Revises provisions relating to emergency management. (BDR 36-269)
Summary
SB39 creates the Nevada Hazard Mitigation Revolving Loan Account in the State General Fund and directs the Division of Emergency Management, within the Office of the Military, to administer a loan program for local governments and tribal governments. The program is intended to finance hazard mitigation projects that qualify under the federal STORM Act, which allows FEMA capitalization grants to states for revolving loan funds used to reduce future disaster risk.
The bill requires the Division to develop application procedures, set loan eligibility criteria by regulation, and carry out the program beginning in 2026. It also allows the Division to provide technical assistance to applicants and borrowers, and requires loan recipients to show need, repayment ability, and technical, managerial, and financial capacity to comply with federal requirements. The account would be funded by federal capitalization grants, any required state matching money, loan repayments, and interest earnings, and unused balances would carry forward rather than revert to the General Fund.
Impact
SB39 amends Chapter 414 of NRS by adding a new state revolving loan account and a new state-administered financing mechanism for hazard mitigation projects. It affects the Division of Emergency Management’s duties by giving it authority to administer loans, prioritize projects with the greatest hazard-reduction impact, condition loans on prevailing wage and competitive bidding requirements where allowed, and adopt implementing regulations. The bill primarily affects local governments and tribal governments seeking funding for resilience, flood control, wildfire mitigation, and other disaster-prevention projects, while also tying Nevada’s program to federal STORM Act requirements.
Sentiment
The overall sentiment reflected in the bill’s passage appears broadly supportive of expanding state capacity for disaster preparedness and resilience financing. The bill passed the Assembly unanimously and the Senate by a narrower margin, suggesting general agreement on the policy goal but some Senate-level reservations or differing views on implementation details. No committee transcript was provided, so the available record shows support for the concept of leveraging federal funds for hazard mitigation, with more limited support in the Senate than in the Assembly.
Contention
The main points of potential contention are the loan program’s administrative requirements and conditions on recipients. The bill requires compliance with prevailing wage and competitive bidding rules, except where federal law prohibits it, which may raise concerns for some local entities about project cost and administrative burden. Another possible issue is the prioritization standard, which gives the Division discretion to favor projects it believes will have the greatest hazard-mitigation impact, and the requirement that recipients demonstrate repayment ability and technical capacity. The Senate vote of 13-8 suggests some members may have questioned these implementation details, even though the Assembly approved the bill unanimously.