[Rev. 11/21/2013 10:16:17 AM--2013]

CHAPTER 232B - LEGISLATIVE REVIEW OF PUBLIC AGENCIES

GENERAL PROVISIONS

NRS 232B.010        “Agency” defined.

NRS 232B.020        Legislative findings.

NRS 232B.040        Review of agencies by Legislative Commission: Appointment of committees or subcommittees; report to Legislature.

NRS 232B.051        Considerations in determining need for continued operation of agency.

NRS 232B.061        Considerations in determining whether agency is operating efficiently and effectively.

NRS 232B.070        Consideration of agency’s statement, conclusion, recommendations and evaluation.

NRS 232B.080        Hearings; report of Legislative Counsel Bureau; burden of proof.

NRS 232B.090        Alternative recommendations of Legislative Commission to Legislature.

NRS 232B.100        Termination of agency: Winding up affairs; limitation upon contracts; disposal of property, assets and liabilities.

SUNSET SUBCOMMITTEE OF THE LEGISLATIVE COMMISSION

NRS 232B.210        Creation; membership; election of Chair and Vice Chair; vacancies; meetings; quorum; compensation; expenses.

NRS 232B.220        Review of certain boards and commissions.

NRS 232B.230        Submission of required information by boards and commissions subject to review; assistance from Legislative Counsel Bureau.

NRS 232B.235        Audit of certain boards and commissions: Recommendation; duties of Legislative Commission.

NRS 232B.240        Duty to conduct public hearings; consideration of certain reports; burden of proving public need for continued existence of board or commission.

NRS 232B.250        Recommendations.

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GENERAL PROVISIONS

      NRS 232B.010  “Agency” defined.  As used in NRS 232B.010 to 232B.100, inclusive, unless the context otherwise requires, “agency” means any public agency which the Legislature has designated to be the subject of a review by the Legislative Commission.

      (Added to NRS by 1979, 1838; A 2011, 2996)

      NRS 232B.020  Legislative findings.  The Legislature finds that:

      1.  There has been a substantial increase in the number of agencies within state government, and a corresponding growth of administrative programs and regulations.

      2.  The proliferation of agencies, programs and regulations has occurred without sufficient accountability for the programs and regulations by the agencies or review by the Legislature.

      3.  By establishing a method of terminating, continuing or re-establishing agencies in state government, the Legislature will be able to evaluate the need for continuing present agencies or creating new agencies.

      (Added to NRS by 1979, 1838)

      NRS 232B.040  Review of agencies by Legislative Commission: Appointment of committees or subcommittees; report to Legislature.

      1.  The Legislative Commission shall conduct the reviews of agencies directed by the Legislature to determine whether each agency should be terminated, consolidated with another agency or continued. The Legislative Commission shall begin each review on July 1 of the second year preceding the scheduled date for terminating the agency.

      2.  The Legislative Commission shall determine the membership and method of appointment of committees or subcommittees appointed to carry out the reviews.

      3.  The Legislative Commission shall transmit its review and recommendations to the Legislature at the beginning of its next regular session.

      (Added to NRS by 1979, 1839; A 1981, 226)

      NRS 232B.051  Considerations in determining need for continued operation of agency.  In conducting its review of an agency, the Legislative Commission shall obtain, and consider in determining the need for the continued operation of the agency, answers to the following questions:

      1.  Is there a reasonable relationship between this exercise of the state’s police power and the protection of the public health, safety or welfare? Would the absence or reduction of regulation by this agency significantly harm or endanger the public health, safety or welfare?

      2.  Is there another, less restrictive, method of regulation which could adequately protect the public?

      3.  Does regulation have the effect of directly or indirectly increasing the cost of any goods or services involved and, if so, is the increase justified by the protection provided to the public?

      4.  Are any of the agency’s programs or objectives duplicated by other governmental agencies or nonprofit organizations or by private enterprise?

      (Added to NRS by 1981, 224)

      NRS 232B.061  Considerations in determining whether agency is operating efficiently and effectively.  After the Legislative Commission considers the answers to questions about the need for the agency, the Legislative Commission shall:

      1.  Obtain, and consider in determining whether the agency is operating efficiently, answers to the following questions:

      (a) Has the agency operated in the public interest? To what extent have the agency’s operations in the public interest been impeded or aided by existing statutes and by other circumstances, including its budget and personnel?

