Senate Bill No. 317–Committee on Government Affairs
CHAPTER..........
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; requiring the use of alternative population totals for calculating distributions from the local government tax distribution account 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.
1-18 5. All vacancies must be filled as soon as practicable by the
1-19 appointing authority of the person who vacated the seat.
1-20 6. If any of the associations listed in subsection 2 cease to exist, the
1-21 appointments required by subsection 2 must be made by the
1-22 association’s successor in interest or, if there is no successor in interest,
1-23 one each by the other appointing authorities.
1-24 Sec. 5. 1. If anticipated resources actually available during a
1-25 budget period exceed those estimated, a local government may augment
1-26 a budget in the following manner:
1-27 (a) If it is desired to augment the appropriations of a fund to which ad
1-28 valorem taxes are allocated as a source of revenue, the governing body
1-29 shall, by majority vote of all members of the governing body, adopt a
1-30 resolution reciting the appropriations to be augmented, and the nature
1-31 of the unanticipated resources intended to be used for the augmentation.
1-32 Before the adoption of the resolution, the governing body shall publish
1-33 notice of its intention to act thereon in a newspaper of general
1-34 circulation in the county for at least one publication. No vote may be
1-35 taken upon the resolution until 3 days after the publication of the notice.
2-1 (b) If it is desired to augment the budget of any fund other than a
2-2 fund described in paragraph (a) or an enterprise or internal service fund,
2-3 the governing body shall adopt, by majority vote of all members of the
2-4 governing body, a resolution providing therefor at a regular meeting of
2-5 the body.
2-6 2. A budget augmentation becomes effective upon delivery to the
2-7 department of taxation of an executed copy of the resolution providing
2-8 therefor.
2-9 3. Nothing in NRS 354.470 to 354.626, inclusive, and sections 2 to 5,
2-10 inclusive, of this act, precludes the amendment of a budget by increasing
2-11 the total appropriation for any fiscal year to include a grant-in-aid, gift
2-12 or bequest to a local unit of government which is required to be used for
2-13 a specific purpose as a condition of the grant. Acceptance of such a
2-14 grant and agreement to the terms imposed by the granting agency or
2-15 person constitutes an appropriation to the purpose specified.
2-16 4. A local government need not file an augmented budget for an
2-17 enterprise or internal service fund with the department of taxation but
2-18 shall include the budget augmentation in the next quarterly report.
2-19 5. Budget appropriations may be transferred between functions,
2-20 funds or contingency accounts in the following manner, if such a
2-21 transfer does not increase the total appropriation for any fiscal year and
2-22 is not in conflict with other statutory provisions:
2-23 (a) The person designated to administer the budget for a local
2-24 government may transfer appropriations within any function.
2-25 (b) The person designated to administer the budget may transfer
2-26 appropriations between functions or programs within a fund, if:
2-27 (1) The governing body is advised of the action at the next regular
2-28 meeting; and
2-29 (2) The action is recorded in the official minutes of the meeting.
2-30 (c) Upon recommendation of the person designated to administer the
2-31 budget, the governing body may authorize the transfer of appropriations
2-32 between funds or from the contingency account, if:
2-33 (1) The governing body announces the transfer of appropriations at
2-34 a regularly scheduled meeting and sets forth the exact amounts to be
2-35 transferred and the accounts, functions, programs and funds affected;
2-36 (2) The governing body sets forth its reasons for the transfer; and
2-37 (3) The action is recorded in the official minutes of the meeting.
2-38 6. In any year in which the legislature by law increases or decreases
2-39 the revenues of a local government, and that increase or decrease was
2-40 not included or anticipated in the local government’s final budget as
2-41 adopted pursuant to NRS 354.598, the governing body of any such local
2-42 government may, within 30 days of adjournment of the legislative
2-43 session, file an amended budget with the department of taxation
2-44 increasing or decreasing its anticipated revenues and expenditures from
2-45 that contained in its final budget to the extent of the actual increase or
2-46 decrease of revenues resulting from the legislative action.
2-47 7. In any year in which the legislature enacts a law requiring an
2-48 increase or decrease in expenditures of a local government, which was
2-49 not anticipated or included in its final budget as adopted pursuant to
2-50 NRS 354.598, the governing body of any such local government may,
3-1 within 30 days of adjournment of the legislative session, file an amended
3-2 budget with the department of taxation providing for an increase or
3-3 decrease in expenditures from that contained in its final budget to the
3-4 extent of the actual amount made necessary by the legislative action.
3-5 8. An amended budget, as approved by the department of taxation, is
3-6 the budget of the local government for the current fiscal year.
3-7 9. On or before January 1 of each school year, each school district
3-8 shall adopt an amendment to its final budget after the count of pupils is
3-9 completed pursuant to subsection 1 of NRS 387.1233. The amendment
3-10 must reflect any adjustments necessary as a result of the completed
3-11 count of pupils.
3-12 Sec. 6. 1. The purpose of NRS 354.655 to 354.725 is to provide
3-13 specific methods for the treatment of delinquent documents, technical
3-14 financial assistance and severe financial emergency.
3-15 2. To accomplish the purpose set forth in subsection 1, the provisions
3-16 of NRS 354.655 to 354.725, inclusive, must be broadly and liberally
3-17 construed.
3-18 Sec. 7. NRS 354.470 is hereby amended to read as follows:
3-19 354.470 NRS 354.470 to 354.626, inclusive, and sections 2 to 5,
3-20 inclusive, of this act, may be cited as the Local Government Budget and
3-21 FinanceAct.
3-22 Sec. 8. NRS 354.472 is hereby amended to read as follows:
3-23 354.472 1. The purposes of NRS 354.470 to 354.626, inclusive, are:
3-24 (a) To establish standard methods and procedures for the preparation,
3-25 presentation, adoption[, administration and appraisal] and administration
3-26 of budgets of all local governments.
3-27 (b) To enable local governments to make financial plans for programs
3-28 of both current and capital expenditures and to formulate fiscal policies to
3-29 accomplish these programs.
3-30 (c) To provide for estimation and determination of revenues,
3-31 expenditures and tax levies.
3-32 (d) To provide for the control of revenues, expenditures and expenses in
3-33 order to promote prudence and efficiency in the expenditure of public
3-34 money.
3-35 (e) [To enable local governments to borrow money to meet emergency
3-36 expenditures or expenses.
3-37 (f)] To provide specific methods enabling the public, taxpayers and
3-38 investors to be apprised of the financial preparations, plans, policies and
3-39 administration of all local governments.
3-40 2. For the accomplishment of these purposes the provisions of NRS
3-41 354.470 to 354.626, inclusive, must be broadly and liberally construed.
3-42 Sec. 9. NRS 354.475 is hereby amended to read as follows:
3-43 354.475 1. All special districts subject to the provisions of the Local
3-44 Government Budget and Finance Act with annual total expenditures of
3-45 less than [$100,000] $200,000 may petition the department of taxation for
3-46 exemption from the requirements of the Local Government Budget and
3-47 FinanceAct for the filing of certain budget documents and audit reports.
3-48 Such districts may further petition to [return to] use a cash [method] basis
3-49 of accounting. The minimum required of such districts is the filing with
3-50 the department of taxation of an annual budget on or before April 15 of
3-51 each
4-1 year and the filing of quarterly reports in accordance with NRS 354.602.
4-2 Such petitions must be received by the department of taxation on or before
4-3 [December 31] April 15 to be effective for the succeeding fiscal year or, in
4-4 a case of an annual audit exemption, to be effective for the current fiscal
4-5 year. A board of county commissioners may request the department of
4-6 taxation to audit the financial records of such an exempt district.
4-7 2. Such districts are exempt from all publication requirements of the
4-8 Local Government Budget and Finance Act, except that the department of
4-9 taxation by regulation shall require an annual publication of a notice of
4-10 budget adoption and filing. The department of taxation shall adopt
4-11 regulations pursuant to NRS 354.594 which are necessary to carry out the
4-12 purposes of this section.
4-13 3. The revenue recorded in accounts that are kept on a cash basis must
4-14 consist of cash items.
4-15 4. As used in this section, “cash basis” means the system of accounting
4-16 under which revenues are recorded only when received and expenditures
4-17 or expenses are recorded only when paid.
4-18 Sec. 10. NRS 354.476 is hereby amended to read as follows:
4-19 354.476 As used in NRS 354.470 to 354.626, inclusive, [and] sections
4-20 2 to 5, inclusive, of Senate Bill No. 203 of this session and sections 2 to
4-21 5, inclusive, of this act,unless the context otherwise requires, the words
4-22 and terms defined in NRS [354.478 to 354.580,] 354.479 to 354.578,
4-23 inclusive, and sections 2 and 3 of Senate Bill No. 203 of this session and
4-24 sections 2 and 3 of this act , have the meanings ascribed to them in those
4-25 sections.
4-26 Sec. 11. NRS 354.486 is hereby amended to read as follows:
4-27 354.486 “Audit” means the examination and analysis of financial
4-28 statements,accounting procedures and other evidence made in conformity
4-29 with generally accepted auditing standards in the United States for one or
4-30 more of the following purposes:
4-31 1. Determining the propriety[, legality] and mathematical accuracy of
4-32 material financial transactions;
4-33 2. Ascertaining whether [all] financial transactions have been properly
4-34 recorded;
4-35 3. Ascertaining whether the financial statements prepared from the
4-36 accounting records fairly present in all material respects the financial
4-37 position and the results of financial operations [of the constituent and
4-38 balanced account groups] and cash flows of the governmental unit in
4-39 accordance with generally accepted accounting principles in the United
4-40 States and on a basis which is consistent with that of the preceding year;
4-41 4. [Determining whether] Evaluating internal accounting controls
4-42 over financial reporting ofthe handling of the public money [is
4-43 adequately protected by internal accounting controls;] and public
4-44 property;
4-45 5. Determining whether the fiscal controls established by law and
4-46 administrative regulations are being properly applied;
4-47 6. Determining whether there is any evidence that fraud or dishonesty
4-48 has occurred in the handling of funds or property;
4-49 7. Determining whether the acquisition , depreciation and disposition
4-50 of property and equipment are accounted for in accordance with generally
4-51 accepted accounting principles[;] in the United States; and
5-1 8. Determining whether the removal of the uncollectible accounts
5-2 receivable from the records of a governmental unit is done in accordance
5-3 with the procedure established by law and administrative regulations.
5-4 Sec. 12. NRS 354.506 is hereby amended to read as follows:
5-5 354.506 “Contingency account” means an account showing [assets or
5-6 other resources which have] money that has been appropriated to provide
5-7 for unforeseen expenditures or anticipated expenditures of an uncertain
5-8 amount.
5-9 Sec. 13. NRS 354.510 is hereby amended to read as follows:
5-10 354.510 “Debt service fund” means a fund to account for the
5-11 accumulation of resources for and the payment of principal or interest on
5-12 any general long-term debt[.] or medium-term obligation.
5-13 Sec. 14. NRS 354.518 is hereby amended to read as follows:
5-14 354.518 [“Estimated] “Anticipated revenue” means the amount of
5-15 revenue [estimated] anticipated to be collected or accrued during a given
5-16 period.
5-17 Sec. 15. NRS 354.520 is hereby amended to read as follows:
5-18 354.520 1. “Expenditure” means:
5-19 (a) If [accounts] the accounting records are kept on the [accrual basis
5-20 or the] modified accrual basis, the cost of goods delivered or services
5-21 rendered, whether paid or unpaid .[, any provision for retirement of debt
5-22 which is not reported as a liability of the fund from which the debt is
5-23 retired, and any capital outlays.] Expenditures are recognized in the
5-24 accounting period in which the fund liability is incurred, if measurable,
5-25 except for unmatured interest on general long-term liabilities which
5-26 should be recognized when due.
5-27 (b) If accounts are kept on the cash basis, only cash disbursements for
5-28 the purposes listed in paragraph (a).
5-29 2. Encumbrances are not considered expenditures.
5-30 Sec. 16. NRS 354.523 is hereby amended to read as follows:
5-31 354.523 “Expense” means any charge incurred, under the accrual
5-32 basis,whether paid or unpaid, for operation, maintenance or interest or
5-33 any other charge which is presumed to provide benefit in the current fiscal
5-34 period.
5-35 Sec. 17. NRS 354.524 is hereby amended to read as follows:
5-36 354.524 “Final budget” means the budget [that] which has been
5-37 adopted by a local governing body or adopted by default as defined by
5-38 NRS 354.470 to 354.626, inclusive, and [approved] which has been
5-39 determined by the department of taxation [for the ensuing fiscal year.] to
5-40 be in compliance with applicable statutes and regulations.
5-41 Sec. 18. NRS 354.528 is hereby amended to read as follows:
5-42 354.528 [“Fixed] “Capital assets” means assets of a long-term
5-43 character which are intended to continue to be held or used such as land,
5-44 buildings, machinery, furniture and other equipment.
5-45 Sec. 19. NRS 354.529 is hereby amended to read as follows:
5-46 354.529 “Function” means a group of related activities aimed at
5-47 accomplishing a major service or regulatory program for which a
5-48 governmental unit is responsible, [such as] including, without limitation,
5-49 general government, public safety, public works, health, welfare, culture
5-50 and recreation, conservation of natural resources, urban redevelopment
5-51 and
6-1 housing, economic development and assistance ,[or] economic opportunity
6-2 [.]and activities relating to the judiciary.
6-3 Sec. 20. NRS 354.533 is hereby amended to read as follows:
6-4 354.533 “Fund balance” means the excess of assets over liabilities
6-5 [and reserves] in a governmental fund.
