Senate Bill No. 460

Senate Bill No. 460-Committee on Finance

CHAPTER

557

AN ACT relating to state financial administration; specifying the manner in which parts of the proposed budget for the executive department of the state government are confidential; revising deadlines for the submission of certain budgetary information; revising the provisions governing the procedure for the revision of work programs and allotments and acceptance of gifts and grants by state agencies; repealing the prospective expiration of certain provisions relating to governmental budgets; revising the effective dates of various legislative measures; and providing other matters properly relating thereto.

[Approved July 16, 1997]

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

Section 1. NRS 353.205 is hereby amended to read as follows:
353.2051. The proposed budget for the executive department of the state government for each fiscal year must be set up in three parts:
[1.] (a) Part 1 must consist of a budgetary message by the governor which outlines the financial policy of the executive department of the state government for the next 2 fiscal years, describing in connection therewith the important features of the financial plan. It must also embrace a general summary of the proposed budget setting forth the aggregate figures of the proposed budget in such a manner as to show the balanced relations between the total proposed expenditures and the total anticipated revenues, together with the other means of financing the proposed budget for the next 2 fiscal years, contrasted with the corresponding figures for the last completed fiscal year and fiscal year in progress. The general summary of the proposed budget must be supported by explanatory schedules or statements, classifying the expenditures contained therein by organizational units, objects and funds, and the income by organizational units, sources and funds.
[2.] (b) Part 2 must embrace the detailed budgetary estimates both of expenditures and revenues as provided in NRS 353.150 to 353.246, inclusive. The information must be presented in a manner which sets forth separately the cost of continuing each program at the same level of service as the current year and the cost, by budgetary issue, of any recommendations to enhance or reduce that level of service. Revenues must be summarized by type , and expenditures must be summarized by category of expense. Part 2 must include a mission statement and measurement indicators for each program. It must also include statements of the bonded indebtedness of the state government, showing the requirements for redemption of debt, the debt authorized and unissued, and the condition of the sinking funds, and any statements relative to the financial plan which the governor may deem desirable, or which may be required by the legislature.
[3.] (c) Part 3 must include a recommendation to the legislature for the drafting of a general appropriation bill authorizing, by departments, institutions and agencies, and by funds, all expenditures of the executive department of the state government for the next 2 fiscal years, and may include recommendations to the legislature for the drafting of such other bills as may be required to provide the income necessary to finance the proposed budget and to give legal sanction to the financial plan if adopted by the legislature.
2. Except as otherwise provided in NRS 353.211, as soon as each part of the proposed budget is prepared, a copy of the part must be transmitted to the fiscal analysis division of the legislative counsel bureau for confidential examination and retention.
3. Except for the information provided to the fiscal analysis division of the legislative counsel bureau pursuant to NRS 353.211, parts 1 and 2 of the proposed budget are confidential until the governor transmits the proposed budget to the legislature pursuant to NRS 353.230, regardless of whether those parts are in the possession of the executive or legislative department of the state government. Part 3 of the proposed budget is confidential until the bills which result from the proposed budget are introduced in the legislature.
Sec. 2. NRS 353.211 is hereby amended to read as follows:
353.2111. On or before October 15 of each even-numbered year, the chief shall provide to the fiscal analysis division of the legislative counsel bureau:
(a) Computerized budget files containing the actual data regarding revenues and expenditures for the previous year;
(b) The work programs for the current year; and
(c) Each agency's requested budget for the next 2 fiscal years.
2. On or before December [15] 31 of each even-numbered year, the chief shall provide to the fiscal analysis division:
(a) Each agency's adjusted base budget by budgetary account for the next 2 fiscal years; and
(b) An estimated range of the costs for:
(1) Continuing the operation of state government; and
(2) Providing elementary, secondary and higher public education,
at the current level of service.
3. The information provided to the fiscal analysis division pursuant to subsections 1 and 2 is open for public inspection.
4. As soon as practicable after receipt of the material provided pursuant to subsections 1 and 2, the fiscal analysis division shall provide a synopsis of the information to the members of the budget subcommittee of the legislative commission. The synopsis must include the levels of requested expenditures of all of the departments, institutions and agencies, major budgetary issues, approximate available revenues, historical data and any other information the fiscal analysts deem appropriate.
Sec. 3. NRS 353.220 is hereby amended to read as follows:
353.2201. The head of any department, institution or agency of the executive department of the state government, whenever he deems it necessary [by reason] because of changed conditions, may request the revision of the work program of his department, institution or agency at any time during the fiscal year, and submit the revised program to the governor through the chief with a request for revision of the allotments for the remainder of that fiscal year.
2. Every request for revision must be submitted to the chief on the form and with supporting information as the chief prescribes.
3. Before encumbering any appropriated or authorized money, every request for revision must be approved or disapproved in writing by the governor or the chief, if the governor has by written instrument delegated this authority to the chief.
4. Whenever a request for the revision of a work program of a department, institution or agency in an amount more than [$2,000] $20,000 would, when considered with all other changes in allotments for that work program made pursuant to NRS 353.215 and subsections 1, 2 and 3 of this section, increase or decrease by 10 percent or [$25,000,] $50,000, whichever is less, the expenditure level approved by the legislature for any of the allotments within the work program, the request must be approved as provided in subsection 5 before any appropriated or authorized money may be encumbered for the revision.
5. If a request for the revision of a work program requires additional approval as provided in subsection 4 and:
(a) Is necessary because of an emergency as defined in NRS 353.263 or for the protection of life or property, the governor shall take reasonable and proper action to approve it and shall report the action, and his reasons for determining that immediate action was necessary, to the interim finance committee at its first meeting after the action is taken. Action by the governor pursuant to this paragraph constitutes approval of the revision, and other provisions of this chapter requiring approval before encumbering money for the revision do not apply.
