Existing law creates the Office of the State Controller, whose duties include, without limitation, administering the State's accounting system, processing and recording the State's financial transactions, conducting audits and recommending plans for the support of public credit, promoting frugality and economy, and better management and understanding of the fiscal affairs of the State. (Nev. Const. Art. 5, § 19; chapter 227 of NRS) This bill creates the Nevada Office of the Inspector General within the Office of the State Controller with the authority to audit, investigate, inspect and review the performance of any state agency, local government or nonprofit organization that receives public money. Section 9 of this bill creates the Nevada Office of the Inspector General, consisting of the Inspector General and any person employed by the Office. Section 9 also requires the Inspector General to be appointed for a term of 4 years by unanimous agreement of the Lieutenant Governor, State Treasurer and State Controller. Section 10 of this bill requires the Inspector General to administer the provisions of law governing the Office. Section 11 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. Sections 3-8 of this bill define terms relating to the Nevada Office of the Inspector General. Section 2 of this bill sets forth the applicability of those definitions to sections 2-19 of this bill. Section 12 sets forth certain responsibilities and duties of the Inspector General, including: (1) establishing and maintaining a full-time program of auditing, investigation, inspection and performance review of each state agency, local government and nonprofit organization; (2) submitting a report to the State Controller and the Director of the Legislative Counsel Bureau, on at least a quarterly basis or at the State Controller's request, setting forth any findings, conclusions or recommendations relating to an audit, investigation, inspection or review conducted by the Inspector General; and (3) immediately reporting certain problems that require immediate attention and any suggested corrective or remedial actions. Sections 13 and 31 of this bill transfer from the Division of Internal Audits of the Office of Finance to the Inspector General the requirement to establish a telephone number to receive information relating to abuse, fraud and waste with respect to public money received and used by state agencies, local governments or nonprofit organizations. Section 14: (1) requires a state agency, local government or nonprofit organization, 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 15 authorizes the Inspector General to issue subpoenas. Sections 13, 16 and 22 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 16 requires a report of the Inspector General to be made available to the public annually. Section 17 of this bill requires the Legislative Auditor to review at least once every 5 years a representative sample of the audits, investigations, inspections and reviews conducted by the Nevada Office of the Inspector General to ensure conformance with certain professional standards. Section 18 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, local government or nonprofit organization. Under existing law, 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 19 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 20 and 21 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. Section 23 of this bill makes the Inspector General and any person employed as an investigator by the Office category II peace officers. Under existing law, the head of each state agency must 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.020) Section 24 of this bill requires the Director to provide this report to the Inspector General. Sections 25-29 of this bill require certain state agencies and local governments to provide the Inspector General with certain reports. Section 28 of this bill: (1) requires the Lieutenant Governor, State Treasurer and State Controller to appoint the Inspector General on or before December 1, 2025; and (2) provides that the State Controller is the acting Inspector General until the appointment is made.

Statutes affected:
As Introduced: 197.090, 200.471, 200.481, 239.010, 289.470, 353A.025, 385A.400, 387.013, 387.303, 353A.049
BDR: 197.090, 200.471, 200.481, 239.010, 289.470, 353A.025, 385A.400, 387.013, 387.303, 353A.049