Senate Bill No. 317–Committee on Government Affairs

 

(On Behalf of Nevada League of Cities and Municipalities)

 

March 12, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing local government finance. (BDR 31‑353)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to local financial administration; revising provisions governing local government finance to comply with current generally accepted accounting and auditing standards; providing a procedure for the augmentation of budgets of local governments; requiring the department of taxation to create certain forms; requiring the state treasurer to withhold distributions from the local government tax distribution account from local governments under certain circumstances; 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 354 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 to 6, inclusive of this act.

1-3    Sec. 2.  “Fiduciary fund” means a fund used to report assets held in

1-4  a trustee or agency capacity for others and therefore cannot be used to

1-5  support the programs of the local government.

1-6    Sec. 3.  “Proprietary fund” means an internal service fund or

1-7  enterprise fund.

1-8    Sec. 4.  1.  The committee on local government finance, consisting

1-9  of 11 members, is hereby created.

1-10    2.  The following associations shall each appoint three members to

1-11  serve on the committee:

1-12    (a) Nevada League of Cities;

1-13    (b) Nevada Association of County Commissioners; and

1-14    (c) Nevada School Trustees Association.

1-15    3.  The Nevada state board of accountancy shall appoint two

1-16  members to serve on the committee.

1-17    4.  Each appointment must be for a term of 3 years.

2-1    5.  All vacancies must be filled as soon as practicable by the

2-2  appointing authority of the person who vacated the seat.

2-3    6.  If any of the associations listed in subsection 2 cease to exist, the

2-4  appointments required by subsection 2 must be made by the association’s

2-5  successor in interest or, if there is no successor in interest, one each by

2-6  the other appointing authorities.

2-7    Sec. 5.  1.  If anticipated resources actually available during a

2-8  budget period exceed those estimated, a local government may augment a

2-9  budget in the following manner:

2-10    (a) If it is desired to augment the appropriations of a fund to which ad

2-11  valorem taxes are allocated as a source of revenue, the governing body

2-12  shall, by majority vote of all members of the governing body, adopt a

2-13  resolution reciting the appropriations to be augmented, and the nature of

2-14  the unanticipated resources intended to be used for the augmentation.

2-15  Before the adoption of the resolution, the governing body shall publish

2-16  notice of its intention to act thereon in a newspaper of general

2-17  circulation in the county for at least one publication. No vote may be

2-18  taken upon the resolution until 3 days after the publication of the notice.

2-19    (b) If it is desired to augment the budget of any fund other than a

2-20  fund described in paragraph (a) or an enterprise or internal service fund,

2-21  the governing body shall adopt, by majority vote of all members of the

2-22  governing body, a resolution providing therefor at a regular meeting of

2-23  the body.

2-24    (c) If the actual beginning fund balance of the general fund exceeds

2-25  the amount budgeted as the beginning fund balance for any fiscal year,

2-26  the fund may be augmented only to the extent that the augmentation does

2-27  not exceed one-twelfth of the actual expenditures from the general fund

2-28  for the fiscal year just ended. Such an augmentation must receive the

2-29  majority vote of the governing body and consent of the executive director

2-30  of the department of taxation. The executive director shall not approve

2-31  such an application for augmentation unless it is for the sole purpose of

2-32  replacing an identifiable appropriation for a specified purpose which

2-33  lapsed at the end of the preceding fiscal year and which has not been

2-34  reappropriated in the year in which the augmentation is to become

2-35  effective. The local government may appeal the decision of the executive

2-36  director to the Nevada tax commission, whose decision is final. If the

2-37  executive director or the tax commission approves the augmentation, it

2-38  must make written findings of the facts supporting its action.

2-39    2.  A budget augmentation becomes effective upon delivery to the

2-40  department of taxation of an executed copy of the resolution providing

2-41  therefor.

2-42    3.  Nothing in NRS 354.470 to 354.626, inclusive, and sections 2 to 5,

2-43  inclusive, of this act, precludes the amendment of a budget by increasing

2-44  the total appropriation for any fiscal year to include a grant-in-aid, gift

2-45  or bequest to a local unit of government which is required to be used for

2-46  a specific purpose as a condition of the grant. Acceptance of such a grant

2-47  and agreement to the terms imposed by the granting agency or person

2-48  constitutes an appropriation to the purpose specified.

3-1    4.  A local government need not file an augmented budget for an

3-2  enterprise or internal service fund with the department of taxation but

3-3  shall include the budget augmentation in the next quarterly report.

3-4    5.  Budget appropriations may be transferred between functions,

3-5  funds or contingency accounts in the following manner, if such a

3-6  transfer does not increase the total appropriation for any fiscal year and

3-7  is not in conflict with other statutory provisions:

3-8    (a) The person designated to administer the budget for a local

3-9  government may transfer appropriations within any function.

3-10    (b) The person designated to administer the budget may transfer

3-11  appropriations between functions or programs within a fund, if:

3-12      (1) The governing body is advised of the action at the next regular

3-13  meeting; and

3-14      (2) The action is recorded in the official minutes of the meeting.

3-15    (c) Upon recommendation of the person designated to administer the

3-16  budget, the governing body may authorize the transfer of appropriations

3-17  between funds or from the contingency account, if:

3-18      (1) The governing body announces the transfer of appropriations at

3-19  a regularly scheduled meeting and sets forth the exact amounts to be

3-20  transferred and the accounts, functions, programs and funds affected;

3-21      (2) The governing body sets forth its reasons for the transfer; and

3-22      (3) The action is recorded in the official minutes of the meeting.

3-23    6.  In any year in which the legislature by law increases or decreases

3-24  the revenues of a local government, and that increase or decrease was

3-25  not included or anticipated in the local government’s final budget as

3-26  adopted pursuant to NRS 354.598, the governing body of any such local

3-27  government may, within 30 days of adjournment of the legislative

3-28  session, file an amended budget with the department of taxation

3-29  increasing or decreasing its anticipated revenues and expenditures from

3-30  that contained in its final budget to the extent of the actual increase or

3-31  decrease of revenues resulting from the legislative action.

3-32    7.  In any year in which the legislature enacts a law requiring an

3-33  increase or decrease in expenditures of a local government, which was

3-34  not anticipated or included in its final budget as adopted pursuant to

3-35  NRS 354.598, the governing body of any such local government may,

3-36  within 30 days of adjournment of the legislative session, file an amended

3-37  budget with the department of taxation providing for an increase or

3-38  decrease in expenditures from that contained in its final budget to the

3-39  extent of the actual amount made necessary by the legislative action.

3-40    8.  An amended budget, as approved by the department of taxation, is

3-41  the budget of the local government for the current fiscal year.

3-42    9.  On or before January 1 of each school year, each school district

3-43  shall adopt an amendment to its final budget after the count of pupils is

3-44  completed pursuant to subsection 1 of NRS 387.1233. The amendment

3-45  must reflect any adjustments necessary as a result of the completed count

3-46  of pupils.

3-47    Sec. 6.  1.  The purpose of NRS 354.655 to 354.725 is to provide

3-48  specific methods for the treatment of delinquent documents, technical

3-49  financial assistance and severe financial emergency.

4-1    2.  To accomplish the purpose set forth in subsection 1, the provisions

4-2  of NRS 354.655 to 354.725, inclusive, must be broadly and liberally

4-3  construed.

4-4    Sec. 7.  NRS 354.470 is hereby amended to read as follows:

4-5    354.470  NRS 354.470 to 354.626, inclusive, and sections 2 to 5,

4-6  inclusive, of this act, may be cited as the Local Government Budget and

4-7  FinanceAct.

4-8    Sec. 8.  NRS 354.472 is hereby amended to read as follows:

4-9    354.472  1.  The purposes of NRS 354.470 to 354.626, inclusive, are:

4-10    (a) To establish standard methods and procedures for the preparation,

4-11  presentation, adoption[, administration and appraisal] and administration

4-12  of budgets of all local governments.

4-13    (b) To enable local governments to make financial plans for programs

4-14  of both current and capital expenditures and to formulate fiscal policies to

4-15  accomplish these programs.

4-16    (c) To provide for estimation and determination of revenues,

4-17  expenditures and tax levies.

4-18    (d) To provide for the control of revenues, expenditures and expenses in

4-19  order to promote prudence and efficiency in the expenditure of public

4-20  money.

4-21    (e) [To enable local governments to borrow money to meet emergency

4-22  expenditures or expenses.

4-23    (f)] To provide specific methods enabling the public, taxpayers and

4-24  investors to be apprised of the financial preparations, plans, policies and

4-25  administration of all local governments.

4-26    2.  For the accomplishment of these purposes the provisions of
NRS 354.470 to 354.626, inclusive, must be broadly and liberally

4-27  construed.

4-28    Sec. 9.  NRS 354.475 is hereby amended to read as follows:

4-29    354.475  1.  All special districts subject to the provisions of the Local

4-30  Government Budget and Finance Act with annual total expenditures of

4-31  less than [$100,000] $200,000 may petition the department of taxation for

4-32  exemption from the requirements of the Local Government Budget and

4-33  FinanceAct for the filing of certain budget documents and audit reports.

4-34  Such districts may further petition to [return to] use a cash [method] basis

4-35  of accounting. The minimum required of such districts is the filing with the

4-36  department of taxation of an annual budget on or before April 15 of each

4-37  year and the filing of quarterly reports in accordance with NRS 354.602.

4-38  Such petitions must be received by the department of taxation on or before

4-39  [December 31] April 15 to be effective for the succeeding fiscal year or, in

4-40  a case of an annual audit exemption, to be effective for the current fiscal

4-41  year. A board of county commissioners may request the department of

4-42  taxation to audit the financial records of such an exempt district.

4-43    2.  Such districts are exempt from all publication requirements of the

4-44  Local Government Budget and Finance Act, except that the department of

4-45  taxation by regulation shall require an annual publication of a notice of

4-46  budget adoption and filing. The department of taxation shall adopt

4-47  regulations pursuant to NRS 354.594 which are necessary to carry out the

4-48  purposes of this section.

5-1    3.  The revenue recorded in accounts that are kept on a cash basis must

5-2  consist of cash items.

5-3    4.  As used in this section, “cash basis” means the system of accounting

5-4  under which revenues are recorded only when received and expenditures or

5-5  expenses are recorded only when paid.

5-6    Sec. 10.  NRS 354.476 is hereby amended to read as follows:

5-7    354.476  As used in NRS 354.470 to 354.626, inclusive, and sections 2

5-8  to 5, inclusive, of this act,unless the context otherwise requires, the words

5-9  and terms defined in NRS [354.478 to 354.580, inclusive,] 354.479 to

5-10  354.578, inclusive, and sections 2 and 3 of this act,have the meanings

5-11  ascribed to them in those sections.

5-12    Sec. 11.  NRS 354.486 is hereby amended to read as follows:

5-13    354.486  “Audit” means the examination and analysis of financial

5-14  statements,accounting procedures and other evidence made in conformity

5-15  with generally accepted auditing standards in the United States for one or

5-16  more of the following purposes:

5-17    1.  Determining the propriety[, legality] and mathematical accuracy of

5-18  materialfinancial transactions;

5-19    2.  Ascertaining whether [all] financial transactions have been properly

5-20  recorded;

5-21    3.  Ascertaining whether the financial statements prepared from the

5-22  accounting records fairly present in all material respects the financial

5-23  position and the results of financial operations [of the constituent and

5-24  balanced account groups] and cash flows of the governmental unit in

5-25  accordance with generally accepted accounting principles in the United

5-26  States and on a basis which is consistent with that of the preceding year;

5-27    4.  [Determining whether] Evaluating internal accounting controls

5-28  over financial reporting ofthe handling of the public money [is adequately

5-29  protected by internal accounting controls;] and public property;

5-30    5.  Determining whether the fiscal controls established by law and

5-31  administrative regulations are being properly applied;

5-32    6.  Determining whether there is any evidence that fraud or dishonesty

5-33  has occurred in the handling of funds or property;

5-34    7.  Determining whether the acquisition , depreciation and disposition

5-35  of property and equipment are accounted for in accordance with generally

5-36  accepted accounting principles[;] in the United States; and

5-37    8.  Determining whether the removal of the uncollectible accounts

5-38  receivable from the records of a governmental unit is done in accordance

5-39  with the procedure established by law and administrative regulations.

5-40    Sec. 12.  NRS 354.506 is hereby amended to read as follows:

5-41    354.506  “Contingency account” means an account showing [assets or

5-42  other resources which have] money that has been appropriated to provide

5-43  for unforeseen expenditures or anticipated expenditures of an uncertain

5-44  amount.

5-45    Sec. 13.  NRS 354.510 is hereby amended to read as follows:

5-46    354.510  “Debt service fund” means a fund to account for the

5-47  accumulation of resources for and the payment of principal or interest on

5-48  any general long-term debt[.] or medium-term obligation.

