Assembly Bill No. 324

Assembly Bill No. 324-Committee on Judiciary

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AN ACT relating to governmental financial administration; removing the provisions that require tort claims against this state or any of its agencies or political subdivisions to be filed within a certain period with the ex officio clerk of the state board of examiners; requiring those claims to be filed within a certain period with the attorney general; requiring the attorney general to approve, settle or deny the claims under certain circumstances; requiring the attorney general to investigate certain claims and submit a report of findings to the state board of examiners concerning those claims; removing the provisions that limit the amount of money that may be approved for payment by the state board of examiners or a political subdivision for certain claims or actions; and providing other matters properly relating thereto.

[Approved June 6, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1. NRS 41.036 is hereby amended to read as follows:
41.036 1. [No action may be brought under NRS 41.031 against the state or any agency or other political subdivision of the state without complying with the requirements of subsection 2 or 3.
2.] Each person who has a claim against the state or any of its agencies arising out of a tort must file his claim within 2 years [from] after the time the cause of action accrues with the [ex officio clerk of the state board of examiners. He shall within 10 days deliver a copy of the claim to the] attorney general . [, and refer the claim to the appropriate state agency, office or officer for investigation and report of findings to the board.
3.] 2. Each person who has a claim against any political subdivision of the state arising out of a tort must file his claim within 2 years [from] after the time the cause of action accrues with the governing body of that political subdivision.
[4.] 3. The filing of a claim in tort against the state or a political subdivision as required by subsections 1 and 2 [and 3] is not a condition precedent to bringing an action pursuant to NRS 41.031.
4. The attorney general shall, if authorized by regulations adopted by the state board of examiners pursuant to subsection 6, approve, settle or deny each claim that is:
(a) Filed pursuant to subsection 1; and
(b) Not required to be passed upon by the legislature.
5. If the attorney general is not authorized to approve, settle or deny a claim filed pursuant to subsection 1, the attorney general shall investigate the claim and submit a report of findings to the state board of examiners concerning that claim.
6. The state board of examiners shall adopt regulations that specify:
(a) The type of claim that the attorney general is required to approve, settle or deny pursuant to subsection 4; and
(b) The procedure to be used by the attorney general to approve, settle or deny that claim.
Sec. 2. NRS 41.037 is hereby amended to read as follows:
41.037 1. Upon receiving [the] a report of findings [as provided in subsection 2] pursuant to subsection 5 of NRS 41.036, the state board of examiners may [allow and] approve , settle or deny any claim or [settle any] action against the state, any of its agencies or any of its present or former officers, employees, immune contractors or legislators . [arising pursuant to NRS 41.031 to the extent of $50,000, plus interest computed from the date of judgment.]
2. Upon approval of [any] a claim by the state board of examiners [,] or the attorney general pursuant to subsection 4 of NRS 41.036:
(a) The state controller shall draw his warrant for the payment [thereof, and] of the claim; and
(b) The state treasurer shall pay the claim from [the] :
(1) The fund for insurance premiums ; or [from the]
(2) The reserve for statutory contingency account.
3. The governing body of any political subdivision whose authority to allow and approve claims is not otherwise fixed by statute may [allow and approve] :
(a) Approve, settle or deny any claim or [settle any] action against that subdivision or any of its present or former officers or employees [arising under NRS 41.031 to the extent of $50,000, plus interest computed from the date of entry of any judgment, and pay it] ; and
(b) Pay the claim or settlement from any money appropriated or lawfully available for that purpose.
Sec. 3. NRS 331.187 is hereby amended to read as follows:
331.1871. There is created in the state treasury the fund for insurance premiums as an internal service fund to be maintained for [the use of] use by the risk management division of the department of administration [.] and the attorney general.
2. Each state agency shall deposit in the fund [an] :
(a) An amount equal to its insurance premium and other charges for potential liability, as determined by the risk management division [.] ; and
(b) An amount for self-insured tort claims and expenses related to those claims, as determined by the attorney general.
3. Expenditures from the fund must be made by the risk management division [to] or the attorney general to an insurer for premiums of state agencies as they become due [and for claims which are obligations of the state pursuant to NRS 41.0349 and 41.037.] or for deductibles, self-insured property and tort claims or claims pursuant to NRS 41.0349. If the money in the fund is insufficient to pay [the] a tort claim, it must be paid from the reserve for statutory contingency account.
Sec. 4. NRS 353.190 is hereby amended to read as follows:
353.1901. In addition to his other duties, the chief is ex officio clerk of the state board of examiners. [He] Except as otherwise provided in subsection 4 of NRS 41.036, the chief shall:
(a) Assist the state board of examiners in the examination, classification and preparation for audit of all the claims required to be presented to the board.
(b) Conduct an effective check and preaudit of all [such] those claims before they are submitted to the board.
(c) Approve, on behalf of and when authorized by the board, claims against the state not required to be passed upon by the legislature.
2. The rules of procedure governing the duties of the chief [under] pursuant to this section [shall be promulgated] must be adopted by the state board of examiners.
3. The chief may delegate these duties to his deputy.
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