Senate Bill No. 492–Committee on Finance

 

March 26, 2001

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Referred to Committee on Finance

 

SUMMARY—Clarifies provisions governing transfers of money to fund to stabilize the operation of the state government. (BDR 31‑1476)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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

 

AN ACT relating to state financial administration; clarifying the provisions governing the transfer of money to the fund to stabilize the operation of the state government; 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. NRS 353.288 is hereby amended to read as follows:

1-2    353.288  1.  The fund to stabilize the operation of the state

1-3  government is hereby created as a special revenue fund. Except as

1-4  otherwise provided in subsections 2 and 3, each year after the close of the

1-5  fiscal year and before the issuance of the controller’s annual report the

1-6  state controller shall deposit to the credit of the fund [two-fifths of any

1-7  revenue in the state general fund collected by the state for general,

1-8  unrestricted uses, and not for special purposes, in excess of the amount

1-9  necessary to:

1-10    (a) Pay all appropriations made for the support of the state government

1-11  for the fiscal year in which that revenue will be deposited in the fund; and

1-12    (b) Attain the reserve required by NRS 353.213.] 40 percent of the

1-13  unrestricted balance of the state general fund, as of the close of the fiscal

1-14  year, which remains after subtracting an amount equal to 10 percent of

1-15  all appropriations made from the state general fund during that year for

1-16  the operation of all departments, institutions and agencies of state

1-17  government and for the funding of schools.

1-18    2.  The balance in the fund must not exceed 10 percent of the total of

1-19  all appropriations from the state general fund for the operation of all

1-20  departments, institutions and agencies of the state government and for the

1-21  funding of schools and authorized expenditures from the state general fund

1-22  for the regulation of gaming for the fiscal year in which that revenue will

1-23  be deposited in the fund.

2-1    3.  Except as otherwise provided in this subsection and NRS 353.2735,

2-2  beginning with the fiscal year that begins on July 1, 1999, the state

2-3  controller shall, at the end of each quarter of a fiscal year, transfer from the

2-4  state general fund to the disaster relief fund created pursuant to NRS

2-5  353.2735 an amount equal to one-half of the interest earned on money in

2-6  the fund to stabilize the operation of state government during the previous

2-7  quarter. The state controller shall not transfer more than $500,000 for any

2-8  quarter pursuant to this subsection.

2-9    4.  Money from the fund to stabilize the operation of the state

2-10  government may be appropriated only:

2-11    (a) If the total actual revenue of the state falls short by 5 percent or

2-12  more of the total anticipated revenue for the biennium in which the

2-13  appropriation is made; or

2-14    (b) If the legislature and the governor declare that a fiscal emergency

2-15  exists.

2-16    Sec. 2.  The amendatory provisions of section 1 of this act:

2-17    1.  Are intended to clarify the original intent of the legislature when it

2-18  enacted and subsequently amended NRS 353.288; and

2-19    2.  Apply retroactively to the deposit required for fiscal year 1999-2000.

2-20    Sec. 3.  This act becomes effective upon passage and approval.

 

2-21  H