Assembly Bill No. 561-Committee on Ways and Means

June 2, 1997
____________

Referred to Committee on Ways and Means

SUMMARY--Establishes commission to review compensation of legislators. (BDR 23-159)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Contains Appropriation not included in Executive Budget.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to public officers; establishing a commission to review the compensation of legislators; making an appropriation; and providing other matters properly relating thereto.

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

Section 1 Chapter 281 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.
Sec. 2. As used in sections 2 to 6, inclusive, of this act, unless the context otherwise requires, "commission" means the commission to review the compensation of legislators which is created pursuant to section 3 of this act.
Sec. 3. 1. The commission to review the compensation of legislators, consisting of five members appointed by the governor, is hereby created.
2. After the initial terms, the term of office of each member of the commission is 4 years. Members of the commission are eligible for reappointment.
3. The chief of the budget division of the department of administration must be notified of the appointment of each member.
4. The commission shall elect a chairman and such other officers as it deems necessary from among its members.
5. No more than three members of the commission may be from the same political party.
6. Members of the commission serve at the pleasure of the governor.
7. If a vacancy occurs in the membership of the commission, the governor shall appoint a person to fill the vacancy for the remainder of the unexpired term.
Sec. 4. 1. Each member of the commission is entitled to receive $80 for each day that he attends a regularly called meeting of the commission and, while engaged in the business of the commission, the per diem allowance and travel expenses provided for state employees generally.
2. The commission shall meet on or before May 15 of each even-numbered year and may meet at such further times as the chairman deems necessary.
3. The chief of the budget division of the department of administration shall provide the commission with administrative support.
Sec. 5. A majority of the members of the commission constitutes a quorum to transact business. The affirmative vote of three members is required to approve the recommendations of the commission regarding compensation.
Sec. 6. 1. The commission shall:
(a) Review the compensation paid to members of the legislature during and between legislative sessions.
(b) Hold public hearings to discuss the issues and receive public comment.
(c) Determine the level of compensation for legislators and submit that determination to the chief of the budget division pursuant to NRS 353.210.
2. In reviewing the issues of compensation required pursuant to subsection 1, the commission shall:
(a) Compare the current salaries of persons with similar qualifications who are employed by the State of Nevada and in the public sector;
(b) Determine the minimum salary required to attract and retain experienced and competent persons;
(c) Consider the average number of days that legislators serve during their term, the amount of work required of legislators when the legislature is not in regular session and the opportunities legislators have to earn additional income from outside sources; and
(d) Consider factors pertaining to the relative purchasing power of money, including, without limitation:
(1) The current rate of inflation;
(2) The average cost of living in this state; and
(3) Changes in the Consumer Price Index (All Items).
3. Any increase or decrease in the level of compensation for the office of state senator or assemblyman which has been determined by the commission and approved as part of the budget by the legislature is not effective until the completion of the term of office of the state senator or assemblyman serving at the time of the approval of such an increase or decrease.
Sec. 7. NRS 281.157 is hereby amended to read as follows:
281.157 As used in NRS 281.157 to 281.1575, inclusive, unless the context otherwise requires, "commission" means the commission to review the compensation of constitutional officers, [legislators,] supreme court justices, district judges and elected county officers which is created pursuant to NRS 281.1571.
Sec. 8. NRS 281.1571 is hereby amended to read as follows:
281.1571 1. There is hereby created a commission to review the compensation of constitutional officers, [legislators,] supreme court justices, district judges and elected county officers, consisting of nine members.
2. The members must be appointed by the following persons:
(a) One member by the speaker of the assembly.
(b) One member by the majority leader of the senate.
(c) One member by the minority leader of the assembly.
(d) One member by the minority leader of the senate.
(e) Two members by the chief justice of the supreme court.
(f) Three members by the governor.
3. The commission shall elect a chairman and such other officers as it deems necessary from among its members.
4. A current officer or employee of the state or any of its political subdivisions must not be appointed as a member of the commission.
5. The members appointed by the governor must be selected in the following manner:
(a) Two members, one from each congressional district, who do not belong to the same political party.
(b) One member from a list of three nominees submitted by the Nevada Association of Counties.
Sec. 9. NRS 281.1575 is hereby amended to read as follows:
281.1575 1. The commission shall:
(a) Review the compensation paid to constitutional officers, supreme court justices, district judges and elected county officers.
(b) [Review the compensation paid to the members of the legislature during and between legislative sessions.
(c)] Hold public hearings to discuss the issues and receive public comment.
[(d)] (c) If it determines that changes in legislation are required, request the assistance of the legislative counsel in the preparation of a bill draft on or before November 15 of each even-numbered year. Upon completion of the bill draft, the legislative counsel shall deliver the bill draft to the appropriate standing committee of the assembly or senate within the first week of the next regular legislative session for introduction.
2. In reviewing the issues of compensation required by subsection 1, the commission shall:
(a) Compare the current salaries of persons with similar qualifications who are employed by the State of Nevada and in the public sector; and
(b) Determine the minimum salary required to attract and retain experienced and competent persons . [; and
(c) Consider the average number of days that legislators serve during their term, the amount of work required of legislators when the legislature is not in regular session, and the opportunities they have to earn additional income from outside sources.]
3. The commission may recommend that any increase in the compensation of a county officer apply retroactively if not prohibited by law.
Sec. 10. NRS 218.210 is hereby amended to read as follows:
218.210 [1. Each senator elected before November 4, 1986, or appointed to succeed a senator elected before November 4, 1986, is entitled to receive as compensation $104 per day for each day of service:
(a) During any regular session, for the number of days the legislature is in session, or in adjournment for not more than 3 days, or the maximum number of days for which compensation for a regular session is permitted by the constitution, whichever is smaller; and
(b) During any special session, for the number of days the legislature is in session or the maximum number of days for which compensation for a special session is permitted by the constitution, whichever is smaller.
2.] Each senator and assemblyman [elected on or after November 4, 1986, or appointed to succeed a senator or assemblyman elected on or after November 4, 1986,] is entitled to receive [as compensation $130 per day for each day of service:
(a) During any regular session, for the number of days the legislature is in session, or in adjournment for not more than 3 days, or the maximum number of days for which compensation for a regular session is permitted by the constitution, whichever is smaller; and
(b) During any special session, for the number of days the legislature is in session or the maximum number of days for which compensation for a special session is permitted by the constitution, whichever is smaller.] the compensation determined by the commission to review the compensation of legislators pursuant to section 7 of this act.
Sec. 11. NRS 353.210 is hereby amended to read as follows:
353.210 1. Except as otherwise provided in [subsection 3,] subsections 3 and 4, on or before September 1 of each even-numbered year, all departments, institutions and other agencies of the executive department of the state government, and all agencies of the executive department of the state government receiving state money, fees or other money under the authority of the state, including those operating on money designated for specific purposes by the constitution or otherwise, shall prepare, on blanks furnished them by the chief, and submit to the chief estimates of their expenditure requirements, together with all anticipated income from fees and all other sources, for the next 2 fiscal years compared with the corresponding figures of the last completed fiscal year and the estimated figures for the current fiscal year. The chief shall direct that one copy of the completed forms, accompanied by every supporting schedule and any other related material, be delivered directly to the fiscal analysis division of the legislative counsel bureau on or before September 1 of each even-numbered year. The fiscal analysis division of the legislative counsel bureau must be given advance notice of any conference between the budget division of the department of administration and personnel of other state agencies regarding budget estimates, and a fiscal analyst of the legislative counsel bureau or his designated representative may attend any such conference.
2. The expenditure estimates must be classified to set forth the data of funds, organization units, and the character and objects of expenditures, and must include a mission statement and measurement indicators for each program. The organization units may be subclassified by functions and activities, or in any other manner at the discretion of the chief. If any department, institution or other agency of the executive department of the state government, whether its money is derived from state money or from other money collected under the authority of the state, fails or neglects to submit estimates of its expenditure requirements as provided in this section, the chief may from any data at hand in his office or which he may examine or obtain elsewhere, make and enter an arbitrary budget for the department, institution or agency in accordance with such data.
