(Reprinted with amendments adopted on July 19, 2003)

 

Senate Bill No. 5–Committee of the Whole

 

June 25, 2003

____________

 

Referred to Committee of the Whole

 

SUMMARY—Makes various changes related to state financial administration. (BDR 32‑8)

 

FISCAL NOTE:                   Effect on Local Government: No.

                   Effect on the State: Contains Appropriation included in Executive Budget.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state financial administration; making appropriations for the support of the class-size reduction program; requiring the Department of Education to prescribe a minimum amount of money that each school district must expend each year for textbooks, instructional supplies and instructional hardware; requiring that a certain amount of money must be withheld from the basic support allocation to a school district if the school district does not expend the required amount; revising provisions governing the purchase of retirement credit for certain teachers; requiring the boards of trustees of school districts to purchase retirement credit for certain school psychologists under certain circumstances; apportioning the State Distributive School Account in the State General Fund for the 2003-2005 biennium; authorizing certain expenditures; providing for a final adjustment following the close of a fiscal year; making various other changes concerning the administration of money for public schools; making appropriations; making various changes to Senate Bill No. 6 of this session before that bill becomes effective to revise the provisions of that bill regarding various new, replaced and increased taxes and the administration of taxes and state finances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1.  Chapter 387 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  On or before July 1 of each year, the Department, in

1-4  consultation with the Budget Division of the Department of

1-5  Administration and the Fiscal Analysis Division of the Legislative

1-6  Counsel Bureau, shall develop or revise, as applicable, a formula

1-7  for determining the minimum amount of money that each school

1-8  district is required to expend each fiscal year for textbooks,

1-9  instructional supplies and instructional hardware. The formula

1-10  must be used only to develop expenditure requirements and must

1-11  not be used to alter the distribution of money for basic support to

1-12  school districts.

1-13      2.  Upon approval of the formula pursuant to subsection 1, the

1-14  Department shall provide written notice to each school district

1-15  within the first 30 days of each fiscal year that sets forth the

1-16  required minimum combined amount of money that the school

1-17  district must expend for textbooks, instructional supplies and

1-18  instructional hardware for that fiscal year.

1-19      3.  On or before January 1 of each year, the Department shall

1-20  determine whether each school district has expended, during the

1-21  immediately preceding fiscal year, the required minimum amount

1-22  of money set forth in the notice provided pursuant to subsection 2.

1-23  In making this determination, the Department shall use the report

1-24  submitted by the school district pursuant to NRS 387.303.

1-25      4.  Except as otherwise provided in subsection 5, if the

1-26  Department determines that a school district has not expended the

1-27  required minimum amount of money set forth in the notice

1-28  provided pursuant to subsection 2, a reduction must be made from

1-29  the basic support allocation otherwise payable to that school

1-30  district in an amount that is equal to the difference between the

1-31  actual combined expenditure for textbooks, instructional supplies

1-32  and instructional hardware and the minimum required combined

1-33  expenditure set forth in the notice provided pursuant to subsection

1-34  2. A reduction in the amount of the basic support allocation

1-35  pursuant to this subsection:

1-36      (a) Does not reduce the amount that the school district is

1-37  required to expend on textbooks, instructional supplies and

1-38  instructional hardware in the current fiscal year; and

1-39      (b) Must not exceed the amount of basic support that was

1-40  provided to the school district for the fiscal year in which the

1-41  minimum expenditure amount was not satisfied.

2-1  5.  If the actual enrollment of pupils in a school district is less

2-2  than the enrollment included in the projections used in the school

2-3  district’s biennial budget submitted pursuant to NRS 387.303, the

2-4  required expenditure for textbooks, instructional supplies and

2-5  instructional hardware pursuant to this section must be reduced

2-6  proportionately.

2-7  Sec. 2.  NRS 387.205 is hereby amended to read as follows:

2-8  387.205  1.  Subject to the limitations set forth in NRS

2-9  387.207 [,] and section 1 of this act,money on deposit in the county

2-10  school district fund or in a separate account, if the board of trustees

2-11  of a school district has elected to establish such an account pursuant

2-12  to the provisions of NRS 354.603, must be used for:

2-13      (a) Maintenance and operation of the public schools controlled

2-14  by the county school district.

2-15      (b) Payment of premiums for Nevada industrial insurance.

2-16      (c) Rent of schoolhouses.

2-17      (d) Construction, furnishing or rental of teacherages, when

2-18  approved by the Superintendent of Public Instruction.

2-19      (e) Transportation of pupils, including the purchase of new

2-20  buses.

2-21      (f) Programs of nutrition, if such expenditures do not curtail the

2-22  established school program or make it necessary to shorten the

2-23  school term, and each pupil furnished lunch whose parent or

2-24  guardian is financially able so to do pays at least the actual cost of

2-25  the lunch.

2-26      (g) Membership fees, dues and contributions to an

2-27  interscholastic activities association.

2-28      (h) Repayment of a loan made from the State Permanent School

2-29  Fund pursuant to NRS 387.526.

2-30      2.  Subject to the limitations set forth in NRS 387.207[,] and

2-31  section 1 of this act, money on deposit in the county school district

2-32  fund, or in a separate account, if the board of trustees of a school

2-33  district has elected to establish such an account pursuant to the

2-34  provisions of NRS 354.603, when available, may be used for:

2-35      (a) Purchase of sites for school facilities.

2-36      (b) Purchase of buildings for school use.

2-37      (c) Repair and construction of buildings for school use.

2-38      Sec. 3.  NRS 387.207 is hereby amended to read as follows:

2-39      387.207 1.  Except as otherwise provided in this section, in

2-40  each school year a school district shall spend for [textbooks,] library

2-41  books and [supplies and materials relating to instruction, including,

2-42  without limitation,] software for computers[,] an amount of money,

2-43  expressed as an amount per pupil, that is at least equal to the

2-44  average of the total amount of money that was expended per year by

3-1  the school district for those items in the immediately preceding 3

3-2  years.

3-3  2.  Except as otherwise provided in this section, in each school

3-4  year a school district shall spend for the purchase of equipment

3-5  relating to instruction, including, without limitation, equipment for

3-6  telecommunications and for the purchase of equipment relating to

3-7  the transportation of pupils, an amount of money, expressed as an

3-8  amount per pupil, that is at least equal to the average of the total

3-9  amount of money that was expended per year by the school district

3-10  for those items in the immediately preceding 3 years.

3-11      3.  Except as otherwise provided in this section, in each school

3-12  year a school district shall spend for the maintenance and repair of

3-13  equipment, vehicles, and buildings and facilities an amount of

3-14  money, expressed as an amount per pupil, that is at least equal to the

3-15  average of the total amount of money that was expended per year by

3-16  the school district for those items in the immediately preceding 3

3-17  years, excluding any amount of money derived from the proceeds of

3-18  bonds.

3-19      4.  A school district may satisfy the expenditures required by

3-20  subsections 1, 2 and 3 if the school district spends an aggregate

3-21  amount of money for all the items identified in those subsections

3-22  that is at least equal to the average of the total amount of money

3-23  expended by the school district per year for all those items in the

3-24  immediately preceding 3 years.

3-25      5.  A school district is not required to satisfy the expenditures

3-26  required by this section for a school year in which:

3-27      (a) The total number of pupils who are enrolled in public

3-28  schools within the school district has declined from the immediately

3-29  preceding school year; or

3-30      (b) The total revenue available in the general fund of the school

3-31  district has declined from the immediately preceding school year.

3-32      Sec. 4.  NRS 391.165 is hereby amended to read as follows:

3-33      391.165  1.  Except as otherwise provided in subsection 3 [of

3-34  this section] and except as otherwise required as a result of NRS

3-35  286.537, the board of trustees of a school district shall pay the cost

3-36  for a licensed teacher to purchase one-fifth of a year of service

3-37  pursuant to subsection 2 of NRS 286.300 if:

3-38      (a) The teacher is a member of the Public Employees’

3-39  Retirement System and has at least 5 years of service;

3-40      (b) The teacher has been employed as a licensed teacher in this

3-41  state for at least 5 consecutive school years, regardless of whether

3-42  the employment was with one or more school districts in this state;

3-43      (c) Each evaluation of the teacher conducted pursuant to NRS

3-44  391.3125 is at least satisfactory for the years of employment

3-45  required by paragraph (b); and

4-1  (d) In addition to the years of employment required by

4-2  paragraph (b), the teacher has been employed as a licensed teacher

4-3  for [1 school year] 2 school yearsat a school within the school

4-4  district which, [for that school year, carries] during his employment

4-5  at the school:

4-6       (1) Carried the designation of demonstrating need for

4-7  improvement [pursuant to NRS 385.367.] ; or

4-8       (2) At least 65 percent of the pupils who are enrolled in the

4-9  school are children who are at risk.

4-10  The provisions of this paragraph do not require consecutive years

4-11  of employment or employment at the same school within the

4-12  school district.

4-13      2.  Except as otherwise provided in subsection 3, the board of

4-14  trustees of a school district shall pay the cost for a licensed teacher

4-15  to purchase one-fifth of a year of service for each year that a teacher

4-16  [is employed as a teacher at a school within the school district that is

4-17  described in paragraph (d)] satisfies the requirements of

4-18  subsection 1.

4-19      3.  In no event may the years of service purchased by a licensed

4-20  teacher as a result of subsection 2 of NRS 286.300 exceed 5 years.

4-21      4.  The board of trustees of a school district shall not:

4-22      (a) Assign or reassign a licensed teacher to circumvent the

4-23  requirements of this section.

4-24      (b) Include[,] as part of a teacher’s salary[,] the costs of paying

4-25  the teacher to purchase service pursuant to this section.

4-26      5.  As used in this section[, “service”] :

4-27      (a) A child is “at risk” if he is eligible for free or reduced-price

4-28  lunches pursuant to 42 U.S.C. §§ 1751 et. seq.

4-29      (b) “Service” has the meaning ascribed to it in NRS 286.078.

4-30      Sec. 5.  NRS 391.165 is hereby amended to read as follows:

4-31      391.165  1.  Except as otherwise provided in subsection 3 of

4-32  this section and except as otherwise required as a result of NRS

4-33  286.537, the board of trustees of a school district shall pay the cost

4-34  for a licensed teacher or licensed school psychologistto purchase

4-35  one-fifth of a year of service pursuant to subsection 2 of NRS

4-36  286.300 if:

4-37      (a) The teacher or school psychologist is a member of the Public

4-38  Employees’ Retirement System and has at least 5 years of service;

4-39      (b) The teacher or school psychologisthas been employed as a

4-40  licensed teacher or licensed school psychologist in this state for at

4-41  least 5 consecutive school years, regardless of whether the

4-42  employment was with one or more school districts in this state;

4-43      (c) Each evaluation of the teacher or school psychologist

4-44  conducted pursuant to NRS 391.3125 is at least satisfactory for the

4-45  years of employment required by paragraph (b); and

5-1  (d) In addition to the years of employment required by

5-2  paragraph (b) [, the] :

5-3       (1) The teacher has been employed as a licensed teacher for

5-4  2 school years at a school within the school district which, during

5-5  his employment at the school:

5-6       [(1)] (I) Carried the designation of demonstrating need for

5-7  improvement; or

5-8       [(2)] (II) At least 65 percent of the pupils who are enrolled

5-9  in the school are children who are at risk[.] ;

5-10          (2) The teacher holds an endorsement in the field of

5-11  mathematics, science, special education or English as a second

5-12  language and has been employed for at least 1 school year to teach

5-13  in the subject area for which he holds an endorsement; or

5-14          (3) The school psychologist has been employed as a

5-15  licensed school psychologist for at least 1 school year.

5-16  The provisions of this paragraph do not require consecutive years of

5-17  employment or employment at the same school within the school

5-18  district.

5-19      2.  Except as otherwise provided in subsection 3, the board of

5-20  trustees of a school district shall pay the cost for a licensed teacher

5-21  or school psychologistto purchase one-fifth of a year of service for

5-22  each year that a teacher or school psychologist satisfies the

5-23  requirements of subsection 1. If, in 1 school year, a teacher

5-24  satisfies the criteria set forth in both subparagraphs (1) and (2) of

5-25  paragraph (d) of subsection 1, the school district in which the

5-26  teacher is employed is not required to pay for more than one-fifth

5-27  of a year of service pursuant to subsection 2 of NRS 286.300 for

5-28  that school year.

5-29      3.  In no event may the years of service purchased by a licensed

5-30  teacher or school psychologist as a result of subsection 2 of NRS

5-31  286.300 exceed 5 years.

5-32      4.  The board of trustees of a school district shall not:

5-33      (a) Assign or reassign a licensed teacher or school psychologist

5-34  to circumvent the requirements of this section.

5-35      (b) Include[,] as part of a teacher’s or school psychologist’s

5-36  salary[,] the costs of paying the teacher or school psychologistto

5-37  purchase service pursuant to this section.

5-38      5.  As used in this section:

5-39      (a) A child is “at risk” if he is eligible for free or reduced-price

5-40  lunches pursuant to 42 U.S.C. §§ 1751 et. seq.

5-41      (b) “Service has the meaning ascribed to it in NRS 286.078.

 

 

 

6-1  Sec. 6.  Section 4 of Senate Bill No. 6 of the 20th Special

6-2  Session of the Nevada Legislature is hereby amended to read as

6-3  follows:

6-4  Sec. 4.  “Employer” means any employer who is

6-5  required to pay a contribution pursuant to NRS 612.535 for

6-6  any calendar quarter, except an Indian tribe, nonprofit

6-7  organization or political subdivision. For the purposes of

6-8  this section:

6-9  1.  “Indian tribe” includes any entity described in

6-10  subsection 10 of NRS 612.055.

6-11      2.  “Nonprofit organization” means a nonprofit

6-12  religious, charitable, fraternal or other organization that

6-13  qualifies as a tax-exempt organization pursuant to 26

6-14  U.S.C. § 501(c).

6-15      3.  “Political subdivision” means any entity described in

6-16  subsection 9 of NRS 612.055.

6-17      Sec. 7.  Section 11 of Senate Bill No. 6 of the 20th Special

6-18  Session of the Nevada Legislature is hereby amended to read as

6-19  follows:

6-20      Sec. 11.  1.  There is hereby imposed an excise tax on

6-21  each employer at the rate of 0.85 percent of the wages, as

6-22  defined in NRS 612.190, paid by the employer during a

6-23  calendar quarter with respect to employment.

6-24      2.  The tax imposed by this section must not be

6-25  deducted, in whole or in part, from any wages of persons in

6-26  the employment of the employer.

6-27      3.  Each employer shall, on or before the last day of the

6-28  month immediately following each calendar quarter for

6-29  which the employer is required to pay a contribution

6-30  pursuant to NRS 612.535:

6-31      (a) File with the Department:

6-32          (1) A return on a form prescribed by the Department;

6-33  and

6-34          (2) A copy of any report required by the Employment

6-35  Security Division of the Department of Employment,

6-36  Training and Rehabilitation for determining the amount of

6-37  the contribution required pursuant to NRS 612.535 for any

6-38  wages paid by the employer during that calendar quarter;

6-39  and

6-40      (b) Remit to the Department any tax due pursuant to this

6-41  chapter for that calendar quarter.

6-42      4.  Except as otherwise provided in subsection 5, an

6-43  employer may deduct from the total amount of wages

6-44  reported and upon which the excise tax is imposed pursuant

6-45  this section any amount authorized pursuant to this section

7-1  that is paid by the employer for health insurance or a health

7-2  benefit plan for its employees in the calendar quarter for

7-3  which the tax is paid. The amounts for which the deduction

7-4  is allowed include:

7-5  (a) For an employer providing a program of self-

7-6  insurance for its employees, all amounts paid during the

7-7  calendar quarter for claims, direct administrative services

7-8  costs, including such services provided by the employer, and

7-9  any premiums paid for individual or aggregate stop-loss

7-10  insurance coverage. An employer is not authorized to

7-11  deduct the costs of a program of self-insurance unless the

7-12  program is a qualified employee welfare benefit plan

7-13  pursuant to the Employee Retirement Income Security Act

7-14  of 1974, 29 U.S.C. §§ 1001 et seq.

7-15      (b) The premiums for a policy of health insurance or

7-16  reinsurance for a health benefit plan for its employees.

7-17      (c) Any amounts paid by an employer to a Taft-Hartley

7-18  trust formed pursuant to 29 U.S.C. § 186(c)(5) for

7-19  participation in an employee welfare benefit plan.

7-20      (d) Such other similar payments for health care or

7-21  insurance for health care for employees as are authorized

7-22  by the Department.

7-23      5.  An employer may not deduct from the wages upon

7-24  which the excise tax is imposed pursuant this section:

7-25      (a) Amounts paid for health care or premiums paid for

7-26  insurance for an industrial injury or occupational disease

7-27  for which coverage is required pursuant to chapters 616A to

7-28  616D, inclusive, or 617 of NRS; or

7-29      (b) Any payments made by employees for health care or

7-30  health insurance or amounts deducted from the wages of

7-31  employees for such care or insurance.

7-32      6.  An employer claiming the deduction allowed

7-33  pursuant to subsection 4 shall submit with the return filed

7-34  pursuant to subsection 3 proof of the amount paid in the

7-35  calendar quarter that qualifies for the deduction. If the

7-36  amount of the deduction exceeds the amount of reported

7-37  wages, the excess amount may be carried forward to the

7-38  following calendar quarter until the deduction is exhausted.

7-39      7.  As used in this section, “employee welfare benefit

7-40  plan” has the meaning ascribed to it in 29 U.S.C. § 1002.

7-41      Sec. 8.  Section 24.18 of Senate Bill No. 6 of the 20th Special

7-42  Session of the Nevada Legislature is hereby amended to read as

7-43  follows:

7-44      Sec. 24.18. 1.  Except as otherwise provided in

7-45  subsection 2, “financial institution” means:

8-1  (a) An institution licensed, registered or otherwise

8-2  authorized to do business in this state pursuant to the

8-3  provisions of chapter 604, 645B, 645E or 649 of NRS or title

8-4  55 or 56 of NRS, or a similar institution chartered or

8-5  licensed pursuant to federal law and doing business in this

8-6  state;

8-7  (b) Any other person conducting loan or credit card

8-8  processing activities in this state; and

8-9  (c) Any other bank, bank holding company, national

8-10  bank, savings association, federal savings bank, trust

8-11  company, credit union, building and loan association,

8-12  investment company, registered broker or dealer in

8-13  securities or commodities, finance company, dealer in

8-14  commercial paper or other business entity engaged in the

8-15  business of lending money, providing credit, securitizing

8-16  receivables or fleet leasing, or any related business entity,

8-17  doing business in this state.

8-18      2.  The term does not include:

8-19      (a) A nonprofit organization that is recognized as

8-20  exempt from taxation pursuant to 26 U.S.C. § 501(c).

8-21      (b) A credit union organized under the provisions of

8-22  chapter 678 of NRS or the Federal Credit Union Act.

8-23      Sec. 9.  Section 24.20 of Senate Bill No. 6 of the 20th Special

8-24  Session of the Nevada Legislature is hereby amended to read as

8-25  follows:

8-26      Sec. 24.20.  “Gross revenue” means the total amount

8-27  of the money and the value of any other consideration

8-28  received or receivable by a financial institution which the

8-29  financial institution is required to report for the purposes of

8-30  federal income taxation.

8-31      Sec. 10.  Section 24.46 of Senate Bill No. 6 of the 20th Special

8-32  Session of the Nevada Legislature is hereby amended to read as

8-33  follows:

8-34      Sec. 24.46. The Department shall adopt regulations

8-35  providing for the allocation or apportionment to this state of

8-36  the tax liability of a financial institution pursuant to this

8-37  chapter. If the federal taxable income of a financial

8-38  institution is derived from business conducted both within

8-39  and outside this state, whether or not the financial

8-40  institution is physically present in another state or is subject

8-41  to another state’s jurisdiction to impose a tax on the

8-42  financial institution, the apportionment factor for

8-43  determining the tax liability of the financial institution

8-44  derived from business conducted by it in this state must

8-45  consist of a fraction, the numerator of which is the gross

9-1  revenue of the financial institution from customers whose

9-2  address is within this state, and the denominator of which is

9-3  the gross revenue of the financial institution from its entire

9-4  operation as a financial institution.

