AB120 - Provides for the review of certain regulations by the Legislature. (BDR 18-882)

A.B. 120 - *AB120* ASSEMBLY BILL NO. 120–ASSEMBLYMEMBER KASAMA PREFILED JANUARY 24, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Provides for the review of certain regulations by the Legislature. (BDR 18-882) 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 administrative regulations; requiring an agency of the Executive Department of the State Government to determine the economic impact of a proposed regulation before conducting a workshop; prohibiting such an agency from adopting certain regulations that have certain estimated economic impact without legislative and executive approval; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes, under certain circumstances, an agency in the 1 Executive Department of the State Government to adopt reasonable regulations to 2 carry out the functions assigned to the agency by law. (NRS 233B.040) Section 2 3 of this bill prohibits such an agency from adopting a proposed regulation if the 4 agency determines that the economic impact of the proposed regulation is $500,000 5 or more. Section 1 of this bill requires such an agency, before conducting a 6 regulation workshop, to determine the estimated economic impact of the proposed 7 regulation, which includes the costs to implement the proposed regulation and any 8 costs reasonably expected to be incurred or passed on to businesses, local 9 governments and any other person. Section 1 provides that if the estimated 10 economic impact of the proposed regulation is $500,000 or more, the agency must 11 submit the proposed regulation as a legislative measure for the approval of the 12 Legislature and the Governor. 13 Section 3 of this bill makes conforming changes to authorize the Director of 14 the Office of Finance to request as a legislative measure necessary to implement the 15 budget proposed by the Governor and to provide for the fiscal management of the 16 State any proposed regulation which an agency has determined has an estimated 17 economic impact of $500,000 or more. 18 – 2 – - *AB120* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 233B of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. In addition to the requirements of NRS 233B.0608 and 3 233B.0609, before conducting a workshop for a proposed 4 regulation pursuant to NRS 233B.061, an agency shall determine 5 the estimated economic impact of the proposed regulation. The 6 economic impact must, without limitation: 7 (a) Be expressed as a single dollar figure. 8 (b) Include the costs for the agency to implement the proposed 9 regulation and the costs that are reasonably expected to be 10 incurred by or passed along to businesses, local governments and 11 any other person, which may include any economic burden 12 imposed on small businesses, as determined by the agency 13 pursuant to NRS 233B.0608. 14 2. If the agency determines that the estimated economic 15 impact of the proposed regulation is $500,000 or more, the 16 agency: 17 (a) May not adopt the proposed regulation; and 18 (b) Shall submit the proposed regulation to the Director of the 19 Office of Finance as a legislative measure for the approval of the 20 Legislature and the Governor pursuant to the provisions of 21 chapter 218D of NRS. 22 Sec. 2. NRS 233B.040 is hereby amended to read as follows: 23 233B.040 1. [To] Except as otherwise provided in 24 subsection 2 and section 1 of this act, to the extent authorized by 25 the statutes applicable to it, each agency may adopt reasonable 26 regulations to aid it in carrying out the functions assigned to it by 27 law and shall adopt such regulations as are necessary to the proper 28 execution of those functions. If adopted and filed in accordance with 29 the provisions of this chapter, the following regulations have the 30 force of law and must be enforced by all peace officers: 31 (a) The Nevada Administrative Code; and 32 (b) Temporary and emergency regulations. 33  In every instance, the power to adopt regulations to carry out a 34 particular function is limited by the terms of the grant of authority 35 pursuant to which the function was assigned. 36 2. An agency may not adopt a proposed regulation if the 37 agency determines, pursuant to section 1 of this act, that the 38 proposed regulation has an estimated economic impact of 39 $500,000 or more. 40 3. Every regulation adopted by an agency must include: 41 – 3 – - *AB120* (a) A citation of the authority pursuant to which it, or any part of 1 it, was adopted; and 2 (b) The address of the agency and, to the extent not elsewhere 3 provided in the regulation, a brief explanation of the procedures for 4 obtaining clarification of the regulation or relief from the strict 5 application of any of its terms, if the agency is authorized by a 6 specific statute to grant such relief, or otherwise dealing with the 7 agency in connection with the regulation. 8 [3.] 4. An agency may adopt by reference in a regulation 9 material published by another authority in book or pamphlet form if: 10 (a) It files one copy of the publication with the Secretary of 11 State and one copy with the State Library, Archives and Public 12 Records Administrator, and makes at least one copy available for 13 public inspection with its regulations; and 14 (b) The reference discloses the source and price for purchase of 15 the publication. 16  An agency shall not attempt to incorporate any other material in a 17 regulation by reference. 18 [4. An] 19 5. Except as otherwise provided in subsection 2 and section 1 20 of this act, an agency shall adopt a proposed regulation not later 21 than 2 years after the date on which the proposed regulation is 22 submitted to the Legislative Counsel pursuant to subsection 1 of 23 NRS 233B.063. If an agency does not adopt a proposed regulation 24 within the time prescribed by this subsection, the executive head of 25 the agency shall appear personally before the Legislative 26 Commission and explain why the proposed regulation has not been 27 adopted. 28 Sec. 3. NRS 218D.175 is hereby amended to read as follows: 29 218D.175 1. Except as otherwise provided in subsection 2, 30 for a regular session, the Governor or the Governor’s designated 31 representative may request the drafting of not more than 110 32 legislative measures which have been approved by the Governor or 33 the Governor’s designated representative on behalf of the officers, 34 agencies, boards, commissions, departments and other units of the 35 Executive Department. The requests must be submitted to the 36 Legislative Counsel on or before August 1 preceding the regular 37 session. 38 2. The Governor or the Governor’s designated representative 39 may request at any time before or during a regular session, without 40 limitation, the drafting of as many legislative measures as are 41 necessary to carry out the provisions of NRS 288.400 to 288.630, 42 inclusive. 43 3. The Director of the Office of Finance may request on or 44 before the 19th day of a regular session, without limitation, the 45 – 4 – - *AB120* drafting of as many legislative measures as are necessary to 1 implement the budget proposed by the Governor and to provide for 2 the fiscal management of the State [.] , including, without 3 limitation, the submission of a legislative measure to enact a 4 proposed regulation that an agency has determined, pursuant to 5 section 1 of this act, has an estimated economic impact of 6 $500,000 or more. In addition to the requests otherwise authorized 7 pursuant to this section, the Governor may request the drafting of 8 not more than 5 legislative measures on or before the 19th day of a 9 regular session to propose the Governor’s legislative agenda. 10 4. For a regular session, the following constitutional officers 11 may request, without the approval of the Governor or the 12 Governor’s designated representative, the drafting of not more than 13 the following numbers of legislative measures, which must be 14 submitted to the Legislative Counsel on or before September 1 15 preceding the regular session: 16 17 Lieutenant Governor ............................................................... 3 18 Secretary of State .................................................................... 6 19 State Treasurer ........................................................................ 5 20 State Controller ....................................................................... 5 21 Attorney General .................................................................. 20 22 23 5. In addition to the requests authorized by subsection 4, the 24 Secretary of State may request, without the approval of the 25 Governor or the Governor’s designated representative, the drafting 26 of not more than 2 legislative measures, which must be submitted to 27 the Legislative Counsel on or before December 31 preceding the 28 regular session. 29 6. Each request made pursuant to this section must be on a 30 form prescribed by the Legislative Counsel. The legislative 31 measures requested pursuant to subsections 1 and 4 must be prefiled 32 on or before the third Wednesday in November preceding the 33 regular session. A legislative measure that is not prefiled on or 34 before that day shall be deemed withdrawn. 35 Sec. 4. This act becomes effective on July 1, 2025. 36 H