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- 83rd Session (2025)
Senate Bill No. 418–Committee on Finance
CHAPTER..........
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
retirement, disability or death of employees of public employers in Nevada known as
the Public Employees’ Retirement System. (NRS 286.110) Under existing law, public
employers are required to periodically file payroll reports and remit contributions to
the System with respect to their employees. (NRS 286.460) Existing law provides that
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 the
delinquent amount in accordance with the procedure in existing law for delinque nt
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
which a loca l government may otherwise be entitled for failing to make certain
payments to the Public Employees’ Benefits Program. (NRS 354.671) Section 1 of
this bill changes the procedure by which the System is required to collect delinquent
contributions by specifying: (1) the entity that is required to be notified regarding
delinquent contributions for each type of public employer, including the Department
of Taxation in existing law for local governments; and (2) the source of payment for
those delinquent contributions for each type of public employer, including the
withholding of certain payments to local governments in existing law. Section 1 also
removes the applicability of the procedure to delinquent payroll reports. Sections 2-4
of this bill make conforming changes relating to the revised procedure in section 1.
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. NRS 286.462 is hereby amended to read as follows:
286.462 If a public employer is delinquent by more than 90
days in [submitting a report or ] paying an amount due pursuant to
subsection 3 of NRS 286.460, the System shall submit a written
[complaint] notification of the delinquent amount to :
1. If the public employer is a department, board, commission
or agency of the Executive Department of the State Government,
the State Board of Examiners. Payment of the delinquent amount
must be made from the Reserve for Statutory Contingency
Account upon approval by the State Board of Examiners.
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2. If the public employer is within the Judicial Departmen t of
the State Government, the Office of Court Administrator created
by NRS 1.320. Payment of the delinquent amount must be made
from the Contingency Account created by NRS 353.266 upon
approval by the Interim Finance Committee.
3. If the public employer is within the Legislative Department
of the State Government, the Director of the Legislative Counsel
Bureau. Payment of the delinquent amount must be made from
the Legislative Fund created by NRS 218A.150.
4. Except as otherwise provided in subsection 5, if the public
employer is a local government, the Department of Taxation .
[asking it to take such actions as are necessary ] Payment of the
delinquent amount must be made in accordance with NRS
[354.665.] 354.671.
5. If the public employer is a school district, charter school or
university school for profoundly gifted pupils, the Superintendent
of Public Instruction. Payment of the delinquent amount must be
made in accordance with NRS 387.1244.
Sec. 2. NRS 353.264 is hereby amended to read as follows:
353.264 1. The Reserve for Statutory Contingency Account
is hereby created in the State General Fund.
2. The State Board of Examiners shall administer the Reserve
for Statutory Contingency Account. The money in the Account must
be expended only for:
(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, 293.253, 293.405, 298.710 , 304.230, 353.120, 353.262,
412.154 and 475.235;
(b) The payment of claims which are obligations of the State
pursuant to:
(1) Chapter 472 of NRS arising from operations of the
Division of Forestry of the State Department of Conservation and
Natural Re sources directly involving the protection of life and
property; and
(2) NRS 7.155, 34.750, 176A.640, 179.225, 180.008 and
213.153,
except that claims may be approved for the respective purposes
listed in this paragraph only when the money otherwise appropriated
for those purposes has been exhausted;
(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
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money in 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; and
(e) The payment of claims which are obligations of the State
pursuant to NRS 535.030 arising from remedial actions taken by the
State Engineer when the condition of a dam becomes dangerous to
the safety of life or property.
3. The State Board of Examiners may authorize its Clerk or a
person designated by the Clerk, under such circumstances as it
deems appropriate, to approve, on behalf of the Board, the payment
of claims from the Reserve for Statutory Contingency Account. For
the purpose of exercising any authority granted to the Clerk of the
State Board of Examiners or to the person designated by the Clerk
pursuant to this subsection, any statutory reference to the S tate
Board of Examiners relating to such a claim shall be deemed to refer
to the Clerk of the Board or the person designated by the Clerk.
