(REPRINTED WITH ADOPTED AMENDMENTS)

 

Senate Bill No. 317–Committee on Government Affairs

 

(On Behalf of Nevada League of Cities and Municipalities)

 

March 12, 2001

____________

 

Referred to Committee on Government Affairs

 

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

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

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

 

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

2-1    4.  Each appointment must be for a term of 3 years.

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

2-3  appointing authority of the person who vacated the seat.

2-4    6.  If any of the associations listed in subsection 2 cease to exist, the

2-5  appointments required by subsection 2 must be made by the association’s

2-6  successor in interest or, if there is no successor in interest, one each by

2-7  the other appointing authorities.

2-8    Sec. 5.  1.  If anticipated resources actually available during a

2-9  budget period exceed those estimated, a local government may augment a

2-10  budget in the following manner:

2-11    (a) If it is desired to augment the appropriations of a fund to which ad

2-12  valorem taxes are allocated as a source of revenue, the governing body

2-13  shall, by majority vote of all members of the governing body, adopt a

2-14  resolution reciting the appropriations to be augmented, and the nature of

2-15  the unanticipated resources intended to be used for the augmentation.

2-16  Before the adoption of the resolution, the governing body shall publish

2-17  notice of its intention to act thereon in a newspaper of general

2-18  circulation in the county for at least one publication. No vote may be

2-19  taken upon the resolution until 3 days after the publication of the notice.

2-20    (b) If it is desired to augment the budget of any fund other than a

2-21  fund described in paragraph (a) or an enterprise or internal service fund,

2-22  the governing body shall adopt, by majority vote of all members of the

2-23  governing body, a resolution providing therefor at a regular meeting of

2-24  the body.

2-25    2.  A budget augmentation becomes effective upon delivery to the

2-26  department of taxation of an executed copy of the resolution providing

2-27  therefor.

2-28    3.  Nothing in NRS 354.470 to 354.626, inclusive, and sections 2 to 5,

2-29  inclusive, of this act, precludes the amendment of a budget by increasing

2-30  the total appropriation for any fiscal year to include a grant-in-aid, gift

2-31  or bequest to a local unit of government which is required to be used for

2-32  a specific purpose as a condition of the grant. Acceptance of such a grant

2-33  and agreement to the terms imposed by the granting agency or person

2-34  constitutes an appropriation to the purpose specified.

2-35    4.  A local government need not file an augmented budget for an

2-36  enterprise or internal service fund with the department of taxation but

2-37  shall include the budget augmentation in the next quarterly report.

2-38    5.  Budget appropriations may be transferred between functions,

2-39  funds or contingency accounts in the following manner, if such a

2-40  transfer does not increase the total appropriation for any fiscal year and

2-41  is not in conflict with other statutory provisions:

2-42    (a) The person designated to administer the budget for a local

2-43  government may transfer appropriations within any function.

2-44    (b) The person designated to administer the budget may transfer

2-45  appropriations between functions or programs within a fund, if:

2-46      (1) The governing body is advised of the action at the next regular

2-47  meeting; and

2-48      (2) The action is recorded in the official minutes of the meeting.

3-1    (c) Upon recommendation of the person designated to administer the

3-2  budget, the governing body may authorize the transfer of appropriations

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

3-4       (1) The governing body announces the transfer of appropriations at

3-5  a regularly scheduled meeting and sets forth the exact amounts to be

3-6  transferred and the accounts, functions, programs and funds affected;

3-7       (2) The governing body sets forth its reasons for the transfer; and

3-8       (3) The action is recorded in the official minutes of the meeting.

3-9    6.  In any year in which the legislature by law increases or decreases

3-10  the revenues of a local government, and that increase or decrease was

3-11  not included or anticipated in the local government’s final budget as

3-12  adopted pursuant to NRS 354.598, the governing body of any such local

3-13  government may, within 30 days of adjournment of the legislative

3-14  session, file an amended budget with the department of taxation

3-15  increasing or decreasing its anticipated revenues and expenditures from

3-16  that contained in its final budget to the extent of the actual increase or

3-17  decrease of revenues resulting from the legislative action.

3-18    7.  In any year in which the legislature enacts a law requiring an

3-19  increase or decrease in expenditures of a local government, which was

3-20  not anticipated or included in its final budget as adopted pursuant to

3-21  NRS 354.598, the governing body of any such local government may,

3-22  within 30 days of adjournment of the legislative session, file an amended

3-23  budget with the department of taxation providing for an increase or

3-24  decrease in expenditures from that contained in its final budget to the

3-25  extent of the actual amount made necessary by the legislative action.

3-26    8.  An amended budget, as approved by the department of taxation, is

3-27  the budget of the local government for the current fiscal year.

3-28    9.  On or before January 1 of each school year, each school district

3-29  shall adopt an amendment to its final budget after the count of pupils is

3-30  completed pursuant to subsection 1 of NRS 387.1233. The amendment

3-31  must reflect any adjustments necessary as a result of the completed count

3-32  of pupils.

3-33    Sec. 6.  1.  The purpose of NRS 354.655 to 354.725 is to provide

3-34  specific methods for the treatment of delinquent documents, technical

3-35  financial assistance and severe financial emergency.

3-36    2.  To accomplish the purpose set forth in subsection 1, the provisions

3-37  of NRS 354.655 to 354.725, inclusive, must be broadly and liberally

3-38  construed.

3-39    Sec. 7.  NRS 354.470 is hereby amended to read as follows:

3-40    354.470  NRS 354.470 to 354.626, inclusive, and sections 2 to 5,

3-41  inclusive, of this act, may be cited as the Local Government Budget and

3-42  FinanceAct.

3-43    Sec. 8.  NRS 354.472 is hereby amended to read as follows:

3-44    354.472  1.  The purposes of NRS 354.470 to 354.626, inclusive, are:

3-45    (a) To establish standard methods and procedures for the preparation,

3-46  presentation, adoption[, administration and appraisal] and administration

3-47  of budgets of all local governments.

4-1    (b) To enable local governments to make financial plans for programs

4-2  of both current and capital expenditures and to formulate fiscal policies to

4-3  accomplish these programs.

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

4-5  expenditures and tax levies.

4-6    (d) To provide for the control of revenues, expenditures and expenses in

4-7  order to promote prudence and efficiency in the expenditure of public

4-8  money.

4-9    (e) [To enable local governments to borrow money to meet emergency

4-10  expenditures or expenses.

4-11    (f)] To provide specific methods enabling the public, taxpayers and

4-12  investors to be apprised of the financial preparations, plans, policies and

4-13  administration of all local governments.

4-14    2.  For the accomplishment of these purposes the provisions of

4-15  NRS 354.470 to 354.626, inclusive, must be broadly and liberally

4-16  construed.

4-17    Sec. 9.  NRS 354.475 is hereby amended to read as follows:

4-18    354.475  1.  All special districts subject to the provisions of the Local

4-19  Government Budget and Finance Act with annual total expenditures of

4-20  less than [$100,000] $200,000 may petition the department of taxation for

4-21  exemption from the requirements of the Local Government Budget and

4-22  FinanceAct for the filing of certain budget documents and audit reports.

4-23  Such districts may further petition to [return to] use a cash [method] basis

4-24  of accounting. The minimum required of such districts is the filing with the

4-25  department of taxation of an annual budget on or before April 15 of each

4-26  year and the filing of quarterly reports in accordance with NRS 354.602.

4-27  Such petitions must be received by the department of taxation on or before

4-28  [December 31] April 15 to be effective for the succeeding fiscal year or, in

4-29  a case of an annual audit exemption, to be effective for the current fiscal

4-30  year. A board of county commissioners may request the department of

4-31  taxation to audit the financial records of such an exempt district.

4-32    2.  Such districts are exempt from all publication requirements of the

4-33  Local Government Budget and Finance Act, except that the department of

4-34  taxation by regulation shall require an annual publication of a notice of

4-35  budget adoption and filing. The department of taxation shall adopt

4-36  regulations pursuant to NRS 354.594 which are necessary to carry out the

4-37  purposes of this section.

4-38    3.  The revenue recorded in accounts that are kept on a cash basis must

4-39  consist of cash items.

4-40    4.  As used in this section, “cash basis” means the system of accounting

4-41  under which revenues are recorded only when received and expenditures or

4-42  expenses are recorded only when paid.

4-43    Sec. 10.  NRS 354.476 is hereby amended to read as follows:

4-44    354.476  As used in NRS 354.470 to 354.626, inclusive, [and] sections

4-45  2 to 5, inclusive, of Senate Bill No. 203 of this session and sections 2 to 5,

4-46  inclusive, of this act,unless the context otherwise requires, the words and

4-47  terms defined in NRS [354.478 to 354.580,] 354.479 to 354.578, inclusive,

4-48  and sections 2 and 3 of Senate Bill No. 203 of this session and sections 2

4-49  and 3 of this act , have the meanings ascribed to them in those sections.

5-1    Sec. 11.  NRS 354.486 is hereby amended to read as follows:

5-2    354.486  “Audit” means the examination and analysis of financial

5-3  statements,accounting procedures and other evidence made in conformity

5-4  with generally accepted auditing standards in the United States for one or

5-5  more of the following purposes:

5-6    1.  Determining the propriety[, legality] and mathematical accuracy of

5-7  materialfinancial transactions;

5-8    2.  Ascertaining whether [all] financial transactions have been properly

5-9  recorded;

5-10    3.  Ascertaining whether the financial statements prepared from the

5-11  accounting records fairly present in all material respects the financial

5-12  position and the results of financial operations [of the constituent and

5-13  balanced account groups] and cash flows of the governmental unit in

5-14  accordance with generally accepted accounting principles in the United

5-15  States and on a basis which is consistent with that of the preceding year;

5-16    4.  [Determining whether] Evaluating internal accounting controls

5-17  over financial reporting ofthe handling of the public money [is adequately

5-18  protected by internal accounting controls;] and public property;

5-19    5.  Determining whether the fiscal controls established by law and

5-20  administrative regulations are being properly applied;

5-21    6.  Determining whether there is any evidence that fraud or dishonesty

5-22  has occurred in the handling of funds or property;

5-23    7.  Determining whether the acquisition , depreciation and disposition

5-24  of property and equipment are accounted for in accordance with generally

5-25  accepted accounting principles[;] in the United States; and

5-26    8.  Determining whether the removal of the uncollectible accounts

5-27  receivable from the records of a governmental unit is done in accordance

5-28  with the procedure established by law and administrative regulations.

5-29    Sec. 12.  NRS 354.506 is hereby amended to read as follows:

5-30    354.506  “Contingency account” means an account showing [assets or

5-31  other resources which have] money that has been appropriated to provide

5-32  for unforeseen expenditures or anticipated expenditures of an uncertain

5-33  amount.

5-34    Sec. 13.  NRS 354.510 is hereby amended to read as follows:

5-35    354.510  “Debt service fund” means a fund to account for the

5-36  accumulation of resources for and the payment of principal or interest on

5-37  any general long-term debt[.] or medium-term obligation.

5-38    Sec. 14.  NRS 354.518 is hereby amended to read as follows:

5-39    354.518  [“Estimated] “Anticipated revenue” means the amount of

5-40  revenue [estimated] anticipated to be collected or accrued during a given

5-41  period.

5-42    Sec. 15.  NRS 354.520 is hereby amended to read as follows:

5-43    354.520  1.  “Expenditure” means:

5-44    (a) If [accounts] the accounting records are kept on the [accrual basis

5-45  or the] modified accrual basis, the cost of goods delivered or services

5-46  rendered, whether paid or unpaid .[, any provision for retirement of debt

5-47  which is not reported as a liability of the fund from which the debt is

5-48  retired, and any capital outlays.] Expenditures are recognized in the

5-49  accounting period in which the fund liability is incurred, if measurable,

6-1  except for unmatured interest on general long-term liabilities which

6-2  should be recognized when due.

6-3    (b) If accounts are kept on the cash basis, only cash disbursements for

6-4  the purposes listed in paragraph (a).

6-5    2.  Encumbrances are not considered expenditures.

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

6-7    354.523  “Expense” means any charge incurred, under the accrual

6-8  basis,whether paid or unpaid, for operation, maintenance or interest or any

6-9  other charge which is presumed to provide benefit in the current fiscal

6-10  period.

6-11    Sec. 17.  NRS 354.524 is hereby amended to read as follows:

6-12    354.524  “Final budget” means the budget [that] which has been

6-13  adopted by a local governing body or adopted by default as defined by

6-14  NRS 354.470 to 354.626, inclusive, and [approved] which has been

6-15  determined by the department of taxation [for the ensuing fiscal year.] to

6-16  be in compliance with applicable statutes and regulations.

6-17    Sec. 18.  NRS 354.528 is hereby amended to read as follows:

6-18    354.528  [“Fixed] “Capital assets” means assets of a long-term

6-19  character which are intended to continue to be held or used such as land,

6-20  buildings, machinery, furniture and other equipment.

6-21    Sec. 19.  NRS 354.529 is hereby amended to read as follows:

6-22    354.529  “Function” means a group of related activities aimed at

6-23  accomplishing a major service or regulatory program for which a

6-24  governmental unit is responsible, [such as] including, without limitation,

6-25  general government, public safety, public works, health, welfare, culture

6-26  and recreation, conservation of natural resources, urban redevelopment and

6-27  housing, economic development and assistance ,[or] economic opportunity

6-28  [.]and activities relating to the judiciary.

6-29    Sec. 20.  NRS 354.533 is hereby amended to read as follows:

6-30    354.533  “Fund balance” means the excess of assets over liabilities

6-31  [and reserves] in a governmental fund.