6-6 Sec. 21. NRS 354.5335 is hereby amended to read as follows:
6-7 354.5335 [“Fund for capital projects”] “Capital projects fund” means
6-8 a fund created to account for [all] resources used for the acquisition or
6-9 construction of designated [fixed] capital assets by a governmental unit
6-10 except those financed by proprietary or trust funds.
6-11 Sec. 22. NRS 354.535 is hereby amended to read as follows:
6-12 354.535 “General long-term debt” means debt which is legally payable
6-13 from general revenues and is backed by the full faith and credit of a
6-14 governmental unit. The term includes [debt represented by local
6-15 government securities] obligations issued by a local government pursuant
6-16 to chapter 350 of NRS and [debt created for medium-term obligations
6-17 pursuant to NRS 350.085 to 350.095, inclusive.] other long-term
6-18 liabilities, including, without limitation, accrued compensated absences
6-19 and claims for workers’ compensation.
6-20 Sec. 23. NRS 354.562 is hereby amended to read as follows:
6-21 354.562 [1.] “Revenue” means the gross [increase in ownership
6-22 equity during a designated period.
6-23 2. If the accounts are kept on an accrual basis, this term designates:
6-24 (a) Additions to assets which do not increase any liability or represent
6-25 the recovery of an expenditure or contributions of fund capital in
6-26 proprietary funds; and
6-27 (b) The cancellation of liabilities without a corresponding increase in
6-28 other liabilities or a decrease in assets.
6-29 3. If the accounts are kept on the modified accrual basis, the additions
6-30 must be measurable and available to finance expenditures of the fiscal
6-31 period.] receipts and receivables of a local government derived from
6-32 taxes and all other sources except from appropriations and allotments.
6-33 Sec. 24. NRS 354.570 is hereby amended to read as follows:
6-34 354.570 “Special revenue fund” means a fund used to account for
6-35 specific revenue sources, other than [special assessments, expendable
6-36 trusts, or] sources for major capital projects, which are restricted by law to
6-37 expenditure for specified purposes.
6-38 Sec. 25. NRS 354.5945 is hereby amended to read as follows:
6-39 354.5945 1. [On] Except as otherwise provided in subsection 6, on
6-40 or before July 1 of each year, each local government shall prepare, on a
6-41 form prescribed by the department of taxation for use by local
6-42 governments, a capital improvement plan for the ensuing 5 fiscal years.
6-43 2. Each local government must submit a copy of the capital
6-44 improvement plan of the local government to the:
6-45 (a) Department of taxation; and
6-46 (b) Debt management commission of the county in which the local
6-47 government is located.
6-48 3. Each local government must file a copy of the capital improvement
6-49 plan of the local government for public record and inspection by the public
6-50 in the offices of:
7-1 (a) The clerk or secretary of the governing body; and
7-2 (b) The county clerk.
7-3 4. The total amount of the expenditures contained in the capital
7-4 improvement plan of the local government for the next ensuing fiscal year
7-5 must equal the total amount of expenditures for capital outlay set forth in
7-6 the final budget of the local government for each fund listed in that
7-7 budget.
7-8 5. The capital improvement plan must reconcile the capital outlay in
7-9 each fund in the final budget for the first year of the capital
7-10 improvement plan to the final budget in the next ensuing fiscal year.
7-11 The reconciliation must identify the minimum level of expenditure for
7-12 items classified as capital assets in the final budget and the minimum
7-13 level of expenditure for items classified as capital projects in the capital
7-14 improvement plan. The reconciliation of capital outlay items in the
7-15 capital improvement plan must be presented on forms created and
7-16 distributed by the department of taxation.
7-17 6. Local governments that are exempt from the requirements of the
7-18 Local Government Budget and Finance Act pursuant to NRS 354.475
7-19 are not required to file a capital improvement plan.
7-20 Sec. 26. NRS 354.596 is hereby amended to read as follows:
7-21 354.596 1. [On or before April 15 of each year, the] The officer
7-22 charged by law shall prepare, or the governing body shall cause to be
7-23 prepared, on appropriate forms prescribed by the department of taxation
7-24 for the use of local governments, a tentative budget for the ensuing fiscal
7-25 year. The tentative budget [and a copy of the local government’s report of
7-26 its proposed expenditures] for the following fiscal year must be submitted
7-27 to the county auditor and filed for public record and inspection in the
7-28 office of:
7-29 (a) The clerk or secretary of the governing body; and
7-30 (b) The county clerk.
7-31 [The report must be written in the same detail as its chart of accounts. The
7-32 total amount of the expenditures contained in this report equal the total
7-33 amount of expenditures contained in its tentative budget for each
7-34 department and fund listed in that budget.]
7-35 2. On or before April 15, a copy of the tentative budget must be
7-36 submitted:
7-37 (a) To the department of taxation; and
7-38 (b) In the case of school districts, to the department of education.
7-39 3. At the time of filing the tentative budget, the governing body shall
7-40 give notice of the time and place of a public hearing on the tentative
7-41 budget and shall cause a notice of the hearing to be published once in a
7-42 newspaper of general circulation within the area of the local government
7-43 not more than 14 nor less than 7 days before the date set for the hearing.
7-44 The notice of public hearing must state:
7-45 (a) The time and place of the public hearing.
7-46 (b) That a tentative budget has been prepared in such detail and on
7-47 appropriate forms as prescribed by the department of taxation.
7-48 (c) The places where copies of the tentative budget are on file and
7-49 available for public inspection.
7-50 [3.] 4. Budget hearings must be held:
7-51 (a) For county budgets, on the third Monday in May;
8-1 (b) For cities, on the third Tuesday in May;
8-2 (c) For school districts, on the third Wednesday in May; and
8-3 (d) For all other local governments, on the third Thursday in
8-4 May,
8-5 except that the board of county commissioners may consolidate the hearing
8-6 on all local government budgets administered by the board of county
8-7 commissioners with the county budget hearing.
8-8 [4. On or before April 15, a copy of the tentative budget and notice of
8-9 public hearing must be submitted:
8-10 (a) To the department of taxation; and
8-11 (b) In the case of school districts, to the state department of education.]
8-12 5. The department of taxation shall examine the submitted documents
8-13 for compliance with law and with appropriate regulations and shall submit
8-14 to the governing body at least 3 days before the public hearing a written
8-15 certificate of compliance or a written notice of lack of compliance. The
8-16 written notice must indicate the manner in which the submitted documents
8-17 fail to comply with law or appropriate regulations.
8-18 6. Whenever the governing body receives from the department of
8-19 taxation a notice of lack of compliance, the governing body shall forthwith
8-20 proceed to amend the tentative budget to effect compliance with the law
8-21 and with the appropriate regulation.
8-22 [7. If any change which results in an increase in the amount of revenue
8-23 required from property taxes is made in a tentative budget after it has been
8-24 submitted to the county auditor pursuant to subsection 1, the amended
8-25 tentative budget must be submitted to the county auditor at least 30 days
8-26 before it may be adopted as the final budget.]
8-27 Sec. 27. NRS 354.598 is hereby amended to read as follows:
8-28 354.598 1. At the time and place advertised for public hearing, or at
8-29 any time and place to which the public hearing is from time to time
8-30 adjourned, the governing body shall hold a public hearing on the tentative
8-31 budget, at which time interested persons must be given an opportunity to
8-32 be heard.
8-33 2. At the public hearing, the governing body shall indicate changes, if
8-34 any, to be made in the tentative budget, and shall adopt a final budget by
8-35 the favorable votes of a majority of all members of the governing body.
8-36 Except as otherwise provided in this subsection, the final budget must be
8-37 adopted on or before June 1 of each year. The final budgets of school
8-38 districts must be adopted on or before June 8 of each year and must be
8-39 accompanied by copies of the written report and written procedure
8-40 prepared pursuant to subsection 3 of NRS 385.351. Should the governing
8-41 body fail to adopt a final budget that complies with the requirements of
8-42 law and the regulations of the department of taxation on or before the
8-43 required date, the budget adopted and [approved] used for certification of
8-44 the combined ad valorem tax rateby the department of taxation for the
8-45 current year, adjusted as to content and rate in such a manner as the
8-46 department of taxation may consider necessary, automatically becomes the
8-47 budget for the ensuing fiscal year. When a budget has been so adopted by
8-48 default, the governing body may not reconsider the budget without the
8-49 express approval of the department of taxation. If the default budget
8-50 creates a combined ad valorem tax rate in excess of the limit imposed by
8-51 NRS
9-1 361.453, the Nevada tax commission shall adjust the budget as provided in
9-2 NRS 361.4547 or 361.455.
9-3 3. The final budget must be certified by a majority of all members of
9-4 the governing body and a copy of it, together with an affidavit of proof of
9-5 publication of the notice of the public hearing, must be transmitted to the
9-6 Nevada tax commission. If a tentative budget is adopted by default as
9-7 provided in subsection 2, the clerk of the governing body shall certify the
9-8 budget and transmit to the Nevada tax commission a copy of the budget,
9-9 together with an affidavit of proof of the notice of the public hearing, if
9-10 that notice was published. Certified copies of the final budget must be
9-11 distributed as determined by the department of taxation.
9-12 4. Upon the adoption of the final budget or the amendment of the
9-13 budget in accordance with [NRS 354.606,] section 5 of this act, the
9-14 several amounts stated in it as proposed expenditures are appropriated for
9-15 the purposes indicated in the budget.
9-16 5. No governing body may adopt any budget which appropriates for
9-17 any fund any amount in excess of the budget resources of that fund.
9-18 6. [On or before January 1 of each school year, each school district
9-19 shall adopt an amendment to its final budget after the count of pupils is
9-20 completed pursuant to subsection 1 of NRS 387.1233. The amendment
9-21 must reflect any adjustments necessary as a result of the completed count
9-22 of pupils.] If a local government makes a change in its final budget
9-23 which increases the combined ad valorem tax rate, the local government
9-24 shall submit the amended final budget to the county auditor within 15
9-25 days after making the change.
9-26 Sec. 28. NRS 354.59801 is hereby amended to read as follows:
9-27 354.59801 Each local government shall file in the office of the clerk or
9-28 secretary of its governing body, for public record and inspection:
9-29 1. A copy of its final budget; and
9-30 2. A copy of its final plan for capital improvements prepared pursuant
9-31 to NRS 354.5945 and, if applicable, NRS 350.0035 . [; and
9-32 3. A report of its proposed expenditures for the following fiscal year,
9-33 written in the same detail as its chart of accounts. The total amount of
9-34 these expenditures must equal the total amount of expenditures contained
9-35 in its final budget for each department and fund listed in that budget.]
9-36 Sec. 29. NRS 354.59811 is hereby amended to read as follows:
9-37 354.59811 1. Except as otherwise provided in NRS 354.59813,
9-38 354.59815, 354.5982, 354.5987, [354.59871,] 354.705, 354.723, 450.425,
9-39 450.760, 540A.265 and 543.600, and section 4 of [this act,] Senate Bill
9-40 No. 203 of this session, for each fiscal year beginning on or after July 1,
9-41 1989, the maximum amount of money that a local government, except a
9-42 school district, a district to provide a telephone number for emergencies,
9-43 or a redevelopment agency, may receive from taxes ad valorem, other than
9-44 those attributable to the net proceeds of minerals or those levied for the
9-45 payment of bonded indebtedness and interest thereon incurred as general
9-46 long-term debt of the issuer, or for the payment of obligations issued to
9-47 pay the cost of a water project pursuant to NRS 349.950, or for the
9-48 payment of obligations under a capital lease executed before April 30,
9-49 1981, must be calculated as follows:
10-1 (a) The rate must be set so that when applied to the current fiscal year’s
10-2 assessed valuation of all property which was on the preceding fiscal year’s
10-3 assessment roll, together with the assessed valuation of property on the
10-4 central assessment roll which was allocated to the local government, but
10-5 excluding any assessed valuation attributable to the net proceeds of
10-6 minerals, assessed valuation attributable to a redevelopment area and
10-7 assessed valuation of a fire protection district attributable to real property
10-8 which is transferred from private ownership to public ownership for the
10-9 purpose of conservation, it will produce 106 percent of the maximum
10-10 revenue allowable from taxes ad valorem for the preceding fiscal year,
10-11 except that the rate so determined must not be less than the rate allowed
10-12 for the previous fiscal year, except for any decrease attributable to the
10-13 imposition of a tax pursuant to NRS 354.59813 in the previous year.
10-14 (b) This rate must then be applied to the total assessed valuation,
10-15 excluding the assessed valuation attributable to the net proceeds of
10-16 minerals and the assessed valuation of a fire protection district attributable
10-17 to real property which is transferred from private ownership to public
10-18 ownership for the purpose of conservation but including new real property,
10-19 possessory interests and mobile homes, for the current fiscal year to
10-20 determine the allowed revenue from taxes ad valorem for the local
10-21 government.
10-22 2. As used in this section, “general long-term debt” does not include
10-23 debt created for medium-term obligations pursuant to NRS 350.085 to
10-24 350.095, inclusive.
10-25 Sec. 30. NRS 354.59817 is hereby amended to read as follows:
10-26 354.59817 1. In addition to the allowed revenue from taxes ad
10-27 valorem determined pursuant to NRS 354.59811, upon the approval of a
10-28 majority of the registered voters of a county voting upon the question, the
10-29 board of county commissioners may levy a tax ad valorem on all taxable
10-30 property in the county at a rate not to exceed 15 cents per $100 of the
10-31 assessed valuation of the county. A tax must not be levied pursuant to this
10-32 section for more than 10 years.
