S.B. 418
- *SB418*
SENATE BILL NO. 418–COMMITTEE ON FINANCE
MARCH 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: 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.
AN ACT relating to the Public Employees’ Retirement System;
revising provisions relating to the collection of delinquent
contributions by the System; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Existing law establishes a system of retirement that provides benefits for the 1
retirement, disability or death of employees of public employers in Nevada known as 2
the Public Employees’ Retirement System. (NRS 286.110) Under existing law, public 3
employers are required to periodically file payroll reports and remit contributions to 4
the System with respect to their employees. (NRS 286.460) Existing law provides that 5
if a public employer is delinquent by more than 90 days in submitting a payroll report 6
or remitting contributions, the System is required to submit a written complaint to the 7
Department of Taxation asking the Department to take necessary actions to collect the 8
delinquent amount in accordance with the procedure in existing law for delinquent 9
reports of local governments, which includes the withholding of certain payments to 10
which a local government may otherwise be entitled. (NRS 286.462, 354.665) 11
Existing law also provides a procedure for the withholding of certain payments to 12
which a local government may otherwise be entitled for failing to make certain 13
payments to the Public Employees’ Benefits Program. (NRS 354.671) Section 1 of 14
this bill changes the procedure by which the System is required to collect delinquent 15
contributions by specifying: (1) the entity that is required to be notified regarding 16
delinquent contributions for each type of public employer, including the Department 17
of Taxation in existing law for local governments; and (2) the source of payment for 18
those delinquent contributions for each type of public employer, including the 19
withholding of certain payments to local governments in existing law. Section 1 also 20
removes the applicability of the procedure to delinquent payroll reports. Sections 2-4 21
of this bill make conforming changes relating to the revised procedure in section 1. 22
– 2 –
- *SB418*
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 286.462 is hereby amended to read as follows: 1
286.462 If a public employer is delinquent by more than 90 2
days in [submitting a report or] paying an amount due pursuant to 3
subsection 3 of NRS 286.460, the System shall submit a written 4
[complaint] notification of the delinquent amount to : 5
1. If the public employer is a department, board, commission 6
or agency of the Executive Department of the State Government, 7
the State Board of Examiners. Payment of the delinquent amount 8
must be made from the Reserve for Statutory Contingency 9
Account upon approval by the State Board of Examiners. 10
2. If the public employer is within the Judicial Department of 11
the State Government, the Office of Court Administrator created 12
by NRS 1.320. Payment of the delinquent amount must be made 13
from the Contingency Account created by NRS 353.266 upon 14
approval by the Interim Finance Committee. 15
3. If the public employer is within the Legislative Department 16
of the State Government, the Director of the Legislative Counsel 17
Bureau. Payment of the delinquent amount must be made from 18
the Legislative Fund created by NRS 218A.150. 19
4. Except as otherwise provided in subsection 5, if the public 20
employer is a local government, the Department of Taxation . 21
[asking it to take such actions as are necessary] Payment of the 22
delinquent amount must be made in accordance with NRS 23
[354.665.] 354.671. 24
5. If the public employer is a school district, charter school or 25
university school for profoundly gifted pupils, the Superintendent 26
of Public Instruction. Payment of the delinquent amount must be 27
made in accordance with NRS 387.1244. 28
Sec. 2. NRS 353.264 is hereby amended to read as follows: 29
353.264 1. The Reserve for Statutory Contingency Account 30
is hereby created in the State General Fund. 31
2. The State Board of Examiners shall administer the Reserve 32
for Statutory Contingency Account. The money in the Account must 33
be expended only for: 34
(a) The payment of claims which are obligations of the State 35
pursuant to NRS 41.03435, 41.0347, 62I.025, 176.485, 179.310, 36
212.040, 212.050, 212.070, 281.174, 282.290, 282.315, 286.462, 37
293.2504, 293.253, 293.405, 298.710, 304.230, 353.120, 353.262, 38
412.154 and 475.235; 39
(b) The payment of claims which are obligations of the State 40
pursuant to: 41
– 3 –
- *SB418*
(1) Chapter 472 of NRS arising from operations of the 1
Division of Forestry of the State Department of Conservation and 2
Natural Resources directly involving the protection of life and 3
property; and 4
(2) NRS 7.155, 34.750, 176A.640, 179.225, 180.008 and 5
213.153, 6
except that claims may be approved for the respective purposes 7
listed in this paragraph only when the money otherwise appropriated 8
for those purposes has been exhausted; 9
(c) The payment of claims which are obligations of the State 10
pursuant to NRS 41.0349 and 41.037, but only to the extent that the 11
money in the Fund for Insurance Premiums is insufficient to pay the 12
claims; 13
(d) The payment of claims which are obligations of the State 14
pursuant to NRS 41.950; and 15
(e) The payment of claims which are obligations of the State 16
pursuant to NRS 535.030 arising from remedial actions taken by the 17
State Engineer when the condition of a dam becomes dangerous to 18
the safety of life or property. 19
3. The State Board of Examiners may authorize its Clerk or a 20
person designated by the Clerk, under such circumstances as it 21
deems appropriate, to approve, on behalf of the Board, the payment 22
of claims from the Reserve for Statutory Contingency Account. For 23
the purpose of exercising any authority granted to the Clerk of the 24
State Board of Examiners or to the person designated by the Clerk 25
pursuant to this subsection, any statutory reference to the State 26
Board of Examiners relating to such a claim shall be deemed to refer 27
to the Clerk of the Board or the person designated by the Clerk. 28
Sec. 3. NRS 354.671 is hereby amended to read as follows: 29
354.671 1. Upon receipt of notification by [the] : 30
