defined.

NRS 387.075 Regulationsand policies for disbursement of federal money; deposit of money with StateTreasurer.

NRS 387.080 Administration,maintenance and operation of programs; disbursement of money by StateTreasurer.

NRS 387.090 Powersof trustees of school districts and governing bodies of charter schools.

NRS 387.100 Studiesand appraisals.

NRS 387.105 Appropriationof state money; matching grant for participation in National School LunchProgram.

APPORTIONMENTS AND ALLOWANCES FROM STATE DISTRIBUTIVE SCHOOLACCOUNT

NRS 387.121 Legislativedeclaration; Nevada Plan.

NRS 387.1211 Definitions.

NRS 387.122 Establishmentof basic support guarantees.

NRS 387.1221 Basicsupport guarantee for special education program units; reallocation of unusedallocation; contract to provide special education program unit.

NRS 387.123 Countof pupils for apportionment; regulations for calculating enrollment and averagedaily attendance; regulations for maximum pupil-teacher ratio; exception frommaximum ratio for charter schools and distance education.

NRS 387.1233 Calculationof basic support.

NRS 387.1235 Localfunds available for public schools; reserve of net proceeds of minerals.

NRS 387.124 Quarterlyor monthly apportionments to school districts and charter schools; request foradvance by charter school.

NRS 387.1243 Apportionments:Adjustments to compensate for delinquent taxes on certain federal property;final computation; increase of basic support; underpayments and overpayments.

NRS 387.1245 Emergencyfinancial assistance: Conditions; procedures.

NRS 387.126 Verificationof reports of enrollment and attendance submitted by school district or charterschool.

SOURCES AND USE OF MONEY BY COUNTY SCHOOL DISTRICTS

NRS 387.170 Countyschool district fund: Creation; transfers.

NRS 387.175 Countyschool district fund: Composition.

NRS 387.177 Countyschool district buildings and sites fund: Creation; composition; expenditures.

NRS 387.180 Depositby trustees of money collected in county school district fund or buildings andsites fund.

NRS 387.185 Distributionof money for school districts and charter schools.

NRS 387.195 Levyof tax for county school district; deferred use of money attributable to netproceeds of minerals.

NRS 387.197 Levyof tax for enhancing safety and security of public schools; report on use ofproceeds.

NRS 387.205 Requiredand authorized uses of money in county school district fund.

NRS 387.206 Developmentof formula for determining minimum amount of money school districts must expendannually for textbooks, instructional supplies and instructional hardware;written notice of amount; determination of compliance; reduction in basicsupport allocation for failure to comply.

NRS 387.207 Requiredannual expenditures for library books, computer software, equipment relating toinstruction, and maintenance and repair; exception for certain schooldistricts.

NRS 387.210 Dutiesof county treasurer.

NRS 387.220 Penaltiesfor failure of county treasurer or county auditor to perform certain duties.

NRS 387.225 Moneyfor schools to be received and disbursed by tax collector or county treasurerwithout fee.

BUDGETS; FINANCIAL ACCOUNTABILITY; SHORT-TERM FINANCING; EXPENDITURES

NRS 387.300 Budgets:Preparation.

NRS 387.303 Budget:Annual reports by each school district required; compilation of reports bySuperintendent of Public Instruction.

NRS 387.304 Dutiesof Department.

NRS 387.3045 Reportof decline in ending balance of general fund of school district.

NRS 387.305 Medium-termobligations.

NRS 387.310 Orderfor payment of money; procedures for approval of orders and signing ofcumulative voucher sheets; issuance of warrants; limitations; cancellation.

NRS 387.315 Statementsof purpose and invoices to accompany orders; liability of trustees.

NRS 387.317 Rejectionof order by county auditor; return of order with endorsed statement forrejection.

NRS 387.319 Authorizedtravel by trustee: Payment of travel and subsistence; claims.

NRS 387.320 Quarterlypublication of expenditures of school district.

NRS 387.325 Limitationof actions on bills incurred by trustees.

FINANCING OF CONSTRUCTION OF SCHOOLS AND OTHERPROJECTS

Fund for Capital Projects

NRS 387.328 Establishment;purposes; accumulation of money for specified period; source; reversionprohibited; pledge of proceeds for payment on bonds.

NRS 387.3285 Taxfor fund for capital projects: Levy; contents of ballot question; deposit ofmoney; special election.

NRS 387.3286 Taxfor fund for capital projects: Forms for submission of ballot question;examples.

NRS 387.3287 Taxfor account for replacement of capital assets or construction of new buildingsfor schools to accommodate community growth.

 

Tax on Residential Construction

NRS 387.329 Definitions.

NRS 387.331 Impositionof tax in school district whose population is less than 50,000; limitation onamount; deposit of proceeds.

NRS 387.332 Dutyof Nevada Tax Commission to review need for tax.

 

Fund to Assist School Districts in Financing Capital Improvements

NRS 387.333 Creation;acceptance of gifts and grants; investment; payment of claims.

NRS 387.3335 Applicationfor grant; proof of emergency conditions; determinations by Department ofTaxation and State Public Works Board; approval by State Board of Examiners;award of grants.

 

Issuance of Bonds

NRS 387.335 Issuanceof general obligations by board of trustees: Authorized purposes; combiningquestions for voting; annual report required of school district under certaincircumstances. [Effective through June 30, 2007.]

NRS 387.335 Issuanceof general obligations by board of trustees: Authorized purposes; combiningquestions for voting. [Effective July 1, 2007.]

NRS 387.400 Limitationon bonded indebtedness of county school district.

NRS 387.510 Abolitionor change of boundaries of county school district; liability for bondedindebtedness.

 

Guarantee of Bonds With Money From State Permanent School Fund

NRS 387.513 ExecutiveDirector defined.

NRS 387.516 Applicationfor guarantee agreement; duties of State Treasurer; limitations on amount ofguarantee; ineligibility of certain obligations; investigation and report byExecutive Director.

NRS 387.519 Conditionsunder which State Treasurer may enter into guarantee agreement.

NRS 387.522 Limitationon total amount of outstanding bonds that may be guaranteed; certification byState Treasurer deemed pledge by this state.

NRS 387.524 Guaranteeagreement: Required contents; approvals required.

NRS 387.526 Loanto school district upon failure to make timely payment on debt service ofguaranteed bonds: Duties of State Treasurer and Executive Director; interest;restrictions on school district.

NRS 387.528 Repaymentof loan by school district; duty of State Treasurer to withhold other moneyfrom school district upon failure to repay.

 

Joint Facilities and Projects

NRS 387.531 Jointacquisition authorized; issuance of negotiable general obligation bonds.

NRS 387.541 Issuanceof bonds: Approval of debt management commission and voters required;applicability of Local Government Securities Law.

NRS 387.551 Jointoperation and maintenance: Powers of districts.

NRS 387.561 Interdistrictagreements and contracts.

NRS 387.571 Powers,rights and benefits of officers, agents and employees of districts preserved.

NRS 387.581 Publicpurpose.

NRS 387.591 Liberalconstruction; other powers preserved.

REVIEW OF SCHOOL DISTRICTS BASED UPON FINANCIAL MANAGEMENTPRINCIPLES

NRS 387.602 Managementprinciples defined.

NRS 387.606 Useof school buses for commercial advertising: Authorization; conditions;establishment of special revenue fund; authorized use of fees. [Replaced inrevision by NRS 387.800.]

NRS 387.607 Applicabilityto extent money is available.

NRS 387.613 Reviewof school districts; recommendations by Legislative Auditor; selection ofschool districts by Legislature; qualifications and selection of consultant toconduct reviews; monitoring and oversight of consultant; self-assessment byschool district required.

NRS 387.618 Establishmentand duties of oversight committee to assist in process of review.

NRS 387.622 Financialmanagement principles and areas for review; additional review by consultantauthorized.

NRS 387.626 Dutiesof consultant; Department required to provide technical support; availabilityof books, accounts and records necessary for conducting review.

NRS 387.631 Finalwritten report of review; issuance of preliminary report to school district;response by school district; exemption from next review for certain schooldistricts; availability of reports to public.

NRS 387.636 Schooldistrict required to hold public meeting concerning final report; vote whetherto adopt corrective action plan; effect of failure to vote within prescribedtime; appearance before Legislature under certain circumstances.

NRS 387.639 Reportsby school district concerning progress on corrective action plan; review ofreports by Legislative Auditor and Legislature; exemption from next review forcertain school districts.

NRS 387.644 Annualreporting by school districts exempt from review.

MISCELLANEOUS PROVISIONS

NRS 387.800 Useof school buses for commercial advertising: Authorization; conditions;establishment of special revenue fund; authorized use of fees.

_________

 

STATE MONEY

NRS 387.013 StatePermanent School Fund: Quarterly financial reports by State Controller. The State Controller shall, each quarter, prepare acomplete financial report of the State Permanent School Fund. A copy of thisreport must be submitted to the State Treasurer and to the Fiscal AnalysisDivision of the Legislative Counsel Bureau.

(Added to NRS by 1969, 823; A 1973, 1668; 1977, 349;1981, 362)

NRS 387.015 StateTreasurer custodian of securities; liability on bond. TheState Treasurer shall be the legal custodian of all securities in which themoneys of the State Permanent School Fund are or may hereafter be invested. Heshall be liable on his official bond for their safekeeping.

[88:32:1956]

NRS 387.030 StateDistributive School Account: Creation; sources; distribution. All money derived from interest on the State PermanentSchool Fund, together with all money derived from other sources provided bylaw, must:

1. Be placed in the State Distributive School Accountwhich is hereby created in the State General Fund; and

2. Except as otherwise provided in NRS 387.528, be apportioned among theseveral school districts and charter schools of this State at the times and inthe manner provided by law.

[91:32:1956](NRS A 1977, 231; 1987, 420; 1997, 1857,2709; 1999, 599)

NRS 387.032 Fundfor School Improvement: Creation; use of interest and income; transfer of moneyto State General Fund.

1. There is hereby created as a special revenue fund,the Fund for School Improvement to be administered by the Superintendent ofPublic Instruction. The superintendent may accept gifts and grants from anysource for deposit in the Fund. All legislative appropriations, gifts andgrants made to the Fund become a part of the principal of the Fund which mayonly be reduced pursuant to subsection 3 or by specific legislative action.

2. The interest and income earned from the money inthe Fund must be used by the Superintendent to carry out programs of schoolimprovement identified by the Legislature. No such expenditure may be madeunless authorized by the Legislature or by the Interim Finance Committee if theLegislature is not in session.

3. The State Board of Examiners may, upon making adetermination that any portion of the principal of the money in the Fund isnecessary to meet existing or future obligations of the State, recommend to theInterim Finance Committee, or the Senate Committee on Finance and the AssemblyCommittee on Ways and Means when the Legislature is in session, that the amountso needed be transferred from the Fund to the State General Fund. Upon approvalof the appropriate committee or committees, the money may be so transferred.

(Added to NRS by 1989, 2106; A 1997, 124; 1999, 2838)(Substitutedin revision for NRS 388.730)

NRS 387.035 StateController to keep separate accounts of money for schools. The State Controller shall keep a separate and distinctaccount of:

1. The State Permanent School Fund.

2. The interest and income of the State PermanentSchool Fund.

3. All moneys derived from special appropriations orotherwise for the support of public schools.

[92:32:1956]

NRS 387.040 Disbursementof money for public schools.

1. Except as otherwise provided in subsection 2 and NRS 387.528, the State Treasurer shall payover all public school money received by him for the support of schooldistricts only on warrants of the State Controller issued upon the orders ofthe Superintendent of Public Instruction in favor of county treasurers. Whenendorsed, the orders are valid vouchers in the hands of the State Controllerfor the disbursement of public school money.

2. Except as otherwise provided in NRS 387.528, if the board of trustees of aschool district establishes and administers a separate account pursuant to theprovisions of NRS 354.603, the StateTreasurer shall pay over to the school district all public school money due theschool district.

3. The State Treasurer shall pay over all publicschool money received by him for the support of charter schools only onwarrants of the State Controller issued upon the orders of the Superintendentof Public Instruction in favor of the charter schools. When endorsed, theorders are valid vouchers in the hands of the State Controller for the disbursementof public school money.

[93:32:1956](NRS A 1979, 1583; 1981, 362; 1995,2486; 1997, 1857, 2710; 1999,599)

NRS 387.045 Restrictionson use of money for public schools.

1. No portion of the public school funds or of themoney specially appropriated for the purpose of public schools shall be devotedto any other object or purpose.

2. No portion of the public school funds shall in anyway be segregated, divided or set apart for the use or benefit of any sectarianor secular society or association.

[94:32:1956]

NRS 387.047 Moneyfor pupils receiving special education: Separate accounting by school districtsand charter schools required.

1. Except as otherwise provided in this section, eachschool district and charter school shall separately account for all moneyreceived for the instruction of and the provision of related services to pupilswith disabilities and gifted and talented pupils described by NRS 388.520.

2. The separate accounting must include:

(a) The amount of money provided to the school districtor charter school for special education for basic support;

(b) Transfers of money from the general fund of theschool district or charter school needed to balance the special revenue fund;and

(c) The cost of:

(1) Instruction provided by licensed specialeducation teachers and supporting staff;

(2) Related services, including, but not limitedto, services provided by psychologists, therapists and health-relatedpersonnel;

(3) Transportation of the pupils withdisabilities and gifted and talented pupils to and from school;

(4) The direct supervision of educational andsupporting programs; and

(5) The supplies and equipment needed forproviding special education.

3. Money received from federal sources must be:

(a) Accounted for separately; and

(b) Excluded from the accounting required pursuant tothis section.

(Added to NRS by 1993, 1430; A 1995, 574; 1997, 1857)

FEDERAL MONEY

NRS 387.049 Requiredmanner of administration of money. When administeringmoney received from the Federal Government, the Superintendent of Public Instruction,the Department or the State Board, as applicable, shall, to the extentpracticable, administer the money in a manner that is designed to attain thegoals of the Legislature regarding educational reform in this State.

(Added to NRS by 1999, 2925)

NRS 387.050 Appropriationsfor career and technical education: Acceptance and disbursement of money.

1. The State of Nevada accepts the provisions of, andall of the money provided by, the Vocational Education Act of 1963, and anyamendments thereof or supplements thereto.

2. In addition to the provisions of subsection 1, theState Board for Career and Technical Education may accept, and adoptregulations or establish policies for the disbursement of, money appropriatedby any Act of Congress and apportioned to the State of Nevada for use inconnection with the program for career and technical education.

3. In accepting the benefits of the Acts of Congressreferred to in subsections 1 and 2, the State of Nevada agrees to comply withall of their provisions and to observe all of their requirements.

4. The State Treasurer is designated custodian of allmoney received by the State of Nevada from the appropriations made by the Actsof Congress referred to in subsections 1 and 2, and he may receive and providefor the proper custody thereof and make disbursements therefrom in the mannerprovided in the Acts and for the purposes therein specified on warrants of theState Controller issued upon the order of the Executive Officer of the StateBoard for Career and Technical Education.

5. On warrants of the State Controller issued upon theorder of the Executive Officer of the State Board for Career and TechnicalEducation pursuant to regulations or policies of the Board, the State Treasurershall also pay out any money appropriated by the State of Nevada to carry outthe provisions of this section.

