SB 418 — Revises provisions relating to the collection of delinquent contributions by the Public Employees' Retirement System. (BDR 23-601)

S.B.Senate Bill No.

418418–Committee SENATEon BILLNFinance OCHAPTER.......... .

418–COMMITTEE ON F INANCE M ARCH 20, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the collection of delinquent contributions by the Public Employees’ Retirement System.

(BDR 23-601) FISCAL NOTE:

EffEffect on the State:

Yes.May have Fiscal Impact.

~ EXPLANATION – Matter in bolded italics is new;

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

LegislativeLegiExisting Counsel’slaw Digest:establishes a system of retirement that provides benefits for the retirement, disability or death of employees of public employers in Nevada known as the Public Employees’ Retirement System.

Existing(NRS law286.110) establishesUnder aexisting systemlaw, ofpublic retirementemployers thatare providesrequired benefitsto forperiodically thefile retirement,payroll disabilityreports orand deathremit ofcontributions employeesto ofthe publicSystem employerswith inrespect Nevadato knowntheir asemployees. the Public Employees’ Retirement System.

(NRS 286.110)286.460) UnderExisting existinglaw law,provides publicthat employers are required to periodically file payroll reports and remit contributions to if a public employer is delinquent by more than 90 days in submitting a payroll report or remitting contributions, the System is required to submit a written complaint to the Department of Taxation asking the Department to take necessary actions to collect thethehe delinquent amount in accordance with the procedure in existing law for delinquent reports of local governments, which includes the withholding of certain payments to which a local government may otherwise be entitled.

(NRS 286.462, 354.665) Existing law also provides a procedure for the withholding of certain payments to paymentswhich a local government may otherwise be entitled for failing to make certain this bill changes the Publicprocedure Employees’by Benefitswhich Program.the System is required to collect delinquent contributions by specifying:

(NRS 354.671) Section 1 of this bill changes the procedure by which the System is required to collect delinquent contributions by specifying:

and (2) the source of payment for those delinquent contributions for each type of public employer, including the removeswithholding the applicability of thecertain procedurepayments to delinquentlocal payrollgovernments reports.in existing law.

SectionsSection 2-41 also of this bill make conforming changes relating to the revised procedure in section 1.1.-4 EXPLANATION – Matter in bolded italics is new;

-matter *SB418*between –brackets 2[omitted –material] THEis PEOPLEmaterial OFto THEbe STATEomitted. OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

- 83rd Session (2025) – 2 – 2.

Payment of the delinquent amount must be made from the Contingency Account created by NRS 353.266 upon approvalapp3.vaIf bythe public employer is within the InterimLegislative FinanceDepartment Committee.of the State Government, the Director of the Legislative Counsel Bureau.

3.

If the public employer is within the Legislative Department of the State Government, the Director of the Legislative Counsel Bureau.

Sec.

2.

NRS 353.264 is hereby amended to read as follows:

The Reserve for Statutory Contingency Accountws:Account is hereby created in the State General Fund.

is hereby created in the State General Fund.

(a) The payment of claims which are obligations of the State pursuant to NRS 41.03435, 41.0347, 62I.025, 176.485, 179.310, 212.040, 212.050, 212.070, 281.174, 282.290, 282.315, 286.462, 293.2504,412.154 293.253,and 293.405,475.235;93.405, 298.710, 304.230, 353.120, 353.262, 412.154(b) andThe 475.235;payment of claims which are obligations of the State pursuant to:

(b)(1) TheChapter payment472 of claimsNRS whicharising arefrom obligationsoperations of the Division of Forestry of the State pursuantDepartment to:of Conservation and Natural Resources directly involving the protection of life and property;

- *SB418* – 3 – (1) Chapter 472 of NRS arising from operations of the Division of Forestry of the State Department of Conservation and Natural Resources directly involving the protection of life and property;

(c) The payment of claims which are obligations of the State pursuant to NRS 41.0349 and 41.037, but only to the extent that the money- in83rd Session (2025) – 3 – claims;n the Fund for Insurance Premiums is insufficient to pay the claims;(d) The payment of claims which are obligations of the State pursuant to NRS 41.950;

(d) The payment of claims which are obligations of the State pursuant to NRS 41.950;

Sec.354.671 1.NRS 3Upon receipt of notification by [the] :lows:

3.

NRS 354.671 is hereby amended to read as follows:

354.671 1.

Upon receipt of notification by [the] :

The notice must be transmitted to the governing body at least 5 days before the date on whichwhi2. the meeting will be held.

thIf an explanation satisfactory to the Committee is not provided at the meeting as requested in the notice and an arrangement is not made for the submission of the payment, the Committee may instruct the Executive Director to request that the State Treasurer withhold from the local government an amount equal to the amount of the delinquent payment from the next distribution from the Local Government Tax Distribution Account, if the local government is otherwise entitled to receive such a distribution, the local school support tax if the local government is a - *SB418*83rd Session (2025) – 4 – 2.of minerals or grants to which the local government may otherwiseceeds be entitled as a distribution from the State.

If an explanation satisfactory to the Committee is not provided at the meeting as requested in the notice and an arrangement is not made for the submission of the payment, the Committee may instruct the Executive Director to request that the State Treasurer withhold from the local government an amount equal to the amount of the delinquent payment from the next distribution from the Local Government Tax Distribution Account, if the local government is otherwise entitled to receive such a distribution, the local school support tax if the local government is a school district or any other property taxes, taxes on the net proceeds of minerals or grants to which the local government may otherwise be entitled as a distribution from the State.

The Superintendent of Public Instruction may deduct from an apportionment otherwise payable to a school district, charter school or university school for profoundly gifted pupils pursuant to subsection 1 or 2 of NRS 387.124 if the school district, chartercha(a) schoolFails orto universityrepay school:an amount due pursuant to subsection 3 of NRS 387.1243.