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 an agency of the Executive Department of the State Government or a 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 provides for the qualifications, appointment in the unclassified service of the State, term of office and removal of the Inspector General. Section 10 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 2-18 of this bill.
Section 11 of this bill requires the Inspector General to administer the provisions of law governing the Office. Section 12 of this bill sets forth certain specific 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 agency of the Executive Department and local government and nonprofit organization that receives public money; (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 suggested corrective or remedial actions relating to an audit, investigation, inspection or review conducted by the Inspector General; (3) immediately reporting problems that require immediate attention and any suggested corrective or remedial actions; and (4) coordinating with other governmental agencies that are responsible for auditing, investigating, inspecting or reviewing agencies of the Executive Department or local governments or nonprofit organizations that receive public money to share information and avoid any duplication of activities.
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 or waste with respect to public money received and used by agencies of the Executive Department or local governments or nonprofit organizations that receive public money. Section 14 of this bill: (1) requires such an 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 powers and duties; and (2) makes any person who willfully prevents, impairs or prohibits the performance of the powers and duties of the Inspector General guilty of a category E felony. Section 15 of this bill authorizes the Inspector General to issue subpoenas.
Sections 13, 16 and 22 of this bill provide, with certain exceptions, 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 Inspector General to enter into a contract to have an independent organization, at least once every 5 years, review and prepare and make public a report regarding 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 an agency of the Executive Department or a local government or nonprofit organization that receives public money.
With certain exceptions, a person commits a gross misdemeanor under existing law if he or she uses any threat, force or violence to attempt to deter or prevent an executive or administrative officer from performing his or her duties or for resistance of such an officer in certain circumstances. (NRS 197.090) Section 19 of this bill makes it a category E felony for a person to commit such offenses if the officer is the Inspector General or any employee of the Office.
Sections 20 and 21 of this bill provide that the increased penalty for assault or battery of an officer in existing law applies to an assault or battery of the Inspector General or an employee of the Office. (NRS 200.471, 200.481)
Existing Law classifies peace officers as category I, category II or category III peace officers. Peace officers in each category are designated as having certain powers and are required to meet certain training and educational requirements. (NRS 289.460, 289.470, 289.480, 289.510) 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 certain agencies of the Executive Department are required 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 such agencies. (NRS 353A.020, 353A.025) Existing law further requires the Director to submit a report on the status of internal accounting and administrative controls in such agencies to certain persons. (NRS 353A.025) Section 24 of this bill requires the Director to also provide this report to the Inspector General. In addition to being required to provide certain reports to certain persons and entities set forth in existing law, sections 25-27 of this bill require the applicable agencies of the Executive Department and local governments to also provide the Inspector General with those reports. (NRS 385A.400, 387.013, 387.303)
Section 28 of this bill: (1) requires the Lieutenant Governor, State Treasurer and State Controller to jointly appoint the Inspector General on or before December 1, 2027; and (2) provides that the State Controller is the acting Inspector General until the appointment is made.

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