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. NRS 354.6115 is hereby amended to read as follows:

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

1-14 expended by the local government.

2-1 4. If the board of trustees of a school district in a county whose

2-2 population is less than 100,000 has established such a fund, the balance

2-3 in the fund must not exceed 30 percent of the expenditures from the

2-4 general fund for the previous fiscal year, excluding any federal money

2-5 expended by the local government, or $2,000,000, whichever is less. In no

2-6 case may the balance in the fund be increased annually by an amount

2-7 that exceeds 10 percent of the expenditures from the general fund for the

2-8 previous fiscal year, excluding any federal money expended by the local

2-9 government.

2-10 Sec. 2. NRS 354.6117 is hereby amended to read as follows:

2-11 354.6117 1. Except as otherwise provided in [subsection 2,]

2-33 forth in subsection 1.

2-34 Sec. 3. Section 2 of Senate Bill No. 194 of this session is hereby

2-35 amended to read as follows:

2-36 Sec. 2. NRS 354.6115 is hereby amended to read as follows:

2-37 354.6115 1. The governing body of a local government may,

2-38 by resolution, establish a fund to stabilize the operation of the local

2-39 government [.] and mitigate the effects of natural disasters.

2-40 2. The money in the fund must be used only [if] :

2-41 (a) If the total actual revenue of the local government falls short

2-42 of the total anticipated revenue in the general fund for the fiscal

2-43 year in which the local government uses that money [.] ; or

3-1 (b) To pay expenses incurred by the local government to

3-2 mitigate the effects of a natural disaster.

3-3 The money in the fund at the end of the fiscal year may not revert to

3-4 any other fund or be a surplus for any purpose other than [the] a

3-5 purpose specified in this subsection.

3-6 3. The money in the fund may not be used to pay expenses

3-7 incurred to mitigate the effects of a natural disaster until the

3-8 governing body of the local government issues a formal

3-9 declaration that a natural disaster exists. The governing body

3-10 shall not make such a declaration unless a natural disaster is

3-11 occurring or has occurred. Upon the issuance of such a

3-12 declaration, the money in the fund may be used for the payment

3-13 of the following expenses incurred by the local government as a

3-14 result of the natural disaster:

3-15 (a) The repair or replacement of roads, streets, bridges, water

3-16 control facilities, public buildings, public utilities, recreational

3-17 facilities and parks owned by the local government and damaged

3-18 by the natural disaster;

3-19 (b) Any emergency measures undertaken to save lives, protect

3-20 public health and safety or protect property within the jurisdiction

3-21 of the local government;

3-22 (c) The removal of debris from publicly or privately owned

3-23 land and waterways within the jurisdiction of the local

3-24 government that was undertaken because of the natural disaster;

3-25 (d) Expenses incurred by the local government for any

3-26 overtime worked by an employee of the local government because

3-27 of the natural disaster or any other extraordinary expenses

3-28 incurred by the local government because of the natural disaster;

3-29 and

3-30 (e) The payment of any grant match the local government

3-31 must provide to obtain a grant from a federal disaster assistance

3-32 agency for an eligible project to repair damage caused by the

3-33 natural disaster within the jurisdiction of the local government.

3-34 4. Except as otherwise provided in subsection [4,] 5, the

3-35 balance in the fund must not exceed 10 percent of the expenditures

3-36 from the general fund for the previous fiscal year, excluding any

3-37 federal funds expended by the local government.

3-38 [4.] 5. If the board of trustees of a school district in a county

3-39 whose population is less than 100,000 has established such a fund,

3-40 the balance in the fund must not exceed 30 percent of the

3-41 expenditures from the general fund for the previous fiscal year,

3-42 excluding any federal money expended by the local government, or

3-43 $2,000,000, whichever is less. In no case may the balance in the

4-1 fund be increased annually by an amount that exceeds 10 percent of

4-2 the expenditures from the general fund for the previous fiscal year,

4-3 excluding any federal money expended by the local government.

4-4 6. The annual budget and audit report of the local

4-5 government prepared pursuant to NRS 354.624 must specifically

4-6 identify the fund and:

4-7 (a) Indicate in detail the manner in which money in the fund

4-8 was expended during the previous fiscal year;

4-9 (b) Specify the amount of money, if any, that will be deposited

4-10 in the fund for the next fiscal year; and

4-11 (c) Identify any planned accumulation of the money in the

4-12 fund.

4-13 The audit report must include a statement by the auditor whether

4-14 the local government has complied with the provisions of this

4-15 subsection.

4-16 7. As used in this section:

4-17 (a) "Grant match" has the meaning ascribed to it in NRS

4-18 353.2725.

4-19 (b) "Natural disaster" means a fire, flood, earthquake,

4-20 drought or any other occurrence that:

4-21 (1) Results in widespread or severe damage to property or

4-22 injury to or the death of persons within the jurisdiction of the

4-23 local government; and

4-24 (2) As determined by the governing body of the local

4-25 government, requires immediate action to protect the health,

4-26 safety and welfare of persons residing within the jurisdiction of

4-27 the local government.

4-28 Sec. 4. Section 3 of Senate Bill No. 194 of this session is hereby

4-29 repealed.

4-30 Sec. 5. This act becomes effective upon passage and approval.