EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 218 of NRS is hereby amended by adding thereto

1-11 future state revenues.

2-1 Sec. 2. 1. There is hereby created a task force for financial analysis

2-2 and planning consisting of 13 members.

2-3 2. Five members of the task force must be appointed as follows:

2-4 (a) One member appointed by the speaker of the assembly;

2-5 (b) One member appointed by the majority leader of the senate; and

2-6 (c) Three members appointed by the governor.

2-7 The members appointed pursuant to this subsection must not be elected

2-8 officers, state officers or employees of this state or any political

2-9 subdivision of this state, including, without limitation, an institution of

2-10 higher education that receives public money.

2-11 3. In addition to the members appointed pursuant to subsection 2, the

2-12 task force consists of:

2-13 (a) The chief of the budget division of the department of administration

2-14 or his designee;

2-15 (b) The chief of the bureau of research and analysis of the department

2-16 of employment, training and rehabilitation, or his designee, or, if that

2-17 position ceases to exist, the position deemed by the director of the

2-18 department of employment, training and rehabilitation to be the equivalent

2-19 of that position;

2-20 (c) The executive director of the department of taxation or his designee;

2-21 (d) The superintendent of public instruction or his designee;

2-22 (e) The state director of the bureau of business and economic research

2-23 of the University of Nevada, Reno, or his designee;

2-24 (f) The director of the center for business and economic research of the

2-25 University of Nevada, Las Vegas, or his designee;

2-26 (g) An employee of a county in Nevada, appointed by the Nevada

2-27 Association of Counties; and

2-28 (h) An employee of a city in Nevada, appointed by the Nevada League

2-29 of Cities.

2-30 4. Each of the members who is appointed to the task force pursuant to

2-31 subsection 2 and paragraphs (g) and (h) of subsection 3 must have

2-32 expertise and demonstrated ability in the field of economics, taxation,

2-33 demography or urban planning or another field that is necessary for

2-34 economic planning and forecasting.

2-35 5. The members who are appointed pursuant to subsection 2 shall

2-36 select from among themselves a person to serve as chairman of the task

2-37 force.

2-38 6. Each member of the task force who is appointed pursuant to

2-39 subsection 2 is entitled to receive a salary of $80 for each day or portion of

2-40 a day during which he attends a meeting of the task force.

2-41 7. Each member of the task force is entitled to receive the per diem

2-42 allowance and travel expenses provided for state officers and employees

2-43 generally for each day or portion of a day during which he attends a

3-1 meeting of the task force or is otherwise engaged in the business of the

3-2 task force.

3-3 8. The compensation, per diem allowances and travel expenses of the

3-4 members of the task force must be paid from the legislative fund.

3-5 9. The office of financial analysis and planning created pursuant to

3-6 section 1 of this act shall provide technical expertise and administrative

3-7 support to the task force.

3-8 Sec. 3. 1. The task force for financial analysis and planning shall

3-9 develop a process for the preparation and periodic update of long-term

3-10 forecasts of and recommendations concerning future state revenues for use

3-11 in planning and budgeting state programs. The long-term forecasts must

3-12 include periods of 6 years and 10 years. The process developed by the task

3-13 force must provide for, without limitation, the compilation and periodic

3-14 update of reports that include:

3-15 (a) Economic and demographic trends and forecasts at the national,

3-16 regional, state and local levels;

3-17 (b) The sources of revenue in this state, including, without limitation, an

3-18 analysis of the elements of this state’s revenue structure that may be

3-19 vulnerable or unreliable in the long-term;

3-20 (c) Forecasts and projections of the needs of state and local agencies

3-21 that provide human services and services relating to public education,

3-22 criminal justice and infrastructure;

3-23 (d) An analysis of revenues and expenditures to determine whether

3-24 long-term growth in revenue may reasonably be expected to meet the

3-25 demands of expenditures; and

3-26 (e) An analysis of the feasibility and desirability of using alternative

3-27 procedures for the review and approval of budgets and expenditures of

3-28 departments, institutions and agencies of the state government, including,

3-29 without limitation, the feasibility and desirability of adopting a system of

3-30 performance-based budgets.

3-31 2. In carrying out its duties, the task force shall:

3-32 (a) Use estimates and forecasts prepared by the demographer who is

3-33 employed pursuant to NRS 360.283;

3-34 (b) Use reports, projections of economic indicators and estimates of

3-35 future state revenues made by the economic forum;

3-36 (c) Use any other official forecasts, estimates and publications prepared

3-37 by agencies of this state or political subdivisions of this state and

3-38 institutions of higher education; and

3-39 (d) Solicit recommendations and information from the budget division

3-40 of the department of administration, agencies and officers of this state,

3-41 local governments, other states, national organizations, private

3-42 organizations and the general public.

3-43 3. In carrying out its duties, the task force may:

4-1 (a) Consider any other information, including, without limitation,

4-2 information prepared by the office of financial analysis and planning

4-3 created pursuant to section 1 of this act.

4-4 (b) Request information from an agency of this state. The task force

4-5 may direct the office of financial analysis and planning to make the request

4-6 on its behalf. An agency that receives a reasonable request for information

4-7 shall comply with the request as soon as is reasonably practicable after

4-8 receipt of the request.

4-9 Sec. 4. On or before September 15, 2000, the task force for financial

4-10 analysis and planning shall submit a written report to the director of the

4-11 legislative counsel bureau for immediate transmission to the members of

4-12 the 70th regular session of the legislature. The report must include:

4-13 1. A summary of the progress of the task force in developing a process

4-14 for the preparation and periodic update of long-term forecasts and

4-15 recommendations in accordance with subsection 1 of section 3 of this act.

4-16 2. Recommendations for legislation concerning the appropriate

4-17 composition and duties of a permanent committee to prepare long-term

4-18 forecasts of future state revenues and otherwise continue the preliminary

4-19 work done by the task force. The recommendations must specifically

4-20 address the appropriate number, qualifications and terms of the members

4-21 of the permanent committee.

4-22 3. Recommendations for legislation concerning the composition and

4-23 prescription of duties for the office of financial analysis and planning in

4-24 relation to the continuing work on these issues.

4-25 4. Any other recommendations for related legislation.

4-26 Sec. 5. On or before September 1, 1999, the speaker of the assembly,

4-27 the majority leader of the senate and the governor shall make appointments

4-28 to the task force for financial analysis and planning in accordance with

4-29 subsection 2 of section 2 of this act. Members appointed to the task force

4-30 remain eligible for appointment to a permanent committee to prepare long-

4-31 term forecasts of future state revenues.

4-32 Sec. 6. 1. This act becomes effective on July 1, 1999.

4-33 2. Sections 2, 3 and 4 of this act expire by limitation on June 30, 2001.