 

6-1    Sec. 14.  NRS 354.518 is hereby amended to read as follows:

6-2    354.518  [“Estimated] “Anticipated revenue” means the amount of

6-3  revenue [estimated] anticipated to be collected or accrued during a given

6-4  period.

6-5    Sec. 15.  NRS 354.520 is hereby amended to read as follows:

6-6    354.520  1.  “Expenditure” means:

6-7    (a) If [accounts] the accounting records are kept on the [accrual basis

6-8  or the] modified accrual basis, the cost of goods delivered or services

6-9  rendered, whether paid or unpaid .[, any provision for retirement of debt

6-10  which is not reported as a liability of the fund from which the debt is

6-11  retired, and any capital outlays.] Expenditures are recognized in the

6-12  accounting period in which the fund liability is incurred, if measurable,

6-13  except for unmatured interest on general long-term liabilities which

6-14  should be recognized when due.

6-15    (b) If accounts are kept on the cash basis, only cash disbursements for

6-16  the purposes listed in paragraph (a).

6-17    2.  Encumbrances are not considered expenditures.

6-18    Sec. 16.  NRS 354.523 is hereby amended to read as follows:

6-19    354.523  “Expense” means any charge incurred, under the accrual

6-20  basis,whether paid or unpaid, for operation, maintenance or interest or any

6-21  other charge which is presumed to provide benefit in the current fiscal

6-22  period.

6-23    Sec. 17.  NRS 354.524 is hereby amended to read as follows:

6-24    354.524  “Final budget” means the budget [that] which has been

6-25  adopted by a local governing body or adopted by default as defined by

6-26  NRS 354.470 to 354.626, inclusive, and [approved] which has been

6-27  determined by the department of taxation [for the ensuing fiscal year.] to

6-28  be in compliance with applicable statutes and regulations.

6-29    Sec. 18.  NRS 354.528 is hereby amended to read as follows:

6-30    354.528  [“Fixed] “Capital assets” means assets of a long-term

6-31  character which are intended to continue to be held or used such as land,

6-32  buildings, machinery, furniture and other equipment.

6-33    Sec. 19.  NRS 354.529 is hereby amended to read as follows:

6-34    354.529  “Function” means a group of related activities aimed at

6-35  accomplishing a major service or regulatory program for which a

6-36  governmental unit is responsible, [such as] including, without limitation,

6-37  general government, public safety, public works, health, welfare, culture

6-38  and recreation, conservation of natural resources, urban redevelopment and

6-39  housing, economic development and assistance ,[or] economic opportunity

6-40  [.]and activities relating to the judiciary.

6-41    Sec. 20.  NRS 354.533 is hereby amended to read as follows:

6-42    354.533  “Fund balance” means the excess of assets over liabilities

6-43  [and reserves] in a governmental fund.

6-44    Sec. 21.  NRS 354.5335 is hereby amended to read as follows:

6-45    354.5335  [“Fund for capital projects”] “Capital projects fund” means

6-46  a fund created to account for [all] resources used for the acquisition or

6-47  construction of designated [fixed] capital assets by a governmental unit

6-48  except those financed by proprietary or trust funds.

 

7-1    Sec. 22.  NRS 354.535 is hereby amended to read as follows:

7-2    354.535  “General long-term debt” means debt which is legally payable

7-3  from general revenues and is backed by the full faith and credit of a

7-4  governmental unit. The term includes [debt represented by local

7-5  government securities] obligations issued by a local government pursuant

7-6  to chapter 350 of NRS and [debt created for medium-term obligations

7-7  pursuant to NRS 350.085 to 350.095, inclusive.] other long-term

7-8  liabilities, including, without limitation, accrued compensated absences

7-9  and claims for workers’ compensation.

7-10    Sec. 23.  NRS 354.562 is hereby amended to read as follows:

7-11    354.562  [1.] “Revenue” means the gross [increase in ownership

7-12  equity during a designated period.

7-13    2.  If the accounts are kept on an accrual basis, this term designates:

7-14    (a) Additions to assets which do not increase any liability or represent

7-15  the recovery of an expenditure or contributions of fund capital in

7-16  proprietary funds; and

7-17    (b) The cancellation of liabilities without a corresponding increase in

7-18  other liabilities or a decrease in assets.

7-19    3.  If the accounts are kept on the modified accrual basis, the additions

7-20  must be measurable and available to finance expenditures of the fiscal

7-21  period.] receipts and receivables of a local government derived from taxes

7-22  and all other sources except from appropriations and allotments.

7-23    Sec. 24.  NRS 354.570 is hereby amended to read as follows:

7-24    354.570  “Special revenue fund” means a fund used to account for

7-25  specific revenue sources, other than [special assessments, expendable

7-26  trusts, or] sources for major capital projects, which are restricted by law to

7-27  expenditure for specified purposes.

7-28    Sec. 25.  NRS 354.5945 is hereby amended to read as follows:

7-29    354.5945  1.  [On] Except as otherwise provided in subsection 6, on

7-30  or before July 1 of each year, each local government shall prepare, on a

7-31  form prescribed by the department of taxation for use by local

7-32  governments, a capital improvement plan for the ensuing 5 fiscal years.

7-33    2.  Each local government must submit a copy of the capital

7-34  improvement plan of the local government to the:

7-35    (a) Department of taxation; and

7-36    (b) Debt management commission of the county in which the local

7-37  government is located.

7-38    3.  Each local government must file a copy of the capital improvement

7-39  plan of the local government for public record and inspection by the public

7-40  in the offices of:

7-41    (a) The clerk or secretary of the governing body; and

7-42    (b) The county clerk.

7-43    4.  The total amount of the expenditures contained in the capital

7-44  improvement plan of the local government for the next ensuing fiscal year

7-45  must equal the total amount of expenditures for capital outlay set forth in

7-46  the final budget of the local government for each fund listed in that budget.

7-47    5.  The capital improvement plan must reconcile the capital outlay in

7-48  each fund in the final budget for the first year of the capital improvement

7-49  plan to the final budget in the next ensuing fiscal year. The

8-1  reconciliation must identify the minimum level of expenditure for items

8-2  classified as capital assets in the final budget and the minimum level of

8-3  expenditure for items classified as capital projects in the capital

8-4  improvement plan. The reconciliation of capital outlay items in the

8-5  capital improvement plan must be presented on forms created and

8-6  distributed by the department of taxation.

8-7    6.  Local governments that are exempt from the requirements of the

8-8  Local Government Budget and Finance Act pursuant to NRS 354.475

8-9  are not required to file a capital improvement plan.

8-10    Sec. 26.  NRS 354.596 is hereby amended to read as follows:

8-11    354.596  1.  [On or before April 15 of each year, the] The officer

8-12  charged by law shall prepare, or the governing body shall cause to be

8-13  prepared, on appropriate forms prescribed by the department of taxation for

8-14  the use of local governments, a tentative budget for the ensuing fiscal year.

8-15  The tentative budget [and a copy of the local government’s report of its

8-16  proposed expenditures] for the following fiscal year must be submitted to

8-17  the county auditor and filed for public record and inspection in the office

8-18  of:

8-19    (a) The clerk or secretary of the governing body; and

8-20    (b) The county clerk.

8-21  [The report must be written in the same detail as its chart of accounts. The

8-22  total amount of the expenditures contained in this report equal the total

8-23  amount of expenditures contained in its tentative budget for each

8-24  department and fund listed in that budget.]

8-25    2.  On or before April 15, a copy of the tentative budget must be

8-26  submitted:

8-27    (a) To the department of taxation; and

8-28    (b) In the case of school districts, to the department of education.

8-29    3. At the time of filing the tentative budget, the governing body shall

8-30  give notice of the time and place of a public hearing on the tentative budget

8-31  and shall cause a notice of the hearing to be published once in a newspaper

8-32  of general circulation within the area of the local government not more

8-33  than 14 nor less than 7 days before the date set for the hearing. The notice

8-34  of public hearing must state:

8-35    (a) The time and place of the public hearing.

8-36    (b) That a tentative budget has been prepared in such detail and on

8-37  appropriate forms as prescribed by the department of taxation.

8-38    (c) The places where copies of the tentative budget are on file and

8-39  available for public inspection.

8-40    [3.] 4. Budget hearings must be held:

8-41    (a) For county budgets, on the third Monday in May;

8-42    (b) For cities, on the third Tuesday in May;

8-43    (c) For school districts, on the third Wednesday in May; and

8-44    (d) For all other local governments, on the third Thursday in
May,

8-45  except that the board of county commissioners may consolidate the hearing

8-46  on all local government budgets administered by the board of county

8-47  commissioners with the county budget hearing.

9-1    [4.  On or before April 15, a copy of the tentative budget and notice of

9-2  public hearing must be submitted:

9-3    (a) To the department of taxation; and

9-4    (b) In the case of school districts, to the state department of education.]

9-5    5.  The department of taxation shall examine the submitted documents

9-6  for compliance with law and with appropriate regulations and shall submit

9-7  to the governing body at least 3 days before the public hearing a written

9-8  certificate of compliance or a written notice of lack of compliance. The

9-9  written notice must indicate the manner in which the submitted documents

9-10  fail to comply with law or appropriate regulations.

9-11    6.  Whenever the governing body receives from the department of

9-12  taxation a notice of lack of compliance, the governing body shall forthwith

9-13  proceed to amend the tentative budget to effect compliance with the law

9-14  and with the appropriate regulation.

9-15    [7.  If any change which results in an increase in the amount of revenue

9-16  required from property taxes is made in a tentative budget after it has been

9-17  submitted to the county auditor pursuant to subsection 1, the amended

9-18  tentative budget must be submitted to the county auditor at least 30 days

9-19  before it may be adopted as the final budget.]

9-20    Sec. 27.  NRS 354.598 is hereby amended to read as follows:

9-21    354.598  1.  At the time and place advertised for public hearing, or at

9-22  any time and place to which the public hearing is from time to time

9-23  adjourned, the governing body shall hold a public hearing on the tentative

9-24  budget, at which time interested persons must be given an opportunity to

9-25  be heard.

9-26    2.  At the public hearing, the governing body shall indicate changes, if

9-27  any, to be made in the tentative budget, and shall adopt a final budget by

9-28  the favorable votes of a majority of all members of the governing body.

9-29  Except as otherwise provided in this subsection, the final budget must be

9-30  adopted on or before June 1 of each year. The final budgets of school

9-31  districts must be adopted on or before June 8 of each year and must be

9-32  accompanied by copies of the written report and written procedure

9-33  prepared pursuant to subsection 3 of NRS 385.351. Should the governing

9-34  body fail to adopt a final budget that complies with the requirements of law

9-35  and the regulations of the department of taxation on or before the required

9-36  date, the budget adopted and [approved] used for certification of the

9-37  combined ad valorem tax rateby the department of taxation for the current

9-38  year, adjusted as to content and rate in such a manner as the department of

9-39  taxation may consider necessary, automatically becomes the budget for the

9-40  ensuing fiscal year. When a budget has been so adopted by default, the

9-41  governing body may not reconsider the budget without the express

9-42  approval of the department of taxation. If the default budget creates a

9-43  combined ad valorem tax rate in excess of the limit imposed by
NRS 361.453, the Nevada tax commission shall adjust the budget as

9-44  provided in NRS 361.4547 or 361.455.

9-45    3.  The final budget must be certified by a majority of all members of

9-46  the governing body and a copy of it, together with an affidavit of proof of

9-47  publication of the notice of the public hearing, must be transmitted to the

9-48  Nevada tax commission. If a tentative budget is adopted by default as

10-1  provided in subsection 2, the clerk of the governing body shall certify the

10-2  budget and transmit to the Nevada tax commission a copy of the budget,

10-3  together with an affidavit of proof of the notice of the public hearing, if

10-4  that notice was published. Certified copies of the final budget must be

10-5  distributed as determined by the department of taxation.

10-6    4.  Upon the adoption of the final budget or the amendment of the

10-7  budget in accordance with [NRS 354.606,] section 5 of this act, the several

10-8  amounts stated in it as proposed expenditures are appropriated for the

10-9  purposes indicated in the budget.

10-10  5.  No governing body may adopt any budget which appropriates for

10-11  any fund any amount in excess of the budget resources of that fund.

10-12  6.  [On or before January 1 of each school year, each school district

10-13  shall adopt an amendment to its final budget after the count of pupils is

10-14  completed pursuant to subsection 1 of NRS 387.1233. The amendment

10-15  must reflect any adjustments necessary as a result of the completed count

10-16  of pupils.] If a local government makes a change in its final budget

10-17  which increases the combined ad valorem tax rate, the local government

10-18  shall submit the amended final budget to the county auditor within 15

10-19  days after making the change.

