354.725 - Severe financial emergency: Termination or modification of management of local government.
354.725 Severe financial emergency: Termination or modification of management of local government.
1. The Nevada Tax Commission may, on its own motion or at the request of a local government, terminate the management of a local government by the Department at any time upon a finding that the severe financial emergency has ceased to exist.
2. The governing body of a local government which has complied with all requests made by the Department pursuant to NRS 354.695 may petition the Nevada Tax Commission for termination or modification of the management of the local government by the Department or of any request made by the Department pursuant to NRS 354.695.
3. The Nevada Tax Commission shall provide notice, a hearing and a written decision on each such petition.
4. In determining whether a condition of severe financial emergency should be terminated, the Nevada Tax Commission shall give consideration to the following:
(a) The local governing body has shown a desire and capability to manage the financial affairs of the local government in accordance with the provisions of NRS.
(b) The local government has staff available with sufficient financial expertise that they can adequately control the finances of the local government.
(c) All violations of statutes have been corrected.
(d) The local government has no funds with deficit fund balances.
(e) The local government has increased their revenues or made appropriate expenditure reductions so that it is anticipated they can operate for the next fiscal year in a positive cash and fund balance position.
(f) The governing body has expressed a determination through a resolution submitted to the Department of Taxation to manage their affairs in accordance with NRS relating to financial matters and utilizing sound accounting and financial management practices.
5. The Nevada Tax Commission may require the governing body to submit special reports to the Department for a period not to exceed 5 years as a condition of terminating the management of the local government by the Department.
6. When a petition relating to a specific request is denied, the governing body may not resubmit a petition to terminate or modify that request until 3 months following the date of denial.
(Added to NRS by 1995, 143; A 1995, 1902)