Assembly Bill No. 413–Assemblymen Knecht, Hettrick, Brown, Beers, Angle, Andonov, Carpenter, Christensen, Claborn, Gibbons, Goicoechea, Grady, Griffin, Gustavson, Hardy, Mabey, Marvel, Parks, Sherer and Weber

 

March 17, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to state financial administration. (BDR 31‑819)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

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

 

AN ACT relating to state financial administration; requiring the Governor to submit with the budget his proposed recommendations for reductions, if required, in the budget; requiring that adopted regulations include a statement of the net benefit to the State from the adoption of the regulation; requiring the Interim Finance Committee to study the process of preparing and analyzing the budget to ensure effective fiscal management of the State; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 353.230 is hereby amended to read as follows:

1-2  353.230  1.  The Chief shall review the estimates, altering,

1-3  revising, increasing or decreasing the items of the estimates as he

1-4  may deem necessary in view of the needs of the various

1-5  departments, institutions and agencies in the Executive Department

1-6  of the State Government and the total anticipated income of the

1-7  State Government and of the various departments, institutions and

1-8  agencies of the Executive Department during the next fiscal year. In

2-1  performing the duties required by this subsection, the Chief shall use

2-2  the projections and estimates prepared by the Economic Forum

2-3  pursuant to NRS 353.228.

2-4  2.  The Chief shall meet with a fiscal analyst of the Legislative

2-5  Counsel Bureau , or his designated representative , and personnel of

2-6  the various departments, institutions and agencies of the Executive

2-7  Department to discuss:

2-8  (a) The budgetary requests of each department, institution and

2-9  agency; and

2-10      (b) The budgetary recommendations of the Budget Division of

2-11  the Department of Administration for each department, institution

2-12  and agency,

2-13  for the next 2 fiscal years. The Chief shall allow the fiscal analyst of

2-14  the Legislative Counsel Bureau , or his designated representative ,

2-15  full access to all materials connected with the review.

2-16      3.  The Chief shall then prepare a final version of the proposed

2-17  budget, in accordance with NRS 353.150 to 353.246, inclusive, and

2-18  shall deliver it to the Governor. The final version of the proposed

2-19  budget must include the adjusted base budget for each department,

2-20  institution and agency of the Executive Department, the costs for

2-21  continuing each program at the current level of service and the

2-22  costs, if any, for any new programs[,] or for recommended

2-23  enhancements of existing programs or reductions for the

2-24  departments, institutions and agencies of the Executive Department

2-25  for the next 2 fiscal years. All projections of revenue and any other

2-26  information concerning future state revenue contained in the

2-27  proposed budget must be based upon the projections and estimates

2-28  prepared by the Economic Forum pursuant to NRS 353.228.

2-29      4.  The Governor shall, not later than 14 calendar days before

2-30  the commencement of the regular legislative session, submit the

2-31  proposed budget to the Director of the Legislative Counsel Bureau

2-32  for transmittal to the Legislature. The Governor shall simultaneously

2-33  submit, as [a separate document:] separate documents:

2-34      (a) An analysis of any new programs or enhancements of

2-35  existing programs being recommended[; and

2-36      (b) Any] and any increase in or new revenues which are being

2-37  recommended in the proposed budget.The document must specify

2-38  the total cost by department, institution or agency of new programs

2-39  or enhancements, but need not itemize the specific costs. All

2-40  projections of revenue and any other information concerning future

2-41  state revenue contained in the document must be based upon the

2-42  projections and estimates prepared by the Economic Forum pursuant

2-43  to NRS 353.228.

2-44      (b) The Governor’s recommendations for accomplishing a

2-45  reduction of 3 percent of the total amount appropriated and 10

3-1  percent of the total amount appropriated in each fiscal year from

3-2  the State General Fund, if such reductions are deemed necessary

3-3  by the Legislature.

3-4  5.  On or before the 19th calendar day of the regular legislative

3-5  session, the Governor shall submit to the Legislative Counsel

3-6  recommendations for each legislative measure which will be

3-7  necessary to carry out the final version of the proposed budget or to

3-8  carry out the Governor’s legislative agenda. These

3-9  recommendations must contain sufficient detailed information to

3-10  enable the Legislative Counsel to prepare the necessary legislative

3-11  measures.