10-20  Sec. 28.  NRS 354.59801 is hereby amended to read as follows:

10-21  354.59801  Each local government shall file in the office of the clerk or

10-22  secretary of its governing body, for public record and inspection:

10-23  1.  A copy of its final budget; and

10-24  2.  A copy of its final plan for capital improvements prepared pursuant

10-25  to NRS 354.5945 and, if applicable, NRS 350.0035 . [; and

10-26  3.  A report of its proposed expenditures for the following fiscal year,

10-27  written in the same detail as its chart of accounts. The total amount of these

10-28  expenditures must equal the total amount of expenditures contained in its

10-29  final budget for each department and fund listed in that budget.]

10-30  Sec. 29.  NRS 354.59811 is hereby amended to read as follows:

10-31  354.59811  1.  Except as otherwise provided in NRS 354.59813,

10-32  354.59815, 354.5982, 354.5987, [354.59871,] 354.705, 354.723, 450.425,

10-33  450.760, 540A.265 and 543.600, for each fiscal year beginning on or after

10-34  July 1, 1989, the maximum amount of money that a local government,

10-35  except a school district, a district to provide a telephone number for

10-36  emergencies, or a redevelopment agency, may receive from taxes ad

10-37  valorem, other than those attributable to the net proceeds of minerals or

10-38  those levied for the payment of bonded indebtedness and interest thereon

10-39  incurred as general long-term debt of the issuer, or for the payment of

10-40  obligations issued to pay the cost of a water project pursuant to
NRS 349.950, or for the payment of obligations under a capital lease

10-41  executed before April 30, 1981, must be calculated as follows:

10-42  (a) The rate must be set so that when applied to the current fiscal year’s

10-43  assessed valuation of all property which was on the preceding fiscal year’s

10-44  assessment roll, together with the assessed valuation of property on the

10-45  central assessment roll which was allocated to the local government, but

10-46  excluding any assessed valuation attributable to the net proceeds of

10-47  minerals, assessed valuation attributable to a redevelopment area and

10-48  assessed valuation of a fire protection district attributable to real property

11-1  which is transferred from private ownership to public ownership for the

11-2  purpose of conservation, it will produce 106 percent of the maximum

11-3  revenue allowable from taxes ad valorem for the preceding fiscal year,

11-4  except that the rate so determined must not be less than the rate allowed for

11-5  the previous fiscal year, except for any decrease attributable to the

11-6  imposition of a tax pursuant to NRS 354.59813 in the previous year.

11-7    (b) This rate must then be applied to the total assessed valuation,

11-8  excluding the assessed valuation attributable to the net proceeds of

11-9  minerals and the assessed valuation of a fire protection district attributable

11-10  to real property which is transferred from private ownership to public

11-11  ownership for the purpose of conservation but including new real property,

11-12  possessory interests and mobile homes, for the current fiscal year to

11-13  determine the allowed revenue from taxes ad valorem for the local

11-14  government.

11-15  2.  As used in this section, “general long-term debt” does not include

11-16  debt created for medium-term obligations pursuant to NRS 350.085 to

11-17  350.095, inclusive.

11-18  Sec. 30.  NRS 354.59817 is hereby amended to read as follows:

11-19  354.59817  1.  In addition to the allowed revenue from taxes ad

11-20  valorem determined pursuant to NRS 354.59811, upon the approval of a

11-21  majority of the registered voters of a county voting upon the question, the

11-22  board of county commissioners may levy a tax ad valorem on all taxable

11-23  property in the county at a rate not to exceed 15 cents per $100 of the

11-24  assessed valuation of the county. A tax must not be levied pursuant to this

11-25  section for more than 10 years.

11-26  2.  The board of county commissioners shall direct the county treasurer

11-27  to distribute quarterly the proceeds of any tax levied pursuant to the

11-28  provisions of this section among the county and the cities and towns within

11-29  that county in the proportion that the supplemental city-county relief tax

11-30  distribution factor of each of those local governments for the 1990-1991

11-31  fiscal year bears to the sum of the supplemental city-county relief tax

11-32  distribution factors of all [of] the local governments in the county for the

11-33  1990-1991 fiscal year.

11-34  3.  The board of county commissioners shall not reduce the rate of any

11-35  tax levied pursuant to the provisions of this section without the approval of

11-36  each of the local governments that receives a portion of the tax, except that,

11-37  if a local government declines to receive its portion of the tax in a

11-38  particular year the levy may be reduced by the amount that local

11-39  government would have received.

11-40  4.  The governing body of each local government that receives a

11-41  portion of the revenue from the tax levied pursuant to this section shall

11-42  establish a separate [fund for] capital projects fund for the purposes set

11-43  forth in this section. All interest and income earned on the money in the

11-44  fund must also be deposited in the fund. The money in the fund may only

11-45  be used for:

11-46  (a) The purchase of capital assets including land, improvements to land

11-47  and major items of equipment;

11-48  (b) The construction or replacement of public works; and

12-1    (c) The renovation of existing governmental facilities, not including

12-2  normal recurring maintenance.

12-3  The money in the fund must not be used to finance the issuance or the

12-4  repayment of bonds or other obligations, including medium-term

12-5  obligations.

12-6    5.  Money may be retained in the fund for not more than 10 years to

12-7  allow the funding of projects without the issuance of bonds or other

12-8  obligations. For the purpose of determining the length of time a deposit of

12-9  money has been retained in the fund, all money withdrawn from the fund

12-10  shall be deemed to be taken on a first-in, first-out basis. No money in the

12-11  fund at the end of the fiscal year may revert to any other fund, nor may the

12-12  money be a surplus for any other purpose than those specified in this

12-13  section.

12-14  6.  The annual budget and audit report of each local government must

12-15  specifically identify this fund and must indicate in detail the projects that

12-16  have been funded with money from the fund. Any planned accumulation of

12-17  the money in the fund must also be specifically identified.

12-18  7.  The projects on which money raised pursuant to this section will be

12-19  expended must be approved by the voters in the question submitted

12-20  pursuant to subsection 1 or in a separate question submitted on the ballot at

12-21  a primary, general or special election.

12-22  Sec. 31.  NRS 354.5987 is hereby amended to read as follows:

12-23  354.5987  1.  For the purposes of NRS 354.59811, the allowed

12-24  revenue from taxes ad valorem of any local government[:

12-25  (a) Which comes into being on or after July 1, 1989, whether newly

12-26  created, consolidated, or both; or

12-27  (b) Which was in existence before July 1, 1989, but did not receive

12-28  revenue from taxes ad valorem, except any levied for debt service, for the

12-29  fiscal year ending June 30, 1989,]

12-30  must be [initially] established by the Nevada tax commission[.] for the

12-31  first fiscal year it is in existence.

12-32  2.  Except as otherwise provided in subsections 3 and [6,] 5, if the local

12-33  government for which the allowed revenue from taxes ad valorem is to be

12-34  established performs a function previously performed by another local

12-35  government, the total revenue allowed to all local governments for

12-36  performance of substantially the same function in substantially the same

12-37  geographical area must not be increased. To achieve this result, the Nevada

12-38  tax commission shall request the committee on local government finance to

12-39  prepare a statement of the prior cost of performing the function for each

12-40  predecessor local government. Within 60 days after receipt of such a

12-41  request, the committee on local government finance shall prepare a

12-42  statement pursuant to the request and transmit it to the Nevada tax

12-43  commission. The Nevada tax commission may accept, reject or amend the

12-44  statement of the committee on local government finance. The decision of

12-45  the Nevada tax commission is final. Upon making a final determination of

12-46  the prior cost of performing the function for each predecessor local

12-47  government, the Nevada tax commission shall:

13-1    (a) Determine the percentage that the prior cost of performing the

13-2  function for each predecessor local government is of the allowed revenue

13-3  from taxes ad valorem of that local government; and

13-4    (b) Apply the percentage determined pursuant to paragraph (a) to the

13-5  allowed revenue from taxes ad valorem and subtract that amount from the

13-6  allowed revenue from taxes ad valorem of the predecessor local

13-7  government.

13-8  The allowed revenue from taxes ad valorem attributable to the new local

13-9  government for the cost of performing the function must equal the total of

13-10  the amounts subtracted for the prior cost of performing the function from

13-11  the allowed revenue from taxes ad valorem of all [of] the predecessor local

13-12  governments.

13-13  3.  If the local government for which the allowed revenue from taxes ad

13-14  valorem is to be established is an unincorporated town which provides a

13-15  service not previously provided by another local government, and the

13-16  board of county commissioners has included the unincorporated town in a

13-17  resolution adopted pursuant to the provisions of NRS 269.5755, the

13-18  Nevada tax commission shall, if the unincorporated town does not receive

13-19  revenue from taxes ad valorem, establish the allowed revenue of the town

13-20  from taxes ad valorem at an amount which is in the same ratio to the

13-21  assessed valuation of the town as the combined allowed revenues from

13-22  taxes ad valorem are to the combined assessed valuations of the other

13-23  unincorporated towns included in the common levy.

13-24  4.  [The allowed revenue from taxes ad valorem of an unincorporated

13-25  town which provides a service not previously provided by another local

13-26  government must be:

13-27  (a) Reduced by 75 percent for the first fiscal year following the fiscal

13-28  year in which the allowed revenue from taxes ad valorem is established

13-29  pursuant to subsection 3;

13-30  (b) Reduced by 50 percent for the second fiscal year following the fiscal

13-31  year in which the allowed revenue from taxes ad valorem is established

13-32  pursuant to subsection 3; and

13-33  (c) Reduced by 25 percent for the third fiscal year following the fiscal

13-34  year in which the allowed revenue from taxes ad valorem is established

13-35  pursuant to subsection 3.

13-36  5.  In any other case, except] Except as otherwise provided in

13-37  subsection [6,] 5, the allowed revenue from taxes ad valorem of all local

13-38  governments in the county, determined pursuant to NRS 354.59811, must

13-39  not be increased, but the total allowed revenue from taxes ad valorem must

13-40  be reallocated among the local governments consistent with subsection 2 to

13-41  accommodate the amount established for the new local government

13-42  pursuant to subsection 1.

13-43  [6.] 5. In establishing the allowed revenue from taxes ad valorem of a

13-44  county, city or town pursuant to this section, the Nevada tax commission

13-45  shall allow a tax rate for operating expenses of at least 15 cents per $100 of

13-46  assessed valuation in addition to the tax rate allowed for any identified and

13-47  restricted purposes and for debt service.

13-48  [7.] 6. As used in this section:

14-1    (a) “Predecessor local government” means a local government which

14-2  previously performed all or part of a function to be performed by the local

14-3  government for which the allowed revenue from taxes ad valorem is being

14-4  established pursuant to subsection 1.

14-5    (b) “Prior cost of performing the function” means the amount expended

14-6  by a local government to perform a function which is now to be performed

14-7  by another local government. The amount must be determined on the basis

14-8  of the most recent fiscal year for which reliable information is available.

14-9    Sec. 32.  NRS 354.599 is hereby amended to read as follows:

14-10  354.599  [1.] If the legislature directs one or more local governments

14-11  to:

14-12  [(a)] 1. Establish a program or provide a service; or

14-13  [(b)] 2. Increase a program or service already established which

14-14  requires additional funding,

14-15  and the expense required to be paid by each local government to establish,

14-16  provide or increase the program or service is $5,000 or more, a specified

14-17  source for the additional revenue to pay the expense must be authorized by

14-18  a specific statute. The additional revenue may only be used to pay expenses

14-19  directly related to the program or service. If a local government has money

14-20  from any other source available to pay such expenses, that money must be

14-21  applied to the expenses before any money from the revenue source

14-22  specified by statute.

14-23  [2.  In any year in which the legislature by law increases or decreases

14-24  the revenues of a local government, and that increase or decrease was not

14-25  included or anticipated in the local government’s final budget as adopted

14-26  pursuant to NRS 354.598, the governing body of any such local

14-27  government may, before August 15 of the budget year, file an amended

14-28  budget with the department of taxation increasing or decreasing its

14-29  anticipated revenues and expenditures from that contained in its final

14-30  budget to the extent of the actual increase or decrease of revenues resulting

14-31  from the legislative action.

14-32  3.  In any year in which the legislature enacts a law requiring an

14-33  increase or decrease in expenditures of a local government, which was not

14-34  anticipated or included in its final budget as adopted pursuant to NRS

14-35  354.598, the governing body of any such local government may, before

14-36  August 15 of the budget year, file an amended budget with the department

14-37  of taxation providing for an increase or decrease in expenditures from that

14-38  contained in its final budget to the extent of the actual amount made

14-39  necessary by the legislative action.

14-40  4.  The amended budget, as approved by the department of taxation, is

14-41  the budget of the local government for the current fiscal year.]

14-42  Sec. 33.  NRS 354.600 is hereby amended to read as follows:

14-43  354.600  Each budget must include:

14-44  1.  Detailed estimates of [budget resources] revenues, balances in

14-45  other funds and other sources of financingfor the budget year classified

14-46  by funds and sources in a manner and on forms prescribed by the

14-47  department of taxation.

15-1    2.  Detailed estimates of expenditures and other uses of money for the

15-2  budget year classified in a manner and on forms prescribed by the

15-3  department of taxation.