[95:32:1956](NRS A 1957, 212; 1979, 1583; 1985, 811;2005, 1046)

NRS 387.067 Appropriationsfor elementary and secondary education: Acceptance and disbursement of money.

1. The State Board may accept and adopt regulations orestablish policies for the disbursement of money appropriated and apportionedto the State of Nevada, the school districts or the charter schools of theState of Nevada by the Congress of the United States for purposes of elementaryand secondary education.

2. The Superintendent of Public Instruction shalldeposit the money with the State Treasurer, who shall make disbursementstherefrom on warrants of the State Controller issued upon the order of theSuperintendent of Public Instruction.

3. The State Board, any school district within thisState and any governing body of any charter school in this State may, withinthe limits provided in this section, make such applications, agreements andassurances to the Federal Government, and conduct such programs as may berequired as a condition precedent to the receipt of money appropriated by anyAct of Congress for purposes of elementary and secondary education. Such anagreement or assurance must not require this State, or a school district orgoverning body to provide money above the amount appropriated or otherwiselawfully available for that purpose.

(Added to NRS by 1965, 711; A 1979, 1584; 1983, 308;1997, 1858)

PROGRAMS OF NUTRITION

NRS 387.070 Programof nutrition defined. As used in NRS 387.070 to 387.105, inclusive, program of nutritionmeans a program under which food is served to or nutritional education andassistance are provided for children and adults by any public school, privateschool or public or private institution on a nonprofit basis, including anysuch program for which assistance may be made available out of moneyappropriated by the Congress of the United States. The term includes, but isnot limited to, a school lunch program.

[100:32:1956](NRS A 1975, 154; 1979, 1584; 1983,314; 1993, 2878)

NRS 387.075 Regulationsand policies for disbursement of federal money; deposit of money with StateTreasurer.

1. The State Board of Education may accept and adoptregulations or establish policies for the disbursement of money appropriated byany Act of Congress and apportioned to the State of Nevada for use inconnection with programs of nutrition.

2. The Superintendent of Public Instruction shalldeposit with the State Treasurer all money received from the Federal Governmentor from other sources for programs of nutrition.

[101:32:1956](NRS A 1977, 231; 1979, 1584; 1983,314; 1993, 2878)

NRS 387.080 Administration,maintenance and operation of programs; disbursement of money by StateTreasurer.

1. The State Board may enter into agreements with anyagency of the Federal Government, any board of trustees of a school district,any governing body of a charter school or any other entity or person. The StateBoard may establish policies and prescribe regulations, authorize theemployment of such personnel and take such other action as it considersnecessary to provide for the establishment, maintenance, operation andexpansion of any program of nutrition operated by a school district or of anyother such program for which state or federal assistance is provided.

2. The State Treasurer shall disburse federal, stateand other money designated for a program of nutrition on warrants of the StateController issued upon the order of the Superintendent of Public Instructionpursuant to regulations or policies of the State Board.

3. The Superintendent of Public Instruction may:

(a) Give technical advice and assistance to any personor entity in connection with the establishment and operation of any program ofnutrition.

(b) Assist in training personnel engaged in theoperation of any program of nutrition.

[102:32:1956](NRS A 1979, 1585; 1983, 314; 1993,2878; 1997, 1858)

NRS 387.090 Powersof trustees of school districts and governing bodies of charter schools. The board of trustees of each school district and thegoverning body of each charter school may:

1. Operate or provide for the operation of programs ofnutrition in the public schools under their jurisdiction.

2. Use therefor money disbursed to them pursuant tothe provisions of NRS 387.070 to 387.105, inclusive, gifts, donations andother money received from the sale of food under those programs.

3. Deposit the money in one or more accounts in one ormore banks or credit unions within the State.

4. Contract with respect to food, services, supplies,equipment and facilities for the operation of the programs.

[104:32:1956](NRS A 1963, 79; 1979, 1585; 1983, 315;1993, 2879; 1997, 1858; 1999, 1489)

NRS 387.100 Studiesand appraisals. The State Board of Educationmay, to the extent that money is available for that purpose, and in cooperationwith other appropriate agencies and organizations:

1. Conduct studies of methods of improving andexpanding programs of nutrition and promoting nutritional education in thepublic schools.

2. Conduct appraisals of the nutritive benefits ofprograms of nutrition.

[106:32:1956](NRS A 1979, 1585; 1983, 315; 1993,2879)

NRS 387.105 Appropriationof state money; matching grant for participation in National School LunchProgram.

1. To enable the State Boardto provide for the establishment, maintenance, operation and expansion ofprograms of nutrition, money must be provided by legislative appropriation fromthe General Fund as a budgeted part of the appropriation for the support of theDepartment and must be paid out on claims as other claims against the State arepaid.

2. In addition to the amounts provided pursuant tosubsection 1, money must be provided by legislative appropriation in an amountthat satisfies the amount required as a matching grant from this State forparticipation in the National School Lunch Program, 42 U.S.C. 1751 et seq.,which must be designated as the Nutrition State Match. For those schooldistricts that participate in the National School Lunch Program, the amountappropriated must be a reduction in the total amount of basic support calculatedfor those school districts pursuant to NRS387.1233 and must be distributed in accordance with NRS 387.124. Each school district receivingmoney that is designated as a Nutrition State Match shall verify that themoney is used to support the National School Lunch Program in the publicschools located within the school district.

[107:32:1956](NRS A 1979, 1586; 1983, 315; 1993,2879; 2005, 1262)

APPORTIONMENTS AND ALLOWANCES FROM STATE DISTRIBUTIVESCHOOL ACCOUNT

NRS 387.121 Legislativedeclaration; Nevada Plan. The Legislature declaresthat the proper objective of state financial aid to public education is toensure each Nevada child a reasonably equal educational opportunity.Recognizing wide local variations in wealth and costs per pupil, this Stateshould supplement local financial ability to whatever extent necessary in eachschool district to provide programs of instruction in both compulsory andelective subjects that offer full opportunity for every Nevada child to receivethe benefit of the purposes for which public schools are maintained. Thereforethe quintessence of the States financial obligation for such programs can beexpressed in a formula partially on a per pupil basis and partially on a perprogram basis as: State financial aid to school districts equals the differencebetween school district basic support guarantee and local available fundsproduced by mandatory taxes minus all the local funds attributable to pupilswho reside in the county but attend a charter school. This formula isdesignated the Nevada Plan.

(Added to NRS by 1967, 889; A 1973, 1419; 1997, 1859)

NRS 387.1211 Definitions. As used in NRS 387.121to 387.126, inclusive:

1. Average daily attendance means the total numberof pupils attending a particular school each day during a period of reportingdivided by the number of days school is in session during that period.

2. Enrollment means the count of pupils enrolled inand scheduled to attend programs of instruction of a school district or acharter school at a specified time during the school year.

3. Special education program unit means an organizedunit of special education and related services which includes full-timeservices of persons licensed by the Superintendent of Public Instruction orother appropriate licensing body, providing a program of instruction inaccordance with minimum standards prescribed by the State Board.

(Added to NRS by 1979, 1582; A 1987, 994; 1991, 1547;1997, 1859; 1999,2925)

NRS 387.122 Establishmentof basic support guarantees. For making theapportionments of the State Distributive School Account in the State GeneralFund required by the provisions of this title, the basic support guarantee perpupil for each school district and the basic support guarantee for each specialeducation program unit maintained and operated during at least 9 months of aschool year are established by law for each school year.

(Added to NRS by 1967, 889; A 1969, 337, 1172; 1971,951; 1973, 1420; 1975, 1373; 1977, 9, 699; 1979, 1586; 1987, 420)

NRS 387.1221 Basicsupport guarantee for special education program units; reallocation of unusedallocation; contract to provide special education program unit.

1. The basic support guarantee for any specialeducation program unit maintained and operated during a period of less than 9school months is in the same proportion to the amount established by law forthat school year as the period during which the program unit actually wasmaintained and operated is to 9 school months.

2. Any unused allocations for special educationprogram units may be reallocated to other school districts or charter schoolsby the Superintendent of Public Instruction. In such a reallocation, firstpriority must be given to special education programs with statewideimplications, and second priority must be given to special education programsmaintained and operated within counties whose allocation is less than or equalto the amount provided by law. If there are more unused allocations thannecessary to cover programs of first and second priority but not enough tocover all remaining special education programs eligible for payment fromreallocations, then payment for the remaining programs must be prorated. Ifthere are more unused allocations than necessary to cover programs of firstpriority but not enough to cover all programs of second priority, then paymentfor programs of second priority must be prorated. If unused allocations are notenough to cover all programs of first priority, then payment for programs offirst priority must be prorated.

3. A school district or a charter school may, afterreceiving the approval of the Superintendent of Public Instruction, contractwith any person, state agency or legal entity to provide a special educationprogram unit for pupils of the district pursuant to NRS 388.440 to 388.520, inclusive.

(Added to NRS by 1979, 1582; A 1993, 2156; 1997,1859)

NRS 387.123 Countof pupils for apportionment; regulations for calculating enrollment and averagedaily attendance; regulations for maximum pupil-teacher ratio; exception frommaximum ratio for charter schools and distance education.

1. The count of pupils for apportionment purposesincludes all pupils who are enrolled in programs of instruction of the schooldistrict, including, without limitation, a program of distance educationprovided by the school district, or pupils who reside in the county in whichthe school district is located and are enrolled in any charter school,including, without limitation, a program of distance education provided by acharter school, for:

(a) Pupils in the kindergarten department.

(b) Pupils in grades 1 to 12, inclusive.

(c) Pupils not included under paragraph (a) or (b) whoare receiving special education pursuant to the provisions of NRS 388.440 to 388.520, inclusive.

(d) Pupils who reside in the county and are enrolledpart time in a program of distance education if an agreement is filed with theSuperintendent of Public Instruction pursuant to NRS 388.854 or 388.858, as applicable.

(e) Children detained in facilities for the detentionof children, alternative programs and juvenile forestry camps receivinginstruction pursuant to the provisions of NRS388.550, 388.560 and 388.570.

(f) Pupils who are enrolled in classes pursuant tosubsection 4 of NRS 386.560 and pupilswho are enrolled in classes pursuant to subsection 5 of NRS 386.580.

(g) Pupils who are enrolled in classes pursuant tosubsection 3 of NRS 392.070.

(h) Pupils who are enrolled in classes and takingcourses necessary to receive a high school diploma, excluding those pupils whoare included in paragraphs (d), (f) and (g).

2. The State Board shall establish uniform regulationsfor counting enrollment and calculating the average daily attendance of pupils.In establishing such regulations for the public schools, the State Board:

(a) Shall divide the school year into 10 school months,each containing 20 or fewer school days, or its equivalent for those publicschools operating under an alternative schedule authorized pursuant to NRS 388.090.

(b) May divide the pupils in grades 1 to 12, inclusive,into categories composed respectively of those enrolled in elementary schoolsand those enrolled in secondary schools.

(c) Shall prohibit the counting of any pupil specifiedin subsection 1 more than once.

3. Except as otherwise provided in subsection 4 and NRS 388.700, the State Board shallestablish by regulation the maximum pupil-teacher ratio in each grade, and foreach subject matter wherever different subjects are taught in separate classes,for each school district of this State which is consistent with:

(a) The maintenance of an acceptable standard ofinstruction;

(b) The conditions prevailing in the school districtwith respect to the number and distribution of pupils in each grade; and

(c) Methods of instruction used, which may includeeducational television, team teaching or new teaching systems or techniques.

If theSuperintendent of Public Instruction finds that any school district is maintainingone or more classes whose pupil-teacher ratio exceeds the applicable maximum,and unless he finds that the board of trustees of the school district has madeevery reasonable effort in good faith to comply with the applicable standard,he shall, with the approval of the State Board, reduce the count of pupils forapportionment purposes by the percentage which the number of pupils attendingthose classes is of the total number of pupils in the district, and the StateBoard may direct him to withhold the quarterly apportionment entirely.

4. The provisions of subsection 3 do not apply to acharter school or a program of distance education provided pursuant to NRS 388.820 to 388.874, inclusive.

(Added to NRS by 1967, 890; A 1969, 444, 1173; 1971,288; 1973, 1423; 1979, 1586; 1989, 1814, 2105; 1991, 1547; 1993, 2156; 1997,1860; 1999, 3306;2001, 1483, 3143; 2003, 1136, 3214; 2005, 1667)

NRS 387.1233 Calculationof basic support.

1. Except as otherwise provided in subsection 2, basicsupport of each school district must be computed by:

(a) Multiplying the basic support guarantee per pupilestablished for that school district for that school year by the sum of:

(1) Six-tenths the count of pupils enrolled inthe kindergarten department on the last day of the first school month of theschool district for the school year, including, without limitation, the countof pupils who reside in the county and are enrolled in any charter school onthe last day of the first school month of the school district for the schoolyear.

(2) The count of pupils enrolled in grades 1 to12, inclusive, on the last day of the first school month of the school districtfor the school year, including, without limitation, the count of pupils whoreside in the county and are enrolled in any charter school on the last day ofthe first school month of the school district for the school year.

(3) The count of pupils not included undersubparagraph (1) or (2) who are enrolled full time in a program of distanceeducation provided by that school district or a charter school located withinthat school district on the last day of the first school month of the schooldistrict for the school year.

(4) The count of pupils who reside in the countyand are enrolled:

(I) In a public school of the schooldistrict and are concurrently enrolled part time in a program of distanceeducation provided by another school district or a charter school on the last dayof the first school month of the school district for the school year, expressedas a percentage of the total time services are provided to those pupils perschool day in proportion to the total time services are provided during aschool day to pupils who are counted pursuant to subparagraph (2).

(II) In a charter school and areconcurrently enrolled part time in a program of distance education provided bya school district or another charter school on the last day of the first schoolmonth of the school district for the school year, expressed as a percentage ofthe total time services are provided to those pupils per school day inproportion to the total time services are provided during a school day topupils who are counted pursuant to subparagraph (2).

(5) The count of pupils not included under subparagraph(1), (2), (3) or (4), who are receiving special education pursuant to theprovisions of NRS 388.440 to 388.520, inclusive, on the last day of thefirst school month of the school district for the school year, excluding thecount of pupils who have not attained the age of 5 years and who are receivingspecial education pursuant to subsection 1 of NRS388.490 on that day.

(6) Six-tenths the count of pupils who have notattained the age of 5 years and who are receiving special education pursuant tosubsection 1 of NRS 388.490 on the lastday of the first school month of the school district for the school year.

(7) The count of children detained in facilitiesfor the detention of children, alternative programs and juvenile forestry campsreceiving instruction pursuant to the provisions of NRS 388.550, 388.560 and 388.570 on the last day of the first schoolmonth of the school district for the school year.

(8) The count of pupils who are enrolled inclasses for at least one semester pursuant to subsection 4 of NRS 386.560, subsection 5 of NRS 386.580 or subsection 3 of NRS 392.070, expressed as a percentage ofthe total time services are provided to those pupils per school day inproportion to the total time services are provided during a school day topupils who are counted pursuant to subparagraph (2).