Sec. 3. NRS 354.671 is hereby amended to read as follows:
354.671 1. Upon receipt of notification by [the] :
(a) The Public Employees’ Retirement System pursuant to
subsection 4 of NRS 286.462 that a local government is delinquent
by more than 90 days on an amount due to the Public Employees’
Retirement System pursuant to subsection 3 of NRS 286.460; or
(b) The Board of the Public Employees’ Benefits Program
pursuant to NRS 287.0434 that a local government is delinquent by
more than 90 days on an amount due to the Public Employees’
Benefits Program pursuant to paragraph (b ) of subsection 4 of
NRS 287.023,
the Executive Director shall notify the governing body that the
presence of a representative of the governing body is required at
the next practicable scheduled meeting of the Committee to explain
the reason that the payment has not been made. The notice must be
transmitted to the governing body at least 5 days before the date on
which the meeting will be held.
2. If an explanation satisfactory to the Committee is not
provided at the meeting as requested in the notic e 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 ne xt
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
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school district or any other property taxes, taxes o n the net proceeds
of minerals or grants to which the local government may otherwise
be entitled as a distribution from the State. Upon receipt of such a
request, the State Treasurer shall withhold that amount from the
payment or any future payment as nece ssary until the State
Treasurer is notified by the Executive Director that the delinquent
payment has been received by the Department, except that the State
Treasurer shall not withhold any payment necessary for the local
government to make a timely paymen t that is due and owing to a
holder. The Department shall transmit the delinquent payment to the
Public Employees’ Retirement System or the Public Employees’
Benefits Program , as applicable, upon receipt.
Sec. 4. NRS 387.1244 is hereby amended to read as follows:
387.1244 1. 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,
charter school or university school:
(a) Fails to repay an amount due pursuant to subsection 3 of
NRS 387.1243. The amount of the deduction from the monthly
apportionment must correspond to the amount due.
(b) Fails to repay an amount due the Department as a result of a
determination that an expenditure was made which violates the
terms of a grant administered by the Department. The amount of
the deduction from the monthly apportionment must corres pond to
the amount due.
(c) Pays a claim determined to be unearned, illegal or
unreasonably excessive as a result of an investigation conducted
pursuant to NRS 387.3037. The amount of the deduction from the
monthly apportionment must correspond to the amo unt of the claim
which is determined to be unearned, illegal or unreasonably
excessive.
More than one deduction from an apportionment otherwise
payable to a school district, charter school or university school for
profoundly gifted pupils may be made pur suant to this subsection if
grounds exist for each such deduction.
2. The Superintendent of Public Instruction may authorize the
withholding of the entire amount of an apportionment otherwise
payable to a school district, charter school or university sch ool for
profoundly gifted pupils pursuant to subsection 1 or 2 of NRS
387.124, or a portion thereof, if the school district, charter school or
university school for profoundly gifted pupils fails to submit a
report or other information that is required to be submitted to the
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Superintendent, State Board or Department pursuant to a statute.
Before authorizing a withholding pursuant to this subsection, the
Superintendent of Public Instruction shall provide notice to the
school district, charter school or unive rsity school for profoundly
gifted pupils of the report or other information that is due and
provide the school district, charter school or university school with
an opportunity to comply with the statute. Any amount withheld
pursuant to this subsection mu st be accounted for separately in the
State Education Fund and must be carried forward to the next fiscal
year.
3. If, after an amount is withheld pursuant to subsection 2, the
school district, charter school or university school for profoundly
gifted pu pils subsequently submits the report or other information
required by a statute for which the withholding was made, the
Superintendent of Public Instruction shall immediately authorize the
payment of the amount withheld to the school district, charter school
or university school for profoundly gifted pupils.
4. The Superintendent of Public Instruction shall deduct
from an apportionment otherwise payable to a school district,
charter school or university school for profoundly gifted pupils
pursuant to subs ection 1 or 2 of NRS 387.124 if the
Superintendent receives written notification from the Public
Employees’ Retirement System pursuant to NRS 286.462 that the
school district, charter school or university school failed to pay an
amount due pursuant to subs ection 3 of NRS 286.460. The
amount of the deduction from the monthly apportionment must
correspond to the amount that is specified in the written
notification.
5. A school district, charter school or university school for
profoundly gifted pupils may appeal to the State Board a decision of
the Superintendent of Public Instruction to deduct or withhold from
an apportionment pursuant to this section. The Secretary of the State
Board shall place the subject of the appeal on the agenda of the next
meeting for consideration by the State Board.
Sec. 5. This act becomes effective upon passage and approval.
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