15-4    [3.  A separate statement of the anticipated expense, including

15-5  personnel, for the operation and maintenance of each capital improvement

15-6  to be constructed during the budget year and of each capital improvement

15-7  constructed on or after July 1, 1998, which is to be used during that or a

15-8  future budget year.

15-9    4.  A separate statement of the proposed source of funding for the

15-10  operation and maintenance of each capital improvement, including

15-11  personnel, to be constructed during that budget year.]

15-12  Sec. 34.  NRS 354.603 is hereby amended to read as follows:

15-13  354.603  1.  The board of trustees of any county school district, the

15-14  board of hospital trustees of any county hospital or the board of trustees of

15-15  any consolidated library district or district library may establish and

15-16  administer separate accounts in:

15-17  (a) A bank whose deposits are insured by the Federal Deposit Insurance

15-18  Corporation;

15-19  (b) A credit union whose deposits are insured by the National Credit

15-20  Union Share Insurance Fund or by a private insurer approved pursuant to

15-21  NRS 678.755; or

15-22  (c) A savings and loan association whose deposits if made by the state,

15-23  a local government or an agency of either, are insured by the Federal

15-24  Deposit Insurance Corporation, or the legal successor of the Federal

15-25  Deposit Insurance Corporation,

15-26  for money deposited by the county treasurer which is by law to be

15-27  administered and expended by those boards.

15-28  2.  The county treasurer shall transfer the money to a separate account

15-29  pursuant to subsection 1 when the following conditions are met:

15-30  (a) The board of trustees of the county school district, the board of

15-31  hospital trustees of the county hospital or the board of trustees of the

15-32  consolidated library district or district library adopts a resolution declaring

15-33  an intention to establish and administer a separate account in accordance

15-34  with the provisions of this section.

15-35  (b) The board of trustees of the county school district, the board of

15-36  hospital trustees of the county hospital or the board of trustees of the

15-37  consolidated library district or district library sends a certificate to the

15-38  county treasurer, the county auditor, the board of county commissioners

15-39  and, in the case of the board of trustees of the county school district, to the

15-40  department of education, attested by the secretary of the board, declaring

15-41  the intention of the board to establish and administer a separate account in

15-42  accordance with the provisions of this section.

15-43  (c) The board of hospital trustees of the county hospital or the board of

15-44  trustees of the consolidated library district or district library submits

15-45  monthly reports, listing all transactions involving the separate account, to

15-46  the county treasurer, the county auditor and the board of county

15-47  commissioners. The reports must be certified by the secretary of the board.

15-48  In addition, the board shall give a full account and record of all money in

15-49  such an account upon request of the board of county commissioners.

16-1    3.  The separate account of the board of trustees of the county school

16-2  district established under the provisions of this section must be composed

16-3  of:

16-4    (a) The county school district fund; and

16-5    (b) The county school district building and sites fund.

16-6    4.  The separate account established by the board of county hospital

16-7  trustees is designated the county hospital fund.

16-8    5.  The separate account of the board of trustees of the consolidated

16-9  library district or district library established under the provisions of this

16-10  section must be composed of:

16-11  (a) The fund for the consolidated library or district library, as

16-12  appropriate; and

16-13  (b) The [fund for] capital projects fund of the consolidated library or

16-14  district library, as appropriate.

16-15  6.  No expenditures from an account may be made in excess of the

16-16  balance of the account.

16-17  7.  Such an account must support all expenditures properly related to

16-18  the purpose of the fund, excluding direct payments of principal and interest

16-19  on general obligation bonds, and including, but not limited to, debt service,

16-20  capital projects, capital outlay and operating expenses.

16-21  8.  The board of county commissioners, if it determines that there is

16-22  clear evidence of misuse or mismanagement of money in any separate

16-23  account, may order the closing of the account and the return of the money

16-24  to the county treasury to be administered in accordance with existing

16-25  provisions of law. The board of trustees of the county school district, the

16-26  board of hospital trustees of the county hospital or the board of trustees of

16-27  the consolidated library district or district library is entitled to a hearing

16-28  before the board of county commissioners.

16-29  Sec. 35.  NRS 354.604 is hereby amended to read as follows:

16-30  354.604  Each local government shall maintain, according to its own

16-31  needs:

16-32  1.  The following kinds of governmental funds:

16-33  (a) General fund;

16-34  (b) Special revenue fund;

16-35  (c) [Fund for capital projects; and] Capital projects fund;

16-36  (d) Debt service fund[.] ; and

16-37  (e) Permanent fund.

16-38  2.  The following kinds of proprietary funds:

16-39  (a) Enterprise fund; and

16-40  (b) Internal service fund.

16-41  3.  [Trust and agency funds.

16-42  4.] The following kinds of [account groups:

16-43  (a) General fixed assets; and

16-44  (b) General long-term debt.] fiduciary funds:

16-45  (a) Pension and other employee benefits funds;

16-46  (b) Investment trust funds;

16-47  (c) Private-purpose trust funds; and

16-48  (d) Agency funds.

 

17-1    Sec. 36.  NRS 354.608 is hereby amended to read as follows:

17-2    354.608  A contingency account may be established in any

17-3  governmental fund. The maximum amount which may be appropriated for

17-4  such a contingency account is 3 percent of the money otherwise

17-5  appropriated to the fund, exclusive of any amounts to be transferred to

17-6  other funds. No expenditure may be made directly from such a contingency

17-7  account, except as a transfer to the appropriate account, and then only in

17-8  accordance with the procedure established in [NRS 354.606.] section 5 of

17-9  this act.

17-10  Sec. 37.  NRS 354.6105 is hereby amended to read as follows:

17-11  354.6105  1.  A local government [in a county whose population is

17-12  100,000 or more shall] may establish a fund for the extraordinary

17-13  maintenance, repair or improvement of capital projects. [The local

17-14  government shall establish within that fund a separate account for each

17-15  capital project it undertakes, except a capital project for the:

17-16  (a) Construction of public roads;

17-17  (b) Control of floods; or

17-18  (c) Transmission or treatment of water, waste water or sewerage.

17-19  The local government shall allocate an amount equal to one-half of 1

17-20  percent of the total amount of the bonds sold for each capital project and

17-21  deposit that amount in the separate account established for that capital

17-22  project. The proceeds from the sale of those bonds or any other money of

17-23  the local government may be used to carry out the provisions of this

17-24  subsection.]

17-25  2.  Any interest and income earned on the money in [an account within]

17-26  the fund in excess of any amount which is reserved for rebate payments to

17-27  the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is

17-28  otherwise required to be applied in a specific manner by the Internal

17-29  Revenue Code of 1986, as amended, must be credited to [that account.] the

17-30  fund.

17-31  3.  The money in [each account within] the fund may be used only for

17-32  the extraordinary maintenance, repair or improvement of the capital

17-33  [project or a facility which replaces that capital project.] projects or

17-34  facilities which replace capital projects of the local government that

17-35  made the deposits into the fund.The money in [each account within] the

17-36  fund at the end of the fiscal year may not revert to any other fund or be a

17-37  surplus for any purpose other than the purpose specified in this subsection.

17-38  [If the local government sells any capital project for which an account

17-39  within the fund was established, any balance remaining in that account

17-40  must be used to reduce the debt of the local government.

17-41  4.  The annual budget and audit report of the local government

17-42  prepared pursuant to NRS 354.624 must specifically identify:

17-43  (a) Each fund and every account within that fund established pursuant

17-44  to this section and indicate in detail any extraordinary maintenance, repairs

17-45  or improvements of the capital project that have been paid for with money

17-46  from the fund; and

17-47  (b) Any planned accumulation of money in each fund and every account

17-48  within the fund.

18-1  The audit report must include a statement by the auditor whether the local

18-2  government has complied with the provisions of this subsection.]

18-3    Sec. 38.  NRS 354.6115 is hereby amended to read as follows:

18-4    354.6115  1.  The governing body of a local government may, by

18-5  resolution, establish a fund to stabilize the operation of the local

18-6  government and mitigate the effects of natural disasters.

18-7    2.  The money in the fund must be used only:

18-8    (a) If the total actual revenue of the local government falls short of the

18-9  total anticipated revenue in the general fund for the fiscal year in which the

18-10  local government uses that money; or

18-11  (b) To pay expenses incurred by the local government to mitigate the

18-12  effects of a natural disaster.

18-13  The money in the fund at the end of the fiscal year may not revert to any

18-14  other fund or be a surplus for any purpose other than a purpose specified in

18-15  this subsection.

18-16  3.  The money in the fund may not be used to pay expenses incurred to

18-17  mitigate the effects of a natural disaster until the governing body of the

18-18  local government issues a formal declaration that a natural disaster exists.

18-19  The governing body shall not make such a declaration unless a natural

18-20  disaster is occurring or has occurred. Upon the issuance of such a

18-21  declaration, the money in the fund may be used for the payment of the

18-22  following expenses incurred by the local government as a result of the

18-23  natural disaster:

18-24  (a) The repair or replacement of roads, streets, bridges, water control

18-25  facilities, public buildings, public utilities, recreational facilities and parks

18-26  owned by the local government and damaged by the natural disaster;

18-27  (b) Any emergency measures undertaken to save lives, protect public

18-28  health and safety or protect property within the jurisdiction of the local

18-29  government;

18-30  (c) The removal of debris from publicly or privately owned land and

18-31  waterways within the jurisdiction of the local government that was

18-32  undertaken because of the natural disaster;

18-33  (d) Expenses incurred by the local government for any overtime worked

18-34  by an employee of the local government because of the natural disaster or

18-35  any other extraordinary expenses incurred by the local government because

18-36  of the natural disaster; and

18-37  (e) The payment of any grant match the local government must provide

18-38  to obtain a grant from a federal disaster assistance agency for an eligible

18-39  project to repair damage caused by the natural disaster within the

18-40  jurisdiction of the local government.

18-41  4.  The balance in the fund must not exceed 10 percent of the

18-42  expenditures from the general fund for the previous fiscal year, excluding

18-43  any federal funds expended by the local government.

18-44  5.  The annual budget and audit report of the local government

18-45  prepared pursuant to NRS 354.624 must specifically identify the fund .

18-46  [and:

18-47  (a) Indicate in detail the manner in which money in the fund was

18-48  expended during the previous fiscal year;

19-1    (b) Specify the amount of money, if any, that will be deposited in the

19-2  fund for the next fiscal year; and

19-3    (c) Identify any planned accumulation of the money in the fund.]

19-4    6. The audit report prepared for the fund must include a statement by

19-5  the auditor whether the local government has complied with the provisions

19-6  of this [subsection.

19-7    6.] section.

19-8    7.  Any transfer of money from a fund established pursuant to this

19-9  section must be completed within 90 days after the end of the fiscal year

19-10  in which the natural disaster for which the fund was established occurs.

19-11  8. As used in this section:

19-12  (a) “Grant match” has the meaning ascribed to it in NRS 353.2725.

19-13  (b) “Natural disaster” means a fire, flood, earthquake, drought or any

19-14  other occurrence that:

19-15     (1) Results in widespread or severe damage to property or injury to or

19-16  the death of persons within the jurisdiction of the local government; and

19-17     (2) As determined by the governing body of the local government,

19-18  requires immediate action to protect the health, safety and welfare of

19-19  persons residing within the jurisdiction of the local government.

19-20  Sec. 39.  NRS 354.6116 is hereby amended to read as follows:

19-21  354.6116  A local government, except a school district, that receives

19-22  revenue from taxes ad valorem from a lessee or user of property which is

19-23  taxable pursuant to NRS 361.157 or 361.159 shall deposit the revenue in or

19-24  transfer the revenue to one or more of the funds established by the local

19-25  government pursuant to NRS [354.611,] 354.6113 or 354.6115 and use that

19-26  revenue only for the purposes authorized by those sections if the revenue

19-27  was received in:

19-28  1.  A fiscal year after the fiscal year the taxes were owed; or

19-29  2.  The fiscal year the taxes are owed and the taxes were excluded from

19-30  the estimate of revenue from taxes ad valorem for the local government

19-31  pursuant to NRS 354.597.

19-32  Sec. 40.  NRS 354.6117 is hereby amended to read as follows:

19-33  354.6117  1.  Except as otherwise provided in subsection 2, the total

19-34  amount of money which may be transferred in a fiscal year from the

19-35  general fund of a local government to the funds established pursuant to

19-36  NRS [354.611,] 354.6113 and 354.6115 must not exceed 10 percent of the

19-37  total amount of the budgeted expenditures of the general fund, plus any

19-38  money transferred from the general fund, other than the money transferred

19-39  to those funds, for that fiscal year.

19-40  2.  Any money that a local government, pursuant to NRS 354.6116,

19-41  deposits in or transfers to one or more of the funds established by the local

19-42  government pursuant to NRS [354.611,] 354.6113 or 354.6115:

19-43  (a) Is not subject to the limitation on the amount of money that a local

19-44  government may transfer to those funds pursuant to subsection 1.

