Assembly Joint Resolution No. 18–Assemblymen Knecht, Beers, Hettrick, Gustavson, Angle, Andonov, Brown, Carpenter, Christensen, Gibbons, Goicoechea, Grady, Griffin, Hardy, Mabey, Marvel, Mortenson, Sherer and Weber

 

May 13, 2003

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Joint Sponsors: Senators Washington, Neal, O’Connell, McGinness, Cegavske, Amodei, Hardy, Nolan and Wiener

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Referred to Committee on Ways and Means

 

SUMMARY—Proposes to amend Nevada Constitution to impose certain limitations on amount that Legislature may appropriate or authorize for expenditure. (BDR C‑981)

 

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.

 

Assembly Joint RESOLUTION—Proposing to amend the Nevada Constitution to prohibit the Legislature from exceeding certain limitations in appropriating funds or authorizing funds for expenditure, to provide for the appointment of a nonlegislative body of economic experts and to provide for the disposition of any revenues in excess of the limitations on the amounts that may be appropriated or authorized for expenditure.

 

1-1  Resolved by the Assembly and Senate of the State of Nevada, Jointly, That new sections be added to Article 4, and

1-2  Section 2 of Article 4 of the Nevada Constitution be amended to

1-3  read as follows:

1-4  Sec. 39.  1.  Except as otherwise provided in

1-5  subsection 3, the Legislature shall not, without the

2-1  affirmative vote of at least two-thirds of the members elected

2-2  to each House, appropriate or authorize for expenditure in

2-3  any fiscal year an amount which exceeds the amount

2-4  appropriated or authorized for expenditure during Fiscal

2-5  Year 2002-2003, plus cumulative percentage adjustments

2-6  equal to the cumulative percentage changes in the size of

2-7  the Nevada economy as measured by the gross state product

2-8  in current dollars.

2-9  2.  The Legislature shall provide for the appointment of

2-10  a nonlegislative body, the members of which must have

2-11  economic expertise. The appointed body shall determine, for

2-12  each fiscal year after 2001-2002, the amount, if any, by

2-13  which the gross state product in current dollars has

2-14  changed. In making this determination, the appointed body

2-15  may use reliable estimates and projections, but shall adjust

2-16  any such determination when better or actual data becomes

2-17  available.

2-18      3.  The limitation on expenditures described in

2-19  subsection 1 does not apply with respect to any revenue that

2-20  is:

2-21      (a) Required to be deposited in a fund to be used

2-22  exclusively for the administration, construction,

2-23  reconstruction, improvement and maintenance of highways;

2-24      (b) Necessary to pay the interest and principal on public

2-25  debts lawfully contracted by the State;

2-26      (c) Generated by contracts of indebtedness lawfully

2-27  entered into or assumed by or on behalf of the State; or

2-28      (d) Received from the Federal Government or received

2-29  from any person or entity in the form of a gift or a grant.

2-30      Sec. 40.  1.  Except as otherwise provided in

2-31  subsection 2, the Legislature shall deposit into the fund

2-32  established pursuant to Section 41 of this Article any

2-33  revenues that exceed the limitation on expenditures

2-34  established pursuant to Section 39 of this Article.

2-35      2.  If the fund established pursuant to Section 41 of this

2-36  Article contains an amount of money which is greater than

2-37  10 percent of the amount of money contained in the State

2-38  General Fund, any revenues that exceed the limitation on

2-39  expenditures established pursuant to Section 39 of this

2-40  Article must be used correspondingly to reduce state or local

2-41  taxes.

2-42      Sec. 41.  The Legislature shall provide by law for the

2-43  creation, as a special revenue fund, of a fund to stabilize the

2-44  operation of the State Government.

3-1  Sec. 2.  1.  The sessions of the Legislature shall be

3-2  biennial, and shall commence on the 1st Monday of February

3-3  following the election of members of the Assembly, unless

3-4  the Governor of the State shall, in the interim, convene the

3-5  Legislature by proclamation.

3-6  2.  The Legislature shall adjourn sine die each regular

3-7  session not later than midnight Pacific standard time 120

3-8  calendar days following its commencement. Any legislative

3-9  action taken after midnight Pacific standard time on the 120th

3-10  calendar day is void, unless the legislative action is conducted

3-11  during a special session convened by the Governor.

3-12      3.  The Governor shall submit the proposed executive

3-13  budget to the Legislature not later than 14 calendar days

3-14  before the commencement of each regular session. In

3-15  addition to the expenditures proposed by the Governor, the

3-16  proposed executive budget must:

3-17      (a) Set forth a budget with a total amount proposed for

3-18  appropriation and authorization that does not exceed the

3-19  amount appropriated or authorized for expenditure during

3-20  Fiscal Year 2002-2003, plus cumulative percentage

3-21  adjustments equal to the cumulative percentage changes in

3-22  the size of the Nevada economy as measured by the gross

3-23  state product in current dollars; and

3-24      (b) Include specific identification of items recommended

3-25  to be cut from the proposed budget set forth pursuant to

3-26  paragraph (a) to facilitate, if necessary, a reduction of the

3-27  total proposed budget by 3 percent.

 

3-28  H