(a) The Public Employees’ Retirement System pursuant to 31
subsection 4 of NRS 286.462 that a local government is delinquent 32
by more than 90 days on an amount due to the Public Employees’ 33
Retirement System pursuant to subsection 3 of NRS 286.460; or 34
(b) The Board of the Public Employees’ Benefits Program 35
pursuant to NRS 287.0434 that a local government is delinquent by 36
more than 90 days on an amount due to the Public Employees’ 37
Benefits Program pursuant to paragraph (b) of subsection 4 of 38
NRS 287.023, 39
the Executive Director shall notify the governing body that the 40
presence of a representative of the governing body is required at 41
the next practicable scheduled meeting of the Committee to explain 42
the reason that the payment has not been made. The notice must be 43
transmitted to the governing body at least 5 days before the date on 44
which the meeting will be held. 45
– 4 –
- *SB418*
2. If an explanation satisfactory to the Committee is not 1
provided at the meeting as requested in the notice and an 2
arrangement is not made for the submission of the payment, the 3
Committee may instruct the Executive Director to request that the 4
State Treasurer withhold from the local government an amount 5
equal to the amount of the delinquent payment from the next 6
distribution from the Local Government Tax Distribution Account, 7
if the local government is otherwise entitled to receive such a 8
distribution, the local school support tax if the local government is a 9
school district or any other property taxes, taxes on the net proceeds 10
of minerals or grants to which the local government may otherwise 11
be entitled as a distribution from the State. Upon receipt of such a 12
request, the State Treasurer shall withhold that amount from the 13
payment or any future payment as necessary until the State 14
Treasurer is notified by the Executive Director that the delinquent 15
payment has been received by the Department, except that the State 16
Treasurer shall not withhold any payment necessary for the local 17
government to make a timely payment that is due and owing to a 18
holder. The Department shall transmit the delinquent payment to the 19
Public Employees’ Retirement System or the Public Employees’ 20
Benefits Program , as applicable, upon receipt. 21
Sec. 4. NRS 387.1244 is hereby amended to read as follows: 22
387.1244 1. The Superintendent of Public Instruction may 23
deduct from an apportionment otherwise payable to a school district, 24
charter school or university school for profoundly gifted pupils 25
pursuant to subsection 1 or 2 of NRS 387.124 if the school district, 26
charter school or university school: 27
(a) Fails to repay an amount due pursuant to subsection 3 of 28
NRS 387.1243. The amount of the deduction from the monthly 29
apportionment must correspond to the amount due. 30
(b) Fails to repay an amount due the Department as a result of a 31
determination that an expenditure was made which violates the 32
terms of a grant administered by the Department. The amount of 33
the deduction from the monthly apportionment must correspond to 34
the amount due. 35
(c) Pays a claim determined to be unearned, illegal or 36
unreasonably excessive as a result of an investigation conducted 37
pursuant to NRS 387.3037. The amount of the deduction from the 38
monthly apportionment must correspond to the amount of the claim 39
which is determined to be unearned, illegal or unreasonably 40
excessive. 41
More than one deduction from an apportionment otherwise 42
payable to a school district, charter school or university school for 43
profoundly gifted pupils may be made pursuant to this subsection if 44
grounds exist for each such deduction. 45
– 5 –
- *SB418*
2. The Superintendent of Public Instruction may authorize the 1
withholding of the entire amount of an apportionment otherwise 2
payable to a school district, charter school or university school for 3
profoundly gifted pupils pursuant to subsection 1 or 2 of NRS 4
387.124, or a portion thereof, if the school district, charter school or 5
university school for profoundly gifted pupils fails to submit a 6
report or other information that is required to be submitted to the 7
Superintendent, State Board or Department pursuant to a statute. 8
Before authorizing a withholding pursuant to this subsection, the 9
Superintendent of Public Instruction shall provide notice to the 10
school district, charter school or university school for profoundly 11
gifted pupils of the report or other information that is due and 12
provide the school district, charter school or university school with 13
an opportunity to comply with the statute. Any amount withheld 14
pursuant to this subsection must be accounted for separately in the 15
State Education Fund and must be carried forward to the next fiscal 16
year. 17
3. If, after an amount is withheld pursuant to subsection 2, the 18
school district, charter school or university school for profoundly 19
gifted pupils subsequently submits the report or other information 20
required by a statute for which the withholding was made, the 21
Superintendent of Public Instruction shall immediately authorize the 22
payment of the amount withheld to the school district, charter school 23
or university school for profoundly gifted pupils. 24
4. The Superintendent of Public Instruction shall deduct 25
from an apportionment otherwise payable to a school district, 26
charter school or university school for profoundly gifted pupils 27
pursuant to subsection 1 or 2 of NRS 387.124 if the 28
Superintendent receives written notification from the Public 29
Employees’ Retirement System pursuant to NRS 286.462 that the 30
school district, charter school or university school failed to pay an 31
amount due pursuant to subsection 3 of NRS 286.460. The 32
amount of the deduction from the monthly apportionment must 33
correspond to the amount that is specified in the written 34
notification. 35
5. A school district, charter school or university school for 36
profoundly gifted pupils may appeal to the State Board a decision of 37
the Superintendent of Public Instruction to deduct or withhold from 38
an apportionment pursuant to this section. The Secretary of the State 39
Board shall place the subject of the appeal on the agenda of the next 40
meeting for consideration by the State Board. 41
Sec. 5. This act becomes effective upon passage and approval. 42
H