SB33 - Revises provisions relating to state financial administration. (BDR 18-279)

S.B. 33 - *SB33* SENATE BILL NO. 33–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE GOVERNOR) PREFILED NOVEMBER 14, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to state financial administration. (BDR 18-279) 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. AN ACT relating to state financial administration; renaming the position of Chief of the Budget Division of the Office of Finance as the Administrator of the Budget Division and transferring the qualifications, powers and duties of that position to the Director of the Office of Finance; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law creates the Office of Finance in the Office of the Governor. The 1 Office of Finance consists of the Director and two divisions, the Budget Division 2 and the Division of Internal Audits. (NRS 223.400) Under existing law, the 3 Director is responsible, in part, for the administration, through the Budget Division, 4 of the State Budget Act. (NRS 223.420) Existing law: (1) requires the Director to 5 appoint a Chief of the Budget Division; and (2) sets forth certain powers and duties 6 of the Chief relating to the State Budget Act and other provisions of existing law. 7 (NRS 218G.400, 223.430, 231.3729, 242.221, 244.339, 285.030, 286.282, 353.150- 8 353.246, 353.263, 353.325, 353.331, 353.335, 353.500-353.630, 358.020, 9 381.0033, 388.700, 439.630, 501.337, 501.3585, 701A.110, 701A.360, 701A.375) 10 Existing law also prescribes the qualifications of the Chief and authorizes the 11 Director of the Office of Finance to serve in the position of Chief if the Director 12 possesses those qualifications. (NRS 223.430, 353.175) 13 Section 2 of this bill renames the position of Chief of the Budget Division as 14 the Administrator of the Budget Division. Section 3 of this bill makes a conforming 15 change as a result of renaming the position. Sections 4-46 of this bill transfer the 16 qualifications of the Chief and the powers and duties of the Chief in the State 17 Budget Act and other existing law to the Director of the Office of Finance. 18 – 2 – - *SB33* Sections 1 and 47 of this bill make conforming changes as a result of the transfer 19 of the duties of the Chief to the Director. 20 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 223.420 is hereby amended to read as follows: 1 223.420 The Director of the Office of Finance is responsible 2 for the administration, through the divisions of the Office, of the 3 provisions of NRS 235.005 to 235.016, inclusive, 353.150 to 4 353.246, inclusive, except NRS 353.226 to 353.229, inclusive, and 5 353A.031 to 353A.100, inclusive, and all other provisions of law 6 relating to the functions of the divisions of the Office. 7 Sec. 2. NRS 223.430 is hereby amended to read as follows: 8 223.430 1. The Director of the Office of Finance shall 9 appoint [a Chief] an Administrator of the Budget Division . [, who] 10 2. The Administrator of the Budget Division serves at the 11 pleasure of the Director and is in the unclassified service of the State 12 . [, or may serve in this position if the Director has the qualifications 13 required by NRS 353.175.] 14 Sec. 3. NRS 223.450 is hereby amended to read as follows: 15 223.450 1. Unless federal law or regulation otherwise 16 requires, the [Chief] Administrator of the Budget Division and the 17 Administrator of the Division of Internal Audits may appoint a 18 Deputy and a Chief Assistant in the unclassified service of the State, 19 who shall not engage in any other gainful employment or 20 occupation except as otherwise provided in NRS 284.143. 21 2. Except as otherwise provided in subsection 1 and NRS 22 223.410, 223.430 and 223.440, employees of the Office of Finance 23 are in the classified service of the State. 24 Sec. 4. NRS 231.3729 is hereby amended to read as follows: 25 231.3729 1. If the Office of Economic Development 26 approves an application for a certificate of eligibility for matching 27 funds submitted pursuant to paragraph (a) of subsection 2 of NRS 28 231.3725, the Office shall immediately forward a copy of the 29 certificate of eligibility which identifies the amount of the award to: 30 (a) The lead participant in the qualified project; 31 (b) The Director of the Legislative Counsel Bureau; 32 (c) The [Chief of the Budget Division] Director of the Office of 33 Finance in the Office of the Governor; and 34 (d) The State Treasurer. 35 2. A qualified project may be approved for a certificate of 36 eligibility for matching funds pursuant to subsection 1 in an amount 37 not to exceed $100,000,000. 