6-32    Sec. 21.  NRS 354.5335 is hereby amended to read as follows:

6-33    354.5335  [“Fund for capital projects”] “Capital projects fund” means

6-34  a fund created to account for [all] resources used for the acquisition or

6-35  construction of designated [fixed] capital assets by a governmental unit

6-36  except those financed by proprietary or trust funds.

6-37    Sec. 22.  NRS 354.535 is hereby amended to read as follows:

6-38    354.535  “General long-term debt” means debt which is legally payable

6-39  from general revenues and is backed by the full faith and credit of a

6-40  governmental unit. The term includes [debt represented by local

6-41  government securities] obligations issued by a local government pursuant

6-42  to chapter 350 of NRS and [debt created for medium-term obligations

6-43  pursuant to NRS 350.085 to 350.095, inclusive.] other long-term

6-44  liabilities, including, without limitation, accrued compensated absences

6-45  and claims for workers’ compensation.

6-46    Sec. 23.  NRS 354.562 is hereby amended to read as follows:

6-47    354.562  [1.] “Revenue” means the gross [increase in ownership

6-48  equity during a designated period.

6-49    2.  If the accounts are kept on an accrual basis, this term designates:

7-1    (a) Additions to assets which do not increase any liability or represent

7-2  the recovery of an expenditure or contributions of fund capital in

7-3  proprietary funds; and

7-4    (b) The cancellation of liabilities without a corresponding increase in

7-5  other liabilities or a decrease in assets.

7-6    3.  If the accounts are kept on the modified accrual basis, the additions

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

7-8  period.] receipts and receivables of a local government derived from taxes

7-9  and all other sources except from appropriations and allotments.

7-10    Sec. 24.  NRS 354.570 is hereby amended to read as follows:

7-11    354.570  “Special revenue fund” means a fund used to account for

7-12  specific revenue sources, other than [special assessments, expendable

7-13  trusts, or] sources for major capital projects, which are restricted by law to

7-14  expenditure for specified purposes.

7-15    Sec. 25.  NRS 354.5945 is hereby amended to read as follows:

7-16    354.5945  1.  [On] Except as otherwise provided in subsection 6, on

7-17  or before July 1 of each year, each local government shall prepare, on a

7-18  form prescribed by the department of taxation for use by local

7-19  governments, a capital improvement plan for the ensuing 5 fiscal years.

7-20    2.  Each local government must submit a copy of the capital

7-21  improvement plan of the local government to the:

7-22    (a) Department of taxation; and

7-23    (b) Debt management commission of the county in which the local

7-24  government is located.

7-25    3.  Each local government must file a copy of the capital improvement

7-26  plan of the local government for public record and inspection by the public

7-27  in the offices of:

7-28    (a) The clerk or secretary of the governing body; and

7-29    (b) The county clerk.

7-30    4.  The total amount of the expenditures contained in the capital

7-31  improvement plan of the local government for the next ensuing fiscal year

7-32  must equal the total amount of expenditures for capital outlay set forth in

7-33  the final budget of the local government for each fund listed in that budget.

7-34    5.  The capital improvement plan must reconcile the capital outlay in

7-35  each fund in the final budget for the first year of the capital improvement

7-36  plan to the final budget in the next ensuing fiscal year. The

7-37  reconciliation must identify the minimum level of expenditure for items

7-38  classified as capital assets in the final budget and the minimum level of

7-39  expenditure for items classified as capital projects in the capital

7-40  improvement plan. The reconciliation of capital outlay items in the

7-41  capital improvement plan must be presented on forms created and

7-42  distributed by the department of taxation.

7-43    6.  Local governments that are exempt from the requirements of the

7-44  Local Government Budget and Finance Act pursuant to NRS 354.475

7-45  are not required to file a capital improvement plan.

7-46    Sec. 26.  NRS 354.596 is hereby amended to read as follows:

7-47    354.596  1.  [On or before April 15 of each year, the] The officer

7-48  charged by law shall prepare, or the governing body shall cause to be

7-49  prepared, on appropriate forms prescribed by the department of taxation for

8-1  the use of local governments, a tentative budget for the ensuing fiscal year.

8-2  The tentative budget [and a copy of the local government’s report of its

8-3  proposed expenditures] for the following fiscal year must be submitted to

8-4  the county auditor and filed for public record and inspection in the office

8-5  of:

8-6    (a) The clerk or secretary of the governing body; and

8-7    (b) The county clerk.

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

8-9  total amount of the expenditures contained in this report equal the total

8-10  amount of expenditures contained in its tentative budget for each

8-11  department and fund listed in that budget.]

8-12    2.  On or before April 15, a copy of the tentative budget must be

8-13  submitted:

8-14    (a) To the department of taxation; and

8-15    (b) In the case of school districts, to the department of education.

8-16    3. At the time of filing the tentative budget, the governing body shall

8-17  give notice of the time and place of a public hearing on the tentative budget

8-18  and shall cause a notice of the hearing to be published once in a newspaper

8-19  of general circulation within the area of the local government not more

8-20  than 14 nor less than 7 days before the date set for the hearing. The notice

8-21  of public hearing must state:

8-22    (a) The time and place of the public hearing.

8-23    (b) That a tentative budget has been prepared in such detail and on

8-24  appropriate forms as prescribed by the department of taxation.

8-25    (c) The places where copies of the tentative budget are on file and

8-26  available for public inspection.

8-27    [3.] 4. Budget hearings must be held:

8-28    (a) For county budgets, on the third Monday in May;

8-29    (b) For cities, on the third Tuesday in May;

8-30    (c) For school districts, on the third Wednesday in May; and

8-31    (d) For all other local governments, on the third Thursday in

8-32  May,

8-33  except that the board of county commissioners may consolidate the hearing

8-34  on all local government budgets administered by the board of county

8-35  commissioners with the county budget hearing.

8-36    [4.  On or before April 15, a copy of the tentative budget and notice of

8-37  public hearing must be submitted:

8-38    (a) To the department of taxation; and

8-39    (b) In the case of school districts, to the state department of education.]

8-40    5.  The department of taxation shall examine the submitted documents

8-41  for compliance with law and with appropriate regulations and shall submit

8-42  to the governing body at least 3 days before the public hearing a written

8-43  certificate of compliance or a written notice of lack of compliance. The

8-44  written notice must indicate the manner in which the submitted documents

8-45  fail to comply with law or appropriate regulations.

8-46    6.  Whenever the governing body receives from the department of

8-47  taxation a notice of lack of compliance, the governing body shall forthwith

8-48  proceed to amend the tentative budget to effect compliance with the law

8-49  and with the appropriate regulation.

9-1    [7.  If any change which results in an increase in the amount of revenue

9-2  required from property taxes is made in a tentative budget after it has been

9-3  submitted to the county auditor pursuant to subsection 1, the amended

9-4  tentative budget must be submitted to the county auditor at least 30 days

9-5  before it may be adopted as the final budget.]

9-6    Sec. 27.  NRS 354.598 is hereby amended to read as follows:

9-7    354.598  1.  At the time and place advertised for public hearing, or at

9-8  any time and place to which the public hearing is from time to time

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

9-10  budget, at which time interested persons must be given an opportunity to

9-11  be heard.

9-12    2.  At the public hearing, the governing body shall indicate changes, if

9-13  any, to be made in the tentative budget, and shall adopt a final budget by

9-14  the favorable votes of a majority of all members of the governing body.

9-15  Except as otherwise provided in this subsection, the final budget must be

9-16  adopted on or before June 1 of each year. The final budgets of school

9-17  districts must be adopted on or before June 8 of each year and must be

9-18  accompanied by copies of the written report and written procedure

9-19  prepared pursuant to subsection 3 of NRS 385.351. Should the governing

9-20  body fail to adopt a final budget that complies with the requirements of law

9-21  and the regulations of the department of taxation on or before the required

9-22  date, the budget adopted and [approved] used for certification of the

9-23  combined ad valorem tax rateby the department of taxation for the current

9-24  year, adjusted as to content and rate in such a manner as the department of

9-25  taxation may consider necessary, automatically becomes the budget for the

9-26  ensuing fiscal year. When a budget has been so adopted by default, the

9-27  governing body may not reconsider the budget without the express

9-28  approval of the department of taxation. If the default budget creates a

9-29  combined ad valorem tax rate in excess of the limit imposed by

9-30  NRS 361.453, the Nevada tax commission shall adjust the budget as

9-31  provided in NRS 361.4547 or 361.455.

9-32    3.  The final budget must be certified by a majority of all members of

9-33  the governing body and a copy of it, together with an affidavit of proof of

9-34  publication of the notice of the public hearing, must be transmitted to the

9-35  Nevada tax commission. If a tentative budget is adopted by default as

9-36  provided in subsection 2, the clerk of the governing body shall certify the

9-37  budget and transmit to the Nevada tax commission a copy of the budget,

9-38  together with an affidavit of proof of the notice of the public hearing, if

9-39  that notice was published. Certified copies of the final budget must be

9-40  distributed as determined by the department of taxation.

9-41    4.  Upon the adoption of the final budget or the amendment of the

9-42  budget in accordance with [NRS 354.606,] section 5 of this act, the several

9-43  amounts stated in it as proposed expenditures are appropriated for the

9-44  purposes indicated in the budget.

9-45    5.  No governing body may adopt any budget which appropriates for

9-46  any fund any amount in excess of the budget resources of that fund.

9-47    6.  [On or before January 1 of each school year, each school district

9-48  shall adopt an amendment to its final budget after the count of pupils is

9-49  completed pursuant to subsection 1 of NRS 387.1233. The amendment

10-1  must reflect any adjustments necessary as a result of the completed count

10-2  of pupils.] If a local government makes a change in its final budget

10-3  which increases the combined ad valorem tax rate, the local government

10-4  shall submit the amended final budget to the county auditor within 15

10-5  days after making the change.

10-6    Sec. 28.  NRS 354.59801 is hereby amended to read as follows:

10-7    354.59801  Each local government shall file in the office of the clerk or

10-8  secretary of its governing body, for public record and inspection:

10-9    1.  A copy of its final budget; and

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

10-11  to NRS 354.5945 and, if applicable, NRS 350.0035 . [; and

10-12  3.  A report of its proposed expenditures for the following fiscal year,

10-13  written in the same detail as its chart of accounts. The total amount of these

10-14  expenditures must equal the total amount of expenditures contained in its

10-15  final budget for each department and fund listed in that budget.]

10-16  Sec. 29.  NRS 354.59811 is hereby amended to read as follows:

10-17  354.59811  1.  Except as otherwise provided in NRS 354.59813,

10-18  354.59815, 354.5982, 354.5987, [354.59871,] 354.705, 354.723, 450.425,

10-19  450.760, 540A.265 and 543.600, and section 4 of [this act,] Senate Bill

10-20  No. 203 of this session, for each fiscal year beginning on or after July 1,

10-21  1989, the maximum amount of money that a local government, except a

10-22  school district, a district to provide a telephone number for emergencies, or

10-23  a redevelopment agency, may receive from taxes ad valorem, other than

10-24  those attributable to the net proceeds of minerals or those levied for the

10-25  payment of bonded indebtedness and interest thereon incurred as general

10-26  long-term debt of the issuer, or for the payment of obligations issued to pay

10-27  the cost of a water project pursuant to

10-28  NRS 349.950, or for the payment of obligations under a capital lease

10-29  executed before April 30, 1981, must be calculated as follows:

10-30  (a) The rate must be set so that when applied to the current fiscal year’s

10-31  assessed valuation of all property which was on the preceding fiscal year’s

10-32  assessment roll, together with the assessed valuation of property on the

10-33  central assessment roll which was allocated to the local government, but

10-34  excluding any assessed valuation attributable to the net proceeds of

10-35  minerals, assessed valuation attributable to a redevelopment area and

10-36  assessed valuation of a fire protection district attributable to real property

10-37  which is transferred from private ownership to public ownership for the

10-38  purpose of conservation, it will produce 106 percent of the maximum

10-39  revenue allowable from taxes ad valorem for the preceding fiscal year,

10-40  except that the rate so determined must not be less than the rate allowed for

10-41  the previous fiscal year, except for any decrease attributable to the

10-42  imposition of a tax pursuant to NRS 354.59813 in the previous year.

10-43  (b) This rate must then be applied to the total assessed valuation,

10-44  excluding the assessed valuation attributable to the net proceeds of

10-45  minerals and the assessed valuation of a fire protection district attributable

10-46  to real property which is transferred from private ownership to public

10-47  ownership for the purpose of conservation but including new real property,

10-48  possessory interests and mobile homes, for the current fiscal year to

11-1  determine the allowed revenue from taxes ad valorem for the local

11-2  government.

11-3    2.  As used in this section, “general long-term debt” does not include

11-4  debt created for medium-term obligations pursuant to NRS 350.085 to

11-5  350.095, inclusive.

11-6    Sec. 30.  NRS 354.59817 is hereby amended to read as follows:

11-7    354.59817  1.  In addition to the allowed revenue from taxes ad

11-8  valorem determined pursuant to NRS 354.59811, upon the approval of a

11-9  majority of the registered voters of a county voting upon the question, the

11-10  board of county commissioners may levy a tax ad valorem on all taxable

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

11-12  assessed valuation of the county. A tax must not be levied pursuant to this

11-13  section for more than 10 years.

11-14  2.  The board of county commissioners shall direct the county treasurer

11-15  to distribute quarterly the proceeds of any tax levied pursuant to the

11-16  provisions of this section among the county and the cities and towns within

11-17  that county in the proportion that the supplemental city-county relief tax

11-18  distribution factor of each of those local governments for the 1990-1991

11-19  fiscal year bears to the sum of the supplemental city-county relief tax

11-20  distribution factors of all [of] the local governments in the county for the

11-21  1990-1991 fiscal year.

