(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Senate Bill No. 218-Committee on Finance
March 13, 1997
____________
Referred to Committee on Finance
SUMMARY--Creates disaster relief fund and emergency assistance account to respond to emergencies and disasters. (BDR 31-1472)
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 state financial administration; creating the disaster relief fund to provide grants or loans of money to state agencies or local governments for certain expenses incurred because of a disaster; creating the emergency assistance account within that fund to provide assistance in the event of a natural or technological emergency or disaster; providing for the administration of the fund and the account; 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 353 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 15, inclusive, of this act.
Sec. 2 As used in sections 2 to 15, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 7, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 3 "Disaster" means a fire, flood, earthquake, drought, explosion, civil disturbance or any other occurrence or threatened occurrence that, regardless of cause:
1. Results in, or may result in, widespread or severe damage to property or injury to or the death of persons in this state; and
2. As determined by the governor, requires immediate action to protect the health, safety and welfare of the residents of this state.
Sec. 4 "Eligible project" means a project that:
1. Is related to a disaster; and
2. Is proposed, coordinated or conducted by a public or nonprofit private entity that has been designated and approved as qualifying and eligible to receive federal grant money for the disaster from a federal disaster assistance agency.
Sec. 5 "Fund" means the disaster relief fund created pursuant to section 8 of this act.
Sec. 6 "Grant match" means the share of a grant provided by a federal disaster assistance agency that must be matched by a state or local government.
Sec. 7 "Local government" has the meaning ascribed to it in NRS 354.474.
Sec. 8 1. The disaster relief fund is hereby created as a special revenue fund. The interim finance committee shall administer the fund. Except as otherwise provided in subsection 2, money received from:
(a) A direct legislative appropriation to the fund;
(b) A transfer of one-half of the interest earned on money in the fund to stabilize the operation of state government made pursuant to NRS 353.288; and
(c) A grant, gift or donation to the fund,
must be deposited in the fund. Except as otherwise provided in section 18 of this act, the interest and income earned on the money in the fund must, after deducting any applicable charges, be credited to the fund.
2. If, at the end of each quarter of a fiscal year, the balance in the fund exceeds 0.75 percent of the total amount of all appropriations from the state general fund for the operation of all departments, institutions and agencies of state government and authorized expenditures from the state general fund for the regulation of gaming for that fiscal year, the state controller shall not, until the balance in the fund is 0.75 percent or less of that amount, transfer any interest earned on money in the fund to stabilize the operation of state government from the state general fund to the fund pursuant to the provisions of NRS 353.288.
3. Money in the fund may be distributed through grants and loans to state agencies and local governments as provided in sections 2 to 15, inclusive, of this act.
4. If the governor declares a disaster, the state board of examiners shall estimate:
(a) The money in the fund that is available for grants and loans for the disaster pursuant to the provisions of sections 2 to 15, inclusive, of this act; and
(b) The anticipated amount of those grants and loans for the disaster.
Except as otherwise provided in this subsection, if the anticipated amount determined pursuant to paragraph (b) exceeds the available money in the fund for such grants and loans, all grants and loans from the fund for the disaster must be reduced in the same proportion that the anticipated amount of the grants and loans exceed the money in the fund that is available for grants and loans for the disaster. If the reduction of a grant or loan from the fund would result in a reduction in the amount of money that may be received by a state agency or local government from the Federal Government, the reduction in the grant or loan must not be made.
Sec. 9 Money in the fund may be distributed as a grant to a state agency because of a disaster for the payment of expenses incurred by the state agency for:
1. The repair or replacement of roads, streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the state and damaged by the disaster;
2. Any emergency measures undertaken to save lives, protect public health and safety or protect property in the jurisdiction in which the disaster occurred;
3. The removal of debris from publicly or privately owned land and waterways undertaken because of the disaster; and
4. The administration of a disaster assistance program.
Sec. 10 Money in the fund may be distributed as a grant to a local government because of a disaster for:
1. The payment of expenses incurred by the local government for:
(a) The repair or replacement of roads, streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the local government and damaged by the disaster; and
(b) Any emergency measures undertaken to save lives, protect public health and safety or protect property in the jurisdiction in which the disaster occurred; and
2. The payment of not more than 50 percent of any grant match the local government must provide to obtain a grant from a federal disaster assistance agency for an eligible project to repair damage caused by the disaster within the jurisdiction of the local government.
