1. The Authority shall, subject to the provisions of subsection 2, select a franchisee for the construction and operation of a high-speed rail system, to be commonly known as the Nevada High-Speed Rail System, principally following the route of Interstate Highway No. 15 between Las Vegas, Nevada, and a point in southern California.

2. The Authority shall select a franchisee as required by subsection 1 based on criteria which must include, without limitation:

(a) The extent to which environmental studies have been completed by or on behalf of a potential franchisee;

(b) Confirmation by a potential franchisee of the level of private investment that has been made or committed for the Nevada High-Speed Rail System;

(c) A review of the readiness of a potential franchisee for the Nevada High-Speed Rail System to engage in construction of that System; and

(d) Pending or completed permit applications to implement the Nevada High-Speed Rail System.

3. A franchisee selected pursuant to this section may, with the assistance of the Authority:

(a) Acquire or gain control or use of land for rights-of-way, stations and ancillary uses through purchase, gift, lease, use permit or easement.

(b) Conduct engineering and other studies related to the selection and acquisition of rights-of-way, including, without limitation, environmental impact studies, socioeconomic impact studies and financial feasibility studies. All local, state and federal environmental requirements must be met by the franchisee.

(c) Accept grants, gifts, fees and allocations from Nevada or its political subdivisions, the Federal Government, foreign governments and any private source.

(d) Issue debt, but this debt does not constitute an obligation of the State of Nevada, or any of its political subdivisions.

(e) Hire such staff and any consultants as deemed appropriate.

(f) Obtain all necessary permits and certificates from governmental entities in California and Nevada, recognizing the preemptive federal authority of the Surface Transportation Board of the United States Department of Transportation over interstate passenger railroads.

(g) Negotiate, enter into and execute all necessary local, regional and state governmental agreements to allow for the construction and implementation of the Nevada High-Speed Rail System.

4. The franchisee selected pursuant to this section must coordinate the implementation of the Nevada High-Speed Rail System with all governmental entities that have jurisdiction over the System, including, without limitation, the relevant counties and the Department of Transportation.

(Added to NRS by 2015, 1264)