(b) Multiplying the number of special education programunits maintained and operated by the amount per program established for thatschool year.

(c) Adding the amounts computed in paragraphs (a) and(b).

2. If the enrollment of pupils in a school district ora charter school that is located within the school district on the last day ofthe first school month of the school district for the school year is less thanthe enrollment of pupils in the same school district or charter school on thelast day of the first school month of the school district for either or both ofthe immediately preceding 2 school years, the largest number must be used fromamong the 3 years for purposes of apportioning money from the StateDistributive School Account to that school district or charter school pursuantto NRS 387.124.

3. Pupils who are excused from attendance atexaminations or have completed their work in accordance with the rules of theboard of trustees must be credited with attendance during that period.

4. Pupils who are incarcerated in a facility orinstitution operated by the Department of Corrections must not be counted forthe purpose of computing basic support pursuant to this section. The averagedaily attendance for such pupils must be reported to the Department ofEducation.

5. Pupils who are enrolled in courses which areapproved by the Department as meeting the requirements for an adult to earn ahigh school diploma must not be counted for the purpose of computing basicsupport pursuant to this section.

(Added to NRS by 1977, 704; A 1979, 1243, 1588; 1981,299; 1985, 1868; 1987, 135, 1639, 1640; 1989, 1554, 1814, 1816; 1991, 1548;1993, 2157; 1997, 1861; 1999, 3307; 2001, 1484, 3144; 2001 Special Session,237; 2003, 289,1137; 2005, 1668)

NRS 387.1235 Localfunds available for public schools; reserve of net proceeds of minerals.

1. Except as otherwise provided in subsection 2, localfunds available are the sum of:

(a) The amount of one-third of the tax collectedpursuant to subsection 1 of NRS 387.195for the school district as certified by the Department of Taxation for theconcurrent school year; and

(b) The proceeds of the local school support taximposed by chapter 374 of NRS, excluding anyamounts required to be remitted pursuant to NRS360.850 and 360.855. The Departmentof Taxation shall furnish an estimate of these proceeds to the Superintendentof Public Instruction on or before July 15 for the fiscal year then begun, andthe Superintendent shall adjust the final apportionment of the current schoolyear to reflect any difference between the estimate and actual receipts.

2. The amount computed under subsection 1 that isattributable to any assessed valuation attributable to the net proceeds ofminerals must be held in reserve and may not be considered as local fundsavailable until the succeeding fiscal year.

(Added to NRS by 1977, 705; A 1979, 1243, 1588; 1983,1906; 1999, 2925;2003, 2941; 2005, 2080, 2375)

NRS 387.124 Quarterlyor monthly apportionments to school districts and charter schools; request foradvance by charter school. Except as otherwiseprovided in this section and NRS 387.528:

1. On or before August 1, November 1, February 1 andMay 1 of each year, the Superintendent of Public Instruction shall apportionthe State Distributive School Account in the State General Fund among theseveral county school districts and charter schools in amounts approximatingone-fourth of their respective yearly apportionments less any amount set asideas a reserve. The apportionment to a school district, computed on a yearlybasis, equals the difference between the basic support and the local fundsavailable pursuant to NRS 387.1235,minus all the funds attributable to pupils who reside in the county but attenda charter school and all the funds attributable to pupils who reside in thecounty and are enrolled full time or part time in a program of distanceeducation provided by another school district or a charter school. Noapportionment may be made to a school district if the amount of the local fundsexceeds the amount of basic support. If an agreement is not filed for a pupilwho is enrolled in a program of distance education as required by NRS 388.854, the Superintendent of PublicInstruction shall not apportion money for that pupil to the board of trusteesof the school district in which the pupil resides, or the board of trustees orgoverning body that provides the program of distance education.

2. Except as otherwise provided in subsection 3, theapportionment to a charter school, computed on a yearly basis, is equal to thesum of the basic support per pupil in the county in which the pupil residesplus the amount of local funds available per pupil pursuant to NRS 387.1235 and all other funds availablefor public schools in the county in which the pupil resides minus all the fundsattributable to pupils who are enrolled in the charter school but areconcurrently enrolled part time in a program of distance education provided bya school district or another charter school. If the apportionment per pupil toa charter school is more than the amount to be apportioned to the schooldistrict in which a pupil who is enrolled in the charter school resides, theschool district in which the pupil resides shall pay the difference directly tothe charter school.

3. The apportionment to a charter school that issponsored by the State Board, computed on a yearly basis, is equal to the sumof the basic support per pupil in the county in which the pupil resides plusthe amount of local funds available per pupil pursuant to NRS 387.1235 and all other funds availablefor public schools in the county in which the pupil resides, minus all fundsattributable to pupils who are enrolled in the charter school but areconcurrently enrolled part time in a program of distance education provided bya school district or another charter school.

4. In addition to the apportionments made pursuant tothis section, an apportionment must be made to a school district or charterschool that provides a program of distance education for each pupil who isenrolled part time in the program if an agreement is filed for that pupilpursuant to NRS 388.854 or 388.858, as applicable. The amount of theapportionment must be equal to the percentage of the total time services areprovided to the pupil through the program of distance education per school dayin proportion to the total time services are provided during a school day topupils who are counted pursuant to subparagraph (2) of paragraph (a) of subsection1 of NRS 387.1233 for the schooldistrict in which the pupil resides.

5. The governing body of a charter school may submit awritten request to the Superintendent of Public Instruction to receive, in thefirst year of operation of the charter school, an apportionment 30 days beforethe apportionment is required to be made pursuant to subsection 1. Upon receiptof such a request, the Superintendent of Public Instruction may make theapportionment 30 days before the apportionment is required to be made. Acharter school may receive all four apportionments in advance in its first yearof operation.

6. The Superintendent of Public Instruction shallapportion, on or before August 1 of each year, the money designated as theNutrition State Match pursuant to NRS387.105 to those school districts that participate in the National SchoolLunch Program, 42 U.S.C. 1751 et seq. The apportionment to a school districtmust be directly related to the districts reimbursements for the Program ascompared with the total amount of reimbursements for all school districts inthis State that participate in the Program.

7. If the State Controller finds that such an actionis needed to maintain the balance in the State General Fund at a levelsufficient to pay the other appropriations from it, he may pay out theapportionments monthly, each approximately one-twelfth of the yearlyapportionment less any amount set aside as a reserve. If such action is needed,the State Controller shall submit a report to the Department of Administrationand the Fiscal Analysis Division of the Legislative Counsel Bureau documentingreasons for the action.

(Added to NRS by 1967, 890; A 1969, 1174; 1971, 519;1973, 1424; 1975, 1376, 1741; 1977, 701; 1979, 1588; 1983, 1907; 1987, 420;1993, 1430; 1995, 2486; 1997, 1862, 2710; 1999, 599, 3308; 2001, 3145; 2005, 1262, 2413)

NRS 387.1243 Apportionments:Adjustments to compensate for delinquent taxes on certain federal property;final computation; increase of basic support; underpayments and overpayments.

1. The first apportionment based on an estimatednumber of pupils and special education program units and succeedingapportionments are subject to adjustment from time to time as the need thereformay appear.

2. The apportionments to a school district may beadjusted during a fiscal year by the Department of Education, upon approval bythe State Board of Examiners and the Interim Finance Committee, if theDepartment of Taxation and the county assessor in the county in which theschool district is located certify to the Department of Education that theschool district will not receive the tax levied pursuant to subsection 1 of NRS 387.195 on property of the FederalGovernment located within the county if:

(a) The leasehold interest, possessory interest,beneficial interest or beneficial use of the property is subject to taxationpursuant to NRS 361.157 and 361.159 and one or more lessees or users ofthe property are delinquent in paying the tax; and

(b) The total amount of tax owed but not paid for thefiscal year by any such lessees and users is at least 5 percent of the proceedsthat the school district would have received from the tax levied pursuant tosubsection 1 of NRS 387.195.

If a lesseeor user pays the tax owed after the school districts apportionment has beenincreased in accordance with the provisions of this subsection to compensatefor the tax owed, the school district shall repay to the State DistributiveSchool Account in the State General Fund an amount equal to the tax receivedfrom the lessee or user for the year in which the school district received anincreased apportionment, not to exceed the increase in apportionments made tothe school district pursuant to this subsection.

3. On or before August 1 of each year, the board oftrustees of a school district shall provide to the Department, in a formatprescribed by the Department, the count of pupils calculated pursuant tosubparagraph (8) of paragraph (a) of subsection 1 of NRS 387.1233 who completed at least onesemester during the immediately preceding school year. The count of pupilssubmitted to the Department must be included in the final adjustment computedpursuant to subsection 4.

4. A final adjustment for each school district andcharter school must be computed as soon as practicable following the close ofthe school year, but not later than August 25. The final computation must bebased upon the actual counts of pupils required to be made for the computationof basic support and the limits upon the support of special education programs,except that for any year when the total enrollment of pupils and children in aschool district or a charter school located within the school districtdescribed in paragraphs (a), (b), (c) and (e) of subsection 1 of NRS 387.123 is greater on the last day ofany school month of the school district after the second school month of theschool district and the increase in enrollment shows at least:

(a) A 3-percent gain, basic support as computed fromfirst-month enrollment for the school district or charter school must beincreased by 2 percent.

(b) A 6-percent gain, basic support as computed fromfirst-month enrollment for the school district or charter school must beincreased by an additional 2 percent.

5. If the final computation of apportionment for anyschool district or charter school exceeds the actual amount paid to the schooldistrict or charter school during the school year, the additional amount duemust be paid before September 1. If the final computation of apportionment forany school district or charter school is less than the actual amount paid tothe school district or charter school during the school year, the differencemust be repaid to the State Distributive School Account in the State GeneralFund by the school district or charter school before September 25.

(Added to NRS by 1977, 705; A 1983, 1907; 1987, 420;1995, 2487; 1997, 1862, 2825; 1999, 608, 609, 3309; 2001, 3147)

NRS 387.1245 Emergencyfinancial assistance: Conditions; procedures.

1. The board of trustees of any school district inthis state whose estimated receipts from all sources provided by this chapterand chapter 374 of NRS are less than the totalestimated receipts from these sources in the final approved budget for thefiscal year, and which cannot therefore provide a minimum program of educationand meet its contract obligations, may apply for emergency financial assistancefrom the State Distributive School Account in the State General Fund.

2. The application must be made to the State Board ofEducation in the form prescribed by the Superintendent of Public Instruction,and in accordance with guidelines for evaluating needs for emergency financialassistance as established by the State Board of Education.

3. Before acting on any such application, the StateBoard of Education and State Board of Examiners, jointly, shall determine thedifference between the total amount of money appropriated and authorized forexpenditure during the current biennium from the State Distributive SchoolAccount in the State General Fund and the total amount of money estimated to bepayable from that Fund during the biennium, and shall make no distribution inexcess of that difference.

4. The State Board of Education shall review eachapplication and shall by resolution find the least amount of additional money,if any, which it deems necessary to enable the board of trustees of theapplying school district to provide a minimum educational program and meet itsirreducible contract obligations. In making this determination, the State Boardof Education shall consider also the amount available in the State DistributiveSchool Account in the State General Fund and the anticipated amount of futureapplications, so that no deserving school district will be wholly deniedrelief. Any money allocated by the State Board of Education under this sectionmay not exceed, when added to all other estimated resources, the totalestimated receipts in the final approved budget of the applying school districtfor the fiscal year.

5. If the State Board of Education finds thatemergency assistance should be granted to an applying school district, it shalltransmit its resolution finding the amount to the State Board of Examiners,along with a report of its then current estimate of the total requirements tobe paid from the State Distributive School Account in the State General Fundduring the then current fiscal year.

6. The State Board of Examiners shall independentlyreview each resolution so transmitted by the State Board of Education, mayrequire the submission of such additional justification as it deems necessary,and shall find by resolution the amount of emergency assistance, if any, to begranted. The Board may defer, and subsequently grant or deny, any part of arequest. Any emergency assistance granted by the State Board of Examiners maynot exceed, when added to all other estimated resources, the total estimatedreceipts in the final approved budget of the applying school district for thefiscal year.

7. The State Board of Examiners shall transmit onecopy of its finding to the State Board of Education and one copy to the StateController. A claim pursuant to a grant of emergency assistance must be paidfrom the State Distributive School Account in the State General Fund as otherclaims against the State are paid.

8. Money received by a school district pursuant to agrant of relief may be expended only in accordance with the approved budget ofthat school district for the fiscal year for which the grant is made. No formalaction to incorporate the money so received in the approved budget is required,but the receipts must be reported as other receipts are reported and explainedin a footnote as medium-term obligations are explained.

9. The State Board of Education shall transmit to theLegislature a report of each grant of emergency assistance paid pursuant tothis section.

(Added to NRS by 1977, 705; A 1981, 300, 498, 500;1987, 421; 1997, 557)

NRS 387.126 Verificationof reports of enrollment and attendance submitted by school district or charterschool. The Superintendent of PublicInstruction may in his discretion and shall when so directed by the State Boardverify by independent audit or other suitable examination the reports ofenrollment and daily attendance submitted by any school district or charterschool for apportionment purposes.

(Added to NRS by 1967, 891; A 1979, 1589; 1997, 1863)

SOURCES AND USE OF MONEY BY COUNTY SCHOOL DISTRICTS

NRS 387.170 Countyschool district fund: Creation; transfers.

1. There is hereby created in each county treasury afund to be designated as the county school district fund, except as otherwiseprovided in subsection 2.

2. All money received by the county treasurer underthe provisions of NRS 387.175 may betransferred to a separate account established and administered by the board oftrustees of the county school district under the provisions of NRS 354.603.

[122:32:1956](NRS A 1971, 1346; 1975, 1809; 1979,545, 1589; 1981, 686, 1771)

NRS 387.175 Countyschool district fund: Composition. The countyschool district fund is composed of:

1. All local taxes for the maintenance and operationof public schools.

2. All money received from the Federal Government forthe maintenance and operation of public schools.

3. Apportionments by this State as provided in NRS 387.124.

4. Any other receipts, including gifts, for theoperation and maintenance of the public schools in the county school district.

[123:32:1956](NRS A 1961, 42; 1963, 431; 1967, 892;1979, 1589; 1997, 1863)

NRS 387.177 Countyschool district buildings and sites fund: Creation; composition; expenditures.

1. There is hereby created in each county treasury orin a separate account, if established under NRS354.603, a fund to be designated as the county school district buildingsand sites fund.

2. The county school district buildings and sites fundshall be composed of:

(a) Receipts from the rentals and sales of schoolproperty.

(b) Gifts to the school district for any or all of thepurposes enumerated in NRS 387.335.

(c) All moneys received from the Federal Government forthe construction of school facilities.

3. Moneys in the county school district buildings andsites fund may be expended by the board of trustees, notwithstanding suchexpenditures have not been budgeted in accordance with law, only for thepurposes enumerated in NRS 387.335, andno others.

(Added to NRS by 1963, 431; A 1971, 1347; 1975, 1809)

NRS 387.180 Depositby trustees of money collected in county school district fund or buildings andsites fund. The board of trustees of eachcounty school district shall pay all moneys received by it for school purposesinto the county treasury at the end of each month to be placed to the credit ofthe county school district fund or the county school district buildings andsites fund as provided for in this chapter, except when the board of trusteesof a county school district has elected to establish and administer a separateaccount under the provisions of NRS 354.603.