Sec. 11 Money in the fund may be distributed as a loan to a local government because of a disaster for:
1. The payment of expenses incurred by the local government for:
(a) The repair or replacement of roads, streets, bridges, water control facilities, public buildings, public utilities, recreational facilities and parks owned by the local government and damaged by the disaster;
(b) Any overtime worked by an employee of the local government because of the disaster or any other extraordinary expenses incurred by the local government because of the disaster; and
(c) Any projects to reduce or prevent the possibility of damage to persons or property from similar disasters in the future; and
2. The payment of not more than 50 percent of any grant match the local government must provide to obtain a grant from a federal disaster assistance agency for an eligible project to repair damage caused by the disaster within the jurisdiction of the local government. Before a loan may be distributed to a local government pursuant to this subsection:
(a) The interim finance committee must make a determination that the local government is currently unable to meet its financial obligations; and
(b) The local government must execute a loan agreement in which the local government agrees to:
(1) Use the money only for the purpose of paying the grant match; and
(2) Repay the entire amount of the loan, without any interest or other charges, to the disaster relief fund not later than 10 years after the date on which the agreement is executed.
Sec. 12 1. A state agency or local government may submit a request to the state board of examiners for a grant or loan from the fund as provided in sections 2 to 15, inclusive, of this act if:
(a) The agency or local government finds that, because of a disaster, it is unable to pay for an expense or grant match specified in section 9, 10 or 11 of this act from money appropriated or otherwise available to the agency or local government; and
(b) The request has been approved by the chief administrative officer of the state agency or the governing body of the local government.
2. A request for a grant or loan submitted pursuant to subsection 1 must include:
(a) A statement setting forth the amount of money requested by the state agency or local government;
(b) An assessment of the need of the state agency or local government for the money requested; and
(c) A determination of the type, value and amount of resources the state agency or local government may be required to provide as a condition for the receipt of a grant or loan from the fund.
3. Upon the receipt of a request for a grant or loan submitted pursuant to subsection 1, the state board of examiners:
(a) Shall consider the request; and
(b) May require any additional information that it determines is necessary to make a recommendation.
4. If the state board of examiners finds that a grant or loan is appropriate, it shall include in its recommendation to the interim finance committee the proposed amount of the grant or loan. If the state board of examiners recommends a loan for a local government, it shall include the information required pursuant to subsection 1 of section 14 of this act. If the state board of examiners finds that a grant or loan is not appropriate, it shall include in its recommendation the reason for its determination.
5. The provisions of this section do not prohibit a state agency or local government from submitting more than one request for a grant or loan from the fund.
Sec. 13 1. The state board of examiners shall submit a recommendation for each request for a grant or loan made pursuant to section 12 of this act to the director of the legislative counsel bureau. Upon receipt of the recommendation, the director shall notify the chairman of the interim finance committee of that recommendation. The chairman shall call a meeting of the committee to consider the recommendation.
2. The interim finance committee may reject any recommendation of the state board of examiners and independently evaluate and act upon any request submitted pursuant to section 12 of this act.
3. If the interim finance committee finds that a grant or loan from the fund is appropriate and may be made in accordance with the provisions of sections 2 to 15, inclusive, of this act, it shall, by resolution:
(a) Establish the amount and purpose of the grant or loan; and
(b) Provide for the transfer of that amount from the fund to the appropriate state agency or local government.
4. No grant or loan from the fund may be made by the interim finance committee to increase the salaries of any officers or employees of the state or a local government.
Sec. 14 1. In addition to any applicable requirements set forth in section 11 of this act, if the interim finance committee approves a loan to a local government pursuant to the provisions of sections 2 to 15, inclusive, of this act, the approval must include a schedule for the repayment of the loan. The schedule must specify:
(a) A period of not more than 10 years for the repayment of the loan; and
(b) The rate of interest, if any, for the loan.