3-12      6.  During the consideration of the general appropriation bill

3-13  and any special appropriation bills and bills authorizing budgeted

3-14  expenditures by the departments, institutions and agencies operating

3-15  on money designated for specific purposes by the Nevada

3-16  Constitution or otherwise, drafted at the request of the Legislature

3-17  upon the recommendations submitted by the Governor with the

3-18  proposed budget, the Governor or his representative have the right

3-19  to appear before and be heard by the appropriation committees of

3-20  the Legislature in connection with the appropriation bill or bills, and

3-21  to render any testimony, explanation or assistance required of him.

3-22      Sec. 2.  NRS 233B.066 is hereby amended to read as follows:

3-23      233B.066  1.  Except as otherwise provided in subsection 2,

3-24  each adopted regulation which is submitted to the Legislative

3-25  Counsel Bureau pursuant to NRS 233B.067 or filed with the

3-26  Secretary of State pursuant to subsection 2 of NRS 233B.070 must

3-27  be accompanied by a statement concerning the regulation which

3-28  contains the following information:

3-29      (a) A description of how public comment was solicited, a

3-30  summary of the public response[,] and an explanation of how other

3-31  interested persons may obtain a copy of the summary.

3-32      (b) The number of persons who:

3-33          (1) Attended each hearing;

3-34          (2) Testified at each hearing; and

3-35          (3) Submitted to the agency written statements.

3-36      (c) A description of how comment was solicited from affected

3-37  businesses, a summary of their response[,] and an explanation of

3-38  how other interested persons may obtain a copy of the summary.

3-39      (d) If the regulation was adopted without changing any part of

3-40  the proposed regulation, a summary of the reasons for adopting the

3-41  regulation without change.

3-42      (e) The estimated economic effect of the regulation on the

3-43  business which it is to regulate and on the public. These must be

3-44  stated separately[,] and in each case must include:

3-45          (1) Both adverse and beneficial effects; and

4-1       (2) Both immediate and long-term effects.

4-2  (f) The estimated cost to the agency for enforcement of the

4-3  proposed regulation.

4-4  (g) An analysis of the social and economic benefit of the

4-5  regulation as compared to the cost and negative impact of the

4-6  regulation, and a determination of whether such an analysis

4-7  demonstrates that there is a net benefit to the people and economy

4-8  of the State from the adoption of the regulation. If the agency

4-9  determines that there is a net benefit to the people and economy of

4-10  the State, the analysis must include findings of fact and

4-11  conclusions of law showing that the benefit to the people and

4-12  economy of the State exceeds the cost to and negative impact upon

4-13  the people and economy of the State, and a statement of whether

4-14  the approach taken in the adopted regulation is the most cost-

4-15  effective way of accomplishing the desired regulatory goal. If the

4-16  agency determines that there is not a net benefit to the people and

4-17  economy of the State, the analysis must indicate the reason that

4-18  there is not a net benefit and the rationale for adopting the

4-19  regulation notwithstanding the lack of a net benefit.

4-20      (h) A description of any regulations of other state or government

4-21  agencies which the proposed regulation overlaps or duplicates and a

4-22  statement explaining why the duplication or overlapping is

4-23  necessary. If the regulation overlaps or duplicates a federal

4-24  regulation, the explanation must include the name of the regulating

4-25  federal agency.

4-26      [(h)] (i) If the regulation includes provisions which are more

4-27  stringent than a federal regulation which regulates the same activity,

4-28  a summary of such provisions.

4-29      [(i)] (j) If the regulation provides a new fee or increases an

4-30  existing fee, the total annual amount the agency expects to collect

4-31  and the manner in which the money will be used.

4-32      2.  The requirements of paragraphs (a) to (d), inclusive, of

4-33  subsection 1 do not apply to emergency regulations.

