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AB 507

Revises provisions relating to state financial administration. (BDR 31-933)

2025 Regular Session

AB 507 tightens when IFC reviews budget work-program revisions, banning split requests and outlining thresholds for the 20% or $350,000 change, with set timelines.

Approved by the Governor. Chapter 154.
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Bill Summary · AB 507

AB 507 — Revising state financial administration procedures (BDR 31‑933)

Status: Approved by the Governor; chaptered. Effective date: July 1, 2025.
Primary change: Amends NRS 353.220 (State Budget Act) to clarify thresholds and process for departmental revisions to work programs that require Interim Finance Committee (IFC) review and approval.

Purpose / intent

To tighten and clarify the procedural thresholds that trigger IFC review when an executive-branch department, institution, or agency requests a revision to a budget work program during the fiscal year, and to prevent splitting a larger revision into multiple smaller requests to avoid IFC oversight.

Key provisions

  • Clarifies the two-part test that makes a work‑program revision subject to IFC approval:
    1. The request proposes a revision to one or more categories of expense within the work program in a total amount of more than $75,000 (the $75,000 threshold applies to the proposed revision itself, regardless of other revisions during the fiscal year); and
    2. When considered cumulatively with other changes to that work program during the fiscal year, the revision would increase or decrease the Legislature‑approved expenditure level for any expense category by 20% or $350,000, whichever is less.
  • Prohibits dividing a single proposed revision into multiple separate requests to avoid IFC review.
  • Reaffirms that every revision request must be submitted to the Chief (Budget Division, Office of Finance) on prescribed forms and be approved in writing by the Governor or the Chief before funds are encumbered.
  • Timelines and expedited procedures:
    • Governor may approve emergency revisions (per NRS 353.263) and must report to the IFC at its next meeting.
    • If the Governor certifies a request needs expeditious IFC action, the IFC has 15 days to consider it; failure to act = deemed approved.
    • For non‑expedited requests, the IFC has 45 days to consider; failure to act = deemed approved.
  • Exceptions: the IFC thresholds/procedures do not apply to revisions required by (a) acceptance of a gift or grant under NRS 353.335(5), or (b) carrying forward unexpended balances to the next fiscal year without a change in purpose.

Who is affected

  • State executive-branch department, institution, and agency budget authorities that request work‑program revisions.
  • Office of Finance / Budget Division (administration of submission and routing).
  • Interim Finance Committee (review/approval responsibility).
  • No direct effect on local governments (fiscal note: “Effect on Local Government: No.”; Effect on State: Yes).

Procedural / timeline notes

  • The law clarifies applicability and prevents procedural splitting to evade oversight.
  • IFC inaction within statutory windows (15 or 45 days, depending on certification) results in automatic approval.
  • Codifies process details in amended NRS 353.220 and takes effect July 1, 2025.

Summary source: Enrolled bill amending NRS 353.220 (AB 507, Committee on Ways and Means).

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

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