10-33 2. The board of county commissioners shall direct the county treasurer
10-34 to distribute quarterly the proceeds of any tax levied pursuant to the
10-35 provisions of this section among the county and the cities and towns
10-36 within that county in the proportion that the supplemental city-county
10-37 relief tax distribution factor of each of those local governments for the
10-38 1990-1991 fiscal year bears to the sum of the supplemental city-county
10-39 relief tax distribution factors of all [of] the local governments in the
10-40 county for the 1990-1991 fiscal year.
10-41 3. The board of county commissioners shall not reduce the rate of any
10-42 tax levied pursuant to the provisions of this section without the approval of
10-43 each of the local governments that receives a portion of the tax, except
10-44 that, if a local government declines to receive its portion of the tax in a
10-45 particular year the levy may be reduced by the amount that local
10-46 government would have received.
10-47 4. The governing body of each local government that receives a
10-48 portion of the revenue from the tax levied pursuant to this section shall
10-49 establish a separate [fund for] capital projects fund for the purposes set
10-50 forth in this section. All interest and income earned on the money in the
11-1 fund must also be deposited in the fund. The money in the fund may only
11-2 be used for:
11-3 (a) The purchase of capital assets including land, improvements to land
11-4 and major items of equipment;
11-5 (b) The construction or replacement of public works; and
11-6 (c) The renovation of existing governmental facilities, not including
11-7 normal recurring maintenance.
11-8 The money in the fund must not be used to finance the issuance or the
11-9 repayment of bonds or other obligations, including medium-term
11-10 obligations.
11-11 5. Money may be retained in the fund for not more than 10 years to
11-12 allow the funding of projects without the issuance of bonds or other
11-13 obligations. For the purpose of determining the length of time a deposit of
11-14 money has been retained in the fund, all money withdrawn from the fund
11-15 shall be deemed to be taken on a first-in, first-out basis. No money in the
11-16 fund at the end of the fiscal year may revert to any other fund, nor may the
11-17 money be a surplus for any other purpose than those specified in this
11-18 section.
11-19 6. The annual budget and audit report of each local government must
11-20 specifically identify this fund and must indicate in detail the projects that
11-21 have been funded with money from the fund. Any planned accumulation
11-22 of the money in the fund must also be specifically identified.
11-23 7. The projects on which money raised pursuant to this section will be
11-24 expended must be approved by the voters in the question submitted
11-25 pursuant to subsection 1 or in a separate question submitted on the ballot
11-26 at a primary, general or special election.
11-27 Sec. 31. NRS 354.5987 is hereby amended to read as follows:
11-28 354.5987 1. For the purposes of NRS 354.59811, the allowed
11-29 revenue from taxes ad valorem of any local government[:
11-30 (a) Which comes into being on or after July 1, 1989, whether newly
11-31 created, consolidated, or both; or
11-32 (b) Which was in existence before July 1, 1989, but did not receive
11-33 revenue from taxes ad valorem, except any levied for debt service, for the
11-34 fiscal year ending June 30, 1989,]
11-35 must be [initially] established by the Nevada tax commission[.] for the
11-36 first fiscal year it is in existence.
11-37 2. Except as otherwise provided in subsections 3 and [6,] 5, if the local
11-38 government for which the allowed revenue from taxes ad valorem is to be
11-39 established performs a function previously performed by another local
11-40 government, the total revenue allowed to all local governments for
11-41 performance of substantially the same function in substantially the same
11-42 geographical area must not be increased. To achieve this result, the
11-43 Nevada tax commission shall request the committee on local government
11-44 finance to prepare a statement of the prior cost of performing the function
11-45 for each predecessor local government. Within 60 days after receipt of
11-46 such a request, the committee on local government finance shall prepare a
11-47 statement pursuant to the request and transmit it to the Nevada tax
11-48 commission. The Nevada tax commission may accept, reject or amend the
11-49 statement of the committee on local government finance. The decision of
11-50 the Nevada tax commission is final. Upon making a final determination of
12-1 the prior cost of performing the function for each predecessor local
12-2 government, the Nevada tax commission shall:
12-3 (a) Determine the percentage that the prior cost of performing the
12-4 function for each predecessor local government is of the allowed revenue
12-5 from taxes ad valorem of that local government; and
12-6 (b) Apply the percentage determined pursuant to paragraph (a) to the
12-7 allowed revenue from taxes ad valorem and subtract that amount from the
12-8 allowed revenue from taxes ad valorem of the predecessor local
12-9 government.
12-10 The allowed revenue from taxes ad valorem attributable to the new local
12-11 government for the cost of performing the function must equal the total of
12-12 the amounts subtracted for the prior cost of performing the function from
12-13 the allowed revenue from taxes ad valorem of all [of] the predecessor local
12-14 governments.
12-15 3. If the local government for which the allowed revenue from taxes ad
12-16 valorem is to be established is an unincorporated town which provides a
12-17 service not previously provided by another local government, and the
12-18 board of county commissioners has included the unincorporated town in a
12-19 resolution adopted pursuant to the provisions of NRS 269.5755, the
12-20 Nevada tax commission shall, if the unincorporated town does not receive
12-21 revenue from taxes ad valorem, establish the allowed revenue of the town
12-22 from taxes ad valorem at an amount which is in the same ratio to the
12-23 assessed valuation of the town as the combined allowed revenues from
12-24 taxes ad valorem are to the combined assessed valuations of the other
12-25 unincorporated towns included in the common levy.
12-26 4. [The allowed revenue from taxes ad valorem of an unincorporated
12-27 town which provides a service not previously provided by another local
12-28 government must be:
12-29 (a) Reduced by 75 percent for the first fiscal year following the fiscal
12-30 year in which the allowed revenue from taxes ad valorem is established
12-31 pursuant to subsection 3;
12-32 (b) Reduced by 50 percent for the second fiscal year following the fiscal
12-33 year in which the allowed revenue from taxes ad valorem is established
12-34 pursuant to subsection 3; and
12-35 (c) Reduced by 25 percent for the third fiscal year following the fiscal
12-36 year in which the allowed revenue from taxes ad valorem is established
12-37 pursuant to subsection 3.
12-38 5. In any other case, except] Except as otherwise provided in
12-39 subsection [6,] 5, the allowed revenue from taxes ad valorem of all local
12-40 governments in the county, determined pursuant to NRS 354.59811, must
12-41 not be increased, but the total allowed revenue from taxes ad valorem must
12-42 be reallocated among the local governments consistent with subsection 2
12-43 to accommodate the amount established for the new local government
12-44 pursuant to subsection 1.
12-45 [6.] 5. In establishing the allowed revenue from taxes ad valorem of a
12-46 county, city or town pursuant to this section, the Nevada tax commission
12-47 shall allow a tax rate for operating expenses of at least 15 cents per $100
12-48 of assessed valuation in addition to the tax rate allowed for any identified
12-49 and restricted purposes and for debt service.
12-50 [7.] 6. As used in this section:
13-1 (a) “Predecessor local government” means a local government which
13-2 previously performed all or part of a function to be performed by the local
13-3 government for which the allowed revenue from taxes ad valorem is being
13-4 established pursuant to subsection 1.
13-5 (b) “Prior cost of performing the function” means the amount expended
13-6 by a local government to perform a function which is now to be performed
13-7 by another local government. The amount must be determined on the basis
13-8 of the most recent fiscal year for which reliable information is available.
13-9 Sec. 32. NRS 354.599 is hereby amended to read as follows:
13-10 354.599 [1.] If the legislature directs one or more local governments
13-11 to:
13-12 [(a)] 1. Establish a program or provide a service; or
13-13 [(b)] 2. Increase a program or service already established which
13-14 requires additional funding,
13-15 and the expense required to be paid by each local government to establish,
13-16 provide or increase the program or service is $5,000 or more, a specified
13-17 source for the additional revenue to pay the expense must be authorized by
13-18 a specific statute. The additional revenue may only be used to pay
13-19 expenses directly related to the program or service. If a local government
13-20 has money from any other source available to pay such expenses, that
13-21 money must be applied to the expenses before any money from the
13-22 revenue source specified by statute.
13-23 [2. In any year in which the legislature by law increases or decreases
13-24 the revenues of a local government, and that increase or decrease was not
13-25 included or anticipated in the local government’s final budget as adopted
13-26 pursuant to NRS 354.598, the governing body of any such local
13-27 government may, before August 15 of the budget year, file an amended
13-28 budget with the department of taxation increasing or decreasing its
13-29 anticipated revenues and expenditures from that contained in its final
13-30 budget to the extent of the actual increase or decrease of revenues
13-31 resulting from the legislative action.
13-32 3. In any year in which the legislature enacts a law requiring an
13-33 increase or decrease in expenditures of a local government, which was not
13-34 anticipated or included in its final budget as adopted pursuant to NRS
13-35 354.598, the governing body of any such local government may, before
13-36 August 15 of the budget year, file an amended budget with the department
13-37 of taxation providing for an increase or decrease in expenditures from that
13-38 contained in its final budget to the extent of the actual amount made
13-39 necessary by the legislative action.
13-40 4. The amended budget, as approved by the department of taxation, is
13-41 the budget of the local government for the current fiscal year.]
13-42 Sec. 33. NRS 354.600 is hereby amended to read as follows:
13-43 354.600 Each budget must include:
13-44 1. Detailed estimates of [budget resources] revenues, balances in
13-45 other funds and other sources of financingfor the budget year classified
13-46 by funds and sources in a manner and on forms prescribed by the
13-47 department of taxation.
13-48 2. Detailed estimates of expenditures and other uses of money for the
13-49 budget year classified in a manner and on forms prescribed by the
13-50 department of taxation.
14-1 [3. A separate statement of the anticipated expense, including
14-2 personnel, for the operation and maintenance of each capital improvement
14-3 to be constructed during the budget year and of each capital improvement
14-4 constructed on or after July 1, 1998, which is to be used during that or a
14-5 future budget year.
14-6 4. A separate statement of the proposed source of funding for the
14-7 operation and maintenance of each capital improvement, including
14-8 personnel, to be constructed during that budget year.]
14-9 Sec. 34. NRS 354.603 is hereby amended to read as follows:
14-10 354.603 1. The board of trustees of any county school district, the
14-11 board of hospital trustees of any county hospital or the board of trustees of
14-12 any consolidated library district or district library may establish and
14-13 administer separate accounts in:
14-14 (a) A bank whose deposits are insured by the Federal Deposit Insurance
14-15 Corporation;
14-16 (b) A credit union whose deposits are insured by the National Credit
14-17 Union Share Insurance Fund or by a private insurer approved pursuant to
14-18 NRS 678.755; or
14-19 (c) A savings and loan association whose deposits if made by the state,
14-20 a local government or an agency of either, are insured by the Federal
14-21 Deposit Insurance Corporation, or the legal successor of the Federal
14-22 Deposit Insurance Corporation,
14-23 for money deposited by the county treasurer which is by law to be
14-24 administered and expended by those boards.
14-25 2. The county treasurer shall transfer the money to a separate account
14-26 pursuant to subsection 1 when the following conditions are met:
14-27 (a) The board of trustees of the county school district, the board of
14-28 hospital trustees of the county hospital or the board of trustees of the
14-29 consolidated library district or district library adopts a resolution declaring
14-30 an intention to establish and administer a separate account in accordance
14-31 with the provisions of this section.
14-32 (b) The board of trustees of the county school district, the board of
14-33 hospital trustees of the county hospital or the board of trustees of the
14-34 consolidated library district or district library sends a certificate to the
14-35 county treasurer, the county auditor, the board of county commissioners
14-36 and, in the case of the board of trustees of the county school district, to the
14-37 department of education, attested by the secretary of the board, declaring
14-38 the intention of the board to establish and administer a separate account in
14-39 accordance with the provisions of this section.
14-40 (c) The board of hospital trustees of the county hospital or the board of
14-41 trustees of the consolidated library district or district library submits
14-42 monthly reports, listing all transactions involving the separate account, to
14-43 the county treasurer, the county auditor and the board of county
14-44 commissioners. The reports must be certified by the secretary of the board.
14-45 In addition, the board shall give a full account and record of all money in
14-46 such an account upon request of the board of county commissioners.
14-47 3. The separate account of the board of trustees of the county school
14-48 district established under the provisions of this section must be composed
14-49 of:
14-50 (a) The county school district fund; and
15-1 (b) The county school district building and sites fund.
15-2 4. The separate account established by the board of county hospital
15-3 trustees is designated the county hospital fund.
15-4 5. The separate account of the board of trustees of the consolidated
15-5 library district or district library established under the provisions of this
15-6 section must be composed of:
15-7 (a) The fund for the consolidated library or district library, as
15-8 appropriate; and
15-9 (b) The [fund for] capital projects fund of the consolidated library or
15-10 district library, as appropriate.
15-11 6. No expenditures from an account may be made in excess of the
15-12 balance of the account.
15-13 7. Such an account must support all expenditures properly related to
15-14 the purpose of the fund, excluding direct payments of principal and
15-15 interest on general obligation bonds, and including, but not limited to, debt
15-16 service, capital projects, capital outlay and operating expenses.
15-17 8. The board of county commissioners, if it determines that there is
15-18 clear evidence of misuse or mismanagement of money in any separate
15-19 account, may order the closing of the account and the return of the money
15-20 to the county treasury to be administered in accordance with existing
15-21 provisions of law. The board of trustees of the county school district, the
15-22 board of hospital trustees of the county hospital or the board of trustees of
15-23 the consolidated library district or district library is entitled to a hearing
15-24 before the board of county commissioners.