[124:32:1956](NRS A 1965, 324; 1971, 1347; 1975,1809)

NRS 387.185 Distributionof money for school districts and charter schools.

1. Except as otherwise provided in subsection 2 and NRS 387.528, all school money due eachcounty school district must be paid over by the State Treasurer to the countytreasurer on August 1, November 1, February 1 and May 1 of each year or as soonthereafter as the county treasurer may apply for it, upon the warrant of theState Controller drawn in conformity with the apportionment of theSuperintendent of Public Instruction as provided in NRS 387.124.

2. Except as otherwise provided in NRS 387.528, if the board of trustees of aschool district establishes and administers a separate account pursuant to theprovisions of NRS 354.603, all schoolmoney due that school district must be paid over by the State Treasurer to theschool district on August 1, November 1, February 1 and May 1 of each year oras soon thereafter as the school district may apply for it, upon the warrant ofthe State Controller drawn in conformity with the apportionment of theSuperintendent of Public Instruction as provided in NRS 387.124.

3. No county school district may receive any portionof the public school money unless that school district has complied with theprovisions of this title and regulations adopted pursuant thereto.

4. Except as otherwise provided in this subsection,all school money due each charter school must be paid over by the StateTreasurer to the governing body of the charter school on August 1, November 1,February 1 and May 1 of each year or as soon thereafter as the governing bodymay apply for it, upon the warrant of the State Controller drawn in conformitywith the apportionment of the Superintendent of Public Instruction as providedin NRS 387.124. If the Superintendent ofPublic Instruction has approved, pursuant to subsection 5 of NRS 387.124, a request for payment of anapportionment 30 days before the apportionment is otherwise required to bemade, the money due to the charter school must be paid by the State Treasurerto the governing body of the charter school on July 1, October 1, January 1 orApril 1, as applicable.

[125:32:1956](NRS A 1967, 196, 892; 1979, 1589;1995, 2487; 1997, 1863, 2710; 1999, 599, 3310; 2001, 3148)

NRS 387.195 Levyof tax for county school district; deferred use of money attributable to netproceeds of minerals.

1. Each board of county commissioners shall levy a taxof 75 cents on each $100 of assessed valuation of taxable property within thecounty for the support of the public schools within the county school district.

2. The tax collected pursuant to subsection 1 on anyassessed valuation attributable to the net proceeds of minerals must not beconsidered as available to pay liabilities of the fiscal year in which the taxis collected but must be deferred for use in the subsequent fiscal year. Theannual budget for the school district must only consider as an available sourcethe tax on the net proceeds of minerals which was collected in the prior year.

3. In addition to any tax levied in accordance withsubsection 1, each board of county commissioners shall levy a tax for thepayment of interest and redemption of outstanding bonds of the county schooldistrict.

4. The tax collected pursuant to subsection 1 and anyinterest earned from the investment of the proceeds of that tax must becredited to the countys school district fund.

5. The tax collected pursuant to subsection 3 and anyinterest earned from the investment of the proceeds of that tax must becredited to the county school districts debt service fund.

[127:32:1956](NRS A 1979, 1244; 1981, 301; 1983,1635, 1950; 1987, 639; 1999,2925)

NRS 387.197 Levyof tax for enhancing safety and security of public schools; report on use ofproceeds.

1. Upon the approval of a majority of the registeredvoters of a county voting upon the question, the board of county commissionersshall, in addition to any taxes levied in accordance with NRS 387.195, levy a tax of no more than 2cents on each $100 of assessed valuation of taxable property within the countyfor enhancing the safety and security of the public schools within the countyschool district. Such a tax may not be levied after the fiscal year 1996-97 andthe duration of any tax so levied must expire by limitation on June 30, 1997.

2. The tax collected pursuant to subsection 1 and anyinterest earned from the investment of the proceeds of that tax:

(a) Must be credited to the countys school districtfund.

(b) Must be accounted for separately in the fund.

(c) Must not be considered in the negotiation of thesalaries and benefits of persons employed by the school district, unless theyare employed by the school district primarily to provide for the safety andsecurity of a public school.

(d) Must not be considered in the determination of theamount of state support for the school district, or in any way affect theamount of that support.

3. A school district in which a tax is imposedpursuant to this section shall not reduce the amount it spends from othersources for the safety and security of the public schools in the district belowthe amount it spent for that purpose in the fiscal year during which the ballotquestion is approved by the voters. The school district may use the proceeds ofa tax imposed pursuant to this section only to provide additional necessaryrevenue for that purpose.

4. A school district in which a tax is imposedpursuant to this section shall submit a report on its use of the proceeds ofthe tax to the Director of the Legislative Counsel Bureau on or before January15, 1995, for transmittal to the Legislature for its review.

(Added to NRS by 1991, 901; A 1993, 2257)

NRS 387.205 Requiredand authorized uses of money in county school district fund.

1. Subject to the limitations set forth in NRS 387.206 and 387.207, money on deposit in the countyschool district fund or in a separate account, if the board of trustees of aschool district has elected to establish such an account pursuant to theprovisions of NRS 354.603, must be usedfor:

(a) Maintenance and operation of the public schoolscontrolled by the county school district.

(b) Payment of premiums for Nevada industrialinsurance.

(c) Rent of schoolhouses.

(d) Construction, furnishing or rental of teacherages,when approved by the Superintendent of Public Instruction.

(e) Transportation of pupils, including the purchase ofnew buses.

(f) Programs of nutrition, if such expenditures do notcurtail the established school program or make it necessary to shorten theschool term, and each pupil furnished lunch whose parent or guardian isfinancially able so to do pays at least the actual cost of the lunch.

(g) Membership fees, dues and contributions to aninterscholastic activities association.

(h) Repayment of a loan made from the State PermanentSchool Fund pursuant to NRS 387.526.

2. Subject to the limitations set forth in NRS 387.206 and 387.207, money on deposit in the countyschool district fund, or in a separate account, if the board of trustees of aschool district has elected to establish such an account pursuant to theprovisions of NRS 354.603, whenavailable, may be used for:

(a) Purchase of sites for school facilities.

(b) Purchase of buildings for school use.

(c) Repair and construction of buildings for schooluse.

[129:32:1956](NRS A 1971, 1347; 1973, 317; 1975,1810; 1983, 315; 1989, 689; 1993, 2879; 1997, 1864, 2711; 1999, 599, 1358; 2003, 20thSpecial Session, 202)

NRS 387.206 Developmentof formula for determining minimum amount of money school districts must expendannually for textbooks, instructional supplies and instructional hardware;written notice of amount; determination of compliance; reduction in basic supportallocation for failure to comply.

1. On or before July 1 of each year, the Department,in consultation with the Budget Division of the Department of Administrationand the Fiscal Analysis Division of the Legislative Counsel Bureau, shalldevelop or revise, as applicable, a formula for determining the minimum amountof money that each school district is required to expend each fiscal year fortextbooks, instructional supplies and instructional hardware. The formula mustbe used only to develop expenditure requirements and must not be used to alterthe distribution of money for basic support to school districts.

2. Upon approval of the formula pursuant to subsection1, the Department shall provide written notice to each school district withinthe first 30 days of each fiscal year that sets forth the required minimumcombined amount of money that the school district must expend for textbooks,instructional supplies and instructional hardware for that fiscal year.

3. On or before January 1 of each year, the Departmentshall determine whether each school district has expended, during theimmediately preceding fiscal year, the required minimum amount of money setforth in the notice provided pursuant to subsection 2. In making thisdetermination, the Department shall use the report submitted by the schooldistrict pursuant to NRS 387.303.

4. Except as otherwise provided in subsection 5, ifthe Department determines that a school district has not expended the requiredminimum amount of money set forth in the notice provided pursuant to subsection2, a reduction must be made from the basic support allocation otherwise payableto that school district in an amount that is equal to the difference betweenthe actual combined expenditure for textbooks, instructional supplies andinstructional hardware and the minimum required combined expenditure set forthin the notice provided pursuant to subsection 2. A reduction in the amount ofthe basic support allocation pursuant to this subsection:

(a) Does not reduce the amount that the school districtis required to expend on textbooks, instructional supplies and instructionalhardware in the current fiscal year; and

(b) Must not exceed the amount of basic support thatwas provided to the school district for the fiscal year in which the minimumexpenditure amount was not satisfied.

5. If the actual enrollment of pupils in a schooldistrict is less than the enrollment included in the projections used in theschool districts biennial budget submitted pursuant to NRS 387.303, the required expenditure fortextbooks, instructional supplies and instructional hardware pursuant to thissection must be reduced proportionately.

(Added to NRS by 2003, 20thSpecial Session, 202)

NRS 387.207 Requiredannual expenditures for library books, computer software, equipment relating toinstruction, and maintenance and repair; exception for certain schooldistricts.

1. Except as otherwise provided in this section, ineach school year a school district shall spend for library books and softwarefor computers an amount of money, expressed as an amount per pupil, that is atleast equal to the average of the total amount of money that was expended peryear by the school district for those items in the immediately preceding 3years.

2. Except as otherwise provided in this section, ineach school year a school district shall spend for the purchase of equipmentrelating to instruction, including, without limitation, equipment fortelecommunications and for the purchase of equipment relating to thetransportation of pupils, an amount of money, expressed as an amount per pupil,that is at least equal to the average of the total amount of money that wasexpended per year by the school district for those items in the immediatelypreceding 3 years.

3. Except as otherwise provided in this section, ineach school year a school district shall spend for the maintenance and repairof equipment, vehicles, and buildings and facilities an amount of money,expressed as an amount per pupil, that is at least equal to the average of thetotal amount of money that was expended per year by the school district forthose items in the immediately preceding 3 years, excluding any amount of moneyderived from the proceeds of bonds.

4. A school district may satisfy the expendituresrequired by subsections 1, 2 and 3 if the school district spends an aggregateamount of money for all the items identified in those subsections that is atleast equal to the average of the total amount of money expended by the schooldistrict per year for all those items in the immediately preceding 3 years.

5. A school district is not required to satisfy theexpenditures required by this section for a school year in which:

(a) The total number of pupils who are enrolled inpublic schools within the school district has declined from the immediatelypreceding school year; or

(b) The total revenue available in the general fund ofthe school district has declined from the immediately preceding school year.

(Added to NRS by 1999, 1357; A 2003, 20thSpecial Session, 203)

NRS 387.210 Dutiesof county treasurer. Except when the board oftrustees of a county school district elects to establish a separate accountunder the provisions of NRS 354.603,each county treasurer shall:

1. Receive and hold as a special deposit all publicschool moneys, whether received by him from the State Treasurer or raised bythe county for the benefit of the public schools, or from any other source, andkeep separate accounts thereof and of their disbursements.

2. Pay over all public school moneys received by himonly on warrants of the county auditor, issued upon orders of the board oftrustees of the county school district. All orders issued in accordance withlaw by the board of trustees shall be valid vouchers in the hands of the countyauditors for warrants drawn upon such orders.

[131:32:1956](NRS A 1971, 1348; 1975, 1810)

NRS 387.220 Penaltiesfor failure of county treasurer or county auditor to perform certain duties.

1. If any county treasurer or county auditor fails orneglects to perform the duties required of him by NRS 354.603 and 387.210, he shall forfeit for the benefitof the county school district fund the sum of $100 from his officialcompensation.

2. Upon notification by the Superintendent of PublicInstruction of such a failure or neglect on the part of the county treasurer orcounty auditor, the board of county commissioners shall deduct $100 from hisofficial compensation and shall place the money to the credit of the countyschool district fund.

[133:32:1956](NRS A 1971, 1348; 1993, 216)

NRS 387.225 Moneyfor schools to be received and disbursed by tax collector or county treasurerwithout fee. No tax collector or countytreasurer shall receive any fees or compensation whatever for collecting,receiving, keeping, transporting or disbursing any public school moneys.

[134:32:1956]

BUDGETS; FINANCIAL ACCOUNTABILITY; SHORT-TERM FINANCING;EXPENDITURES

NRS 387.300 Budgets:Preparation. Boards of trustees of countyschool districts shall prepare budgets of the amounts of money estimated to be necessaryto pay the expenses of conducting the public business of the school districtsas provided in chapter 354 of NRS.

[149:32:1956](NRS A 1971, 522)

NRS 387.303 Budget:Annual reports by each school district required; compilation of reports bySuperintendent of Public Instruction.

1. Not later than November 10 of each year, the boardof trustees of each school district shall submit to the Superintendent ofPublic Instruction and the Department of Taxation a report which includes thefollowing information:

(a) For each fund within the school district,including, without limitation, the school districts general fund and anyspecial revenue fund which receives state money, the total number and salariesof licensed and nonlicensed persons whose salaries are paid from the fund andwho are employed by the school district in full-time positions or in part-timepositions added together to represent full-time positions. Information must beprovided for the current school year based upon the school districts finalbudget, including any amendments and augmentations thereto, and for thepreceding school year. An employee must be categorized as filling aninstructional, administrative, instructional support or other position.

(b) The count of pupils computed pursuant to paragraph(a) of subsection 1 of NRS 387.1233.

(c) The school districts actual expenditures in thefiscal year immediately preceding the report.

(d) The school districts proposed expenditures for thecurrent fiscal year.

(e) The schedule of salaries for licensed employees inthe current school year and a statement of whether the negotiations regardingsalaries for the current school year have been completed. If the negotiationshave not been completed at the time the schedule of salaries is submitted, theboard of trustees shall submit a supplemental report to the Superintendent ofPublic Instruction upon completion of negotiations or the determination of anarbitrator concerning the negotiations that includes the schedule of salariesagreed to or required by the arbitrator.

(f) The number of teachers who received an increase insalary pursuant to subsection 2 of NRS391.160 for the current and preceding fiscal years. If the board oftrustees is required to pay an increase in salary retroactively pursuant tosubsection 2 of NRS 391.160, the boardof trustees shall submit a supplemental report to the Superintendent of PublicInstruction not later than February 15 of the year in which the retroactivepayment was made that includes the number of teachers to whom an increase insalary was paid retroactively.

(g) The number of employees eligible for healthinsurance within the school district for the current and preceding fiscal yearsand the amount paid for health insurance for each such employee during thoseyears.

(h) The rates for fringe benefits, excluding healthinsurance, paid by the school district for its licensed employees in thepreceding and current fiscal years.

(i) The amount paid for extra duties, supervision ofextracurricular activities and supplemental pay and the number of employeesreceiving that pay in the preceding and current fiscal years.

(j) The expenditures from the account created pursuantto subsection 3 of NRS 179.1187. Thereport must indicate the total amount received by the district in the precedingfiscal year, and the specific amount spent on books and computer hardware andsoftware for each grade level in the district.

2. On or before November 25 of each year, theSuperintendent of Public Instruction shall submit to the Department ofAdministration and the Fiscal Analysis Division of the Legislative CounselBureau, in a format approved by the Director of the Department ofAdministration, a compilation of the reports made by each school districtpursuant to subsection 1.