11-22  3.  The board of county commissioners shall not reduce the rate of any

11-23  tax levied pursuant to the provisions of this section without the approval of

11-24  each of the local governments that receives a portion of the tax, except that,

11-25  if a local government declines to receive its portion of the tax in a

11-26  particular year the levy may be reduced by the amount that local

11-27  government would have received.

11-28  4.  The governing body of each local government that receives a

11-29  portion of the revenue from the tax levied pursuant to this section shall

11-30  establish a separate [fund for] capital projects fund for the purposes set

11-31  forth in this section. All interest and income earned on the money in the

11-32  fund must also be deposited in the fund. The money in the fund may only

11-33  be used for:

11-34  (a) The purchase of capital assets including land, improvements to land

11-35  and major items of equipment;

11-36  (b) The construction or replacement of public works; and

11-37  (c) The renovation of existing governmental facilities, not including

11-38  normal recurring maintenance.

11-39  The money in the fund must not be used to finance the issuance or the

11-40  repayment of bonds or other obligations, including medium-term

11-41  obligations.

11-42  5.  Money may be retained in the fund for not more than 10 years to

11-43  allow the funding of projects without the issuance of bonds or other

11-44  obligations. For the purpose of determining the length of time a deposit of

11-45  money has been retained in the fund, all money withdrawn from the fund

11-46  shall be deemed to be taken on a first-in, first-out basis. No money in the

11-47  fund at the end of the fiscal year may revert to any other fund, nor may the

11-48  money be a surplus for any other purpose than those specified in this

11-49  section.

12-1    6.  The annual budget and audit report of each local government must

12-2  specifically identify this fund and must indicate in detail the projects that

12-3  have been funded with money from the fund. Any planned accumulation of

12-4  the money in the fund must also be specifically identified.

12-5    7.  The projects on which money raised pursuant to this section will be

12-6  expended must be approved by the voters in the question submitted

12-7  pursuant to subsection 1 or in a separate question submitted on the ballot at

12-8  a primary, general or special election.

12-9    Sec. 31.  NRS 354.5987 is hereby amended to read as follows:

12-10  354.5987  1.  For the purposes of NRS 354.59811, the allowed

12-11  revenue from taxes ad valorem of any local government[:

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

12-13  created, consolidated, or both; or

12-14  (b) Which was in existence before July 1, 1989, but did not receive

12-15  revenue from taxes ad valorem, except any levied for debt service, for the

12-16  fiscal year ending June 30, 1989,]

12-17  must be [initially] established by the Nevada tax commission[.] for the

12-18  first fiscal year it is in existence.

12-19  2.  Except as otherwise provided in subsections 3 and [6,] 5, if the local

12-20  government for which the allowed revenue from taxes ad valorem is to be

12-21  established performs a function previously performed by another local

12-22  government, the total revenue allowed to all local governments for

12-23  performance of substantially the same function in substantially the same

12-24  geographical area must not be increased. To achieve this result, the Nevada

12-25  tax commission shall request the committee on local government finance to

12-26  prepare a statement of the prior cost of performing the function for each

12-27  predecessor local government. Within 60 days after receipt of such a

12-28  request, the committee on local government finance shall prepare a

12-29  statement pursuant to the request and transmit it to the Nevada tax

12-30  commission. The Nevada tax commission may accept, reject or amend the

12-31  statement of the committee on local government finance. The decision of

12-32  the Nevada tax commission is final. Upon making a final determination of

12-33  the prior cost of performing the function for each predecessor local

12-34  government, the Nevada tax commission shall:

12-35  (a) Determine the percentage that the prior cost of performing the

12-36  function for each predecessor local government is of the allowed revenue

12-37  from taxes ad valorem of that local government; and

12-38  (b) Apply the percentage determined pursuant to paragraph (a) to the

12-39  allowed revenue from taxes ad valorem and subtract that amount from the

12-40  allowed revenue from taxes ad valorem of the predecessor local

12-41  government.

12-42  The allowed revenue from taxes ad valorem attributable to the new local

12-43  government for the cost of performing the function must equal the total of

12-44  the amounts subtracted for the prior cost of performing the function from

12-45  the allowed revenue from taxes ad valorem of all [of] the predecessor local

12-46  governments.

12-47  3.  If the local government for which the allowed revenue from taxes ad

12-48  valorem is to be established is an unincorporated town which provides a

12-49  service not previously provided by another local government, and the

13-1  board of county commissioners has included the unincorporated town in a

13-2  resolution adopted pursuant to the provisions of NRS 269.5755, the

13-3  Nevada tax commission shall, if the unincorporated town does not receive

13-4  revenue from taxes ad valorem, establish the allowed revenue of the town

13-5  from taxes ad valorem at an amount which is in the same ratio to the

13-6  assessed valuation of the town as the combined allowed revenues from

13-7  taxes ad valorem are to the combined assessed valuations of the other

13-8  unincorporated towns included in the common levy.

13-9    4.  [The allowed revenue from taxes ad valorem of an unincorporated

13-10  town which provides a service not previously provided by another local

13-11  government must be:

13-12  (a) Reduced by 75 percent for the first fiscal year following the fiscal

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

13-14  pursuant to subsection 3;

13-15  (b) Reduced by 50 percent for the second fiscal year following the fiscal

13-16  year in which the allowed revenue from taxes ad valorem is established

13-17  pursuant to subsection 3; and

13-18  (c) Reduced by 25 percent for the third fiscal year following the fiscal

13-19  year in which the allowed revenue from taxes ad valorem is established

13-20  pursuant to subsection 3.

13-21  5.  In any other case, except] Except as otherwise provided in

13-22  subsection [6,] 5, the allowed revenue from taxes ad valorem of all local

13-23  governments in the county, determined pursuant to NRS 354.59811, must

13-24  not be increased, but the total allowed revenue from taxes ad valorem must

13-25  be reallocated among the local governments consistent with subsection 2 to

13-26  accommodate the amount established for the new local government

13-27  pursuant to subsection 1.

13-28  [6.] 5. In establishing the allowed revenue from taxes ad valorem of a

13-29  county, city or town pursuant to this section, the Nevada tax commission

13-30  shall allow a tax rate for operating expenses of at least 15 cents per $100 of

13-31  assessed valuation in addition to the tax rate allowed for any identified and

13-32  restricted purposes and for debt service.

13-33  [7.] 6. As used in this section:

13-34  (a) “Predecessor local government” means a local government which

13-35  previously performed all or part of a function to be performed by the local

13-36  government for which the allowed revenue from taxes ad valorem is being

13-37  established pursuant to subsection 1.

13-38  (b) “Prior cost of performing the function” means the amount expended

13-39  by a local government to perform a function which is now to be performed

13-40  by another local government. The amount must be determined on the basis

13-41  of the most recent fiscal year for which reliable information is available.

13-42  Sec. 32.  NRS 354.599 is hereby amended to read as follows:

13-43  354.599  [1.] If the legislature directs one or more local

13-44  governments to:

13-45  [(a)] 1. Establish a program or provide a service; or

13-46  [(b)] 2. Increase a program or service already established which

13-47  requires additional funding,

13-48  and the expense required to be paid by each local government to establish,

13-49  provide or increase the program or service is $5,000 or more, a specified

14-1  source for the additional revenue to pay the expense must be authorized by

14-2  a specific statute. The additional revenue may only be used to pay expenses

14-3  directly related to the program or service. If a local government has money

14-4  from any other source available to pay such expenses, that money must be

14-5  applied to the expenses before any money from the revenue source

14-6  specified by statute.

14-7    [2.  In any year in which the legislature by law increases or decreases

14-8  the revenues of a local government, and that increase or decrease was not

14-9  included or anticipated in the local government’s final budget as adopted

14-10  pursuant to NRS 354.598, the governing body of any such local

14-11  government may, before August 15 of the budget year, file an amended

14-12  budget with the department of taxation increasing or decreasing its

14-13  anticipated revenues and expenditures from that contained in its final

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

14-15  from the legislative action.

14-16  3.  In any year in which the legislature enacts a law requiring an

14-17  increase or decrease in expenditures of a local government, which was not

14-18  anticipated or included in its final budget as adopted pursuant to NRS

14-19  354.598, the governing body of any such local government may, before

14-20  August 15 of the budget year, file an amended budget with the department

14-21  of taxation providing for an increase or decrease in expenditures from that

14-22  contained in its final budget to the extent of the actual amount made

14-23  necessary by the legislative action.

14-24  4.  The amended budget, as approved by the department of taxation, is

14-25  the budget of the local government for the current fiscal year.]

14-26  Sec. 33.  NRS 354.600 is hereby amended to read as follows:

14-27  354.600  Each budget must include:

14-28  1.  Detailed estimates of [budget resources] revenues, balances in

14-29  other funds and other sources of financingfor the budget year classified

14-30  by funds and sources in a manner and on forms prescribed by the

14-31  department of taxation.

14-32  2.  Detailed estimates of expenditures and other uses of money for the

14-33  budget year classified in a manner and on forms prescribed by the

14-34  department of taxation.

14-35  [3.  A separate statement of the anticipated expense, including

14-36  personnel, for the operation and maintenance of each capital improvement

14-37  to be constructed during the budget year and of each capital improvement

14-38  constructed on or after July 1, 1998, which is to be used during that or a

14-39  future budget year.

14-40  4.  A separate statement of the proposed source of funding for the

14-41  operation and maintenance of each capital improvement, including

14-42  personnel, to be constructed during that budget year.]

14-43  Sec. 34.  NRS 354.603 is hereby amended to read as follows:

14-44  354.603  1.  The board of trustees of any county school district, the

14-45  board of hospital trustees of any county hospital or the board of trustees of

14-46  any consolidated library district or district library may establish and

14-47  administer separate accounts in:

14-48  (a) A bank whose deposits are insured by the Federal Deposit Insurance

14-49  Corporation;

15-1    (b) A credit union whose deposits are insured by the National Credit

15-2  Union Share Insurance Fund or by a private insurer approved pursuant to

15-3  NRS 678.755; or

15-4    (c) A savings and loan association whose deposits if made by the state,

15-5  a local government or an agency of either, are insured by the Federal

15-6  Deposit Insurance Corporation, or the legal successor of the Federal

15-7  Deposit Insurance Corporation,

15-8  for money deposited by the county treasurer which is by law to be

15-9  administered and expended by those boards.

15-10  2.  The county treasurer shall transfer the money to a separate account

15-11  pursuant to subsection 1 when the following conditions are met:

15-12  (a) The board of trustees of the county school district, the board of

15-13  hospital trustees of the county hospital or the board of trustees of the

15-14  consolidated library district or district library adopts a resolution declaring

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

15-16  with the provisions of this section.

15-17  (b) The board of trustees of the county school district, the board of

15-18  hospital trustees of the county hospital or the board of trustees of the

15-19  consolidated library district or district library sends a certificate to the

15-20  county treasurer, the county auditor, the board of county commissioners

15-21  and, in the case of the board of trustees of the county school district, to the

15-22  department of education, attested by the secretary of the board, declaring

15-23  the intention of the board to establish and administer a separate account in

15-24  accordance with the provisions of this section.

15-25  (c) The board of hospital trustees of the county hospital or the board of

15-26  trustees of the consolidated library district or district library submits

15-27  monthly reports, listing all transactions involving the separate account, to

15-28  the county treasurer, the county auditor and the board of county

15-29  commissioners. The reports must be certified by the secretary of the board.

15-30  In addition, the board shall give a full account and record of all money in

15-31  such an account upon request of the board of county commissioners.

15-32  3.  The separate account of the board of trustees of the county school

15-33  district established under the provisions of this section must be composed

15-34  of:

15-35  (a) The county school district fund; and

15-36  (b) The county school district building and sites fund.

15-37  4.  The separate account established by the board of county hospital

15-38  trustees is designated the county hospital fund.

15-39  5.  The separate account of the board of trustees of the consolidated

15-40  library district or district library established under the provisions of this

15-41  section must be composed of:

15-42  (a) The fund for the consolidated library or district library, as

15-43  appropriate; and

15-44  (b) The [fund for] capital projects fund of the consolidated library or

15-45  district library, as appropriate.

15-46  6.  No expenditures from an account may be made in excess of the

15-47  balance of the account.

15-48  7.  Such an account must support all expenditures properly related to

15-49  the purpose of the fund, excluding direct payments of principal and interest

16-1  on general obligation bonds, and including, but not limited to, debt service,

16-2  capital projects, capital outlay and operating expenses.

16-3    8.  The board of county commissioners, if it determines that there is

16-4  clear evidence of misuse or mismanagement of money in any separate

16-5  account, may order the closing of the account and the return of the money

16-6  to the county treasury to be administered in accordance with existing

16-7  provisions of law. The board of trustees of the county school district, the

16-8  board of hospital trustees of the county hospital or the board of trustees of

16-9  the consolidated library district or district library is entitled to a hearing

16-10  before the board of county commissioners.

16-11  Sec. 35.  NRS 354.604 is hereby amended to read as follows:

16-12  354.604  Each local government shall maintain, according to its own

16-13  needs:

16-14  1.  The following kinds of governmental funds:

16-15  (a) General fund;

16-16  (b) Special revenue fund;

16-17  (c) [Fund for capital projects; and] Capital projects fund;

16-18  (d) Debt service fund[.] ; and

16-19  (e) Permanent fund.

16-20  2.  The following kinds of proprietary funds:

16-21  (a) Enterprise fund; and

16-22  (b) Internal service fund.

16-23  3.  [Trust and agency funds.

16-24  4.] The following kinds of [account groups:

16-25  (a) General fixed assets; and

16-26  (b) General long-term debt.] fiduciary funds:

16-27  (a) Pension and other employee benefits funds;

16-28  (b) Investment trust funds;

16-29  (c) Private-purpose trust funds; and

16-30  (d) Agency funds.