19-45  (b) Must not be included in the determination of the total amount of

19-46  money transferred to those funds for the purposes of the limitation set forth

19-47  in subsection 1.

 

 

20-1    Sec. 41.  NRS 354.612 is hereby amended to read as follows:

20-2    354.612  1.  A local government [may] shall establish by resolution

20-3  one or more [internal service] funds. The resolution establishing the fund

20-4  must set forth in detail:

20-5    (a) The object or purpose of the fund;

20-6    (b) The resources to be used to establish the fund;

20-7    (c) The source or sources from which the fund will be replenished;

20-8  [and]

20-9    (d) The method for controlling expenses and establishing revenues of

20-10  the fund; and

20-11  (e) The method by which a determination will be made as to whether

20-12  the balance, reserve or retained earnings of the fund are reasonable and

20-13  necessary to carry out the purpose of the fund.

20-14  2.  Financial statements and other schedules required for funds must

20-15  be prepared in accordance with generally accepted accounting principles.

20-16  3.  Upon adoption of a resolution establishing a fund, a local

20-17  government shall provide an executed copy of the resolution to the

20-18  department of taxation.

20-19  4.  In establishing [an internal service] a proprietary fund, a local

20-20  government shall, besides furnishing working capital for the fund, provide

20-21  that one of its financial objectives is to recover the complete costs of

20-22  operation of the activity being financed, including overhead, without

20-23  producing any significant amount of profit in the long run.

20-24  [3.  Financial statements and other schedules required for internal

20-25  service funds must be prepared in accordance with generally accepted

20-26  accounting principles.]

20-27  5.  Each enterprise fund established must account for all charges

20-28  properly related to the purpose of the fund, including, without limitation,

20-29  debt service, capital outlay and operating expenses. No transfer of equity

20-30  that may be made available to other funds or functions may be declared

20-31  in an enterprise fund until after all proper obligations have been charged

20-32  against the fund.

20-33  Sec. 42.  NRS 354.620 is hereby amended to read as follows:

20-34  354.620  Any unencumbered balance on [a] an accrual or modified

20-35  accrual basis or any unexpended balance on a cash basis remaining to the

20-36  credit of any appropriation shall lapse at the end of the fiscal year and shall

20-37  revert to the available balance of the fund from which appropriated.

20-38  Sec. 43.  NRS 354.624 is hereby amended to read as follows:

20-39  354.624  1.  Each local government shall provide for an annual audit

20-40  of all of its[:

20-41  (a) Funds;

20-42  (b) Account groups; and

20-43  (c) Separate accounts established pursuant to NRS 354.603.] financial

20-44  statements.

20-45  A local government may provide for more frequent audits as it deems

20-46  necessary. Except as otherwise provided in subsection 2, each annual audit

20-47  must be concluded and the report of the audit submitted to the governing

20-48  body as provided in subsection [5] 6 not later than 5 months after the close

20-49  of the fiscal year for which the audit is conducted. An extension of this

21-1  time may be granted by the department of taxation to any local government

21-2  that submits an application for an extension to the department. If the local

21-3  government fails to provide for an audit in accordance with the provisions

21-4  of this section, the department of taxation shall cause the audit to be made

21-5  at the expense of the local government. All audits must be conducted by a

21-6  certifiedpublic accountant [who is certified or registered] or by a

21-7  partnership or professional corporation that is registered pursuant to

21-8  chapter 628 of NRS.

21-9    2.  The annual audit of a school district must:

21-10  (a) Be concluded and the report submitted to the board of trustees as

21-11  provided in subsection [5] 6 not later than 4 months after the close of the

21-12  fiscal year for which the audit is conducted.

21-13  (b) If the school district has more than 150,000 pupils enrolled, include

21-14  an audit of the expenditure by the school district of [all] public money

21-15  used:

21-16     (1) To design, construct or purchase new buildings for schools or

21-17  related facilities;

21-18     (2) To enlarge, remodel or renovate existing buildings for schools or

21-19  related facilities; and

21-20     (3) To acquire sites for building schools or related facilities, or other

21-21  real property for purposes related to schools.

21-22  3.  The governing body may, without requiring competitive bids,

21-23  designate the auditor or firm annually. The auditor or firm must be

21-24  designated and notification of the auditor or firm designated must be sent

21-25  to the department of taxationnot later than 3 months before the close of

21-26  the fiscal year for which the audit is to be made.

21-27  4.  Each annual audit must cover the business of the local government

21-28  during the full fiscal year. It must be a financial audit conducted in

21-29  accordance with generally accepted auditing standards[, including

21-30  comment] in the United States, including, findings on compliance with

21-31  statutes and regulations[, recommendations for improvements and any

21-32  other comments deemed pertinent by the auditor, including his] and an

21-33  expression of opinion on the financial statements. The department of

21-34  taxation shall prescribe the form of the financial statements, and the chart

21-35  of accounts must be as nearly as possible the same as the chart that is used

21-36  in the preparation and publication of the annual budget. The report of the

21-37  audit must include:

21-38  (a) A schedule of all fees imposed by the local government which were

21-39  subject to the provisions of NRS 354.5989; and

21-40  (b) A comparison of the operations of the local government with the

21-41  approved budget, including a statement from the auditor that indicates

21-42  whether the governing body has taken action [by adoption as

21-43  recommended, by adoption with modifications or by rejection on any

21-44  deficiencies in operations and recommendations for improvements which

21-45  were noted or made in previous reports;

21-46  (c)] on the audit report for the prior year.

21-47  5.  Each local government shall provide to its auditor:

21-48  (a)A statement [from the auditor that indicates] indicating whether

21-49  each of the following funds established by the local government is being

22-1  used expressly for the purposes for which it was created, in the form

22-2  required by NRS 354.6241:

22-3      (1) An enterprise fund.

22-4      (2) An internal service fund.

22-5      (3) A [trust or agency] fiduciary fund.

22-6      (4) A self-insurance fund.

22-7      (5) A fund whose balance is required by law to be:

22-8        (I) Used only for a specific purpose other than the payment of

22-9  compensation to a bargaining unit, as defined in NRS 288.028; or

22-10       (II) Carried forward to the succeeding fiscal year in any designated

22-11  amount; and

22-12  [(d)] (b) A list and description of any property conveyed to a nonprofit

22-13  organization pursuant to NRS 244.287 or 268.058.

22-14  [5.  The recommendations and the summary of the narrative comments]

22-15  6.  The opinion and findings of the auditor contained in the report of

22-16  the audit must be [read in full] presented at a meeting of the governing

22-17  body held not more than 30 days after the report is submitted to it.

22-18  Immediately thereafter, the entire report, together with [any related letter to

22-19  the governing body] the management letterrequired by generally accepted

22-20  auditing standards in the United States or by regulations adopted pursuant

22-21  to NRS 354.594, must be filed as a public record with:

22-22  (a) The clerk or secretary of the governing body;

22-23  (b) The county clerk;

22-24  (c) The department of taxation; and

22-25  (d) In the case of a school district, the department of education.

22-26  [6.] 7.  If an auditor finds evidence of fraud or dishonesty in the

22-27  financial statements of a local government, the auditor shall report such

22-28  evidence to the appropriate level of management in the local government.

22-29  8. The governing body shall act upon the recommendations of the

22-30  report of the audit within 3 months after receipt of the report, unless

22-31  prompter action is required concerning violations of law or regulation, by

22-32  setting forth in its minutes its intention to adopt the recommendations, to

22-33  adopt them with modifications or to reject them for reasons shown in the

22-34  minutes.

22-35  Sec. 44.  NRS 354.6241 is hereby amended to read as follows:

22-36  354.6241  1.  The statement required by paragraph [(c)] (a) of

22-37  subsection [4] 5 of NRS 354.624 must indicate for each fund set forth in

22-38  that paragraph:

22-39  (a) Whether the fund is being used in accordance with the provisions of

22-40  this chapter.

22-41  (b) Whether the fund is being administered in accordance with generally

22-42  accepted accounting procedures.

22-43  (c) Whether the reserve in the fund is limited to an amount that is

22-44  reasonable and necessary to carry out the purposes of the fund.

22-45  (d) The sources of revenues available for the fund during the fiscal year,

22-46  including transfers from any other funds.

22-47  (e) The statutory and regulatory requirements applicable to the fund.

22-48  (f) The balance and retained earnings of the fund.

23-1    2.  To the extent that the reserve in any fund set forth in paragraph [(c)]

23-2  (a)of subsection [4] 5 of NRS 354.624 exceeds the amount that is

23-3  reasonable and necessary to carry out the purposes for which the fund was

23-4  created, the reserve may be expended by the local government pursuant to

23-5  the provisions of chapter 288 of NRS.

23-6    Sec. 45.  NRS 354.626 is hereby amended to read as follows:

23-7    354.626  1.  No governing body or member thereof, officer, office,

23-8  department or agency may, during any fiscal year, expend or contract to

23-9  expend any money or incur any liability, or enter into any contract which

23-10  by its terms involves the expenditure of money, in excess of the amounts

23-11  appropriated for that function, other than bond repayments, medium-term

23-12  obligation repayments, and any other long-term contract expressly

23-13  authorized by law. Any officer or employee of a local government who

23-14  willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a

23-15  misdemeanor, and upon conviction thereof ceases to hold his office or

23-16  employment. Prosecution for any violation of this section may be

23-17  conducted by the attorney general, or, in the case of incorporated cities,

23-18  school districts or special districts, by the district attorney.

23-19  2.  Without limiting the generality of the exceptions contained in

23-20  subsection 1, the provisions of this section specifically do not apply to:

23-21  (a) Purchase of [comprehensive general liability policies] coverage and

23-22  professional services directly related to a program of insurance which

23-23  require an audit at the end of the term thereof.

23-24  (b) Long-term cooperative agreements as authorized by chapter 277 of

23-25  NRS.

23-26  (c) Long-term contracts in connection with planning and zoning as

23-27  authorized by NRS 278.010 to 278.630, inclusive.

23-28  (d) Long-term contracts for the purchase of utility service such as, but

23-29  not limited to, heat, light, sewerage, power, water and telephone service.

23-30  (e) Contracts between a local government and an employee covering

23-31  professional services to be performed within 24 months following the date

23-32  of such contract or contracts entered into between local government

23-33  employers and employee organizations.

23-34  (f) Contracts between a local government and any person for the

23-35  construction or completion of public works, money for which has been or

23-36  will be provided by the proceeds of a sale of bonds or medium-term

23-37  obligations and that are entered into by the local government after:

23-38     (1) Any election required for the approval of the bonds has been held;

23-39     (2) Any approvals by any other governmental entity required to be

23-40  obtained before the bonds or medium-term obligations can be issued have

23-41  been obtained; and

23-42     (3) The ordinance or resolution that specifies each of the terms of the

23-43  bonds or medium-term obligations, except those terms that are set forth in

23-44  paragraphs (a) to (e), inclusive, of subsection 2 of NRS 350.165, has been

23-45  adopted.

23-46  Neither the fund balance of a governmental fund nor the equity balance in

23-47  any proprietary fund may be used unless appropriated in a manner

23-48  provided by law.

24-1    (g) Contracts which are entered into by a local government and

24-2  delivered to any person solely for the purpose of acquiring supplies ,

24-3  services, and equipment necessarily ordered in the current fiscal year for

24-4  use in an ensuing fiscal year, and which, under the method of accounting

24-5  adopted by the local government, will be charged against an appropriation

24-6  of a subsequent fiscal year. Purchase orders evidencing such contracts are

24-7  public records available for inspection by any person on demand.

24-8    (h) Long-term contracts for the furnishing of television or FM radio

24-9  broadcast translator signals as authorized by NRS 269.127.

24-10  (i) The receipt and proper expenditure of money received pursuant to a

24-11  grant awarded by an agency of the Federal Government.

24-12  (j) The incurrence of obligations beyond the current fiscal year under a

24-13  lease or contract for installment purchase which contains a provision that

24-14  the obligation incurred thereby is extinguished by the failure of the

24-15  governing body to appropriate money for the ensuing fiscal year for the

24-16  payment of the amounts then due.

24-17  Sec. 46.  NRS 354.655 is hereby amended to read as follows:

24-18  354.655  As used in NRS 354.655 to 354.725, inclusive, unless the

24-19  context requires otherwise:

24-20  1.  “Committee” means the committee on local government finance.

24-21  2.  “Department” means the department of taxation.

24-22  3.  “Executive director” means the executive director of the department

24-23  of taxation.

24-24  4.  “Local government” means any local government subject to the

24-25  provisions of the Local Government Budget and Finance Act.

24-26  5.  The words and terms defined in the Local Government Budget and

24-27  FinanceAct have the meanings ascribed to them in that act.