3. The Superintendent of Public Instruction shall, inthe compilation required by subsection 2, reconcile the revenues andexpenditures of the school districts with the apportionment received by thosedistricts from the State Distributive School Account for the preceding year.

(Added to NRS by 1979, 1582; A 1991, 1549; 1993,1431, 2158; 1995, 574, 1898, 2819; 1997, 2704, 2705; 1999, 1036; 2001, 876, 1485, 1493; 2001 Special Session,172, 186)

NRS 387.304 Dutiesof Department. The Department shall:

1. Conduct an annual audit of the count of pupils forapportionment purposes reported by each school district pursuant to NRS 387.123 and the data reported by eachschool district pursuant to NRS 388.710that is used to measure the effectiveness of the implementation of a plandeveloped by each school district to reduce the pupil-teacher ratio as requiredby NRS 388.720.

2. Review each school districts report of the annualaudit conducted by a public accountant as required by NRS 354.624, and the annual report preparedby each district as required by NRS 387.303,and report the findings of the review to the State Board and the LegislativeCommittee on Education, with any recommendations for legislation, revisions toregulations or training needed by school district employees. The report by theDepartment must identify school districts which failed to comply with anystatutes or administrative regulations of this State or which had any:

(a) Long-term obligations in excess of the generalobligation debt limit;

(b) Deficit fund balances or retained earnings in anyfund;

(c) Deficit cash balances in any fund;

(d) Variances of more than 10 percent between totalgeneral fund revenues and budgeted general fund revenues; or

(e) Variances of more than 10 percent between totalactual general fund expenditures and budgeted total general fund expenditures.

3. In preparing its biennial budgetary request for theState Distributive School Account, consult with the superintendent of schoolsof each school district or a person designated by the superintendent.

4. Provide, in consultation with the Budget Divisionof the Department of Administration and the Fiscal Analysis Division of theLegislative Counsel Bureau, training to the financial officers of schooldistricts in matters relating to financial accountability.

(Added to NRS by 1999, 2924; A 2005, 2161)

NRS 387.3045 Reportof decline in ending balance of general fund of school district. If theending balance of the general fund of a school district has declined for 3consecutive years, the school district shall submit to the Committee on LocalGovernment Finance created pursuant to NRS354.105 a written explanation of the cause of the decline.

(Added to NRS by 1999, 1358; A 2001, 1827)

NRS 387.305 Medium-termobligations. A medium-term obligation for thepurpose of meeting a great necessity may be authorized by the board of trusteesof a school district in the manner provided in chapter350 of NRS.

[150:32:1956](NRS A 1973, 18; 1995, 1827)

NRS 387.310 Orderfor payment of money; procedures for approval of orders and signing ofcumulative voucher sheets; issuance of warrants; limitations; cancellation.

1. Except as otherwise provided by the board oftrustees, the clerk of the board shall draw all orders for the payment of moneybelonging to the school district. The orders must be listed on cumulativevoucher sheets.

2. The board of trustees shall prescribe theprocedures by which the orders must be approved and the cumulative vouchersheets signed. The procedures must provide:

(a) That the approval of the board of trustees isrequired before orders are paid unless a payment must be expedited for theschool district to:

(1) Receive a discount or other savings which isrelated to the timeliness of payment;

(2) Avoid a service charge or other cost whichis related to the timeliness of payment; or

(3) Abide by a purchase order, contract or otherorder for payment which has been approved by the board of trustees at a publicmeeting.

(b) For ratification by the board of trustees at itsnext regularly scheduled meeting of any payment that is made without theapproval of the board pursuant to an exception set forth in paragraph (a).

3. When the orders have been approved and thecumulative voucher sheets have been signed in accordance with such procedures,the orders are valid vouchers in the hands of the county auditor for him toissue warrants on the county treasurer to be paid out of money belonging to theschool district.

4. No order in favor of the board of trustees or anymember thereof, except for salaries as authorized by NRS 386.320, authorized travel expenses andsubsistence of trustees or for services of any trustee as clerk of the board,may be drawn.

5. No order for salary for any teacher may be drawnunless the teacher is included in the directory of teachers supplied to theclerk of the board of trustees pursuant to the provisions of NRS 391.045.

6. An order drawn by a clerk of a board of trusteespursuant to subsection 1 is void if not presented for payment within 1 yearafter the date of issuance.

7. Any order remaining unpaid after the expiration of1 year, whether outstanding or uncalled for in the office of the countyauditor, must be cancelled by the county auditor, who shall immediately notifythe county treasurer of the cancellation. The county treasurer shall not pay awarrant presented for payment more than 1 year after the date of issuance ofsuch an order. This subsection does not apply if the board of trusteesestablishes and administers a separate account pursuant to NRS 354.603.

[151:32:1956](NRS A 1959, 262; 1961, 41; 1967, 816;1969, 127; 1971, 117; 1979, 1590; 1993, 423, 1189; 1995, 1737)

NRS 387.315 Statementsof purpose and invoices to accompany orders; liability of trustees.

1. Every order drawn by the clerk of the board oftrustees of a school district must be accompanied by an itemized statement ofthe purpose or purposes for which the order is issued, and a true copy of anitemized invoice drawn by the person, association, firm or corporation in whosefavor the order is drawn. The statement and a true copy of the invoice must befiled in the office of the county auditor and is subject to inspection by theSuperintendent of Public Instruction. Statements and invoices shall be kept onfile until ordered destroyed by the Superintendent.

2. No order for the payment of money of any schooldistrict may be issued by the clerk of the board of trustees unless there is inthe county treasury, to the credit of the school district, a sum of money equalto the full amount for which the order is issued, and available for the purposeof the order.

3. If the clerk of any board of trustees draws anyorder for the payment of school money in violation of law, the members of theboard of trustees are jointly and severally liable for the amount of the order.

[152:32:1956](NRS A 1959, 27, 803; 1979, 1591)

NRS 387.317 Rejectionof order by county auditor; return of order with endorsed statement forrejection. If a county auditor refuses toallow any order of the board of trustees for the payment of school districtmoneys, in whole or in part, he shall immediately return such order to theboard with a statement of, and his reasons for, rejection endorsed on theorder.

(Added to NRS by 1961, 41)

NRS 387.319 Authorizedtravel by trustee: Payment of travel and subsistence; claims.

1. Any travel by trustees of the school district,other than as provided for in NRS 386.290,required for the transaction of official business of the school district shallfirst be authorized by the board of trustees. When such travel is authorized,trustees of the school district shall receive the travel expenses and per diemallowances authorized by law for state officers.

2. Claims for travel expenses and per diem allowancesauthorized in subsection 1 shall be presented and allowed as provided by lawfor other claims against the school district.

(Added to NRS by 1963, 608)

NRS 387.320 Quarterlypublication of expenditures of school district.

1. During each quarter of each school year, the clerkof the board of trustees of a county school district shall cause to bepublished a list of expenditures of the county school district made during theprevious quarter school year. The published list of expenditures shall be inthe form prescribed by the Superintendent of Public Instruction.

2. The publication required by subsection 1 shall beprinted in some newspaper published and of general circulation in the countythe boundaries of which are conterminous with the boundaries of the countyschool district.

3. The newspaper described in subsection 2 mustpossess the qualifications prescribed in chapter238 of NRS.

4. If no qualified newspaper is published within acounty, then the required publication shall be printed in some qualifiednewspaper printed in the State of Nevada and having a general circulationwithin the county.

[153:32:1956](NRS A 1957, 189; 1971, 523; 1979,1591)

NRS 387.325 Limitationof actions on bills incurred by trustees. No actioncan be maintained against any board of trustees upon any bill not presented forpayment to the board of trustees within 6 months of the time when the bill wasincurred.

[154:32:1956]

FINANCING OF CONSTRUCTION OF SCHOOLS AND OTHER PROJECTS

Fund for Capital Projects

NRS 387.328 Establishment;purposes; accumulation of money for specified period; source; reversionprohibited; pledge of proceeds for payment on bonds.

1. The board of trustees of each school district shallestablish a fund for capital projects for the purposes set forth in subsection1 of NRS 387.335. The money in the fundfor capital projects may be transferred to the debt service fund to pay thecost of the school districts debt service.

2. The board of trustees may accumulate money in thefund for capital projects for a period not to exceed 20 years.

3. That portion of the governmental services tax whoseallocation to the school district pursuant to NRS482.181 is based on the amount of the property tax levy attributable to itsdebt service must be deposited in the county treasury to the credit of the fundestablished under subsection 1 or the school districts debt service fund.

4. No money in the fund for capital projects at theend of the fiscal year may revert to the county school district fund, nor maythe money be a surplus for any other purpose than those specified in subsection1.

5. The proceeds of the taxes deposited in the fund forcapital projects pursuant to NRS 244.3354,268.0962 and 375.070 may be pledged to the payment ofthe principal and interest on bonds or other obligations issued for one or moreof the purposes set forth in NRS 387.335.The proceeds of such taxes so pledged may be treated as pledged revenues forthe purposes of subsection 3 of NRS 350.020,and the board of trustees of a school district may issue bonds for thosepurposes in accordance with the provisions of chapter350 of NRS.

[147:32:1956](NRS A 1971, 522; 1979, 1590; 1981,1545; 1983, 1635; 1985, 143; 1987, 1320; 1993, 110; 1997, 2454; 2001, 306; 2001 Special Session,140, 159)

NRS 387.3285 Taxfor fund for capital projects: Levy; contents of ballot question; deposit ofmoney; special election.

1. Upon the approval of a majority of the registeredvoters of a county voting upon the question at a general or special election,the board of county commissioners in each county with a school district whoseenrollment is fewer than 25,000 pupils may levy a tax which, when combined withany tax imposed pursuant to NRS 387.3287,is not more than 75 cents on each $100 of assessed valuation of taxableproperty within the county. The question submitted to the registered votersmust contain the rate of the proposed additional property tax, stated indollars and cents per $100 assessed valuation, the purpose of the proposedadditional property tax, the duration of the proposed additional property taxand an estimate established by the board of trustees of the increase in theamount of property taxes that an owner of a new home with a fair market valueof $100,000 will pay per year as a result of the passage of the question. Theduration may not exceed 20 years.

2. Upon the approval of a majority of the registeredvoters of a county voting upon the question at a general or special election,the board of county commissioners in each county with a school district whoseenrollment is 25,000 pupils or more may levy a tax which, when combined withany tax imposed pursuant to NRS 387.3287,is not more than 50 cents on each $100 of assessed valuation of taxableproperty within the county. The question submitted to the registered votersmust contain the rate of the proposed additional property tax, stated indollars and cents per $100 assessed valuation, the purpose of the proposedadditional property tax, the duration of the proposed additional property tax andan estimate established by the board of trustees of the increase in the amountof property taxes that an owner of a new home with a fair market value of$100,000 will pay per year as a result of the passage of the question. Theduration may not exceed 20 years.

3. Any money collected pursuant to this section mustbe deposited in the county treasury to the credit of the fund for capitalprojects to be held and, except as otherwise provided in NRS 387.3287, to be expended in the samemanner as other money deposited in that fund.

4. A special election may be held:

(a) At any time, including, without limitation, on thedate of a primary city election or a primary state election if the board oftrustees of the school district determines, by a unanimous vote, that anemergency exists; or

(b) On the first Tuesday after the first Monday in Juneof an odd-numbered year.

5. The determination made by the board of trusteespursuant to subsection 4 that an emergency exists is conclusive unless it isshown that the board of trustees acted with fraud or a gross abuse ofdiscretion. An action to challenge the determination made by the board oftrustees must be commenced within 15 days after the determination made by boardof trustees is final. As used in this subsection, emergency means anunexpected occurrence or combination of occurrences that requires immediateaction by the board of trustees of the school district to prevent or mitigate asubstantial financial loss to the school district or to enable the board oftrustees to provide an essential service.

(Added to NRS by 1983, 1634; A 1985, 144; 1987, 1320;1989, 681; 1991, 2207; 1995, 369; 1999, 1084; 2001, 604)

NRS 387.3286 Taxfor fund for capital projects: Forms for submission of ballot question;examples.

1. The Committee on Local Government Finance shallannually provide to each county clerk and district attorney:

(a) Forms for submitting a ballot question to theregistered voters of a county for the imposition of an additional property taxpursuant to NRS 387.3285; and

(b) Examples of past ballot questions for theimposition of an additional property tax.

2. The county clerk or district attorney may makethese forms and examples available to the general public.

(Added to NRS by 1999, 1084)

NRS 387.3287 Taxfor account for replacement of capital assets or construction of new buildingsfor schools to accommodate community growth.

1. Except as otherwise provided in subsections 4 and5, upon the approval of a majority of the registered voters of a county votingupon the question, the board of county commissioners in each county may levy aseparate tax pursuant to the provisions and subject to the limitations of NRS 387.3285.

2. Money raised pursuant to this section must bedeposited in the county treasury to the credit of the fund for capital projectsand must be maintained in a separate budgetary account for the replacement ofcapital assets. All interest and income earned on the money in the account mustbe credited to the account. Except as otherwise provided in subsection 3, moneyin the account must only be expended for the renovation or replacement ofdepreciating capital assets of the county school district.

3. Money raised pursuant to this section may beexpended for the construction of new buildings for schools to accommodatecommunity growth if the expenditure is approved by a majority of the registeredvoters of the county voting upon the question. An expenditure proposed pursuantto the provisions of this subsection must be submitted as a separate questionto the voters on the ballot at a primary, general or special election.

4. The replacement value of the capital assets of acounty school district must be determined by the board of trustees of thecounty school district before any property tax is levied pursuant to subsection1. The replacement value may be redetermined before July 1 of each year tobecome effective for the purposes of this section on the first day of the nextfiscal year.

5. The property tax authorized in subsection 1 may notbe imposed or collected if the account for the replacement of capital assetscontains revenue in an amount equal to or more than 30 percent of thereplacement value of the capital assets of the county school district.

(Added to NRS by 1989, 680; A 1999, 1085)

Tax on Residential Construction

NRS 387.329 Definitions. As used in NRS 387.331:

1. Apartment house means a building arranged inseveral suites of connecting rooms, each suite designed for independenthousekeeping, but with certain typical mechanical conveniences, such asair-conditioning, heat, light or elevator services shared in common by allfamilies occupying the building.

2. Lot for a mobile home means any area or tract ofland designated, designed or used for the occupancy of a mobile home. A mobilehome is a vehicle without motive power designed or equipped for livingpurposes and to carry property or passengers wholly on its own structure and tobe drawn by a motor vehicle.

3. Residential dwelling unit means a building or aportion of a building planned, designed or used as a residence for one familyonly, living independently of other families or persons, and having its ownbathroom and housekeeping facilities included in the unit.

(Added to NRS by 1979, 1287)

NRS 387.331 Impositionof tax in school district whose population is less than 50,000; limitation onamount; deposit of proceeds.

1. The tax on residential construction authorized bythis section is a specified amount which must be the same for each:

(a) Lot for a mobile home;

(b) Residential dwelling unit; and

(c) Suite in an apartment house,

imposed onthe privilege of constructing apartment houses and residential dwelling unitsand developing lots for mobile homes.

