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- 83rd Session (2025)
Assembly Bill No. 442–Assemblymembers Watts, Nguyen, Mosca,
Brown-May; D’Silva, Gallant, O’Neill and Roth
Joint Sponsors: Senators Nguyen, Flores; and Stone
CHAPTER..........
AN ACT relating to state financial administration; requiring a state
grant-making entit y to provide written notice to a private
nonprofit corporation when a payment under a gr ant
agreement is not made within a certain period of time;
authorizing the Office of Federal Assistance to coordinate
and collaborate with state grant -making entities on certain
topics related to grants; revising provisions governing the
State Plan for Maximizing Federal Assistance; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Section 9 of this bill requires a state entity that makes a grant to a private
nonprofit corporation, which is defined in section 7 of this bill as a “state grant -
making entity,” that does not make a payment that is due and payable under a
written grant agreement within 30 calendar days after receipt of a proper invoice to :
(1) provide written notice to the private nonprofit corporati on of the reason for the
delay in making the payment; and (2) submit an annual compilation of such records
to the Director of the Office of Finance and the Director of the Legislative Counsel
Bureau for transmittal to the Interim Finance Committee. Sections 2-6 of this bill
define certain terms relating to these requirements.
Existing law requires the Director of the Office of Federal Assistance, in
consultation with the Nevada Advisory Council on Federal Assistance, to develop a
State Plan for Maximizing Federal Assistance which is required to include, without
limitation, methods for the effective administration of grants. (NRS 223.486)
Section 11.7 of this bill requires the State Plan to include methods for the
administration of advanced payments of grants to private nonprofit corporations.
Section 11.3 of this bill authorizes the Office to coordinate and collaborate with
state grant-making entities to identify certain policies, procedures and best practices
that are related to the advanced payment of a g rant and methods for compliance
with certain federal regulations relating to grants . Section 11.3 authorizes the
Director to adopt regulations to carry out such coordination and collaboration.
Section 11.5 of this bill applies the definitions in existing l aw governing the Office
to the provisions of section 11.3.
Section 14 of this bill makes this bill effective on July 1, 2026, and section 13
of this bill excludes from the requirements of this bill grants which are executed,
renewed or extended before July 1, 2026.
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EXPLANATION – Matter in bolded italics is new; 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:
Section 1. Chapter 353 of NRS is hereby amended by adding
thereto the provisions set forth as sections 2 to 11, inclusive, of this
act.
Sec. 2. As used in sections 2 to 9, inclusive, of this act, unless
the context otherwise requires, the words and terms defined in
sections 3 to 7, inclusive, of this act have the meanings ascribed to
them in those sections.
Sec. 3. 1. “Grant” means a legal i nstrument of financial
assistance between a state grant -making entity and a private
nonprofit corporation that is:
(a) Used to enter into a relationship for which the principal
purpose is to transfer anything of value from the state grant -
making entity to the private nonprofit corporation to carry out a
public purpose authorized by law and not to acquire real property
or services for the direct benefit or use of the state grant -making
entity;
(b) Used to provide for one or more payments in
reimbursement f or services or other performance under the
agreement on a scheduled or other incremental basis; and
(c) Distinguished from a cooperative agreement in that it does
not provide for substantial involvement between the state grant -
making entity and the privat e nonprofit corporation in carrying
out the activity contemplated by the award.
2. The term does not include an instrument that provides
only:
(a) Direct government cash assistance to a person;
(b) A subsidy;
(c) A loan;
(d) A loan guarantee;
(e) Insurance;
(f) State funding that is required annually and is calculated
based on a formula set in statute; or
(g) Proceeds from a general obligation bond.
Sec. 4. “Payment” includes all processing and authorization
required by law from the State Board of Examiners, the Director
of the Office of Finance and the State Controller.
Sec. 5. “Private nonprofit corporation” means an
organization that has been granted tax -exempt status by the
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Internal Revenue Service pursuant to the provisions of section
501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3).
