SB 341 — Revises provisions relating to enterprise funds created by local governments for the purpose of providing telecommunication services. (BDR 31-1009)

S.B.Senate Bill No.

341341–Senator SENATESettelmeyer BILLJoint NOSponsor: .

341–SENATORAssemblywoman SETTELMEYERTitus MCHAPTER.......... ARCH 18, 2019 ____________ JOINT S PONSOR :

ASSEMBLYWOMAN TITUS ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to enterprise funds created by local governments for the purpose of providing telecommunication services.

(BDR 31-1009) 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.

The Local Government Budget and Finance Act authorizes the governing body of a local government to establish an enterprise fund to account for operations which are financed and conducted in a manner similar to the operations of a private business, where the intent of the governing body is to have the expenses of providing goods or services to the general public financed through charges imposed on users.

(1) loan or transfer money from an enterprise fund any fees imposed for the purpose an enterprise fund was created, only if thethecrease loangoverning orbody transfermakes certain determinations, including that the increase is madenecessary underand certainthe circumstances;fees in the enterprise fund are used solely for the purpose the fees are collected.

and (2) increase any fees imposed for the purpose an enterprise fund was created, only if the necessary and the fees in the enterprise fund are used solely for the purpose the fees are collected.

-EXPLANATION *SB341* – 2Matter –in THEbolded PEOPLEitalics OFis THEnew; STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

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

- 80th Session (2019) – 2 – (1) The money is repaid in full to the enterprise fund within 5 years;

and (IV) The estimated date that the money will be repaid in fullful(b) To pay the expenses related to the purpose for which the enterprise fund;fund was created;

(b) To pay the expenses related to the purpose for which the enterprise fund was created;

and - *SB341* – 3 – (c) All fees that are deposited in the enterprise fund are used solelysol3.y forfUpon the purposesadoption forof whichan increase in any fee pursuant to subsection 2, the feesgoverning arebody collected.shall, except as otherwise provided in this subsection, provide to the Department of Taxation an executed copy of the action increasing the fee.

3.

Upon the adoption of an increase in any fee pursuant to subsection 2, the governing body shall, except as otherwise provided in this subsection, provide to the Department of Taxation an executed copy of the action increasing the fee.

- 80th Session (2019) – 3 – 5.

or (b) Prohibit or impose any substantive or procedural limitations on any increase of a fee that is necessary to meet the requirements of an instrument that authorizes any bonds or other debt obligations which are secured by or payable from, in whole or in part, money in the enterprise fund or the revenues of the enterprise for which the enterpriseent6. fund was created.

6.The Department of Taxation shall provide to the Committee on Local Government Finance a copy of each report submitted to the Department on or after July 1, 2011, by a county or city pursuant to NRS 354.6015.

The Department of Taxation shall provide to the Committee the Department on or after July 1, 2011, by a county or city pursuant to NRS 354.6015.

For the purposes of paragraph (c) of subsection 1, the Committee on Local Government Finance shall adopt regulations setting forth the extent to which general, overhead, administrative - *SB341* – 4 – and similar expenses of a local government of a type described ininve paragraph (c) of subsection 1 may be allocated to an enterprise fund.

Except as otherwise provided in subsections 10 and 11, if a local government has subsidized its general fund with money from an enterprise fund for the 5 fiscal years immediately preceding the - 80th Session (2019) – 4 – fiscal year beginning on July 1, 2011, the provisions of subsection 1 do not apply to transfers from the enterprise fund to the general fund of the local government for the purpose of subsidizing the general fund if the local government:

and (b) Does not, on or after July 1, 2011, increase any fees for any enterprise fund used to subsidize the general fund except forforfor any increases described in paragraph (b) of subsection 5.

On and after July 1, 2021, the provisions of subsection 1 apply to transfers from an enterprise fund described in subsection 9 to the general fund of a local government for the purpose ofectionof 9 subsidizing the general fund unless:

and (b) In accordance with the plan approved by the Committee on Local Government Finance pursuant to paragraph (a), for each fiscal year during the term of the plan, the local government reduces by at least 3.3 percent the amount of the transfers from the enterprise fund to the general fund of the local government for the purpose ofofise fund subsidizing the general fund.

- *SB341* – 5 – 11.

After the expiration of the term of a plan approved by the Committee on Local Government Finance pursuant to subsection 10, the provisions of subsection 1 apply to the local government that adopted the plan.

The provisions of this section do not apply to an enterprise fund created by the governing body of a local government for the purpose of providing telecommunication - 80th Session (2019) – 5 – services pursuant to the provisions of NRS 710.010 to 710.159, inclusive.

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