24-28  Sec. 47.  NRS 354.665 is hereby amended to read as follows:

24-29  354.665  1.  If a local government does not file a statement, report or

24-30  other document as required by the provisions of NRS 350.0035, 354.602,

24-31  354.6025, 354.624, 354.6245 or 387.303 within 15 days after the day on

24-32  which it was due, the executive director shall notify the governing body of

24-33  the local government in writing that the report is delinquent. The

24-34  notification must be noted in the minutes of the first meeting of the

24-35  governing body following transmittal of the notification.

24-36  2.  If the required report is not received by the department within 45

24-37  days after the day on which the report was due, the executive director shall

24-38  notify the governing body that the presence of a representative of the

24-39  governing body is required at the next practicable scheduled meeting of the

24-40  [Nevada tax commission] committee to explain the reason that the report

24-41  has not been filed. The notice must be transmitted to the governing body at

24-42  least 5 days before the date on which the meeting will be held.

24-43  3.  If an explanation satisfactory to the [Nevada tax commission]

24-44  committeeis not provided at the meeting as requested in the notice and an

24-45  arrangement is not made for the submission of the report, the [commission]

24-46  committeemay instruct the executive director to request that the state

24-47  treasurer withhold from the local government the next distribution [of the

24-48  supplemental city-county relief tax] from the local government tax

24-49  distribution accountif the local government is otherwise entitled to

25-1  receive such a distribution or of the Local School Support Tax if the local

25-2  government is a school district. Upon receipt of such a request, the state

25-3  treasurer shall withhold the payment and all future payments until he is

25-4  notified by the executive director that the report has been received by the

25-5  department.

25-6    Sec. 48.  NRS 354.685 is hereby amended to read as follows:

25-7    354.685  1.  If the department finds that one or more of the following

25-8  conditions exist in any local government, after giving consideration to the

25-9  severity of the condition, it may determine that one or more hearings

25-10  should be conducted to determine the extent of the problem and to

25-11  determine whether a recommendation of severe financial emergency

25-12  should be made to the Nevada tax commission:

25-13  (a) Required financial reports have not been filed or are consistently

25-14  late.

25-15  (b) The audit report reflects the unlawful expenditure of money in

25-16  excess of the amount appropriated in violation of the provisions of
NRS 354.626.

25-17  (c) The audit report shows funds with deficit fund balances.

25-18  (d) The local government has incurred debt beyond its ability to repay.

25-19  (e) The local government has not corrected violations of statutes or

25-20  regulations adopted pursuant thereto as noted in the audit report.

25-21  (f) The local government has serious internal control problems noted in

25-22  the audit report which have not been corrected.

25-23  (g) The local government has a record of being late in its payments for

25-24  services and supplies.

25-25  (h) The local government has had insufficient cash to meet required

25-26  payroll payments in a timely manner.

25-27  (i) The local government has borrowed money or entered into long-term

25-28  lease arrangements without following the provisions of NRS or regulations

25-29  adopted pursuant thereto.

25-30  (j) The governing body of the local government has failed to correct

25-31  problems after it has been notified of such problems by the department.

25-32  (k) The local government has not separately accounted for its individual

25-33  funds as required by chapter 354 of NRS.

25-34  (l) The local government has invested its money in financial instruments

25-35  in violation of the provisions of chapter 355 of NRS.

25-36  (m) The local government is in violation of any covenant in connection

25-37  with any debt issued by the local government.

25-38  (n) The local government has not made bond and lease payments in

25-39  accordance with the approved payment schedule.

25-40  (o) The local government has failed to control its assets such that large

25-41  defalcations have occurred which have impaired the financial condition of

25-42  the local government.

25-43  (p) The local government has recognized sizeable losses as a result of

25-44  the imprudent investment of money.

25-45  (q) The local government has allowed its accounting system and

25-46  recording of transactions to deteriorate to such an extent that it is not

25-47  possible to measure accurately the results of operations or to ascertain the

26-1  financial position of the local government without a reconstruction of

26-2  transactions.

26-3    (r) The local government has consistently issued checks not covered by

26-4  adequate deposits.

26-5    (s) The local government has loaned and borrowed money between

26-6  funds without following the proper procedures.

26-7    (t) The local government has expended money in violation of the

26-8  provisions governing the expenditure of that money.

26-9    (u) Money restricted for any specific use has been expended in violation

26-10  of the terms and provisions relating to the receipt and expenditure of that

26-11  money.

26-12  (v) Money has been withheld in accordance with the provisions of
NRS 354.665.

26-13  (w) If the local government is a school district, a loan has been made

26-14  from the state permanent school fund to the school district pursuant to
NRS 387.526.

26-15  (x) An employer in the county that accounts for more than 15 percent

26-16  of the employment in the county has closed or significantly reduced

26-17  operations.

26-18  (y) The local government has experienced a cumulative decline of 10

26-19  percent in population or assessed valuation for the past 2 years.

26-20  (z) The ending balance in the general fund of the local government

26-21  has declined for the past 2 years.

26-22  (aa) The local government has failed to pay, in a timely manner,

26-23  contributions to the public employees’ retirement system, workers’

26-24  compensation or payroll taxes or fails to pay, at any time, a payment

26-25  required pursuant to the Federal Insurance Contributions Act.

26-26  2.  If the department determines that a condition listed in subsection 1

26-27  exists, the department shall:

26-28  (a) Notify the local government about the determination;

26-29  (b) Request from the local government any information that the

26-30  department deems to be appropriate to determine the extent of the

26-31  condition; and

26-32  (c) Require the local government to formulate a plan of corrective

26-33  action to mitigate the possible financial emergency.

26-34  3.  Within 45 days after receiving notification pursuant to subsection

26-35  2, a local government shall submit to the committee any information

26-36  requested by the department and a plan of corrective action.

26-37  4.  The committee shall:

26-38  (a) Review a plan of corrective action submitted by a local

26-39  government;

26-40  (b) Provide observations and recommendations for the local

26-41  government; and

26-42  (c) If the committee deems necessary, periodically review the status of

26-43  the financial operations of the local government.

26-44  5.  The department shall report the observations and

26-45  recommendations of the committee to the Nevada tax commission.

26-46  6. In addition to any notice otherwise required, the department shall

26-47  give notice of any hearing held pursuant to subsection 1 to the governing

27-1  body of each local government whose jurisdiction overlaps with the

27-2  jurisdiction of the local government whose financial condition will be

27-3  considered at least 10 days before the date on which the hearing will be

27-4  held.

27-5    [3.] 7.  If the department, following the hearing or hearings,

27-6  determines that a recommendation of severe financial emergency should be

27-7  made to the Nevada tax commission, it shall make such a recommendation

27-8  as soon as practicable. Upon receipt of such a recommendation, the Nevada

27-9  tax commission shall hold a hearing at which the department, the local

27-10  government whose financial condition will be considered and each local

27-11  government whose jurisdiction overlaps with the jurisdiction of the local

27-12  government whose financial condition will be considered are afforded an

27-13  opportunity to be heard. If, after the hearing, the Nevada tax commission

27-14  determines that a severe financial emergency exists, it shall require by

27-15  order that the department take over the management of the local

27-16  government as soon as practicable.

27-17  8.  As used in this section, “Federal Insurance Contributions Act”

27-18  means subchapter A of chapter 9 of the Internal Revenue Code of 1939

27-19  and subchapters A and B of chapter 21 of the Internal Revenue Code of

27-20  1954, as such codes have been and may from time to time be amended.

27-21  Sec. 49.  NRS 354.695 is hereby amended to read as follows:

27-22  354.695  1.  As soon as practicable after taking over the management

27-23  of a local government, the department shall, with the approval of the

27-24  committee:

27-25  (a) Establish and implement a management policy and a financing plan

27-26  for the local government;

27-27  (b) Provide for the appointment of a financial manager for the local

27-28  government who is qualified to manage the fiscal affairs of the local

27-29  government;

27-30  (c) Provide for the appointment of any other persons necessary to

27-31  enable the local government to provide the basic services for which it was

27-32  created in the most economical and efficient manner possible;

27-33  (d) Establish an accounting system and separate accounts in a bank or

27-34  credit union, if necessary, to receive and expend all money and assets of

27-35  the local government;

27-36  (e) Impose such hiring restrictions as deemed necessary after

27-37  considering the recommendations of the financial manager;

27-38  (f) Negotiate and approve all contracts entered into by or on behalf of

27-39  the local government before execution and enter into such contracts on

27-40  behalf of the local government as the department deems necessary;

27-41  (g) Negotiate and approve all collective bargaining contracts to be

27-42  entered into by the local government, except issues submitted to a

27-43  factfinder whose findings and recommendations are final and binding

27-44  pursuant to the provisions of the Local Government Employee-

27-45  Management Relations Act;

27-46  (h) Approve all expenditures of money from any fund or account and all

27-47  transfers of money from one fund to another;

27-48  (i) Employ such technicians as are necessary for the improvement of the

27-49  financial condition of the local government;

28-1    (j) Meet with the creditors of the local government and formulate a debt

28-2  liquidation program;

28-3    (k) Approve the issuance of bonds or other forms of indebtedness by the

28-4  local government;

28-5    (l) Discharge any of the outstanding debts and obligations of the local

28-6  government; and

28-7    (m) Take any other actions necessary to ensure that the local

28-8  government provides the basic services for which it was created in the most

28-9  economical and efficient manner possible.

28-10  2.  The department may provide for reimbursement from the local

28-11  government for the expenses [it] the department incurs in managing the

28-12  local government. If such reimbursement is not possible, the department

28-13  may request an allocation by the interim finance committee from the

28-14  contingency fund pursuant to NRS 353.266, 353.268 and 353.269.

28-15  3.  The governing body of a local government which is being managed

28-16  by the department pursuant to this section may make recommendations to

28-17  the department or the financial manager concerning the management of the

28-18  local government.

28-19  4.  Each state agency, board, department, commission, committee or

28-20  other entity of the state shall provide such technical assistance concerning

28-21  the management of the local government as is requested by the department.

28-22  5.  The department may delegate any of the powers and duties imposed

28-23  by this section to the financial manager appointed pursuant to paragraph

28-24  (b) of subsection 1.

28-25  6.  Except as otherwise provided in NRS 354.723 and 450.760, once

28-26  the department has taken over the management of a local government

28-27  pursuant to the provisions of subsection 1, that management may only be

28-28  terminated pursuant to NRS 354.725.

28-29  Sec. 50.  NRS 354.705 is hereby amended to read as follows:

28-30  354.705  1.  As soon as practicable after the department takes over the

28-31  management of a local government, the executive director shall:

28-32  (a) Determine the total amount of expenditures necessary to allow the

28-33  local government to perform the basic functions for which it was created;

28-34  (b) Determine the amount of revenue reasonably expected to be

28-35  available to the local government; and

28-36  (c) Consider any alternative sources of revenue available to the local

28-37  government.

28-38  2.  If the executive director determines that the available revenue is not

28-39  sufficient to provide for the payment of required debt service and operating

28-40  expenses, he may submit his findings to the committee who shall review

28-41  the determinations made by the executive director. If the committee

28-42  determines that additional revenue is needed, it shall prepare a

28-43  recommendation to the Nevada tax commission as to which one or more of

28-44  the following additional taxes or charges should be imposed by the local

28-45  government:

28-46  (a) The levy of a property tax up to a rate which when combined with

28-47  all other overlapping rates levied in the state does not exceed $4.50 on each

28-48  $100 of assessed valuation.

29-1    (b) An additional tax on transient lodging at a rate not to exceed 1

29-2  percent of the gross receipts from the rental of transient lodging within the

29-3  boundaries of the local government upon all persons in the business of

29-4  providing lodging. Any such tax must be collected and administered in the

29-5  same manner as all other taxes on transient lodging are collected by or for

29-6  the local government.

29-7    (c) Additional service charges appropriate to the local government.

29-8    (d) If the local government is a county or has boundaries that are

29-9  conterminous with the boundaries of the county:

29-10     (1) An additional tax on the gross receipts from the sale or use of

29-11  tangible personal property not to exceed one quarter of 1 percent

29-12  throughout the county. The ordinance imposing any such tax must include

29-13  provisions in substance which comply with the requirements of subsections

29-14  2 to 5, inclusive, of NRS 377A.030.

29-15     (2) An additional motor vehicle privilege tax of not more than 1 cent

29-16  on each $1 of valuation of the vehicle for the privilege of operating upon

29-17  the public streets, roads and highways of the county on each vehicle based

29-18  in the county except those vehicles exempt from the motor vehicle

29-19  privilege tax imposed pursuant to chapter 371 of NRS or a vehicle subject

29-20  to NRS 706.011 to 706.861, inclusive, which is engaged in interstate or

29-21  intercounty operations. As used in this subparagraph, “based” has the

29-22  meaning ascribed to it in NRS 482.011.