15-25 Sec. 35. NRS 354.604 is hereby amended to read as follows:
15-26 354.604 Each local government shall maintain, according to its own
15-27 needs:
15-28 1. The following kinds of governmental funds:
15-29 (a) General fund;
15-30 (b) Special revenue fund;
15-31 (c) [Fund for capital projects; and] Capital projects fund;
15-32 (d) Debt service fund[.] ; and
15-33 (e) Permanent fund.
15-34 2. The following kinds of proprietary funds:
15-35 (a) Enterprise fund; and
15-36 (b) Internal service fund.
15-37 3. [Trust and agency funds.
15-38 4.] The following kinds of [account groups:
15-39 (a) General fixed assets; and
15-40 (b) General long-term debt.] fiduciary funds:
15-41 (a) Pension and other employee benefits funds;
15-42 (b) Investment trust funds;
15-43 (c) Private-purpose trust funds; and
15-44 (d) Agency funds.
15-45 Sec. 36. NRS 354.608 is hereby amended to read as follows:
15-46 354.608 A contingency account may be established in any
15-47 governmental fund. The maximum amount which may be appropriated for
15-48 such a contingency account is 3 percent of the money otherwise
15-49 appropriated to the fund, exclusive of any amounts to be transferred to
15-50 other funds. No expenditure may be made directly from such a
15-51 contingency
16-1 account, except as a transfer to the appropriate account, and then only in
16-2 accordance with the procedure established in [NRS 354.606.] section 5 of
16-3 this act.
16-4 Sec. 37. NRS 354.6105 is hereby amended to read as follows:
16-5 354.6105 1. A local government [in a county whose population is
16-6 100,000 or more shall] may establish a fund for the extraordinary
16-7 maintenance, repair or improvement of capital projects. [The local
16-8 government shall establish within that fund a separate account for each
16-9 capital project it undertakes, except a capital project for the:
16-10 (a) Construction of public roads;
16-11 (b) Control of floods; or
16-12 (c) Transmission or treatment of water, waste water or sewerage.
16-13 The local government shall allocate an amount equal to one-half of 1
16-14 percent of the total amount of the bonds sold for each capital project and
16-15 deposit that amount in the separate account established for that capital
16-16 project. The proceeds from the sale of those bonds or any other money of
16-17 the local government may be used to carry out the provisions of this
16-18 subsection.]
16-19 2. Any interest and income earned on the money in [an account within]
16-20 the fund in excess of any amount which is reserved for rebate payments to
16-21 the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is
16-22 otherwise required to be applied in a specific manner by the Internal
16-23 Revenue Code of 1986, as amended, must be credited to [that account.]
16-24 the fund.
16-25 3. The money in [each account within] the fund may be used only for
16-26 the extraordinary maintenance, repair or improvement of the capital
16-27 [project or a facility which replaces that capital project.] projects or
16-28 facilities which replace capital projects of the local government that
16-29 made the deposits into the fund.The money in [each account within] the
16-30 fund at the end of the fiscal year may not revert to any other fund or be a
16-31 surplus for any purpose other than the purpose specified in this subsection.
16-32 [If the local government sells any capital project for which an account
16-33 within the fund was established, any balance remaining in that account
16-34 must be used to reduce the debt of the local government.
16-35 4. The annual budget and audit report of the local government
16-36 prepared pursuant to NRS 354.624 must specifically identify:
16-37 (a) Each fund and every account within that fund established pursuant
16-38 to this section and indicate in detail any extraordinary maintenance, repairs
16-39 or improvements of the capital project that have been paid for with money
16-40 from the fund; and
16-41 (b) Any planned accumulation of money in each fund and every account
16-42 within the fund.
16-43 The audit report must include a statement by the auditor whether the local
16-44 government has complied with the provisions of this subsection.]
16-45 Sec. 38. NRS 354.6115 is hereby amended to read as follows:
16-46 354.6115 1. The governing body of a local government may, by
16-47 resolution, establish a fund to stabilize the operation of the local
16-48 government and mitigate the effects of natural disasters.
16-49 2. The money in the fund must be used only:
17-1 (a) If the total actual revenue of the local government falls short of the
17-2 total anticipated revenue in the general fund for the fiscal year in which the
17-3 local government uses that money; or
17-4 (b) To pay expenses incurred by the local government to mitigate the
17-5 effects of a natural disaster.
17-6 The money in the fund at the end of the fiscal year may not revert to any
17-7 other fund or be a surplus for any purpose other than a purpose specified
17-8 in this subsection.
17-9 3. The money in the fund may not be used to pay expenses incurred to
17-10 mitigate the effects of a natural disaster until the governing body of the
17-11 local government issues a formal declaration that a natural disaster exists.
17-12 The governing body shall not make such a declaration unless a natural
17-13 disaster is occurring or has occurred. Upon the issuance of such a
17-14 declaration, the money in the fund may be used for the payment of the
17-15 following expenses incurred by the local government as a result of the
17-16 natural disaster:
17-17 (a) The repair or replacement of roads, streets, bridges, water control
17-18 facilities, public buildings, public utilities, recreational facilities and parks
17-19 owned by the local government and damaged by the natural disaster;
17-20 (b) Any emergency measures undertaken to save lives, protect public
17-21 health and safety or protect property within the jurisdiction of the local
17-22 government;
17-23 (c) The removal of debris from publicly or privately owned land and
17-24 waterways within the jurisdiction of the local government that was
17-25 undertaken because of the natural disaster;
17-26 (d) Expenses incurred by the local government for any overtime worked
17-27 by an employee of the local government because of the natural disaster or
17-28 any other extraordinary expenses incurred by the local government
17-29 because of the natural disaster; and
17-30 (e) The payment of any grant match the local government must provide
17-31 to obtain a grant from a federal disaster assistance agency for an eligible
17-32 project to repair damage caused by the natural disaster within the
17-33 jurisdiction of the local government.
17-34 4. The balance in the fund must not exceed 10 percent of the
17-35 expenditures from the general fund for the previous fiscal year, excluding
17-36 any federal funds expended by the local government.
17-37 5. The annual budget and audit report of the local government
17-38 prepared pursuant to NRS 354.624 must specifically identify the fund .
17-39 [and:
17-40 (a) Indicate in detail the manner in which money in the fund was
17-41 expended during the previous fiscal year;
17-42 (b) Specify the amount of money, if any, that will be deposited in the
17-43 fund for the next fiscal year; and
17-44 (c) Identify any planned accumulation of the money in the fund.]
17-45 6. The audit report prepared for the fund must include a statement by
17-46 the auditor whether the local government has complied with the provisions
17-47 of this [subsection.
17-48 6.] section.
18-1 7. Any transfer of money from a fund established pursuant to this
18-2 section must be completed within 90 days after the end of the fiscal year
18-3 in which the natural disaster for which the fund was established occurs.
18-4 8. As used in this section:
18-5 (a) “Grant match” has the meaning ascribed to it in NRS 353.2725.
18-6 (b) “Natural disaster” means a fire, flood, earthquake, drought or any
18-7 other occurrence that:
18-8 (1) Results in widespread or severe damage to property or injury to or
18-9 the death of persons within the jurisdiction of the local government; and
18-10 (2) As determined by the governing body of the local government,
18-11 requires immediate action to protect the health, safety and welfare of
18-12 persons residing within the jurisdiction of the local government.
18-13 Sec. 39. NRS 354.6116 is hereby amended to read as follows:
18-14 354.6116 A local government, except a school district, that receives
18-15 revenue from taxes ad valorem from a lessee or user of property which is
18-16 taxable pursuant to NRS 361.157 or 361.159 shall deposit the revenue in
18-17 or transfer the revenue to one or more of the funds established by the local
18-18 government pursuant to NRS [354.611,] 354.6113 or 354.6115 and use
18-19 that revenue only for the purposes authorized by those sections if the
18-20 revenue was received in:
18-21 1. A fiscal year after the fiscal year the taxes were owed; or
18-22 2. The fiscal year the taxes are owed and the taxes were excluded from
18-23 the estimate of revenue from taxes ad valorem for the local government
18-24 pursuant to NRS 354.597.
18-25 Sec. 40. NRS 354.6117 is hereby amended to read as follows:
18-26 354.6117 1. Except as otherwise provided in subsection 2, the total
18-27 amount of money which may be transferred in a fiscal year from the
18-28 general fund of a local government to the funds established pursuant to
18-29 NRS [354.611,] 354.6113 and 354.6115 must not exceed 10 percent of the
18-30 total amount of the budgeted expenditures of the general fund, plus any
18-31 money transferred from the general fund, other than the money transferred
18-32 to those funds, for that fiscal year.
18-33 2. Any money that a local government, pursuant to NRS 354.6116,
18-34 deposits in or transfers to one or more of the funds established by the local
18-35 government pursuant to NRS [354.611,] 354.6113 or 354.6115:
18-36 (a) Is not subject to the limitation on the amount of money that a local
18-37 government may transfer to those funds pursuant to subsection 1.
18-38 (b) Must not be included in the determination of the total amount of
18-39 money transferred to those funds for the purposes of the limitation set
18-40 forth in subsection 1.
18-41 Sec. 41. NRS 354.612 is hereby amended to read as follows:
18-42 354.612 1. A local government [may] shall establish by resolution
18-43 one or more [internal service] funds. The resolution establishing the fund
18-44 must set forth in detail:
18-45 (a) The object or purpose of the fund;
18-46 (b) The resources to be used to establish the fund;
18-47 (c) The source or sources from which the fund will be replenished;
18-48 [and]
18-49 (d) The method for controlling expenses and establishing revenues of
18-50 the fund; and
19-1 (e) The method by which a determination will be made as to whether
19-2 the balance, reserve or retained earnings of the fund are reasonable and
19-3 necessary to carry out the purpose of the fund.
19-4 2. Financial statements and other schedules required for funds must
19-5 be prepared in accordance with generally accepted accounting
19-6 principles.
19-7 3. Upon adoption of a resolution establishing a fund, a local
19-8 government shall provide an executed copy of the resolution to the
19-9 department of taxation.
19-10 4. In establishing [an internal service] a proprietary fund, a local
19-11 government shall, besides furnishing working capital for the fund, provide
19-12 that one of its financial objectives is to recover the complete costs of
19-13 operation of the activity being financed, including overhead, without
19-14 producing any significant amount of profit in the long run.
19-15 [3. Financial statements and other schedules required for internal
19-16 service funds must be prepared in accordance with generally accepted
19-17 accounting principles.]
19-18 5. Each enterprise fund established must account for all charges
19-19 properly related to the purpose of the fund, including, without limitation,
19-20 debt service, capital outlay and operating expenses. No transfer of equity
19-21 that may be made available to other funds or functions may be declared
19-22 in an enterprise fund until after all proper obligations have been
19-23 charged against the fund.
19-24 Sec. 42. NRS 354.620 is hereby amended to read as follows:
19-25 354.620 Any unencumbered balance on [a] an accrual or modified
19-26 accrual basis or any unexpended balance on a cash basis remaining to the
19-27 credit of any appropriation shall lapse at the end of the fiscal year and
19-28 shall revert to the available balance of the fund from which appropriated.
19-29 Sec. 43. NRS 354.624 is hereby amended to read as follows:
19-30 354.624 1. Each local government shall provide for an annual audit
19-31 of all of its[:
19-32 (a) Funds;
19-33 (b) Account groups; and
19-34 (c) Separate accounts established pursuant to NRS 354.603.] financial
19-35 statements.
19-36 A local government may provide for more frequent audits as it deems
19-37 necessary. Except as otherwise provided in subsection 2, each annual audit
19-38 must be concluded and the report of the audit submitted to the governing
19-39 body as provided in subsection [5] 6 not later than 5 months after the close
19-40 of the fiscal year for which the audit is conducted. An extension of this
19-41 time may be granted by the department of taxation to any local
19-42 government that submits an application for an extension to the department.
19-43 If the local government fails to provide for an audit in accordance with the
19-44 provisions of this section, the department of taxation shall cause the audit
19-45 to be made at the expense of the local government. All audits must be
19-46 conducted by a certified public accountant [who is certified or registered]
19-47 or by a partnership or professional corporation that is registered pursuant
19-48 to chapter 628 of NRS.
19-49 2. The annual audit of a school district must:
20-1 (a) Be concluded and the report submitted to the board of trustees as
20-2 provided in subsection [5] 6 not later than 4 months after the close of the
20-3 fiscal year for which the audit is conducted.
20-4 (b) If the school district has more than 150,000 pupils enrolled, include
20-5 an audit of the expenditure by the school district of [all] public money
20-6 used:
20-7 (1) To design, construct or purchase new buildings for schools or
20-8 related facilities;
20-9 (2) To enlarge, remodel or renovate existing buildings for schools or
20-10 related facilities; and
20-11 (3) To acquire sites for building schools or related facilities, or other
20-12 real property for purposes related to schools.
20-13 3. The governing body may, without requiring competitive bids,
20-14 designate the auditor or firm annually. The auditor or firm must be
20-15 designated and notification of the auditor or firm designated must be
20-16 sent to the department of taxationnot later than 3 months before the close
20-17 of the fiscal year for which the audit is to be made.
