Existing law creates the Office of Finance in the Office of the Governor, consisting of the Director of the Office, the Division of Internal Audits and the Budget Division. (NRS 223.400) This bill creates the Nevada Office of the Inspector General as an independent agency. Sections 2-6 of this bill define terms related to the Nevada Office of the Inspector General. Section 7 of this bill creates the Nevada Office of the Inspector General, consisting of the Inspector General and any person employed in the Office. Section 7 also requires the Governor to appoint the Inspector General for a term of 4 years from a list of candidates submitted by the Legislative Commission. Section 8 of this bill requires the Inspector General to administer provisions of law governing the Office. Section 9 of this bill: (1) requires the Inspector General to appoint a deputy inspector general and a special counsel who are in the unclassified service of the State; and (2) authorizes the Inspector General, within the limits of available money, to employ such persons in the classified service of the State as he or she deems necessary to provide an appropriate staff for the Office and to enter into contracts with certain professionals for professional services related to the functions of the Office. Section 10 of this bill requires the Inspector General to submit a report to the Governor and the Director of the Legislative Counsel Bureau, on at least a quarterly basis or at the Governor's request, setting forth any findings, conclusions or recommendations relating to an audit, investigation, inspection or review conducted by the Inspector General. Sections 11 and 27 of this bill transfer from the Division of Internal Audits to the Inspector General the requirement to establish a telephone number to receive information relating to abuse, fraud and waste with respect to the use of public money by state agencies. Section 12 of this bill: (1) requires a state agency or local government, upon request by the Inspector General, to cooperate with and provide assistance to the Inspector General in carrying out his or her duties; and (2) makes any person who willfully prevents, impairs or prohibits the performance of the duties of the Inspector General guilty of a category E felony. Section 13 of this bill authorizes the Inspector General to issue subpoenas. Sections 11, 14 and 21 of this bill provide for the confidentiality of: (1) any record maintained by the Inspector General during an investigation; and (2) the identity of any whistleblower. Otherwise, section 14 requires a report of the Inspector General to be made available to the public annually. Section 15 of this bill requires the Legislative Auditor to review a representative sample of audits, investigations and reviews conducted by the Office for conformance with professional standards at least once every 3 years. Section 16 of this bill creates the Nevada Office of the Inspector General's Fund as a special revenue fund without reversion to the State General Fund. Section 17 of this bill makes it a category E felony to retaliate against certain persons who file a lawful complaint concerning fraud, waste, abuse or corruption within a state agency or local government. Existing law provides that a person commits a gross misdemeanor if he or she uses any threat, force or violence to prevent an executive or administrative officer from performing his or her duties. (NRS 197.090) Section 18 of this bill makes it a category E felony for a person to use any threat, force or violence to prevent the Inspector General or any employee of the Office from performing his or her duties. Sections 19 and 20 of this bill provide that the increased penalty for assault or battery of an officer applies to an assault or battery of the Inspector General or an employee of the Office. (NRS 200.471, 200.481) Section 22 of this bill makes the Inspector General and investigators employed by the Office category II peace officers. Existing law requires the head of each state agency to periodically review and report to the Director of the Office of Finance whether the agency's system of internal accounting and administrative control is in compliance with the uniform system of internal accounting and administrative control adopted by the Director for state agencies. Existing law further requires the Director to submit a report on the status of internal accounting and administrative controls in state agencies to certain persons. (NRS 353A.025) Section 24 of this bill requires the Director to provide this report to the Inspector General. Section 23 of this bill defines the term “Inspector General” for provisions of the Nevada Revised Statutes relating to internal accounting. Section 25 of this bill requires the Governor to appoint the Inspector General on or before December 1, 2025.

Statutes affected:
As Introduced: 197.090, 200.471, 200.481, 239.010, 289.470, 353A.010, 353A.025, 353A.049
BDR: 197.090, 200.471, 200.481, 239.010, 289.470, 353A.010, 353A.025, 353A.049