16-31  Sec. 36.  NRS 354.608 is hereby amended to read as follows:

16-32  354.608  A contingency account may be established in any

16-33  governmental fund. The maximum amount which may be appropriated for

16-34  such a contingency account is 3 percent of the money otherwise

16-35  appropriated to the fund, exclusive of any amounts to be transferred to

16-36  other funds. No expenditure may be made directly from such a contingency

16-37  account, except as a transfer to the appropriate account, and then only in

16-38  accordance with the procedure established in [NRS 354.606.] section 5 of

16-39  this act.

16-40  Sec. 37.  NRS 354.6105 is hereby amended to read as follows:

16-41  354.6105  1.  A local government [in a county whose population is

16-42  100,000 or more shall] may establish a fund for the extraordinary

16-43  maintenance, repair or improvement of capital projects. [The local

16-44  government shall establish within that fund a separate account for each

16-45  capital project it undertakes, except a capital project for the:

16-46  (a) Construction of public roads;

16-47  (b) Control of floods; or

16-48  (c) Transmission or treatment of water, waste water or sewerage.

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

17-2  percent of the total amount of the bonds sold for each capital project and

17-3  deposit that amount in the separate account established for that capital

17-4  project. The proceeds from the sale of those bonds or any other money of

17-5  the local government may be used to carry out the provisions of this

17-6  subsection.]

17-7    2.  Any interest and income earned on the money in [an account within]

17-8  the fund in excess of any amount which is reserved for rebate payments to

17-9  the Federal Government pursuant to 26 U.S.C. § 148, as amended, or is

17-10  otherwise required to be applied in a specific manner by the Internal

17-11  Revenue Code of 1986, as amended, must be credited to [that account.] the

17-12  fund.

17-13  3.  The money in [each account within] the fund may be used only for

17-14  the extraordinary maintenance, repair or improvement of the capital

17-15  [project or a facility which replaces that capital project.] projects or

17-16  facilities which replace capital projects of the local government that

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

17-18  fund at the end of the fiscal year may not revert to any other fund or be a

17-19  surplus for any purpose other than the purpose specified in this subsection.

17-20  [If the local government sells any capital project for which an account

17-21  within the fund was established, any balance remaining in that account

17-22  must be used to reduce the debt of the local government.

17-23  4.  The annual budget and audit report of the local government

17-24  prepared pursuant to NRS 354.624 must specifically identify:

17-25  (a) Each fund and every account within that fund established pursuant

17-26  to this section and indicate in detail any extraordinary maintenance, repairs

17-27  or improvements of the capital project that have been paid for with money

17-28  from the fund; and

17-29  (b) Any planned accumulation of money in each fund and every account

17-30  within the fund.

17-31  The audit report must include a statement by the auditor whether the local

17-32  government has complied with the provisions of this subsection.]

17-33  Sec. 38.  NRS 354.6115 is hereby amended to read as follows:

17-34  354.6115  1.  The governing body of a local government may, by

17-35  resolution, establish a fund to stabilize the operation of the local

17-36  government and mitigate the effects of natural disasters.

17-37  2.  The money in the fund must be used only:

17-38  (a) If the total actual revenue of the local government falls short of the

17-39  total anticipated revenue in the general fund for the fiscal year in which the

17-40  local government uses that money; or

17-41  (b) To pay expenses incurred by the local government to mitigate the

17-42  effects of a natural disaster.

17-43  The money in the fund at the end of the fiscal year may not revert to any

17-44  other fund or be a surplus for any purpose other than a purpose specified in

17-45  this subsection.

17-46  3.  The money in the fund may not be used to pay expenses incurred to

17-47  mitigate the effects of a natural disaster until the governing body of the

17-48  local government issues a formal declaration that a natural disaster exists.

17-49  The governing body shall not make such a declaration unless a natural

18-1  disaster is occurring or has occurred. Upon the issuance of such a

18-2  declaration, the money in the fund may be used for the payment of the

18-3  following expenses incurred by the local government as a result of the

18-4  natural disaster:

18-5    (a) The repair or replacement of roads, streets, bridges, water control

18-6  facilities, public buildings, public utilities, recreational facilities and parks

18-7  owned by the local government and damaged by the natural disaster;

18-8    (b) Any emergency measures undertaken to save lives, protect public

18-9  health and safety or protect property within the jurisdiction of the local

18-10  government;

18-11  (c) The removal of debris from publicly or privately owned land and

18-12  waterways within the jurisdiction of the local government that was

18-13  undertaken because of the natural disaster;

18-14  (d) Expenses incurred by the local government for any overtime worked

18-15  by an employee of the local government because of the natural disaster or

18-16  any other extraordinary expenses incurred by the local government because

18-17  of the natural disaster; and

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

18-19  to obtain a grant from a federal disaster assistance agency for an eligible

18-20  project to repair damage caused by the natural disaster within the

18-21  jurisdiction of the local government.

18-22  4.  The balance in the fund must not exceed 10 percent of the

18-23  expenditures from the general fund for the previous fiscal year, excluding

18-24  any federal funds expended by the local government.

18-25  5.  The annual budget and audit report of the local government

18-26  prepared pursuant to NRS 354.624 must specifically identify the fund .

18-27  [and:

18-28  (a) Indicate in detail the manner in which money in the fund was

18-29  expended during the previous fiscal year;

18-30  (b) Specify the amount of money, if any, that will be deposited in the

18-31  fund for the next fiscal year; and

18-32  (c) Identify any planned accumulation of the money in the fund.]

18-33  6. The audit report prepared for the fund must include a statement by

18-34  the auditor whether the local government has complied with the provisions

18-35  of this [subsection.

18-36  6.] section.

18-37  7.  Any transfer of money from a fund established pursuant to this

18-38  section must be completed within 90 days after the end of the fiscal year

18-39  in which the natural disaster for which the fund was established occurs.

18-40  8. As used in this section:

18-41  (a) “Grant match” has the meaning ascribed to it in NRS 353.2725.

18-42  (b) “Natural disaster” means a fire, flood, earthquake, drought or any

18-43  other occurrence that:

18-44     (1) Results in widespread or severe damage to property or injury to or

18-45  the death of persons within the jurisdiction of the local government; and

18-46     (2) As determined by the governing body of the local government,

18-47  requires immediate action to protect the health, safety and welfare of

18-48  persons residing within the jurisdiction of the local government.

 

19-1    Sec. 39.  NRS 354.6116 is hereby amended to read as follows:

19-2    354.6116  A local government, except a school district, that receives

19-3  revenue from taxes ad valorem from a lessee or user of property which is

19-4  taxable pursuant to NRS 361.157 or 361.159 shall deposit the revenue in or

19-5  transfer the revenue to one or more of the funds established by the local

19-6  government pursuant to NRS [354.611,] 354.6113 or 354.6115 and use that

19-7  revenue only for the purposes authorized by those sections if the revenue

19-8  was received in:

19-9    1.  A fiscal year after the fiscal year the taxes were owed; or

19-10  2.  The fiscal year the taxes are owed and the taxes were excluded from

19-11  the estimate of revenue from taxes ad valorem for the local government

19-12  pursuant to NRS 354.597.

19-13  Sec. 40.  NRS 354.6117 is hereby amended to read as follows:

19-14  354.6117  1.  Except as otherwise provided in subsection 2, the total

19-15  amount of money which may be transferred in a fiscal year from the

19-16  general fund of a local government to the funds established pursuant to

19-17  NRS [354.611,] 354.6113 and 354.6115 must not exceed 10 percent of the

19-18  total amount of the budgeted expenditures of the general fund, plus any

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

19-20  to those funds, for that fiscal year.

19-21  2.  Any money that a local government, pursuant to NRS 354.6116,

19-22  deposits in or transfers to one or more of the funds established by the local

19-23  government pursuant to NRS [354.611,] 354.6113 or 354.6115:

19-24  (a) Is not subject to the limitation on the amount of money that a local

19-25  government may transfer to those funds pursuant to subsection 1.

19-26  (b) Must not be included in the determination of the total amount of

19-27  money transferred to those funds for the purposes of the limitation set forth

19-28  in subsection 1.

19-29  Sec. 41.  NRS 354.612 is hereby amended to read as follows:

19-30  354.612  1.  A local government [may] shall establish by resolution

19-31  one or more [internal service] funds. The resolution establishing the fund

19-32  must set forth in detail:

19-33  (a) The object or purpose of the fund;

19-34  (b) The resources to be used to establish the fund;

19-35  (c) The source or sources from which the fund will be replenished;

19-36  [and]

19-37  (d) The method for controlling expenses and establishing revenues of

19-38  the fund; and

19-39  (e) The method by which a determination will be made as to whether

19-40  the balance, reserve or retained earnings of the fund are reasonable and

19-41  necessary to carry out the purpose of the fund.

19-42  2.  Financial statements and other schedules required for funds must

19-43  be prepared in accordance with generally accepted accounting principles.

19-44  3.  Upon adoption of a resolution establishing a fund, a local

19-45  government shall provide an executed copy of the resolution to the

19-46  department of taxation.

19-47  4.  In establishing [an internal service] a proprietary fund, a local

19-48  government shall, besides furnishing working capital for the fund, provide

19-49  that one of its financial objectives is to recover the complete costs of

20-1  operation of the activity being financed, including overhead, without

20-2  producing any significant amount of profit in the long run.

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

20-4  service funds must be prepared in accordance with generally accepted

20-5  accounting principles.]

20-6    5.  Each enterprise fund established must account for all charges

20-7  properly related to the purpose of the fund, including, without limitation,

20-8  debt service, capital outlay and operating expenses. No transfer of equity

20-9  that may be made available to other funds or functions may be declared

20-10  in an enterprise fund until after all proper obligations have been charged

20-11  against the fund.

20-12  Sec. 42.  NRS 354.620 is hereby amended to read as follows:

20-13  354.620  Any unencumbered balance on [a] an accrual or modified

20-14  accrual basis or any unexpended balance on a cash basis remaining to the

20-15  credit of any appropriation shall lapse at the end of the fiscal year and shall

20-16  revert to the available balance of the fund from which appropriated.

20-17  Sec. 43.  NRS 354.624 is hereby amended to read as follows:

20-18  354.624  1.  Each local government shall provide for an annual audit

20-19  of all of its[:

20-20  (a) Funds;

20-21  (b) Account groups; and

20-22  (c) Separate accounts established pursuant to NRS 354.603.] financial

20-23  statements.

20-24  A local government may provide for more frequent audits as it deems

20-25  necessary. Except as otherwise provided in subsection 2, each annual audit

20-26  must be concluded and the report of the audit submitted to the governing

20-27  body as provided in subsection [5] 6 not later than 5 months after the close

20-28  of the fiscal year for which the audit is conducted. An extension of this

20-29  time may be granted by the department of taxation to any local government

20-30  that submits an application for an extension to the department. If the local

20-31  government fails to provide for an audit in accordance with the provisions

20-32  of this section, the department of taxation shall cause the audit to be made

20-33  at the expense of the local government. All audits must be conducted by a

20-34  certifiedpublic accountant [who is certified or registered] or by a

20-35  partnership or professional corporation that is registered pursuant to

20-36  chapter 628 of NRS.

20-37  2.  The annual audit of a school district must:

20-38  (a) Be concluded and the report submitted to the board of trustees as

20-39  provided in subsection [5] 6 not later than 4 months after the close of the

20-40  fiscal year for which the audit is conducted.

20-41  (b) If the school district has more than 150,000 pupils enrolled, include

20-42  an audit of the expenditure by the school district of [all] public money

20-43  used:

20-44     (1) To design, construct or purchase new buildings for schools or

20-45  related facilities;

20-46     (2) To enlarge, remodel or renovate existing buildings for schools or

20-47  related facilities; and

20-48     (3) To acquire sites for building schools or related facilities, or other

20-49  real property for purposes related to schools.

21-1    3.  The governing body may, without requiring competitive bids,

21-2  designate the auditor or firm annually. The auditor or firm must be

21-3  designated and notification of the auditor or firm designated must be sent

21-4  to the department of taxationnot later than 3 months before the close of

21-5  the fiscal year for which the audit is to be made.

21-6    4.  Each annual audit must cover the business of the local government

21-7  during the full fiscal year. It must be a financial audit conducted in

21-8  accordance with generally accepted auditing standards[, including

21-9  comment] in the United States, including, findings on compliance with

21-10  statutes and regulations[, recommendations for improvements and any

21-11  other comments deemed pertinent by the auditor, including his] and an

21-12  expression of opinion on the financial statements. The department of

21-13  taxation shall prescribe the form of the financial statements, and the chart

21-14  of accounts must be as nearly as possible the same as the chart that is used

21-15  in the preparation and publication of the annual budget. The report of the

21-16  audit must include:

21-17  (a) A schedule of all fees imposed by the local government which were

21-18  subject to the provisions of NRS 354.5989; and

21-19  (b) A comparison of the operations of the local government with the

21-20  approved budget, including a statement from the auditor that indicates

21-21  whether the governing body has taken action [by adoption as

21-22  recommended, by adoption with modifications or by rejection on any

21-23  deficiencies in operations and recommendations for improvements which

21-24  were noted or made in previous reports;

21-25  (c)] on the audit report for the prior year.

21-26  5.  Each local government shall provide to its auditor:

21-27  (a)A statement [from the auditor that indicates] indicating whether

21-28  each of the following funds established by the local government is being

21-29  used expressly for the purposes for which it was created, in the form

21-30  required by NRS 354.6241:

21-31     (1) An enterprise fund.

21-32     (2) An internal service fund.

21-33     (3) A [trust or agency] fiduciary fund.

21-34     (4) A self-insurance fund.