9-5  Sec. 11.  Section 27 of Senate Bill No. 6 of the 20th Special

9-6  Session of the Nevada Legislature is hereby amended to read as

9-7  follows:

9-8  Sec. 27. “Amount paid for live entertainment” means:

9-9  1.  If the live entertainment is provided at a facility with

9-10  a maximum seating capacity of less than 7,500, the total

9-11  amount, expressed in terms of money, of consideration paid

9-12  for admission into the facility and for food, refreshments

9-13  and merchandise purchased at the facility.

9-14      2.  If the live entertainment is provided at a facility with

9-15  a maximum seating capacity of at least 7,500, the total

9-16  amount, expressed in terms of money, of consideration paid

9-17  for admission into the facility.

9-18      Sec. 12.  Section 30 of Senate Bill No. 6 of the 20th Special

9-19  Session of the Nevada Legislature is hereby amended to read as

9-20  follows:

9-21      Sec. 30. 1.  “Business entity” includes:

9-22      (a) A corporation, partnership, proprietorship, business

9-23  association and any other person engaging in business.

9-24      (b) A natural person engaging in a business if he is

9-25  deemed to be a business entity pursuant to section 34 of this

9-26  act.

9-27      2.  The term does not include a governmental entity.

9-28      Sec. 13.  Senate Bill No. 6 of the 20th Special Session of the

9-29  Nevada Legislature is hereby amended by adding thereto new

9-30  sections designated sections 30.3 and 30.7, following sec. 30, to

9-31  read as follows:

9-32      Sec. 30.3.  “Facility” means:

9-33      1.  Any area or premises where live entertainment is

9-34  provided and for which consideration is collected for

9-35  admission into that area or those premises if the live

9-36  entertainment is provided at:

9-37      (a) An establishment that is not a licensed gaming

9-38  establishment; or

9-39      (b) A licensed gaming establishment that is licensed for

9-40  less than 51 slot machines, less than six games, or any

9-41  combination of slot machines and games within those

9-42  respective limits.

9-43      2.  Any area or premises where live entertainment is

9-44  provided if the live entertainment is provided at any other

9-45  licensed gaming establishment.

10-1      Sec. 30.7. “Game” has the meaning ascribed to it in

10-2  NRS 463.0152.

10-3      Sec. 14.  Senate Bill No. 6 of the 20th Special Session of the

10-4  Nevada Legislature is hereby amended by adding thereto new

10-5  sections designated sec. 32.3 and 32.7, following section 32, to read

10-6  as follows:

10-7      Sec. 32.3.  “Maximum seating capacity” means, in the

10-8  following order of priority:

10-9      1.  The maximum occupancy of the facility in which

10-10  live entertainment is provided, as determined by the State

10-11  Fire Marshal or the local governmental agency that has the

10-12  authority to determine the maximum occupancy of the

10-13  facility;

10-14     2.  If such a maximum occupancy has not been

10-15  determined, the maximum occupancy of the facility

10-16  designated in any permit required to be obtained in order to

10-17  provide the live entertainment; or

10-18     3.  If such a permit does not designate the maximum

10-19  occupancy of the facility, the actual seating capacity of the

10-20  facility in which the live entertainment is provided.

10-21      Sec. 32.7.  “Slot machine” has the meaning ascribed to

10-22  it in NRS 463.0191.

10-23     Sec. 15.  Section 33 of Senate Bill No. 6 of the 20th Special

10-24  Session of the Nevada Legislature is hereby amended to read as

10-25  follows:

10-26      Sec. 33.  “Taxpayer” means:

10-27     1.  If live entertainment that is taxable under this

10-28  chapter is provided at a licensed gaming establishment, the

10-29  person licensed to conduct gaming at that establishment.

10-30     2.  Except as otherwise provided in subsection 3, if live

10-31  entertainment that is taxable under this chapter is not

10-32  provided at a licensed gaming establishment, the owner or

10-33  operator of the facility where the live entertainment is

10-34  provided.

10-35     3.  If live entertainment that is taxable under this

10-36  chapter is provided at a publicly owned facility or on public

10-37  land, the person who collects the taxable receipts.

10-38     Sec. 16.  Section 34 of Senate Bill No. 6 of the 20th Special

10-39  Session of the Nevada Legislature is hereby amended to read as

10-40  follows:

10-41      Sec. 34.  A natural person engaging in a business shall

10-42  be deemed to be a business entity that is subject to the

10-43  provisions of this chapter if the person is required to file

10-44  with the Internal Revenue Service a Schedule C (Form

10-45  1040), Profit or Loss From Business Form, or its equivalent

11-1  or successor form, or a Schedule E (Form 1040),

11-2  Supplemental Income and Loss Form, or its equivalent or

11-3  successor form, for the business.

11-4      Sec. 17.  Section 36 of Senate Bill No. 6 of the 20th Special

11-5  Session of the Nevada Legislature is hereby amended to read as

11-6  follows:

11-7      Sec. 36.  1.  Except as otherwise provided in this

11-8  section, there is hereby imposed an excise tax on all

11-9  amounts paid for live entertainment at the follow rates:

11-10      (a) If the live entertainment is provided at a facility with

11-11  a maximum seating capacity of less than 7,500, 10 percent

11-12  of the amount paid for live entertainment.

11-13      (b) If the live entertainment is provided at a facility with

11-14  a maximum seating capacity of at least 7,500, 5 percent of

11-15  the amount paid for live entertainment.

11-16     2.  Amounts paid for gratuities directly or indirectly

11-17  remitted to persons employed at a facility where live

11-18  entertainment is provided or for service charges, including

11-19  those imposed in connection with the use of credit cards or

11-20  debit cards, which are collected and retained by persons

11-21  other than the taxpayer are not taxable pursuant to this

11-22  section.

11-23     3.  A business entity that collects any amount that is

11-24  taxable pursuant to subsection 1 is liable for the tax

11-25  imposed, but is entitled to collect reimbursement from any

11-26  person paying that amount.

11-27     4.  Any ticket for live entertainment must state whether

11-28  the tax imposed by this section is included in the price of

11-29  the ticket. If the ticket does not include such a statement, the

11-30  taxpayer shall pay the tax based on the face amount of the

11-31  ticket.

11-32     5.  The tax imposed by subsection 1 does not apply to:

11-33      (a) Live entertainment that this state is prohibited from

11-34  taxing under the Constitution, laws or treaties of the United

11-35  States or the Nevada Constitution.

11-36      (b) Live entertainment that is provided by or entirely for

11-37  the benefit of a nonprofit religious, charitable, fraternal or

11-38  other organization that qualifies as a tax-exempt

11-39  organization pursuant to 26 U.S.C. § 501(c).

11-40      (c) Any boxing contest or exhibition governed by the

11-41  provisions of chapter 467 of NRS.

11-42      (d) Live entertainment that is not provided at a licensed

11-43  gaming establishment if the facility in which the live

11-44  entertainment is provided has a maximum seating capacity

11-45  of less than 300.

12-1      (e) Live entertainment that is provided at a licensed

12-2  gaming establishment that is licensed for less than 51 slot

12-3  machines, less than six games, or any combination of slot

12-4  machines and games within those respective limits, if the

12-5  facility in which the live entertainment is provided has a

12-6  maximum seating capacity of less than 300.

12-7      (f) Merchandise sold outside the facility in which

12-8  the live entertainment is provided, unless the purchase of

12-9  the merchandise entitles the purchaser to admission to the

12-10  entertainment.

12-11      (g) Live entertainment that is provided at a trade show.

12-12      (h) Music performed by musicians who move constantly

12-13  through the audience if no other form of live entertainment

12-14  is afforded to the patrons.

12-15     (i) Live entertainment that is provided at a licensed

12-16  gaming establishment at private meetings or dinners

12-17  attended by members of a particular organization or by a

12-18  casual assemblage if the purpose of the event is not

12-19  primarily for entertainment.

12-20     (j) Live entertainment that is provided in the common

12-21  area of a shopping mall, unless the entertainment is

12-22  provided in a facility located within the mall.

12-23     Sec. 18.  Section 38 of Senate Bill No. 6 of the 20th Special

12-24  Session of the Nevada Legislature is hereby amended to read as

12-25  follows:

12-26      Sec. 38.  1.  The Board shall:

12-27      (a) Collect the tax imposed by this chapter from

12-28  taxpayers who are licensed gaming establishments; and

12-29      (b) Adopt such regulations as are necessary to carry out

12-30  the provisions of paragraph (a). The regulations must be

12-31  adopted in accordance with the provisions of chapter 233B

12-32  of NRS and must be codified in the Nevada Administrative

12-33  Code.

12-34     2.  The Department shall:

12-35      (a) Collect the tax imposed by this chapter from all other

12-36  taxpayers; and

12-37      (b) Adopt such regulations as are necessary to carry out

12-38  the provisions of paragraph (a).

12-39     3.  For the purposes of:

12-40      (a) Subsection 1, the provisions of chapter 463 of NRS

12-41  relating to the payment, collection, administration and

12-42  enforcement of gaming license fees and taxes, including,

12-43  without limitation, any provisions relating to the imposition

12-44  of penalties and interest, shall be deemed to apply to the

12-45  payment, collection, administration and enforcement of the

13-1  taxes imposed by this chapter to the extent that those

13-2  provisions do not conflict with the provisions of this chapter.

13-3      (b) Subsection 2, the provisions of chapter 360 of NRS

13-4  relating to the payment, collection, administration and

13-5  enforcement of taxes, including, without limitation, any

13-6  provisions relating to the imposition of penalties and

13-7  interest, shall be deemed to apply to the payment, collection,

13-8  administration and enforcement of the taxes imposed by this

13-9  chapter to the extent that those provisions do not conflict

13-10  with the provisions of this chapter.

13-11     4.  To ensure that the tax imposed by section 36 of this

13-12  act is collected fairly and equitably, the Board and the

13-13  Department shall:

13-14      (a) Jointly, coordinate the administration and collection

13-15  of that tax and the regulation of taxpayers who are liable

13-16  for the payment of the tax.

13-17      (b) Upon request, assist the other agency in the

13-18  collection of that tax.

13-19     Sec. 19.  Section 39 of Senate Bill No. 6 of the 20th Special

13-20  Session of the Nevada Legislature is hereby amended to read as

13-21  follows:

13-22      Sec. 39. 1.  Except as otherwise provided in this

13-23  section:

13-24      (a) Each taxpayer who is a licensed gaming

13-25  establishment shall file with the Board, on or before the

13-26  24th day of each month, a report showing the amount of all

13-27  taxable receipts for the preceding month. The report must

13-28  be in a form prescribed by the Board.

13-29      (b) All other taxpayers shall file with the Department, on

13-30  or before the last day of each month, a report showing the

13-31  amount of all taxable receipts for the preceding month. The

13-32  report must be in a form prescribed by the Department.

13-33     2.  The Board or the Department, if it deems it

13-34  necessary to ensure payment to or facilitate the collection by

13-35  the State of the tax imposed by section 36 of this act, may

13-36  require reports to be filed not later than 10 days after the

13-37  end of each calendar quarter.

13-38     3.  Each report required to be filed by this section must

13-39  be accompanied by the amount of the tax that is due for the

13-40  period covered by the report.

13-41     4.  The Board and the Department shall deposit all

13-42  taxes, interest and penalties it receives pursuant to this

13-43  chapter in the State Treasury for credit to the State General

13-44  Fund.

14-1      Sec. 20.  Section 41 of Senate Bill No. 6 of the 20th Special

14-2  Session of the Nevada Legislature is hereby amended to read as

14-3  follows:

14-4      Sec. 41.  1.  Each person responsible for maintaining

14-5  the records of a taxpayer shall:

14-6      (a) Keep such records as may be necessary to determine

14-7  the amount of the liability of the taxpayer pursuant to the

14-8  provisions of this chapter;

14-9      (b) Preserve those records for:

14-10         (1) At least 5 years if the taxpayer is a licensed

14-11  gaming establishment or until any litigation or prosecution

14-12  pursuant to this chapter is finally determined, whichever is

14-13  longer; or

14-14         (2) At least 4 years if the taxpayer is not a licensed

14-15  gaming establishment or until any litigation or prosecution

14-16  pursuant to this chapter is finally determined, whichever is

14-17  longer; and

14-18      (c) Make the records available for inspection by the

14-19  Board or the Department upon demand at reasonable times

14-20  during regular business hours.

14-21     2.  The Board and the Department may by regulation

14-22  specify the types of records which must be kept to determine

14-23  the amount of the liability of a taxpayer from whom they are

14-24  required to collect the tax imposed by this chapter.

14-25     3.  Any agreement that is entered into, modified or

14-26  extended after January 1, 2004, for the lease, assignment or

14-27  transfer of any premises upon which any activity subject to

14-28  the tax imposed by this chapter is, or thereafter may be,

14-29  conducted shall be deemed to include a provision that the

14-30  taxpayer required to pay the tax must be allowed access to,

14-31  upon demand, all books, records and financial papers held

14-32  by the lessee, assignee or transferee which must be kept

14-33  pursuant to this section. Any person conducting activities

14-34  subject to the tax imposed by section 36 of this act who fails

14-35  to maintain or disclose his records pursuant to this

14-36  subsection is liable to the taxpayer for any penalty paid by

14-37  the taxpayer for the late payment or nonpayment of the tax

14-38  caused by the failure to maintain or disclose records.

14-39     4.  A person who violates any provision of this section is

14-40  guilty of a misdemeanor.

14-41     Sec. 21.  Section 44 of Senate Bill No. 6 of the 20th Special

14-42  Session of the Nevada Legislature is hereby amended to read as

14-43  follows:

14-44      Sec. 44.  1.  If:

15-1      (a) The Board determines that a taxpayer who is a

15-2  licensed gaming establishment is taking any action with

15-3  intent to defraud the State or to evade the payment of the tax

15-4  or any part of the tax imposed by this chapter, the Board

15-5  shall establish an amount paid for live entertainment upon

15-6  which the tax imposed by this chapter must be based.

15-7      (b) The Department determines that a taxpayer who is

15-8  not a licensed gaming establishment is taking any action

15-9  with intent to defraud the State or to evade the payment of

15-10  the tax or any part of the tax imposed by this chapter, the

15-11  Department shall establish an amount paid for live

15-12  entertainment upon which the tax imposed by this chapter

15-13  must be based.

15-14     2.   The amount established by the Board or the

15-15  Department pursuant to subsection 1 must be based upon

15-16  the tax liability of business entities that are deemed

15-17  comparable by the Board or the Department to that of the

15-18  taxpayer.

15-19     Sec. 22.  Section 48 of Senate Bill No. 6 of the 20th Special

15-20  Session of the Nevada Legislature is hereby amended to read as

15-21  follows:

15-22      Sec. 48. 1.  Except as otherwise provided in NRS

15-23  360.235 and 360.395:

15-24      (a) No refund may be allowed unless a claim for it is

15-25  filed with:

15-26         (1) The Board, if the taxpayer is a licensed gaming

15-27  establishment; or

15-28         (2) The Department, if the taxpayer is not a licensed

15-29  gaming establishment.

15-30  A claim must be filed within 3 years after the last day of the

15-31  month following the reporting period for which the

15-32  overpayment was made.

15-33      (b) No credit may be allowed after the expiration of the

15-34  period specified for filing claims for refund unless a claim

15-35  for credit is filed with the Board or the Department within

15-36  that period.

15-37     2.  Each claim must be in writing and must state the

15-38  specific grounds upon which the claim is founded.

15-39     3.  Failure to file a claim within the time prescribed in

15-40  this chapter constitutes a waiver of any demand against the

15-41  State on account of overpayment.

15-42     4.  Within 30 days after rejecting any claim in whole or

15-43  in part, the Board or the Department shall serve notice of its

15-44  action on the claimant in the manner prescribed for service

15-45  of notice of a deficiency determination.

16-1      Sec. 23.  Section 49 of Senate Bill No. 6 of the 20th Special

16-2  Session of the Nevada Legislature is hereby amended to read as

16-3  follows:

16-4      Sec. 49.  1.  Except as otherwise provided in this

16-5  section and NRS 360.320, interest must be paid upon any

16-6  overpayment of any amount of the tax imposed by this

16-7  chapter in accordance with the provisions of section 38 of

16-8  this act.

16-9      2.  If the overpayment is paid to the Department, the

16-10  interest must be paid:

16-11      (a) In the case of a refund, to the last day of the

16-12  calendar month following the date upon which the person

16-13  making the overpayment, if he has not already filed a claim,

16-14  is notified by the Department that a claim may be filed or

16-15  the date upon which the claim is certified to the State Board

16-16  of Examiners, whichever is earlier.

16-17      (b) In the case of a credit, to the same date as that to

16-18  which interest is computed on the tax or amount against

16-19  which the credit is applied.

16-20     3.  If the Board or the Department determines that any

16-21  overpayment has been made intentionally or by reason of

16-22  carelessness, the Board or the Department shall not allow

16-23  any interest on the overpayment.

16-24     Sec. 24.  Section 60 of Senate Bill No. 6 of the 20th Special

16-25  Session of the Nevada Legislature is hereby amended to read as

16-26  follows:

16-27      Sec. 60.  (Deleted by amendment.)

16-28     Sec. 25.  Section 62 of Senate Bill No. 6 of the 20th Special

16-29  Session of the Nevada Legislature is hereby amended to read as

16-30  follows:

16-31      Sec. 62.  1.  “Business” includes:

16-32      (a) A corporation, partnership, proprietorship, limited-

16-33  liability company, business association, joint venture,

16-34  limited-liability partnership, business trust and their

16-35  equivalents organized under the laws of this state or another

16-36  jurisdiction and any other person that conducts an activity

16-37  for profit; and

16-38      (b) The activities of a natural person which are deemed

16-39  to be a business pursuant to section 65 of this act.

16-40     2.  The term does not include:

16-41      (a) A governmental entity.

16-42      (b) A nonprofit religious, charitable, fraternal or other

16-43  organization that qualifies as a tax-exempt organization

16-44  pursuant to 26 U.S.C. § 501(c).

17-1      (c) A person who operates a business from his home and

17-2  earns from that business not more than 66 2/3 percent of

17-3  the average annual wage, as computed for the preceding

17-4  calendar year pursuant to chapter 612 of NRS and rounded

17-5  to the nearest hundred dollars.

17-6      (d) A business whose primary purpose is to create or

17-7  produce motion pictures. As used in this paragraph,

17-8  “motion pictures” has the meaning ascribed to it in

17-9  NRS 231.020.

17-10     Sec. 26.  Section 63 of Senate Bill No. 6 of the 20th Special

17-11  Session of the Nevada Legislature is hereby amended to read as

17-12  follows:

17-13      Sec. 63.  1.  “Employee” includes:

17-14      (a) A natural person who receives wages or other

17-15  remuneration from a business for personal services,

17-16  including commissions and bonuses and remuneration

17-17  payable in a medium other than cash; and

17-18      (b) A natural person engaged in the operation of a

17-19  business.

17-20     2.  The term includes:

17-21      (a) A partner or other co-owner of a business; and

17-22      (b) Except as otherwise provided in subsection 3, a

17-23  natural person reported as an employee to the:

17-24         (1) Employment Security Division of the Department

17-25  of Employment, Training and Rehabilitation;

17-26         (2) Administrator of the Division of Industrial

17-27  Relations of the Department of Business and Industry; or

17-28         (3) Internal Revenue Service on an Employer’s

17-29  Quarterly Federal Tax Return (Form 941), Employer’s

17-30  Monthly Federal Tax Return (Form 941-M),

17-31  Employer’s Annual Tax Return for Agricultural Employees

17-32  (Form 943) or any equivalent or successor form.

17-33     3.  The term does not include:

17-34      (a) A business or an independent contractor that

17-35  performs services on behalf of another business.

17-36      (b) A natural person who is retired or otherwise

17-37  receiving remuneration solely because of past service to the

17-38  business.

17-39      (c) A newspaper carrier or the immediate supervisor of a

17-40  newspaper carrier who is an independent contractor of the

17-41  newspaper.

17-42      (d) A natural person who performs all of his duties for

17-43  the business outside of this state.