Sec. 6. “Proper invoice” means a bill, a request for
reimbursement, a written document or an elec tronic submission
readable by the state grant -making entity that is provided by a
private nonprofit corporation and which:
1. Requests an eligible amount that is due and payable by law
under a written grant agreement with the private nonprofit
corporation; and
2. Includes:
(a) Sufficient information to identify the grant agreement; and
(b) Any additional information or documentation required by
the grant agreement or for compliance with 2 C.F.R. Part 200 or
any other state or federal law or regulation.
Sec. 7. “State grant -making entity” means an agency,
bureau, board, commission, department, division, officer or
employee of the Executive Department of the State Government
that makes a grant. The term does not include the Nevada System
of Higher Education or any institution of the Nevada System of
Higher Education.
Secs. 8 and 8.5. (Deleted by amendment.)
Sec. 9. 1. If a state grant -making entity does not make a
payment for an amount that is due and payable by law under a
written grant agreement with a private nonprofit corporation
within 30 calendar days after receipt of a prope r invoice, the state
grant-making entity shall, as soon as practicable after that 30 -day
period, provide written notice to the private nonprofit corporation
of the reason for the delay in making the payment.
2. On or before October 1 of each year, the state grant -
making entity shall submit to the Director of the Office of Finance
and the Director of the Legislative Counsel Bureau for transmittal
to the Interim Finance Committee a compilation of the notices
provided pursuant to subsection 1 during the immediately
preceding fiscal year.
Secs. 10 and 11. (Deleted by amendment.)
Sec. 11.3. Chapter 223 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. The Office may coordinate and collaborate with state
grant-making entities to identify:
(a) Existing policies and procedures utilized by state grant-
making entities to administer advanced payments of grants;
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(b) Best practices for monitoring and assessing the risks
associated with administration of advanced payment s of grants ;
and
(c) Methods for state grant-making entities to comply with 2
C.F.R. Part 200 and a ny other federal regulations governing the
administration of grants.
2. The Director may adopt regulations to carry out the
provisions of this section.
3. As used in this section, “state grant-making entity” has the
meaning ascribed to it in section 7 of this act.
Sec. 11.5. NRS 223.460 is hereby amended to read as follows:
223.460 As used in NRS 223.460 to 223.498, inclusive, and
section 11.3 of this act, unless the context otherwise requires, the
words and terms defined in NRS 223.462 to 223.470, inclusive,
have the meanings ascribed to them in those sections.
Sec. 11.7. NRS 223.486 is hereby amended to read as follows:
223.486 1. The Director shall, in consultation with the
Nevada Advisory Council on Federal Assistance created by NRS
358.020, develop and may periodically revise a State Plan for
Maximizing Federal Assistance, which must identify:
(a) Methods for expanding opportunities for obtaining federal
assistance, includi ng, without limitation, expanding opportunities
for obtaining matching funds for federal assistance through the
Nevada Grant Matching Program created by NRS 223.490;
(b) Methods for streamlining process, regulatory, structural and
other barriers to the ac quisition of federal assistance that exist at
each level of federal, state or local government;
(c) Methods for the effective administration of grants, including,
without limitation, the administration of advanced payments of
grants to private nonprofit c orporations and best practices relating
to indirect cost allocation;
(d) Opportunities for:
(1) Reducing administrative costs associated with obtaining
federal assistance; and
(2) Coordination between state agencies, local agencies,
tribal governments and nonprofit organizations to avoid duplication
and achieve common goals;
(e) Specific tasks which must be performed to improve the
administration of grants and maximize the amount of federal
assistance received by this State and a schedule for impleme nting
any such tasks;
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(f) Performance metrics and targets relating to obtaining and
maximizing federal assistance and improving the administration of
grants; and
(g) Best practices for considering whether to respond to a grant
opportunity, including, without limitation, the monetary and
programmatic cost of implementing a grant.
2. The Director shall post the State Plan for Maximizing
Federal Assistance on the Internet website maintained by the Office.
Sec. 12. The provisions of NRS 218D.380 do not apply to any
provision of this act which adds or revises a requirement to submit a
report to the Legislature.
Sec. 13. The provisions of this act apply only to a grant, as
defined in section 3 of this act, which is executed, renewed or
extended on or after July 1, 2026.
Sec. 14. This act becomes effective on July 1, 2026.
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