2. Except as otherwise provided in subsection 3, if a local government receives a loan from the fund and, before the loan is repaid, the local government receives money from the Federal Government for a grant match or any of the expenses set forth in subsection 1 of section 11 of this act for which the local government received the loan, the local government shall deposit with the state treasurer for credit to the fund an amount of money equal to the money it received from the Federal Government for the grant match or the expenses.
3. Any money deposited with the state treasurer for credit to the fund pursuant to subsection 2 must be used to pay the unpaid balance of the loan specified in subsection 2. If any money remains after that payment is made, the remaining money must be paid to the local government to whom the loan was made.
Sec. 15 1. Except as otherwise provided in this section, no grant or loan may be made from the fund to a state agency or local government unless, as a condition of making the grant or loan, the state agency or local government agrees to provide an amount of its resources equal to at least 25 percent of the grant or loan. The state board of examiners shall determine the type, value and amount of the resources, including money, labor, materials, supplies and equipment, that is required to be provided by the state agency or local government.
2. If a state agency or local government submits a request for a grant or loan pursuant to section 12 of this act and:
(a) It maintains a policy of insurance providing coverage for damages, injuries or other losses incurred because of a disaster; or
(b) If the request is submitted by a local government, it has established a district for the control of floods pursuant to NRS 543.170 to 543.830, inclusive,
the state board of examiners may recommend that the state agency or local government provide a portion of its resources in an amount that is less than the amount required pursuant to subsection 1.
3. The state board of examiners may, if it determines that the state agency or local government is unable to provide any portion of its resources as its contribution for the receipt of a grant or loan, recommend that the state agency or local government not be required to provide any portion of its resources as a condition for the receipt of the grant or loan.
Sec. 16 NRS 353.288 is hereby amended to read as follows:
353.2881. The fund to stabilize the operation of the state government is hereby created as a special revenue fund. Except as otherwise provided in [subsection 2,] subsections 2 and 3, the state controller shall deposit to the credit of the fund two-fifths of any revenue in the state general fund collected by the state for general, unrestricted uses, and not for special purposes, in excess of the amount necessary to:
(a) Pay all appropriations made for the support of the state government for the fiscal year in which that revenue will be deposited in the fund; and
(b) Attain the reserve required by NRS 353.213.
2. The balance in the fund must not exceed 10 percent of the total of all appropriations from the state general fund for the operation of all departments, institutions and agencies of the state government and authorized expenditures from the state general fund for the regulation of gaming for the fiscal year in which that revenue will be deposited in the fund.
3. Except as otherwise provided in this subsection and section 8 of this act, beginning with the fiscal year that begins on July 1, 1999, the state controller shall, at the end of each quarter of a fiscal year, transfer from the state general fund to the disaster relief fund created pursuant to section 8 of this act an amount equal to one-half of the interest earned on money in the fund to stabilize the operation of state government during the previous quarter. The state controller shall not transfer more than $500,000 for any quarter pursuant to this subsection.
4. Money from the fund to stabilize the operation of the state government may be appropriated only:
(a) If the total actual revenue of the state falls short by 5 percent or more of the total anticipated revenue for the biennium in which the appropriation is made; or
(b) If the legislature and the governor declare that a fiscal emergency exists.
Sec. 17 NRS 218.6827 is hereby amended to read as follows:
218.68271. Except as otherwise provided in [subsection 2,] subsections 2 and 3, the interim finance committee may exercise the powers conferred upon it by law only when the legislature is not in regular or special session.
2. During a regular session , the interim finance committee may also perform the duties imposed on it by subsection 5 of NRS 284.115, subsection 2 of NRS 321.335, NRS 322.007, subsection 2 of NRS 323.020, NRS 323.050, subsection 1 of NRS 323.100, subsection 1 of NRS 341.145, NRS 353.220, 353.224 and 353.335, paragraph (b) of subsection 4 of NRS 407.0762, NRS 428.375, subsection 6 of NRS 445B.830 and NRS 538.650 [.] and sections 2 to 15, inclusive, of this act. In performing those duties, the senate standing committee on finance and the assembly standing committee on ways and means may meet separately and transmit the results of their respective votes to the chairman of the interim finance committee to determine the action of the interim finance committee as a whole.
3. During a regular or special session, the interim finance committee may exercise the powers and duties conferred upon it pursuant to the provisions of sections 2 to 15, inclusive, of this act.
