Senate Bill No. 194–Senators Rawson, Amodei, James, McGinness, O’Donnell, Porter and Titus

February 16, 1999

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Joint Sponsors: Assemblymen Cegavske, Goldwater,
Manendo and Tiffany

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Referred to Committee on Government Affairs

 

SUMMARY—Extends use of fund to stabilize operation of local government. (BDR 31-83)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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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).

 

AN ACT relating to local financial administration; extending the use of a fund to stabilize the operation of a local government to include mitigation of the effects of a natural disaster; 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. NRS 353.2755 is hereby amended to read as follows:

1-2 353.2755 1. A state agency or local government may submit a

1-3 request to the state board of examiners for a grant or loan from the fund as

1-4 provided in NRS 353.2705 to 353.2771, inclusive, if:

1-5 (a) The agency or local government finds that, because of a disaster, it is

1-6 unable to pay for an expense or grant match specified in NRS 353.274,

1-7 353.2745 or 353.2751 from money appropriated or otherwise available to

1-8 the agency or local government; and

1-9 (b) The request has been approved by the chief administrative officer of

1-10 the state agency or the governing body of the local government.

1-11 2. A request for a grant or loan submitted pursuant to subsection 1

1-12 must include:

1-13 (a) A statement setting forth the amount of money requested by the state

1-14 agency or local government;

2-1 (b) An assessment of the need of the state agency or local government

2-2 for the money requested; [and]

2-3 (c) If the request is submitted by a local government that has

2-4 established a fund pursuant to NRS 354.6115 to mitigate the effects of a

2-5 natural disaster, a statement of the amount of money that is available in

2-6 that fund, if any, for the payment of expenses incurred by the local

2-7 government as a result of a disaster; and

2-8 (d) A determination of the type, value and amount of resources the state

2-9 agency or local government may be required to provide as a condition for

2-10 the receipt of a grant or loan from the fund.

2-11 3. Upon the receipt of a request for a grant or loan submitted pursuant

2-12 to subsection 1, the state board of examiners:

2-13 (a) Shall consider the request; and

2-14 (b) May require any additional information that it determines is

2-15 necessary to make a recommendation.

2-16 4. If the state board of examiners finds that a grant or loan is

2-17 appropriate, it shall include in its recommendation to the interim finance

2-18 committee the proposed amount of the grant or loan. If the state board of

2-19 examiners recommends a loan for a local government, it shall include the

2-20 information required pursuant to subsection 1 of NRS 353.2765. If the state

2-21 board of examiners finds that a grant or loan is not appropriate, it shall

2-22 include in its recommendation the reason for its determination.

2-23 5. The provisions of this section do not prohibit a state agency or local

2-24 government from submitting more than one request for a grant or loan from

2-25 the fund.

2-26 6. As used in this section, the term "natural disaster" has the

2-27 meaning ascribed to it in NRS 354.6115.

2-28 Sec. 2. NRS 354.6115 is hereby amended to read as follows:

2-29 354.6115 1. The governing body of a local government may, by

2-30 resolution, establish a fund to stabilize the operation of the local

2-31 government [.] and mitigate the effects of natural disasters.

2-32 2. The money in the fund must be used only [if] :

2-33 (a) If the total actual revenue of the local government falls short of the

2-34 total anticipated revenue in the general fund for the fiscal year in which the

2-35 local government uses that money [.] ; or

2-36 (b) To pay expenses incurred by the local government to mitigate the

2-37 effects of a natural disaster.

2-38 The money in the fund at the end of the fiscal year may not revert to any

2-39 other fund or be a surplus for any purpose other than [the] a purpose

2-40 specified in this subsection.

2-41 3. The money in the fund may not be used to pay expenses incurred

2-42 to mitigate the effects of a natural disaster until the governing body of

2-43 the local government issues a formal declaration that a natural disaster

3-1 exists. The governing body shall not make such a declaration unless a

3-2 natural disaster is occurring or has occurred. Upon the issuance of such

3-3 a declaration, the money in the fund may be used for the payment of the

3-4 following expenses incurred by the local government as a result of the

3-5 natural disaster:

3-6 (a) The repair or replacement of roads, streets, bridges, water control

3-7 facilities, public buildings, public utilities, recreational facilities and

3-8 parks owned by the local government and damaged by the natural

3-9 disaster;

3-10 (b) Any emergency measures undertaken to save lives, protect public

3-11 health and safety or protect property within the jurisdiction of the local

3-12 government;

3-13 (c) The removal of debris from publicly or privately owned land and

3-14 waterways within the jurisdiction of the local government that was

3-15 undertaken because of the natural disaster;

3-16 (d) Expenses incurred by the local government for any overtime

3-17 worked by an employee of the local government because of the natural

3-18 disaster or any other extraordinary expenses incurred by the local

3-19 government because of the natural disaster; and

3-20 (e) The payment of any grant match the local government must

3-21 provide to obtain a grant from a federal disaster assistance agency for an

3-22 eligible project to repair damage caused by the natural disaster within the

3-23 jurisdiction of the local government.

3-24 4. The balance in the fund must not exceed 10 percent of the

3-25 expenditures from the general fund for the previous fiscal year, excluding

3-26 any federal funds expended by the local government.

3-27 5. The annual budget and audit report of the local government

3-28 prepared pursuant to NRS 354.624 must specifically identify the fund

3-29 and:

3-30 (a) Indicate in detail the manner in which money in the fund was

3-31 expended during the previous fiscal year;

3-32 (b) Specify the amount of money, if any, that will be deposited in the

3-33 fund for the next fiscal year; and

3-34 (c) Identify any planned accumulation of the money in the fund.

3-35 The audit report must include a statement by the auditor whether the

3-36 local government has complied with the provisions of this subsection.

3-37 6. As used in this section:

3-38 (a) "Grant match" has the meaning ascribed to it in NRS 353.2725.

3-39 (b) "Natural disaster" means a fire, flood, earthquake, drought or any

3-40 other occurrence that:

3-41 (1) Results in widespread or severe damage to property or injury to

3-42 or the death of persons within the jurisdiction of the local government;

3-43 and

4-1 (2) As determined by the governing body of the local government,

4-2 requires immediate action to protect the health, safety and welfare of

4-3 persons residing within the jurisdiction of the local government.

4-4 Sec. 3. NRS 354.6117 is hereby amended to read as follows:

4-5 354.6117 1. Except as otherwise provided in subsection 2, the total

4-6 amount of money which may be transferred in a fiscal year from the general

4-7 fund of a local government to the funds established pursuant to NRS

4-8 354.611, 354.6113 and 354.6115 must not exceed 10 percent of the total

4-9 amount of the budgeted expenditures of the general fund, plus any money

4-10 transferred from the general fund, other than the money transferred to those

4-11 funds, for that fiscal year.

4-12 2. Any money that a local government, pursuant to NRS 354.6116,

4-13 deposits in or transfers to one or more of the funds established by the local

4-14 government pursuant to NRS 354.611, 354.6113 or 354.6115:

4-15 (a) Is not subject to the limitation on the amount of money that a local

4-16 government may transfer to those funds pursuant to subsection 1.

4-17 (b) Must not be included in the determination of the total amount of

4-18 money transferred to those funds for the purposes of the limitation set forth

4-19 in subsection 1.

4-20 Sec. 4. This act becomes effective on July 1, 1999.

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