Business and Industry seeks dozens of staff and new cost-allocation model to centralize Nevada occupational licensing boards

Chris Sanchez, director of the Nevada Department of Business and Industry (BNI), and Nikki Hague, deputy director of the Office of Nevada Boards, Commissions and Council Standards, told the joint subcommittee on general government that they are requesting budget authority and a phased staffing plan to implement reforms enacted in 2023 (SB 431) and to carry out proposed consolidation under SB 78.

Sanchez said SB 431 created the office but provided no funding to build staff; the department—s governor-recommended budget and two separate budget amendments were presented to provide personnel and implementation funds. Budget amendment number 1 requests 14 new administrative staff to carry out SB 431 duties (decision unit E225), including an initial deputy-director transfer and a management analyst that would serve as a short-term "bridge" resource. A second amendment would repurpose 55 existing board staff and transition them into the new account to support a larger implementation phase for SB 78. Combined, the department described phasing most of these changes over the biennium rather than hiring all positions at once.

The department said it modeled a cost-allocation approach based on license renewals and planned to phase in merged boards beginning in the second quarter of FY26. Emily Servi of BNI—s administrative services office told the committee that boards would be charged a proportional share of departmental administrative and contract costs and that consolidated contracts (for IT, accounting, and other services) are expected to realize savings for boards over time. The department said its plan uses licensing fees and board funds rather than general fund support; two bridge positions (the deputy director and one management analyst) would be funded from the general fund initially and the department intends to move them off general fund support once cost-allocation collections begin.

Officials presented fiscal estimates and data from their surveys. James Kirkpatrick summarized financial findings showing total board operating expenses around $47.2 million and operating revenue around $42.0 million, leaving an estimated $5.0 million shortfall based on available survey data and LCB reports. Sanchez said boards collectively hold roughly $43 million in reserves and that some individual boards hold unusually large reserve balances—he said eight boards have more than 10 years of reserves and that "we have 1 board that has 21 years' worth of reserves" and another with "27 years' worth of reserves," based on current operations and the department—s analysis. The department said it would continue working with the state treasurer to clarify reserve accounting.

The presenters said the office reviewed board operations and complaints. According to the department—s summary, boards issued roughly 32.5 million in renewal-license revenue (licensed renewals), and the department reported that in 2024 boards received roughly 6,700 complaints, with many complaints advancing to cases and thousands of cases opened and closed during the year; the staff cautioned that the quality and completeness of reporting varied by board.

Legislators pressed department staff on timing, staffing counts and the plan to phase in merged boards. Sanchez emphasized a phased approach and said the department will provide committee staff a detailed staffing and phasing plan. The department repeatedly stressed that SB 78 includes authorization language allowing BNI to use licensing fees to pay for the staff and that, without SB 78, the department would lack the statutory mechanism to cost-allocate licensing revenue for many of these positions. Several lawmakers asked for additional fiscal detail and a clear timeline; the department committed to follow-up briefings and quarterly reporting on implementation.

Ending: The hearing closed with the department committed to supply additional fiscal analyses and implementation schedules to the committee; no votes were taken during the presentation.