4-34      Sec. 3.  NRS 233B.067 is hereby amended to read as follows:

4-35      233B.067  1.  After adopting a permanent regulation, the

4-36  agency shall submit the informational statement prepared pursuant

4-37  to NRS 233B.066 and one copy of each regulation adopted to the

4-38  Legislative Counsel for review by the Legislative Commission,

4-39  which may refer it to a joint interim committee, to determine

4-40  whether the regulation conforms to the statutory authority pursuant

4-41  towhich it was adopted and whether the regulation carries out the

4-42  intent of the Legislature in granting that authority. If the

4-43  informational statement prepared pursuant to NRS 233B.066

4-44  includes a determination pursuant to paragraph (g) of subsection

4-45  1 of that section that there is not a net benefit to the people and

5-1  economy of the State from the adoption of the regulation, the

5-2  Legislative Counsel shall specifically notify the Legislative

5-3  Commission of that determination. The Legislative Counsel shall

5-4  endorse on the original and the copy of each adopted regulation the

5-5  date of their receipt. The Legislative Counsel shall maintain the

5-6  copy of the regulation in a file and make the copy available for

5-7  public inspection for 2 years.

5-8  2.  If an agency submits an adopted regulation to the Legislative

5-9  Counsel pursuant to subsection 1 that:

5-10      (a) The agency is required to adopt pursuant to a federal statute

5-11  or regulation; and

5-12      (b) Exceeds the specific statutory authority of the agency or sets

5-13  forth requirements that are more stringent than a statute of this

5-14  state,

5-15  [it] the agency shall include a statement that adoption of the

5-16  regulation is required by a federal statute or regulation. The

5-17  statement must include the specific citation of the federal statute or

5-18  regulation requiring such adoption.

5-19      3.  The Legislative Commission, or the joint interim committee

5-20  if the Commission has referred it to such a committee, shall review

5-21  the regulation at its next regularly scheduled meeting if the

5-22  regulation is received more than 10 working days before the

5-23  meeting and a regular meeting is held within 35 days after receipt of

5-24  the regulation. The Commission may appoint a committee

5-25  composed of three or more members of the Commission or any joint

5-26  interim committee to examine proposed regulations received more

5-27  than 35 days before a regular meeting is scheduled to be held.

5-28      4.  The Legislative Commission shall notify the Legislative

5-29  Counsel of the results of its review within 30 days after receipt of

5-30  the regulation from the agency. If the Commission does not object

5-31  to the regulation, the Legislative Counsel shall file it with the

5-32  Secretary of State within 35 days after receipt from the agency and

5-33  notify the agency of the filing. If the Commission objects to the

5-34  regulation after determining that:

5-35      (a) If subsection 2 is applicable, the regulation is not required

5-36  pursuant to a federal statute or regulation;

5-37      (b) The regulation does not conform to statutory authority; or

5-38      (c) The regulation does not carry out legislative intent,

5-39  the Legislative Counsel shall attach to the regulation a written notice

5-40  of the objection of the Commission, including a statement of the

5-41  reasons for its objection, and shall promptly return the regulation to

5-42  the agency.

5-43      Sec. 4.  1.  The Interim Finance Committee shall review the

5-44  executive budget and the process of preparing and analyzing the

5-45  budget to determine ways to improve the ability of the Legislature,

6-1  through the budget process, to ensure effective fiscal management

6-2  of the State. The review must include, without limitation, an

6-3  analysis of:

6-4  (a) The historic information compiled and maintained with

6-5  respect to the budget;

6-6  (b) The performance indicators used by state agencies;

6-7  (c) The manner in which caseload increases and other

6-8  adjustments to the budget are determined;

6-9  (d) Projections or other statistical information that would be

6-10  helpful to the Legislature in reviewing the budget; and

6-11      (e) The adequacy of the information being collected and

6-12  transmitted to the Legislature,

6-13  and of how improvements in these areas can assist the Legislature in

6-14  ensuring effective fiscal management of the State.

6-15      2.  The Interim Finance Committee shall submit a report with

6-16  its recommendations for improving the budget process to ensure

6-17  effective fiscal management of the State to the 73rd Session of the

6-18  Legislature.

6-19      Sec. 5.  This act becomes effective on July 1, 2003.

 

6-20  H