17-44     4.  An independent contractor is not an employee of a

17-45  business with which he contracts.

18-1      Sec. 27.  Senate Bill No. 6 of the 20th Special Session of the

18-2  Nevada Legislature is hereby amended by adding thereto a new

18-3  section designated sec. 64.5, following sec. 64, to read as follows:

18-4      Sec. 64.5.  The Department shall deposit all money it

18-5  receives pursuant to sections 61 to 66, inclusive, of this act

18-6  in the State Treasury for credit to the State General Fund.

18-7      Sec. 28.  Section 65 of Senate Bill No. 6 of the 20th Special

18-8  Session of the Nevada Legislature is hereby amended to read as

18-9  follows:

18-10      Sec. 65.  The activity or activities conducted by a

18-11  natural person shall be deemed to be a business that is

18-12  subject to the provisions of sections 61 to 66, inclusive, of

18-13  this act if the person is required to file with the Internal

18-14  Revenue Service a Schedule C (Form 1040), Profit or Loss

18-15  From Business Form, or its equivalent or successor form, a

18-16  Schedule E (Form 1040), Supplemental Income and Loss

18-17  Form, or its equivalent or successor form, or a Schedule F

18-18  (Form 1040), Profit or Loss From Farming Form, or its

18-19  equivalent or successor form, for the business.

18-20     Sec. 28.5.  Section 66 of Senate Bill No. 6 of the 20th Special

18-21  Session of the Nevada Legislature is hereby amended to read as

18-22  follows:

18-23      Sec. 66.  1.  Except as otherwise provided in

18-24  subsection 8, a person shall not conduct a business in this

18-25  state unless he has a business license issued by the

18-26  Department.

18-27     2.  An application for a business license must:

18-28      (a) Be made upon a form prescribed by the Department;

18-29      (b) Set forth the name under which the applicant

18-30  transacts or intends to transact business and the location of

18-31  his place or places of business;

18-32      (c) Declare the estimated number of employees for the

18-33  previous calendar quarter;

18-34      (d) Be accompanied by a fee of $125; and

18-35      (e) Include any other information that the Department

18-36  deems necessary.

18-37     3.  The application must be signed by:

18-38      (a) The owner, if the business is owned by a natural

18-39  person;

18-40      (b) A member or partner, if the business is owned by an

18-41  association or partnership; or

18-42      (c) An officer or some other person specifically

18-43  authorized to sign the application, if the business is owned

18-44  by a corporation.

19-1      4.  If the application is signed pursuant to paragraph

19-2  (c) of subsection 3, written evidence of the signer’s authority

19-3  must be attached to the application.

19-4      5.  A person who has been issued a business license by

19-5  the Department shall submit a fee of $125 to the

19-6  Department on or before the last day of the month in which

19-7  the anniversary date of issuance of the business license

19-8  occurs in each year, unless the person submits a written

19-9  statement to the Department, at least 10 days before the

19-10  anniversary date, indicating that the person will not be

19-11  conducting business in this state after the anniversary date.

19-12     6.  The business license required to be obtained

19-13  pursuant to this section is in addition to any license to

19-14  conduct business that must be obtained from the local

19-15  jurisdiction in which the business is being conducted.

19-16     7.  For the purposes of sections 61 to 66, inclusive, of

19-17  this act, a person shall be deemed to conduct a business in

19-18  this state if a business for which the person is responsible:

19-19      (a) Is organized pursuant to title 7 of NRS, other than a

19-20  business organized pursuant to chapter 82 or 84 of NRS;

19-21      (b) Has an office or other base of operations in this

19-22  state; or

19-23      (c) Pays wages or other remuneration to a natural

19-24  person who performs in this state any of the duties for

19-25  which he is paid.

19-26     8.  A person who takes part in a trade show or

19-27  convention held in this state for a purpose related to the

19-28  conduct of a business is not required to obtain a business

19-29  license specifically for that event.

19-30     Sec. 29.  Section 67 of Senate Bill No. 6 of the 20th Special

19-31  Session of the Nevada Legislature is hereby amended to read as

19-32  follows:

19-33      Sec. 67.  (Deleted by amendment.)

19-34     Sec. 30.  Section 70 of Senate Bill No. 6 of the 20th Special

19-35  Session of the Nevada Legislature is hereby amended to read as

19-36  follows:

19-37      Sec. 70.  NRS 360.300 is hereby amended to read as

19-38  follows:

19-39      360.300  1.  If a person fails to file a return or the

19-40  Department is not satisfied with the return or returns of any

19-41  tax, contribution or premium or amount of tax, contribution

19-42  or premium required to be paid to the State by any person, in

19-43  accordance with the applicable provisions of this chapter,

19-44  chapter 362, 364A, 369, 370, 372, 372A, 374, 377, 377A or

19-45  444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS

20-1  , or sections 24.12 to 24.74, inclusive, of this act, as

20-2  administered or audited by the Department, it may compute

20-3  and determine the amount required to be paid upon the basis

20-4  of:

20-5      (a) The facts contained in the return;

20-6      (b) Any information within its possession or that may

20-7  come into its possession; or

20-8      (c) Reasonable estimates of the amount.

20-9      2.  One or more deficiency determinations may be made

20-10  with respect to the amount due for one or for more than one

20-11  period.

20-12     3.  In making its determination of the amount required to

20-13  be paid, the Department shall impose interest on the amount

20-14  of tax determined to be due, calculated at the rate and in the

20-15  manner set forth in NRS 360.417, unless a different rate of

20-16  interest is specifically provided by statute.

20-17     4.  The Department shall impose a penalty of 10 percent

20-18  in addition to the amount of a determination that is made in

20-19  the case of the failure of a person to file a return with the

20-20  Department.

20-21     5.  When a business is discontinued, a determination may

20-22  be made at any time thereafter within the time prescribed in

20-23  NRS 360.355 as to liability arising out of that business,

20-24  irrespective of whether the determination is issued before the

20-25  due date of the liability.

20-26     Sec. 31.  Senate Bill No. 6 of the 20th Special Session of the

20-27  Nevada Legislature is hereby amended by adding thereto a new

20-28  section to be designated as section 70.5, following section 70, to

20-29  read as follows:

20-30      Sec. 70.5.  NRS 360.300 is hereby amended to read as

20-31  follows:

20-32      360.300  1.  If a person fails to file a return or the

20-33  Department is not satisfied with the return or returns of any

20-34  tax, contribution or premium or amount of tax, contribution

20-35  or premium required to be paid to the State by any person, in

20-36  accordance with the applicable provisions of this chapter,

20-37  chapter 362, [364A,] 369, 370, 372, 372A, 374, 377, 377A or

20-38  444A of NRS, NRS 482.313, or chapter 585 or 680B of NRS,

20-39  or sections 2 to 24, inclusive, or 24.12 to 24.74, inclusive, of

20-40  this act, as administered or audited by the Department, it may

20-41  compute and determine the amount required to be paid upon

20-42  the basis of:

20-43      (a) The facts contained in the return;

 

 

21-1      (b) Any information within its possession or that may

21-2  come into its possession; or

21-3      (c) Reasonable estimates of the amount.

21-4      2.  One or more deficiency determinations may be made

21-5  with respect to the amount due for one or for more than one

21-6  period.

21-7      3.  In making its determination of the amount required to

21-8  be paid, the Department shall impose interest on the amount

21-9  of tax determined to be due, calculated at the rate and in the

21-10  manner set forth in NRS 360.417, unless a different rate of

21-11  interest is specifically provided by statute.

21-12     4.  The Department shall impose a penalty of 10 percent

21-13  in addition to the amount of a determination that is made in

21-14  the case of the failure of a person to file a return with the

21-15  Department.

21-16     5.  When a business is discontinued, a determination may

21-17  be made at any time thereafter within the time prescribed in

21-18  NRS 360.355 as to liability arising out of that business,

21-19  irrespective of whether the determination is issued before the

21-20  due date of the liability.

21-21     Sec. 32.  Section 71 of Senate Bill No. 6 of the 20th Special

21-22  Session of the Nevada Legislature is hereby amended to read as

21-23  follows:

21-24      Sec. 71.  NRS 360.417 is hereby amended to read as

21-25  follows:

21-26      360.417  Except as otherwise provided in NRS 360.232

21-27  and 360.320, and unless a different penalty or rate of interest

21-28  is specifically provided by statute, any person who fails to

21-29  pay any tax provided for in chapter 362, 364A, 369, 370, 372,

21-30  374, 377, 377A, 444A or 585 of NRS, or sections 24.12 to

21-31  24.74, inclusive, of this act, or the fee provided for in NRS

21-32  482.313, to the State or a county within the time required,

21-33  shall pay a penalty of not more than 10 percent of the amount

21-34  of the tax or fee which is owed, as determined by the

21-35  Department, in addition to the tax or fee, plus interest at

21-36  the rate of 1 percent per month, or fraction of a month, from

21-37  the last day of the month following the period for which the

21-38  amount or any portion of the amount should have been

21-39  reported until the date of payment. The amount of any penalty

21-40  imposed must be based on a graduated schedule adopted by

21-41  the Nevada Tax Commission which takes into consideration

21-42  the length of time the tax or fee remained unpaid.

 

 

22-1      Sec. 33.  Senate Bill No. 6 of the 20th Special Session of the

22-2  Nevada Legislature is hereby amended by adding thereto a new

22-3  section to be designated as section 71.5, following section 71, to

22-4  read as follows:

22-5      Sec. 71.5.  NRS 360.417 is hereby amended to read as

22-6  follows:

22-7      360.417  Except as otherwise provided in NRS 360.232

22-8  and 360.320, and unless a different penalty or rate of interest

22-9  is specifically provided by statute, any person who fails to

22-10  pay any tax provided for in chapter 362, [364A,] 369, 370,

22-11  372, 374, 377, 377A, 444A or 585 of NRS, or sections 2 to

22-12  24, inclusive, or 24.12 to 24.74, inclusive, of this act, or the

22-13  fee provided for in NRS 482.313, to the State or a county

22-14  within the time required, shall pay a penalty of not more than

22-15  10 percent of the amount of the tax or fee which is owed, as

22-16  determined by the Department, in addition to the tax or fee,

22-17  plus interest at the rate of 1 percent per month, or fraction of a

22-18  month, from the last day of the month following the period

22-19  for which the amount or any portion of the amount should

22-20  have been reported until the date of payment. The amount of

22-21  any penalty imposed must be based on a graduated schedule

22-22  adopted by the Nevada Tax Commission which takes into

22-23  consideration the length of time the tax or fee remained

22-24  unpaid.

22-25     Sec. 34.  Section 72 of Senate Bill No. 6 of the 20th Special

22-26  Session of the Nevada Legislature is hereby amended to read as

22-27  follows:

22-28      Sec. 72.  NRS 360.419 is hereby amended to read as

22-29  follows:

22-30      360.419  1.  If the Executive Director or a designated

22-31  hearing officer finds that the failure of a person to make a

22-32  timely return or payment of a tax imposed pursuant to NRS

22-33  361.320 or [chapter 361A, 376A, 377 or 377A of NRS, or by]

22-34  chapter 361A, 362, 364A, 369, 370, 372, 372A, 374, 375A ,

22-35  [or] 375B , 376A, 377 or 377A of NRS, or sections 24.12 to

22-36  24.74, inclusive, of this act, is the result of circumstances

22-37  beyond his control and occurred despite the exercise of

22-38  ordinary care and without intent, the Department may relieve

22-39  him of all or part of any interest or penalty , or both.

22-40     2.  A person seeking this relief must file with the

22-41  Department a statement under oath setting forth the facts

22-42  upon which he bases his claim.

22-43     3.  The Department shall disclose, upon the request of

22-44  any person:

23-1      (a) The name of the person to whom relief was granted;

23-2  and

23-3      (b) The amount of the relief.

23-4      4.  The Executive Director or a designated hearing

23-5  officer shall act upon the request of a taxpayer seeking relief

23-6  pursuant to NRS 361.4835 which is deferred by a county

23-7  treasurer or county assessor.

23-8      Sec. 35.  Senate Bill No. 6 of the 20th Special Session of the

23-9  Nevada Legislature is hereby amended by adding thereto a new

23-10  section to be designated as section 72.5, following section 72, to

23-11  read as follows:

23-12      Sec. 72.5.  NRS 360.419 is hereby amended to read as

23-13  follows:

23-14      360.419  1.  If the Executive Director or a designated

23-15  hearing officer finds that the failure of a person to make a

23-16  timely return or payment of a tax imposed pursuant to NRS

23-17  361.320 or chapter 361A, 362, [364A,] 369, 370, 372, 372A,

23-18  374, 375A, 375B, 376A, 377 or 377A of NRS, or sections 2

23-19  to 24, inclusive, or 24.12 to 24.74, inclusive, of this act, is the

23-20  result of circumstances beyond his control and occurred

23-21  despite the exercise of ordinary care and without intent, the

23-22  Department may relieve him of all or part of any interest or

23-23  penalty, or both.

23-24     2.  A person seeking this relief must file with the

23-25  Department a statement under oath setting forth the facts

23-26  upon which he bases his claim.

23-27     3.  The Department shall disclose, upon the request of

23-28  any person:

23-29      (a) The name of the person to whom relief was granted;

23-30  and

23-31      (b) The amount of the relief.

23-32     4.  The Executive Director or a designated hearing

23-33  officer shall act upon the request of a taxpayer seeking relief

23-34  pursuant to NRS 361.4835 which is deferred by a county

23-35  treasurer or county assessor.

23-36     Sec. 36.  Section 73 of Senate Bill No. 6 of the 20th Special

23-37  Session of the Nevada Legislature is hereby amended to read as

23-38  follows:

23-39      Sec. 73.  NRS 360.510 is hereby amended to read as

23-40  follows:

23-41      360.510  1.  If any person is delinquent in the payment

23-42  of any tax or fee administered by the Department or if a

23-43  determination has been made against him which remains

23-44  unpaid, the Department may:

24-1      (a) Not later than 3 years after the payment became

24-2  delinquent or the determination became final; or

24-3      (b) Not later than 6 years after the last recording of an

24-4  abstract of judgment or of a certificate constituting a lien for

24-5  tax owed,

24-6  give a notice of the delinquency and a demand to transmit

24-7  personally or by registered or certified mail to any person,

24-8  including, without limitation, any officer or department of

24-9  this state or any political subdivision or agency of this state,

24-10  who has in his possession or under his control any credits or

24-11  other personal property belonging to the delinquent, or owing

24-12  any debts to the delinquent or person against whom a

24-13  determination has been made which remains unpaid, or owing

24-14  any debts to the delinquent or that person. In the case of any

24-15  state officer, department or agency, the notice must be given

24-16  to the officer, department or agency before the Department

24-17  presents the claim of the delinquent taxpayer to the State

24-18  Controller.

24-19     2.  A state officer, department or agency which receives

24-20  such a notice may satisfy any debt owed to it by that person

24-21  before it honors the notice of the Department.

24-22     3.  After receiving the demand to transmit, the person

24-23  notified by the demand may not transfer or otherwise dispose

24-24  of the credits, other personal property, or debts in his

24-25  possession or under his control at the time he received the

24-26  notice until the Department consents to a transfer or other

24-27  disposition.

24-28     4.  Every person notified by a demand to transmit shall,

24-29  within 10 days after receipt of the demand to transmit, inform

24-30  the Department of[,] and transmit to the Department all such

24-31  credits, other personal property[,] or debts in his possession,

24-32  under his control or owing by him within the time and in the

24-33  manner requested by the Department. Except as otherwise

24-34  provided in subsection 5, no further notice is required to be

24-35  served to that person.

24-36     5.  If the property of the delinquent taxpayer consists of a

24-37  series of payments owed to him, the person who owes or

24-38  controls the payments shall transmit the payments to the

24-39  Department until otherwise notified by the Department. If the

24-40  debt of the delinquent taxpayer is not paid within 1 year after

24-41  the Department issued the original demand to transmit, the

24-42  Department shall issue another demand to transmit to the

24-43  person responsible for making the payments informing him to

24-44  continue to transmit payments to the Department or that his

24-45  duty to transmit the payments to the Department has ceased.

25-1      6.  If the notice of the delinquency seeks to prevent the

25-2  transfer or other disposition of a deposit in a bank or credit

25-3  union or other credits or personal property in the possession

25-4  or under the control of a bank, credit union or other

25-5  depository institution, the notice must be delivered or mailed

25-6  to any branch or office of the bank, credit union or other

25-7  depository institution at which the deposit is carried or at

25-8  which the credits or personal property is held.

25-9      7.  If any person notified by the notice of the delinquency

25-10  makes any transfer or other disposition of the property or

25-11  debts required to be withheld or transmitted, to the extent of

25-12  the value of the property or the amount of the debts thus

25-13  transferred or paid, he is liable to the State for any

25-14  indebtedness due pursuant to this chapter, or chapter 362,

25-15  364A, 369, 370, 372, 372A, 374, 377, 377A or 444A of NRS,

25-16  NRS 482.313, or chapter 585 or 680B of NRS , or sections

25-17  24.12 to 24.74, inclusive, of this act from the person with

25-18  respect to whose obligation the notice was given if solely by

25-19  reason of the transfer or other disposition the State is unable

25-20  to recover the indebtedness of the person with respect to

25-21  whose obligation the notice was given.

25-22     Sec. 37.  Senate Bill No. 6 of the 20th Special Session of the

25-23  Nevada Legislature is hereby amended by adding thereto a new

25-24  section to be designated as section 73.5, following section 73, to

25-25  read as follows:

25-26      Sec. 73.5.  NRS 360.510 is hereby amended to read as

25-27  follows:

25-28      360.510  1.  If any person is delinquent in the payment

25-29  of any tax or fee administered by the Department or if a

25-30  determination has been made against him which remains

25-31  unpaid, the Department may:

25-32      (a) Not later than 3 years after the payment became

25-33  delinquent or the determination became final; or

25-34      (b) Not later than 6 years after the last recording of an

25-35  abstract of judgment or of a certificate constituting a lien for

25-36  tax owed,

25-37  give a notice of the delinquency and a demand to transmit

25-38  personally or by registered or certified mail to any person,

25-39  including, without limitation, any officer or department of

25-40  this state or any political subdivision or agency of this state,

25-41  who has in his possession or under his control any credits or

25-42  other personal property belonging to the delinquent, or owing

25-43  any debts to the delinquent or person against whom a

25-44  determination has been made which remains unpaid, or owing

25-45  any debts to the delinquent or that person. In the case of any

26-1  state officer, department or agency, the notice must be given

26-2  to the officer, department or agency before the Department

26-3  presents the claim of the delinquent taxpayer to the State

26-4  Controller.

26-5      2.  A state officer, department or agency which receives

26-6  such a notice may satisfy any debt owed to it by that person

26-7  before it honors the notice of the Department.

26-8      3.  After receiving the demand to transmit, the person

26-9  notified by the demand may not transfer or otherwise dispose

26-10  of the credits, other personal property, or debts in his

26-11  possession or under his control at the time he received the

26-12  notice until the Department consents to a transfer or other

26-13  disposition.

26-14     4.  Every person notified by a demand to transmit shall,

26-15  within 10 days after receipt of the demand to transmit, inform

26-16  the Department ofand transmit to the Department all such

26-17  credits, other personal property or debts in his possession,

26-18  under his control or owing by him within the time and in the

26-19  manner requested by the Department. Except as otherwise

26-20  provided in subsection 5, no further notice is required to be

26-21  served to that person.

26-22     5.  If the property of the delinquent taxpayer consists of a

26-23  series of payments owed to him, the person who owes or

26-24  controls the payments shall transmit the payments to the

26-25  Department until otherwise notified by the Department. If the

26-26  debt of the delinquent taxpayer is not paid within 1 year after

26-27  the Department issued the original demand to transmit, the

26-28  Department shall issue another demand to transmit to the

26-29  person responsible for making the payments informing him to

26-30  continue to transmit payments to the Department or that his

26-31  duty to transmit the payments to the Department has ceased.

26-32     6.  If the notice of the delinquency seeks to prevent the

26-33  transfer or other disposition of a deposit in a bank or credit

26-34  union or other credits or personal property in the possession

26-35  or under the control of a bank, credit union or other

26-36  depository institution, the notice must be delivered or mailed

26-37  to any branch or office of the bank, credit union or other

26-38  depository institution at which the deposit is carried or at

26-39  which the credits or personal property is held.

