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AB 392

Revises provisions relating to interlocal agreements and contracts with tribal governments. (BDR 22-1059)

2025 Regular Session Introduced by Max Carter

Allows counties and tribal governments to negotiate conditional interlocal agreements, protecting tribal immunity while giving counties termination rights for performance or access

Vetoed by the Governor.
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Bill Summary · AB 392

AB 392 (BDR 22-1059) — Interlocal agreements and contracts with tribal governments

Status: Vetoed by the Governor (delivered to Governor 5/29/2025; vetoed 6/5/2025)
Introduced: Feb 3, 2025 | Sponsor: Assemblymember Max Carter

Purpose / Intent

To clarify and modify how counties (and certain county agencies) and tribal governments may negotiate and structure joint or cooperative agreements under the Interlocal Cooperation Act (NRS Chapter 277), including (1) encouraging good‑faith discussions, (2) protecting tribal sovereign immunity, and (3) providing counties specified grounds to terminate agreements on notice.

Key provisions

  • Adds a new section to Chapter 277 (NRS) and amends NRS 277.080, 277.090, and 277.100.
  • Good‑faith discussions: If tribal land lies (in whole or part) within a county and a tribal government wishes to enter a joint/cooperative agreement or contract with that county (or an agency thereof) for authorized governmental services, the county’s governing body may (not must) engage in discussions in good faith with the tribal government.
    • Defines “good faith” as “honesty in fact and the observance of reasonable standards of fair dealing.”
  • Conditional interlocal agreements: Any such agreement between a county (or agency) and a tribal government must be a conditional interlocal agreement that:
    • May not require the tribal government to waive sovereign immunity.
    • Must authorize the county governing body to terminate the agreement upon 90 days’ advance written notice if any of these conditions occur:
    • Tribal government is more than 60 days delinquent on financial obligations under the agreement;
    • Tribal government fails to respond for more than 90 days to a written demand from the county to perform under the agreement;
    • An authorized tribal representative, tribal council, or tribal police prevents entry onto tribal land or otherwise prevents the county (or its employees/agents) from performing under the agreement;
    • The tribal government enters into a subsequent agreement under the same statutory framework that materially conflicts with the existing agreement.
  • Definitions: “Tribal government” is defined consistently with NRS (tribe, group of tribes, organized segment, or organization representing such entities).
  • Scope / exclusions:
    • For purposes of the new section, an “agency of a county” does not include any water authority, water district, or water reclamation district (in some reprints this exclusion appeared explicitly).
  • Effective date: July 1, 2025 (per the bill language).

Who would be affected

  • County governing bodies and specified county agencies (except certain water entities).
  • Tribal governments and their governing bodies.
  • Other public agencies that participate in interlocal cooperative activities under NRS Chapter 277.

Potential impacts / considerations

  • Legal/contractual: Protects tribal sovereign immunity by prohibiting waiver as a condition of agreement; provides counties explicit termination rights tied to performance and access.
  • Operational/fiscal: May affect negotiations and continuity of intergovernmental service arrangements; fiscal note indicates a possible local fiscal impact (no state fiscal impact reported).
  • Policy/relations: Changes the balance of bargaining tools available to counties and tribes; the “may” (vs. earlier “shall”) wording makes county engagement permissive rather than mandatory.

Procedural history (selected)

  • Introduced Feb 3, 2025; amended multiple times in committee and on the floor (notably amendments to make discussions permissive and to define “good faith”).
  • Passed Assembly and Senate (final enrollment 5/29/2025).
  • Vetoed by the Governor 6/5/2025.

For exact statutory text and the sequence of amendments/reprints, see the bill reprints and amendment documents (Assembly Amendments Nos. 233, 603; First and Second Reprints).

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

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