      (b) Has the agency handled formal complaints from the public concerning persons subject to its regulation efficiently and with dispatch?

      (c) Has the agency required or requested persons whom it regulates to assess problems which affect the public in the profession, business or occupation and to report the effect on the public of regulations and decisions of the agency, particularly regarding improvements in economy and quality of service?

      (d) Has the agency encouraged participation by the public in making regulations and carrying out its responsibilities?

      (e) Does the agency have or require the use of any unnecessary forms, reports or recordkeeping?

      2.  Obtain, and consider in determining whether the agency is operating effectively, answers to the following questions:

      (a) Are the regulatory statutes well constructed and free from ambiguity and redundancy?

      (b) Does the law provide clear objectives from the agency? Is the agency effectively achieving its statutory objectives and do the results reflect the intent of the law?

      (c) Has the agency recommended changes to the law which would benefit the public rather than the persons it regulates?

      (d) Do the regulations of the agency accurately reflect the intent of the Legislature and are they in the least restrictive form?

      (e) Has the agency restricted the entry of qualified applicants? Has it permitted only qualified applicants to serve the public?

      (Added to NRS by 1981, 225)

      NRS 232B.070  Consideration of agency’s statement, conclusion, recommendations and evaluation.  As part of the review of each agency, the Legislative Commission shall obtain and consider the agency’s:

      1.  Statement of its objectives and programs.

      2.  Conclusion concerning the effectiveness of its objectives and programs.

      3.  Recommendations for statutory changes which are necessary for the agency to carry out its objectives and programs.

      4.  Evaluation of its objectives and programs for the ensuing fiscal year.

      (Added to NRS by 1979, 1839; A 1981, 226)

      NRS 232B.080  Hearings; report of Legislative Counsel Bureau; burden of proof.

      1.  The Legislative Commission shall conduct public hearings for the purpose of obtaining comments on, and may require the Legislative Counsel Bureau to submit reports on, the need for the continued operation of an agency, and its efficiency and effectiveness.

      2.  At any hearing held pursuant to NRS 232B.010 to 232B.100, inclusive, information may be presented by:

      (a) Members of the general public;

      (b) Any person who is regulated by the agency; and

      (c) Representatives of the agency.

      3.  The Legislative Commission shall consider any report submitted to it by the Legislative Counsel Bureau.

      4.  An agency has the burden of proving that there is a public need for its continued existence or regulatory function.

      (Added to NRS by 1979, 1840; A 1981, 227; 2011, 2996)

      NRS 232B.090  Alternative recommendations of Legislative Commission to Legislature.

      1.  Once the Legislative Commission has obtained answers to the questions concerning the public’s need for an agency and the efficiency and effectiveness of its operation, the Legislative Commission shall determine whether its recommendation to the Legislature should be that the agency be terminated, consolidated with another agency or continued.

      2.  If the Legislative Commission determines to recommend the termination of the agency, its recommendation must include suggestions for appropriate direct legislative action, if any, which is made necessary or desirable by the termination of the agency or by the absence of regulation by any other administrative agency.

      3.  If the Legislative Commission determines to recommend the consolidation or continuation of the agency, its recommendation must include suggestions for appropriate direct legislative action, if any, which would make the operation of the agency or its successor more efficient or effective.

      (Added to NRS by 1981, 225)

      NRS 232B.100  Termination of agency: Winding up affairs; limitation upon contracts; disposal of property, assets and liabilities.

      1.  An agency may continue in existence until July 1 of the year immediately succeeding the effective date of its termination for the purpose of winding up its affairs, unless the agency has been consolidated with another.

      2.  The powers and duties of an agency are not abrogated or otherwise limited during the period between its termination and the following July 1, but no agency may enter into or let any contract, the performance of which extends beyond July 1 of the year immediately following the year in which it is terminated.

      3.  The Director of the Department of Administration is responsible for disposing of any property of a terminated agency. All assets and liabilities of an agency which has been consolidated with another must be taken over by the successor agency. Money in the State Treasury which is held in a special fund for an agency which has been terminated reverts to the State General Fund on July 1 of the year immediately following the year in which the agency was terminated.