26-40     7.  If any person notified by the notice of the delinquency

26-41  makes any transfer or other disposition of the property or

26-42  debts required to be withheld or transmitted, to the extent of

26-43  the value of the property or the amount of the debts thus

26-44  transferred or paid, he is liable to the State for any

26-45  indebtedness due pursuant to this chapter, or chapter 362,

27-1  [364A,] 369, 370, 372, 372A, 374, 377, 377A or 444A of

27-2  NRS, NRS 482.313, or chapter 585 or 680B of NRS, or

27-3  sections 2 to 24, inclusive, or 24.12 to 24.74, inclusive, of

27-4  this act from the person with respect to whose obligation the

27-5  notice was given if solely by reason of the transfer or other

27-6  disposition the State is unable to recover the indebtedness of

27-7  the person with respect to whose obligation the notice was

27-8  given.

27-9      Sec. 38.  Section 75 of Senate Bill No. 6 of the 20th Special

27-10  Session of the Nevada Legislature is hereby amended to read as

27-11  follows:

27-12      Sec. 75.  (Deleted by amendment.)

27-13     Sec. 39.  Section 75.3 of Senate Bill No. 6 of the 20th Special

27-14  Session of the Nevada Legislature is hereby amended to read as

27-15  follows:

27-16      Sec. 75.3.  NRS 364A.020 is hereby amended to read as

27-17  follows:

27-18      364A.020  1.  “Business” includes:

27-19      (a) A corporation, partnership, proprietorship, limited-

27-20  liability company, business association , joint venture,

27-21  limited-liability partnership, business trust and their

27-22  equivalents organized under the laws of this state or another

27-23  jurisdiction and any other [similar] organization that

27-24  conducts an activity for profit;

27-25      (b) The activities of a natural person which are deemed to

27-26  be a business pursuant to NRS 364A.120; and

27-27      (c) A trade show or convention held in this state in which

27-28  a business described in paragraph (a) or (b) takes part, or

27-29  which a person who conducts such a business attends, for a

27-30  purpose related to the conduct of the business.

27-31     2.  [The term includes an independent contractor.

27-32     3. ] The term does not include:

27-33      (a) A nonprofit religious, charitable, fraternal or other

27-34  organization that qualifies as a tax-exempt organization

27-35  pursuant to 26 U.S.C. § 501(c);

27-36      (b) A governmental entity; [or]

27-37      (c) A person who operates a business from his home and

27-38  earns from that business not more than 66 2/3 percent of

27-39  the average annual wage, as computed for the preceding

27-40  calendar year pursuant to chapter 612 of NRS and rounded

27-41  to the nearest hundred dollars; or

27-42      (d) A business that creates or produces motion pictures.

27-43  As used in this paragraph, “motion pictures” has the meaning

27-44  ascribed to it in NRS 231.020.

28-1      Sec. 40.  Section 75.7 of Senate Bill No. 6 of the 20th Special

28-2  Session of the Nevada Legislature is hereby amended to read as

28-3  follows:

28-4      Sec. 75.7.  NRS 364A.120 is hereby amended to read as

28-5  follows:

28-6      364A.120  The activity or activities conducted by a

28-7  natural person shall be deemed to be a business that is subject

28-8  to the provisions of this chapter if the person files with the

28-9  Internal Revenue Service a Schedule C (Form 1040), Profit or

28-10  Loss from Business Form, or its equivalent or successor form,

28-11  a Schedule E (Form 1040), Supplemental Income and Loss

28-12  Form, or its equivalent or successor form, or a Schedule F

28-13  (Form 1040), Farm Income and Expenses Form, or its

28-14  equivalent or successor form, for the activity or activities.

28-15     Sec. 40.5.  Section 76 of Senate Bill No. 6 of the 20th Special

28-16  Session of the Nevada Legislature is hereby amended to read as

28-17  follows:

28-18      Sec. 76.  NRS 364A.130 is hereby amended to read as

28-19  follows:

28-20      364A.130  1.  Except as otherwise provided in

28-21  subsection [6,] 8, a person shall not conduct a business in this

28-22  state unless he has a business license issued by the

28-23  Department.

28-24     2.  [The] An application for a business license must:

28-25      (a) Be made upon a form prescribed by the Department;

28-26      (b) Set forth the name under which the applicant transacts

28-27  or intends to transact business and the location of his place or

28-28  places of business;

28-29      (c) Declare the estimated number of employees for the

28-30  previous calendar quarter;

28-31      (d) Be accompanied by a fee of [$25;] $125; and

28-32      (e) Include any other information that the Department

28-33  deems necessary.

28-34     3.  The application must be signed by:

28-35      (a) The owner, if the business is owned by a natural

28-36  person;

28-37      (b) A member or partner, if the business is owned by an

28-38  association or partnership; or

28-39      (c) An officer or some other person specifically

28-40  authorized to sign the application, if the business is owned by

28-41  a corporation.

28-42     4.  If the application is signed pursuant to paragraph (c)

28-43  of subsection 3, written evidence of the signer’s authority

28-44  must be attached to the application.

29-1      5.  A person who has been issued a business license by

29-2  the Department shall submit a fee of $125 to the

29-3  Department on or before the last day of the month in which

29-4  the anniversary date of issuance of the business license

29-5  occurs in each year, unless the person submits a written

29-6  statement to the Department, at least 10 days before the

29-7  anniversary date, indicating that the person will not be

29-8  conducting business in this state after the anniversary date.

29-9      6.  The business license required to be obtained

29-10  pursuant to this section is in addition to any license to

29-11  conduct business that must be obtained from the local

29-12  jurisdiction in which the business is being conducted.

29-13     7.  For the purposes of this chapter, a person shall be

29-14  deemed to conduct a business in this state if a business for

29-15  which the person is responsible:

29-16      (a) Is [incorporated] organized pursuant to [chapter 78 or

29-17  78A] title 7 of NRS[;] , other than a business organized

29-18  pursuant to chapter 82 or 84 of NRS;

29-19      (b) Has an office or other base of operations in this state;

29-20  or

29-21      (c) Pays wages or other remuneration to a natural person

29-22  who performs in this state any of the duties for which he is

29-23  paid.

29-24      [6.] 8. A person who takes part in a trade show or

29-25  convention held in this state for a purpose related to the

29-26  conduct of a business is not required to obtain a business

29-27  license specifically for that event.

29-28     Sec. 41.  Section 77 of Senate Bill No. 6 of the 20th Special

29-29  Session of the Nevada Legislature is hereby amended to read as

29-30  follows:

29-31      Sec. 77. NRS 369.174 is hereby amended to read as

29-32  follows:

29-33      369.174  Each month, the State Controller shall transfer

29-34  to the Tax on Liquor Program Account in the State General

29-35  Fund, from the tax on liquor containing more than 22 percent

29-36  of alcohol by volume, the portion of the tax which exceeds

29-37  [$1.90] $2.93 per wine gallon.

29-38     Sec. 42.  Section 78 of Senate Bill No. 6 of the 20th Special

29-39  Session is hereby amended to read as follows:

29-40      Sec. 78. NRS 369.330 is hereby amended to read as

29-41  follows:

29-42      369.330  Except as otherwise provided in this chapter, an

29-43  excise tax is hereby levied and must be collected respecting

29-44  all liquor and upon the privilege of importing, possessing,

30-1  storing or selling liquor, according to the following rates and

30-2  classifications:

30-3      1.  On liquor containing more than 22 percent of alcohol

30-4  by volume, [$2.05] $3.08 per wine gallon or proportionate

30-5  part thereof.

30-6      2.  On liquor containing more than 14 percent up to and

30-7  including 22 percent of alcohol by volume, [75 cents] $1.13

30-8  per wine gallon or proportionate part thereof.

30-9      3.  On liquor containing from one-half of 1 percent up to

30-10  and including 14 percent of alcohol by volume, [40] 60 cents

30-11  per wine gallon or proportionate part thereof.

30-12     4.  On all malt beverage liquor brewed or fermented and

30-13  bottled in or outside this state, [9] 14 cents per gallon.

30-14     Sec. 43.  Section 79 of Senate Bill No. 6 of the 20th Special

30-15  Session of the Nevada Legislature is hereby amended to read as

30-16  follows:

30-17      Sec. 79.  (Deleted by amendment.)

30-18     Sec. 43.5. Section 80 of Senate Bill No. 6 of the 20th Special

30-19  Session of the Nevada Legislature is hereby amended to read as

30-20  follows:

30-21      Sec. 80.  NRS 370.165 is hereby amended to read as

30-22  follows:

30-23      370.165  There is hereby levied a tax upon the purchase

30-24  or possession of cigarettes by a consumer in the State of

30-25  Nevada at the rate of [17.5] 42.5 mills per cigarette. The tax

30-26  may be represented and precollected by the affixing of a

30-27  revenue stamp or other approved evidence of payment to each

30-28  package, packet or container in which cigarettes are sold. The

30-29  tax must be precollected by the wholesale or retail dealer, and

30-30  must be recovered from the consumer by adding the amount

30-31  of the tax to the selling price. Each person who sells

30-32  cigarettes at retail shall prominently display on his premises a

30-33  notice that the tax is included in the selling price and is

30-34  payable under the provisions of this chapter.

30-35     Sec. 44.  Section 81 of Senate Bill No. 6 of the 20th Special

30-36  Session of the Nevada Legislature is hereby amended to read as

30-37  follows:

30-38      Sec. 81.  (Deleted by amendment.)

30-39     Sec. 44.3. Section 82 of Senate Bill No. 6 of the 20th Special

30-40  Session of the Nevada Legislature is hereby amended to read as

30-41  follows:

30-42      Sec. 82.  NRS 370.260 is hereby amended to read as

30-43  follows:

30-44      370.260  1.  All taxes and license fees imposed by the

30-45  provisions of NRS 370.001 to 370.430, inclusive, less any

31-1  refunds granted as provided by law, must be paid to the

31-2  Department in the form of remittances payable to the

31-3  Department.

31-4      2.  The Department shall:

31-5      (a) As compensation to the State for the costs of

31-6  collecting the taxes and license fees, transmit each month the

31-7  sum the Legislature specifies from the remittances made to it

31-8  pursuant to subsection 1 during the preceding month to the

31-9  State Treasurer for deposit to the credit of the Department.

31-10  The deposited money must be expended by the Department in

31-11  accordance with its work program.

31-12      (b) From the remittances made to it pursuant to

31-13  subsection 1 during the preceding month, less the amount

31-14  transmitted pursuant to paragraph (a), transmit each month

31-15  the portion of the tax which is equivalent to [12.5] 37.5 mills

31-16  per cigarette to the State Treasurer for deposit to the credit of

31-17  the Account for the Tax on Cigarettes in the State General

31-18  Fund.

31-19      (c) Transmit the balance of the payments each month to

31-20  the State Treasurer for deposit in the Local Government Tax

31-21  Distribution Account created by NRS 360.660.

31-22      (d) Report to the State Controller monthly the amount of

31-23  collections.

31-24     3.  The money deposited pursuant to paragraph (c) of

31-25  subsection 2 in the Local Government Tax Distribution

31-26  Account is hereby appropriated to Carson City andto each of

31-27  the counties in proportion to their respective populations and

31-28  must be credited to the respective accounts of Carson City

31-29  and each county.

31-30     Sec. 44.7.  Section 83 of Senate Bill No. 6 of the 20th Special

31-31  Session of the Nevada Legislature is hereby amended to read as

31-32  follows:

31-33      Sec. 83.  NRS 370.350 is hereby amended to read as

31-34  follows:

31-35      370.350  1.  Except as otherwise provided in subsection

31-36  3, a tax is hereby levied and imposed upon the use of

31-37  cigarettes in this state.

31-38     2.  The amount of the use tax is [17.5] 42.5 mills per

31-39  cigarette.

31-40     3.  The use tax does not apply where:

31-41      (a) Nevada cigarette revenue stamps have been affixed to

31-42  cigarette packages as required by law.

31-43      (b) Tax exemption is provided for in this chapter.

32-1      Sec. 45.  Sections 84 to 89, inclusive, of Senate Bill No. 6 of

32-2  the 20th Special Session of the Nevada Legislature are hereby

32-3  amended to read as follows:

32-4      Secs. 84-89.  (Deleted by amendment.)

32-5      Sec. 46.  Sections 90 to 93, inclusive, of Senate Bill No. 6 of

32-6  the 20th Special Session of the Nevada Legislature are hereby

32-7  amended to read as follows:

32-8      Secs. 90-93.  (Deleted by amendment.)

32-9      Sec. 47.  Section 102 of Senate Bill No. 6 of the 20th Special

32-10  Session is hereby amended to read as follows:

32-11      Sec. 102. NRS 375.090 is hereby amended to read as

32-12  follows:

32-13      375.090  The [tax] taxes imposed by NRS 375.020

32-14  [does] and section 95 of this act do not apply to:

32-15     1.  A mere change in [identity, form or place of

32-16  organization, such as a transfer between a corporation and its

32-17  parent corporation, a subsidiary or an affiliated corporation if

32-18  the affiliated corporation has identical common ownership.]

32-19  the name of the owner of the property without a change in

32-20  the ownership interest of the property.

32-21     2.  A transfer of title to the United States, any territory or

32-22  state or any agency, department, instrumentality or political

32-23  subdivision thereof.

32-24     3.  A transfer of title recognizing the true status of

32-25  ownership of the real property.

32-26     4.  A transfer of title without consideration from one joint

32-27  tenant or tenant in common to one or more remaining joint

32-28  tenants or tenants in common.

32-29     5.  [A transfer of title to community property without

32-30  consideration when held in the name of one spouse to both

32-31  spouses as joint tenants or tenants in common, or as

32-32  community property.

32-33      6.] A transfer of title between spouses, including gifts [.

32-34     7.  A transfer of title between spouses] , or to effect a

32-35  property settlement agreement or between former spouses in

32-36  compliance with a decree of divorce.

32-37      [8.] 6.  A transfer of title to or from a trust [, if the

32-38  transfer is made] without consideration [, and is made to or

32-39  from:

32-40      (a) The trustor of the trust;

32-41      (b) The trustor’s legal representative; or

32-42      (c) A person related to the trustor in the first degree of

32-43  consanguinity.

32-44  As used in this subsection, “legal representative” has the

32-45  meaning ascribed to it in NRS 167.020.

33-1      9.] if a certificate of trust is presented at the time of

33-2  transfer.

33-3      7.  Transfers, assignments or conveyances of unpatented

33-4  mines or mining claims.

33-5      [10.  A transfer, assignment or other conveyance of real

33-6  property to a corporation or other business organization if the

33-7  person conveying the property owns 100 percent of the

33-8  corporation or organization to which the conveyance is made.

33-9      11.] 8.  A transfer, assignment or other conveyance of

33-10  real property if the owner of the property is related to the

33-11  person to whom it is conveyed within the first degree of

33-12  consanguinity.

33-13      [12.] 9.  The making, delivery or filing of conveyances

33-14  of real property to make effective any plan of reorganization

33-15  or adjustment:

33-16      (a) Confirmed under the Bankruptcy Act, as amended, 11

33-17  U.S.C. §§ 101 et seq.;

33-18      (b) Approved in an equity receivership proceeding

33-19  involving a railroad, as defined in the Bankruptcy Act; or

33-20      (c) Approved in an equity receivership proceeding

33-21  involving a corporation, as defined in the Bankruptcy

33-22  Act,

33-23  if the making, delivery or filing of instruments of transfer or

33-24  conveyance occurs within 5 years after the date of the

33-25  confirmation, approval or change.

33-26      [13.] 10.  The making or delivery of conveyances of real

33-27  property to make effective any order of the Securities and

33-28  Exchange Commission if:

33-29      (a) The order of the Securities and Exchange Commission

33-30  in obedience to which the transfer or conveyance is made

33-31  recites that the transfer or conveyance is necessary or

33-32  appropriate to effectuate the provisions of section 11 of the

33-33  Public Utility Holding Company Act of 1935, 15 U.S.C. §

33-34  79k;

33-35      (b) The order specifies and itemizes the property which is

33-36  ordered to be transferred or conveyed; and

33-37      (c) The transfer or conveyance is made in obedience to

33-38  the order.

33-39      [14.] 11.  A transfer to an educational foundation. As

33-40  used in this subsection, “educational foundation” has the

33-41  meaning ascribed to it in subsection 3 of NRS 388.750.

33-42      [15.] 12.  A transfer to a university foundation. As used

33-43  in this subsection, “university foundation” has the meaning

33-44  ascribed to it in subsection 3 of NRS 396.405.

34-1      [16.  A transfer, assignment or other conveyance of real

34-2  property to a corporation sole from another corporation sole.

34-3  As used in this subsection, “corporation sole” means a

34-4  corporation which is organized pursuant to the provisions of

34-5  chapter 84 of NRS.]

34-6      Sec. 48.  Section 126 of Senate Bill No. 6 of the 20th Special

34-7  Session of the Nevada Legislature is hereby amended to read as

34-8  follows:

34-9      Sec. 126. The Nevada Legislature hereby finds and

34-10  declares that:

34-11     1.  The 20th Special Session of the Nevada Legislature

34-12  has responded to concerns for the provision of additional

34-13  state revenue by enacting several measures that affect the

34-14  burden on taxpayers in this state.

34-15     2.  The Nevada Legislature must continue to be

34-16  responsive to the requirements of a growing school

34-17  population and the needs of the people of this state, and in

34-18  order to accomplish these goals must provide itself with

34-19  timely and accurate information regarding the effects of the

34-20  measures it has enacted.

34-21     3.  It is the intent of the Nevada Legislature to create a

34-22  legislative committee to study the effects of the measures it

34-23  has enacted with regard to both the resulting revenue and

34-24  the resulting expenses, and to report the information it

34-25  obtains for use at the next regular session of the Nevada

34-26  Legislature.

34-27     Sec. 49.  Section 134 of Senate Bill No. 6 of the 20th Special

34-28  Session of the Nevada Legislature is hereby amended to read as

34-29  follows:

34-30      Sec. 134.  (Deleted by amendment.)

34-31     Sec. 50.  Sections 136 to 140, inclusive, of Senate Bill No. 6 of

34-32  the 20th Special Session of the Nevada Legislature are hereby

34-33  amended to read as follows:

34-34      Secs. 136-140.  (Deleted by amendment.)

34-35     Sec. 51.  Sections 142, 143 and 144 of Senate Bill No. 6 of the

34-36  20th Special Session of the Nevada Legislature are hereby amended

34-37  to read as follows:

34-38      Secs. 142-144.  (Deleted by amendment.)

34-39     Sec. 52.  Sections 146, 147 and 148 of Senate Bill No. 6 of the

34-40  20th Special Session of the Nevada Legislature are hereby amended

34-41  to read as follows:

34-42      Secs. 146-148.  (Deleted by amendment.)

34-43     Sec. 53.  (Deleted.)

35-1      Sec. 54.  Sections 161 to 165, inclusive, of Senate Bill No. 6 of

35-2  the 20th Special Session of the Nevada Legislature are hereby

35-3  amended to read as follows:

35-4      Secs. 161-165.  (Deleted by amendment.)

35-5      Sec. 55.  Section 166 of Senate Bill No. 6 of the 20th Special

35-6  Session of the Nevada Legislature is hereby amended to read as

35-7  follows:

35-8      Sec. 166.  NRS 388.750 is hereby amended to read as

35-9  follows:

35-10      388.750  1.  An educational foundation:

35-11      (a) Shall comply with the provisions of chapter 241 of

35-12  NRS;

35-13      (b) Except as otherwise provided in subsection 2, shall

35-14  make its records public and open to inspection pursuant to

35-15  NRS 239.010; and

35-16      (c) Is exempt from the tax on transfer of real property

35-17  pursuant to subsection [14] 11 of NRS 375.090.

35-18     2.  An educational foundation is not required to disclose

35-19  the names of the contributors to the foundation or the amount

35-20  of their contributions. The educational foundation shall, upon

35-21  request, allow a contributor to examine, during regular

35-22  business hours, any record, document or other information of

35-23  the foundation relating to that contributor.