(b) The governor determines that the revision is necessary and requires expeditious action, he may certify that the request requires expeditious action by the interim finance committee. Whenever the governor so certifies, the interim finance committee has 15 days after the request is submitted to its secretary within which to consider the revision. Any request for revision which is not considered within the 15-day period shall be deemed approved.
(c) Does not qualify pursuant to paragraph (a) or (b), it must be submitted to the interim finance committee. The interim finance committee has 45 days after the request is submitted to its secretary within which to consider the revision. Any request which is not considered within the 45-day period shall be deemed approved.
6. The secretary shall place each request submitted to him pursuant to paragraph (b) or (c) of subsection 5 on the agenda of the next meeting of the interim finance committee.
7. In acting upon a proposed revision of a work program, the interim finance committee shall consider, among other things:
(a) The need for the proposed revision; and
(b) The intent of the legislature in approving the budget for the present biennium and originally enacting the statutes which the work program is designed to effectuate.
Sec. 4. NRS 353.335 is hereby amended to read as follows:
353.3351. Except as otherwise provided in subsections 5 and 6, a state agency may accept any gift or grant of property or services from any source only if it is included in an act of the legislature authorizing expenditures of nonappropriated money or, when it is not so included, if it is approved as provided in subsection 2.
2. If:
(a) Any proposed gift or grant is necessary because of an emergency as defined in NRS 353.263 or for the protection or preservation of life or property, the governor shall take reasonable and proper action to accept it and shall report the action and his reasons for determining that immediate action was necessary to the interim finance committee at its first meeting after the action is taken. Action by the governor pursuant to this paragraph constitutes acceptance of the gift or grant, and other provisions of this chapter requiring approval before acceptance do not apply.
(b) The governor determines that any proposed gift or grant would be forfeited if the state failed to accept it before the expiration of the period prescribed in paragraph (c), he may declare that the proposed acceptance requires expeditious action by the interim finance committee. Whenever the governor so declares, the interim finance committee has 15 days after the proposal is submitted to its secretary within which to approve or deny the acceptance. Any proposed acceptance which is not considered within the 15-day period shall be deemed approved.
(c) The proposed acceptance of any gift or grant does not qualify pursuant to paragraph (a) or (b), it must be submitted to the interim finance committee. The interim finance committee has 45 days after the proposal is submitted to its secretary within which to consider acceptance. Any proposed acceptance which is not considered within the 45-day period shall be deemed approved.
3. The secretary shall place each request submitted to him pursuant to paragraph (b) or (c) of subsection 2 on the agenda of the next meeting of the interim finance committee.
4. In acting upon a proposed gift or grant, the interim finance committee shall consider, among other things:
(a) The need for the facility or service to be provided or improved;
(b) Any present or future commitment required of the state;
(c) The extent of the program proposed; and
(d) The condition of the national economy, and any related fiscal or monetary policies.
5. A state agency may accept:
(a) Gifts, including grants from nongovernmental sources, not exceeding $10,000 each in value; and
(b) Governmental grants not exceeding [$50,000] $100,000 each in
value,
if the gifts or grants are used for purposes which do not involve the hiring of new employees and if the agency has the specific approval of the governor or, if the governor delegates this power of approval to the chief of the budget division of the department of administration, the specific approval of the chief.
6. This section does not apply to:
(a) The state industrial insurance system;
(b) The University and Community College System of Nevada; or
(c) The department of human resources while acting as the state health planning and development agency pursuant to paragraph (d) of subsection 2 of NRS 439A.081.
Sec. 5. NRS 387.303 is hereby amended to read as follows:
387.3031. Not later than [October 15] November 10 of each year, the board of trustees of each school district shall submit to the superintendent of public instruction and the department of taxation a report which includes the following information:
(a) For each fund within the school district, including, without limitation, the school district's general fund and any special revenue fund which receives state money, the total number and salaries of licensed and nonlicensed persons whose salaries are paid from the fund and who are employed by the school district in full-time positions or in part-time positions added together to represent full-time positions. Information must be provided for the current school year based upon the school district's final budget, including any amendments and augmentations thereto, and for the preceding school year. An employee must be categorized as filling an instructional, administrative, instructional support or other position.
(b) The count of pupils computed pursuant to paragraph (a) of subsection 1 of NRS 387.1233.
(c) The average daily attendance for the preceding school year and the estimated average daily attendance for the current school year of part-time pupils enrolled in courses which are approved by the department as meeting the requirements for an adult to earn a high school diploma.
(d) The school district's actual expenditures in the fiscal year immediately preceding the report.
(e) The school district's proposed expenditures for the current fiscal year.
(f) The schedule of salaries for licensed employees in the current school year and a statement of whether the negotiations regarding salaries for the current school year have been completed. If the negotiations have not been completed at the time the schedule of salaries is submitted, the board of trustees shall submit a supplemental report to the superintendent upon completion of negotiations or the determination of an arbitrator concerning the negotiations that includes the schedule of salaries agreed to or required by the arbitrator.
(g) The number of employees eligible for health insurance within the school district for the current and preceding fiscal years and the amount paid for health insurance for each such employee during those years.
(h) The rates for fringe benefits, excluding health insurance, paid by the school district for its licensed employees in the preceding and current fiscal years.
(i) The amount paid for extra duties, supervision of extracurricular activities and supplemental pay [,] and the number of employees receiving that pay in the preceding and current fiscal years.
2. On or before November [10] 25 of each year, the superintendent of public instruction shall submit to the department of administration and the fiscal analysis division of the legislative counsel bureau, in a format approved by the director of the department of administration, a compilation of the reports made by each school district pursuant to subsection 1.
3. The superintendent shall, in the compilation required by subsection 2, reconcile the revenues and expenditures of the school districts with the apportionment received by those districts from the state distributive school account for the preceding year.
Sec. 6. Section 15 of chapter 729, Statutes of Nevada 1995, at page 2821, is hereby amended to read as follows:

Sec. 15. [1.] Sections 2 and 6 of this act become effective at 12:01 a.m. on October 1, 1995.

[2. This act expires by limitation on July 1, 1997.]

Sec. 7. Section 3 of Assembly Bill No. 137 of this session is hereby amended to read as follows:

Sec. 3. This act becomes effective [upon passage and approval or on June 30, 1997, whichever occurs earlier.] on July 1, 1997.

Sec. 8. Section 15 of Assembly Bill No. 183 of this session is hereby amended to read as follows:

Sec. 15. 1. This section and sections 1 and 3 to 14, inclusive, of this act become effective on [June 30, 1997.] July 1, 1997.

2. Section 2 of this act becomes effective on January 1, 1999.

Sec. 9. Section 4 of Assembly Bill No. 266 of this session is hereby amended to read as follows:

Sec. 4. [This act becomes effective upon passage and approval or on June 30, 1997, whichever occurs earlier.]

1. Subsections 1 and 2 of section 1 and sections 2 and 3 of this act become effective on June 30, 1997.

2. Subsection 3 of section 1 of this act becomes effective on July 1, 1997.

Sec. 10. Section 5 of Assembly Bill No. 606 of this session is hereby amended to read as follows:

Sec. 5. This act becomes effective [upon passage and approval or on June 30, 1997, whichever occurs earlier.] on July 1, 1997.

Sec. 11. Section 3 of Senate Bill No. 204 of this session is hereby amended to read as follows:

Sec. 3. This act becomes effective [upon passage and approval or on June 30, 1997, whichever occurs earlier.] on July 1, 1997.

Sec. 12. Section 64 of Senate Bill No. 482 of this session is hereby amended to read as follows:

Sec. 64. 1. This section and section 63 of this act become effective upon passage and approval.

2. Subsection 1 of section 61 of this act becomes effective on June 30, 1997. Subsections 2 to 11, inclusive, of section 61 of this act become effective on July 1, 1997.

3. Section 27 of this act becomes effective upon passage and approval for purposes of appointing members to the commission on educational technology, created pursuant to section 27 of this act, and on July 1, 1997, for all other purposes.

[3.] 4. Section 37 of this act becomes effective upon passage and approval for purposes of appointing members to the legislative committee on education, created pursuant to section 37 of this act, and on July 1, 1997, for all other purposes.

[4.] 5. Section 43 of this act becomes effective upon passage and approval for purposes of appointing members to the council to establish academic standards for public schools, created pursuant to section 43 of this act, and on July 1, 1997, for all other purposes, and expires by limitation on June 30, 2001.

[5.] 6. Sections 20 to 26, inclusive, 28 to 36, inclusive, 38 to 42, inclusive, [and] 46 to [62,] 60, inclusive, and 62 of this act become effective on July 1, 1997.

[6.] 7. Sections 44 and 45 of this act become effective on July 1, 1997, and expire by limitation on June 30, 2003.

[7.] 8. Sections 1 to 19, inclusive, of this act become effective on January 1, 1998.

Sec. 13. 1. This section and sections 7 to 11, inclusive, of this act become effective on June 30, 1997.
2. Sections 1 to 6, inclusive, of this act become effective on July 1, 1997.
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