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AB 33

Creates the Nevada Office of the Inspector General. (BDR 18-435)

2025 Regular Session

Creates Nevada Office of the Inspector General to audit, investigate and curb fraud in public funds, with subpoena power, reporting duties, and whistleblower protections.

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Bill Summary · AB 33

AB33 — Creates the Nevada Office of the Inspector General (BDR 18‑435) — Summary

Status: Introduced (prefiled Nov. 15, 2024). Bill materials show hearings and exhibits in early 2025; legislative history shows the bill was later ordered to inactive file (Sept. 9, 2025).
Note: the document packet included unrelated materials from another AB 33 (California, autonomous vehicles); this summary covers the Nevada Office of the Inspector General bill introduced by the Assembly Committee on Government Affairs on behalf of the State Controller.

Purpose / Intent

AB33 would establish an independent Office of the Inspector General (OIG) within the Nevada Office of the State Controller to conduct forensic audits, investigations, inspections and reviews aimed at detecting and preventing fraud, waste, abuse, corruption and other misconduct in the use of public funds. The OIG is intended to supplement existing audit functions and increase accountability for state spending at the state and local level and among nonprofits and contractors that receive public money.

Key provisions

  • Creates a new chapter in Title 18 NRS establishing the Nevada Office of the Inspector General and the position of Inspector General.
  • Jurisdiction: authority to audit, inspect and investigate any state agency, local government, school district, contractor, nonprofit or other entity that receives public funds.
  • Organizational structure:
    • Inspector General appointed to a 4‑year term by unanimous agreement of a three‑member committee (Lieutenant Governor, State Treasurer, State Controller). The State Controller acts as interim Inspector General until appointment.
    • Inspector General appoints a Deputy Inspector General and Special Counsel (unclassified positions) and may hire classified staff and contract experts within available funds.
    • Suggested startup staffing estimated at ~12 persons (presentation materials).
  • Powers and tools:
    • Subpoena power; authority to compel cooperation and documents from agencies and entities.
    • Operate a hotline/telephone intake for tips (transfers related requirements from existing internal audit functions).
    • Maintain confidentiality of investigation records and whistleblower identities.
    • May issue reports, recommendations, and make criminal or civil referrals as appropriate.
  • Reporting and oversight:
    • Quarterly reports to the State Controller and Legislative Counsel Bureau (or upon request); annual public report of activities and findings.
    • Director of Office of Finance required to provide internal control reports to the IG.
    • Legislative Auditor to review a representative sample of OIG work at least once every five years for professional standards compliance.
  • Protections and penalties:
    • Anti‑retaliation: retaliation against persons who lawfully report fraud/waste is made a category E felony.
    • Obstruction: willful prevention or impairment of the IG’s duties is a category E felony.
    • Enhanced penalties for assault or battery of the IG or OIG employees; IG and investigators designated as Category II peace officers.
  • Implementation timing:
    • The appointing committee must appoint the Inspector General on or before December 1, 2025 (as introduced). Other timelines for reports and staffing depend on appropriations and agency cooperation.

Who is affected

  • State executive agencies, local governments, school districts, state contractors, nonprofits and any entity receiving state funds.
  • State employees and contractors interacting with the OIG; whistleblowers and individuals subject to investigations.
  • The Office of the State Controller (host agency) — administrative, fiscal and personnel effects.
  • Potential fiscal impact on state budget and, possibly, local governments (bill contains an unfunded‑mandate notice).

Fiscal and procedural notes

  • Fiscal note: bill indicates “Effect on the State: Yes” and “Effect on Local Government: May have Fiscal Impact.” The OIG requires funding (staff, operations, possible contracted expertise); many duties conditioned on available appropriations.
  • The Inspector General’s independence is emphasized (unanimous multi‑officer appointment, unclassified leadership positions, removal only by impeachment/conviction per text as introduced).
  • The bill transfers certain intake/reporting duties from existing audit divisions to the new OIG.

Prepared to expand any section (appointment mechanics, criminal penalties, reporting obligations, fiscal implications) on request.

Compiled from official sources — confirm details with the bill’s official record.

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