35-24     3.  As used in this section, “educational foundation”

35-25  means a nonprofit corporation, association or institution or a

35-26  charitable organization that is:

35-27      (a) Organized and operated exclusively for the purpose of

35-28  supporting one or more kindergartens, elementary schools,

35-29  junior high or middle schools or high schools, or any

35-30  combination thereof;

35-31      (b) Formed pursuant to the laws of this state; and

35-32      (c) Exempt from taxation pursuant to 26 U.S.C. §

35-33  501(c)(3).

35-34     Sec. 56.  Section 167 of Senate Bill No. 6 of the 20th Special

35-35  Session of the Nevada Legislature is hereby amended to read as

35-36  follows:

35-37      Sec. 167.  NRS 396.405 is hereby amended to read as

35-38  follows:

35-39      396.405  1.  A university foundation:

35-40      (a) Shall comply with the provisions of chapter 241 of

35-41  NRS;

35-42      (b) Except as otherwise provided in subsection 2, shall

35-43  make its records public and open to inspection pursuant to

35-44  NRS 239.010;

36-1      (c) Is exempt from the tax on transfers of real property

36-2  pursuant to subsection [14] 11 of NRS 375.090; and

36-3      (d) May allow a president or an administrator of the

36-4  university or community college which it supports to serve as

36-5  a member of its governing body.

36-6      2.  A university foundation is not required to disclose the

36-7  name of any contributor or potential contributor to the

36-8  university foundation, the amount of his contribution or any

36-9  information which may reveal or lead to the discovery of his

36-10  identity. The university foundation shall, upon request, allow

36-11  a contributor to examine, during regular business hours, any

36-12  record, document or other information of the foundation

36-13  relating to that contributor.

36-14     3.  As used in this section, “university foundation” means

36-15  a nonprofit corporation, association or institution or a

36-16  charitable organization that is:

36-17      (a) Organized and operated exclusively for the purpose of

36-18  supporting a university or a community college;

36-19      (b) Formed pursuant to the laws of this state; and

36-20      (c) Exempt from taxation pursuant to 26 U.S.C. §

36-21  501(c)(3).

36-22     Sec. 57.  Section 174 of Senate Bill No. 6 of the 20th Special

36-23  Session of the Nevada Legislature is hereby amended to read as

36-24  follows:

36-25      Sec. 174.  NRS 463.401 is hereby amended to read as

36-26  follows:

36-27      463.401  1.  In addition to any other license fees and

36-28  taxes imposed by this chapter, a casino entertainment tax

36-29  equivalent to 10 percent of all amounts paid for admission,

36-30  food, refreshments and merchandise is hereby levied, except

36-31  as otherwise provided in subsection 2, upon each licensed

36-32  gaming establishment in this state where [music and dancing

36-33  privileges or any other] live entertainment is provided to the

36-34  patrons [in a cabaret, nightclub, cocktail lounge or casino

36-35  showroom in connection with the serving or selling of food or

36-36  refreshments or the selling of any merchandise.] of the

36-37  licensed gaming establishment. Amounts paid for gratuities

36-38  directly or indirectly remitted to employees of the licensee or

36-39  for service charges, including those imposed in connection

36-40  with use of credit cards or debit cards, that are collected and

36-41  retained by persons other than the licensee are not taxable

36-42  pursuant to this section.

36-43     2.  A licensed gaming establishment is not subject to tax

36-44  pursuant to this section if:

37-1      (a) The establishment is licensed for less than 51 slot

37-2  machines, less than six games, or any combination of slot

37-3  machines and games within those respective limits [;

37-4      (b) The entertainment is presented in a facility that would

37-5  not have been subject to taxation pursuant to 26 U.S.C. §

37-6  4231(6) as that provision existed in 1965;

37-7      (c) The entertainment is presented in a facility that would

37-8  have been subject to taxation pursuant to 26 U.S.C. §

37-9  4231(1), (2), (3), (4) or (5) as those provisions existed in

37-10  1965; or

37-11      (d) In other cases, if:

37-12         (1) No distilled spirits, wine or beer is served or

37-13  permitted to be consumed;

37-14         (2) Only light refreshments are served;

37-15         (3) Where space is provided for dancing, no charge is

37-16  made for dancing; and

37-17         (4) Where music is provided or permitted, the music is

37-18  provided without any charge to the owner, lessee or operator

37-19  of the establishment or to any concessionaire.] ; or

37-20      (b) The facility in which the live entertainment is

37-21  provided has a maximum seating capacity that is at least

37-22  7,500.

37-23     3. The tax imposed by this section does not apply to

37-24  [merchandise] :

37-25      (a) Live entertainment that this state is prohibited from

37-26  taxing under the Constitution, laws or treaties of the United

37-27  States or the Nevada Constitution.

37-28      (b) Merchandise sold outside the facility in which the live

37-29  entertainment is presented, unless the purchase of the

37-30  merchandise entitles the purchaser to admission to the

37-31  entertainment.

37-32      (c) Any live entertainment that is provided by or entirely

37-33  for the benefit of a nonprofit organization that is recognized

37-34  as exempt from taxation pursuant to 26 U.S.C. § 501(c).

37-35      (d) Live entertainment that is provided at a trade show.

37-36      (e) Music performed by musicians who move constantly

37-37  through the audience if no other form of live entertainment

37-38  is afforded to the patrons.

37-39      (f) Any boxing contest or exhibition governed by the

37-40  provisions of chapter 467 of NRS.

37-41      (g) Live entertainment that is provided or occurs at

37-42  private meetings or dinners attended by members of a

37-43  particular organization or by a casual assemblage and the

37-44  purpose of the event is not primarily for entertainment.

38-1      (h) Live entertainment presented in a common area of a

38-2  shopping mall, unless the entertainment is provided in a

38-3  facility located within the mall.

38-4      4.  The tax imposed by this section must be paid by the

38-5  licensee of the establishment.

38-6      5.  As used in this section, “live entertainment” means

38-7  any activity provided for pleasure, enjoyment, recreation,

38-8  relaxation, diversion or other similar purpose by a person or

38-9  persons who are physically present when providing that

38-10  activity to a patron or group of patrons who are physically

38-11  present.

38-12     Sec. 58.  Section 178 of Senate Bill No. 6 of the 20th Special

38-13  Session of the Nevada Legislature is hereby amended to read as

38-14  follows:

38-15      Sec. 178.  (Deleted by amendment.)

38-16     Sec. 59.  Section 180 of Senate Bill No. 6 of the 20th Special

38-17  Session of the Nevada Legislature is hereby amended to read as

38-18  follows:

38-19      Sec. 180.  (Deleted by amendment.)

38-20     Sec. 60.  Sections 184 and 185 of Senate Bill No. 6 of the 20th

38-21  Special Session of the Nevada Legislature are hereby amended to

38-22  read as follows:

38-23      Secs. 184 and 185.  (Deleted by amendment.)

38-24     Sec. 61.  Section 186 of Senate Bill No. 6 of the 20th Special

38-25  Session of the Nevada Legislature is hereby amended to read as

38-26  follows:

38-27      Sec. 186.  (Deleted by amendment.)

38-28     Sec. 62.  Senate Bill No. 6 of the 20th Special Session of the

38-29  Nevada Legislature is hereby amended by adding thereto a new

38-30  section to be designated as section 186.9, following section 186.7, to

38-31  read as follows:

38-32      Sec. 186.9.  Section 11 of this act is hereby amended to

38-33  read as follows:

38-34      Sec. 11.  1.  There is hereby imposed an excise tax

38-35  on each employer at the rate of [0.85] 0.65 percent of the

38-36  wages, as defined in NRS 612.190, paid by the employer

38-37  during a calendar quarter with respect to employment.

38-38      2.  The tax imposed by this section must not be

38-39  deducted, in whole or in part, from any wages of persons

38-40  in the employment of the employer.

38-41      3.  Each employer shall, on or before the last day of

38-42  the month immediately following each calendar quarter

38-43  for which the employer is required to pay a contribution

38-44  pursuant to NRS 612.535:

38-45      (a) File with the Department:

39-1          (1) A return on a form prescribed by the

39-2  Department; and

39-3          (2) A copy of any report required by the

39-4  Employment Security Division of the Department of

39-5  Employment, Training and Rehabilitation for determining

39-6  the amount of the contribution required pursuant to NRS

39-7  612.535 for any wages paid by the employer during that

39-8  calendar quarter; and

39-9      (b) Remit to the Department any tax due pursuant to

39-10  this chapter for that calendar quarter.

39-11      4.  Except as otherwise provided in subsection 5, an

39-12  employer may deduct from the total amount of wages

39-13  reported and upon which the excise tax is imposed

39-14  pursuant this section any amount authorized pursuant to

39-15  this section that is paid by the employer for health

39-16  insurance or a health benefit plan for its employees in the

39-17  calendar quarter for which the tax is paid. The amounts for

39-18  which the deduction is allowed include:

39-19      (a) For an employer providing a program of self-

39-20  insurance for its employees, all amounts paid during the

39-21  calendar quarter for claims, direct administrative services

39-22  costs, including such services provided by the employer,

39-23  and any premiums paid for individual or aggregate stop-

39-24  loss insurance coverage. An employer is not authorized to

39-25  deduct the costs of a program of self-insurance unless the

39-26  program is a qualified employee welfare benefit plan

39-27  pursuant to the Employee Retirement Income Security Act

39-28  of 1974, 29 U.S.C. §§ 1001 et seq.

39-29      (b) The premiums for a policy of health insurance or

39-30  reinsurance for a health benefit plan for its employees.

39-31      (c) Any amounts paid by an employer to a Taft-

39-32  Hartley trust formed pursuant to 29 U.S.C. § 186(c)(5) for

39-33  participation in an employee welfare benefit plan.

39-34      (d) Such other similar payments for health care or

39-35  insurance for health care for employees as are authorized

39-36  by the Department.

39-37      5.  An employer may not deduct from the wages upon

39-38  which the excise tax is imposed pursuant this section:

39-39      (a) Amounts paid for health care or premiums paid for

39-40  insurance for an industrial injury or occupational disease

39-41  for which coverage is required pursuant to chapters 616A

39-42  to 616D, inclusive, or 617 of NRS; or

39-43      (b) Any payments made by employees for health care

39-44  or health insurance or amounts deducted from the wages

39-45  of employees for such care or insurance.

40-1      6.  An employer claiming the deduction allowed

40-2  pursuant to subsection 4 shall submit with the return filed

40-3  pursuant to subsection 3 proof of the amount paid in the

40-4  calendar quarter that qualifies for the deduction. If the

40-5  amount of the deduction exceeds the amount of reported

40-6  wages, the excess amount may be carried forward to the

40-7  following calendar quarter until the deduction is

40-8  exhausted.

40-9      7.  As used in this section, “employee welfare benefit

40-10  plan” has the meaning ascribed to it in 29 U.S.C. § 1002.

40-11     Sec. 62.5. Section 187 of Senate Bill No. 6 of the 20th Special

40-12  Session of the Nevada Legislature is hereby amended to read as

40-13  follows:

40-14      Sec. 187.  Section 66 of this act is hereby amended to

40-15  read as follows:

40-16      Sec. 66.  1.  Except as otherwise provided in

40-17  subsection 8, a person shall not conduct a business in this

40-18  state unless he has a business license issued by the

40-19  Department.

40-20      2.  An application for a business license must:

40-21      (a) Be made upon a form prescribed by the

40-22  Department;

40-23      (b) Set forth the name under which the applicant

40-24  transacts or intends to transact business and the location of

40-25  his place or places of business;

40-26      (c) Declare the estimated number of employees for the

40-27  previous calendar quarter;

40-28      (d) Be accompanied by a fee of $125; and

40-29      (e) Include any other information that the Department

40-30  deems necessary.

40-31      3.  The application must be signed by:

40-32      (a) The owner, if the business is owned by a natural

40-33  person;

40-34      (b) A member or partner, if the business is owned by

40-35  an association or partnership; or

40-36      (c) An officer or some other person specifically

40-37  authorized to sign the application, if the business is owned

40-38  by a corporation.

40-39      4.  If the application is signed pursuant to paragraph

40-40  (c) of subsection 3, written evidence of the signer’s

40-41  authority must be attached to the application.

40-42      5.  A person who has been issued a business license

40-43  by the Department shall submit a fee of $125 to the

40-44  Department on or before the last day of the month in

40-45  which the anniversary date of issuance of the business

41-1  license occurs in each year, unless the person submits a

41-2  written statement to the Department, at least 10 days

41-3  before the anniversary date, indicating that the person will

41-4  not be conducting business in this state after the

41-5  anniversary date. A person who fails to submit the annual

41-6  fee required pursuant to this subsection in a timely

41-7  manner shall pay a penalty in the amount of $125 in

41-8  addition to the annual fee.

41-9      6.  The business license required to be obtained

41-10  pursuant to this section is in addition to any license to

41-11  conduct business that must be obtained from the local

41-12  jurisdiction in which the business is being conducted.

41-13      7.  For the purposes of sections 61 to 66, inclusive, of

41-14  this act, a person shall be deemed to conduct a business in

41-15  this state if a business for which the person is responsible:

41-16      (a) Is organized pursuant to title 7 of NRS, other than

41-17  a business organized pursuant to chapter 82 or 84 of NRS:

41-18      (b) Has an office or other base of operations in this

41-19  state; or

41-20      (c) Pays wages or other remuneration to a natural

41-21  person who performs in this state any of the duties for

41-22  which he is paid.

41-23      8.  A person who takes part in a trade show or

41-24  convention held in this state for a purpose related to the

41-25  conduct of a business is not required to obtain a business

41-26  license specifically for that event.

41-27     Sec. 63.  Senate Bill No. 6 of the 20th Special Session of the

41-28  Nevada Legislature is hereby amended by adding thereto a new

41-29  sections to be designated as sections 188.3, 188.5 and 188.7,

41-30  following section 188, to read as follows:

41-31      Sec. 188.3.  Section 58 of Assembly Bill No. 553 of the

41-32  72nd Session of the Nevada Legislature is hereby amended to

41-33  read as follows:

41-34      Sec. 58. 1.  If projections of the ending balance of

41-35  the State General Fund fall below the amount estimated by

41-36  the [2003] Nevada Legislature for Fiscal Year 2003-2004

41-37  or 2004-2005, the Director of the Department of

41-38  Administration shall report this information to the State

41-39  Board of Examiners.

41-40      2.  If the State Board of Examiners determines that

41-41  the ending balance of the State General Fund is projected

41-42  to be less than $60,000,000 for Fiscal Year 2003-2004 or

41-43  2004-2005, the Governor, pursuant to NRS 353.225, may

41-44  direct the Director of the Department of Administration to

41-45  require the State Controller or the head of each

42-1  department, institution or agency to set aside a reserve of

42-2  not more than 15 percent of the total amount of operating

42-3  expenses or other appropriations and money otherwise

42-4  available to the department, institution or agency.

42-5      3.  A reserve must not be set aside pursuant to this

42-6  section unless:

42-7      (a) The Governor, on behalf of the State Board of

42-8  Examiners, submits a report to the Legislature, or, if the

42-9  Legislature is not in session, to the Interim Finance

42-10  Committee, stating the reasons why a reserve is needed

42-11  and indicating each department, institution or agency that

42-12  will be required to set aside a reserve; and

42-13      (b) The Legislature or Interim Finance Committee

42-14  approves the setting aside of the reserve.

42-15      Sec. 188.5. Section 61 of Assembly Bill No. 553 of the

42-16  72nd Session of the Nevada Legislature is hereby amended to

42-17  read as follows:

42-18      Sec. 61.  1.  There is hereby appropriated from the

42-19  State General Fund to the Interim Finance Committee the

42-20  sum of $12,500,000 in Fiscal Year 2003-2004 and

42-21  [$20,000,000] $15,000,000 in Fiscal Year 2004-2005 for

42-22  information technology and additional operational costs

42-23  that may be required by the Department of Taxation or

42-24  other state agency to implement or modify the collections

42-25  of State General Fund revenues . [approved by the 72nd

42-26  Session of the Nevada Legislature.]

42-27      2.  If the Department of Taxation or other state

42-28  agency determines that additional resources are necessary

42-29  for information technology or additional operational costs

42-30  related to subsection 1, the State Board of Examiners shall

42-31  consider the request and recommend the amount of the

42-32  allocation, if any, to the Interim Finance Committee.

42-33      3.  The Interim Finance Committee is not required to

42-34  approve the entire amount of an allocation recommended

42-35  pursuant to subsection 2 or to allocate the entire amount

42-36  appropriated in subsection 1.

42-37      4.  The sums appropriated by subsection 1 are

42-38  available for either fiscal year. Any balance of those sums

42-39  must not be committed for expenditure after June 30,

42-40  2005, and reverts to the State General Fund as soon as all

42-41  payments of money committed have been made.

 

 

 

43-1      Sec. 188.7. Section 1 of Senate Bill No. 243 of the 72nd

43-2  Session of the Nevada Legislature is hereby amended to read

43-3  as follows:

43-4      Section 1.  [1.  There is hereby appropriated from

43-5  the State General Fund to the Fund to Stabilize the

43-6  Operation of State Government created by NRS 353.288

43-7  the sum of $30,000,000.

43-8      2.] Notwithstanding the provisions of NRS 353.235:

43-9      [(a)] 1.  Upon receipt of the projections and estimates

43-10  of the Economic Forum required by paragraph (d) of

43-11  subsection 1 of NRS 353.228 to be reported on or before

43-12  December 1, 2004, the Interim Finance Committee shall

43-13  project the ending balance of the State General Fund for

43-14  Fiscal Year 2004-2005, using all relevant information

43-15  known to it.

43-16      [(b)] 2.  Except as otherwise provided in [paragraph

43-17  (c),] subsection 3, there is hereby contingently

43-18  appropriated from the State General Fund to the Fund to

43-19  Stabilize the Operation of State Government created by

43-20  NRS 353.288 the amount, if any, by which the projection

43-21  required by [paragraph (a)] subsection 1 exceeds the

43-22  amount of the ending balance of the State General Fund

43-23  for Fiscal Year 2004-2005 as estimated by the [2003

43-24  Legislature.

43-25      (c)] Nevada Legislature.

43-26      3.  The amount of any appropriation pursuant to

43-27  [paragraph (b)] subsection 2 must not exceed

43-28  [$20,000,000.] $50,000,000.

43-29     Sec. 64.  Section 189 of Senate Bill No. 6 of the 20th Special

43-30  Session of the Nevada Legislature is hereby amended to read as

43-31  follows:

43-32      Sec. 189.  1.  NRS 353.272, 364.160, 375.025 and

43-33  375.075 are hereby repealed.

43-34     2.  NRS 463.4001, 463.4002, 463.4004, 463.4006,

43-35  463.4008, 463.4009 and 463.4015 are hereby repealed.

43-36     3.  NRS 364A.010, 364A.020, 364A.030, 364A.040,

43-37  364A.050, 364A.060, 364A.070, 364A.080, 364A.090,

43-38  364A.100, 364A.110, 364A.120, 364A.130, 364A.135,

43-39  364A.140, 364A.150, 364A.151, 364A.152, 364A.1525,

43-40  364A.170, 364A.175, 364A.180, 364A.190, 364A.230,

43-41  364A.240, 364A.250, 364A.260, 364A.270, 364A.280,

43-42  364A.290, 364A.300, 364A.310, 364A.320, 364A.330,

43-43  364A.340, 364A.350, 463.401, 463.402, 463.403, 463.404,

43-44  463.4045, 463.405, 463.4055 and 463.406 are hereby

43-45  repealed.

44-1      Sec. 65.  Section 190 of Senate Bill No. 6 of the 20th Special

44-2  Session of the Nevada Legislature is hereby amended to read as

44-3  follows:

44-4      Sec. 190.  Notwithstanding the provisions of NRS

44-5  353.288:

44-6      1.  After the close of the 2003-2004 Fiscal Year and after

44-7  the close of the 2004-2005 Fiscal Year, the Interim Finance

44-8  Committee shall determine the amount, if any, by which the

44-9  total revenue from all sources to the State General Fund,

44-10  excluding reversions to the State General Fund, exceeds:

44-11      (a) One hundred seven percent of the total revenue from

44-12  all sources to the State General Fund as projected by the

44-13  Nevada Legislature for the applicable fiscal year; and

44-14      (b) The total amount of all applicable contingent

44-15  appropriations enacted for the 2003-2004 Fiscal Year and the

44-16  2004-2005 Fiscal Year by the Nevada Legislature for which

44-17  the conditions for the contingent appropriations were

44-18  satisfied.