21-35     (5) A fund whose balance is required by law to be:

21-36        (I) Used only for a specific purpose other than the payment of

21-37  compensation to a bargaining unit, as defined in NRS 288.028; or

21-38        (II) Carried forward to the succeeding fiscal year in any designated

21-39  amount; and

21-40  [(d)] (b) A list and description of any property conveyed to a nonprofit

21-41  organization pursuant to NRS 244.287 or 268.058.

21-42  [5.  The recommendations and the summary of the narrative comments]

21-43  6.  The opinion and findings of the auditor contained in the report of

21-44  the audit must be [read in full] presented at a meeting of the governing

21-45  body held not more than 30 days after the report is submitted to it.

21-46  Immediately thereafter, the entire report, together with [any related letter to

21-47  the governing body] the management letterrequired by generally accepted

21-48  auditing standards in the United States or by regulations adopted pursuant

21-49  to NRS 354.594, must be filed as a public record with:

22-1    (a) The clerk or secretary of the governing body;

22-2    (b) The county clerk;

22-3    (c) The department of taxation; and

22-4    (d) In the case of a school district, the department of education.

22-5    [6.] 7.  If an auditor finds evidence of fraud or dishonesty in the

22-6  financial statements of a local government, the auditor shall report such

22-7  evidence to the appropriate level of management in the local government.

22-8    8. The governing body shall act upon the recommendations of the

22-9  report of the audit within 3 months after receipt of the report, unless

22-10  prompter action is required concerning violations of law or regulation, by

22-11  setting forth in its minutes its intention to adopt the recommendations, to

22-12  adopt them with modifications or to reject them for reasons shown in the

22-13  minutes.

22-14  Sec. 44.  NRS 354.6241 is hereby amended to read as follows:

22-15  354.6241  1.  The statement required by paragraph [(c)] (a) of

22-16  subsection [4] 5 of NRS 354.624 must indicate for each fund set forth in

22-17  that paragraph:

22-18  (a) Whether the fund is being used in accordance with the provisions of

22-19  this chapter.

22-20  (b) Whether the fund is being administered in accordance with generally

22-21  accepted accounting procedures.

22-22  (c) Whether the reserve in the fund is limited to an amount that is

22-23  reasonable and necessary to carry out the purposes of the fund.

22-24  (d) The sources of revenues available for the fund during the fiscal year,

22-25  including transfers from any other funds.

22-26  (e) The statutory and regulatory requirements applicable to the fund.

22-27  (f) The balance and retained earnings of the fund.

22-28  2.  Except as otherwise provided in NRS 354.59891, to the extent that

22-29  the reserve in any fund set forth in paragraph [(c)] (a) of subsection [4] 5 of

22-30  NRS 354.624 exceeds the amount that is reasonable and necessary to carry

22-31  out the purposes for which the fund was created, the reserve may be

22-32  expended by the local government pursuant to the provisions of chapter

22-33  288 of NRS.

22-34  Sec. 45.  NRS 354.626 is hereby amended to read as follows:

22-35  354.626  1.  No governing body or member thereof, officer, office,

22-36  department or agency may, during any fiscal year, expend or contract to

22-37  expend any money or incur any liability, or enter into any contract which

22-38  by its terms involves the expenditure of money, in excess of the amounts

22-39  appropriated for that function, other than bond repayments, medium-term

22-40  obligation repayments, and any other long-term contract expressly

22-41  authorized by law. Any officer or employee of a local government who

22-42  willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a

22-43  misdemeanor, and upon conviction thereof ceases to hold his office or

22-44  employment. Prosecution for any violation of this section may be

22-45  conducted by the attorney general, or, in the case of incorporated cities,

22-46  school districts or special districts, by the district attorney.

22-47  2.  Without limiting the generality of the exceptions contained in

22-48  subsection 1, the provisions of this section specifically do not apply to:

23-1    (a) Purchase of [comprehensive general liability policies] coverage and

23-2  professional services directly related to a program of insurance which

23-3  require an audit at the end of the term thereof.

23-4    (b) Long-term cooperative agreements as authorized by chapter 277 of

23-5  NRS.

23-6    (c) Long-term contracts in connection with planning and zoning as

23-7  authorized by NRS 278.010 to 278.630, inclusive.

23-8    (d) Long-term contracts for the purchase of utility service such as, but

23-9  not limited to, heat, light, sewerage, power, water and telephone service.

23-10  (e) Contracts between a local government and an employee covering

23-11  professional services to be performed within 24 months following the date

23-12  of such contract or contracts entered into between local government

23-13  employers and employee organizations.

23-14  (f) Contracts between a local government and any person for the

23-15  construction or completion of public works, money for which has been or

23-16  will be provided by the proceeds of a sale of bonds or medium-term

23-17  obligations and that are entered into by the local government after:

23-18     (1) Any election required for the approval of the bonds has been held;

23-19     (2) Any approvals by any other governmental entity required to be

23-20  obtained before the bonds or medium-term obligations can be issued have

23-21  been obtained; and

23-22     (3) The ordinance or resolution that specifies each of the terms of the

23-23  bonds or medium-term obligations, except those terms that are set forth in

23-24  paragraphs (a) to (e), inclusive, of subsection 2 of NRS 350.165, has been

23-25  adopted.

23-26  Neither the fund balance of a governmental fund nor the equity balance in

23-27  any proprietary fund may be used unless appropriated in a manner

23-28  provided by law.

23-29  (g) Contracts which are entered into by a local government and

23-30  delivered to any person solely for the purpose of acquiring supplies ,

23-31  services, and equipment necessarily ordered in the current fiscal year for

23-32  use in an ensuing fiscal year, and which, under the method of accounting

23-33  adopted by the local government, will be charged against an appropriation

23-34  of a subsequent fiscal year. Purchase orders evidencing such contracts are

23-35  public records available for inspection by any person on demand.

23-36  (h) Long-term contracts for the furnishing of television or FM radio

23-37  broadcast translator signals as authorized by NRS 269.127.

23-38  (i) The receipt and proper expenditure of money received pursuant to a

23-39  grant awarded by an agency of the Federal Government.

23-40  (j) The incurrence of obligations beyond the current fiscal year under a

23-41  lease or contract for installment purchase which contains a provision that

23-42  the obligation incurred thereby is extinguished by the failure of the

23-43  governing body to appropriate money for the ensuing fiscal year for the

23-44  payment of the amounts then due.

23-45  Sec. 46.  NRS 354.655 is hereby amended to read as follows:

23-46  354.655  As used in NRS 354.655 to 354.725, inclusive, unless the

23-47  context requires otherwise:

23-48  1.  “Committee” means the committee on local government finance.

23-49  2.  “Department” means the department of taxation.

24-1    3.  “Executive director” means the executive director of the department

24-2  of taxation.

24-3    4.  “Local government” means any local government subject to the

24-4  provisions of the Local Government Budget and Finance Act.

24-5    5.  The words and terms defined in the Local Government Budget and

24-6  FinanceAct have the meanings ascribed to them in that act.

24-7    Sec. 47.  NRS 354.665 is hereby amended to read as follows:

24-8    354.665  1.  If a local government does not file a statement, report or

24-9  other document as required by the provisions of NRS 350.0035, 354.602,

24-10  354.6025, 354.624, 354.6245 or 387.303 within 15 days after the day on

24-11  which it was due, the executive director shall notify the governing body of

24-12  the local government in writing that the report is delinquent. The

24-13  notification must be noted in the minutes of the first meeting of the

24-14  governing body following transmittal of the notification.

24-15  2.  If the required report is not received by the department within 45

24-16  days after the day on which the report was due, the executive director shall

24-17  notify the governing body that the presence of a representative of the

24-18  governing body is required at the next practicable scheduled meeting of the

24-19  [Nevada tax commission] committee to explain the reason that the report

24-20  has not been filed. The notice must be transmitted to the governing body at

24-21  least 5 days before the date on which the meeting will be held.

24-22  3.  If an explanation satisfactory to the [Nevada tax commission]

24-23  committeeis not provided at the meeting as requested in the notice and an

24-24  arrangement is not made for the submission of the report, the [commission]

24-25  committeemay instruct the executive director to request that the state

24-26  treasurer withhold from the local government the next distribution [of the

24-27  supplemental city-county relief tax] from the local government tax

24-28  distribution accountif the local government is otherwise entitled to

24-29  receive such a distribution or of the Local School Support Tax if the local

24-30  government is a school district. Upon receipt of such a request, the state

24-31  treasurer shall withhold the payment and all future payments until he is

24-32  notified by the executive director that the report has been received by the

24-33  department.

24-34  Sec. 48.  NRS 354.685 is hereby amended to read as follows:

24-35  354.685  1.  If the department finds that one or more of the following

24-36  conditions exist in any local government, after giving consideration to the

24-37  severity of the condition, it may determine that one or more hearings

24-38  should be conducted to determine the extent of the problem and to

24-39  determine whether a recommendation of severe financial emergency

24-40  should be made to the Nevada tax commission:

24-41  (a) Required financial reports have not been filed or are consistently

24-42  late.

24-43  (b) The audit report reflects the unlawful expenditure of money in

24-44  excess of the amount appropriated in violation of the provisions of

24-45  NRS 354.626.

24-46  (c) The audit report shows funds with deficit fund balances.

24-47  (d) The local government has incurred debt beyond its ability to repay.

24-48  (e) The local government has not corrected violations of statutes or

24-49  regulations adopted pursuant thereto as noted in the audit report.

25-1    (f) The local government has serious internal control problems noted in

25-2  the audit report which have not been corrected.

25-3    (g) The local government has a record of being late in its payments for

25-4  services and supplies.

25-5    (h) The local government has had insufficient cash to meet required

25-6  payroll payments in a timely manner.

25-7    (i) The local government has borrowed money or entered into long-term

25-8  lease arrangements without following the provisions of NRS or regulations

25-9  adopted pursuant thereto.

25-10  (j) The governing body of the local government has failed to correct

25-11  problems after it has been notified of such problems by the department.

25-12  (k) The local government has not separately accounted for its individual

25-13  funds as required by chapter 354 of NRS.

25-14  (l) The local government has invested its money in financial instruments

25-15  in violation of the provisions of chapter 355 of NRS.

25-16  (m) The local government is in violation of any covenant in connection

25-17  with any debt issued by the local government.

25-18  (n) The local government has not made bond and lease payments in

25-19  accordance with the approved payment schedule.

25-20  (o) The local government has failed to control its assets such that large

25-21  defalcations have occurred which have impaired the financial condition of

25-22  the local government.

25-23  (p) The local government has recognized sizeable losses as a result of

25-24  the imprudent investment of money.

25-25  (q) The local government has allowed its accounting system and

25-26  recording of transactions to deteriorate to such an extent that it is not

25-27  possible to measure accurately the results of operations or to ascertain the

25-28  financial position of the local government without a reconstruction of

25-29  transactions.

25-30  (r) The local government has consistently issued checks not covered by

25-31  adequate deposits.

25-32  (s) The local government has loaned and borrowed money between

25-33  funds without following the proper procedures.

25-34  (t) The local government has expended money in violation of the

25-35  provisions governing the expenditure of that money.

25-36  (u) Money restricted for any specific use has been expended in violation

25-37  of the terms and provisions relating to the receipt and expenditure of that

25-38  money.

25-39  (v) Money has been withheld in accordance with the provisions of

25-40  NRS 354.665.

25-41  (w) If the local government is a school district, a loan has been made

25-42  from the state permanent school fund to the school district pursuant to

25-43  NRS 387.526.

25-44  (x) An employer in the county that accounts for more than 15 percent

25-45  of the employment in the county has closed or significantly reduced

25-46  operations.

25-47  (y) The local government has experienced a cumulative decline of 10

25-48  percent in population or assessed valuation for the past 2 years.

26-1    (z) The ending balance in the general fund of the local government

26-2  has declined for the past 2 years.

26-3    (aa) The local government has failed to pay, in a timely manner,

26-4  contributions to the public employees’ retirement system, workers’

26-5  compensation or payroll taxes or fails to pay, at any time, a payment

26-6  required pursuant to the Federal Insurance Contributions Act.

26-7    2.  If the department determines that a condition listed in subsection 1

26-8  exists, the department shall:

26-9    (a) Notify the local government about the determination;

26-10  (b) Request from the local government any information that the

26-11  department deems to be appropriate to determine the extent of the

26-12  condition; and

26-13  (c) Require the local government to formulate a plan of corrective

26-14  action to mitigate the possible financial emergency.

26-15  3.  Within 45 days after receiving notification pursuant to subsection

26-16  2, a local government shall submit to the committee any information

26-17  requested by the department and a plan of corrective action.

26-18  4.  The committee shall:

26-19  (a) Review a plan of corrective action submitted by a local

26-20  government;

26-21  (b) Provide observations and recommendations for the local

26-22  government; and

26-23  (c) If the committee deems necessary, periodically review the status of

26-24  the financial operations of the local government.

26-25  5.  The department shall report the observations and

26-26  recommendations of the committee to the Nevada tax commission.

26-27  6. In addition to any notice otherwise required, the department shall

26-28  give notice of any hearing held pursuant to subsection 1 to the governing

26-29  body of each local government whose jurisdiction overlaps with the

26-30  jurisdiction of the local government whose financial condition will be

26-31  considered at least 10 days before the date on which the hearing will be

26-32  held.

26-33  [3.] 7.  If the department, following the hearing or hearings,

26-34  determines that a recommendation of severe financial emergency should be

26-35  made to the Nevada tax commission, it shall make such a recommendation

26-36  as soon as practicable. Upon receipt of such a recommendation, the Nevada

26-37  tax commission shall hold a hearing at which the department, the local

26-38  government whose financial condition will be considered and each local

26-39  government whose jurisdiction overlaps with the jurisdiction of the local

26-40  government whose financial condition will be considered are afforded an

26-41  opportunity to be heard. If, after the hearing, the Nevada tax commission

26-42  determines that a severe financial emergency exists, it shall require by

26-43  order that the department take over the management of the local

26-44  government as soon as practicable.