20-18 4. Each annual audit must cover the business of the local government
20-19 during the full fiscal year. It must be a financial audit conducted in
20-20 accordance with generally accepted auditing standards[, including
20-21 comment] in the United States, including, findings on compliance with
20-22 statutes and regulations[, recommendations for improvements and any
20-23 other comments deemed pertinent by the auditor, including his] and an
20-24 expression of opinion on the financial statements. The department of
20-25 taxation shall prescribe the form of the financial statements, and the chart
20-26 of accounts must be as nearly as possible the same as the chart that is used
20-27 in the preparation and publication of the annual budget. The report of the
20-28 audit must include:
20-29 (a) A schedule of all fees imposed by the local government which were
20-30 subject to the provisions of NRS 354.5989; and
20-31 (b) A comparison of the operations of the local government with the
20-32 approved budget, including a statement from the auditor that indicates
20-33 whether the governing body has taken action [by adoption as
20-34 recommended, by adoption with modifications or by rejection on any
20-35 deficiencies in operations and recommendations for improvements which
20-36 were noted or made in previous reports;
20-37 (c)] on the audit report for the prior year.
20-38 5. Each local government shall provide to its auditor:
20-39 (a)A statement [from the auditor that indicates] indicating whether
20-40 each of the following funds established by the local government is being
20-41 used expressly for the purposes for which it was created, in the form
20-42 required by NRS 354.6241:
20-43 (1) An enterprise fund.
20-44 (2) An internal service fund.
20-45 (3) A [trust or agency] fiduciary fund.
20-46 (4) A self-insurance fund.
20-47 (5) A fund whose balance is required by law to be:
20-48 (I) Used only for a specific purpose other than the payment of
20-49 compensation to a bargaining unit, as defined in NRS 288.028; or
21-1 (II) Carried forward to the succeeding fiscal year in any designated
21-2 amount; and
21-3 [(d)] (b) A list and description of any property conveyed to a nonprofit
21-4 organization pursuant to NRS 244.287 or 268.058.
21-5 [5. The recommendations and the summary of the narrative comments]
21-6 6. The opinion and findings of the auditor contained in the report of
21-7 the audit must be [read in full] presented at a meeting of the governing
21-8 body held not more than 30 days after the report is submitted to it.
21-9 Immediately thereafter, the entire report, together with [any related letter
21-10 to the governing body] the management letterrequired by generally
21-11 accepted auditing standards in the United States or by regulations adopted
21-12 pursuant to NRS 354.594, must be filed as a public record with:
21-13 (a) The clerk or secretary of the governing body;
21-14 (b) The county clerk;
21-15 (c) The department of taxation; and
21-16 (d) In the case of a school district, the department of education.
21-17 [6.] 7. If an auditor finds evidence of fraud or dishonesty in the
21-18 financial statements of a local government, the auditor shall report such
21-19 evidence to the appropriate level of management in the local
21-20 government.
21-21 8. The governing body shall act upon the recommendations of the
21-22 report of the audit within 3 months after receipt of the report, unless
21-23 prompter action is required concerning violations of law or regulation, by
21-24 setting forth in its minutes its intention to adopt the recommendations, to
21-25 adopt them with modifications or to reject them for reasons shown in the
21-26 minutes.
21-27 Sec. 44. NRS 354.6241 is hereby amended to read as follows:
21-28 354.6241 1. The statement required by paragraph [(c)] (a) of
21-29 subsection [4] 5 of NRS 354.624 must indicate for each fund set forth in
21-30 that paragraph:
21-31 (a) Whether the fund is being used in accordance with the provisions of
21-32 this chapter.
21-33 (b) Whether the fund is being administered in accordance with generally
21-34 accepted accounting procedures.
21-35 (c) Whether the reserve in the fund is limited to an amount that is
21-36 reasonable and necessary to carry out the purposes of the fund.
21-37 (d) The sources of revenues available for the fund during the fiscal year,
21-38 including transfers from any other funds.
21-39 (e) The statutory and regulatory requirements applicable to the fund.
21-40 (f) The balance and retained earnings of the fund.
21-41 2. Except as otherwise provided in NRS 354.59891, to the extent that
21-42 the reserve in any fund set forth in paragraph [(c)] (a) of subsection [4] 5
21-43 of NRS 354.624 exceeds the amount that is reasonable and necessary to
21-44 carry out the purposes for which the fund was created, the reserve may be
21-45 expended by the local government pursuant to the provisions of chapter
21-46 288 of NRS.
21-47 Sec. 45. NRS 354.626 is hereby amended to read as follows:
21-48 354.626 1. No governing body or member thereof, officer, office,
21-49 department or agency may, during any fiscal year, expend or contract to
21-50 expend any money or incur any liability, or enter into any contract which
21-51 by its terms involves the expenditure of money, in excess of the amounts
22-1 appropriated for that function, other than bond repayments, medium-term
22-2 obligation repayments, and any other long-term contract expressly
22-3 authorized by law. Any officer or employee of a local government who
22-4 willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a
22-5 misdemeanor, and upon conviction thereof ceases to hold his office or
22-6 employment. Prosecution for any violation of this section may be
22-7 conducted by the attorney general, or, in the case of incorporated cities,
22-8 school districts or special districts, by the district attorney.
22-9 2. Without limiting the generality of the exceptions contained in
22-10 subsection 1, the provisions of this section specifically do not apply to:
22-11 (a) Purchase of [comprehensive general liability policies] coverage and
22-12 professional services directly related to a program of insurance which
22-13 require an audit at the end of the term thereof.
22-14 (b) Long-term cooperative agreements as authorized by chapter 277 of
22-15 NRS.
22-16 (c) Long-term contracts in connection with planning and zoning as
22-17 authorized by NRS 278.010 to 278.630, inclusive.
22-18 (d) Long-term contracts for the purchase of utility service such as, but
22-19 not limited to, heat, light, sewerage, power, water and telephone service.
22-20 (e) Contracts between a local government and an employee covering
22-21 professional services to be performed within 24 months following the date
22-22 of such contract or contracts entered into between local government
22-23 employers and employee organizations.
22-24 (f) Contracts between a local government and any person for the
22-25 construction or completion of public works, money for which has been or
22-26 will be provided by the proceeds of a sale of bonds or medium-term
22-27 obligations and that are entered into by the local government after:
22-28 (1) Any election required for the approval of the bonds has been held;
22-29 (2) Any approvals by any other governmental entity required to be
22-30 obtained before the bonds or medium-term obligations can be issued have
22-31 been obtained; and
22-32 (3) The ordinance or resolution that specifies each of the terms of the
22-33 bonds or medium-term obligations, except those terms that are set forth in
22-34 paragraphs (a) to (e), inclusive, of subsection 2 of NRS 350.165, has been
22-35 adopted.
22-36 Neither the fund balance of a governmental fund nor the equity balance in
22-37 any proprietary fund may be used unless appropriated in a manner
22-38 provided by law.
22-39 (g) Contracts which are entered into by a local government and
22-40 delivered to any person solely for the purpose of acquiring supplies ,
22-41 services, and equipment necessarily ordered in the current fiscal year for
22-42 use in an ensuing fiscal year, and which, under the method of accounting
22-43 adopted by the local government, will be charged against an appropriation
22-44 of a subsequent fiscal year. Purchase orders evidencing such contracts are
22-45 public records available for inspection by any person on demand.
22-46 (h) Long-term contracts for the furnishing of television or FM radio
22-47 broadcast translator signals as authorized by NRS 269.127.
22-48 (i) The receipt and proper expenditure of money received pursuant to a
22-49 grant awarded by an agency of the Federal Government.
23-1 (j) The incurrence of obligations beyond the current fiscal year under a
23-2 lease or contract for installment purchase which contains a provision that
23-3 the obligation incurred thereby is extinguished by the failure of the
23-4 governing body to appropriate money for the ensuing fiscal year for the
23-5 payment of the amounts then due.
23-6 Sec. 46. NRS 354.655 is hereby amended to read as follows:
23-7 354.655 As used in NRS 354.655 to 354.725, inclusive, unless the
23-8 context requires otherwise:
23-9 1. “Committee” means the committee on local government finance.
23-10 2. “Department” means the department of taxation.
23-11 3. “Executive director” means the executive director of the department
23-12 of taxation.
23-13 4. “Local government” means any local government subject to the
23-14 provisions of the Local Government Budget and Finance Act.
23-15 5. The words and terms defined in the Local Government Budget and
23-16 FinanceAct have the meanings ascribed to them in that act.
23-17 Sec. 47. NRS 354.665 is hereby amended to read as follows:
23-18 354.665 1. If a local government does not file a statement, report or
23-19 other document as required by the provisions of NRS 350.0035, 354.602,
23-20 354.6025, 354.624, 354.6245 or 387.303 within 15 days after the day on
23-21 which it was due, the executive director shall notify the governing body of
23-22 the local government in writing that the report is delinquent. The
23-23 notification must be noted in the minutes of the first meeting of the
23-24 governing body following transmittal of the notification.
23-25 2. If the required report is not received by the department within 45
23-26 days after the day on which the report was due, the executive director shall
23-27 notify the governing body that the presence of a representative of the
23-28 governing body is required at the next practicable scheduled meeting of
23-29 the [Nevada tax commission] committee to explain the reason that the
23-30 report has not been filed. The notice must be transmitted to the governing
23-31 body at least 5 days before the date on which the meeting will be held.
23-32 3. If an explanation satisfactory to the [Nevada tax commission]
23-33 committee is not proviGreen numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).ded at the meeting as requested in the notice and an
23-34 arrangement is not made for the submission of the report, the
23-35 [commission] committee may instruct the executive director to request that
23-36 the state treasurer withhold from the local government the next
23-37 distribution [of the supplemental city-county relief tax] from the local
23-38 government tax distribution accountif the local government is otherwise
23-39 entitled to receive such a distribution or of the Local School Support Tax
23-40 if the local government is a school district. Upon receipt of such a request,
23-41 the state treasurer shall withhold the payment and all future payments until
23-42 he is notified by the executive director that the report has been received by
23-43 the department.
23-44 Sec. 48. NRS 354.685 is hereby amended to read as follows:
23-45 354.685 1. If the department finds that one or more of the following
23-46 conditions exist in any local government, after giving consideration to the
23-47 severity of the condition, it may determine that one or more hearings
23-48 should be conducted to determine the extent of the problem and to
23-49 determine whether a recommendation of severe financial emergency
23-50 should be made to the Nevada tax commission:
24-1 (a) Required financial reports have not been filed or are consistently
24-2 late.
24-3 (b) The audit report reflects the unlawful expenditure of money in
24-4 excess of the amount appropriated in violation of the provisions of NRS
24-5 354.626.
24-6 (c) The audit report shows funds with deficit fund balances.
24-7 (d) The local government has incurred debt beyond its ability to repay.
24-8 (e) The local government has not corrected violations of statutes or
24-9 regulations adopted pursuant thereto as noted in the audit report.
24-10 (f) The local government has serious internal control problems noted in
24-11 the audit report which have not been corrected.
24-12 (g) The local government has a record of being late in its payments for
24-13 services and supplies.
24-14 (h) The local government has had insufficient cash to meet required
24-15 payroll payments in a timely manner.
24-16 (i) The local government has borrowed money or entered into long-term
24-17 lease arrangements without following the provisions of NRS or regulations
24-18 adopted pursuant thereto.
24-19 (j) The governing body of the local government has failed to correct
24-20 problems after it has been notified of such problems by the department.
24-21 (k) The local government has not separately accounted for its individual
24-22 funds as required by chapter 354 of NRS.
24-23 (l) The local government has invested its money in financial instruments
24-24 in violation of the provisions of chapter 355 of NRS.
24-25 (m) The local government is in violation of any covenant in connection
24-26 with any debt issued by the local government.
24-27 (n) The local government has not made bond and lease payments in
24-28 accordance with the approved payment schedule.
24-29 (o) The local government has failed to control its assets such that large
24-30 defalcations have occurred which have impaired the financial condition of
24-31 the local government.
24-32 (p) The local government has recognized sizeable losses as a result of
24-33 the imprudent investment of money.
24-34 (q) The local government has allowed its accounting system and
24-35 recording of transactions to deteriorate to such an extent that it is not
24-36 possible to measure accurately the results of operations or to ascertain the
24-37 financial position of the local government without a reconstruction of
24-38 transactions.
24-39 (r) The local government has consistently issued checks not covered by
24-40 adequate deposits.
24-41 (s) The local government has loaned and borrowed money between
24-42 funds without following the proper procedures.
24-43 (t) The local government has expended money in violation of the
24-44 provisions governing the expenditure of that money.
24-45 (u) Money restricted for any specific use has been expended in violation
24-46 of the terms and provisions relating to the receipt and expenditure of that
24-47 money.
24-48 (v) Money has been withheld in accordance with the provisions of NRS
24-49 354.665.
25-1 (w) If the local government is a school district, a loan has been made
25-2 from the state permanent school fund to the school district pursuant to NRS
25-3 387.526.
25-4 (x) An employer in the county that accounts for more than 15 percent
25-5 of the employment in the county has closed or significantly reduced
25-6 operations.
25-7 (y) The local government has experienced a cumulative decline of 10
25-8 percent in population or assessed valuation for the past 2 years.
25-9 (z) The ending balance in the general fund of the local government
25-10 has declined for the past 2 years.
25-11 (aa) The local government has failed to pay, in a timely manner,
25-12 contributions to the public employees’ retirement system, workers’
25-13 compensation or payroll taxes or fails to pay, at any time, a payment
25-14 required pursuant to the Federal Insurance Contributions Act.
