This bill enacts requirements governing payments by State agencies to certain nonprofit organizations that receive grants from those agencies and are reimbursed by State agencies for services or other performance under a grant agreement. Section 3 of this bill defines the term “grant” to establish the types of financial assistance to which these requirements apply. Section 6 of this bill establishes that the requirements of this bill do not apply to the Judicial Branch or Legislative Branch of State Government, the Nevada System of Higher Education or any institution within the System, or certain grants that support the State Public Works Division of the Department of Administration in carrying out a program of capital improvements. Section 10 of this bill excludes from the requirements of this bill payments under grants which are executed, renewed or extended before July 1, 2025.
Section 7 of this bill declares that it is the policy of this State to complete all processing and authorizations required by law to make a payment, as set forth in section 4 of this bill, within 37 days after the later of the date on which the payment becomes due under the grant agreement or the date on which the State entity that made the grant receives a proper invoice, as defined in section 5 of this bill. Section 8 of this bill provides that, with certain exceptions, a State grant-making entity is liable for interest at a rate of 9 percent per annum on amounts which are due and payable under a written grant agreement and which the State grant-making entity has failed to submit for payment within 30 days after receipt of a proper invoice. Section 8 provides that interest begins accruing on the 38th day after the date on which the State grant-making entity receives a proper invoice and requires interest to be paid from the operating budget of the State grant-making entity, not including funds appropriated to fund a grant.
Section 9 of this bill requires a State grant-making entity to mark an invoice with the date the invoice was received and review the invoice as soon as practicable to determine whether the invoice is a proper invoice. Section 9 authorizes a State grant-making entity to use media that produce tangible recordings of information to expedite payment, rather than requiring original paper documents, but requires a State grant-making entity to provide adequate safeguards and controls to ensure the integrity of the data and to prevent duplicate processing.