26-45  8.  As used in this section, “Federal Insurance Contributions Act”

26-46  means subchapter A of chapter 9 of the Internal Revenue Code of 1939

26-47  and subchapters A and B of chapter 21 of the Internal Revenue Code of

26-48  1954, as such codes have been and may from time to time be amended.

 

27-1    Sec. 49.  NRS 354.695 is hereby amended to read as follows:

27-2    354.695  1.  As soon as practicable after taking over the management

27-3  of a local government, the department shall, with the approval of the

27-4  committee:

27-5    (a) Establish and implement a management policy and a financing plan

27-6  for the local government;

27-7    (b) Provide for the appointment of a financial manager for the local

27-8  government who is qualified to manage the fiscal affairs of the local

27-9  government;

27-10  (c) Provide for the appointment of any other persons necessary to

27-11  enable the local government to provide the basic services for which it was

27-12  created in the most economical and efficient manner possible;

27-13  (d) Establish an accounting system and separate accounts in a bank or

27-14  credit union, if necessary, to receive and expend all money and assets of

27-15  the local government;

27-16  (e) Impose such hiring restrictions as deemed necessary after

27-17  considering the recommendations of the financial manager;

27-18  (f) Negotiate and approve all contracts entered into by or on behalf of

27-19  the local government before execution and enter into such contracts on

27-20  behalf of the local government as the department deems necessary;

27-21  (g) Negotiate and approve all collective bargaining contracts to be

27-22  entered into by the local government, except issues submitted to a

27-23  factfinder whose findings and recommendations are final and binding

27-24  pursuant to the provisions of the Local Government Employee-

27-25  Management Relations Act;

27-26  (h) Approve all expenditures of money from any fund or account and all

27-27  transfers of money from one fund to another;

27-28  (i) Employ such technicians as are necessary for the improvement of the

27-29  financial condition of the local government;

27-30  (j) Meet with the creditors of the local government and formulate a debt

27-31  liquidation program;

27-32  (k) Approve the issuance of bonds or other forms of indebtedness by the

27-33  local government;

27-34  (l) Discharge any of the outstanding debts and obligations of the local

27-35  government; and

27-36  (m) Take any other actions necessary to ensure that the local

27-37  government provides the basic services for which it was created in the most

27-38  economical and efficient manner possible.

27-39  2.  The department may provide for reimbursement from the local

27-40  government for the expenses [it] the department incurs in managing the

27-41  local government. If such reimbursement is not possible, the department

27-42  may request an allocation by the interim finance committee from the

27-43  contingency fund pursuant to NRS 353.266, 353.268 and 353.269.

27-44  3.  The governing body of a local government which is being managed

27-45  by the department pursuant to this section may make recommendations to

27-46  the department or the financial manager concerning the management of the

27-47  local government.

28-1    4.  Each state agency, board, department, commission, committee or

28-2  other entity of the state shall provide such technical assistance concerning

28-3  the management of the local government as is requested by the department.

28-4    5.  The department may delegate any of the powers and duties imposed

28-5  by this section to the financial manager appointed pursuant to paragraph

28-6  (b) of subsection 1.

28-7    6.  Except as otherwise provided in NRS 354.723 and 450.760, once

28-8  the department has taken over the management of a local government

28-9  pursuant to the provisions of subsection 1, that management may only be

28-10  terminated pursuant to NRS 354.725.

28-11  Sec. 50.  NRS 354.705 is hereby amended to read as follows:

28-12  354.705  1.  As soon as practicable after the department takes over the

28-13  management of a local government, the executive director shall:

28-14  (a) Determine the total amount of expenditures necessary to allow the

28-15  local government to perform the basic functions for which it was created;

28-16  (b) Determine the amount of revenue reasonably expected to be

28-17  available to the local government; and

28-18  (c) Consider any alternative sources of revenue available to the local

28-19  government.

28-20  2.  If the executive director determines that the available revenue is not

28-21  sufficient to provide for the payment of required debt service and operating

28-22  expenses, he may submit his findings to the committee who shall review

28-23  the determinations made by the executive director. If the committee

28-24  determines that additional revenue is needed, it shall prepare a

28-25  recommendation to the Nevada tax commission as to which one or more of

28-26  the following additional taxes or charges should be imposed by the local

28-27  government:

28-28  (a) The levy of a property tax up to a rate which when combined with

28-29  all other overlapping rates levied in the state does not exceed $4.50 on each

28-30  $100 of assessed valuation.

28-31  (b) An additional tax on transient lodging at a rate not to exceed 1

28-32  percent of the gross receipts from the rental of transient lodging within the

28-33  boundaries of the local government upon all persons in the business of

28-34  providing lodging. Any such tax must be collected and administered in the

28-35  same manner as all other taxes on transient lodging are collected by or for

28-36  the local government.

28-37  (c) Additional service charges appropriate to the local government.

28-38  (d) If the local government is a county or has boundaries that are

28-39  conterminous with the boundaries of the county:

28-40     (1) An additional tax on the gross receipts from the sale or use of

28-41  tangible personal property not to exceed one quarter of 1 percent

28-42  throughout the county. The ordinance imposing any such tax must include

28-43  provisions in substance which comply with the requirements of subsections

28-44  2 to 5, inclusive, of NRS 377A.030.

28-45     (2) An additional governmental services tax of not more than 1 cent

28-46  on each $1 of valuation of the vehicle for the privilege of operating upon

28-47  the public streets, roads and highways of the county on each vehicle based

28-48  in the county except those vehicles exempt from the governmental services

28-49  tax imposed pursuant to chapter 371 of NRS or a vehicle subject to

 

29-1  NRS 706.011 to 706.861, inclusive, which is engaged in interstate or

29-2  intercounty operations. As used in this subparagraph, “based” has the

29-3  meaning ascribed to it in NRS 482.011.

29-4    3.  Upon receipt of the plan from the committee, a panel consisting of

29-5  three members of the Nevada tax commission appointed by the Nevada

29-6  tax commission and three members of the committee appointed by the

29-7  committeeshall hold a public hearing at a location within the boundaries of

29-8  the local government in which the severe financial emergency exists after

29-9  giving public notice of the hearing at least 10 days before the date on

29-10  which the hearing will be held. In addition to the public notice, the

29-11  [Nevada tax commission] panel shall give notice to the governing body of

29-12  each local government whose jurisdiction overlaps with the jurisdiction of

29-13  the local government in which the severe financial emergency exists.

29-14  4.  After the public hearing[,] conducted pursuant to subsection 3, the

29-15  Nevada tax commission may adopt the plan as submitted or adopt a revised

29-16  plan. Any plan adopted pursuant to this section must include the duration

29-17  for which any new or increased taxes or charges may be collected which

29-18  must not exceed 5 years.

29-19  5.  Upon adoption of the plan by the Nevada tax commission, the local

29-20  government in which the severe financial emergency exists shall impose or

29-21  cause to be imposed the additional taxes and charges included in the plan

29-22  for the duration stated in the plan or until the severe financial emergency

29-23  has been determined by the Nevada tax commission to have ceased to

29-24  exist.

29-25  6.  The allowed revenue from taxes ad valorem determined pursuant to

29-26  NRS 354.59811 does not apply to any additional property tax levied

29-27  pursuant to this section.

29-28  7.  If a plan fails to satisfy the expenses of the local government to the

29-29  extent expected, the committee shall report such failure to:

29-30  (a) The county for consideration of absorption of services; or

29-31  (b) If the local government is a county, to the next regular session of

29-32  the legislature.

29-33  Sec. 51.  NRS 4.035 is hereby amended to read as follows:

29-34  4.035  1.  The court administrator shall, at the direction of the chief

29-35  justice of the supreme court, arrange for the giving of instruction, at the

29-36  National Judicial College in Reno, Nevada, or elsewhere:

29-37  (a) In court procedure, recordkeeping and the elements of substantive

29-38  law appropriate to a justice’s court, to each justice of the peace who is first

29-39  elected or appointed to office after July 1, 1971, and to other justices of the

29-40  peace who so desire and who can be accommodated, between each general

29-41  election and January 1 next following.

29-42  (b) In statutory amendments and other developments in the law

29-43  appropriate to a justice’s court, to all justices of the peace at least once

29-44  each year.

29-45  2.  Each county shall pay to the supreme court the county’s pro rata

29-46  share of the costs of that instruction as budgeted for pursuant to the Local

29-47  Government Budget and Finance Act.

30-1    3.  The supreme court shall deposit with the state treasurer, for credit to

30-2  the appropriate account of the supreme court, all money received pursuant

30-3  to subsection 2.

30-4    Sec. 52.  NRS 5.025 is hereby amended to read as follows:

30-5    5.025  1.  The court administrator shall, at the direction of the chief

30-6  justice of the supreme court, arrange for the giving of instruction, at the

30-7  National Judicial College in Reno, Nevada, or elsewhere:

30-8    (a) In court procedure, recordkeeping and the elements of substantive

30-9  law appropriate to a municipal court, to each municipal judge who is first

30-10  elected or appointed to office after July 1, 1971, and to other such judges

30-11  who so desire and who can be accommodated, between each election

30-12  designated for the election of such judges and the date of entering office.

30-13  (b) In statutory amendments and other developments in the law

30-14  appropriate to a municipal court, to all such judges at convenient intervals.

30-15  2.  Each city shall pay to the supreme court the city’s pro rata share of

30-16  the costs of such instruction as budgeted for pursuant to the Local

30-17  Government Budget and Finance Act.

30-18  3.  The supreme court shall deposit with the state treasurer, for credit to

30-19  the appropriate account of the supreme court, all money received pursuant

30-20  to subsection 2.

30-21  Sec. 53.  NRS 41.075 is hereby amended to read as follows:

30-22  41.075  No cause of action may be brought against the committee on

30-23  local government finance created pursuant to [NRS 266.0165,] section 4 of

30-24  this act,or any of its members, which is based upon:

30-25  1.  Any act or omission in the execution of, or otherwise in conjunction

30-26  with, the execution of NRS 354.655 to 354.725, inclusive, or any policy or

30-27  plan adopted pursuant thereto, whether or not such statute, policy or plan is

30-28  valid, if the statute, policy or plan has not been declared invalid by a court

30-29  of competent jurisdiction; or

30-30  2.  The exercise or performance or the failure to exercise or perform a

30-31  discretionary function or duty on the part of the committee on local

30-32  government finance or member thereof, whether or not the discretion

30-33  involved is abused.

30-34  Sec. 54.  NRS 218.53881 is hereby amended to read as follows:

30-35  218.53881  1.  There is hereby established a legislative committee to

30-36  study the distribution among local governments of revenue from state and

30-37  local taxes consisting of:

30-38  (a) Two members appointed by the majority leader of the senate from

30-39  the membership of the senate standing committee on government affairs

30-40  during the immediately preceding session of the legislature;

30-41  (b) Two members appointed by the majority leader of the senate from

30-42  the membership of the senate standing committee on taxation during the

30-43  immediately preceding session of the legislature;

30-44  (c) Two members appointed by the speaker of the assembly from the

30-45  membership of the assembly standing committee on government affairs

30-46  during the immediately preceding session of the legislature; and

30-47  (d) Two members appointed by the speaker of the assembly from the

30-48  membership of the assembly standing committee on taxation during the

30-49  immediately preceding session of the legislature.

31-1    2.  The committee shall consult with an advisory committee consisting

31-2  of the executive director of the department of taxation and 10 members

31-3  who are representative of various geographical areas of the state and are

31-4  appointed for terms of 2 years commencing on July 1 of each odd-

31-5  numbered year as follows:

31-6    (a) One member of the committee on local government finance created

31-7  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-8  League of Cities;

31-9    (b) One member of the committee on local government finance created

31-10  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-11  Association of Counties;

31-12  (c) One member of the committee on local government finance created

31-13  pursuant to [NRS 266.0165] section 4 of this act appointed by the Nevada

31-14  School Trustees Association;

31-15  (d) Three members involved in the government of a county appointed

31-16  by the Nevada Association of Counties;

31-17  (e) Three members involved in the government of an incorporated city

31-18  appointed by the Nevada League of Cities; and

31-19  (f) One member who is a member of a board of trustees for a general

31-20  improvement district appointed by the legislative

31-21  commission.

31-22  The members of the advisory committee are nonvoting members of the

31-23  committee. When meeting as the advisory committee, the members shall

31-24  comply with the provisions of chapter 241 of NRS.

31-25  3.  The legislative members of the committee shall elect a chairman

31-26  from one house of the legislature and a vice chairman from the other house.

31-27  Each chairman and vice chairman holds office for a term of 2 years

31-28  commencing on July 1 of each odd-numbered year.

31-29  4.  Any member of the committee who is not a candidate for reelection

31-30  or who is defeated for reelection continues to serve until the next session of

31-31  the legislature convenes.

31-32  5.  Vacancies on the committee must be filled in the same manner as

31-33  original appointments.

31-34  6.  The committee shall report annually to the legislative commission

31-35  concerning its activities and any recommendations.

31-36  Sec. 55.  NRS 244A.615 is hereby amended to read as follows:

31-37  244A.615  As provided by law, the county fair and recreation board

31-38  shall comply with the provisions of the Local Government Budget and

31-39  FinanceAct.