38 – 3 – - *SB33* 3. Except as otherwise provided in NRS 231.3711 to 231.3737, 1 inclusive, the contribution from the matching funds awarded to the 2 qualified project pursuant to subsection 1 must be proportional in 3 terms of amount, contemporaneous in terms of timing and similar in 4 terms of risk profile to the contribution to the cost of the 5 development and construction of the qualified project by the lead 6 participant, and: 7 (a) The lead participant shall pay the initial $25,000,000 of the 8 costs of the development and construction of the qualified project. 9 (b) Payments after the initial payment required by paragraph (a) 10 must be pro rata, based on the percentage of the total cost of the 11 qualified project described in paragraph (c) of subsection 3 of NRS 12 231.3725 to be paid from approved matching funds and those to be 13 paid by all other sources of project funding as set forth in an 14 application approved by the Office pursuant to NRS 231.3725, 15 except that such pro rata allocation must be adjusted such that the 16 matching funds are used to pay the last $10,000,000 in project costs. 17 (c) The procedure for making monthly draws for the cost of the 18 qualified project will be delineated in a trust agreement to be entered 19 into by the Office and the lead participant, which will ensure that no 20 money derived from the matching funds awarded pursuant to 21 subsection 1 are expended unless money of the lead participant is 22 previously or simultaneously expended, except for the initial 23 payment described in paragraph (a) and the last payment described 24 in paragraph (b). 25 Sec. 5. NRS 218G.400 is hereby amended to read as follows: 26 218G.400 1. Except as otherwise provided in subsection 2, 27 each board created by the provisions of NRS 590.485 and chapters 28 623 to 625A, inclusive, 628, 630 to 644A, inclusive, 648, 654 and 29 656 of NRS shall: 30 (a) If the revenue of the board from all sources is less than 31 $200,000 for any fiscal year and, if the board is a regulatory body 32 pursuant to NRS 622.060, the board has submitted to the Director of 33 the Legislative Counsel Bureau for each quarter of that fiscal year 34 the information required by NRS 622.100, prepare a balance sheet 35 for that fiscal year on the form provided by the Legislative Auditor 36 and file the balance sheet with the Legislative Auditor and the 37 [Chief of the Budget Division] Director of the Office of Finance on 38 or before December 1 following the end of that fiscal year. The 39 Legislative Auditor shall prepare and make available a form that 40 must be used by a board to prepare such a balance sheet. 41 (b) If the revenue of the board from all sources is $200,000 or 42 more for any fiscal year, or if the board is a regulatory body 43 pursuant to NRS 622.060 and has failed to submit to the Director of 44 the Legislative Counsel Bureau for each quarter of that fiscal year 45 – 4 – - *SB33* the information required by NRS 622.100, engage the services of a 1 certified public accountant or public accountant, or firm of either of 2 such accountants, to audit all its fiscal records for that fiscal year 3 and file a report of the audit with the Legislative Auditor and the 4 [Chief of the Budget Division] Director of the Office of Finance on 5 or before December 1 following the end of that fiscal year. 6 2. In lieu of preparing a balance sheet or having an audit 7 conducted for a single fiscal year, a board may engage the services 8 of a certified public accountant or public accountant, or firm of 9 either of such accountants, to audit all its fiscal records for a period 10 covering two successive fiscal years. If such an audit is conducted, 11 the board shall file the report of the audit with the Legislative 12 Auditor and the [Chief of the Budget Division] Director of the 13 Office of Finance on or before December 1 following the end of the 14 second fiscal year. 15 3. The cost of each audit conducted pursuant to subsection 1 or 16 2 must be paid by the board that is audited. Each such audit must be 17 conducted in accordance with generally accepted auditing standards, 18 and all financial statements must be prepared in accordance with 19 generally accepted principles of accounting for special revenue 20 funds. 21 4. Whether or not a board is required to have its fiscal records 22 audited pursuant to subsection 1 or 2, the Legislative Auditor shall 23 audit the fiscal records of any such board whenever directed to do so 24 by the Legislative Commission. When the Legislative Commission 25 directs such an audit, the Legislative Commission shall also 26 determine who is to pay the cost of the audit. 