AB 134 — Revises provisions governing exemptions of certain special districts from certain requirements of the Local Government Budget and Finance Act. (BDR 31-562)

(ReprintedAssembly withBill amendmentsNo. adopted on April 12, 2017) FIRST REPRINT A.B.

134134–Assemblyman AHansen SSEMBLYCHAPTER.......... B ILLN O.

134–ASSEMBLYMAN H ANSEN PREFILED F EBRUARY 10, 2017 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions governing exemptions of certain special districts from certain requirements of the Local Government Budget and Finance Act.

(BDR 31-562) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

(1) the standard methods and procedures for the preparation, presentation, adoption and capitaladministration expenditures;of budgets;

(3)(2) estimationfinancial plans and determinationfiscal ofpolicies revenues,for expendituresofprograms andof taxcapital levies;expenditures;

(3) estimation and determination of revenues, expenditures and tax levies;

and (5) methods for informing the public, taxpayers and investors of the financial preparations, plans, policies and administration of the local government.

(NRS 354.472) LocalLocal, governments subject to the Act are required under existing law to file certain budget documents and audit reports with the Department of Taxation.

(NRS 354.470-354.626) A special district subject to the Act with annual total expenditures of less than $200,000 during the current fiscal year and budgeted for the succeeding fiscal year is authorized to petition the Department of Taxation for an exemption for 1 fiscal year from one or more of the following requirements:

(3) certain publishing requirementsaccrual ofor themodified Act;accrual basis.

andIf (4)granted maintenancean ofexemption, itsthe accountingspecial recordsdistrict onis required at a minimum to file an accrualannual orbudget, modifiedfiscal accrualreports basis.and any other documents prescribed by regulation by the Committee on Local Government Finance.

If granted an exemption, the special district is required at a minimum to file an annual budget, fiscal reports and any other Finance.

NAC 354.010-354.050) In addition, a special district - *AB134_R1* – 2 – subject to the Act with budgeted annual total expenditures of $200,000 or more in a fiscal year that reasonably anticipates that its actual annual total expenditures for ofthat Taxationfiscal foryear awill conditionalbe exemptionless fromthan the$200,000 requirementis ofauthorized providingto forpetition anmentthe Department annual audit for that fiscal year.

Under existing law, a board of countycountyg for an commissioners is authorized to request the Department of Taxation to audit the financial records of a special district that is granted a conditional or other exemption from the requirement of providing for an annual audit.

(NRS 354.475) This bill increases from $200,000 to $300,000 the limit on the amount of annual total expenditures for a special district to be eligible to file a petition for such a conditional or other exemption from the requirements of the Act.

- 79th Session (2017) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

4.Department of Taxation to audit the financial records of a special district that is exempt from the requirement of providing for an annual audit pursuant to this section.

A board of county commissioners may request the Department of Taxation to audit the financial records of a special district that is exempt from the requirement of providing for an annual audit pursuant to this section.

If a petition filed by a special district pursuant to subsection 1 is granted by the Department of Taxation:

- *AB134_R1* – 3 – (a) The minimum required of the special district is the filing with the Department of Taxation of an annual budget on or before April 15 of each year and the filing of fiscal reports in accordance with NRS 354.6015;

and (b) The special district is exempt from all publication requirements of the Local Government Budget and Finance Act, - 79th Session (2017) – 3 – except that the Department of Taxation by regulation shall require an annual publication of a notice of budget adoption and filing.

The Committee on Local Government Finance shall adopt regulations pursuant to NRS 354.594 which are necessary to carry outout7.he theThe purposesrevenue recorded in accounts that are kept on a cash basis must consist of thiscash section.items.

7.

The revenue recorded in accounts that are kept on a cash basis must consist of cash items.

H~~~~~ 17 - *AB134_R1*79th Session (2017)