25-15 2. If the department determines that a condition listed in subsection 1
25-16 exists, the department shall:
25-17 (a) Notify the local government about the determination;
25-18 (b) Request from the local government any information that the
25-19 department deems to be appropriate to determine the extent of the
25-20 condition; and
25-21 (c) Require the local government to formulate a plan of corrective
25-22 action to mitigate the possible financial emergency.
25-23 3. Within 45 days after receiving notification pursuant to subsection
25-24 2, a local government shall submit to the committee any information
25-25 requested by the department and a plan of corrective action.
25-26 4. The committee shall:
25-27 (a) Review a plan of corrective action submitted by a local
25-28 government;
25-29 (b) Provide observations and recommendations for the local
25-30 government; and
25-31 (c) If the committee deems necessary, periodically review the status of
25-32 the financial operations of the local government.
25-33 5. The department shall report the observations and
25-34 recommendations of the committee to the Nevada tax commission.
25-35 6. In addition to any notice otherwise required, the department shall
25-36 give notice of any hearing held pursuant to subsection 1 to the governing
25-37 body of each local government whose jurisdiction overlaps with the
25-38 jurisdiction of the local government whose financial condition will be
25-39 considered at least 10 days before the date on which the hearing will be
25-40 held.
25-41 [3.] 7. If the department, following the hearing or hearings,
25-42 determines that a recommendation of severe financial emergency should
25-43 be made to the Nevada tax commission, it shall make such a
25-44 recommendation as soon as practicable. Upon receipt of such a
25-45 recommendation, the Nevada tax commission shall hold a hearing at
25-46 which the department, the local government whose financial condition will
25-47 be considered and each local government whose jurisdiction overlaps with
25-48 the jurisdiction of the local government whose financial condition will be
25-49 considered are afforded an opportunity to be heard. If, after the hearing,
25-50 the Nevada tax commission determines that a severe financial emergency
25-51 exists, it shall require by
26-1 order that the department take over the management of the local
26-2 government as soon as practicable.
26-3 8. As used in this section, “Federal Insurance Contributions Act”
26-4 means subchapter A of chapter 9 of the Internal Revenue Code of 1939
26-5 and subchapters A and B of chapter 21 of the Internal Revenue Code of
26-6 1954, as such codes have been and may from time to time be amended.
26-7 Sec. 49. NRS 354.695 is hereby amended to read as follows:
26-8 354.695 1. As soon as practicable after taking over the management
26-9 of a local government, the department shall, with the approval of the
26-10 committee:
26-11 (a) Establish and implement a management policy and a financing plan
26-12 for the local government;
26-13 (b) Provide for the appointment of a financial manager for the local
26-14 government who is qualified to manage the fiscal affairs of the local
26-15 government;
26-16 (c) Provide for the appointment of any other persons necessary to
26-17 enable the local government to provide the basic services for which it was
26-18 created in the most economical and efficient manner possible;
26-19 (d) Establish an accounting system and separate accounts in a bank or
26-20 credit union, if necessary, to receive and expend all money and assets of
26-21 the local government;
26-22 (e) Impose such hiring restrictions as deemed necessary after
26-23 considering the recommendations of the financial manager;
26-24 (f) Negotiate and approve all contracts entered into by or on behalf of
26-25 the local government before execution and enter into such contracts on
26-26 behalf of the local government as the department deems necessary;
26-27 (g) Negotiate and approve all collective bargaining contracts to be
26-28 entered into by the local government, except issues submitted to a
26-29 factfinder whose findings and recommendations are final and binding
26-30 pursuant to the provisions of the Local Government Employee
26-31 -Management Relations Act;
26-32 (h) Approve all expenditures of money from any fund or account and all
26-33 transfers of money from one fund to another;
26-34 (i) Employ such technicians as are necessary for the improvement of the
26-35 financial condition of the local government;
26-36 (j) Meet with the creditors of the local government and formulate a debt
26-37 liquidation program;
26-38 (k) Approve the issuance of bonds or other forms of indebtedness by the
26-39 local government;
26-40 (l) Discharge any of the outstanding debts and obligations of the local
26-41 government; and
26-42 (m) Take any other actions necessary to ensure that the local
26-43 government provides the basic services for which it was created in the
26-44 most economical and efficient manner possible.
26-45 2. The department may provide for reimbursement from the local
26-46 government for the expenses [it] the department incurs in managing the
26-47 local government. If such reimbursement is not possible, the department
26-48 may request an allocation by the interim finance committee from the
26-49 contingency fund pursuant to NRS 353.266, 353.268 and 353.269.
27-1 3. The governing body of a local government which is being managed
27-2 by the department pursuant to this section may make recommendations to
27-3 the department or the financial manager concerning the management of
27-4 the local government.
27-5 4. Each state agency, board, department, commission, committee or
27-6 other entity of the state shall provide such technical assistance concerning
27-7 the management of the local government as is requested by the
27-8 department.
27-9 5. The department may delegate any of the powers and duties imposed
27-10 by this section to the financial manager appointed pursuant to paragraph
27-11 (b) of subsection 1.
27-12 6. Except as otherwise provided in NRS 354.723 and 450.760, once
27-13 the department has taken over the management of a local government
27-14 pursuant to the provisions of subsection 1, that management may only be
27-15 terminated pursuant to NRS 354.725.
27-16 Sec. 50. NRS 354.705 is hereby amended to read as follows:
27-17 354.705 1. As soon as practicable after the department takes over the
27-18 management of a local government, the executive director shall:
27-19 (a) Determine the total amount of expenditures necessary to allow the
27-20 local government to perform the basic functions for which it was created;
27-21 (b) Determine the amount of revenue reasonably expected to be
27-22 available to the local government; and
27-23 (c) Consider any alternative sources of revenue available to the local
27-24 government.
27-25 2. If the executive director determines that the available revenue is not
27-26 sufficient to provide for the payment of required debt service and
27-27 operating expenses, he may submit his findings to the committee who
27-28 shall review the determinations made by the executive director. If the
27-29 committee determines that additional revenue is needed, it shall prepare a
27-30 recommendation to the Nevada tax commission as to which one or more
27-31 of the following additional taxes or charges should be imposed by the
27-32 local government:
27-33 (a) The levy of a property tax up to a rate which when combined with
27-34 all other overlapping rates levied in the state does not exceed $4.50 on
27-35 each $100 of assessed valuation.
27-36 (b) An additional tax on transient lodging at a rate not to exceed 1
27-37 percent of the gross receipts from the rental of transient lodging within the
27-38 boundaries of the local government upon all persons in the business of
27-39 providing lodging. Any such tax must be collected and administered in the
27-40 same manner as all other taxes on transient lodging are collected by or for
27-41 the local government.
27-42 (c) Additional service charges appropriate to the local government.
27-43 (d) If the local government is a county or has boundaries that are
27-44 conterminous with the boundaries of the county:
27-45 (1) An additional tax on the gross receipts from the sale or use of
27-46 tangible personal property not to exceed one quarter of 1 percent
27-47 throughout the county. The ordinance imposing any such tax must include
27-48 provisions in substance which comply with the requirements of
27-49 subsections 2 to 5, inclusive, of NRS 377A.030.
27-50 (2) An additional governmental services tax of not more than 1 cent
27-51 on each $1 of valuation of the vehicle for the privilege of operating upon
28-1 the public streets, roads and highways of the county on each vehicle based
28-2 in the county except those vehicles exempt from the governmental services
28-3 tax imposed pursuant to chapter 371 of NRS or a vehicle subject to NRS
28-4 706.011 to 706.861, inclusive, which is engaged in interstate or
28-5 intercounty operations. As used in this subparagraph, “based” has the
28-6 meaning ascribed to it in NRS 482.011.
28-7 3. Upon receipt of the plan from the committee, a panel consisting of
28-8 three members of the Nevada tax commission appointed by the Nevada
28-9 tax commission and three members of the committee appointed by the
28-10 committeeshall hold a public hearing at a location within the boundaries
28-11 of the local government in which the severe financial emergency exists
28-12 after giving public notice of the hearing at least 10 days before the date on
28-13 which the hearing will be held. In addition to the public notice, the
28-14 [Nevada tax commission] panel shall give notice to the governing body of
28-15 each local government whose jurisdiction overlaps with the jurisdiction of
28-16 the local government in which the severe financial emergency exists.
28-17 4. After the public hearing[,] conducted pursuant to subsection 3, the
28-18 Nevada tax commission may adopt the plan as submitted or adopt a
28-19 revised plan. Any plan adopted pursuant to this section must include the
28-20 duration for which any new or increased taxes or charges may be collected
28-21 which must not exceed 5 years.
28-22 5. Upon adoption of the plan by the Nevada tax commission, the local
28-23 government in which the severe financial emergency exists shall impose
28-24 or cause to be imposed the additional taxes and charges included in the
28-25 plan for the duration stated in the plan or until the severe financial
28-26 emergency has been determined by the Nevada tax commission to have
28-27 ceased to exist.
28-28 6. The allowed revenue from taxes ad valorem determined pursuant to
28-29 NRS 354.59811 does not apply to any additional property tax levied
28-30 pursuant to this section.
28-31 7. If a plan fails to satisfy the expenses of the local government to the
28-32 extent expected, the committee shall report such failure to:
28-33 (a) The county for consideration of absorption of services; or
28-34 (b) If the local government is a county, to the next regular session of
28-35 the legislature.
28-36 Sec. 51. NRS 4.035 is hereby amended to read as follows:
28-37 4.035 1. The court administrator shall, at the direction of the chief
28-38 justice of the supreme court, arrange for the giving of instruction, at the
28-39 National Judicial College in Reno, Nevada, or elsewhere:
28-40 (a) In court procedure, recordkeeping and the elements of substantive
28-41 law appropriate to a justice’s court, to each justice of the peace who is first
28-42 elected or appointed to office after July 1, 1971, and to other justices of
28-43 the peace who so desire and who can be accommodated, between each
28-44 general election and January 1 next following.
28-45 (b) In statutory amendments and other developments in the law
28-46 appropriate to a justice’s court, to all justices of the peace at least once
28-47 each year.
28-48 2. Each county shall pay to the supreme court the county’s pro rata
28-49 share of the costs of that instruction as budgeted for pursuant to the Local
28-50 Government Budget and Finance Act.
29-1 3. The supreme court shall deposit with the state treasurer, for credit to
29-2 the appropriate account of the supreme court, all money received pursuant
29-3 to subsection 2.
29-4 Sec. 52. NRS 5.025 is hereby amended to read as follows:
29-5 5.025 1. The court administrator shall, at the direction of the chief
29-6 justice of the supreme court, arrange for the giving of instruction, at the
29-7 National Judicial College in Reno, Nevada, or elsewhere:
29-8 (a) In court procedure, recordkeeping and the elements of substantive
29-9 law appropriate to a municipal court, to each municipal judge who is first
29-10 elected or appointed to office after July 1, 1971, and to other such judges
29-11 who so desire and who can be accommodated, between each election
29-12 designated for the election of such judges and the date of entering office.
29-13 (b) In statutory amendments and other developments in the law
29-14 appropriate to a municipal court, to all such judges at convenient intervals.
29-15 2. Each city shall pay to the supreme court the city’s pro rata share of
29-16 the costs of such instruction as budgeted for pursuant to the Local
29-17 Government Budget and Finance Act.
29-18 3. The supreme court shall deposit with the state treasurer, for credit to
29-19 the appropriate account of the supreme court, all money received pursuant
29-20 to subsection 2.
29-21 Sec. 53. NRS 41.075 is hereby amended to read as follows:
29-22 41.075 No cause of action may be brought against the committee on
29-23 local government finance created pursuant to [NRS 266.0165,] section 4
29-24 of this act,or any of its members, which is based upon:
29-25 1. Any act or omission in the execution of, or otherwise in conjunction
29-26 with, the execution of NRS 354.655 to 354.725, inclusive, or any policy or
29-27 plan adopted pursuant thereto, whether or not such statute, policy or plan
29-28 is valid, if the statute, policy or plan has not been declared invalid by a
29-29 court of competent jurisdiction; or
29-30 2. The exercise or performance or the failure to exercise or perform a
29-31 discretionary function or duty on the part of the committee on local
29-32 government finance or member thereof, whether or not the discretion
29-33 involved is abused.
29-34 Sec. 54. NRS 218.53881 is hereby amended to read as follows:
29-35 218.53881 1. There is hereby established a legislative committee to
29-36 study the distribution among local governments of revenue from state and
29-37 local taxes consisting of:
29-38 (a) Two members appointed by the majority leader of the senate from
29-39 the membership of the senate standing committee on government affairs
29-40 during the immediately preceding session of the legislature;
29-41 (b) Two members appointed by the majority leader of the senate from
29-42 the membership of the senate standing committee on taxation during the
29-43 immediately preceding session of the legislature;
29-44 (c) Two members appointed by the speaker of the assembly from the
29-45 membership of the assembly standing committee on government affairs
29-46 during the immediately preceding session of the legislature; and
29-47 (d) Two members appointed by the speaker of the assembly from the
29-48 membership of the assembly standing committee on taxation during the
29-49 immediately preceding session of the legislature.