27 5. A person who is a state officer or employee of a board is 28 guilty of nonfeasance if the person: 29 (a) Is responsible for preparing a balance sheet or having an 30 audit conducted pursuant to this section or is responsible for 31 preparing or maintaining the fiscal records that are necessary to 32 prepare a balance sheet or have an audit conducted pursuant to this 33 section; and 34 (b) Knowingly fails to prepare the balance sheet or have the 35 audit conducted pursuant to this section or knowingly fails to 36 prepare or maintain the fiscal records that are necessary to prepare a 37 balance sheet or have an audit conducted pursuant to this section. 38 6. In addition to any other remedy or penalty, a person who is 39 guilty of nonfeasance pursuant to this section forfeits the person’s 40 state office or employment and may not be appointed to a state 41 office or position of state employment for a period of 2 years 42 following the forfeiture. The provisions of this subsection do not 43 apply to a state officer who may be removed from office only by 44 impeachment pursuant to Article 7 of the Nevada Constitution. 45 – 5 – - *SB33* Sec. 6. NRS 242.221 is hereby amended to read as follows: 1 242.221 1. All claims made pursuant to NRS 242.122 to 2 242.241, inclusive, must, when approved by the Office, be paid as 3 other claims against the State are paid. 4 2. If the State Controller finds that current claims against the 5 Fund for Information Services exceed the amount available in the 6 Fund to pay the claims, the State Controller may advance 7 temporarily from the State General Fund to the Fund the amount 8 required to pay the claims, but no more than 25 percent of the 9 revenue expected to be received in the current fiscal year from any 10 source authorized for the Fund. No amount may be transferred 11 unless requested by the [Chief of the Budget Division] Director of 12 the Office of Finance created by NRS 223.400. 13 Sec. 7. NRS 244.339 is hereby amended to read as follows: 14 244.339 1. An owner of real property who intends to allow 15 the real property, including, without limitation, land or 16 improvements on the real property, to be used as a community 17 garden or urban farm may submit a request to the board of county 18 commissioners of the county in which the real property is located 19 for a partial abatement of the ad valorem taxes imposed pursuant to 20 chapter 361 of NRS for the parcel on which the community garden 21 or urban farm is located. If the real property is located in a city, the 22 application must include, without limitation, proof that the 23 governing body of the city has issued any necessary approvals for 24 the use of the real property as a community garden or urban farm. 25 2. If the board of county commissioners receives an application 26 pursuant to subsection 1, the board must provide notification of the 27 application to: 28 (a) The [Chief of the Budget Division] Director of the Office of 29 Finance; 30 (b) The county assessor; 31 (c) The county treasurer; and 32 (d) The governing body of the city where the property is located, 33 if applicable. 34 3. The board of county commissioners shall hold a public 35 hearing on the application not less than 30 days after providing 36 notification of the application pursuant to subsection 2 and may 37 approve the application after the public hearing if: 38 (a) The applicant demonstrates that the property is suitable for 39 use as a community garden or urban farm; 40 (b) The applicant and the person operating the community 41 garden or urban farm are willing and able to use the real property as 42 a community garden or urban farm for a period of not less than 5 43 years; and 44 – 6 – - *SB33* (c) The applicant enters into an agreement requiring the 1 operation of the community garden or urban farm on the property 2 for not less than 5 years beginning on the date of approval of the 3 application. 4 4. If the board of county commissioners approves an 5 application pursuant to this section, the applicant shall receive a 6 partial abatement of the ad valorem taxes imposed pursuant to 7 chapter 361 of NRS that is equal to 10 percent of the ad valorem 8 taxes otherwise due for the parcel on which the community garden 9 or urban farm is located for a period of 5 years, beginning on the 10 July 1 of the fiscal year immediately following the date of approval 11 of the application. 12 5. If the owner of real property receives a partial abatement of 13 ad valorem taxes pursuant to this section, the owner shall record the 14 approval of the abatement with the county recorder to ensure 15 subsequent buyers have notice of the terms of the partial abatement. 16 6. If the real property of the person receiving th [Text truncated for display. Full text available on LegiScan.]