AB35

Assembly Bill No. 35–Committee on Elections,
Procedures, and Ethics

(On Behalf of the Legislative Committee on Local Government Taxes and Finance)

Prefiled January 30, 2003

____________

Referred to Committee on Elections, Procedures, and Ethics

SUMMARY—Makes various changes concerning Legislative Committee for Local Government Taxes and Finance. (BDR 17‑631)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State: No.

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 the State Legislature; changing the membership of the Advisory Committee of the Legislative Committee for Local Government Taxes and Finance; eliminating the subcommittee of the Legislative Committee appointed to conduct a study of the cost to the counties and incorporated cities in this state of maintaining highways, streets and roads; 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 218.53881 is hereby amended to read as

1-2 follows:

1-3 218.53881 1. There is hereby established a Legislative

1-4 Committee for Local Government Taxes and Finance consisting of:

1-5 (a) Two members appointed by the Majority Leader of the

1-6 Senate from the membership of the Senate Standing Committee on

1-7 Government Affairs during the immediately preceding session of

1-8 the Legislature;

2-1 (b) Two members appointed by the Majority Leader of the

2-2 Senate from the membership of the Senate Standing Committee on

2-3 Taxation during the immediately preceding session of the

2-4 Legislature;

2-5 (c) Two members appointed by the Speaker of the Assembly

2-6 from the membership of the Assembly Standing Committee on

2-7 Government Affairs during the immediately preceding session of

2-8 the Legislature; and

2-9 (d) Two members appointed by the Speaker of the Assembly

2-10 from the membership of the Assembly Standing Committee on

2-11 Taxation during the immediately preceding session of the

2-12 Legislature.

2-13 2. The Committee shall consult with an Advisory Committee

2-14 consisting of the Executive Director of the Department of Taxation

2-15 and 10 members who are representative of various geographical

2-16 areas of the State and are appointed for terms of 2 years

2-17 commencing on July 1 of each odd-numbered year as follows:

2-18 (a) One member of the Committee on Local Government

2-19 Finance created pursuant to NRS 354.105 appointed by the Nevada

2-20 League of Cities;

2-21 (b) One member of the Committee on Local Government

2-22 Finance created pursuant to NRS 354.105 appointed by the Nevada

2-23 Association of Counties;

2-24 (c) One member of the Committee on Local Government

2-25 Finance created pursuant to NRS 354.105 appointed by the Nevada

2-26 School Trustees Association;

2-27 (d) Three members involved in the government of a county

2-28 appointed by the Nevada Association of Counties;

2-29 (e) Three members involved in the government of an

2-30 incorporated city appointed by the Nevada League of Cities; and

2-31 (f) One member who [is a member of] represents a board of

2-32 trustees for a general improvement district appointed by the

2-33 Legislative Commission.

2-34 The members of the Advisory Committee are nonvoting members of

2-35 the Committee. When meeting as the Advisory Committee, the

2-36 members shall comply with the provisions of chapter 241 of NRS.

2-37 3. The legislative members of the Committee shall elect a

2-38 Chairman from one house of the Legislature and a Vice Chairman

2-39 from the other house. Each Chairman and Vice Chairman holds

2-40 office for a term of 2 years commencing on July 1 of each odd-

2-41 numbered year.

2-42 4. Any member of the Committee who is not a candidate for

2-43 reelection or who is defeated for reelection continues to serve until

2-44 the next session of the Legislature convenes.

3-1 5. Vacancies on the Committee must be filled in the same

3-2 manner as original appointments.

3-3 6. The Committee shall report annually to the Legislative

3-4 Commission concerning its activities and any recommendations.

3-5 Sec. 2. NRS 218.53883 is hereby amended to read as follows:

3-6 218.53883 1. The Committee shall:

3-7 (a) Review the laws relating to the distribution of revenue

3-8 generated by state and local taxes. In conducting the review, the

3-9 Committee may consider the purposes for which the various state

3-10 and local taxes were imposed, the actual use of the revenue

3-11 collected from the various state and local taxes and any relief to the

3-12 taxpayers from the burden of the various state and local taxes that

3-13 may result from any possible recommendations of the Committee.

3-14 (b) Study whether removing the authority of the Board of

3-15 County Commissioners of Washoe County to impose a certain

3-16 additional governmental services tax is a prudent act which is in the

3-17 best interests of this state.

