AB 507 — Revises provisions relating to state financial administration. (BDR 31-933)

A.B.Assembly Bill No.

507507–Committee Aon SSEMBLYWays Band ILLNMeans O.CHAPTER..........

507–COMMITTEE ON W AYS AND M EANS M ARCH 24, 2025 ____________ Referred to Committee on Ways and Means SUMMARY—Revises provisions relating to state financial administration.

(BDR 31-933) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

The State Budget Act sets forth the process for the preparation and submission of the proposed biennial budget for the Executive Department of the State Government.department, institution or agency of the Executive Department, with certainny exceptions, is authorized, as a result of changed conditions, to request a revision to a work program within its budget.

(NRSSuch 353.150-353.246)a Underrevision theis Staterequired Budgetto Act,be theapproved heador ofdisapproved anyby department,the institutionGovernor or agencythe Chief of the ExecutiveBudget Department,Division withof certainthe aOffice workof programFinance withinin itsthe budget.Office of the Governor.

SuchIn aaddition, revisionthe department, institution or agency is required tounder bethe approvedState orsionBudget Act to disapprovedobtain byapproval from the GovernorInterim Finance Committee, except in certain limited circumstances, before revising a work will increase or thedecrease Chiefby of20 thepercent Budgetor Division$350,000, ofwhichever theis Officeless, ofthesion Financeexpenditure inlevel approved by the OfficeLegislature for any of the Governor.allotments within the work program.

In addition, the department, institution or agency is required under the State Budget Act to obtain approval from the Interim Finance Committee, except in certain limited circumstances, before revising a work program in an amount more than $75,000 if the cumulative impact of the revision will increase or decrease by 20 percent or $350,000, whichever is less, the work program.

(1) clarifies that the $75,000 thresholdthethreshold applies to any proposed revision to one or more of the categories of expense within the work program;

and (2) prohibits the dividing of a proposed revision of a work program into separate requests to avoid the requirement of approval by the Interim revision of a work program to require approval by the Interim Finance Committee.Committee, the request must:

Therefore,(1) withpropose certain exceptions, for a request for the revision ofin aone workor programmore toof require approval by the Interimcategories Financeof Committee,expense within the work program in a total amount of more than $75,000, regardless of anynseany other revisions of the work program during the fiscal year;

and (2) cumulatively, based on other revisions of the work program during the fiscal year, increase or decrease by 20 percent or $350,000, whichever is less, the expenditure level - *AB507* – 2 – approved by the Legislature for any of the categories of expense within the work program.

EXPLANATION – Matter in bolded italics is new;

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

The head of any department, institution or agency of the Executive Department of the State Government, whenever he or she deems it necessary because of changed conditions, may request the revision of the work program of his or her department, institution or agency at any time during the fiscal year, and submit the proposed revised work program to the Governor through the - 83rd Session (2025) – 2 – Chief with a request for revision of the [allotments] work program for the remainder of that fiscal year.

3.every request for revision must be approved or disapproved iney, writing by the Governor or the Chief, if the Governor has by written instrument delegated this authority to the Chief.

Before encumbering any appropriated or authorized money, every request for revision must be approved or disapproved in writing by the Governor or the Chief, if the Governor has by written instrument delegated this authority to the Chief.

and (b) Would, when considered with all other changes in [allotments for] that work program made pursuant to subsections 1, 2 and 3 and NRS 353.215, increase or decrease by 20 percent or $350,000, whichever is less, the expenditure level approved by the Legislature for any of the [allotments] categories of expense within the work program,  the request must be approved as provided in subsection 5 before any appropriated or authorized money may be encumbered for the revision.

(a) Is necessary because of an emergency as defined in NRS 353.263 or for the protection of life or property, the Governor shall take reasonable and proper action to approve it and shall report the action, and his or her reasons for determining that immediate action was necessary, to the Interim Finance Committee at its first meeting - *AB507* – 3 – after the action is taken.

- 83rd Session (2025) – 3 – (c) Does not qualify pursuant to paragraph (a) or (b), it must be submitted to the Interim Finance Committee.

Except as otherwise provided in NRS 353.3375, the Interim Finance Committee has 45 days after the request is submitted to its Secretary within which to consider the revision.45-day period shall be deemed approved.

Any request which is not considered within the6. 45-day period shall be deemed approved.

6.

H~~~~~ 25 - *AB507*83rd Session (2025)