Senate Bill No. 471–Committee on Government Affairs

(On Behalf of Legislative Committee to Study the Distribution Among Local Governments of Revenue
From State and Local Taxes)

March 18, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing legislative measures which require local governments to establish, provide or increase programs or services. (BDR 17-980)

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 governments; requiring a legislative measure to include on its face a disclosure concerning unfunded mandates under certain circumstances; placing a monetary limitation on the programs and services for which a specified source for additional revenue must be authorized; 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 218 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 If any provision contained in a legislative measure will have the effect

1-4 of requiring one or more local governments to establish, provide or

1-5 increase a program or service which is estimated to cost in excess of

1-6 $2,000 per local government and a specified source for the additional

1-7 revenue to pay the expense is not authorized by a specific statute, the face

1-8 of the measure must indicate that the measure contains an unfunded

1-9 mandate.

1-10 Sec. 2. NRS 354.599 is hereby amended to read as follows:

1-11 354.599 1. If the legislature directs one or more local governments to

1-12 [establish] :

2-1 (a) Establish a program or provide a service [, or to increase] ; or

2-2 (b) Increase a program or service already established which requires

2-3 additional funding,

2-4 and the expense required to be paid by each local government to

2-5 establish, provide or increase the program or service is $2,000 or more, a

2-6 specified source for the additional revenue to pay the expense must be

2-7 authorized by a specific statute. The additional revenue may only be used

2-8 to pay expenses directly related to the program or service. If a local

2-9 government has money from any other source available to pay such

2-10 expenses, that money must be applied to the expenses before any money

2-11 from the revenue source specified by statute.

2-12 2. In any year in which the legislature by law increases or decreases the

2-13 revenues of a local government, and that increase or decrease was not

2-14 included or anticipated in the local government’s final budget as adopted

2-15 pursuant to NRS 354.598, the governing body of any such local

2-16 government may, before August 15 of the budget year, file an amended

2-17 budget with the department of taxation increasing or decreasing its

2-18 anticipated revenues and expenditures from that contained in its final

2-19 budget to the extent of the actual increase or decrease of revenues resulting

2-20 from the legislative action.

2-21 3. In any year in which the legislature enacts a law requiring an

2-22 increase or decrease in expenditures of a local government, which was not

2-23 anticipated or included in its final budget as adopted pursuant to NRS

2-24 354.598, the governing body of any such local government may, before

2-25 August 15 of the budget year, file an amended budget with the department

2-26 of taxation providing for an increase or decrease in expenditures from that

2-27 contained in its final budget to the extent of the actual amount made

2-28 necessary by the legislative action.

2-29 4. The amended budget, as approved by the department of taxation, is

2-30 the budget of the local government for the current fiscal year.

2-31 Sec. 3. This act becomes effective upon passage and approval.

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