3-18 2. In conducting its review of the laws relating to the

3-19 distribution of revenue generated by state and local taxes, the

3-20 Committee may review:

3-21 (a) The distribution of the revenue from:

3-22 (1) The local school support tax imposed by chapter 374 of

3-23 NRS;

3-24 (2) The tax on aviation fuel and motor vehicle fuel imposed

3-25 by or pursuant to chapter 365 of NRS;

3-26 (3) The tax on intoxicating liquor imposed by chapter 369 of

3-27 NRS;

3-28 (4) The tax on fuel imposed pursuant to chapter 373 of NRS;

3-29 (5) The tax on tobacco imposed by chapter 370 of NRS;

3-30 (6) The governmental services tax imposed by or pursuant to

3-31 chapter 371 of NRS;

3-32 (7) The tax imposed on gaming licensees by or pursuant to

3-33 chapter 463 of NRS;

3-34 (8) Property taxes imposed pursuant to chapter 361 of NRS;

3-35 (9) The tax on the transfer of real property imposed by or

3-36 pursuant to chapter 375 of NRS; and

3-37 (10) Any other state or local tax.

3-38 (b) The proper crediting of gasoline tax revenue if the collection

3-39 is moved to the terminal rack level.

3-40 3. The Committee may:

3-41 (a) Conduct investigations and hold hearings in connection with

3-42 its review and study;

3-43 (b) [Contract with one or more consultants to obtain technical

3-44 advice concerning the study conducted pursuant to NRS 218.53884;

4-1 (c)] Apply for any available grants and accept any gifts, grants

4-2 or donations and use any such gifts, grants or donations to aid the

4-3 Committee in carrying out its duties pursuant to this chapter;

4-4 [(d)] (c) Direct the Legislative Counsel Bureau to assist in its

4-5 research, investigations, review and study; and

4-6 [(e)] (d) Recommend to the Legislature, as a result of its review

4-7 and study, any appropriate legislation.

4-8 Sec. 3. NRS 365.550 is hereby amended to read as follows:

4-9 365.550 1. The receipts of the tax levied pursuant to NRS

4-10 365.180 must be allocated monthly by the Department to the

4-11 counties using the following formula:

4-12 (a) Determine the average monthly amount each county received

4-13 in the fiscal year ending on June 30, 2001, and allocate to each

4-14 county that amount, or if the total amount to be allocated is less than

4-15 that amount, allocate to each county a percentage of the total

4-16 amount to be allocated that is equal to the percentage of the total

4-17 amount allocated to that county in the fiscal year ending on June 30,

4-18 2001;

4-19 (b) Determine for each county an amount from the total amount

4-20 to be allocated using the following formula:

4-21 (1) Two-thirds in proportion to population; and

4-22 (2) One-third in proportion to road mileage and street

4-23 mileage of improved roads or streets maintained by the county or an

4-24 incorporated city located within the county,

4-25 and compare that amount to the amount allocated to the county

4-26 pursuant to paragraph (a);

4-27 (c) Identify each county for which the amount determined

4-28 pursuant to paragraph (b) is greater than the amount allocated to the

4-29 county pursuant to paragraph (a); and

4-30 (d) Allocate to any county which is identified pursuant to

4-31 paragraph (c), using the formula set forth in paragraph (b), any

4-32 amount from the tax levied pursuant to NRS 365.180 that remains

4-33 after the allocation required pursuant to paragraph (a).

4-34 2. Within 10 calendar days after June 1 of each fiscal year, the

4-35 Department shall:

4-36 (a) Project the total amount that each county will be allocated

4-37 pursuant to subsection 1 for the current fiscal year.

4-38 (b) If the total amount allocated to all the counties will not

4-39 exceed the total amount that was received by all the counties for the

4-40 fiscal year ending on June 30, 2001, adjust the final monthly

4-41 allocation to be made to each county so that each county is allocated

4-42 a percentage of the total amount to be allocated that is equal to the

4-43 percentage of the total amount allocated to that county in the fiscal

4-44 year ending on June 30, 2001.

5-1 (c) If a county receives an allocation pursuant to paragraph (d)

5-2 of subsection 1, determine whether the total monthly allocations

5-3 projected to be made to that county pursuant to subsection 1 for the

5-4 current fiscal year exceed the total amount the county received in

5-5 the fiscal year ending on June 30, 2001. If the total monthly

5-6 allocations projected to be made to the county do not exceed the

5-7 total amount the county received in the fiscal year ending on

5-8 June 30, 2001, the Department shall adjust the final monthly

5-9 allocation to be made to the county for the current fiscal year so that

5-10 the total amount allocated to the county for the current fiscal year

5-11 equals the total amount the county received in the fiscal year ending

5-12 on June 30, 2001.