      (Added to NRS by 1979, 1838; A 1993, 1493)

SUNSET SUBCOMMITTEE OF THE LEGISLATIVE COMMISSION

      NRS 232B.210  Creation; membership; election of Chair and Vice Chair; vacancies; meetings; quorum; compensation; expenses.

      1.  The Sunset Subcommittee of the Legislative Commission, consisting of nine members, is hereby created. The membership of the Sunset Subcommittee consists of:

      (a) Three voting members of the Legislature appointed by the Majority Leader of the Senate, at least one of whom must be a member of the minority political party;

      (b) Three voting members of the Legislature appointed by the Speaker of the Assembly, at least one of whom must be a member of the minority political party; and

      (c) Three nonvoting members of the general public appointed by the Chair of the Legislative Commission from among the names of nominees submitted by the Governor pursuant to subsection 2.

      2.  The Governor shall, at least 30 days before the beginning of the term of any member appointed pursuant to paragraph (c) of subsection 1, or within 30 days after such a position on the Sunset Subcommittee becomes vacant, submit to the Legislative Commission the names of at least three persons qualified for membership on the Sunset Subcommittee. The Chair of the Legislative Commission shall appoint a new member or fill the vacancy from the list, or request a new list. The Chair of the Legislative Commission may appoint any qualified person who is a resident of this State to a position described in paragraph (c) of subsection 1.

      3.  Each member of the Sunset Subcommittee serves at the pleasure of the appointing authority.

      4.  The voting members of the Sunset Subcommittee shall elect a Chair from one House of the Legislature and a Vice Chair from the other House. Each Chair and Vice Chair holds office for a term of 2 years commencing on July 1 of each odd-numbered year. If a vacancy occurs in the office of Chair or Vice Chair, the vacancy must be filled in the same manner as the original selection for the remainder of the unexpired term.

      5.  The membership of any member of the Sunset Subcommittee who is a Legislator and who is not a candidate for reelection or who is defeated for reelection terminates on the day next after the general election.

      6.  A vacancy on the Sunset Subcommittee must be filled in the same manner as the original appointment.

      7.  The Sunset Subcommittee shall meet at the times and places specified by a call of the Chair. Four voting members of the Sunset Subcommittee constitute a quorum, and a quorum may exercise any power or authority conferred on the Sunset Subcommittee.

      8.  For each day or portion of a day during which a member of the Sunset Subcommittee who is a Legislator attends a meeting of the Sunset Subcommittee or is otherwise engaged in the business of the Sunset Subcommittee, except during a regular or special session of the Legislature, the Legislator is entitled to receive the:

      (a) Compensation provided for a majority of the members of the Legislature during the first 60 days of the preceding regular session;

      (b) Per diem allowance provided for state officers generally; and

      (c) Travel expenses provided pursuant to NRS 218A.655.

Ę The compensation, per diem allowances and travel expenses of the members of the Sunset Subcommittee who are Legislators must be paid from the Legislative Fund.

      9.  While engaged in the business of the Sunset Subcommittee, the members of the Subcommittee who are not Legislators are entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

      (Added to NRS by 2011, 2992; A 2013, 787)

      NRS 232B.220  Review of certain boards and commissions.

      1.  The Sunset Subcommittee of the Legislative Commission shall conduct a review of each board and commission in this State which is not provided for in the Nevada Constitution or established by an executive order of the Governor to determine whether the board or commission should be terminated, modified, consolidated with another board or commission or continued. Such a review must include, without limitation:

      (a) An evaluation of the major policies and programs of the board or commission, including, without limitation, an examination of other programs or services offered in this State to determine if any other provided programs or services duplicate those offered by the board or commission;

      (b) Any recommendations for improvements in the policies and programs offered by the board or commission; and

      (c) A determination of whether any statutory tax exemptions, abatements or money set aside to be provided to the board or commission should be terminated, modified or continued.

      2.  The Sunset Subcommittee shall review not less than 10 boards and commissions specified in subsection 1 each legislative interim.

      3.  Any action taken by the Sunset Subcommittee concerning a board or commission pursuant to NRS 232B.210 to 232B.250, inclusive, is in addition or supplemental to any action taken by the Legislative Commission pursuant to NRS 232B.010 to 232B.100, inclusive.