2. The board of trustees of any school district whosepopulation is less than 50,000 may request that the board of countycommissioners of the county in which the school district is located impose atax on residential construction in the school district to construct, remodeland make additions to school buildings. Whenever the board of trustees takes thataction, it shall notify the board of county commissioners and shall specify theareas of the county to be served by the buildings to be erected or enlarged.

3. If the board of county commissioners decides thatthe tax should be imposed, it shall notify the Nevada Tax Commission. If theCommission approves, the board of county commissioners may then impose the tax,whose specified amount must not exceed $1,600.

4. The board shall collect the tax so imposed, in theareas of the county to which it applies, and may require that administrativecosts, not to exceed 1 percent, be paid from the amount collected.

5. The money collected must be deposited with the countytreasurer in the school districts fund for capital projects to be held andexpended in the same manner as other money deposited in that fund.

(Added to NRS by 1979, 1287; A 1983, 1635; 1989,1924; 1997, 2358; 2001,1987)

NRS 387.332 Dutyof Nevada Tax Commission to review need for tax. TheNevada Tax Commission shall, every 4 years after it has approved the impositionof a tax on residential construction in a particular county or area of acounty, review the need for the tax under the circumstances existing at thetime of the review. If the Commission finds that the tax is no longer needed,it shall so inform the board of county commissioners of that county, who shallrepeal the tax as of the end of the current fiscal year.

(Added to NRS by 1979, 1288)

Fund to Assist School Districts in Financing CapitalImprovements

NRS 387.333 Creation;acceptance of gifts and grants; investment; payment of claims.

1. The Fund to Assist School Districts in FinancingCapital Improvements is hereby created in the State Treasury, to beadministered by the Director of the Department of Administration. All moneyreceived and held by the State Treasurer for the purpose of the Fund must bedeposited in the Fund.

2. The Director of the Department of Administrationmay accept gifts and grants from any source for deposit in the Fund.

3. The money in the Fund must be invested as the moneyin other state funds is invested. All interest and income earned on the moneyin the Fund must be credited to the Fund.

4. Claims against the Fund must be paid as otherclaims against the State are paid.

(Added to NRS by 1999, 3218)

NRS 387.3335 Applicationfor grant; proof of emergency conditions; determinations by Department ofTaxation and State Public Works Board; approval by State Board of Examiners;award of grants.

1. The board of trustees of a school district mayapply to the Director of the Department of Administration for a grant of moneyfrom the Fund created pursuant to NRS387.333 on a form provided by the Director of the Department of Administration.The application must be accompanied by proof that the following emergencyconditions exist within the school district:

(a) The assessed valuation of the taxable property inthe county in which the school district is located is declining and all otherresources available to the school district for financing capital improvementsare diminishing;

(b) The combined ad valorem tax rate of the county isat the limit imposed by NRS 361.453; and

(c) At least:

(1) One building that is located on the groundsof a school within the school district has been condemned;

(2) One of the facilities that is located on thegrounds of a school within the school district is unsuitable for use as a resultof:

(I) Structural defects;

(II) Barriers to accessibility; or

(III) Hazards to life, health or safety,including, without limitation, environmental hazards and the operation of thefacility in an unsafe manner; or

(3) One of the facilities that is located on thegrounds of a school within the school district is in such a condition that thecost of renovating the facility would exceed 40 percent of the cost ofconstructing a new facility.

2. Upon receipt of an application submitted pursuantto subsection 1, the Director of the Department of Administration shall forwardthe application to the:

(a) Department of Taxation to determine whether or not:

(1) The application satisfies the showing ofproof required pursuant to paragraphs (a) and (b) of subsection 1; and

(2) The board of county commissioners in thecounty in which the school district is located has imposed a tax of more thanone-eighth of 1 percent pursuant to NRS377B.100;

(b) State Public Works Board to determine whether theapplication satisfies the showing of proof required pursuant to paragraph (c)of subsection 1; and

(c) Department of Education for informational purposes.

3. The Department of Taxation and the State PublicWorks Board shall submit written statements of their determinations pursuant tosubsection 2 regarding an application to the Director of the Department ofAdministration. Upon receipt of such statements, the Director shall submit theapplication accompanied by the written statements from the Department ofTaxation and State Public Works Board to the State Board of Examiners forapproval.

4. The Director of the Department of Administrationshall make grants from the Fund created pursuant to NRS 387.333 based upon the need of eachschool district whose application is approved by the State Board of Examiners.

5. The Director of the Department of Administrationshall adopt regulations that prescribe the annual deadline for submission of anapplication to the Director of the Department of Administration by a schooldistrict that desires to receive a grant of money from the Fund.

(Added to NRS by 1999, 3218)

Issuance of Bonds

NRS 387.335 Issuanceof general obligations by board of trustees: Authorized purposes; combiningquestions for voting; annual report required of school district under certaincircumstances. [Effective through June 30, 2007.]

1. The board of trustees of a county school districtmay issue its general obligations to raise money for the following purposes,and no others:

(a) Construction, design or purchase of new buildingsfor schools, including, but not limited to, teacherages, dormitories, dininghalls, gymnasiums and stadiums.

(b) Enlarging, remodeling, repairing or replacingexisting buildings or grounds for schools, including, but not limited to,teacherages, dormitories, dining halls, gymnasiums and stadiums.

(c) Acquiring sites for building schools, or additionalreal property for necessary purposes related to schools, including, but notlimited to, playgrounds, athletic fields and sites for stadiums.

(d) Paying expenses relating to the acquisition ofschool facilities which have been leased by a school district pursuant to NRS 393.080.

(e) Purchasing necessary furniture and equipment forschools, including, without limitation, equipment used in educating pupils,furniture for school buildings and equipment used for the transportation ofpupils. If money from the issuance of general obligations is used to purchasefurniture and equipment to replace existing furniture and equipment, and thatexisting furniture and equipment subsequently is sold, the proceeds from thesale must be applied toward the retirement of those obligations. If equipmentused for the transportation of pupils is purchased pursuant to this paragraph,only the following equipment may be purchased:

(1) Motor vehicles that use biodiesel,compressed natural gas or a similar fuel formulated to reduce emissions fromthe amount of emissions produced from traditional fuels such as gasoline anddiesel fuel;

(2) Equipment to retrofit motor vehicles to usebiodiesel, compressed natural gas or a similar fuel formulated to reduceemissions from the amount of emissions produced from traditional fuels such asgasoline and diesel fuel; or

(3) Equipment for the transportation, storage ordispensing of biodiesel, compressed natural gas or similar fuels formulated toreduce emissions from the amount of emissions produced from traditional fuelssuch as gasoline and diesel fuel.

2. Any one or more of the purposes enumerated insubsection 1 may, by order of the board of trustees entered in its minutes, beunited and voted upon as one single proposition.

3. Any question submitted pursuant to this section andany question submitted pursuant to NRS387.3285 may, by order of the board of trustees entered in its minutes, beunited and voted upon as a single proposition.

4. If a schooldistrict issues general obligations to:

(a) Replaceexisting buildings or grounds for schools, as set forth in paragraph (b) ofsubsection 1; or

(b) Purchaseequipment used in educating pupils, furniture for school buildings or equipmentused for the transportation of pupils, as set forth in paragraph (e) ofsubsection 1,

the schooldistrict shall prepare an annual written report that describes the purposes forwhich the proceeds of the bonds were used in the immediately preceding year.The school district shall, on or before October 1 of each year, submit thereport to the Department and maintain a copy of the report for inspection bythe general public.

5. As used in this section, biodiesel has themeaning ascribed to it in 42 U.S.C. 13220.

[155:32:1956](NRS A 1971, 2119; 1975, 870; 1981,961; 1985, 144; 1989, 681; 1997, 2455; 2001, 2333; 2003, 2136, 2137)

NRS 387.335 Issuance of general obligations byboard of trustees: Authorized purposes; combining questions for voting.[Effective July 1, 2007.]

1. The board of trustees of a county school district mayissue its general obligations to raise money for the following purposes, and noothers:

(a) Construction, design or purchase of new buildingsfor schools, including, but not limited to, teacherages, dormitories, dininghalls, gymnasiums and stadiums.

(b) Enlarging, remodeling or repairing existingbuildings or grounds for schools, including, but not limited to, teacherages,dormitories, dining halls, gymnasiums and stadiums.

(c) Acquiring sites for building schools, or additionalreal property for necessary purposes related to schools, including, but notlimited to, playgrounds, athletic fields and sites for stadiums.

(d) Paying expenses relating to the acquisition ofschool facilities which have been leased by a school district pursuant to NRS 393.080.

(e) Purchasing necessary furniture and equipment forschools. If money from the issuance of general obligations is used to purchasefurniture and equipment to replace existing furniture and equipment, and thatexisting furniture and equipment subsequently is sold, the proceeds from thesale must be applied toward the retirement of those obligations.

2. Any one or more of the purposes enumerated insubsection 1 may, by order of the board of trustees entered in its minutes, beunited and voted upon as one single proposition.

3. Any question submitted pursuant to this section andany question submitted pursuant to NRS387.3285 may, by order of the board of trustees entered in its minutes, beunited and voted upon as a single proposition.

[155:32:1956](NRS A 1971, 2119; 1975, 870; 1981,961; 1985, 144; 1989, 681; 1997, 2455; 2001, 2333; 2003, 2136, 2137, effective July1, 2007)

NRS 387.400 Limitationon bonded indebtedness of county school district. Thetotal bonded indebtedness of a county school district must at no time exceed anamount equal to 15 percent of the total of the last assessed valuation oftaxable property, excluding motor vehicles, situated within the county schooldistrict.

[168:32:1956](NRS A 1963, 347; 1979, 1592; 1989,1882; 1995, 179)

NRS 387.510 Abolitionor change of boundaries of county school district; liability for bondedindebtedness.

1. Whenever a county is abolished as provided inSection 36 of Article IV of the Constitution of the State of Nevada and NRS 243.420 to 243.455, inclusive, the county schooldistrict whose boundaries are conterminous with the boundaries of the countyabolished shall, by such action, also be abolished.

2. When all of the territory of an abolished county isincluded within the territory of an existing county, the territory of theabolished county school district shall be included within the county schooldistrict whose boundaries are conterminous with the boundaries of the existingcounty.

3. When all of the territory of an abolished county isincluded within the territory of two or more existing counties, the territoryof the abolished county school district shall be included within the territoryof the county school districts whose boundaries are conterminous with theboundaries of the existing counties.

4. When a portion of a county is detached and annexedto another county, that portion so detached and annexed shall become a part ofthe county school district whose boundaries are conterminous with theboundaries of the county to which the portion is annexed.

5. When territory is taken from one county schooldistrict and annexed to another, the territory becomes liable to taxation forthe bonded indebtedness of the district to which it is annexed.

6. The State Board of Education shall, by orderentered on its minutes, within 60 days after the changes, determine whatproportion of the outstanding bonded indebtedness of the county schooldistrict, from which territory was taken, was incurred for the acquisition orimprovement of school sites, buildings or fixtures situated in the territorytransferred. The district to which the territory was annexed shall thereuponbecome liable for the proportion of the indebtedness so determined.

[190:32:1956]

Guarantee of Bonds With Money From State Permanent SchoolFund

NRS 387.513 ExecutiveDirector defined. As used in NRS 387.513 to 387.528, inclusive, unless the contextotherwise requires, Executive Director means the Executive Director of theDepartment of Taxation.

(Added to NRS by 1997, 2707; A 1999, 599)

NRS 387.516 Applicationfor guarantee agreement; duties of State Treasurer; limitations on amount ofguarantee; ineligibility of certain obligations; investigation and report byExecutive Director.

1. The board of trustees of a school district mayapply to the State Treasurer for a guarantee agreement whereby money in theState Permanent School Fund is used to guarantee the payment of the debtservice on bonds that the school district will issue. The amount of theguarantee for bonds of each school district outstanding at any one time mustnot exceed $25,000,000.

2. The application must be on a form prescribed by theState Treasurer. The State Treasurer shall develop the form in consultationwith the Executive Director.

3. Medium-term obligations entered into pursuant to theprovisions of NRS 350.087 to 350.095, inclusive, are not eligible forguarantee pursuant to NRS 387.513 to 387.528, inclusive.

4. Upon receipt of an application for a guaranteeagreement from a school district, the State Treasurer shall provide a copy ofthe application and any supporting documentation to the Executive Director. Assoon as practicable after receipt of a copy of an application, the ExecutiveDirector shall investigate the ability of the school district to make timelypayments on the debt service of the bonds for which the guarantee is requested.The Executive Director shall submit a written report of his investigation tothe State Board of Finance indicating his opinion as to whether the schooldistrict has the ability to make timely payments on the debt service of thebonds.

(Added to NRS by 1997, 2707; A 1999, 599; 2001, 2334)

NRS 387.519 Conditionsunder which State Treasurer may enter into guarantee agreement. The State Treasurer may enter into a guarantee agreementif:

1. The report submitted by the Executive Directorindicates that a school district has the ability to make timely payments on thedebt service of the bonds;

2. The State Board of Finance approves the reportsubmitted by the Executive Director; and

3. The State Treasurer has determined that the amountof bonds to be guaranteed under the agreement, in addition to the total amountof outstanding bonds guaranteed pursuant to NRS387.513 to 387.528, inclusive, doesnot exceed the limitation established by subsection 1 of NRS 387.522.

(Added to NRS by 1997, 2707; A 1999, 599)

NRS 387.522 Limitationon total amount of outstanding bonds that may be guaranteed; certification byState Treasurer deemed pledge by this state.

1. The total amount of outstanding bonds guaranteedpursuant to NRS 387.513 to 387.528, inclusive, must not exceed:

(a) Two hundred fifty percent of the lower of the costor fair market value of the assets in the State Permanent School Fund;

(b) A percentage of the lower of the cost or fairmarket value of the assets in the State Permanent School Fund specified forthis purpose by section 148 of the Internal Revenue Code of 1986, 26 U.S.C. 148, or regulations adopted pursuant to that section; or

(c) A percentage of the lower of the cost or fairmarket value of the assets in the State Permanent School Fund certified by theState Treasurer as the percentage used to determine the maximum amount of bondsthat may be guaranteed pursuant to NRS387.513 to 387.528, inclusive,

whichever isless.

2. A certification by the State Treasurer pursuant toparagraph (c) of subsection 1 shall be deemed a pledge by this state that, atthe time a guarantee agreement is entered into, the total amount of bonds thatare guaranteed pursuant to NRS 387.513to 387.528, inclusive, will not exceedthe percentage certified by the State Treasurer pursuant to paragraph (c) ofsubsection 1.

(Added to NRS by 1997, 2708; A 1999, 599)

NRS 387.524 Guaranteeagreement: Required contents; approvals required.

1. A guarantee agreement entered into pursuant to NRS 387.519 must:

(a) Require the board of trustees of the schooldistrict to appoint the State Treasurer, or a commercial bank designated by theState Treasurer, as paying agent for the debt service on the bonds;

(b) Specify the number of days before a payment on thedebt service of the bonds is due that the paying agent must receive the paymentfrom the school district;

(c) Require the board of trustees of the schooldistrict to deposit the amount of money due for each payment with the payingagent within the period specified by paragraph (b);

(d) Require that if the school district is unable tomake a payment, the board of trustees of the school district or thesuperintendent of schools of the district shall provide written notice to theState Treasurer at least 60 days before the payment is due;

(e) If a loan is made to a school district pursuant to NRS 387.526, require the board of trusteesof the school district to repay the loan as provided by NRS 387.528;

(f) Be signed by the State Treasurer and the presidentof the board of trustees of the school district; and

(g) Be approved by a resolution of the State Board ofFinance and the board of trustees of the school district.