44-19     2.  Any excess amount of revenue determined pursuant to

44-20  subsection 1 must be used as follows:

44-21      (a) An amount estimated by the Interim Finance

44-22  Committee to pay for expenditures that will occur in the next

44-23  biennium for which the corresponding expenditures in the

44-24  current biennium were paid or are to be paid from a source

44-25  other than the State General Fund, but for which the

44-26  alternative source of revenue likely will not be available or

44-27  will not be received during the biennium, must be used to

44-28  replace previously used nonrecurring revenue. This amount

44-29  must be accounted for separately in the State General Fund.

44-30      (b) The remaining excess amount of revenue must be

44-31  transferred to the Fund to Stabilize the Operation of the State

44-32  Government created by NRS 353.288, in such an amount that

44-33  does not cause the balance in the Fund to exceed the

44-34  limitation on that balance set forth in NRS 353.288.

44-35      (c) Any remaining excess amount of revenue must be

44-36  transferred to the Fund for Tax Accountability created

44-37  pursuant to section 191 of this act.

44-38     Sec. 66.  Senate Bill No. 6 of the 20th Special Session of the

44-39  Nevada Legislature is hereby amended by adding thereto a new

44-40  section designated sec. 191.3, following sec. 191, to read as follows:

44-41      Sec. 191.3.  1.  The Legislative Auditor shall conduct a

44-42  performance audit of the Clark County School District. The

44-43  performance audit must include issues identified in the

44-44  Preliminary Performance Audit Survey conducted pursuant to

45-1  section 46 of chapter 570, Statutes of Nevada 2001, at page

45-2  2867. These issues include, but are not limited to:

45-3      (a) Financial management;

45-4      (b) Facilities management;

45-5      (c) Personnel management;

45-6      (d) District organization; and

45-7      (e) Employee health plans.

45-8      2.  The Legislative Auditor shall conduct a performance

45-9  audit of the Washoe County School District. The performance

45-10  audit must include issues identified in the Preliminary

45-11  Performance Audit Survey conducted pursuant to section 46

45-12  of chapter 570, Statutes of Nevada 2001, at page 2867. These

45-13  issues include, but are not limited to:

45-14      (a) Financial management;

45-15      (b) Facilities management;

45-16      (c) Personnel management; and

45-17      (d) Transportation.

45-18     3.  The Legislative Auditor shall prepare a final written

45-19  report for each of the audits conducted pursuant to

45-20  subsections 1 and 2 and present the reports to the Audit

45-21  Subcommittee of the Legislative Commission not later than

45-22  February 7, 2005.

45-23     4.  To the extent that the provisions of NRS 218.737 to

45-24  218.890, inclusive, are consistent with the requirements of

45-25  this section, those provisions apply to the audits conducted

45-26  pursuant to this section. For the purposes of this subsection,

45-27  the Clark County School District and the Washoe County

45-28  School District shall be deemed to be agencies of the State.

45-29     5.  Upon the request of the Legislative Auditor or his

45-30  authorized representative, the officers and employees of the

45-31  Clark County School District and the Washoe County School

45-32  District shall make available to the Legislative Auditor any of

45-33  their books, accounts, claims, reports, vouchers or other

45-34  records of information, confidential or otherwise and

45-35  irrespective of their form or location, which the Legislative

45-36  Auditor deems necessary to conduct the audits required by

45-37  this section.

45-38     Sec. 67.  Section 193 of Senate Bill No. 6 of the 20th Special

45-39  Session of the Nevada Legislature is hereby amended to read as

45-40  follows:

45-41      Sec. 193.  (Deleted by amendment.)

 

 

 

46-1      Sec. 68.  Section 194 of Senate Bill No. 6 of the 20th Special

46-2  Session of the Nevada Legislature is hereby amended to read as

46-3  follows:

46-4      Sec. 194.  1.  There is hereby appropriated from the

46-5  State General Fund to the Interim Finance Committee for

46-6  allocation to the Legislative Committee on Taxation, Public

46-7  Revenue and Tax Policy to exercise its powers pursuant to

46-8  section 130 of this act, including, without limitation, to hire a

46-9  consultant:

46-10  For the Fiscal Year 2003-2004$125,000

46-11  For the Fiscal Year 2004-2005$125,000

46-12     2.  The Interim Finance Committee may allocate to the

46-13  Legislative Committee on Taxation, Public Revenue and Tax

46-14  Policy all or any portion of the money appropriated by

46-15  subsection 1.

46-16     3.  The sums appropriated by subsection 1 are available

46-17  for either fiscal year. Any balance of those sums must not be

46-18  committed for expenditure after June 30, 2005, and reverts to

46-19  the State General Fund as soon as all payments of money

46-20  committed have been made.

46-21     Sec. 69.  Senate Bill No. 6 is hereby amended by adding

46-22  thereto new sections designated sections 194.10 through 194.22,

46-23  following sec. 194, to read as follows:

46-24      Sec. 194.10.  1.  There is hereby appropriated from the

46-25  State General Fund to the State Distributive School Account

46-26  the sum of $108,937,389 for distribution by the

46-27  Superintendent of Public Instruction to the county school

46-28  districts for Fiscal Year 2003-2004 which must, except as

46-29  otherwise provided in sections 194.14 and 194.18 of this act,

46-30  be used to employ teachers to comply with the required ratio

46-31  of pupils to teachers, as set forth in NRS 388.700, in grades 1

46-32  and 2 and in selected kindergartens with pupils who are

46-33  considered at risk of failure by the Superintendent of Public

46-34  Instruction and to maintain the current ratio of pupils per

46-35  teacher in grade 3. Expenditures for the class-size reduction

46-36  program must be accounted for in a separate category of

46-37  expenditure in the State Distributive School Account.

46-38     2.  Except as otherwise provided in sections 194.14 and

46-39  194.18 of this act, the money appropriated by subsection 1

46-40  must be used to pay the salaries and benefits of not less than

46-41  1,887 teachers employed by school districts to meet the

46-42  required pupil-teacher ratios in the 2003-2004 school year.

46-43     3.  Any remaining balance of the sum appropriated by

46-44  subsection 1 must not be committed for expenditure after

46-45  June 30, 2004, and must be transferred and added to the

47-1  money appropriated to the State Distributive School Account

47-2  pursuant to section 194.12 of this act for the 2004-2005 Fiscal

47-3  Year, and may be expended as that money is expended.

47-4      Sec. 194.12. 1.  There is hereby appropriated from the

47-5  State General Fund to the State Distributive School Account

47-6  the sum of $117,142,553 for distribution by the

47-7  Superintendent of Public Instruction to the county school

47-8  districts for Fiscal Year 2004-2005 which must, except as

47-9  otherwise provided in sections 194.14 and 194.18 of this act,

47-10  be used to employ teachers to comply with the required ratio

47-11  of pupils to teachers, as set forth in NRS 388.700, in grades 1

47-12  and 2 and in selected kindergartens with pupils who are

47-13  considered at risk of failure by the Superintendent of Public

47-14  Instruction and to maintain the current ratio of pupils per

47-15  teacher in grade 3. Expenditures for the class-size reduction

47-16  program must be accounted for in a separate category of

47-17  expenditure in the State Distributive School Account.

47-18     2.  Except as otherwise provided in sections 194.14 and

47-19  194.18 of this act, the money appropriated by subsection 1

47-20  must be used to pay the salaries and benefits of not less than

47-21  1,953 teachers employed by school districts to meet the

47-22  required pupil-teacher ratios in the 2004-2005 school year.

47-23     3.  Any remaining balance of the sum appropriated by

47-24  subsection 1, including any money added thereto pursuant to

47-25  section 194.10 of this act, must not be committed for

47-26  expenditure after June 30, 2005, and reverts to the State

47-27  General Fund as soon as all payments of money committed

47-28  have been made.

47-29      Sec. 194.14. 1.  Except as otherwise provided in

47-30  subsection 2, the board of trustees of each county school

47-31  district:

47-32      (a) Shall file a plan with the Superintendent of Public

47-33  Instruction describing how the money appropriated by

47-34  sections 194.10 and 194.12 of this act will be used to comply

47-35  with the required ratio of pupils to teachers in kindergarten

47-36  and grades 1, 2 and 3; or

47-37      (b) May, after receiving approval of the plan from the

47-38  Superintendent of Public Instruction, use the money

47-39  appropriated by sections 194.10 and 194.12 of this act to

47-40  carry out an alternative program for reducing the ratio of

47-41  pupils per teacher or to carry out programs of remedial

47-42  education that have been found to be effective in improving

47-43  pupil achievement in grades 1, 2 and 3, so long as the

47-44  combined ratio of pupils per teacher in the aggregate of

47-45  kindergarten and grades 1, 2 and 3 of the school district does

48-1  not exceed the combined ratio of pupils per teacher in the

48-2  aggregate of kindergarten and grades 1, 2 and 3 of the school

48-3  district in the 2000-2001 school year. The plan approved by

48-4  the Superintendent of Public Instruction must describe the

48-5  method to be used by the school district to evaluate the

48-6  effectiveness of the alternative program or remedial programs

48-7  in improving pupil achievement.

48-8      2.  In lieu of complying with subsection 1, the board of

48-9  trustees of a school district that is located in a county whose

48-10  population is less than 100,000 may, after receiving approval

48-11  of the plan from the Superintendent of Public Instruction, use

48-12  the money appropriated by sections 194.10 and 194.12 of this

48-13  act to carry out a program in which alternative pupil-teacher

48-14  ratios are carried out in grades 1 through 5 or grades 1

48-15  through 6, as applicable. Alternative ratios for grade 6 may

48-16  only be approved for those school districts that include grade

48-17  6 in elementary school. The alternative pupil-teacher ratios

48-18  shall not:

48-19      (a) Exceed 22 to 1 in grades 1, 2 and 3; and

48-20      (b) Exceed 25 to 1 in grades 4 and 5 or grades 4, 5 and 6,

48-21  as applicable.

48-22     3.  If a school district receives approval to carry out

48-23  programs of remedial education pursuant to paragraph (b) of

48-24  subsection 1 or to carry out alternative pupil-teacher ratios

48-25  pursuant to subsection 2, the school district shall evaluate the

48-26  effectiveness of the alternative program. The evaluation must

48-27  include, without limitation, the effect of the alternative

48-28  program on:

48-29      (a) Team teaching;

48-30      (b) Pupil discipline; and

48-31      (c) The academic achievement of pupils.

48-32     4.  A school district shall submit a written report of the

48-33  results of the evaluation to the Superintendent of Public

48-34  Instruction on or before December 1 of each year for the

48-35  immediately preceding school year. The Superintendent of

48-36  Public Instruction shall summarize the results of the

48-37  evaluations and report the findings in an interim report

48-38  to the Legislative Committee on Education on or before

48-39  February 16, 2004.

48-40     5.  On or before February 1, 2005, the Superintendent of

48-41  Public Instruction shall submit a final written report of the

48-42  results of the evaluations of alternative class-size reduction

48-43  programs to the Legislative Bureau of Educational

48-44  Accountability and Program Evaluation. On or before

48-45  February 15, 2005, the Legislative Bureau of Educational

49-1  Accountability and Program Evaluation shall submit a copy

49-2  of the written report to the Director of the Legislative Counsel

49-3  Bureau for transmission to the 73rd Session of the Nevada

49-4  Legislature.

49-5      6.  The interim report required pursuant to subsection 4

49-6  and the final written report required pursuant to subsection 5

49-7  must include, without limitation:

49-8      (a) The number of school districts for which an

49-9  alternative class-size reduction program was approved;

49-10      (b) A description of the approved alternative class-size

49-11  reduction programs; and

49-12      (c) The effect of the alternative class-size reduction

49-13  programs on:

49-14         (1) Team teaching;

49-15         (2) Pupil discipline; and

49-16         (3) The academic achievement of pupils.

49-17      Sec. 194.16. 1.  During the 2003-2005 biennium, a

49-18  school district that is located in a county whose population is

49-19  100,000 or more shall study the current class-sizes in the

49-20  school district for grades 1 to 5, inclusive, to determine

49-21  whether alternative pupil-teacher ratios may:

49-22      (a) Improve the academic achievement of pupils;

49-23      (b) Decrease pupil discipline; or

49-24      (c) Decrease or eliminate team-teaching in grades 1 and 2.

49-25     2.  In conducting the study, the school district shall

49-26  consider the costs that would be associated with carrying out

49-27  the alternative pupil-teacher ratios, including, without

49-28  limitation, the:

49-29      (a) Number of additional classrooms needed; and

49-30      (b) Number of additional teachers needed.

49-31     3.  On or before February 15, 2005, each school district

49-32  that conducts a study of alternative pupil-teacher ratios

49-33  pursuant to this section shall submit a written report of its

49-34  findings concerning alternative pupil-teacher ratios to the:

49-35      (a) Director of the Legislative Counsel Bureau for

49-36  transmission to the 73rd Session of the Nevada Legislature;

49-37      (b) Legislative Bureau of Educational Accountability and

49-38  Program Evaluation; and

49-39      (c) State Board of Education.

49-40      Sec. 194.18.  1.  The money appropriated for class-size

49-41  reduction pursuant to sections 194.10 and 194.12 of this act:

49-42      (a) May be applied first to pupils considered most at risk

49-43  of failure.

49-44      (b) Must not be used to settle or arbitrate disputes

49-45  between a recognized organization representing employees of

50-1  a school district and the school district, or to settle any

50-2  negotiations.

50-3      (c) Must not be used to adjust the district-wide schedules

50-4  of salaries and benefits of the employees of a school district.

50-5      2.  The money appropriated for class-size reduction

50-6  pursuant to sections 194.10 and 194.12 of this act must not be

50-7  distributed to a school district unless that school district has:

50-8      (a) Filed with the Department of Education a plan for

50-9  achieving the required ratio set forth in NRS 388.700; and

50-10      (b) Demonstrated that, from resources of the school

50-11  district other than allocations received from the State

50-12  Distributive School Account for class-size reduction, a

50-13  sufficient number of classroom teachers have been employed

50-14  to maintain the average pupil-teacher ratio that existed for

50-15  each grade for grades 1, 2 and 3, in that school district for the

50-16  3 school years immediately preceding the start of the class-

50-17  size reduction program in the 1990-1991 school year. In

50-18  addition, if a school district uses the allocations received from

50-19  the State Distributive School Account for class-size reduction

50-20  to carry out an alternative class-size reduction program as set

50-21  forth in subsection 2 of section 194.14 of this act, a sufficient

50-22  number of teachers have been employed to maintain the

50-23  average pupil-teacher ratio that existed in each grade so

50-24  reduced, in that school district for the 3 years immediately

50-25  preceding the implementation of the alternative program.

50-26      Sec. 194.20. In no event may the alternative pupil-

50-27  teacher ratios authorized pursuant to subsection 2 of section

50-28  194.14 of this act be carried out beyond the 2003-2005

50-29  biennium unless the 73rd Session of the Nevada Legislature

50-30  determines that the alternative pupil-teacher ratios may be

50-31  carried out after June 30, 2005.

50-32      Sec. 194.22. Notwithstanding the provisions of section

50-33  1 of this act, the Department of Education, the Budget

50-34  Division of the Department of Administration and the Fiscal

50-35  Analysis Division of the Legislative Counsel Bureau shall

50-36  carry out the provisions of subsections 1 and 2 of that section

50-37  for Fiscal Year 2003-2004 as soon as practicable after the

50-38  effective date of that section.

50-39     Sec. 70.  Section 195 of Senate Bill No. 6 of the 20th Special

50-40  Session of the Nevada Legislature is hereby amended to read as

50-41  follows:

50-42      Sec. 195.   The provisions of:

50-43     1.  Section 173 of this act does not apply to any taxes

50-44  precollected pursuant to chapter 463 of NRS on or before the

50-45  effective date of that section.

51-1      2.  Sections 80, 82 and 83 of this act do not apply to any

51-2  taxes precollected pursuant to chapter 370 of NRS on or

51-3  before the effective dates of those sections.

51-4      3.  Sections 77, 78 and 172 of this act do not affect the

51-5  amount of any license fees or taxes due for any period ending

51-6  on or before July 31, 2003.

51-7      4.  For a licensed gaming establishment that is exempt

51-8  from the payment of the casino entertainment tax imposed by

51-9  NRS 463.401 before September 1, 2003, but is required to

51-10  pay that tax on and after that date, sections 174 and 175 of

51-11  this act apply to any taxable receipts that are collected

51-12  pursuant to those sections on and after September 1, 2003,

51-13  and before January 1, 2004.

51-14     5.  Sections 26 to 58, inclusive, of this act apply to any

51-15  taxable receipts that are collected pursuant to the provisions

51-16  of those sections on or after January 1, 2004.

51-17     6.  Section 144 of this act do not apply to any contracts

51-18  made before the effective date of that section.

51-19     Sec. 71.  Section 196 of Senate Bill No. 6 of the 20th Special

51-20  Session of the Nevada Legislature is hereby amended to read as

51-21  follows:

51-22      Sec. 196. The provisions of subsection 3 of section 189

51-23  of this act do not:

51-24     1.  Affect any rights, duties or liability of any person

51-25  relating to any taxes imposed pursuant to:

51-26      (a) Chapter 364A of NRS for any period ending before

51-27  January 1, 2004.

51-28      (b) NRS 463.401 before January 1, 2004.

51-29     2.  Apply to the administration, collection and

51-30  enforcement of any taxes imposed pursuant to:

51-31      (a) Chapter 364A of NRS for any period ending before

51-32  January 1, 2004.

51-33      (b) NRS 463.401 before January 1, 2004.

51-34     Sec. 72.  Section 196.3 of Senate Bill No. 6 of the 20th Special

51-35  Session of the Nevada Legislature is hereby amended to read as

51-36  follows:

51-37      Sec. 196.3.  The Legislative Committee on Taxation,

51-38  Public Revenue and Tax Policy established by the provisions

51-39  of section 128 of this act shall:

51-40     1.  Review and study:

51-41      (a) The impact, if any, that the imposition of the tax on

51-42  live entertainment imposed pursuant to section 36 of this act

51-43  has had on revenue received by the state and local

51-44  governments from special events conducted in this state.

52-1      (b) Whether promoters of special events are contracting

52-2  with entities in other states to hold the special events in those

52-3  other states as a result of the imposition of the tax.

52-4      (c) The loss of revenue, if any, from special events

52-5  resulting from the imposition of the tax.

52-6      (d) The feasibility and need for exempting such special

52-7  events from the tax.

52-8      (e) Standards and procedures that may be adopted for

52-9  determining whether special events should be exempt from

52-10  the tax and the qualifications for such an exemption.

52-11     2.  Submit a report of the results of its review and any

52-12  recommendations for legislation to the 73rd Session of the

52-13  Nevada Legislature.

52-14     Sec. 73.  Section 196.5 of Senate Bill No. 6 of the 20th Special

52-15  Session of the Nevada Legislature is hereby amended to read as

52-16  follows:

52-17      Sec. 196.5.  1.  The franchise tax imposed by section

52-18  24.38 of this act applies to any Nevada taxable income earned

52-19  by a financial institution on or after November 1, 2003.

52-20     2.  Notwithstanding the provisions of section 24.38 of

52-21  this act, the tax return and remittance of the tax required

52-22  pursuant to section 24.38 of this act for any taxable year

52-23  ending before November 1, 2004, is due on January 15, 2005.

52-24     3.  As used in this section:

52-25      (a) “Financial institution” has the meaning ascribed to it

52-26  in section 24.18 of this act.

52-27      (b) “Nevada taxable income” has the meaning ascribed to

52-28  it in section 24.22 of this act.

52-29      (c) “Taxable year” has the meaning ascribed to it in

52-30  section 24.24 of this act.