29-23  3.  Upon receipt of the plan from the committee, a panel consisting of

29-24  three members of the Nevada tax commission appointed by the Nevada

29-25  tax commission and three members of the committee appointed by the

29-26  committeeshall hold a public hearing at a location within the boundaries of

29-27  the local government in which the severe financial emergency exists after

29-28  giving public notice of the hearing at least 10 days before the date on

29-29  which the hearing will be held. In addition to the public notice, the

29-30  [Nevada tax commission] panel shall give notice to the governing body of

29-31  each local government whose jurisdiction overlaps with the jurisdiction of

29-32  the local government in which the severe financial emergency exists.

29-33  4.  After the public hearing[,] conducted pursuant to subsection 3, the

29-34  Nevada tax commission may adopt the plan as submitted or adopt a revised

29-35  plan. Any plan adopted pursuant to this section must include the duration

29-36  for which any new or increased taxes or charges may be collected which

29-37  must not exceed 5 years.

29-38  5.  Upon adoption of the plan by the Nevada tax commission, the local

29-39  government in which the severe financial emergency exists shall impose or

29-40  cause to be imposed the additional taxes and charges included in the plan

29-41  for the duration stated in the plan or until the severe financial emergency

29-42  has been determined by the Nevada tax commission to have ceased to

29-43  exist.

29-44  6.  The allowed revenue from taxes ad valorem determined pursuant to

29-45  NRS 354.59811 does not apply to any additional property tax levied

29-46  pursuant to this section.

29-47  7.  If a plan fails to satisfy the expenses of the local government to the

29-48  extent expected, the committee shall report such failure to:

29-49  (a) The county for consideration of absorption of services; or

30-1    (b) If the local government is a county, to the next regular session of

30-2  the legislature.

30-3    Sec. 51.  NRS 4.035 is hereby amended to read as follows:

30-4    4.035  1.  The court administrator shall, at the direction of the chief

30-5  justice of the supreme court, arrange for the giving of instruction, at the

30-6  National Judicial College in Reno, Nevada, or elsewhere:

30-7    (a) In court procedure, recordkeeping and the elements of substantive

30-8  law appropriate to a justice’s court, to each justice of the peace who is first

30-9  elected or appointed to office after July 1, 1971, and to other justices of the

30-10  peace who so desire and who can be accommodated, between each general

30-11  election and January 1 next following.

30-12  (b) In statutory amendments and other developments in the law

30-13  appropriate to a justice’s court, to all justices of the peace at least once

30-14  each year.

30-15  2.  Each county shall pay to the supreme court the county’s pro rata

30-16  share of the costs of that instruction as budgeted for pursuant to the Local

30-17  Government Budget and Finance Act.

30-18  3.  The supreme court shall deposit with the state treasurer, for credit to

30-19  the appropriate account of the supreme court, all money received pursuant

30-20  to subsection 2.

30-21  Sec. 52.  NRS 5.025 is hereby amended to read as follows:

30-22  5.025  1.  The court administrator shall, at the direction of the chief

30-23  justice of the supreme court, arrange for the giving of instruction, at the

30-24  National Judicial College in Reno, Nevada, or elsewhere:

30-25  (a) In court procedure, recordkeeping and the elements of substantive

30-26  law appropriate to a municipal court, to each municipal judge who is first

30-27  elected or appointed to office after July 1, 1971, and to other such judges

30-28  who so desire and who can be accommodated, between each election

30-29  designated for the election of such judges and the date of entering office.

30-30  (b) In statutory amendments and other developments in the law

30-31  appropriate to a municipal court, to all such judges at convenient intervals.

30-32  2.  Each city shall pay to the supreme court the city’s pro rata share of

30-33  the costs of such instruction as budgeted for pursuant to the Local

30-34  Government Budget and Finance Act.

30-35  3.  The supreme court shall deposit with the state treasurer, for credit to

30-36  the appropriate account of the supreme court, all money received pursuant

30-37  to subsection 2.

30-38  Sec. 53.  NRS 41.075 is hereby amended to read as follows:

30-39  41.075  No cause of action may be brought against the committee on

30-40  local government finance created pursuant to [NRS 266.0165,] section 4 of

30-41  this act,or any of its members, which is based upon:

30-42  1.  Any act or omission in the execution of, or otherwise in conjunction

30-43  with, the execution of NRS 354.655 to 354.725, inclusive, or any policy or

30-44  plan adopted pursuant thereto, whether or not such statute, policy or plan is

30-45  valid, if the statute, policy or plan has not been declared invalid by a court

30-46  of competent jurisdiction; or

30-47  2.  The exercise or performance or the failure to exercise or perform a

30-48  discretionary function or duty on the part of the committee on local

31-1  government finance or member thereof, whether or not the discretion

31-2  involved is abused.

31-3    Sec. 54.  NRS 218.53881 is hereby amended to read as follows:

31-4    218.53881  1.  There is hereby established a legislative committee to

31-5  study the distribution among local governments of revenue from state and

31-6  local taxes consisting of:

31-7    (a) Two members appointed by the majority leader of the senate from

31-8  the membership of the senate standing committee on government affairs

31-9  during the immediately preceding session of the legislature;

31-10  (b) Two members appointed by the majority leader of the senate from

31-11  the membership of the senate standing committee on taxation during the

31-12  immediately preceding session of the legislature;

31-13  (c) Two members appointed by the speaker of the assembly from the

31-14  membership of the assembly standing committee on government affairs

31-15  during the immediately preceding session of the legislature; and

31-16  (d) Two members appointed by the speaker of the assembly from the

31-17  membership of the assembly standing committee on taxation during the

31-18  immediately preceding session of the legislature.

31-19  2.  The committee shall consult with an advisory committee consisting

31-20  of the executive director of the department of taxation and 10 members

31-21  who are representative of various geographical areas of the state and are

31-22  appointed for terms of 2 years commencing on July 1 of each odd-

31-23  numbered year as follows:

31-24  (a) One member of the committee on local government finance created

31-25  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-26  League of Cities;

31-27  (b) One member of the committee on local government finance created

31-28  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-29  Association of Counties;

31-30  (c) One member of the committee on local government finance created

31-31  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-32  School Trustees Association;

31-33  (d) Three members involved in the government of a county appointed

31-34  by the Nevada Association of Counties;

31-35  (e) Three members involved in the government of an incorporated city

31-36  appointed by the Nevada League of Cities; and

31-37  (f) One member who is a member of a board of trustees for a general

31-38  improvement district appointed by the legislative
commission.

31-39  The members of the advisory committee are nonvoting members of the

31-40  committee. When meeting as the advisory committee, the members shall

31-41  comply with the provisions of chapter 241 of NRS.

31-42  3.  The legislative members of the committee shall elect a chairman

31-43  from one house of the legislature and a vice chairman from the other house.

31-44  Each chairman and vice chairman holds office for a term of 2 years

31-45  commencing on July 1 of each odd-numbered year.

31-46  4.  Any member of the committee who is not a candidate for reelection

31-47  or who is defeated for reelection continues to serve until the next session of

31-48  the legislature convenes.

32-1    5.  Vacancies on the committee must be filled in the same manner as

32-2  original appointments.

32-3    6.  The committee shall report annually to the legislative commission

32-4  concerning its activities and any recommendations.

32-5    Sec. 55.  NRS 244A.615 is hereby amended to read as follows:

32-6    244A.615  As provided by law, the county fair and recreation board

32-7  shall comply with the provisions of the Local Government Budget and

32-8  FinanceAct.

32-9    Sec. 56.  NRS 271.536 is hereby amended to read as follows:

32-10  271.536  In lieu of issuing bonds or interim securities to defray the cost

32-11  of an improvement to be constructed by way of a special improvement

32-12  district, the governing body may advance money to cover that cost from:

32-13  1.  The general fund of the municipality, if the cost of the improvement

32-14  does not exceed $300,000; or

32-15  2.  [An internal service] A proprietary fund, if the municipality has

32-16  established [an internal service] a proprietary fund for that purpose

32-17  pursuant to NRS 354.612.

32-18  Sec. 57.  NRS 278.806 is hereby amended to read as follows:

32-19  278.806  1.  The agency shall establish and maintain an office within

32-20  the state. The agency may rent property and equipment. Every plan,

32-21  ordinance and other record of the agency which is of such nature as to

32-22  constitute a public record under the law of the State of Nevada shall be

32-23  open to inspection and copying during regular office hours.

32-24  2.  The agency shall be deemed to be a local government for the

32-25  purposes of the Local Government Budget and Finance Act.

32-26  Sec. 58.  NRS 360.750 is hereby amended to read as follows:

32-27  360.750  1.  A person who intends to locate or expand a business in

32-28  this state may apply to the commission on economic development for a

32-29  partial abatement of one or more of the taxes imposed on the new or

32-30  expanded business pursuant to chapter 361, 364A or 374 of NRS.

32-31  2.  The commission on economic development shall approve an

32-32  application for a partial abatement if the commission makes the following

32-33  determinations:

32-34  (a) The business is consistent with:

32-35     (1) The state plan for industrial development and diversification that

32-36  is developed by the commission pursuant to NRS 231.067; and

32-37     (2) Any guidelines adopted pursuant to the state plan.

32-38  (b) The applicant has executed an agreement with the commission

32-39  which states that the business will, after the date on which a certificate of

32-40  eligibility for the abatement is issued pursuant to subsection 5, continue in

32-41  operation in this state for a period specified by the commission, which

32-42  must be at least 5 years, and will continue to meet the eligibility

32-43  requirements set forth in this subsection. The agreement must bind the

32-44  successors in interest of the business for the specified period.

32-45  (c) The business is registered pursuant to the laws of this state or the

32-46  applicant commits to obtain a valid business license and all other permits

32-47  required by the county, city or town in which the business operates.

33-1    (d) Except as otherwise provided in NRS 361.0687, if the business is a

33-2  new business in a county or city whose population is 50,000 or more, the

33-3  business meets at least two of the following requirements:

33-4      (1) The business will have 75 or more full-time employees on the

33-5  payroll of the business by the fourth quarter that it is in operation.

33-6      (2) Establishing the business will require the business to make a

33-7  capital investment of at least $1,000,000 in this state.

33-8      (3) The average hourly wage that will be paid by the new business to

33-9  its employees in this state is at least 100 percent of the average statewide

33-10  hourly wage as established by the employment security division of the

33-11  department of employment, training and rehabilitation on July 1 of each

33-12  fiscal year and:

33-13       (I) The business will provide a health insurance plan for all

33-14  employees that includes an option for health insurance coverage for

33-15  dependents of the employees; and

33-16       (II) The cost to the business for the benefits the business provides

33-17  to its employees in this state will meet the minimum requirements for

33-18  benefits established by the commission by regulation pursuant to

33-19  subsection 9.

33-20  (e) Except as otherwise provided in NRS 361.0687, if the business is a

33-21  new business in a county or city whose population is less than 50,000, the

33-22  business meets at least two of the following requirements:

33-23     (1) The business will have 25 or more full-time employees on the

33-24  payroll of the business by the fourth quarter that it is in operation.

33-25     (2) Establishing the business will require the business to make a

33-26  capital investment of at least $250,000 in this state.

33-27     (3) The average hourly wage that will be paid by the new business to

33-28  its employees in this state is at least 100 percent of the average statewide

33-29  hourly wage as established by the employment security division of the

33-30  department of employment, training and rehabilitation on July 1 of each

33-31  fiscal year and:

33-32       (I) The business will provide a health insurance plan for all

33-33  employees that includes an option for health insurance coverage for

33-34  dependents of the employees; and

33-35       (II) The cost to the business for the benefits the business provides

33-36  to its employees in this state will meet the minimum requirements for

33-37  benefits established by the commission by regulation pursuant to

33-38  subsection 9.

33-39  (f) If the business is an existing business, the business meets at least two

33-40  of the following requirements:

33-41     (1) The business will increase the number of employees on its payroll

33-42  by 10 percent more than it employed in the immediately preceding fiscal

33-43  year or by six employees, whichever is greater.

33-44     (2) The business will expand by making a capital investment in this

33-45  state in an amount equal to at least 20 percent of the value of the tangible

33-46  property possessed by the business in the immediately preceding fiscal

33-47  year. The determination of the value of the tangible property possessed by

33-48  the business in the immediately preceding fiscal year must be made by the:

34-1        (I) County assessor of the county in which the business will

34-2  expand, if the business is locally assessed; or

34-3        (II) Department, if the business is centrally assessed.

34-4      (3) The average hourly wage that will be paid by the existing

34-5  business to its new employees in this state is at least 100 percent of the

34-6  average statewide hourly wage as established by the employment security

34-7  division of the department of employment, training and rehabilitation on

34-8  July 1 of each fiscal year and:

34-9        (I) The business will provide a health insurance plan for all new

34-10  employees that includes an option for health insurance coverage for

34-11  dependents of the employees; and

34-12       (II) The cost to the business for the benefits the business provides

34-13  to its new employees in this state will meet the minimum requirements for

34-14  benefits established by the commission by regulation pursuant to

34-15  subsection 9.

