Governor signs bill to fund road projects, create jobs

By Kyle B. Hansen, Cy Ryan

Thursday, March 11, 2010 | 6:05 p.m.

Gov. Jim Gibbons signed today the so-called "jobs bill" passed by the Legislature during last month's special session.

The new law will create up to 1,000 new jobs by extending an existing tax to finance road projects, according to the governor. At today's meeting of the Regional Transportation Commission, officials said 2,000 jobs would be created in Clark County by using the funds for road projects.

“With 187,000 Nevadans unemployed, I am doing everything in my power to end the misery for their families,” Gibbons said in a written statement. “This jobs bill is just a small step, but it is a step in the right direction.”

Clark County voters in 2002 approved a half-cent increase in the sales tax, which was due to expire in June 2028. Extending that tax will allow the state to issue up to $500 million in bonds to pay for the projects, said Dan Burns, Gibbons' communications director.

Senate Bill 5 also requires excess money in a fund to repair leaking underground storage tanks to be directed to road projects.

In addition, the bill permits the state Department of Motor Vehicles to raise its fees for verifying the ownership of out-of-state vehicles registered in Nevada. The law now allows the department to collect $1 for this service. But the $1 notation in the law was eliminated and the agency can set the fee by regulation.

There is no decision yet what the DMV will charge. But Burns said the governor is giving departments flexibility.

Included in the bill is authorization for the Regional Transportation Commission of Southern Nevada to continue its current 1/8th cent sales tax for transportation projects.

The tax was to expire in 2028 or when it had raised $1.7 billion. By allowing the tax to continue indefinitely, the RTC can issue bonds to finance constructions in the near future and then use future taxes to pay the bonds.

RTC General Manager Jacob Snow said the commission will be able to issue at least $169 million in bonds in the near future.

The bill also diverts extra funds from underground fuel storage tanks to transportation projects. That fund is expected to generate about $4.5 million per year for the RTC, Snow said.

The two sources of funding are expected to create about 2,000 road construction jobs, Snow said.

Projects that will be ready to go out to bid by May and begin construction by August will be given priority access to these funds, Snow said.