52-31     Sec. 74.  Section 198 of Senate Bill No 6 of the 20th Special

52-32  Session of the Nevada Legislature is hereby amended to read as

52-33  follows:

52-34      Sec. 198. 1.  This section and sections 60, 67, 69, 75,

52-35  75.3, 75.7, 76, 79 to 88, inclusive, 90 to 93, inclusive, 98,

52-36  101, 112, 114, 116, 125 to 132, inclusive, 134, 136 to 140,

52-37  inclusive, 142 to 165, inclusive, 168, 173, 178, 180, 184, 185,

52-38  186, 188 to 188.7, inclusive, 190 to 193, inclusive, 195, 196,

52-39  196.3 and 197 of this act and subsection 1 of section 189 of

52-40  this act become effective upon passage and approval.

52-41     2.  Sections 194, 194.10 and 194.14 to 194.22, inclusive,

52-42  of this act become effective upon passage and approval and

52-43  apply retroactively to July 1, 2003.

52-44     3.  Sections 77, 78, 172 and 177 of this act become

52-45  effective:

53-1      (a) Upon passage and approval for the purpose of

53-2  adopting regulations and performing any other preparatory

53-3  administrative tasks that are necessary to carry out the

53-4  provisions of this act; and

53-5      (b) On August 1, 2003, for all other purposes.

53-6      4.  Sections 174 and 175 of this act and subsection 2 of

53-7  section 189 of this act become effective:

53-8      (a) Upon passage and approval for the purpose of

53-9  adopting regulations and performing any other preparatory

53-10  administrative tasks that are necessary to carry out the

53-11  provisions of this act; and

53-12      (b) On September 1, 2003, for all other purposes.

53-13     5.  Sections 94 to 97, inclusive, 99, 100, 102 to 111,

53-14  inclusive, 166 and 167 of this act become effective:

53-15      (a) Upon passage and approval for the purpose of

53-16  adopting regulations and performing any other preparatory

53-17  administrative tasks that are necessary to carry out the

53-18  provisions of this act; and

53-19      (b) On October 1, 2003, for all other purposes.

53-20     6.  Sections 24.10 to 24.74, inclusive, 70, 71, 72, 73,

53-21  185.30 to 185.50, inclusive, 186.3, 186.5, 186.7 and 196.5 of

53-22  this act become effective:

53-23      (a) Upon passage and approval for the purpose of

53-24  adopting regulations and performing any other preparatory

53-25  administrative tasks that are necessary to carry out the

53-26  provisions of this act; and

53-27      (b) On November 1, 2003, for all other purposes.

53-28     7.  Sections 1 to 24, inclusive, 25 to 58, inclusive, 59, 61

53-29  to 66, inclusive, 68, 70.5, 71.5, 72.5, 73.5, 74, 89, 118 to 124,

53-30  inclusive, 133, 135, 141, 169, 170, 171, 176, 179, 181, 182

53-31  and 183 of this act and subsection 3 of section 189 of this act

53-32  become effective:

53-33      (a) Upon passage and approval for the purpose of

53-34  adopting regulations and performing any other preparatory

53-35  administrative tasks that are necessary to carry out the

53-36  provisions of this act; and

53-37      (b) On January 1, 2004, for all other purposes.

53-38     8.  Sections 186.9, 187 and 194.12 of this act become

53-39  effective on July 1, 2004.

53-40     9.  Sections 113, 115 and 117 of this act become

53-41  effective at 12:01 a.m. on October 1, 2029.

53-42      10.  Sections 126 to 131, inclusive, of this act expire by

53-43  limitation on June 30, 2005.

 

 

54-1      11.  Sections 112, 114 and 116 of this act expire by

54-2  limitation on September 30, 2029.

54-3      Sec. 75.  The basic support guarantee for school districts for

54-4  operating purposes for the 2003-2004 Fiscal Year is an estimated

54-5  weighted average of $4,295 per pupil. For each respective school

54-6  district, the basic support guarantee per pupil for the 2003-2004

54-7  Fiscal Year is:

 

54-8  Carson City. $4,923

54-9  Churchill County. $5,418

54-10  Clark County. $4,127

54-11  Douglas County. $4,541

54-12  Elko County. $5,307

54-13  Esmeralda County. $9,169

54-14  Eureka County. $3,495

54-15  Humboldt County. $5,362

54-16  Lander County. $4,836

54-17  Lincoln County. $7,943

54-18  Lyon County. $5,553

54-19  Mineral County. $6,012

54-20  Nye County. $5,561

54-21  Pershing County. $6,385

54-22  Storey County. $7,082

54-23  Washoe County. $4,161

54-24  White Pine County. $6,164

54-25     Sec. 76.  1.  The basic support guarantee for school districts

54-26  for operating purposes for the 2004-2005 Fiscal Year is an estimated

54-27  weighted average of $4,424 per pupil.

54-28     2.  On or before April 1, 2004, the Department of Taxation shall

54-29  provide a certified estimate of the assessed valuation for each school

54-30  district for the 2004-2005 Fiscal Year. The assessed valuation for

54-31  each school district must be that which is taxable for purposes of

54-32  providing revenue to school districts, including any assessed

54-33  valuation attributable to the net proceeds of minerals derived from

54-34  within the boundaries of the district.

54-35     3.   Pursuant to NRS 362.115, on or before April 25 of each

54-36  year, the Department of Taxation shall provide an estimate of the

54-37  net proceeds of minerals based upon statements required of mine

54-38  operators.

54-39     4.  For purposes of establishing the basic support guarantee, the

54-40  estimated basic support guarantees for each school district for the

54-41  2004-2005 Fiscal Year for operating purposes are:

 

 

 

55-1        Basic            Estimated

55-2    Support          Basic

55-3          Guarantee      Estimated  Support

55-4      Before      Ad Valorem      Guarantee

55-5  School District      Adjustment      Adjustment        as Adjusted

55-6  Carson City$4,462          $643       $5,105

55-7  Churchill County        $5,094          $514       $5,608

55-8  Clark County       $3,328          $921       $4,249

55-9  Douglas County       $3,196       $1,451       $4,647

55-10  Elko County       $5,004          $508       $5,512

55-11  Esmeralda County       $6,596       $2,987       $9,583

55-12  Eureka County    $(5,236)       $9,304       $4,068

55-13  Humboldt County       $5,006          $642       $5,648

55-14  Lander County        $3,741       $1,328       $5,069

55-15  Lincoln County        $7,519          $664       $8,183

55-16  Lyon County        $5,149          $593       $5,742

55-17  Mineral County        $5,792          $473       $6,265

55-18  Nye County        $4,888          $877       $5,765

55-19  Pershing County        $5,714          $949       $6,663

55-20  Storey County        $5,559       $1,848       $7,407

55-21  Washoe County        $3,393          $908       $4,301

55-22  White Pine County       $5,915          $482       $6,397

 

55-23     5.  The ad valorem adjustment may be made only to take into

55-24  account the difference in the assessed valuation and the estimated

55-25  enrollment of the school district between the amount estimated as of

55-26  April 1, 2003, and the amount estimated as of April 1, 2004, for the

55-27  2004-2005 Fiscal Year. Estimates of net proceeds of minerals

55-28  received from the Department of Taxation on or before April 25

55-29  pursuant to subsection 3 must be taken into consideration in

55-30  determining the adjustment.

55-31     6.  Upon receipt of the certified estimates of assessed valuations

55-32  as of April 1, 2004, from the Department of Taxation, the

55-33  Department of Education shall recalculate the amount of ad valorem

55-34  adjustment and the tentative basic support guarantee for operating

55-35  purposes for the 2004-2005 Fiscal Year by April 15, 2004. The final

55-36  basic support guarantee for each school district for the 2004-2005

55-37  Fiscal Year is the amount, which is recalculated for the 2004-2005

55-38  Fiscal Year pursuant to this section, taking into consideration

55-39  estimates of net proceeds of minerals received from the Department

55-40  of Taxation on or before April 25, 2004. The basic support

55-41  guarantee recalculated pursuant to this section must be calculated

55-42  before May 31, 2004.

55-43     Sec. 77.  1.  The basic support guarantee for each special

55-44  education program unit that is maintained and operated for at least 9

56-1  months of a school year is $31,811 in the 2003-2004 Fiscal Year

56-2  and $32,447 in the 2004-2005 Fiscal Year, except as limited by

56-3  subsection 2.

56-4      2.  The maximum number of units and amount of basic support

56-5  for special education program units within each of the school

56-6  districts, before any reallocation pursuant to NRS 387.1221, for the

56-7  Fiscal Years 2003-2004 and 2004-2005 are:

 

56-8    Allocation of Special Education Units

56-9       2003-20042004-2005

56-10  DISTRICTUnits  Amount      Units  Amount

56-11  Carson City    82$2,608,502      84$2,725,548

56-12  Churchill County           45$1,431,495      46$1,492,562

56-13  Clark County     1,594$50,706,734     1,661$53,894,467

56-14  Douglas County           64$2,035,904      65$2,109,055

56-15  Elko County           80$2,544,880      80$2,595,760

56-16  Esmeralda County2$63,622             2$64,894

56-17  Eureka County 4$127,244           4$129,788

56-18  Humboldt County            30$954,330         30$973,410

56-19  Lander County           12$381,732         12$389,364

56-20  Lincoln County           17$540,787         17$551,599

56-21  Lyon County            56$1,781,416      57$1,849,479

56-22  Mineral County           12$381,732         12$389,364

56-23  Nye County            47$1,495,117      50$1,622,350

56-24  Pershing County           14$445,354         14$454,258

56-25  Storey County 8$254,488           8$259,576

56-26  Washoe County         491$15,619,201  510$16,547,970

56-27  White Pine County           17$540,787         16$519,152

56-28  Subtotal     2,575$81,913,325     2,668$86,568,596

56-29  Reserved by State

56-30  Board of Education         40                 $1,272,440     40                 $1,297,880

56-31  TOTAL     2,615$83,185,765     2,708$87,866,476

 

56-32     3.  The State Board of Education shall reserve 40 special

56-33  education program units in each fiscal year of the 2003-2005

56-34  biennium, to be allocated to school districts by the State Board of

56-35  Education to meet additional needs that cannot be met by the

56-36  allocations provided in subsection 2 to school districts for that fiscal

56-37  year. In addition, charter schools in this state are authorized to apply

56-38  directly to the Department of Education for the reserved special

56-39  education program units, which may be allocated upon approval of

56-40  the State Board of Education.

56-41     4.  Notwithstanding the provisions of subsections 2 and 3, the

56-42  State Board of Education is authorized to spend from the State

56-43  Distributive School Account up to $181,067 in the Fiscal Year

57-1  2003-2004 for 5.69 special education program units and $190,877 in

57-2  the Fiscal Year 2004-2005 for 5.88 special education program units

57-3  for instructional programs incorporating educational technology for

57-4  gifted and talented pupils. Any school district may submit a written

57-5  application to the Department of Education requesting one or more

57-6  of the units for gifted and talented pupils. For each fiscal year of the

57-7  2003-2005 biennium, the Department will award the units for gifted

57-8  and talented pupils based on a review of applications received from

57-9  school districts.

57-10     Sec. 78.  1.  There is hereby appropriated from the State

57-11  General Fund to the State Distributive School Account in the State

57-12  General Fund created pursuant to NRS 387.030:

57-13  For the 2003-2004 Fiscal Year. $637,789,627

57-14  For the 2004-2005 Fiscal Year. $767,086,697

57-15     2.  The money appropriated by subsection 1 must be:

57-16     (a) Expended in accordance with NRS 353.150 to 353.245,

57-17  inclusive, concerning the allotment, transfer, work program and

57-18  budget; and

57-19     (b) Work-programmed for the 2 separate Fiscal Years 2003-

57-20  2004 and 2004-2005, as required by NRS 353.215. Work programs

57-21  may be revised with the approval of the Governor upon the

57-22  recommendation of the Chief of the Budget Division of the

57-23  Department of Administration.

57-24     3.  Transfers to and from allotments must be allowed and made

57-25  in accordance with NRS 353.215 to 353.225, inclusive, after

57-26  separate considerations of the merits of each request.

57-27     4.  The sums appropriated by subsection 1 are available for

57-28  either fiscal year or may be transferred to Fiscal Year 2002-2003.

57-29  Money may be transferred from one fiscal year to another with the

57-30  approval of the Governor upon the recommendation of the Chief of

57-31  the Budget Division of the Department of Administration. If funds

57-32  appropriated by subsection 1 are transferred to Fiscal Year 2002-

57-33  2003, any remaining funds in the State Distributive School Account

57-34  after all obligations have been met that are not subject to reversion

57-35  to the State General Fund must be transferred back to Fiscal Year

57-36  2003-2004. Any amount transferred back to Fiscal Year 2003-2004

57-37  must not exceed the amount originally transferred to Fiscal Year

57-38  2002-2003.

57-39     5.  Any remaining balance of the appropriation made by

57-40  subsection 1 for the 2003-2004 Fiscal Year must be transferred and

57-41  added to the money appropriated for the 2004-2005 Fiscal Year and

57-42  may be expended as that money is expended.

57-43     6.  Any remaining balance of the appropriation made by

57-44  subsection 1 for the 2004-2005 Fiscal Year, including any money

57-45  added thereto pursuant to the provisions of subsections 3 and 5,

58-1  must not be committed for expenditure after June 30, 2005, and

58-2  reverts to the State General Fund as soon as all payments of money

58-3  committed have been made.

58-4      Sec. 79.  1.  Expenditure of $203,448,548 by the Department

58-5  of Education from money in the State Distributive School Account

58-6  that was not appropriated from the State General Fund is hereby

58-7  authorized during the fiscal year beginning July 1, 2003.

58-8      2.  Expenditure of $142,024,404 by the Department of

58-9  Education from money in the State Distributive School Account that

58-10  was not appropriated from the State General Fund is hereby

58-11  authorized during the fiscal year beginning July 1, 2004.

58-12     3.  For purposes of accounting and reporting, the sums

58-13  authorized for expenditure by subsections 1 and 2 are considered to

58-14  be expended before any appropriation is made to the State

58-15  Distributive School Account from the State General Fund.

58-16     4.  The money authorized to be expended by subsections 1 and

58-17  2 must be expended in accordance with NRS 353.150 to 353.245,

58-18  inclusive, concerning the allotment, transfer, work program and

58-19  budget. Transfers to and from allotments must be allowed and made

58-20  in accordance with NRS 353.215 to 353.225, inclusive, after

58-21  separate consideration of the merits of each request.

58-22     5.  The Chief of the Budget Division of the Department of

58-23  Administration may, with the approval of the Governor, authorize

58-24  the augmentation of the amounts authorized for expenditure by the

58-25  Department of Education, in subsections 1 and 2, for the purpose of

58-26  meeting obligations of the State incurred under chapter 387 of NRS

58-27  with amounts from any other state agency, from any agency of local

58-28  government, from any agency of the Federal Government or from

58-29  any other source that he determines is in excess of the amount taken

58-30  into consideration by this act. The Chief of the Budget Division of

58-31  the Department of Administration shall reduce any authorization

58-32  whenever he determines that money to be received will be less than

58-33  the amount authorized in subsections 1 and 2.

58-34     Sec. 80.  During each of the Fiscal Years 2003-2004 and 2004-

58-35  2005, whenever the State Controller finds that current claims against

58-36  the State Distributive School Account in the State General Fund

58-37  exceed the amount available in the Account to pay those claims, he

58-38  may advance temporarily from the State General Fund to the State

58-39  Distributive School Account the amount required to pay the claims,

58-40  but not more than the amount expected to be received in the current

58-41  fiscal year from any source authorized for the State Distributive

58-42  School Account. No amount may be transferred unless requested by

58-43  the Chief of the Budget Division of the Department of

58-44  Administration.

59-1      Sec. 81.  The Department of Education is hereby authorized to

59-2  spend from the State Distributive School Account the sums of

59-3  $16,926,569 for the 2003-2004 Fiscal Year and $17,843,596 for the

59-4  2004-2005 Fiscal Year for the support of courses which are

59-5  approved by the Department of Education as meeting the course of

59-6  study for an adult standard high school diploma as approved by the

59-7  State Board of Education. In each fiscal year of the 2003-2005

59-8  biennium, the sum authorized must be allocated among the various

59-9  school districts in accordance with a plan or formula developed by

59-10  the Department of Education to ensure the money is distributed

59-11  equitably and in a manner that permits accounting for the

59-12  expenditures of school districts.

59-13     Sec. 82.  The Department of Education is hereby authorized to

59-14  provide from the State Distributive School Account the sum of

59-15  $50,000 to each of the 17 school districts in each fiscal year of the

59-16  2003-2005 biennium to support special counseling services for

59-17  elementary school pupils at risk of failure.

59-18     Sec. 83.  The amounts of the guarantees set forth in sections 75

59-19  and 76 of this act may be reduced to effectuate a reserve required

59-20  pursuant to NRS 353.225.

59-21     Sec. 84.  1.  The Department of Education shall transfer from

59-22  the State Distributive School Account to the school districts

59-23  specified in this section the following sums for Fiscal Years 2003-

59-24  2004 and 2004-2005:

 

59-25  School District     2003-2004     2004-2005

59-26  Clark County School District$4,532,532$4,552,361

59-27  Douglas County School District$1,146,374$1,175,848

59-28  Elko County School District$1,291,907$1,295,158

59-29  Washoe County School District$1,847,128$1,913,468

59-30  $8,817,941$8,936,835

 

59-31     2.  A school district that receives an allocation pursuant to

59-32  subsection 1 shall:

59-33     (a) Use the money to maintain and continue the operation of a

59-34  regional training program for the professional development of

59-35  teachers and administrators established by the school district

59-36  pursuant to NRS 391.512; and

59-37     (b) Use the money to maintain and continue the operation of the

59-38  Nevada Early Literacy Intervention Program through the regional

59-39  training program established pursuant to paragraph (a).

59-40     3.  Any remaining balance of the transfers made by subsection

59-41  1 for the 2003-2004 Fiscal Year must be added to the money

59-42  received by the school districts for the 2004-2005 Fiscal Year and

59-43  may be expended as that money is expended. Any remaining

60-1  balance of the transfers made by subsection 1 for the 2004-2005

60-2  Fiscal Year, including any money added from the transfer for the

60-3  previous fiscal year, must not be committed for expenditure after

60-4  June 30, 2005, and reverts to the State Distributive School Account

60-5  as soon as all payments of money committed have been made.

60-6      Sec. 85.  1.  The Legislative Bureau of Educational

60-7  Accountability and Program Evaluation is hereby authorized to

60-8  receive from the State Distributive School Account to spend for an

60-9  evaluation of the regional training programs for the professional

60-10  development of teachers and administrators established pursuant to

60-11  NRS 391.512:

60-12  For the Fiscal Year 2003-2004 . $100,000

60-13  For the Fiscal Year 2004-2005 . $100,000

60-14     2.  Any remaining balance of the sums authorized for

60-15  expenditure by subsection 1 for the 2003-2004 Fiscal Year must be

60-16  added to the money authorized for expenditure for the 2004-2005

60-17  Fiscal Year and may be expended as that money is expended. Any

60-18  remaining balance of the sums authorized for expenditure pursuant

60-19  to subsection 1 for the 2004-2005 Fiscal Year, including any money

60-20  added from the authorization for the previous fiscal year, must not

60-21  be committed for expenditure after June 30, 2005, and reverts to the

60-22  State Distributive School Account as soon as all payments of money

60-23  committed have been made.

60-24     Sec. 86.  1.  The Department of Education shall transfer from

60-25  the State Distributive School Account to the Statewide Council for

60-26  the Coordination of the Regional Training Programs created by NRS

60-27  391.516 the sum of $80,000 in each Fiscal Year 2003-2004 and

60-28  2004-2005 for additional training opportunities for educational

60-29  administrators in Nevada.

60-30     2.  The Statewide Council shall use the money:

60-31     (a) To support the goals of Nevada Project LEAD (Leadership

60-32  in Educational Administration Development), as established through

60-33  the Department of Educational Leadership in the College of

60-34  Education, located at the University of Nevada, Reno. In supporting

60-35  the goals of Nevada Project LEAD, the Statewide Council shall:

60-36         (1) Disseminate research-based knowledge related to

60-37  effective educational leadership behaviors and skills; and

60-38         (2) Develop, support and maintain on-going activities,

60-39  programs, training and networking opportunities.

