With certain exceptions, this bill enacts requirements governing payments by agencies of the Executive Department of the State Government to private nonprofit corporations that receive grants from those agencies and are reimbursed by those 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 8 of this bill declares that it is the policy of this State to: (1) complete all processing and authorization required by law to make a payment, as defined in section 4 of this bill, within 30 calendar days after the later of the date on which the payment becomes due under a grant agreement or the date on which the state entity that made the grant receives a proper invoice, as defined in section 6 of this bill; and (2) make an advance of a grant to a private nonprofit corporation to facilitate the expeditious carrying out of the grant. Section 9 of this bill provides that, with certain exceptions, a state entity that makes a grant to a private nonprofit corporation, which is defined in section 7 of this bill as a “state grant-making entity,” is liable for interest on amounts which are due and payable under a written grant agreement at the rate that has been agreed upon in the grant agreement, or if no such rate has been agreed upon, by a specified rate. Section 9 provides that, with certain exceptions, interest begins accruing on the 31st calendar 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 money appropriated to fund a grant.
Section 10 of this bill requires a state grant-making entity to mark an invoice with the date on which the invoice was received and review the invoice as soon as practicable to determine whether the invoice is a proper invoice. Section 10 authorizes a state grant-making entity to use media that produce tangible recordings of information to expedite payment in lieu of requiring original paper documents.
Section 11 of this bill authorizes a private nonprofit corporation to submit to a state grant-making entity a request for an advance of money from the grant that was awarded to the private nonprofit corporation by the state grant-making entity. Section 11 requires the private nonprofit corporation to: (1) submit an expenditure plan with its request for an advance and any other information requested by the state grant-making entity; and (2) agree to requirements relating to reporting expenditures, returning unexpended money and depositing the advance. Section 11, with certain exceptions, requires, to the greatest extent practicable, the state grant-making entity to approve the advance if it determines that the private nonprofit corporation has demonstrated sufficient justification for the advance and, if applicable, it has verified compliance by recipients of subgrants with the grant agreement and applicable law. With certain exceptions, section 11 limits the amount of such an advance to be: (1) if the source of funding for the grant is state money, the amount requested by the private nonprofit corporation, but not to exceed 25 percent of the annual amount of the grant award; or (2) if the source of the grant is federal money, the minimum amount to cover the immediate cash requirements of the private nonprofit corporation in carrying out the purpose of the grant.
Section 11 requires the State Board of Examiners to adopt policies and procedures to carry out that provision, which are required under existing law to be published in the State Administrative Manual. (NRS 232.004) Section 11 also requires: (1) the state grant-making entity to provide written notice of the approval of any advance to the Director of the Office of Finance; and (2) the Director to submit an annual report to the Interim Finance Committee relating to advance payments of which the Director was notified.
Section 13 of this bill excludes from the requirements of this bill grants which are executed, renewed or extended before July 1, 2026.