3. On or before October 31 of each even-numbered year, the commission to review the compensation of legislators shall submit to the chief for his information in preparing the proposed executive budget its determination regarding the level of compensation for legislators.
4. Agencies, bureaus, commissions and officers of the legislative department, the public employees' retirement system, the state industrial insurance system and the judicial department of the state government shall submit to the chief for his information in preparing the executive budget the budgets which they propose to submit to the legislature.
Sec. 12. NRS 353.230 is hereby amended to read as follows:
353.230 1. The chief shall review the estimates, altering, revising, increasing or decreasing the items of the estimates as he may deem necessary in view of the needs of the various departments, institutions and agencies in the executive department of the state government and the total anticipated income of the state government and of the various departments, institutions and agencies thereof during the next fiscal year. In performing the duties required by this subsection, the chief shall use the projections and estimates prepared by the economic forum pursuant to NRS 353.228.
2. A fiscal analyst of the legislative counsel bureau or his designated representative shall meet with the chief and participate in the budget review and shall have full access to all materials connected with the review.
3. The chief shall then prepare a budget, in accordance with NRS 353.150 to 353.246, inclusive, and shall deliver it to the governor. The budget must include the compensation for legislators determined by the commission pursuant to section 7 of this act. All revenue projections and any other information concerning future state revenue contained in the budget must be based upon the projections and estimates prepared by the economic forum pursuant to NRS 353.228. The governor shall transmit the budget to the legislature not later than the 10th day of the regular legislative session. The governor shall simultaneously submit, as a separate document:
(a) An analysis of any new programs or enhancements of existing programs being recommended; and
(b) Any increase in or new revenues which are being recommended in the budget.
The document must specify the total cost by department or agency of new programs or enhancements, but need not itemize the specific costs. All revenue projections and any other information concerning future state revenue contained in the document must be based upon the projections and estimates prepared by the economic forum pursuant to NRS 353.228.
4. During the consideration of the general appropriation bill, the special appropriation bills and the bills authorizing budgeted expenditures by the departments, institutions and agencies operating on money designated for specific purposes by the constitution or otherwise, submitted by the governor with the budget, the governor or his representative have the right to appear before and be heard by the appropriation committees of the legislature in connection with the appropriation bill or bills, and to render any testimony, explanation or assistance required of him.
Sec. 13. NRS 353.246 is hereby amended to read as follows:
353.246 1. Except as otherwise provided in subsection 2 of this section and subsection [3] 4 of NRS 353.210, the provisions of NRS 353.150 to 353.245, inclusive, do not apply to agencies, bureaus, commissions and officers of the legislative department, the public employees' retirement system, the state industrial insurance system and the judicial department of the state government.
2. The legislative department, the public employees' retirement system, the state industrial insurance system and the judicial department of the state government shall submit their budgets to the legislature in the same format as the executive budget unless otherwise provided by the legislative commission. All revenue projections and any other information concerning future state revenue contained in those budgets must be based upon the projections and estimates prepared by the economic forum pursuant to NRS 353.228.
Sec. 14. On or before January 1, 1998, the governor shall appoint to the commission to review the compensation of legislators:
1. Two members to initial terms that begin on January 1, 1998, and expire on December 31, 1999.
2. One member to an initial term that begins on January 1, 1998, and expires on December 31, 2000.
3. Two members to initial terms that begin on January 1, 1998, and expire on December 31, 2001.
Sec. 15. 1. There is hereby appropriated from the state general fund to the commission to review the compensation of legislators created pursuant to section 3 of this act the sum of $6,900 for salary, travel and per diem expenses.
2. Any remaining balance of the appropriation made by this section must not be committed for expenditure after June 30, 1999, and reverts to the state general fund as soon as all payments of money committed have been made.
Sec. 16. This act becomes effective on July 1, 1997.

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