Nevada Senate Bill 13 aims to allow counties to form nonprofits to collect emergency funds
CARSON CITY — Senate Bill 13 now under consideration by Nevada lawmakers aims to authorize county commissioners to form a nonprofit corporation to “aid the county in providing certain governmental services.”
If the bill is adopted, changes to Chapter 244 of the Nevada Revised Statues would be amended to include several new sections regarding a county’s ability to form a nonprofit corporation.
The proposed Section 3 of the amendment states: “The board of county commissioners of a county may form a nonprofit corporation to aid the county during an emergency or a time of need in providing to residents and visitors emergency assistance or any other governmental service, including, without limitation, social services and financial assistance for food and shelter.”
It goes on to further state that any liability or action against a nonprofit corporation created in this format will be considered a “political subdivision” of the State, and the members of the nonprofit’s board of directors will be considered employees of this political subdivision.
If a county run non-profit is dissolved, the assets must be returned to the county, and used “in a manner consistent with the purposes of the nonprofit corporation.”
The primary sponsor for Senate Bill 13 is the Senate Committee on Government Affairs, and the bill was first read to the committee on Feb. 4, and was heard again at the Senate Government Affairs Hearing on Feb. 11 and the Assembly Government Affairs Hearing on Feb. 12.
According to a presentation given by the County Manager of Clark County, Yolanda King, (who is also registered during the 2019 session as a paid lobbyist for Clark County), the need for this ability to form a nonprofit came to light after the Las Vegas shooting tragedy of Oct. 1, 2017.
People and governments from across the country came forward to donate, but there wasn’t a government-run system set up to accommodate the model the Clark County representatives needed to ensure collected funds went directly to the families of victims.
“During the first few weeks after the event, the County spent many hours working with various groups and individuals in an effort to identify an existing fund that would accommodate this model,” said King. “Many expressed concern either with the responsibility of making determinations about how the funds would be dispersed or had other ideas about funds should be distributed. During this time, families and survivors were confused about who was responsible for taking donations, how the funds were being handled and ultimately when they would be able to access them. We were committed to working to establish a single-fund model that would guarantee all monies collected would be distributed to victims.”
According to the report, the Nevada Resorts Association stepped forward to create a non-profit fund for the purpose of collecting and distributing funds for the victims and families of victims.
Authorizing counties to establish a fund prior to an emergency would greatly assist in responding during the early stages of these tragic events. Allowing a government entity to be responsible for the administration of these funds lends creditability to the fund, ensures transparency and would provide for an immediate mechanism for collection,” said King. “Most importantly, the single-fund model allows an efficient way for monies to be collected and distributed, which creates fewer complications and redundancy for the victims and allows them to access needed funds more quickly.”
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