      (Added to NRS by 2011, 2994; A 2013, 788)

      NRS 232B.230  Submission of required information by boards and commissions subject to review; assistance from Legislative Counsel Bureau.

      1.  Each board and commission subject to review by the Sunset Subcommittee of the Legislative Commission shall submit information to the Sunset Subcommittee on a form prescribed by the Sunset Subcommittee. The information must include, without limitation:

      (a) The name of the board or commission;

      (b) The name of each member of the board or commission;

      (c) The address of the Internet website established and maintained by the board or commission, if any;

      (d) The name and contact information of the executive director of the board or commission, if any;

      (e) A list of the members of the staff of the board or commission;

      (f) The authority by which the board or commission was created;

      (g) The governing structure of the board or commission, including, without limitation, information concerning the method, terms, qualifications and conditions of appointment and removal of the members of the board or commission;

      (h) The duties of the board or commission;

      (i) The operating budget of the board or commission;

      (j) A statement setting forth the income and expenses of the board or commission for at least 3 years immediately preceding the date on which the board or commission submits the form required by this subsection, including the balances of any fund or account maintained by or on behalf of the board or commission;

      (k) The most recent audit conducted of the board or commission, if any;

      (l) The dates of the immediately preceding six meetings held by the board or commission;

      (m) A statement of the objectives and programs of the board or commission;

      (n) A conclusion concerning the effectiveness of the objectives and programs of the board or commission;

      (o) Any recommendations for statutory changes which are necessary for the board or commission to carry out its objectives and programs; and

      (p) Such other information as the Sunset Subcommittee may require.

      2.  The Sunset Subcommittee may direct the Legislative Counsel Bureau to assist in its research, investigations, review and analysis of the information submitted by each board and commission pursuant to subsection 1.

      (Added to NRS by 2011, 2994)

      NRS 232B.235  Audit of certain boards and commissions: Recommendation; duties of Legislative Commission.

      1.  At any time during a legislative interim, if the Sunset Subcommittee of the Legislative Commission determines that a board or commission subject to review by the Sunset Subcommittee should be audited, the Sunset Subcommittee shall make such a recommendation to the Legislative Commission. The Sunset Subcommittee shall include with its recommendation a summary of the justification for the recommendation.

      2.  After receiving a recommendation from the Sunset Subcommittee pursuant to subsection 1, the Legislative Commission shall evaluate the recommendation and determine whether to direct the Legislative Auditor to perform an audit of the board or commission pursuant to NRS 218G.120. In making its determination, the Legislative Commission shall consider the current workload of the Audit Division of the Legislative Counsel Bureau.

      3.  The Legislative Auditor shall not perform more than four audits directed by the Legislative Commission pursuant to this section during a legislative interim.

      (Added to NRS by 2013, 787)

      NRS 232B.240  Duty to conduct public hearings; consideration of certain reports; burden of proving public need for continued existence of board or commission.

      1.  The Sunset Subcommittee of the Legislative Commission shall conduct public hearings for the purpose of obtaining comments on, and may require the Legislative Counsel Bureau to submit reports on, the need for the termination, modification, consolidation or continued operation of a board or commission.

      2.  The Sunset Subcommittee shall consider any report submitted to it by the Legislative Counsel Bureau.

      3.  A board or commission has the burden of proving that there is a public need for its continued existence.

      (Added to NRS by 2011, 2995)

      NRS 232B.250  Recommendations.

      1.  If the Sunset Subcommittee of the Legislative Commission determines to recommend the termination of a board or commission, its recommendation must include suggestions for appropriate direct legislative action, if any, which is made necessary or desirable by the termination of the board or commission.

      2.  If the Sunset Subcommittee determines to recommend the consolidation, modification or continuation of a board or commission, its recommendation must include suggestions for appropriate direct legislative action, if any, which would make the operation of the board or commission or its successor more efficient or effective.

      3.  On or before June 30, 2012, the Sunset Subcommittee shall make all of its initial recommendations pursuant to this section, if any. The Sunset Subcommittee shall make all subsequent recommendations pursuant to this section, if any, on or before June 30 of each even-numbered year occurring thereafter.

      (Added to NRS by 2011, 2995)