AB 444 — Revises provisions relating to governmental administration. (BDR 18-772)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on April 21, 2025) FIRST REPRINT A.B.

444444–Assemblymember AHafen SSEMBLYJoint BSponsor: ILLN O.

444–ASSEMBLYMEMBERSenator HAFENNeal MCHAPTER.......... ARCH 17, 2025 ____________ JOINT SPONSOR :

ENATOR N EAL ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to governmental administration.

(BDR 18-772) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

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

The Nevada Administrative Procedure Act establishes procedural requirements offor the Executiveadoption Department of theadministrative Stateregulations Government,by with certain exceptions.oyees (NRS 233B.010-233B.120) Under the Act, such state agencies, officers and employees are required to take certain actions to determine the impact of a proposed regulation on for-profit businesses that employ less than 150 employees before adopting a regulation that is likely to impose a direct and significant economic burden upon such a small business or that directly restricts the formation,Executive ActDepartment furtherof requires that after such actions are taken, the stateState agency,Government, officerwith orcertain employeeexceptions. is required to prepare a small business impact statement and prescribes the information required to be included in the statement.

(NRSemployees 233B.0608,are 233B.0609)required Theto Acttake alsocertain requiresactions to determine the impact of a proposed regulation on for-profit businesses that anemploy agency,less than 150 employees before holdingadopting ana initialregulation publicthat hearingis onlikely to impose a proposeddirect regulation,and conductsignificant ateconomic leastburden oneupon workshopsuch toa solicitsmall business or that directly restricts the regulation.formation, operation or expansion of such a small business.

(NRS 233B.061)233B.0382, Existing233B.0608) lawThe alsoAct establishesfurther proceduraldressedrequires inthat -after *AB444_R1*such –actions 2are –taken, existingthe lawstate toagency, meanofficer anor ordinanceemployee and,is withrequired certainto exceptions,prepare ana actionsmall takenbusiness thatimpact imposes,statement increasesand orprescribes changes the basisinformation forrequired theto calculationbe ofincluded ain feethe thatstatement. is paid by a for-profit business.

(NRS 237.030-237.150)233B.0608, One233B.0609) ofThe theAct proceduralalso prerequisitesrequires for the adoption by a local government of such a rule that isan likelyagency, tobefore imposeholding aan directinitial andpublic significantcomments economicfrom burdeninterested uponpersons aon businessone or directlymore restrictsgeneral thetopics formation,to operationbe oraddressed expansionin of a business is the notificationregulation. of chambers of commerce and trade associations of the proposed rule.

(NRS 237.080)233B.061) Existing law requiresalso regardingestablishes suchprocedural requirements for the adoption by a proposedlocal rule:government of a rule, which is defined in existing law to mean an ordinance and, with certain exceptions, an action taken that imposes, increases or changes the basis for the calculation of a fee that is paid by a for-profit business.

(NRS 237.030-237.150) One of the procedural prerequisites for the adoption by a local government of such a rule that is likely to impose a direct and significant economic burden upon a business or directly restricts the formation, operation or expansion of a business is the notification of chambers of commerce inclusion in the business impact statement prepared by the local governmentuires regarding such a proposed rule:

Section 2 of this bill similarly impactrequires statementthe forstate theagency, proposedofficer regulationor theemployee totalto numberinclude ofin the small businessesbusiness likely to be affected by the proposed regulation and a list of any chambers ofofses commerce and trade associations notified pursuant to section 1.

Section 2.5 of this - 83rd Session (2025) – 2 – bill requires an agency to notify by electronic mail chambers of commerce, trade associations or owners and officers of businesses which are likely be affected by a proposed regulation of the time and place set for a workshop to solicit comments from interested persons on one or more general topics to be addressed in the listregulation. of local chambers of commerce, trade associations and owners and officers of businesses and to update the list not later than January 31 of each year.

Section 2.5 also requires an agency to maintain an electronic mailing businesses and to update the list not later than January 31 of each year.icers of Under existing law, a local government is not required to comply with the procedural requirements for adopting a rule if the local government is taking action that imposes, increases or changes the basis for the calculation of an impact fee or sales and use taxes.

(NRS 237.060) Section 3 of this bill eliminates these exemptions, thereby requiring a local government to comply with those procedural requirements with respect to a proposed rule that imposes, increases or changes the clarifiesbasiExisting that,law forfurther purposesprovides that any action of thea procedurallocal government to adopt a proposed rule in violation of the requirements for adopting asuch rule, a “rule”rule is either:void.

(1) an ordinance by the adoption of which the governing body of a local government exercises legislative powers;

or (2) an action taken by the governing body of a local government that imposes, increases or changes the basis for the calculation of a fee that is paid in whole or in substantial part by businesses.

(See, e.g., Castellanos v.

City of Reno, 629 F.

Supp.

3d 1031, 1042 (D.

Nev.

2022) (construing NRS 237.060 “as disjunctive because the alternative is contrary to comExisting law further provides that any action of a local government to adopt a proposed rule in violation of the requirements for adopting such a rule is void.

-EXPLANATION *AB444_R1* – 3Matter –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:

(a)- Insofar83rd asSession practicable,(2025) consult– with3 owners– and officers of small businesses that are likely to be affected by the proposed of regulation.

regulation[(c)] on(d) smallConsider businesses,methods including,to withoutreduce limitation:osedthe (1)impact Simplifyingof the proposed regulation;regulation on small businesses, including, without limitation:

(2)(1) EstablishingSimplifying differentthe standardsproposed ofregulation; compliance for a small business;

and(2) (3)Establishing different standards of compliance for a small busines(3) Modifying a fee or fine set forth in the regulation so that a small business is authorized to pay a lower fee or fine.

- *AB444_R1* – 4 – 3.

The director, executive head or other person who is responsible for the agency shall sign the statement certifying that, to the best of his or her knowledge or belief, a concerted effort was made to determine the impact of the proposed regulation on small businessesaccurate.s and that the information contained in the statement is accurate.4.

4.

Sec.- 83rd Session (2025) – 4 – 233B.0609 1.S 233BA small business impact statement prepared: