Senate Bill No. 60–Committee on Government
Affairs
Prefiled January 30, 2001
____________
Referred to Committee on Government Affairs
SUMMARY—Makes various changes concerning limitation
on building permit fees charged by local governments. (BDR 31‑232)
FISCAL NOTE: Effect on Local Government: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along
left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to local governments; restricting the amount a local government may place
in an enterprise fund for building permit fees; authorizing a local government
to maintain an amount of working capital in such an enterprise fund for certain
purposes; requiring a local government to reduce the building permit fees it
charges if an excess amount is maintained in such an enterprise fund for a
certain period; 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 354.59891
is hereby amended to read as follows:
1-2 354.59891 1. As used in this section:
1-3 (a) “Building permit”
means the official document or certificate
1-4 issued by the building officer of a local government which
authorizes the
1-5 construction of a structure.
1-6 (b) “Building permit basis”
means the combination of the rate and the
1-7 valuation method used to
calculate the total building permit fee.
1-8 [(b) “Building permit”
means the official document or certificate issued
1-9 by the building officer of a local government which authorizes the
1-10 construction of a structure.]
1-11 (c) “Building permit fee” means the total fees that must be paid
before
1-12 the issuance of a building
permit, including , without
limitation, all permit
1-13 fees and inspection fees.
The term does not include, without limitation, fees
1-14 relating to water, sewer or
other utilities, residential construction tax, tax
1-15 for the improvement of
transportation imposed pursuant to NRS 278.710,
1-16 any fee imposed pursuant to
NRS 244.386 or any amount expended to
1-17 change the zoning of the
property.
1-18 (d) “Current asset” means
any cash maintained in an enterprise fund
1-19 and any interest or other income earned on the money in the
enterprise
2-1 fund that is anticipated by a local government to be consumed or
2-2 converted into cash during the current fiscal year.
2-3 (e) “Current liability”
means any debt incurred by a local government
2-4 to provide the services associated with issuing building permits
that will
2-5 require payment within the current fiscal year.
2-6 (f) “Operating cost” means
the amount paid by a local government for
2-7 supplies, services, salaries, wages and employee benefits to
provide the
2-8 services associated with issuing building permits.
2-9 (g) “Working capital” means
the excess of current assets over current
2-10 liabilities.
2-11 2. Except as otherwise
provided in subsections 3 and 4, a local
2-12 government shall not
increase its building permit basis by more than an
2-13 amount equal to the building
permit basis on June 30, 1989, multiplied by a
2-14 percentage equal to the
percentage increase in the consumer price index
2-15 from January 1, 1988, to the
January 1 next preceding the fiscal year for
2-16 which the calculation is
made.
2-17 3. A local government may
submit an application to increase its
2-18 building permit basis by an
amount greater than otherwise allowable
2-19 pursuant to subsection 2 to
the Nevada tax commission. The Nevada tax
2-20 commission may allow the
increase only if it finds that:
2-21 (a) Emergency conditions exist which impair the ability of the
local
2-22 government to perform the
basic functions for which it was created; or
2-23 (b) The building permit basis of the local government is
substantially
2-24 below that of other local
governments in the state and the cost of providing
2-25 the services associated with
the issuance of building permits in the
2-26 previous fiscal year
exceeded the total revenue received from building
2-27 permit fees, excluding any
amount of residential construction tax collected,
2-28 for that fiscal year.
2-29 4. Upon application by a
local government, the Nevada tax
2-30 commission shall exempt the
local government from the limitation on the
2-31 increase of its building
permit basis if:
2-32 (a) The local government creates an enterprise fund exclusively for
2-33 building permit fees ; [for building permits;]
2-34 (b) Any interest or other income earned on the money in the
enterprise
2-35 fund is credited to the
fund; [and]
2-36 (c) Except as
otherwise provided in subsection 5, the local government
2-37 maintains a balance of unreserved working capital in the enterprise
fund
2-38 that does not exceed an amount equal to 6 months’ operating costs
for
2-39 the program for the issuance of building permits of the local
2-40 government; and
2-41 (d) The local government does
not use any of the money in the
2-42 enterprise fund for any
purpose other than the actual direct and indirect
2-43 costs of the program for the
issuance of building permits, including ,
2-44 without limitation, the cost
of checking plans, issuing permits, inspecting
2-45 buildings and administering
the program. The executive director of the
2-46 department of taxation shall
adopt regulations governing the permissible
2-47 expenditures from an
enterprise fund pursuant to this paragraph.
2-48 5. In addition to the balance of unreserved
working capital
2-49 authorized pursuant to subsection 4, the local government may
maintain
3-1 in an enterprise fund created pursuant to this section an amount of
3-2 working capital for the following purposes:
3-3 (a) An amount sufficient to
pay the debt service for 1 year on any debt
3-4 incurred by the local government to provide the services associated
with
3-5 issuing building permits;
3-6 (b) An amount that does not
exceed the total amount of expenditures
3-7 for the program for the issuance of building permits of the local
3-8 government set forth in the capital improvement plan of the local
3-9 government prepared pursuant to NRS 354.5945 for the current fiscal
3-10 year; and
3-11 (c) An amount that does not
exceed 4 percent of the annual operating
3-12 costs of the program for the issuance of building permits of the
local
3-13 government which must be used to pay for unanticipated capital
3-14 replacement.
3-15 6. Any amount in an enterprise fund created
pursuant to this section
3-16 that is designated for special use, including, without limitation,
prepaid
3-17 fees and any other amount subject to a contractual agreement, must
be
3-18 identified as a restricted asset and must not be included as a
current asset
3-19 in the calculation of working capital.
3-20 7. If a balance in excess of the amount
authorized pursuant to
3-21 subsections 4 and 5 is maintained in an enterprise fund created
pursuant
3-22 to this section for at least 2 consecutive fiscal years, the local
government
3-23 shall reduce the building permit fees it charges by an amount that
is
3-24 sufficient to ensure that the balance in the enterprise fund at the
close of
3-25 the fiscal year next following those 2 consecutive fiscal years
does not
3-26 exceed the amount authorized pursuant to subsections 4 and 5.
3-27 Sec. 2. NRS 354.6241 is hereby amended to read as follows:
3-28 354.6241 1. The statement required by paragraph (c) of
subsection 4
3-29 of NRS 354.624 must indicate
for each fund set forth in that paragraph:
3-30 (a) Whether the fund is being used in accordance with the
provisions of
3-31 this chapter.
3-32 (b) Whether the fund is being administered in accordance with
generally
3-33 accepted accounting
procedures.
3-34 (c) Whether the reserve in the fund is limited to an amount that is
3-35 reasonable and necessary to
carry out the purposes of the fund.
3-36 (d) The sources of revenues available for the fund during the
fiscal year,
3-37 including transfers from any
other funds.
3-38 (e) The statutory and regulatory requirements applicable to the
fund.
3-39 (f) The balance and retained earnings of the fund.
3-40 2. [To] Except as otherwise provided in NRS
354.59891, to the extent
3-41 that the reserve in any fund
set forth in paragraph (c) of subsection 4 of
3-42 NRS 354.624 exceeds the
amount that is reasonable and necessary to carry
3-43 out the purposes for which
the fund was created, the reserve may be
3-44 expended by the local
government pursuant to the provisions of chapter
3-45 288 of NRS.
3-46 Sec. 3. This act becomes effective on July 1, 2001.
3-47 H