5-13 3. Of the money allocated to each county pursuant to the

5-14 provisions of subsections 1 and 2:

5-15 (a) An amount equal to that part of the allocation which

5-16 represents 1.25 cents of the tax per gallon must be used exclusively

5-17 for the service and redemption of revenue bonds issued pursuant to

5-18 chapter 373 of NRS, for the construction, maintenance and repair of

5-19 county roads, and for the purchase of equipment for that

5-20 construction, maintenance and repair, under the direction of the

5-21 boards of county commissioners of the several counties, and must

5-22 not be used to defray expenses of administration; and

5-23 (b) An amount equal to that part of the allocation which

5-24 represents 2.35 cents of the tax per gallon must be allocated to the

5-25 county, if there are no incorporated cities in the county, or to the

5-26 county and any incorporated cities in the county, if there is at least

5-27 one incorporated city in the county, pursuant to the following

5-28 formula:

5-29 (1) One-fourth in proportion to total area.

5-30 (2) One-fourth in proportion to population.

5-31 (3) One-fourth in proportion to road mileage and street

5-32 mileage of nonfederal aid primary roads.

5-33 (4) One-fourth in proportion to vehicle miles of travel on

5-34 nonfederal aid primary roads.

5-35 For the purpose of applying the formula, the area of the county

5-36 excludes the area included in any incorporated city.

5-37 4. The amount allocated to the counties and incorporated

5-38 cities pursuant to subsections 1, 2 and 3 must be remitted monthly.

5-39 The State Controller shall draw his warrants payable to the county

5-40 treasurer of each of the several counties and the city treasurer of

5-41 each of the several incorporated cities, as applicable, and the State

5-42 Treasurer shall pay the warrants out of the proceeds of the tax levied

5-43 pursuant to NRS 365.180.

5-44 5. The formula computations must be made as of July 1 of each

5-45 year by the Department, based on estimates which must be furnished

6-1 by the Department of Transportation and, if applicable, any

6-2 adjustments to the estimates determined to be appropriate by the

6-3 Committee pursuant to subsection 9. Except as otherwise provided

6-4 in subsection 9, the determination made by the Department is

6-5 conclusive.

6-6 6. The Department of Transportation shall complete:

6-7 (a) The estimates of the total mileage of improved roads or

6-8 streets maintained by each county and incorporated city on or before

6-9 August 31 of each year.

6-10 (b) A physical audit of the information submitted by each

6-11 county and incorporated city pursuant to subsection 7 at least once

6-12 every 10 years.

6-13 7. Each county and incorporated city shall, not later than

6-14 March 1 of each year, submit a list to the Department of

6-15 Transportation setting forth:

6-16 (a) Each improved road or street that is maintained by the

6-17 county or city; and

6-18 (b) The beginning and ending points and the total mileage of

6-19 each of those improved roads or streets.

6-20 Each county and incorporated city shall, at least 10 days before the

6-21 list is submitted to the Department of Transportation, hold a public

6-22 hearing to identify and determine the improved roads and streets

6-23 maintained by the county or city.

6-24 8. If a county or incorporated city does not agree with the

6-25 estimates prepared by the Department of Transportation pursuant to

6-26 subsection 6, the county or incorporated city may request that the

6-27 [subcommittee] Advisory Committee examine the estimates and

6-28 recommend an adjustment to the estimates. Such a request must be

6-29 submitted to the [subcommittee] Advisory Committee not later than

6-30 October 15.

6-31 9. The [subcommittee] Advisory Committee shall review any

6-32 request it receives pursuant to subsection 8 and report to the

6-33 Committee its findings and any recommendations for an adjustment

6-34 to the estimates it determines is appropriate. The Committee shall

6-35 hold a public hearing and determine whether an adjustment to the

6-36 estimates is appropriate on or before December 31 of the year it

6-37 receives a request pursuant to subsection 8. Any determination made

6-38 by the Committee pursuant to this subsection is conclusive.

6-39 10. The [subcommittee] Advisory Committee shall monitor the

6-40 fiscal impact of the formula set forth in this section on counties and

6-41 incorporated cities and report regularly to the Committee concerning

6-42 its findings and recommendations regarding that fiscal impact.

6-43 11. As used in this section:

6-44 (a) “Advisory Committee” means the Advisory Committee

6-45 appointed pursuant to NRS 218.53881.

7-1 (b) “Committee” means the Legislative Committee for Local

7-2 Government Taxes and Finance established pursuant to

7-3 NRS 218.53881.