2. A guarantee agreement may include such otherprovisions as the State Treasurer determines necessary.

(Added to NRS by 1997, 2708; A 1999, 599)

NRS 387.526 Loanto school district upon failure to make timely payment on debt service ofguaranteed bonds: Duties of State Treasurer and Executive Director; interest;restrictions on school district.

1. If a school district fails to make a timely paymenton the debt service of bonds that are guaranteed pursuant to the provisions of NRS 387.513 to 387.528, inclusive, the State Treasurershall:

(a) Withdraw from the State Permanent School Fund theamount of money due for the payment on the debt service;

(b) Make the payment on the debt service; and

(c) Report the payment to the Executive Director.

2. The amount of money withdrawn pursuant tosubsection 1 shall be deemed a loan to the school district from the StatePermanent School Fund. The State Treasurer shall determine the rate of intereston the loan, which must not exceed 1 percent above the average rate of interestyielded on investments in the State Permanent School Fund on the date that theloan is made. A loan that is made to a school district pursuant to thissubsection is a special obligation of the school district and is payable onlyfrom the sources specified in NRS 387.528.

3. A school district that receives a loan pursuant tothis section shall not:

(a) Include the loan as a general obligation of theschool district when determining any limit on the debt of the school district.

(b) Unless the school district obtains the writtenapproval of the Executive Director, for the period during which the loan isunpaid, enter into any medium-term obligations or installment-purchaseagreement pursuant to the provisions of NRS350.087 to 350.095, inclusive, orotherwise borrow money.

4. If the Executive Director receives notice that aloan has been made pursuant to this section, he shall proceed pursuant to theprovisions of NRS 354.685.

(Added to NRS by 1997, 2708; A 1999, 599; 2001, 2335)

NRS 387.528 Repaymentof loan by school district; duty of State Treasurer to withhold other moneyfrom school district upon failure to repay.

1. If a loan is made from the State Permanent SchoolFund pursuant to NRS 387.526, the loanmust be repaid by the school district from the money that is available to theschool district to pay the debt service on the bonds that are guaranteedpursuant to the provisions of NRS 387.513to 387.528, inclusive, unless paymentfrom that money would cause the school district to default on other outstandingbonds, medium-term obligations or installment-purchase agreements entered intopursuant to the provisions of NRS 350.087to 350.095, inclusive.

2. If the school district is not able to repay fullythe loan, including any accrued interest, in a timely manner pursuant tosubsection 1 or by any other lawful means, the State Treasurer shall withholdthe payments of money that would otherwise be distributed to the schooldistrict from:

(a) The interest earned on the State Permanent SchoolFund that is distributed among the various school districts;

(b) Distributions of the local school support tax,which must be transferred by the State Controller upon notification by theState Treasurer; and

(c) Distributions from the State Distributive SchoolAccount,

until theloan is repaid, including any accrued interest on the loan. The State Treasurershall apply the money first to the interest on the loan and, when the interestis paid in full, then to the balance. When the interest and balance on the loanare repaid, the State Treasurer shall resume making the distributions thatwould otherwise be due to the school district.

(Added to NRS by 1997, 2709; A 1999, 599; 2001, 2335)

Joint Facilities and Projects

NRS 387.531 Jointacquisition authorized; issuance of negotiable general obligation bonds.

1. Notwithstanding the provisions of any other law,the boards of trustees of county school districts are authorized and empoweredto acquire any or all of the facilities or projects specified in subsection 1of NRS 387.335 jointly, as money may bemade available therefor, including, but not limited to, proceeds of bondsissued pursuant to this chapter.

2. Subject to the provisions of NRS 387.541, each such county schooldistrict, acting by and through its board of trustees, is authorized andempowered, in its name and upon its behalf, to issue the school districtsnegotiable, coupon, general obligation bonds for defraying all or any part ofthe cost of the facility or project.

(Added to NRS by 1971, 527; A 1997, 2455)

NRS 387.541 Issuanceof bonds: Approval of debt management commission and voters required;applicability of Local Government Securities Law.

1. Bonds of any such county school district for thejoint facility must not be issued unless:

(a) The bonds are approved by the debt managementcommission of the particular county pursuant to NRS 350.011 to 350.0165, inclusive; and

(b) The registered voters of each of the county schooldistricts approve a proposal for the issuance of the bonds of the particularcounty school district pursuant to the provisions of this chapter.

2. If proposals for the issuance of each schooldistricts general obligation bonds carry as provided in subsection 1, eachschool district, acting by and through its board of trustees, for the purposeof defraying all or any part of the cost of the joint facility or project, mayborrow money and otherwise become obligated in the total authorized principalamount, and may issue within 6 years after the date of the election authorizingthe issue, bonds and other securities of the county school districtconstituting its general obligations to evidence obligations, in accordancewith the Local Government Securities Law.

3. This section does not prevent any county schooldistrict from funding, refunding or reissuing at any time any securities of thecounty school district pertaining to the facility or project as provided in theLocal Government Securities Law, except as therein limited.

(Added to NRS by 1971, 527; A 1985, 286; 1995, 772)

NRS 387.551 Jointoperation and maintenance: Powers of districts.

1. Subject to any contractual provisions between thecounty school districts, such county school districts hereby are jointly andseverally authorized and empowered to:

(a) Operate and maintain the facility or project uponits completion;

(b) Extend, better, alter, reconstruct, repair andotherwise improve the facility or project;

(c) Equip and reequip the facility or project;

(d) Sell, lease, exchange, transfer, assign orotherwise dispose of property pertaining to the facility or project which nolonger is necessary or desirable for use in connection therewith;

(e) Insure or provide for public liability insurance,property damage insurance and other insurance for the facility or project, orany part thereof, or any activity in connection therewith, against such risksand hazards as either or both county school districts may deem advisable;

(f) Receive, control, invest and order the expenditureof any and all moneys and funds pertaining to the facility or project;

(g) Arrange or contract for the furnishing by anyperson or agency, public or private, of services, privileges, works orfacilities for, or in connection with, the facility, and to assign, reassignand transfer any personnel of either county school district for the performanceof duties in connection with the facility or project;

(h) Make available for temporary use or otherwisedispose of any machinery, equipment, facilities and other property for thefacility or project;

(i) Make and keep records in connection with the facilityor project;

(j) Arbitrate any differences arising in connectionwith the facility or project;

(k) Commence, defend, conduct, terminate by settlementor otherwise, and otherwise participate in any litigation or other court,judicial or quasi-judicial action, by suit, action, mandamus or otherproceedings, concerning the facility or project;

(l) Use for or in connection with the facility orproject moneys, land and other real and personal property legally availabletherefor of either county school district not originally acquired therefor;

(m) Levy and collect from year to year for use for orin connection with the facility or project general (ad valorem) property taxesin the manner provided by law, including but not necessarily limited to the paymentof indebtedness incurred therefor;

(n) Budget and appropriate, and each county schooldistrict is hereby required and directed to budget and appropriate, from timeto time, general (ad valorem) tax proceeds and other revenues legally availabletherefor to pay all obligations arising from the exercise of any powers hereingranted as such obligations shall accrue and become due;

(o) Make contracts and execute all instrumentsnecessary or convenient, including but not limited to contracts with the FederalGovernment and the State;

(p) Acquire any construction work, improvement orimprovements of any nature in connection with the facility or project in themanner provided by law;

(q) Prescribe and enforce reasonable rules andregulations for the use of the facility or project;

(r) Provide for an agency, by any agreement authorizedin NRS 387.531 to 387.591, inclusive, to administer orexecute that or any collateral agreement, which agency may be one of theparties to the agreement, or a commission or board constituted pursuant to theagreement;

(s) Provide that any such agency shall possess thecommon power specified in the agreement, and may exercise it in the manner oraccording to the method provided in the agreement, but such power is subject tothe restrictions upon the manner of exercising the power of any one of thecontracting parties as designated by the agreement;

(t) Continue any agreement herein authorized for adefinite term not exceeding 50 years, or until rescinded or terminated, whichagreement may provide for the method by which it may be rescinded or terminatedby any party;

(u) Exercise all or any part or combination of thepowers herein granted; and

(v) Do and perform any and all other acts and thingsnecessary, convenient, desirable or appropriate to carry out the provisions of NRS 387.531 to 387.591, inclusive; and to have andexercise all rights and powers necessary or incidental to or implied from thespecific powers granted in NRS 387.531to 387.591, inclusive.

2. The specific powers in subsection 1 shall not beconsidered as a limitation upon any power necessary, convenient, desirable or appropriateto carry out the purposes and intent of NRS387.531 to 387.591, inclusive.

(Added to NRS by 1971, 527)

NRS 387.561 Interdistrictagreements and contracts. County school districtsmay from time to time enter into agreements, short-term and long-term, but notexceeding a term of 50 years, with each other concerning the facility orproject, including without limitation:

1. Agreements concerning any power granted to eitheror both by NRS 387.531 to 387.591, inclusive, the exercise of suchpowers, and conditions and limitations thereupon.

2. A contract allocating a portion of the facilitiesor project to the exclusive use and control of any party thereto.

3. A contract concerning the construction andequipment of the joint facility or project, the plans and specificationstherefor, and the work and materials incidental thereto, including withoutlimitation the acquisition or improvement of the site therefor, or both.

4. A contract for the ownership, care, custody,control, improvement, operation and maintenance of the facility or projectafter its acquisition and for defraying expenses incurred therefor.

5. A contract concerning the appointment of personnelfor the facility or project.

6. A contract providing for rules, regulations andorders for the use by the public, and charges, if any, therefor.

7. A contract for the allocation between the countyschool districts of the total utilization of the facility or project, themethod of effecting such allocation, and delineating the rights, if any, ofleasing any space in the facility or project and any facilities pertainingthereto, and the manner in which any real property, equipment, and otherpersonal property shall be disposed of during or at the end of any contractterm in the absence of subsequent agreement thereabout.

8. A contract concerning the maintenance of records ofand for the facility or project, the termination of the joint operation andmaintenance of the facility or project, and other legal, financial andadministrative arrangements to effect the joint operation and maintenance ofthe facility or project and its disposal in an orderly and equitable manner.

(Added to NRS by 1971, 529)

NRS 387.571 Powers,rights and benefits of officers, agents and employees of districts preserved. All of the powers, privileges, immunities and rights, exemptionsfrom laws and rules, all retirement, relief, disability, industrial insuranceand other benefits which apply to the activity of officers, agents or employeesof the county school district employing them when performing their respectivefunctions within the territorial limits of such political subdivision shallapply to them to the same degree and extent while engaged in the performance ofany of their functions and duties, extraterritorially or otherwise, pursuant toany contract made under the provisions of NRS387.531 to 387.591, inclusive, or otherwise,in connection with the facility or project and any activity pertaining thereto.

(Added to NRS by 1971, 530)

NRS 387.581 Publicpurpose. The exercise of any power authorizedin NRS 387.531 to 387.591, inclusive, upon behalf of anycounty school district by its board of trustees has been determined, and ishereby declared, to effect a public purpose; and the facility or project, asauthorized shall effect a public purpose.

(Added to NRS by 1971, 530)

NRS 387.591 Liberalconstruction; other powers preserved.

1. NRS 387.531to 387.591, inclusive, being necessaryto secure and preserve the public health, safety, convenience and welfare,shall be liberally construed to effect their purpose.

2. Nothing contained in NRS 387.531 to 387.591, inclusive, shall be construed aspreventing the exercise of any power granted to either such county schooldistrict or any officer, agent or employee thereof, by any other law.

(Added to NRS by 1971, 530)

REVIEW OF SCHOOL DISTRICTS BASED UPON FINANCIAL MANAGEMENTPRINCIPLES

NRS 387.602 Managementprinciples defined. As used in NRS 387.602 to 387.644, inclusive, management principlesmeans the financial management principles set forth in NRS 387.622.

(Added to NRS by 2005, 2439)

NRS 387.606 Useof school buses for commercial advertising: Authorization; conditions;establishment of special revenue fund; authorized use of fees. [Replacedin revision by NRS 387.800.]

 

NRS 387.607 Applicabilityto extent money is available. The provisionsof NRS 387.602 to 387.644, inclusive, apply only to theextent that money is made available by the Legislature to carry out theprovisions of those sections. The Legislative Counsel Bureau may accept gifts,grants and other sources of money to provide financial assistance in expandingthe number of school districts selected for reviews pursuant to NRS 387.602 to 387.644, inclusive.

(Added to NRS by 2005, 2439)

NRS 387.613 Reviewof school districts; recommendations by Legislative Auditor; selection ofschool districts by Legislature; qualifications and selection of consultant toconduct reviews; monitoring and oversight of consultant; self-assessment byschool district required.

1. Except as otherwise provided in NRS 387.607, each school district must undergoa review pursuant to NRS 387.602 to 387.644, inclusive, every 6 years unlessthe school district is granted an exemption from a review pursuant to NRS 387.631 or 387.639. The reviews must be conducted ineven-numbered years to ensure compliance with the deadlines set forth in NRS 387.602 to 387.644, inclusive.

2. To ensure compliance with subsection 1, theLegislative Auditor shall, on or before February 1 of each odd-numbered year,submit a written list to the Director of the Legislative Counsel Bureau fortransmission to the Legislature identifying each school district that theLegislative Auditor recommends for review in the next even-numbered year. TheLegislature may, by concurrent resolution, accept the recommendations of theLegislative Auditor or revise the recommendations of the Legislative Auditorand select each school district to be reviewed in the next even-numbered year.

3. If a concurrent resolution is adopted pursuant tosubsection 2, the Legislative Auditor shall, on or before September 1 afteradoption of the resolution, issue a request for proposals, in accordance withany applicable procedures of the Legislative Counsel Bureau, for a qualified,independent consultant to conduct a review of each school district selected fora review. A consultant:

(a) Must be located outside this State and haveprevious experience with auditing school districts or otherwise reviewingschool districts based upon the management principles;

(b) Must possess expertise and knowledge about themanagement principles;

(c) Must be capable of performing the requirements of NRS 387.602 to 387.644, inclusive, with integrity, objectivityand independence; and

(d) Must not be regularly engaged with or doingbusiness with a school district in this State.

4. The Legislative Auditor shall ensure that therequest for proposals includes, without limitation:

(a) The scope of the review, which must include anevaluation and determination of whether the school district is successfullycarrying out the management principles;

(b) A requirement that the consultant adhere to astandardized format for each review that it conducts, including, withoutlimitation, a standard and consistent format for presentation of the data,information and results of each review; and

(c) A requirement that the consultant include on theteam that will conduct the review at least one person who has experience withauditing school districts or otherwise reviewing school districts in accordancewith the management principles.