31-40  Sec. 56.  NRS 271.536 is hereby amended to read as follows:

31-41  271.536  In lieu of issuing bonds or interim securities to defray the cost

31-42  of an improvement to be constructed by way of a special improvement

31-43  district, the governing body may advance money to cover that cost from:

31-44  1.  The general fund of the municipality, if the cost of the improvement

31-45  does not exceed $300,000; or

31-46  2.  [An internal service] A proprietary fund, if the municipality has

31-47  established [an internal service] a proprietary fund for that purpose

31-48  pursuant to NRS 354.612.

 

32-1    Sec. 57.  NRS 278.806 is hereby amended to read as follows:

32-2    278.806  1.  The agency shall establish and maintain an office within

32-3  the state. The agency may rent property and equipment. Every plan,

32-4  ordinance and other record of the agency which is of such nature as to

32-5  constitute a public record under the law of the State of Nevada shall be

32-6  open to inspection and copying during regular office hours.

32-7    2.  The agency shall be deemed to be a local government for the

32-8  purposes of the Local Government Budget and Finance Act.

32-9    Sec. 57.5  NRS 360.690 is hereby amended to read as follows:

32-10  360.690  1.  Except as otherwise provided in NRS 360.730, the

32-11  executive director shall estimate monthly the amount each local

32-12  government, special district and enterprise district will receive from the

32-13  account pursuant to the provisions of this section.

32-14  2.  The executive director shall establish a base monthly allocation for

32-15  each local government, special district and enterprise district by dividing

32-16  the amount determined pursuant to NRS 360.680 for each local

32-17  government, special district and enterprise district by 12 and the state

32-18  treasurer shall, except as otherwise provided in subsections 3, 4 and 5,

32-19  remit monthly that amount to each local government, special district and

32-20  enterprise district.

32-21  3.  If, after making the allocation to each enterprise district for the

32-22  month, the executive director determines there is not sufficient money

32-23  available in the county’s subaccount in the account to allocate to each local

32-24  government and special district the base monthly allocation determined

32-25  pursuant to subsection 2, he shall prorate the money in the county’s

32-26  subaccount and allocate to each local government and special district an

32-27  amount equal to the percentage of the amount that the local government or

32-28  special district received from the total amount which was distributed to all

32-29  local governments and special districts within the county for the fiscal year

32-30  immediately preceding the year in which the allocation is made. The state

32-31  treasurer shall remit that amount to the local government or special district.

32-32  4.  Except as otherwise provided in subsection 5, if the executive

32-33  director determines that there is money remaining in the county’s

32-34  subaccount in the account after the base monthly allocation determined

32-35  pursuant to subsection 2 has been allocated to each local government,

32-36  special district and enterprise district, he shall immediately determine and

32-37  allocate each:

32-38  (a) Local government’s share of the remaining money by:

32-39     (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

32-40  360.680 by one plus the sum of the:

32-41        (I) Percentage change in the population of the local government for

32-42  the fiscal year immediately preceding the year in which the allocation is

32-43  made, as certified by the governor pursuant to NRS 360.285 except as

32-44  otherwise provided in subsection 6; and

32-45        (II) Average percentage of change in the assessed valuation of the

32-46  taxable property in the local government, including assessed valuation

32-47  attributable to a redevelopment agency but excluding the portion

32-48  attributable to the net proceeds of minerals, over the year in which the

32-49  allocation is made, as projected by the department pursuant to NRS

33-1  361.390, and the 4 fiscal years immediately preceding the year in which the

33-2  allocation is made; and

33-3      (2) Using the figure calculated pursuant to subparagraph (1) to

33-4  calculate and allocate to each local government an amount equal to the

33-5  proportion that the figure calculated pursuant to subparagraph (1) bears to

33-6  the total amount of the figures calculated pursuant to subparagraph (1) of

33-7  this paragraph and subparagraph (1) of paragraph (b), respectively, for the

33-8  local governments and special districts located in the same county

33-9  multiplied by the total amount available in the subaccount; and

33-10  (b) Special district’s share of the remaining money by:

33-11     (1) Multiplying one-twelfth of the amount allocated pursuant to NRS

33-12  360.680 by one plus the average change in the assessed valuation of the

33-13  taxable property in the special district, including assessed valuation

33-14  attributable to a redevelopment agency but excluding the portion

33-15  attributable to the net proceeds of minerals, over the 5 fiscal years

33-16  immediately preceding the year in which the allocation is made; and

33-17     (2) Using the figure calculated pursuant to subparagraph (1) to

33-18  calculate and allocate to each special district an amount equal to the

33-19  proportion that the figure calculated pursuant to subparagraph (1) bears to

33-20  the total amount of the figures calculated pursuant to subparagraph (1) of

33-21  this paragraph and subparagraph (1) of paragraph (a), respectively, for the

33-22  local governments and special districts located in the same county

33-23  multiplied by the total amount available in the subaccount.

33-24  The state treasurer shall remit the amount allocated to each local

33-25  government or special district pursuant to this subsection.

33-26  5.  The executive director shall not allocate any amount to a local

33-27  government or special district pursuant to subsection 4, unless the amount

33-28  distributed and allocated to each of the local governments and special

33-29  districts in the county in each preceding month of the fiscal year in which

33-30  the allocation is to be made was at least equal to the base monthly

33-31  allocation determined pursuant to subsection 2. If the amounts distributed

33-32  to the local governments and special districts in the county for the

33-33  preceding months of the fiscal year in which the allocation is to be made

33-34  were less than the base monthly allocation determined pursuant to

33-35  subsection 2 and the executive director determines there is money

33-36  remaining in the county’s subaccount in the account after the distribution

33-37  for the month has been made, he shall:

33-38  (a) Determine the amount by which the base monthly allocations

33-39  determined pursuant to subsection 2 for each local government and special

33-40  district in the county for the preceding months of the fiscal year in which

33-41  the allocation is to be made exceeds the amounts actually received by the

33-42  local governments and special districts in the county for the same period;

33-43  and

33-44  (b) Compare the amount determined pursuant to paragraph (a) to the

33-45  amount of money remaining in the county’s subaccount in the account to

33-46  determine which amount is greater.

33-47  If the executive director determines that the amount determined pursuant to

33-48  paragraph (a) is greater, he shall allocate the money remaining in the

33-49  county’s subaccount in the account pursuant to the provisions of

 

34-1  subsection 3. If the executive director determines that the amount of money

34-2  remaining in the county’s subaccount in the account is greater, he shall first

34-3  allocate the money necessary for each local government and special district

34-4  to receive the base monthly allocation determined pursuant to subsection 2

34-5  and the state treasurer shall remit that money so allocated. The executive

34-6  director shall allocate any additional money in the county’s subaccount in

34-7  the account pursuant to the provisions of subsection 4.

34-8    6.  The percentage change calculated pursuant to paragraph (a) of

34-9  subsection 4 must:

34-10  (a) [If] Except as otherwise provided in paragraph (c), if the Bureau of

34-11  the Census of the United States Department of Commerce issues

34-12  population totals that conflict with the totals certified by the governor

34-13  pursuant to NRS 360.285, be an estimate of the change in population for

34-14  the calendar year, based upon the population totals issued by the Bureau of

34-15  the Census.

34-16  (b) If a new method of determining population is established pursuant to

34-17  NRS 360.283, be adjusted in a manner that will result in the percentage

34-18  change being based on population determined pursuant to the new method

34-19  for both the fiscal year in which the allocation is made and the fiscal year

34-20  immediately preceding the year in which the allocation is made.

34-21  (c) If a local government files a formal appeal with the Bureau of the

34-22  Census of the United States Department of Commerce concerning the

34-23  population total of the local government issued by the Bureau of the

34-24  Census, be calculated using the population total certified by the governor

34-25  pursuant to NRS 360.285 until the appeal is resolved. If additional

34-26  money is allocated to the local government because the population total

34-27  certified by the governor is greater than the population total issued by the

34-28  Bureau of the Census, the state treasurer shall deposit that additional

34-29  money in a separate interest-bearing account. Upon resolution of the

34-30  appeal, if the population total finally determined pursuant to the appeal

34-31  is:

34-32     (1) Equal to or less than the population total initially issued by the

34-33  Bureau of the Census, the state treasurer shall transfer the total amount

34-34  in the separate interest-bearing account, including interest but excluding

34-35  any administrative fees, to the local government tax distribution account

34-36  for allocation among the local governments in the county pursuant to

34-37  subsection 4.

34-38     (2) Greater than the population total initially issued by the Bureau

34-39  of the Census, the executive director shall calculate the amount that

34-40  would have been allocated to the local government pursuant to

34-41  subsection 4 if the population total finally determined pursuant to the

34-42  appeal had been used and the state treasurer shall remit to the local

34-43  government an amount equal to the difference between the amount

34-44  actually distributed and the amount calculated pursuant to this

34-45  subparagraph or the total amount in the separate interest-bearing

34-46  account, including interest but excluding any administrative fees,

34-47  whichever is less.

34-48  7.  On or before February 15 of each year, the executive director shall

34-49  provide to each local government, special district and enterprise district a

35-1  preliminary estimate of the revenue it will receive from the account for that

35-2  fiscal year.

35-3    8.  On or before March 15 of each year, the executive director shall:

35-4    (a) Make an estimate of the receipts from each tax included in the

35-5  account on an accrual basis for the next fiscal year in accordance with

35-6  generally accepted accounting principles, including an estimate for each

35-7  county of the receipts from each tax included in the account; and

35-8    (b) Provide to each local government, special district and enterprise

35-9  district an estimate of the amount that local government, special district or

35-10  enterprise district would receive based upon the estimate made pursuant to

35-11  paragraph (a) and calculated pursuant to the provisions of this section.

35-12  9.  A local government, special district or enterprise district may use

35-13  the estimate provided by the executive director pursuant to subsection 8 in

35-14  the preparation of its budget.

35-15  Sec. 58.  NRS 360.750 is hereby amended to read as follows:

35-16  360.750  1.  A person who intends to locate or expand a business in

35-17  this state may apply to the commission on economic development for a

35-18  partial abatement of one or more of the taxes imposed on the new or

35-19  expanded business pursuant to chapter 361, 364A or 374 of NRS.

35-20  2.  The commission on economic development shall approve an

35-21  application for a partial abatement if the commission makes the following

35-22  determinations:

35-23  (a) The business is consistent with:

35-24     (1) The state plan for industrial development and diversification that

35-25  is developed by the commission pursuant to NRS 231.067; and

35-26     (2) Any guidelines adopted pursuant to the state plan.

35-27  (b) The applicant has executed an agreement with the commission

35-28  which states that the business will, after the date on which a certificate of

35-29  eligibility for the abatement is issued pursuant to subsection 5, continue in

35-30  operation in this state for a period specified by the commission, which

35-31  must be at least 5 years, and will continue to meet the eligibility

35-32  requirements set forth in this subsection. The agreement must bind the

35-33  successors in interest of the business for the specified period.

35-34  (c) The business is registered pursuant to the laws of this state or the

35-35  applicant commits to obtain a valid business license and all other permits

35-36  required by the county, city or town in which the business operates.

35-37  (d) Except as otherwise provided in NRS 361.0687, if the business is a

35-38  new business in a county or city whose population is 50,000 or more, the

35-39  business meets at least two of the following requirements:

35-40     (1) The business will have 75 or more full-time employees on the

35-41  payroll of the business by the fourth quarter that it is in operation.

35-42     (2) Establishing the business will require the business to make a

35-43  capital investment of at least $1,000,000 in this state.

35-44     (3) The average hourly wage that will be paid by the new business to

35-45  its employees in this state is at least 100 percent of the average statewide

35-46  hourly wage as established by the employment security division of the

35-47  department of employment, training and rehabilitation on July 1 of each

35-48  fiscal year and:

36-1         (I) The business will provide a health insurance plan for all

36-2  employees that includes an option for health insurance coverage for

36-3  dependents of the employees; and

36-4         (II) The cost to the business for the benefits the business provides

36-5  to its employees in this state will meet the minimum requirements for

36-6  benefits established by the commission by regulation pursuant to

36-7  subsection 9.

36-8    (e) Except as otherwise provided in NRS 361.0687, if the business is a

36-9  new business in a county or city whose population is less than 50,000, the

36-10  business meets at least two of the following requirements:

36-11     (1) The business will have 25 or more full-time employees on the

36-12  payroll of the business by the fourth quarter that it is in operation.

36-13     (2) Establishing the business will require the business to make a

36-14  capital investment of at least $250,000 in this state.

36-15     (3) The average hourly wage that will be paid by the new business to

36-16  its employees in this state is at least 100 percent of the average statewide

36-17  hourly wage as established by the employment security division of the

36-18  department of employment, training and rehabilitation on July 1 of each

36-19  fiscal year and:

36-20        (I) The business will provide a health insurance plan for all

36-21  employees that includes an option for health insurance coverage for

36-22  dependents of the employees; and

36-23        (II) The cost to the business for the benefits the business provides

36-24  to its employees in this state will meet the minimum requirements for

36-25  benefits established by the commission by regulation pursuant to

36-26  subsection 9.

36-27  (f) If the business is an existing business, the business meets at least two

36-28  of the following requirements:

36-29     (1) The business will increase the number of employees on its payroll

36-30  by 10 percent more than it employed in the immediately preceding fiscal

36-31  year or by six employees, whichever is greater.

36-32     (2) The business will expand by making a capital investment in this

36-33  state in an amount equal to at least 20 percent of the value of the tangible

36-34  property possessed by the business in the immediately preceding fiscal

36-35  year. The determination of the value of the tangible property possessed by

36-36  the business in the immediately preceding fiscal year must be made by the:

36-37        (I) County assessor of the county in which the business will

36-38  expand, if the business is locally assessed; or

36-39        (II) Department, if the business is centrally assessed.