4. If the interim finance committee determines that a fundamental review of the base budget of a state agency is necessary, it shall, by resolution, notify the legislative commission of that finding for assignment of the review to a legislative committee for the fundamental review of the base budgets of state agencies established pursuant to NRS 218.5382.
Sec. Chapter 414 of NRS is hereby amended by adding thereto a new section to read as follows:
1. There is hereby created the emergency assistance account within the disaster relief fund created pursuant to section 8 of this act. Beginning with the fiscal year that begins on July 1, 1999, the state controller shall, at the end of each fiscal year, transfer the interest earned during the previous fiscal year on the money in the disaster relief fund to the account in an amount not to exceed $500,000.
2. The state emergency response commission shall administer the account. The commission may adopt regulations authorized by this section before, on or after July 1, 1999.
3. All expenditures from the account must be approved in advance by the commission. Except as otherwise provided in subsection 4, all money in the account must be expended solely to:
(a) Provide supplemental emergency assistance to this state or to local governments in this state that are severely and adversely affected by a natural or technological emergency or disaster for which available resources of this state or the local government are inadequate to provide a satisfactory remedy; and
(b) Pay any actual expenses incurred by the commission for administration during a natural or technological emergency or disaster.
4. Beginning with the fiscal year that begins on July 1, 1999, if any balance remains in the account at the end of a fiscal year and the balance has not otherwise been committed for expenditure, the commission may, with the approval of the interim finance committee, allocate all or any portion of the remaining balance to this state or to a local government to:
(a) Purchase equipment or supplies required for emergency management; and
(b) Provide training to personnel related to emergency management.
5. Beginning with the fiscal year that begins on July 1, 1999, the commission shall, at the end of each quarter of a fiscal year, submit to the interim finance committee a report of the expenditures made from the account for the previous quarter.
6. The commission shall adopt such regulations as are necessary to administer the account.
7. The commission may adopt regulations to provide for reimbursement of expenditures made from the account. If the commission requires such reimbursement, the attorney general shall take such action as is necessary to recover the amount of any unpaid reimbursement plus interest at a rate determined pursuant to NRS 17.130, computed from the date on which the money was removed from the fund, upon request by the commission.
Sec. 18 NRS 459.738 is hereby amended to read as follows:
459.738 1. The state emergency response commission is hereby created for the purpose of carrying out the provisions of section 18 of this act, Public Law 99-499 and other matters relating thereto.
2. The commission consists of not more than 25 members appointed by the governor. The governor shall, to the extent practicable, appoint persons to the commission who have technical expertise in responding to emergencies.
3. The term of each member of the commission is 4 years. A member may be reappointed, and there is no limit on the number of terms that a member may serve.
4. The governor shall appoint one or more of the members of the commission to serve as chairman or co-chairmen.
5. The commission may employ, within the limits of legislative appropriations, such staff as is necessary to the performance of its duties.
Sec. 19 Notwithstanding the amendatory provisions of section 16 of this act, the state controller shall, at the end of the first quarter of the 1999-2000 fiscal year and at the end of the first quarter of each subsequent fiscal year, transfer one-half of the interest earned during the previous quarter on the money in the fund to stabilize the operation of state government created pursuant to NRS 353.288 to the emergency assistance account created pursuant to section 18 of this act, in an amount not to exceed $500,000 per year. Such a transfer must be made until the balance in the disaster relief fund created pursuant to section 8 of this act is sufficient to earn interest in an amount of at least $500,000 annually. Thereafter, the interest earned on the money in the fund to stabilize the operation of state government must be transferred in accordance with the amendatory provisions of sections 8 and 16 of this act.
Sec. 20 A grant or loan may be made from the disaster relief fund pursuant to the provisions of sections 2 to 15, inclusive, of this act for any disaster that occurs on or after January 1, 1997.
Sec. 21 There is hereby appropriated from the state general fund to the disaster relief fund created pursuant to section 8 of this act the sum of $4,000,000.
Sec. 22 1. This section and sections 1 to 21, inclusive, of this act become effective upon passage and approval.
2. Section 22 of this act becomes effective on June 30, 1997.