7-4 [(b)] (c) “Construction, maintenance and repair” includes the

7-5 acquisition, operation or use of any material, equipment or facility

7-6 that is used exclusively for the construction, maintenance or repair

7-7 of a county or city road and is necessary for the safe and efficient

7-8 use of that road, including, without limitation:

7-9 (1) Grades and regrades;

7-10 (2) Graveling, oiling, surfacing, macadamizing and paving;

7-11 (3) Sweeping, cleaning and sanding roads and removing

7-12 snow from a road;

7-13 (4) Crosswalks and sidewalks;

7-14 (5) Culverts, catch basins, drains, sewers and manholes;

7-15 (6) Inlets and outlets;

7-16 (7) Retaining walls, bridges, overpasses, underpasses,

7-17 tunnels and approaches;

7-18 (8) Artificial lights and lighting equipment, parkways,

7-19 control of vegetation and sprinkling facilities;

7-20 (9) Rights-of-way;

7-21 (10) Grade and traffic separators;

7-22 (11) Fences, cattle guards and other devices to control access

7-23 to a county or city road;

7-24 (12) Signs and devices for the control of traffic; and

7-25 (13) Facilities for personnel and the storage of equipment

7-26 used to construct, maintain or repair a county or city road.

7-27 [(c)] (d) “Improved road or street” means a road or street that is,

7-28 at least:

7-29 (1) Aligned and graded to allow reasonably convenient use

7-30 by a motor vehicle; and

7-31 (2) Drained sufficiently by a longitudinal and transverse

7-32 drainage system to prevent serious impairment of the road or street

7-33 by surface water.

7-34 [(d) “Subcommittee” means the subcommittee appointed

7-35 pursuant to NRS 218.53884.]

7-36 Sec. 4. NRS 218.53884 is hereby repealed.

7-37 Sec. 5. 1. This act becomes effective on July 1, 2003.

7-38 2. Section 3 of this act expires by limitation on June 30, 2005.

8-1 TEXT OF REPEALED SECTION

8-2 218.53884 Study of cost and practices for local maintenance

8-3 of highways, roads and streets: Appointment and duties of

8-4 subcommittee; payment of cost of study. [Effective through

8-5 July 1, 2005.]

8-6 1. The Committee shall appoint a subcommittee to conduct a

8-7 study of the cost to the counties and incorporated cities in this state

8-8 of maintaining highways, roads and streets and the practices of the

8-9 counties and incorporated cities in maintaining those highways,

8-10 roads and streets.

8-11 2. The subcommittee shall:

8-12 (a) Identify the practices and procedures used to maintain the

8-13 highways, roads and streets in this state or in any other state;

8-14 (b) Develop a database for a uniform system of maintenance of

8-15 highways, roads and streets by counties and incorporated cities;

8-16 (c) Identify procedures for developing that database;

8-17 (d) Develop computer software for use in support of those

8-18 procedures;

8-19 (e) Prepare a manual that sets forth those procedures; and

8-20 (f) Determine the average cost per mile of the highways, roads

8-21 and streets maintained by the counties and incorporated cities in

8-22 this state.

8-23 3. As soon as practicable after July 1, 1997, the Director of the

8-24 Legislative Counsel Bureau shall determine the cost of the study

8-25 and notify the Executive Director of the Department of Taxation of

8-26 the cost of the study. The cost of the study must not exceed

8-27 $250,000.

8-28 4. Upon receipt of the notice required pursuant to subsection 3,

8-29 the Executive Director shall prorate the cost of the study for each

8-30 month of the 1997-98 fiscal year among each of the counties and

8-31 cities in the proportion that the amount allocated to a county or city

8-32 each month pursuant to NRS 365.550 bears to the total amount

8-33 allocated to all the counties and cities for that month. After

8-34 determining each month the prorated cost for each county and city,

8-35 the Executive Director shall:

8-36 (a) Withhold the prorated amount from the amount allocated to

8-37 the county or city for that month pursuant to NRS 365.550; and

8-38 (b) Notify the State Controller, in writing, of the amount

8-39 withheld.

9-1 5. Upon receipt of the notice required pursuant to subsection 4,

9-2 the State Controller shall transfer the amount specified in the notice

9-3 to the Legislative Fund.

9-4 6. The money transferred to the Legislative Fund pursuant to

9-5 subsection 5 is hereby authorized for expenditure by the Director of

9-6 the Legislative Counsel Bureau to pay the cost of the study

9-7 conducted pursuant to this section.

9-8 7. The Committee shall, not later than November 1, 1998,

9-9 submit a report of the findings of the subcommittee, including any

9-10 recommended legislation, to the Director of the Legislative Counsel

9-11 Bureau for transmittal to the 70th Session of the Nevada

9-12 Legislature.

9-13 H