36-40     (3) The average hourly wage that will be paid by the existing

36-41  business to its new employees in this state is at least 100 percent of the

36-42  average statewide hourly wage as established by the employment security

36-43  division of the department of employment, training and rehabilitation on

36-44  July 1 of each fiscal year and:

36-45        (I) The business will provide a health insurance plan for all new

36-46  employees that includes an option for health insurance coverage for

36-47  dependents of the employees; and

36-48        (II) The cost to the business for the benefits the business provides

36-49  to its new employees in this state will meet the minimum requirements for

37-1  benefits established by the commission by regulation pursuant to

37-2  subsection 9.

37-3    3.  Notwithstanding the provisions of subsection 2, the commission on

37-4  economic development may:

37-5    (a) Approve an application for a partial abatement by a business that

37-6  does not meet the requirements set forth in paragraph (d), (e) or (f) of

37-7  subsection 2;

37-8    (b) Make the requirements set forth in paragraph (d), (e) or (f) of

37-9  subsection 2 more stringent; or

37-10  (c) Add additional requirements that a business must meet to qualify for

37-11  a partial abatement,

37-12  if the commission determines that such action is necessary.

37-13  4.  If a person submits an application to the commission on economic

37-14  development pursuant to subsection 1, the commission shall provide notice

37-15  to the governing body of the county and the city or town, if any, in which

37-16  the person intends to locate or expand a business. The notice required

37-17  pursuant to this subsection must set forth the date, time and location of the

37-18  hearing at which the commission will consider the application.

37-19  5.  If the commission on economic development approves an

37-20  application for a partial abatement, the commission shall immediately

37-21  forward a certificate of eligibility for the abatement to:

37-22  (a) The department;

37-23  (b) The Nevada tax commission; and

37-24  (c) If the partial abatement is from the property tax imposed pursuant to

37-25  chapter 361 of NRS, the county treasurer.

37-26  6.  An applicant for a partial abatement pursuant to this section or an

37-27  existing business whose partial abatement is in effect shall, upon the

37-28  request of the executive director of the commission on economic

37-29  development, furnish the executive director with copies of all records

37-30  necessary to verify that the applicant meets the requirements of

37-31  subsection 2.

37-32  7.  If a business whose partial abatement has been approved pursuant to

37-33  this section and is in effect ceases:

37-34  (a) To meet the requirements set forth in subsection 2; or

37-35  (b) Operation before the time specified in the agreement described in

37-36  paragraph (b) of subsection 2,

37-37  the business shall repay to the department or, if the partial abatement was

37-38  from the property tax imposed pursuant to chapter 361 of NRS, to the

37-39  county treasurer, the amount of the exemption that was allowed pursuant to

37-40  this section before the failure of the business to comply unless the Nevada

37-41  tax commission determines that the business has substantially complied

37-42  with the requirements of this section. Except as otherwise provided in

37-43  NRS 360.232 and 360.320, the business shall, in addition to the amount of

37-44  the exemption required to be paid pursuant to this subsection, pay interest

37-45  on the amount due at the rate most recently established pursuant to

37-46  NRS 99.040 for each month, or portion thereof, from the last day of the

37-47  month following the period for which the payment would have been made

37-48  had the partial abatement not been approved until the date of payment of

37-49  the tax.

38-1    8.  A county treasurer:

38-2    (a) Shall deposit any money that he receives pursuant to subsection 7 in

38-3  one or more of the funds established by a local government of the county

38-4  pursuant to NRS [354.611,] 354.6113 or 354.6115; and

38-5    (b) May use the money deposited pursuant to paragraph (a) only for the

38-6  purposes authorized by NRS [354.611,] 354.6113 and 354.6115.

38-7    9.  The commission on economic development:

38-8    (a) Shall adopt regulations relating to:

38-9      (1) The minimum level of benefits that a business must provide to its

38-10  employees if the business is going to use benefits paid to employees as a

38-11  basis to qualify for a partial abatement; and

38-12     (2) The notice that must be provided pursuant to subsection 4.

38-13  (b) May adopt such other regulations as the commission on economic

38-14  development determines to be necessary to carry out the provisions of this

38-15  section.

38-16  10.  The Nevada tax commission:

38-17  (a) Shall adopt regulations regarding:

38-18     (1) The capital investment that a new business must make to meet the

38-19  requirement set forth in paragraph (d) or (e) of subsection 2; and

38-20     (2) Any security that a business is required to post to qualify for a

38-21  partial abatement pursuant to this section.

38-22  (b) May adopt such other regulations as the Nevada tax commission

38-23  determines to be necessary to carry out the provisions of this section.

38-24  11.  An applicant for an abatement who is aggrieved by a final decision

38-25  of the commission on economic development may petition for judicial

38-26  review in the manner provided in chapter 233B of NRS.

38-27  Sec. 59.  NRS 374A.020 is hereby amended to read as follows:

38-28  374A.020  1.  The collection of the tax imposed by NRS 374A.010

38-29  must be commenced on the first day of the first calendar quarter that begins

38-30  at least 30 days after the last condition in subsection 1 of NRS 374A.010 is

38-31  met.

38-32  2.  The tax must be administered, collected and distributed in the

38-33  manner set forth in chapter 374 of NRS.

38-34  3.  The board of trustees of the school district shall transfer the

38-35  proceeds of the tax imposed by NRS 374A.010 from the county school

38-36  district fund to the fund described in NRS [354.611 which] 354.6105, if the

38-37  fundhas been established by the board of trustees. [The] Any money

38-38  deposited in the fund described in NRS [354.611] 354.6105 pursuant to

38-39  this subsection must be accounted for separately in that fund and must only

38-40  be expended by the board of trustees for the cost of the extraordinary

38-41  maintenance, extraordinary repair and extraordinary improvement of

38-42  school facilities within the county.

38-43  Sec. 60.  NRS 387.3045 is hereby amended to read as follows:

38-44  387.3045  If the ending balance of the general fund of a school district

38-45  has declined for 3 consecutive years, the school district shall submit to the

38-46  committee on local government finance created pursuant to [NRS

38-47  266.0165] section 4 of this act a written explanation of the cause of the

38-48  decline.

 

39-1    Sec. 61.  NRS 555.215 is hereby amended to read as follows:

39-2    555.215  1.  Upon the preparation and approval of a budget in the

39-3  manner required by the Local Government Budget and Finance Act, the

39-4  board of county commissioners of each county having lands situated in the

39-5  district shall, by resolution, levy an assessment upon all real property in the

39-6  county which is in the weed control district.

39-7    2.  Every assessment so levied is a lien against the property assessed.

39-8    3.  Amounts collected in counties other than the county having the

39-9  larger or largest proportion of the area of the district must be paid over to

39-10  the board of county commissioners of that county for the use of the district.

39-11  4.  The county commissioners of that county may obtain medium-term

39-12  obligations pursuant to NRS 350.085 to 350.095, inclusive, of an amount

39-13  of money not to exceed the total amount of the assessment, to pay the

39-14  expenses of controlling the weeds in the weed control district. The loans

39-15  may be made only after the assessments are levied.

39-16  Sec. 62.  NRS 555.560 is hereby amended to read as follows:

39-17  555.560  1.  Upon the preparation and approval of a budget in the

39-18  manner required by the Local Government Budget and Finance Act, the

39-19  board of county commissioners shall, by resolution, levy an assessment

39-20  upon all real property in the rodent control district.

39-21  2.  Every assessment so levied shall be a lien against the property

39-22  assessed.

39-23  3.  The county commissioners may obtain short-term loans of an

39-24  amount of money not to exceed the total amount of such assessment, for

39-25  the purpose of paying the expenses of controlling the rodents in a rodent

39-26  control district. Such loans may be made only after such assessments are

39-27  levied.

39-28  Sec. 63.  Section 12 of chapter 227, Statutes of Nevada 1975, as

39-29  amended by chapter 351, Statutes of Nevada 1997, at page 1280, is hereby

39-30  amended to read as follows:

39-31           Sec. 12. 1.  The provisions of the Local Government Budget

39-32  and FinanceAct, NRS 354.470 to 354.626, inclusive, as now and

39-33  hereafter amended, apply to the Authority as a local government, and

39-34  the Authority shall, for purposes of that application, be deemed a

39-35  district other than a school district.

39-36           2.  The provisions of NRS 350.085 to 350.095, inclusive, apply to

39-37  the Authority.

39-38  Sec. 64.  Section 2.060 of chapter 470, Statutes of Nevada 1975, at

39-39  page 730 is hereby amended to read as follows:

39-40           Sec. 2.060  Powers of city council: Ordinances, resolutions and

39-41  orders.

39-42           1.  The city council may make and pass all ordinances, resolutions

39-43  and orders not repugnant to the Constitution of the United States or

39-44  the State of Nevada, or to the provisions of Nevada Revised Statutes

39-45  or of this charter, necessary for the municipal government and the

39-46  management of the affairs of the city, and for the execution of all the

39-47  powers vested in the city.

39-48           2.  When power is conferred upon the city council to do and

39-49  perform something, and the manner of exercising such power is not

39-50  specifically provided for, the city council may provide by ordinance

39-51  the manner and details necessary for the full exercise of such power.

39-52           3.  The city council may enforce ordinances by providing penalties

39-53  not to exceed those established by the legislature for misdemeanors.

39-54           4.  The city council shall have such powers, not in conflict with

39-55  the express or implied provisions of this charter, as are conferred upon

39-56  the governing bodies of cities by Nevada Revised Statutes.

39-57           5.  The city council shall annually adopt a budget pursuant to the

39-58  Local Government Budget and Finance Act.

39-59  Sec. 65.  Section 9 of chapter 474, Statutes of Nevada 1977, at page

39-60  970, as last amended by chapter 121, Statutes of Nevada 1991, at page 205,

39-61  is hereby amended to read as follows:

39-62           Sec. 9 1.  Except as otherwise provided in subsection 2, the

39-63  board shall comply with the provisions of the Local Government

39-64  Purchasing Act and the Local Government Budget and Finance Act.

39-65           2.  Except as otherwise provided in section 10.2 of this act, any

39-66  concession agreement entered into by the authority in conformity with

39-67  the provisions of that section need not conform to the requirements of

39-68  the Local Government Purchasing Act.

39-69  Sec. 66. Section 8 of chapter 844, Statutes of Nevada 1989, at page

39-70  2026 is hereby amended to read as follows:

39-71           Sec. 8. The board shall comply with the provisions of the Nevada

39-72  Ethics in Government Law, NRS 241.020, the Local Government

39-73  Purchasing Act and the Local Government Budget and Finance Act.

39-74  Sec. 67.  Section 19 of chapter 572, Statutes of Nevada 1997, at page

39-75  2803 is hereby amended to read as follows:

39-76           Sec. 19. The provisions of [subsection 1 of] NRS 354.599 do not

39-77  apply to any additional expenses of a local government that are related

39-78  to the provisions of this act.

39-79  Sec. 68.  NRS 266.0165, 354.478, 354.480, 354.481, 354.488,

39-80  354.514, 354.522, 354.540, 354.542, 354.551, 354.558, 354.564, 354.566,

39-81  354.576, 354.580, 354.588, 354.595, 354.5984, 354.59871, 354.59872,

39-82  354.606, 354.610, 354.6107, 354.611, 354.6145, 354.615, 354.621 and

39-83  354.622 are hereby repealed.

39-84  Sec. 69.  1.  This section and sections 1 to 9, inclusive, 11 to 28,

39-85  inclusive, 30 to 43, inclusive, 45 to 49, inclusive, and 51 to 68, inclusive,

39-86  of this act become effective on July 1, 2001.

39-87  2.  Sections 10, 29, 44 and 50 of this act become effective at 12:01 a.m.

39-88  on July 1, 2001.

 

39-89  LEADLINES OF REPEALED SECTIONS

 

39-90  266.0165  Committee on local government finance: Creation;

39-91   appointment and terms of members; vacancies.

39-92  354.478  “Account” defined.

39-93  354.480  “Accumulated depreciation” defined.

39-94  354.481  “Activity” defined.

39-95  354.488  “Balance sheet” defined.

39-96  354.514  “Depreciation” defined.

39-97  354.522  “Expenditure adjustment” defined.

39-98  354.540  “Interfund loan” defined.

39-99  354.542  “Interfund transfer” defined.

39-100     354.551  “Object” defined.

39-101     354.558  “Reimbursement” defined.

39-102     354.564  “Revenue adjustment” defined.

39-103     354.566  “Securities” defined.

39-104     354.576  “Taxes” defined.

39-105     354.580  “Trust or agency fund” defined.

39-106     354.588  Powers and duties of governing bodies, officers and

39-107   employees of local governments.

39-108     354.595  Copy of documents concerning budget to be delivered to

39-109   legislative counsel bureau.

39-110     354.5984  Reduction of apportionment or distribution of general

39-111   road fund; intergovernmental and intragovernmental transfers and

39-112   grants and levy of taxes ad valorem.

39-113     354.59871  Nevada tax commission authorized to establish rate for

39-114   levy of taxes ad valorem to provide aid to indigent persons.

39-115     354.59872  Increase in allowed revenue from taxes ad valorem of

39-116   local government that loses revenue by incorporation of new city.

39-117     354.606  Transfer of budget appropriations between accounts.

39-118     354.610  Enterprise fund.

39-119     354.6107  Fund for extraordinary maintenance, repair or

39-120   improvement of capital projects in county whose population is less

39-121   than 100,000.

39-122     354.611  Fund for extraordinary maintenance, repair or

39-123   improvement of local governmental facilities.

39-124     354.6145  Establishment of internal service fund for contributions

39-125   to provide group life, accident and health benefits.

39-126     354.615  Procedure for augmenting budget.

39-127     354.621  Limitation on use of ending balance of general or special

39-128   revenue fund.

39-129     354.622  System of accounting.

 

39-130  H