60-40     (b) For purposes of providing additional training for educational

60-41  administrators, including, without limitation, paying:

60-42         (1) Travel expenses of administrators who attend the training

60-43  program;

60-44         (2) Travel and per-diem expenses for any consultants

60-45  contracted to provide additional training; and

61-1          (3) Any charges to obtain a conference room for the

61-2  provision of the additional training.

61-3      (c) To supplement and not replace the money that the school

61-4  district, Nevada Project LEAD or the regional training program

61-5  would otherwise expend for training for administrators as described

61-6  in this section.

61-7      3.  Any remaining balance of the transfers made by subsection

61-8  1 for the 2003-2004 Fiscal Year must be added to the money

61-9  received by the Statewide Council for the 2004-2005 Fiscal Year

61-10  and may be expended as that money is expended. Any remaining

61-11  balance of the transfers made by subsection 1 for the 2004-2005

61-12  Fiscal Year, including any money added from the transfer for the

61-13  previous fiscal year, must not be committed for expenditure after

61-14  June 30, 2005, and reverts to the State Distributive School Account

61-15  as soon as all payments of money committed have been made.

61-16     Sec. 87.  1.  The Department of Education shall transfer from

61-17  the State Distributive School Account the following sums for

61-18  remedial education programs for certain schools:

61-19  For the Fiscal Year 2003-2004. $5,179,109

61-20  For the Fiscal Year 2004-2005 . $5,013,874

61-21  The money allocated must be used to provide remedial education

61-22  programs that have been approved by the Department as being

61-23  effective in improving pupil achievement.

61-24     2.  A school may submit an application to the Department of

61-25  Education on or before November 1 of each fiscal year for

61-26  transmission to the State Board of Examiners for an allocation from

61-27  the amount authorized by subsection 1 if the school:

61-28     (a) Receives a designation as demonstrating need for

61-29  improvement.

61-30     (b) Did not receive a designation as demonstrating need for

61-31  improvement, but the school failed to meet adequate yearly

61-32  progress; or

61-33     (c) Did not receive a designation as demonstrating need for

61-34  improvement, but more than 40 percent of the pupils enrolled in the

61-35  school received an average score below the 26th percentile on all

61-36  four subjects tested pursuant to NRS 389.015.

61-37     3.  The Department of Education shall, in consultation with the

61-38  Budget Division of the Department of Administration and the

61-39  Legislative Bureau of Educational Accountability and Program

61-40  Evaluation, develop a form for such applications. The form must

61-41  include, without limitation, a notice that money received by a school

61-42  to implement or continue remedial education programs that have

61-43  been approved by the Department as being effective in improving

61-44  pupil achievement will be used to implement or continue the

62-1  programs in a manner that has been approved by the vendor of the

62-2  remedial program.

62-3      4.  Upon receipt of an application submitted pursuant to

62-4  subsection 2, the Department of Education shall review the

62-5  application jointly with the Budget Division of the Department of

62-6  Administration and the Legislative Bureau of Educational

62-7  Accountability and Program Evaluation. The Department

62-8  of Education shall transmit the application to the State Board of

62-9  Examiners with the recommendation of the Department of

62-10  Education concerning the allocation of money based upon each

62-11  application so received. The State Board of Examiners, or the Clerk

62-12  of the Board if authorized by the Board to act on its behalf, shall

62-13  consider each such application and, if it finds that an allocation

62-14  should be made, recommend the amount of the allocation to the

62-15  Interim Finance Committee. The Interim Finance Committee shall

62-16  consider each such recommendation, but is not bound to follow the

62-17  recommendation of the State Board of Examiners when determining

62-18  the allocation to be received by a school. In determining the amount

62-19  of the allocation, the State Board of Examiners and the Interim

62-20  Finance Committee shall consider:

62-21     (a) The total number of pupils enrolled in the school who failed

62-22  to meet adequate yearly progress;

62-23     (b) The percentage of pupils enrolled in the school who failed to

62-24  meet adequate yearly progress;

62-25     (c) The total number of subgroups of pupils, as prescribed by the

62-26  No Child Left Behind Act of 2001, 20 U.S.C. §§ 6301 et seq.,

62-27  enrolled in the school who failed to meet adequate yearly progress;

62-28  and

62-29     (d) The financial need of the particular school.

62-30     5.  In addition to the considerations set forth in subsection 4, in

62-31  determining whether to approve an application for a school that has

62-32  received an allocation in the immediately preceding year and in

62-33  determining the amount of the allocation for such a school, the State

62-34  Board of Examiners and the Interim Finance Committee shall

62-35  consider whether the school has carried out the program of remedial

62-36  study for which it received an allocation in a manner that has been

62-37  approved by the vendor of the remedial program and whether the

62-38  program has been successful, as measured by the academic

62-39  achievement of the pupils enrolled in the school on the examinations

62-40  administered pursuant to NRS 389.015 or 389.550 and any

62-41  assessments related to the program of remedial study.

62-42     6.  A school that receives an allocation of money pursuant to

62-43  this section shall use the money to:

62-44     (a) Pay the costs incurred by the school in providing the

62-45  program of remedial study required by NRS 385.389. The money

63-1  must first be applied to those pupils who failed to meet adequate

63-2  yearly progress.

63-3      (b) Pay for the salaries, training or other compensation of

63-4  teachers and other educational personnel to provide the program

63-5  of remedial study, instructional materials required for the program

63-6  of remedial study, equipment necessary to offer the program of

63-7  remedial study and all other additional operating costs attributable to

63-8  the program of remedial study, to the extent that the training,

63-9  materials and equipment are those that are approved by the vendor

63-10  of the remedial program.

63-11     (c) Supplement and not replace the money the school would

63-12  otherwise expend for programs of remedial study.

63-13     7.  Before a school amends a plan for expenditure of an

63-14  allocation of money received pursuant to this section, the school

63-15  district in which the school is located must submit the proposed

63-16  amendment to the Department of Education to receive approval

63-17  from the Department of Education, the Budget Division of the

63-18  Department of Administration and the Legislative Bureau of

63-19  Educational Accountability and Program Evaluation, or the Interim

63-20  Finance Committee.

63-21     8.  The sums authorized for expenditure in subsection 1 are

63-22  available for either fiscal year. Any remaining balance of those sums

63-23  must not be committed for expenditure after June 30, 2005, and

63-24  reverts to the State Distributive School Account as soon as all

63-25  payments of money committed have been made.

63-26     Sec. 88.  1.  The Department of Education shall transfer from

63-27  the State Distributive School Account the following sums for

63-28  supplemental services or tutoring for pupils in non-Title I schools

63-29  that failed to meet adequate yearly progress on the examinations

63-30  administered pursuant to NRS 389.550:

63-31  For the Fiscal Year 2003-2004. $1,000,000

63-32  For the Fiscal Year 2004-2005 . $1,500,000

63-33     2.  The supplemental services or tutoring for which money is

63-34  provided pursuant to this section must:

63-35     (a) Be conducted before or after school, on weekends, during the

63-36  summer or between sessions in schools with year-round school

63-37  calendars; and

63-38     (b) Be selected by the Department as an approved provider in

63-39  accordance with the No Child Left Behind Act of 2001, 20 U.S.C.

63-40  §§ 6301 et seq.

63-41     3.  A school may submit an application to the Department of

63-42  Education on or before November 1 of each fiscal year for

63-43  transmission to the State Board of Examiners for an allocation from

63-44  the amount authorized by subsection 1 if the school:

64-1      (a) Receives a designation as demonstrating need for

64-2  improvement; and

64-3      (b) Is not receiving money from Title I, 20 U.S.C. §§ 6301 et

64-4  seq.

64-5      4.  The Department of Education shall, in consultation with the

64-6  Budget Division of the Department of Administration and the

64-7  Legislative Bureau of Educational Accountability and Program

64-8  Evaluation, develop a form for such applications.

64-9      5.  Upon receipt of an application submitted pursuant to

64-10  subsection 3, the Department of Education shall review the

64-11  application jointly with the Budget Division of the Department of

64-12  Administration and the Legislative Bureau of Educational

64-13  Accountability and Program Evaluation. The Department of

64-14  Education shall transmit the application to the State Board

64-15  of Examiners with the recommendation of the Department of

64-16  Education concerning the allocation of money based upon each

64-17  application so received. The State Board of Examiners, or the Clerk

64-18  of the Board if authorized by the Board to act on its behalf, shall

64-19  consider each such application and, if it finds that an allocation

64-20  should be made, recommend the amount of the allocation to the

64-21  Interim Finance Committee. The Interim Finance Committee shall

64-22  consider each such recommendation, but is not bound to follow the

64-23  recommendation of the State Board of Examiners when determining

64-24  the allocation to be received by a school district.

64-25     6.  A school that receives an allocation of money pursuant to

64-26  this section shall use the money to:

64-27     (a) Provide supplemental services or tutoring that has been

64-28  selected and approved by the Department of Education.

64-29     (b) Pay the costs incurred by the school in providing the

64-30  supplemental services or tutoring. The money must be applied to

64-31  those pupils who failed to meet adequate yearly progress.

64-32     (c) Pay for the salaries, training or other compensation of

64-33  teachers and other educational personnel to provide the

64-34  supplemental services or tutoring, instructional materials required

64-35  for the program, equipment necessary to offer the program and all

64-36  other additional operating costs attributable to the program.

64-37     (d) Supplement and not replace the money the school district

64-38  would otherwise expend for supplemental services or tutoring.

64-39     7.  Before a school amends a plan for expenditure of an

64-40  allocation of money received pursuant to this section, the school

64-41  district in which the school is located must submit the proposed

64-42  amendment to the Department of Education to receive approval

64-43  from the Department of Education, the Budget Division of the

64-44  Department of Administration and the Legislative Bureau of

65-1  Educational Accountability and Program Evaluation, or the Interim

65-2  Finance Committee.

65-3      8.  The sums transferred pursuant to subsection 1 are available

65-4  for either fiscal year. Any remaining balance of those sums must not

65-5  be committed for expenditure after June 30, 2005, and reverts to the

65-6  State Distributive School Account as soon as all payments of money

65-7  committed have been made.

65-8      Sec. 89.  1.  The Department of Education shall transfer from

65-9  the State Distributive School Account the following sums for early

65-10  childhood education:

65-11  For the Fiscal Year 2003-2004. $2,896,583

65-12  For the Fiscal Year 2004-2005. $2,896,583

65-13     2.  Of the sums transferred pursuant to subsection 1, $301,000

65-14  in each fiscal year of the 2003-2005 biennium must be used for the

65-15  Classroom on Wheels Program.

65-16     3.  The remaining money transferred by subsection 1 must be

65-17  used by the Department of Education for competitive state grants to

65-18  school districts and community-based organizations for early

65-19  childhood education programs.

65-20     4.  To receive a grant of money pursuant to subsections 2 and 3,

65-21  school districts, community-based organizations and the Classroom

65-22  on Wheels Program must submit a comprehensive plan to the

65-23  Department of Education that includes, without limitation:

65-24     (a) A detailed description of the proposed early childhood

65-25  education program;

65-26     (b) A description of the manner in which the money will be

65-27  used, which must supplement and not replace the money that would

65-28  otherwise be expended for early childhood education programs; and

65-29     (c) A plan for the longitudinal evaluation of the program to

65-30  determine the effectiveness of the program on the academic

65-31  achievement of children who participate in the program.

65-32     5.  A school district, community-based organization or

65-33  Classroom on Wheels Program that receives a grant of money shall:

65-34     (a) Use the money to initiate or expand prekindergarten

65-35  education programs that meet the criteria set forth in the publication

65-36  of the Department of Education, entitled “August 2000 Public

65-37  Support for Prekindergarten Education For School Readiness in

65-38  Nevada.”

65-39     (b) Use the money to supplement and not replace the money that

65-40  the school district, community-based organization or Classroom on

65-41  Wheels Program would otherwise expend for early childhood

65-42  education programs, as described in this section.

65-43     (c) Use the money to pay for the salaries and other items directly

65-44  related to the instruction of pupils in the classroom.

66-1      (d) Submit a longitudinal evaluation of the program in

66-2  accordance with the plan submitted pursuant to paragraph (c) of

66-3  subsection 4.

66-4  The money must not be used to remodel classrooms or facilities or

66-5  for playground equipment.

66-6      6.  The Department of Education shall develop statewide

66-7  performance and outcome indicators to measure the effectiveness of

66-8  the early childhood education programs for which grants of money

66-9  were awarded pursuant to this section. The indicators must include,

66-10  without limitation:

66-11     (a) Longitudinal measures of the developmental progress of

66-12  children before and after their completion of the program;

66-13     (b) Longitudinal measures of parental involvement in the

66-14  program before and after completion of the program; and

66-15     (c) The percentage of participants who drop out of the program

66-16  before completion.

66-17     7.  The Department of Education shall review the evaluations of

66-18  the early childhood education programs submitted by each school

66-19  district, community-based organization and the Classroom on

66-20  Wheels Program pursuant to paragraph (d) of subsection 5 and

66-21  prepare a compilation of the evaluations for inclusion in the report

66-22  submitted pursuant to subsection 8.

66-23     8.  The Department of Education shall, on an annual basis,

66-24  provide a written report to the Governor, Legislative Committee on

66-25  Education and the Legislative Bureau of Educational Accountability

66-26  and Program Evaluation regarding the effectiveness of the early

66-27  childhood programs for which grants of money were received. The

66-28  report must include, without limitation:

66-29     (a) The number of grants awarded;

66-30     (b) An identification of each school district, community-based

66-31  organization and the Classroom on Wheels Program that received a

66-32  grant of money and the amount of each grant awarded;

66-33     (c) For each school district, community based-organization and

66-34  the Classroom on Wheels Program that received a grant of money:

66-35         (1) The number of children who received services through a

66-36  program funded by the grant for each year that the program received

66-37  funding from the State for early childhood programs; and

66-38         (2) The average per child expenditure for the program for

66-39  each year the program received funding from the State for early

66-40  childhood programs;

66-41     (d) A compilation of the evaluations reviewed pursuant to

66-42  subsection 7 that includes, without limitation:

66-43         (1) A longitudinal comparison of the data showing the

66-44  effectiveness of the different programs; and

67-1          (2)  A description of the programs in this state that are the

67-2  most effective; and

67-3      (e) Any recommendations for legislation.

67-4      9.  Any balance of the sums transferred pursuant to subsection 1

67-5  remaining at the end of the respective fiscal years must not be

67-6  committed for expenditure after June 30 of the respective fiscal

67-7  years and reverts to the State Distributive School Account as soon as

67-8  all payments of money committed have been made.

67-9      Sec. 90.  1.  The Department of Education shall transfer from

67-10  the State Distributive School Account the following sums to

67-11  purchase one-fifth of a year of service for certain teachers in

67-12  accordance with NRS 391.165:

67-13  For the Fiscal Year 2003-2004. $2,689,206

67-14  For the Fiscal Year 2004-2005. $7,045,056

67-15     2.  The Department of Education shall distribute the money

67-16  appropriated by subsection 1 to the school districts to assist the

67-17  school districts with paying for the retirement credit for certain

67-18  teachers in accordance with NRS 391.165. The amount of money

67-19  distributed to each school district must be proportionate to the total

67-20  costs of paying for the retirement credit pursuant to NRS 391.165

67-21  for each fiscal year. If insufficient money is available from the

67-22  appropriation to pay the total costs necessary to pay the retirement

67-23  credit for each fiscal year, the school district shall pay the difference

67-24  to comply with NRS 391.165.

67-25     3.  Any balance of the sums appropriated by subsection 1

67-26  remaining at the end of the respective fiscal years must not be

67-27  committed for expenditure after June 30 of the respective fiscal

67-28  years and reverts to the State General Fund as soon as all payments

67-29  of money committed have been made.

67-30     Sec. 91.  1.  The Department of Education shall transfer from

67-31  the State Distributive School Account the following sum to

67-32  purchase one-fifth of a year of service for certain licensed

67-33  educational personnel in accordance with NRS 391.165:

67-34  For the Fiscal Year 2004-2005. $5,732,643

67-35     2.  The Department of Education shall distribute the money

67-36  appropriated by subsection 1 to the school districts to assist the

67-37  school districts with paying for the retirement credit for certain

67-38  licensed educational personnel in accordance with NRS 391.165.

67-39  The amount of money distributed to each school district must be

67-40  proportionate to the total costs of paying for the retirement credit

67-41  pursuant to NRS 391.165 for each fiscal year. If insufficient money

67-42  is available to pay the total costs necessary to pay the retirement

67-43  credit for each fiscal year, the school district shall pay the difference

67-44  to comply with NRS 391.165.

68-1      3.  Any remaining balance of the appropriation made by

68-2  subsection 1 must not be committed for expenditure after June 30,

68-3  2005, and reverts to the State General Fund as soon as all payments

68-4  of money committed have been made.

68-5      Sec. 92.  Of the amounts included in the basic support

68-6  guarantee amounts enumerated in sections 75 and 76 of this act,

68-7  $64,425,447 for Fiscal Year 2003-2004 and $66,721,434 for Fiscal

68-8  Year 2004-2005 must be expended for the purchase of textbooks,

68-9  instructional supplies and instructional hardware as prescribed in

68-10  section 1 of this act.

68-11     Sec. 93.  All funding remaining in the Fund for School

68-12  Improvement at the close of Fiscal Year 2002-2003 shall be

68-13  transferred to the budget for the State Distributive School Account

68-14  and shall be authorized for expenditure in that account.

68-15     Sec. 94.  The sums appropriated or authorized in sections 84 to

68-16  91, inclusive, of this act:

68-17     1.  Must be accounted for separately from any other money

68-18  received by the school districts of this state and used only for the

68-19  purposes specified in the applicable section of this act.

68-20     2.  May not be used to settle or arbitrate disputes between a

68-21  recognized organization representing employees of a school district

68-22  and the school district, or to settle any negotiations.

68-23     3.  May not be used to adjust the district-wide schedules of

68-24  salaries and benefits of the employees of a school district.

68-25     Sec. 95.  1.  The Department of Education shall transfer from

68-26  the State Distributive School Account the following sums for

68-27  special transportation costs to school districts:

68-28  For the 2003-2004 school year. $47,715

68-29  For the 2004-2005 school year. $47,715

68-30     2.  Pursuant to NRS 392.015, the Department of Education shall

68-31  use the money transferred in subsection 1 to reimburse school

68-32  districts for the additional costs of transportation for any pupil to a

68-33  school outside the school district in which his residence is located.

68-34     Sec. 96.  There is hereby appropriated from the State General

68-35  Fund to the State Distributive School Account created by NRS

68-36  387.030 in the State General Fund the sum of $3,152,559 for an

68-37  unanticipated shortfall in money in Fiscal Year 2002-2003. This

68-38  appropriation is supplemental to that made by section 4 of chapter

68-39  565, Statutes of Nevada 2001, at page 2832 and to that made

68-40  pursuant to Assembly Bill 253 of the 72nd Legislative Session.

68-41     Sec. 97.  Each school district shall expend the revenue made

68-42  available through this act, as well as other revenue from state, local

68-43  and federal sources, in a manner that is consistent with NRS

68-44  288.150 and that is designed to attain the goals of the Legislature

68-45  regarding educational reform in this state, especially with regard to

69-1  assisting pupils in need of remediation and pupils who are not

69-2  proficient in the English language. Materials and supplies for

69-3  classrooms are subject to negotiation by employers with recognized

69-4  employee organizations.

69-5      Sec. 98.  1.  This section and sections 93, 96 and 97 of this act

69-6  become effective upon passage and approval and apply retroactively

69-7  to June 30, 2003.

69-8      2.  Sections 1 to 4, inclusive, 75 to 92, inclusive, and 94 and 95

69-9  of this act become effective on July 1, 2003.

69-10     3.  Sections 6 to 74, inclusive, become effective on July 17,

69-11  2003, only if Senate Bill No. 6 of this session is signed by the

69-12  Governor and becomes effective after that date.

69-13     4.  Section 5 of this act becomes effective on July 1, 2004.

 

69-14  H