30-1 2. The committee shall consult with an advisory committee consisting
30-2 of the executive director of the department of taxation and 10 members
30-3 who are representative of various geographical areas of the state and are
30-4 appointed for terms of 2 years commencing on July 1 of each odd
30-5 -numbered year as follows:
30-6 (a) One member of the committee on local government finance created
30-7 pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada
30-8 League of Cities;
30-9 (b) One member of the committee on local government finance created
30-10 pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada
30-11 Association of Counties;
30-12 (c) One member of the committee on local government finance created
30-13 pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada
30-14 School Trustees Association;
30-15 (d) Three members involved in the government of a county appointed
30-16 by the Nevada Association of Counties;
30-17 (e) Three members involved in the government of an incorporated city
30-18 appointed by the Nevada League of Cities; and
30-19 (f) One member who is a member of a board of trustees for a general
30-20 improvement district appointed by the legislative commission.
30-21 The members of the advisory committee are nonvoting members of the
30-22 committee. When meeting as the advisory committee, the members shall
30-23 comply with the provisions of chapter 241 of NRS.
30-24 3. The legislative members of the committee shall elect a chairman
30-25 from one house of the legislature and a vice chairman from the other
30-26 house. Each chairman and vice chairman holds office for a term of 2 years
30-27 commencing on July 1 of each odd-numbered year.
30-28 4. Any member of the committee who is not a candidate for reelection
30-29 or who is defeated for reelection continues to serve until the next session
30-30 of the legislature convenes.
30-31 5. Vacancies on the committee must be filled in the same manner as
30-32 original appointments.
30-33 6. The committee shall report annually to the legislative commission
30-34 concerning its activities and any recommendations.
30-35 Sec. 55. NRS 244A.615 is hereby amended to read as follows:
30-36 244A.615 As provided by law, the county fair and recreation board
30-37 shall comply with the provisions of the Local Government Budget and
30-38 FinanceAct.
30-39 Sec. 56. NRS 271.536 is hereby amended to read as follows:
30-40 271.536 In lieu of issuing bonds or interim securities to defray the cost
30-41 of an improvement to be constructed by way of a special improvement
30-42 district, the governing body may advance money to cover that cost from:
30-43 1. The general fund of the municipality, if the cost of the improvement
30-44 does not exceed $300,000; or
30-45 2. [An internal service] A proprietary fund, if the municipality has
30-46 established [an internal service] a proprietary fund for that purpose
30-47 pursuant to NRS 354.612.
30-48 Sec. 57. NRS 278.806 is hereby amended to read as follows:
30-49 278.806 1. The agency shall establish and maintain an office within
30-50 the state. The agency may rent property and equipment. Every plan,
31-1 ordinance and other record of the agency which is of such nature as to
31-2 constitute a public record under the law of the State of Nevada shall be
31-3 open to inspection and copying during regular office hours.
31-4 2. The agency shall be deemed to be a local government for the
31-5 purposes of the Local Government Budget and Finance Act.
31-6 Sec. 57.5 NRS 360.690 is hereby amended to read as follows:
31-7 360.690 1. Except as otherwise provided in NRS 360.730, the
31-8 executive director shall estimate monthly the amount each local
31-9 government, special district and enterprise district will receive from the
31-10 account pursuant to the provisions of this section.
31-11 2. The executive director shall establish a base monthly allocation for
31-12 each local government, special district and enterprise district by dividing
31-13 the amount determined pursuant to NRS 360.680 for each local
31-14 government, special district and enterprise district by 12 and the state
31-15 treasurer shall, except as otherwise provided in subsections 3, 4 and 5,
31-16 remit monthly that amount to each local government, special district and
31-17 enterprise district.
31-18 3. If, after making the allocation to each enterprise district for the
31-19 month, the executive director determines there is not sufficient money
31-20 available in the county’s subaccount in the account to allocate to each
31-21 local government and special district the base monthly allocation
31-22 determined pursuant to subsection 2, he shall prorate the money in the
31-23 county’s subaccount and allocate to each local government and special
31-24 district an amount equal to the percentage of the amount that the local
31-25 government or special district received from the total amount which was
31-26 distributed to all local governments and special districts within the county
31-27 for the fiscal year immediately preceding the year in which the allocation
31-28 is made. The state treasurer shall remit that amount to the local
31-29 government or special district.
31-30 4. Except as otherwise provided in subsection 5, if the executive
31-31 director determines that there is money remaining in the county’s
31-32 subaccount in the account after the base monthly allocation determined
31-33 pursuant to subsection 2 has been allocated to each local government,
31-34 special district and enterprise district, he shall immediately determine and
31-35 allocate each:
31-36 (a) Local government’s share of the remaining money by:
31-37 (1) Multiplying one-twelfth of the amount allocated pursuant to NRS
31-38 360.680 by one plus the sum of the:
31-39 (I) Percentage change in the population of the local government for
31-40 the fiscal year immediately preceding the year in which the allocation is
31-41 made, as certified by the governor pursuant to NRS 360.285 except as
31-42 otherwise provided in subsection 6; and
31-43 (II) Average percentage of change in the assessed valuation of the
31-44 taxable property in the local government, including assessed valuation
31-45 attributable to a redevelopment agency but excluding the portion
31-46 attributable to the net proceeds of minerals, over the year in which the
31-47 allocation is made, as projected by the department pursuant to NRS
31-48 361.390, and the 4 fiscal years immediately preceding the year in which
31-49 the allocation is made; and
31-50 (2) Using the figure calculated pursuant to subparagraph (1) to
31-51 calculate and allocate to each local government an amount equal to the
32-1 proportion that the figure calculated pursuant to subparagraph (1) bears to
32-2 the total amount of the figures calculated pursuant to subparagraph (1) of
32-3 this paragraph and subparagraph (1) of paragraph (b), respectively, for the
32-4 local governments and special districts located in the same county
32-5 multiplied by the total amount available in the subaccount; and
32-6 (b) Special district’s share of the remaining money by:
32-7 (1) Multiplying one-twelfth of the amount allocated pursuant to NRS
32-8 360.680 by one plus the average change in the assessed valuation of the
32-9 taxable property in the special district, including assessed valuation
32-10 attributable to a redevelopment agency but excluding the portion
32-11 attributable to the net proceeds of minerals, over the 5 fiscal years
32-12 immediately preceding the year in which the allocation is made; and
32-13 (2) Using the figure calculated pursuant to subparagraph (1) to
32-14 calculate and allocate to each special district an amount equal to the
32-15 proportion that the figure calculated pursuant to subparagraph (1) bears to
32-16 the total amount of the figures calculated pursuant to subparagraph (1) of
32-17 this paragraph and subparagraph (1) of paragraph (a), respectively, for the
32-18 local governments and special districts located in the same county
32-19 multiplied by the total amount available in the subaccount.
32-20 The state treasurer shall remit the amount allocated to each local
32-21 government or special district pursuant to this subsection.
32-22 5. The executive director shall not allocate any amount to a local
32-23 government or special district pursuant to subsection 4, unless the amount
32-24 distributed and allocated to each of the local governments and special
32-25 districts in the county in each preceding month of the fiscal year in which
32-26 the allocation is to be made was at least equal to the base monthly
32-27 allocation determined pursuant to subsection 2. If the amounts distributed
32-28 to the local governments and special districts in the county for the
32-29 preceding months of the fiscal year in which the allocation is to be made
32-30 were less than the base monthly allocation determined pursuant to
32-31 subsection 2 and the executive director determines there is money
32-32 remaining in the county’s subaccount in the account after the distribution
32-33 for the month has been made, he shall:
32-34 (a) Determine the amount by which the base monthly allocations
32-35 determined pursuant to subsection 2 for each local government and special
32-36 district in the county for the preceding months of the fiscal year in which
32-37 the allocation is to be made exceeds the amounts actually received by the
32-38 local governments and special districts in the county for the same period;
32-39 and
32-40 (b) Compare the amount determined pursuant to paragraph (a) to the
32-41 amount of money remaining in the county’s subaccount in the account to
32-42 determine which amount is greater.
32-43 If the executive director determines that the amount determined pursuant to
32-44 paragraph (a) is greater, he shall allocate the money remaining in the
32-45 county’s subaccount in the account pursuant to the provisions of
32-46 subsection 3. If the executive director determines that the amount of money
32-47 remaining in the county’s subaccount in the account is greater, he shall
32-48 first allocate the money necessary for each local government and special
32-49 district to receive the base monthly allocation determined pursuant to
32-50 subsection 2 and the state treasurer shall remit that money so allocated.
32-51 The executive
33-1 director shall allocate any additional money in the county’s subaccount in
33-2 the account pursuant to the provisions of subsection 4.
33-3 6. The percentage change calculated pursuant to paragraph (a) of
33-4 subsection 4 must:
33-5 (a) [If] Except as otherwise provided in paragraph (c), if the Bureau of
33-6 the Census of the United States Department of Commerce issues
33-7 population totals that conflict with the totals certified by the governor
33-8 pursuant to NRS 360.285, be an estimate of the change in population for
33-9 the calendar year, based upon the population totals issued by the Bureau of
33-10 the Census.
33-11 (b) If a new method of determining population is established pursuant to
33-12 NRS 360.283, be adjusted in a manner that will result in the percentage
33-13 change being based on population determined pursuant to the new method
33-14 for both the fiscal year in which the allocation is made and the fiscal year
33-15 immediately preceding the year in which the allocation is made.
33-16 (c) If a local government files a formal appeal with the Bureau of the
33-17 Census of the United States Department of Commerce concerning the
33-18 population total of the local government issued by the Bureau of the
33-19 Census, be calculated using the population total certified by the
33-20 governor pursuant to NRS 360.285 until the appeal is resolved. If
33-21 additional money is allocated to the local government because the
33-22 population total certified by the governor is greater than the population
33-23 total issued by the Bureau of the Census, the state treasurer shall deposit
33-24 that additional money in a separate interest-bearing account. Upon
33-25 resolution of the appeal, if the population total finally determined
33-26 pursuant to the appeal is:
33-27 (1) Equal to or less than the population total initially issued by the
33-28 Bureau of the Census, the state treasurer shall transfer the total amount
33-29 in the separate interest-bearing account, including interest but
33-30 excluding any administrative fees, to the local government tax
33-31 distribution account for allocation among the local governments in the
33-32 county pursuant to subsection 4.
33-33 (2) Greater than the population total initially issued by the Bureau
33-34 of the Census, the executive director shall calculate the amount that
33-35 would have been allocated to the local government pursuant to
33-36 subsection 4 if the population total finally determined pursuant to the
33-37 appeal had been used and the state treasurer shall remit to the local
33-38 government an amount equal to the difference between the amount
33-39 actually distributed and the amount calculated pursuant to this
33-40 subparagraph or the total amount in the separate interest-bearing
33-41 account, including interest but excluding any administrative fees,
33-42 whichever is less.
33-43 7. On or before February 15 of each year, the executive director shall
33-44 provide to each local government, special district and enterprise district a
33-45 preliminary estimate of the revenue it will receive from the account for
33-46 that fiscal year.
33-47 8. On or before March 15 of each year, the executive director shall:
33-48 (a) Make an estimate of the receipts from each tax included in the
33-49 account on an accrual basis for the next fiscal year in accordance with
34-1 generally accepted accounting principles, including an estimate for each
34-2 county of the receipts from each tax included in the account; and
34-3 (b) Provide to each local government, special district and enterprise
34-4 district an estimate of the amount that local government, special district or
34-5 enterprise district would receive based upon the estimate made pursuant to
34-6 paragraph (a) and calculated pursuant to the provisions of this section.
34-7 9. A local government, special district or enterprise district may use
34-8 the estimate provided by the executive director pursuant to subsection 8 in
34-9 the preparation of its budget.
34-10 Sec. 58. NRS 360.750 is hereby amended to read as follows:
34-11 360.750 1. A person who intends to locate or expand a business in
34-12 this state may apply to the commission on economic development for a
34-13 partial abatement of one or more of the taxes imposed on the new or
34-14 expanded business pursuant to chapter 361, 364A or 374 of NRS.
34-15 2. The commission on economic development shall approve an
34-16 application for a partial abatement if the commission makes the following
34-17 determinations:
34-18 (a) The business is consistent with:
34-19 (1) The state plan for industrial development and diversification that
34-20 is developed by the commission pursuant to NRS 231.067; and
34-21 (2) Any guidelines adopted pursuant to the state plan.
34-22 (b) The applicant has executed an agreement with the commission
34-23 which states that the business will, after the date on which a certificate of
34-24 eligibility for the abatement is issued pursuant to subsection 5, continue in
34-25 operation in this state for a period specified by the commission, which
34-26 must be at least 5 years, and will continue to meet the eligibility
34-27 requirements set forth in this subsection. The agreement must bind the
34-28 successors in interest of the business for the specified period.
34-29 (c) The business is registered pursuant to the laws of this state or the
34-30 applicant commits to obtain a valid business license and all other permits
34-31 required by the county, city or town in which the business operates.
34-32 (d) Except as otherwise provided in NRS 361.0687, if the business is a
34-33 new business in a county or city whose population is 50,000 or more, the
34-34 business meets at least two of the following requirements:
34-35 (1) The business will have 75 or more full-time employees on the
34-36 payroll of the business by the fourth quarter that it is in operation.
34-37 (2) Establishing the business will require the business to make a
34-38 capital investment of at least $1,000,000 in this state.
34-39 (3) The average hourly wage that will be paid by the new business to
34-40 its employees in this state is at least 100 percent of the average statewide
34-41 hourly wage as established by the employment security division of the
34-42 department of employment, training and rehabilitation on July 1 of each
34-43 fiscal year and:
34-44 (I) The business will provide a health insurance plan for all
34-45 employees that includes an option for health insurance coverage for
34-46 dependents of the employees; and
34-47 (II) The cost to the business for the benefits the business provides
34-48 to its employees in this state will meet the minimum requirements for
34-49 benefits established by the commission by regulation pursuant to
34-50 subsection 9.