34-16  3.  Notwithstanding the provisions of subsection 2, the commission on

34-17  economic development may:

34-18  (a) Approve an application for a partial abatement by a business that

34-19  does not meet the requirements set forth in paragraph (d), (e) or (f) of

34-20  subsection 2;

34-21  (b) Make the requirements set forth in paragraph (d), (e) or (f) of

34-22  subsection 2 more stringent; or

34-23  (c) Add additional requirements that a business must meet to qualify for

34-24  a partial abatement,

34-25  if the commission determines that such action is necessary.

34-26  4.  If a person submits an application to the commission on economic

34-27  development pursuant to subsection 1, the commission shall provide notice

34-28  to the governing body of the county and the city or town, if any, in which

34-29  the person intends to locate or expand a business. The notice required

34-30  pursuant to this subsection must set forth the date, time and location of the

34-31  hearing at which the commission will consider the application.

34-32  5.  If the commission on economic development approves an

34-33  application for a partial abatement, the commission shall immediately

34-34  forward a certificate of eligibility for the abatement to:

34-35  (a) The department;

34-36  (b) The Nevada tax commission; and

34-37  (c) If the partial abatement is from the property tax imposed pursuant to

34-38  chapter 361 of NRS, the county treasurer.

34-39  6.  An applicant for a partial abatement pursuant to this section or an

34-40  existing business whose partial abatement is in effect shall, upon the

34-41  request of the executive director of the commission on economic

34-42  development, furnish the executive director with copies of all records

34-43  necessary to verify that the applicant meets the requirements of subsection

34-44  2.

34-45  7.  If a business whose partial abatement has been approved pursuant to

34-46  this section and is in effect ceases:

34-47  (a) To meet the requirements set forth in subsection 2; or

34-48  (b) Operation before the time specified in the agreement described in

34-49  paragraph (b) of subsection 2,

35-1  the business shall repay to the department or, if the partial abatement was

35-2  from the property tax imposed pursuant to chapter 361 of NRS, to the

35-3  county treasurer, the amount of the exemption that was allowed pursuant to

35-4  this section before the failure of the business to comply unless the Nevada

35-5  tax commission determines that the business has substantially complied

35-6  with the requirements of this section. Except as otherwise provided in
NRS 360.232 and 360.320, the business shall, in addition to the amount of

35-7  the exemption required to be paid pursuant to this subsection, pay interest

35-8  on the amount due at the rate most recently established pursuant to
NRS 99.040 for each month, or portion thereof, from the last day of the

35-9  month following the period for which the payment would have been made

35-10  had the partial abatement not been approved until the date of payment of

35-11  the tax.

35-12  8.  A county treasurer:

35-13  (a) Shall deposit any money that he receives pursuant to subsection 7 in

35-14  one or more of the funds established by a local government of the county

35-15  pursuant to NRS [354.611,] 354.6113 or 354.6115; and

35-16  (b) May use the money deposited pursuant to paragraph (a) only for the

35-17  purposes authorized by NRS [354.611,] 354.6113 and 354.6115.

35-18  9.  The commission on economic development:

35-19  (a) Shall adopt regulations relating to:

35-20     (1) The minimum level of benefits that a business must provide to its

35-21  employees if the business is going to use benefits paid to employees as a

35-22  basis to qualify for a partial abatement; and

35-23     (2) The notice that must be provided pursuant to subsection 4.

35-24  (b) May adopt such other regulations as the commission on economic

35-25  development determines to be necessary to carry out the provisions of this

35-26  section.

35-27  10.  The Nevada tax commission:

35-28  (a) Shall adopt regulations regarding:

35-29     (1) The capital investment that a new business must make to meet the

35-30  requirement set forth in paragraph (d) or (e) of subsection 2; and

35-31     (2) Any security that a business is required to post to qualify for a

35-32  partial abatement pursuant to this section.

35-33  (b) May adopt such other regulations as the Nevada tax commission

35-34  determines to be necessary to carry out the provisions of this section.

35-35  11.  An applicant for an abatement who is aggrieved by a final decision

35-36  of the commission on economic development may petition for judicial

35-37  review in the manner provided in chapter 233B of NRS.

35-38  Sec. 59.  NRS 374A.020 is hereby amended to read as follows:

35-39  374A.020  1.  The collection of the tax imposed by NRS 374A.010

35-40  must be commenced on the first day of the first calendar quarter that begins

35-41  at least 30 days after the last condition in subsection 1 of NRS 374A.010 is

35-42  met.

35-43  2.  The tax must be administered, collected and distributed in the

35-44  manner set forth in chapter 374 of NRS.

35-45  3.  The board of trustees of the school district shall transfer the

35-46  proceeds of the tax imposed by NRS 374A.010 from the county school

35-47  district fund to the fund described in NRS [354.611 which] 354.6105, if the

36-1  fundhas been established by the board of trustees. [The] Any money

36-2  deposited in the fund described in NRS [354.611] 354.6105 pursuant to

36-3  this subsection must be accounted for separately in that fund and must only

36-4  be expended by the board of trustees for the cost of the extraordinary

36-5  maintenance, extraordinary repair and extraordinary improvement of

36-6  school facilities within the county.

36-7    Sec. 60.  NRS 387.3045 is hereby amended to read as follows:

36-8    387.3045  If the ending balance of the general fund of a school district

36-9  has declined for 3 consecutive years, the school district shall submit to the

36-10  committee on local government finance created pursuant to [NRS

36-11  266.0165] section 4 of this act a written explanation of the cause of the

36-12  decline.

36-13  Sec. 61.  NRS 555.215 is hereby amended to read as follows:

36-14  555.215  1.  Upon the preparation and approval of a budget in the

36-15  manner required by the Local Government Budget and Finance Act, the

36-16  board of county commissioners of each county having lands situated in the

36-17  district shall, by resolution, levy an assessment upon all real property in the

36-18  county which is in the weed control district.

36-19  2.  Every assessment so levied is a lien against the property assessed.

36-20  3.  Amounts collected in counties other than the county having the

36-21  larger or largest proportion of the area of the district must be paid over to

36-22  the board of county commissioners of that county for the use of the district.

36-23  4.  The county commissioners of that county may obtain medium-term

36-24  obligations pursuant to NRS 350.085 to 350.095, inclusive, of an amount

36-25  of money not to exceed the total amount of the assessment, to pay the

36-26  expenses of controlling the weeds in the weed control district. The loans

36-27  may be made only after the assessments are levied.

36-28  Sec. 62.  NRS 555.560 is hereby amended to read as follows:

36-29  555.560  1.  Upon the preparation and approval of a budget in the

36-30  manner required by the Local Government Budget and Finance Act, the

36-31  board of county commissioners shall, by resolution, levy an assessment

36-32  upon all real property in the rodent control district.

36-33  2.  Every assessment so levied shall be a lien against the property

36-34  assessed.

36-35  3.  The county commissioners may obtain short-term loans of an

36-36  amount of money not to exceed the total amount of such assessment, for

36-37  the purpose of paying the expenses of controlling the rodents in a rodent

36-38  control district. Such loans may be made only after such assessments are

36-39  levied.

36-40  Sec. 63.  Section 12 of chapter 227, Statutes of Nevada 1975, as

36-41  amended by chapter 351, Statutes of Nevada 1997, at page 1280, is hereby

36-42  amended to read as follows:

36-43           Sec. 12. 1.  The provisions of the Local Government Budget

36-44  and FinanceAct, NRS 354.470 to 354.626, inclusive, as now and

36-45  hereafter amended, apply to the Authority as a local government, and

36-46  the Authority shall, for purposes of that application, be deemed a

36-47  district other than a school district.

36-48           2.  The provisions of NRS 350.085 to 350.095, inclusive, apply to

36-49  the Authority.

37-1    Sec. 64.  Section 2.060 of chapter 470, Statutes of Nevada 1975, at

37-2  page 730 is hereby amended to read as follows:

37-3  Sec. 2.060  Powers of city council: Ordinances, resolutions and

37-4  orders.

37-5  1.  The city council may make and pass all ordinances, resolutions

37-6  and orders not repugnant to the Constitution of the United States or

37-7  the State of Nevada, or to the provisions of Nevada Revised Statutes

37-8  or of this charter, necessary for the municipal government and the

37-9  management of the affairs of the city, and for the execution of all the

37-10  powers vested in the city.

37-11           2.  When power is conferred upon the city council to do and

37-12  perform something, and the manner of exercising such power is not

37-13  specifically provided for, the city council may provide by ordinance

37-14  the manner and details necessary for the full exercise of such power.

37-15           3.  The city council may enforce ordinances by providing penalties

37-16  not to exceed those established by the legislature for misdemeanors.

37-17           4.  The city council shall have such powers, not in conflict with

37-18  the express or implied provisions of this charter, as are conferred upon

37-19  the governing bodies of cities by Nevada Revised Statutes.

37-20           5.  The city council shall annually adopt a budget pursuant to the

37-21  Local Government Budget and Finance Act.

37-22  Sec. 65.  Section 9 of chapter 474, Statutes of Nevada 1977, at page

37-23  970, as last amended by chapter 121, Statutes of Nevada 1991, at page 205,

37-24  is hereby amended to read as follows:

37-25           Sec. 9 1.  Except as otherwise provided in subsection 2, the

37-26  board shall comply with the provisions of the Local Government

37-27  Purchasing Act and the Local Government Budget and Finance Act.

37-28           2.  Except as otherwise provided in section 10.2 of this act, any

37-29  concession agreement entered into by the authority in conformity with

37-30  the provisions of that section need not conform to the requirements of

37-31  the Local Government Purchasing Act.

37-32  Sec. 66. Section 8 of chapter 844, Statutes of Nevada 1989, at page

37-33  2026 is hereby amended to read as follows:

37-34           Sec. 8. The board shall comply with the provisions of the Nevada

37-35  Ethics in Government Law, NRS 241.020, the Local Government

37-36  Purchasing Act and the Local Government Budget and Finance Act.

37-37  Sec. 67.  Section 19 of chapter 572, Statutes of Nevada 1997, at page

37-38  2803 is hereby amended to read as follows:

37-39           Sec. 19. The provisions of [subsection 1 of] NRS 354.599 do not

37-40  apply to any additional expenses of a local government that are related

37-41  to the provisions of this act.

37-42  Sec. 68.  NRS 266.0165, 354.478, 354.480, 354.481, 354.488,

37-43  354.514, 354.522, 354.540, 354.542, 354.551, 354.558, 354.564, 354.566,

37-44  354.576, 354.580, 354.588, 354.595, 354.5984, 354.59871, 354.59872,

37-45  354.606, 354.610, 354.6107, 354.611, 354.6145, 354.615, 354.621 and

37-46  354.622 are hereby repealed.

37-47  Sec. 69.  This act becomes effective on July 1, 2001.

 

38-1  LEADLINES OF REPEALED SECTIONS

 

38-2    266.0165  Committee on local government finance: Creation;

38-3   appointment and terms of members; vacancies.

38-4    354.478  “Account” defined.

38-5    354.480  “Accumulated depreciation” defined.

38-6    354.481  “Activity” defined.

38-7    354.488  “Balance sheet” defined.

38-8    354.514  “Depreciation” defined.

38-9    354.522  “Expenditure adjustment” defined.

38-10  354.540  “Interfund loan” defined.

38-11  354.542  “Interfund transfer” defined.

38-12  354.551  “Object” defined.

38-13  354.558  “Reimbursement” defined.

38-14  354.564  “Revenue adjustment” defined.

38-15  354.566  “Securities” defined.

38-16  354.576  “Taxes” defined.

38-17  354.580  “Trust or agency fund” defined.

38-18  354.588  Powers and duties of governing bodies, officers and

38-19   employees of local governments.

38-20  354.595  Copy of documents concerning budget to be delivered to

38-21   legislative counsel bureau.

38-22  354.5984  Reduction of apportionment or distribution of general

38-23   road fund; intergovernmental and intragovernmental transfers and

38-24   grants and levy of taxes ad valorem.

38-25  354.59871  Nevada tax commission authorized to establish rate for

38-26   levy of taxes ad valorem to provide aid to indigent persons.

38-27  354.59872  Increase in allowed revenue from taxes ad valorem of

38-28   local government that loses revenue by incorporation of new city.

38-29  354.606  Transfer of budget appropriations between accounts.

38-30  354.610  Enterprise fund.

38-31  354.6107  Fund for extraordinary maintenance, repair or

38-32   improvement of capital projects in county whose population is less

38-33   than 100,000.

38-34  354.611  Fund for extraordinary maintenance, repair or

38-35   improvement of local governmental facilities.

38-36  354.6145  Establishment of internal service fund for contributions

38-37   to provide group life, accident and health benefits.

38-38  354.615  Procedure for augmenting budget.

38-39  354.621  Limitation on use of ending balance of general or special

38-40   revenue fund.

38-41  354.622  System of accounting.

 

38-42  H