5. The Legislative Auditor shall review the proposalsof applicants and prepare a list of those applicants that, in the determinationof the Legislative Auditor, are the most qualified and capable of performingthe requirements of NRS 387.602 to 387.644, inclusive, with a ranking providedfor each applicant. On or before November 15, the Legislative Auditor shallsubmit his list and rankings of qualified applicants to the State Board. On orbefore January 1 of the even-numbered year in which the review will be conducted,the State Board shall select a consultant from the list submitted by theLegislative Auditor. Upon selection by the State Board, the Legislative CounselBureau shall prepare a written agreement between the Bureau and the consultantin accordance with any applicable procedures of the Bureau. The consultantshall commence the review of each school district selected for a review notlater than February 1.

6. The State Board is responsible for monitoring theperformance of the consultant and authorizing payments to the consultant. Uponauthorization of the State Board, the Legislative Counsel Bureau shall make thepayments to the consultant. The oversight committee established pursuant to NRS 387.618 shall assist the State Board inmonitoring the performance of the consultant.

7. If a school district is selected for a review, theboard of trustees of the school district shall conduct a self-assessment atleast 60 days before the commencement of the review by the consultant. Theself-assessment must include a review of the areas prescribed in subsection 2of NRS 387.622 based upon the managementprinciples. The results of the self-assessment must be submitted to theDepartment for transmission to the consultant not later than the date on whichthe review is commenced. The consultant shall use the self-assessment in thereview of the school district.

(Added to NRS by 2005, 2439)

NRS 387.618 Establishmentand duties of oversight committee to assist in process of review.

1. If a school district is selected for a review, anoversight committee must be established to assist the consultant in the processof the review for that school district. Each oversight committee must consistof:

(a) One member of the general public, appointed by theSpeaker of the Assembly;

(b) One member of the general public, appointed by theMajority Leader of the Senate;

(c) One member of the State Board, appointed by thePresident of the State Board;

(d) One member of the board of trustees of the schooldistrict, appointed by the president of that board;

(e) One member of a parent-teacher association locatedwithin the school district who has at least one child enrolled in a publicschool within the district, appointed by the Governor;

(f) One representative of:

(1) The Nevada State Education Association, appointedby the President of that Association; or

(2) At the discretion of the President of theNevada State Education Association, one representative of a recognized employeeorganization representing licensed educational personnel within the schooldistrict, appointed by a designated representative of that employeeorganization; and

(g) One school administrator who is employed by theschool district to provide administrative service at an individual school andnot to provide service at the district level, appointed by the President of theNevada Association of School Administrators.

2. An oversight committee established pursuant tosubsection 1 shall monitor the progress of the consultant in conducting thereview in accordance with NRS 387.602 to687.644, inclusive,including, without limitation, requesting periodic reports from the consultanton the status of the evaluation.

(Added to NRS by 2005, 2440)

NRS 387.622 Financialmanagement principles and areas for review; additional review by consultantauthorized.

1. Each school district selected for a review must beevaluated to determine whether the school district is successfully carrying outthe following financial management principles:

(a) Establishes and carries out policies, proceduresand internal controls to process business transactions efficiently;

(b) Uses cost-efficient measures to assess operationson a regular basis;

(c) Carries out measures to improve services and reducecosts;

(d) Maximizes the efficiency of money expended forpublic schools and ensures that resources are safeguarded;

(e) Structures its organization and staff in a mannerthat provides efficiency and excellence in the delivery of a public education;

(f) Establishes benchmarks for productivity andperformance;

(g) Makes financial planning and budgeting decisions ina manner that is linked to the priorities of the school district, including,without limitation, the performance of pupils;

(h) Uses options for financing debt in a manner thatprovides for maximum efficiency;

(i) Invests proceeds from bonds and operating resourcesto earn an appropriate and comparable rate of return; and

(j) Uses debt management and investment policies in amanner that is representative of current market and risk profiles.

2. Each school district selected for a review must beevaluated based upon the management principles set forth in subsection 1 ineach of the following areas:

(a) Financial management;

(b) Facilities management, including, withoutlimitation, the plan for funding the rebuilding of older schools and theprograms of preventative maintenance;

(c) Personnel management;

(d) District organization, including, withoutlimitation, an evaluation of the efficiency and cost-effectiveness of themanagement structure of the school district to identify possible measures forcost-savings;

(e) Employee health plans and health plans for retiredemployees;

(f) Transportation, including, without limitation, anevaluation of whether the school district ensures the safe and efficienttransportation of pupils;

(g) Alignment with the needs and expectations of thepublic, including, without limitation, surveys of the residents of thecommunity;

(h) Effective delivery of educational services andprograms; and

(i) Any other area that, in the professional judgmentand expertise of the consultant, warrants a review based upon the managementprinciples.

3. In addition to the areas required to be reviewedpursuant to subsection 2, if a particular school within a school district thatis selected for a review receives a sum of money for the purpose of providingeducation to pupils and the specific use of that money is otherwise within thesole discretion of the school, the consultant may:

(a) Review the manner by which decisions were madeconcerning the use of that money;

(b) Review the use of that money by the school; and

(c) Track the expenditures made with that money.

Theconsultant shall limit the scope of his review pursuant to this subsection tothat particular sum of money and is not authorized to review all accounts andfunds at a particular school.

(Added to NRS by 2005, 2441)

NRS 387.626 Dutiesof consultant; Department required to provide technical support; availabilityof books, accounts and records necessary for conducting review.

1. A consultant selected to perform a review of aschool district shall:

(a) Consider the results and recommendations of otheraudits, if any, conducted by or on behalf of the school district in theimmediately preceding 6 years;

(b) Hold at least one public meeting in the county inwhich the school district is located to explain the process of the review andto obtain information from school administrators, teachers, parents andguardians, pupils, members of the business community and other residents of theschool district concerning the operation and management of the school district;and

(c) Supervise and oversee his employees and otherpersons enlisted by the consultant to assist with the review.

2. The Department shall provide technical support andexpertise to the consultant during the review to ensure that the objectives ofthe review and the requirements of NRS387.602 to 387.644, inclusive, aremet.

3. Upon the request of the consultant, the Department,the board of trustees of the school district, the superintendent of schools ofthe school district and the employees of the school district shall makeavailable to the consultant all books, accounts, claims, reports, vouchers,records and other information, confidential or otherwise, necessary for theconsultant to carry out his review.

4. The consultant shall:

(a) Maintain the confidentiality of all information,records and data obtained for the purpose of carrying out the provisions of NRS 387.602 to 387.644, inclusive;

(b) Use such information, records and data only for thepurpose of carrying out the provisions of NRS387.602 to 387.644, inclusive, andfor no other purposes;

(c) Require his employees and other persons enlisted bythe consultant to assist with the review to comply with the confidentialityrequirements of this subsection; and

(d) Keep or cause to be kept a complete file of copiesof all reports of reviews conducted pursuant to NRS 387.602 to 387.644, inclusive.

5. All working papers from a review conducted pursuantto NRS 387.602 to 387.644, inclusive, are confidential andmay be destroyed by the consultant 8 years after the final written report ofthe review is issued, except that the consultant:

(a) Shall release such working papers when subpoenaedby a court;

(b) Shall make such working papers available to theLegislative Auditor upon his request; and

(c) May make such working papers available forinspection by an authorized representative of any other governmental entity fora matter officially before him.

(Added to NRS by 2005, 2442)

NRS 387.631 Finalwritten report of review; issuance of preliminary report to school district;response by school district; exemption from next review for certain schooldistricts; availability of reports to public.

1. The consultant shall complete the review of aschool district within 6 months after the date on which the review iscommenced. The consultant shall prepare a final written report of the reviewthat:

(a) Is documented by sufficient, competent and relevantevidence to provide a reasonable basis for the findings and conclusions of theconsultant.

(b) If the consultant determines that the schooldistrict is not successfully carrying out the management principles in one ormore of the areas set forth in subsection 2 of NRS 387.622, includes a plan for correctiveaction for the school district to carry out successfully the managementprinciples in each area within 2 years. The plan must:

(1) Be logically connected to and substantiatedby the results of the review;

(2) Be specific and detailed; and

(3) Identify methods for the school district toreduce its costs and expenses.

(c) Includes the written response of the school districtprepared pursuant to subsection 2.

2. The consultant shall furnish a copy of thepreliminary report of the review to the superintendent of schools of the schooldistrict and discuss the report with the superintendent. Within 30 days afterreceipt of the preliminary report, the superintendent shall, in consultationwith the board of trustees of the school district, prepare a written responseto the preliminary report that includes a statement of explanation or rebuttalof any findings contained in the preliminary report. The consultant shallinclude the written response of the school district in his final written reportsubmitted pursuant to subsection 1.

3. The final written report of the consultant must besubmitted to the board of trustees of the school district, the State Board, theLegislative Auditor and the Director of the Legislative Counsel Bureau fortransmission to the Legislature within 60 days after the review is complete.

4. If the consultant determines that a school districtis successfully carrying out the management principles for each of the areasset forth in subsection 2 of NRS 387.622,the school district is exempt from its next 6-year review unless the Legislaturesubsequently determines that the conditions or circumstances occurring withinthe school district warrant another review pursuant to NRS 387.602 to 387.644, inclusive. If a school district isexempt pursuant to this subsection, the exemption is valid for only one reviewand the school district must undergo a review at least once every 12 years.

5. The preliminary report and the final report must bemade available to the general public.

(Added to NRS by 2005, 2443)

NRS 387.636 Schooldistrict required to hold public meeting concerning final report; vote whetherto adopt corrective action plan; effect of failure to vote within prescribedtime; appearance before Legislature under certain circumstances.

1. Upon receipt of a final written report pursuant to NRS 387.631, the board of trustees of theschool district shall hold a public meeting to review the findings andrecommendations of the consultant. The consultant or his designee must bepresent at the meeting and available for discussion and questions.

2. Except as otherwise provided in subsection 3, notlater than 90 days after the issuance of the final written report, the board oftrustees of the school district shall vote on whether to adopt the plan forcorrective action if such a plan is recommended by the consultant. Thesuperintendent of schools of the school district shall provide written noticeof the outcome of the vote to the State Board, the Legislative Auditor and theDirector of the Legislative Counsel Bureau for transmission to the Legislature.The board of trustees of a school district may vote to reverse a decision notto adopt a plan for corrective action if sufficient time remains, as determinedby the board of trustees, to carry out the management principles within 2 yearsafter the issuance of the final report.

3. If the board of trustees of a school district doesnot vote on whether to adopt a plan for corrective action within 90 days afterthe issuance of the final written report, the:

(a) Superintendent of schools of the school districtshall provide written notice to the State Board, the Legislative Auditor andthe Director of the Legislative Counsel Bureau for transmission to theLegislature;

(b) Department may assess the situation and contact themembers of the board of trustees to urge the board to take a vote; and

(c) State Board may allow an additional 30 days for theboard of trustees to vote on the plan.

4. If the board of trustees of the school districtdoes not vote on a plan for corrective action or if the board of trustees votesnot to adopt a plan for corrective action, the members of the board of trusteesmay be required to appear and present testimony before the Legislature or astanding committee of the Legislature to examine any justification of thefailure of the board of trustees to vote on the plan or to adopt the plan, asapplicable.

(Added to NRS by 2005, 2444)

NRS 387.639 Reportsby school district concerning progress on corrective action plan; review ofreports by Legislative Auditor and Legislature; exemption from next review forcertain school districts.

1. If the board of trustees of a school districtadopts a plan for corrective action, the board of trustees of the schooldistrict shall prepare, on or before February 1:

(a) A written progress report for submission, in theeven-numbered year after the plan is adopted, to the State Board, theLegislative Committee on Education and the Legislative Auditor.

(b) A final written report for submission, in theodd-numbered year after the plan is adopted, to the State Board, theLegislative Auditor and the Director of the Legislative Counsel Bureau fortransmission to the Legislature.

2. The written progress report and the final writtenreport must indicate the extent to which the plan has been carried out, theextent to which the plan has not been carried out and the reasons for anyfailure to carry out the plan.

3. Upon receipt of the final written report of theschool district, the Legislative Auditor shall:

(a) Review the report and the plan for correctiveaction;

(b) Determine whether the school district successfullycarried out the plan for corrective action and complies with the managementprinciples for each of the areas set forth in subsection 2 of NRS 387.622; and

(c) Submit a written report of his determination to theLegislature, including a recommendation whether the school district should begranted an exemption from its next 6-year review.

4. The Legislature or a standing committee of theLegislature may:

(a) Review the reports submitted pursuant to thissection and the written determination of the Legislative Auditor; and

(b) Conduct hearings to examine any justification forthe failure of a school district to carry out successfully the managementprinciples or to fully carry out the plan for corrective action.

5. The Legislature may, by concurrent resolution,determine that the school district complies with the management principles andgrant an exemption to the school district from its next 6-year review. If aschool district is exempt pursuant to this subsection, the exemption is validfor only one review and the school district must undergo a review at least onceevery 12 years.

(Added to NRS by 2005, 2444)

NRS 387.644 Annualreporting by school districts exempt from review.

1. If a school district is granted an exemptionpursuant to NRS 387.631 or 387.639, the board of trustees of the schooldistrict shall provide written notice for each year that the exemption applieswhich includes:

(a) A determination of whether the school districtcontinues to carry out the management principles; and

(b) Any changes in the policies or operations of theschool district or any other circumstances occurring in the school districtthat do not conform to the management principles.

2. The written notice must be submitted on or beforeJanuary 1 to:

(a) In even-numbered years, the State Board, theLegislative Committee on Education and the Legislative Auditor.

(b) In odd-numbered years, the State Board, theLegislative Auditor and the Director of the Legislative Counsel Bureau fortransmission to the Legislature.

(Added to NRS by 2005, 2445)

MISCELLANEOUS PROVISIONS

NRS 387.800 Useof school buses for commercial advertising: Authorization; conditions;establishment of special revenue fund; authorized use of fees.

1. A board of trustees of a school district may:

(a) Authorize for commercial advertising the use ofbuses owned by the school district; and

(b) Establish the fees and other terms and conditionswhich are applicable to such advertising.

2. Any advertising authorized pursuant to subsection1:

(a) Must conform with all applicable local ordinancesregarding signs; and

(b) Must not:

(1) Promote hostility, disorder or violence;

(2) Attack ethnic, racial or religious groups;

(3) Invade the rights of others;

(4) Inhibit the functioning of the school;

(5) Override the schools identity;

(6) Promote the use of controlled substances,dangerous drugs, intoxicating liquor, tobacco or firearms;

(7) Promote any religious organization;

(8) Contain political advertising; or

(9) Promote entertainment deemed improper orinappropriate by the board of trustees.

3. The board of trustees of each school district thatreceives money pursuant to subsection 1 shall establish a special revenue fundand direct that the money it receives pursuant to subsection 1 be deposited inthat fund. Money in the fund must not be commingled with money from othersources. The board of trustees shall disburse the money in the fund to theschools within its district giving preference to the schools within thedistrict that the district has classified as serving a significant proportion ofpupils who are economically disadvantaged.

4. A school that receives money pursuant to subsection 3shall expend the money only to purchase textbooks and laboratory equipment andto pay for field trips.

(Added to NRS by 1997, 1757)(Substituted in revisionfor NRS 387.606)

 

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