35-1 (e) Except as otherwise provided in NRS 361.0687, if the business is a
35-2 new business in a county or city whose population is less than 50,000, the
35-3 business meets at least two of the following requirements:
35-4 (1) The business will have 25 or more full-time employees on the
35-5 payroll of the business by the fourth quarter that it is in operation.
35-6 (2) Establishing the business will require the business to make a
35-7 capital investment of at least $250,000 in this state.
35-8 (3) The average hourly wage that will be paid by the new business to
35-9 its employees in this state is at least 100 percent of the average statewide
35-10 hourly wage as established by the employment security division of the
35-11 department of employment, training and rehabilitation on July 1 of each
35-12 fiscal year and:
35-13 (I) The business will provide a health insurance plan for all
35-14 employees that includes an option for health insurance coverage for
35-15 dependents of the employees; and
35-16 (II) The cost to the business for the benefits the business provides
35-17 to its employees in this state will meet the minimum requirements for
35-18 benefits established by the commission by regulation pursuant to
35-19 subsection 9.
35-20 (f) If the business is an existing business, the business meets at least two
35-21 of the following requirements:
35-22 (1) The business will increase the number of employees on its payroll
35-23 by 10 percent more than it employed in the immediately preceding fiscal
35-24 year or by six employees, whichever is greater.
35-25 (2) The business will expand by making a capital investment in this
35-26 state in an amount equal to at least 20 percent of the value of the tangible
35-27 property possessed by the business in the immediately preceding fiscal
35-28 year. The determination of the value of the tangible property possessed by
35-29 the business in the immediately preceding fiscal year must be made by the:
35-30 (I) County assessor of the county in which the business will
35-31 expand, if the business is locally assessed; or
35-32 (II) Department, if the business is centrally assessed.
35-33 (3) The average hourly wage that will be paid by the existing
35-34 business to its new employees in this state is at least 100 percent of the
35-35 average statewide hourly wage as established by the employment security
35-36 division of the department of employment, training and rehabilitation on
35-37 July 1 of each fiscal year and:
35-38 (I) The business will provide a health insurance plan for all new
35-39 employees that includes an option for health insurance coverage for
35-40 dependents of the employees; and
35-41 (II) The cost to the business for the benefits the business provides
35-42 to its new employees in this state will meet the minimum requirements for
35-43 benefits established by the commission by regulation pursuant to
35-44 subsection 9.
35-45 3. Notwithstanding the provisions of subsection 2, the commission on
35-46 economic development may:
35-47 (a) Approve an application for a partial abatement by a business that
35-48 does not meet the requirements set forth in paragraph (d), (e) or (f) of
35-49 subsection 2;
36-1 (b) Make the requirements set forth in paragraph (d), (e) or (f) of
36-2 subsection 2 more stringent; or
36-3 (c) Add additional requirements that a business must meet to qualify for
36-4 a partial abatement,
36-5 if the commission determines that such action is necessary.
36-6 4. If a person submits an application to the commission on economic
36-7 development pursuant to subsection 1, the commission shall provide
36-8 notice to the governing body of the county and the city or town, if any, in
36-9 which the person intends to locate or expand a business. The notice
36-10 required pursuant to this subsection must set forth the date, time and
36-11 location of the hearing at which the commission will consider the
36-12 application.
36-13 5. If the commission on economic development approves an
36-14 application for a partial abatement, the commission shall immediately
36-15 forward a certificate of eligibility for the abatement to:
36-16 (a) The department;
36-17 (b) The Nevada tax commission; and
36-18 (c) If the partial abatement is from the property tax imposed pursuant to
36-19 chapter 361 of NRS, the county treasurer.
36-20 6. An applicant for a partial abatement pursuant to this section or an
36-21 existing business whose partial abatement is in effect shall, upon the
36-22 request of the executive director of the commission on economic
36-23 development, furnish the executive director with copies of all records
36-24 necessary to verify that the applicant meets the requirements of
36-25 subsection 2.
36-26 7. If a business whose partial abatement has been approved pursuant to
36-27 this section and is in effect ceases:
36-28 (a) To meet the requirements set forth in subsection 2; or
36-29 (b) Operation before the time specified in the agreement described in
36-30 paragraph (b) of subsection 2,
36-31 the business shall repay to the department or, if the partial abatement was
36-32 from the property tax imposed pursuant to chapter 361 of NRS, to the
36-33 county treasurer, the amount of the exemption that was allowed pursuant
36-34 to this section before the failure of the business to comply unless the
36-35 Nevada tax commission determines that the business has substantially
36-36 complied with the requirements of this section. Except as otherwise
36-37 provided in NRS 360.232 and 360.320, the business shall, in addition to
36-38 the amount of the exemption required to be paid pursuant to this
36-39 subsection, pay interest on the amount due at the rate most recently
36-40 established pursuant to NRS 99.040 for each month, or portion thereof,
36-41 from the last day of the month following the period for which the payment
36-42 would have been made had the partial abatement not been approved until
36-43 the date of payment of the tax.
36-44 8. A county treasurer:
36-45 (a) Shall deposit any money that he receives pursuant to subsection 7 in
36-46 one or more of the funds established by a local government of the county
36-47 pursuant to NRS [354.611,] 354.6113 or 354.6115; and
36-48 (b) May use the money deposited pursuant to paragraph (a) only for the
36-49 purposes authorized by NRS [354.611,] 354.6113 and 354.6115.
36-50 9. The commission on economic development:
36-51 (a) Shall adopt regulations relating to:
37-1 (1) The minimum level of benefits that a business must provide to its
37-2 employees if the business is going to use benefits paid to employees as a
37-3 basis to qualify for a partial abatement; and
37-4 (2) The notice that must be provided pursuant to subsection 4.
37-5 (b) May adopt such other regulations as the commission on economic
37-6 development determines to be necessary to carry out the provisions of this
37-7 section.
37-8 10. The Nevada tax commission:
37-9 (a) Shall adopt regulations regarding:
37-10 (1) The capital investment that a new business must make to meet the
37-11 requirement set forth in paragraph (d) or (e) of subsection 2; and
37-12 (2) Any security that a business is required to post to qualify for a
37-13 partial abatement pursuant to this section.
37-14 (b) May adopt such other regulations as the Nevada tax commission
37-15 determines to be necessary to carry out the provisions of this section.
37-16 11. An applicant for an abatement who is aggrieved by a final decision
37-17 of the commission on economic development may petition for judicial
37-18 review in the manner provided in chapter 233B of NRS.
37-19 Sec. 59. NRS 374A.020 is hereby amended to read as follows:
37-20 374A.020 1. The collection of the tax imposed by NRS 374A.010
37-21 must be commenced on the first day of the first calendar quarter that
37-22 begins at least 30 days after the last condition in subsection 1 of NRS
37-23 374A.010 is met.
37-24 2. The tax must be administered, collected and distributed in the
37-25 manner set forth in chapter 374 of NRS.
37-26 3. The board of trustees of the school district shall transfer the
37-27 proceeds of the tax imposed by NRS 374A.010 from the county school
37-28 district fund to the fund described in NRS [354.611 which] 354.6105, if
37-29 the fundhas been established by the board of trustees. [The] Any money
37-30 deposited in the fund described in NRS [354.611] 354.6105 pursuant to
37-31 this subsection must be accounted for separately in that fund and must
37-32 only be expended by the board of trustees for the cost of the extraordinary
37-33 maintenance, extraordinary repair and extraordinary improvement of
37-34 school facilities within the county.
37-35 Sec. 60. NRS 387.3045 is hereby amended to read as follows:
37-36 387.3045 If the ending balance of the general fund of a school district
37-37 has declined for 3 consecutive years, the school district shall submit to the
37-38 committee on local government finance created pursuant to [NRS
37-39 266.0165] section 4 of this act a written explanation of the cause of the
37-40 decline.
37-41 Sec. 61. NRS 555.215 is hereby amended to read as follows:
37-42 555.215 1. Upon the preparation and approval of a budget in the
37-43 manner required by the Local Government Budget and Finance Act, the
37-44 board of county commissioners of each county having lands situated in the
37-45 district shall, by resolution, levy an assessment upon all real property in
37-46 the county which is in the weed control district.
37-47 2. Every assessment so levied is a lien against the property assessed.
37-48 3. Amounts collected in counties other than the county having the
37-49 larger or largest proportion of the area of the district must be paid over to
37-50 the board of county commissioners of that county for the use of the
37-51 district.
38-1 4. The county commissioners of that county may obtain medium-term
38-2 obligations pursuant to NRS 350.085 to 350.095, inclusive, of an amount
38-3 of money not to exceed the total amount of the assessment, to pay the
38-4 expenses of controlling the weeds in the weed control district. The loans
38-5 may be made only after the assessments are levied.
38-6 Sec. 62. NRS 555.560 is hereby amended to read as follows:
38-7 555.560 1. Upon the preparation and approval of a budget in the
38-8 manner required by the Local Government Budget and Finance Act, the
38-9 board of county commissioners shall, by resolution, levy an assessment
38-10 upon all real property in the rodent control district.
38-11 2. Every assessment so levied shall be a lien against the property
38-12 assessed.
38-13 3. The county commissioners may obtain short-term loans of an
38-14 amount of money not to exceed the total amount of such assessment, for
38-15 the purpose of paying the expenses of controlling the rodents in a rodent
38-16 control district. Such loans may be made only after such assessments are
38-17 levied.
38-18 Sec. 63. Section 12 of chapter 227, Statutes of Nevada 1975, as
38-19 amended by chapter 351, Statutes of Nevada 1997, at page 1280, is hereby
38-20 amended to read as follows:
38-21 Sec. 12. 1. The provisions of the Local Government Budget
38-22 and Finance Act, NRS 354.470 to 354.626, inclusive, as now and
38-23 hereafter amended, apply to the Authority as a local government, and
38-24 the Authority shall, for purposes of that application, be deemed a
38-25 district other than a school district.
38-26 2. The provisions of NRS 350.085 to 350.095, inclusive, apply to
38-27 the Authority.
38-28 Sec. 64. Section 2.060 of chapter 470, Statutes of Nevada 1975, at
38-29 page 730 is hereby amended to read as follows:
38-30 Sec. 2.060 Powers of city council: Ordinances, resolutions and
38-31 orders.
38-32 1. The city council may make and pass all ordinances, resolutions
38-33 and orders not repugnant to the Constitution of the United States or
38-34 the State of Nevada, or to the provisions of Nevada Revised Statutes
38-35 or of this charter, necessary for the municipal government and the
38-36 management of the affairs of the city, and for the execution of all the
38-37 powers vested in the city.
38-38 2. When power is conferred upon the city council to do and
38-39 perform something, and the manner of exercising such power is not
38-40 specifically provided for, the city council may provide by ordinance
38-41 the manner and details necessary for the full exercise of such power.
38-42 3. The city council may enforce ordinances by providing penalties
38-43 not to exceed those established by the legislature for misdemeanors.
38-44 4. The city council shall have such powers, not in conflict with
38-45 the express or implied provisions of this charter, as are conferred
38-46 upon the governing bodies of cities by Nevada Revised Statutes.
38-47 5. The city council shall annually adopt a budget pursuant to the
38-48 Local Government Budget and Finance Act.
39-1 Sec. 65. Section 9 of chapter 474, Statutes of Nevada 1977, at page
39-2 970, as last amended by chapter 121, Statutes of Nevada 1991, at page 205,
39-3 is hereby amended to read as follows:
39-4 Sec. 9 1. Except as otherwise provided in subsection 2, the
39-5 board shall comply with the provisions of the Local Government
39-6 Purchasing Act and the Local Government Budget and Finance Act.
39-7 2. Except as otherwise provided in section 10.2 of this act, any
39-8 concession agreement entered into by the authority in conformity
39-9 with the provisions of that section need not conform to the
39-10 requirements of the Local Government Purchasing Act.
39-11 Sec. 66. Section 8 of chapter 844, Statutes of Nevada 1989, at page
39-12 2026 is hereby amended to read as follows:
39-13 Sec. 8. The board shall comply with the provisions of the Nevada
39-14 Ethics in Government Law, NRS 241.020, the Local Government
39-15 Purchasing Act and the Local Government Budget and Finance Act.
39-16 Sec. 67. Section 19 of chapter 572, Statutes of Nevada 1997, at page
39-17 2803 is hereby amended to read as follows:
39-18 Sec. 19. The provisions of [subsection 1 of] NRS 354.599 do not
39-19 apply to any additional expenses of a local government that are
39-20 related to the provisions of this act.
39-21 Sec. 68. NRS 266.0165, 354.478, 354.480, 354.481, 354.488,
39-22 354.514, 354.522, 354.540, 354.542, 354.551, 354.558, 354.564, 354.566,
39-23 354.576, 354.580, 354.588, 354.595, 354.5984, 354.59871, 354.59872,
39-24 354.606, 354.610, 354.6107, 354.611, 354.6145, 354.615, 354.621 and
39-25 354.622 are hereby repealed.
39-26 Sec. 69. 1. This section and sections 1 to 9, inclusive, 11 to 28,
39-27 inclusive, 30 to 43, inclusive, 45 to 49, inclusive, and 51 to 68, inclusive,
39-28 of this act become effective on July 1, 2001.
39-29 2. Sections 10, 29, 44 and 50 of this act become effective at 12:01 a.m.
39-30 on July 1, 2001.
39-31 20~~~~~01