CARSON CITY (Monday), January 20, 1997

Senate called to order at 12 m.
President pro Tempore Jacobsen presiding.
Prayer by Pastor Luther Dupree.
This morning as we come to this Sixty-Ninth Session of legislation we certainly want to invoke God's presence on this session. Will you please join with me in prayer as we greet the Govenor, Senators, Assemblymen and their staff and to this delegation.
Lord, we pray now. Our Father, who art in Heaven. Hallowed be thy name. Thy kingdom come. Thy will be done on earth as it is in Heaven. Give us this day our daily bread and forgive us our debts as we forgive our debtors. Lead us not into temptation but deliver us from evil. For Thine is the kingdom, the power and the glory. God, we thank thee now for this moment, this opportunity. And, as this session convenes, we ask You to touch their hearts, the bill writers, the legislators. Teach them as Proverbs says to us: "Trust in the Lord with all thine heart and lean not to thine own understanding." But in all of our ways, acknowledge You and You will direct our path. So then Lord, guide this assembly of lawmakers for your words inform us that the steps of a good man are ordered by the Lord and You delight in his ways. So Lord, at this assembly pen their bills and plan their strategies, of the lobbyists lobbies, in the halls of justice. Let them remember what the psalmist said: "Righteousness exalts a nation, but sin, wrong, deceit is a reproach to any people." So Lord, in closing this prayer, let the Assembly, the Governor, the Senate, the lobbyists, the well-wishers and all of us who have gathered here remember "let righteousness or justice run down like water and righteousness as a mighty stream."
Now Lord, as this assembly serves us and the public, we ask you to look over their families, protect and guide them as they serve us in this session of legislation. Be the God in their lives, guide and direct as they go and all the decisions they make be first invited to You.
Thank You Lord we pray.

Amen.

Senator Washington introduced "The Voice of Unity" choir conducted by Michael Wynn and consisting of the following members: Stephanie Tau, Patricia Tau, Doug Vann, Denyda Vann, Yolanda Webb, Leall Neud, Jennifer Tutt, Summer Parker, Fransella Taylor, Ruth Grider, Kimberly D. Lyons, Catherine Peterson, Janet Anderson, Samantha King, Lori Powell, Angela Tribble, Kimberly Aubbard, Arcella Ross, Callie Whittington, Shavanne Lambert, Donna Washington, Angelise Washington, Alicia Anaya, Kim Reni Hill, Derek McDowell, Glenn Taylor, Randy "Wizz" Collins and Joseph Watson.

President pro Tempore Jacobsen:

We are delighted today to have the Douglas County Sheriff's Explorer Post 105 Honor Guard here today with four young people who will present the nation's colors for the Senate. The members of the Honor Guard are Senior Explorer, Robin Parkill; Les Vido, Jennifer Maple and Ignacio Gonzales.
Presentation of the Colors by Honor Guard, Douglas County Explorer Post 105.
Pledge of allegiance to the Flag.
Miss Robin Faike will sing the "National Anthem."

President pro Tempore announced that if there were no objections the Senate would recess subject to the call of the Chair.
Motion carried.

Senate in recess at 12:30 p.m.

At 12:50 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

Mr. President pro Tempore Jacobsen requested Mrs. Janice L. Thomas to serve as temporary Secretary of the Senate, and Mr. Charles Welsh to serve as temporary Sergeant at Arms.

Mr. President pro Tempore instructed the temporary Secretary to call the roll of the holdover Senators.
Roll called.
All holdover Senators present.

Mr. President pro Tempore appointed Senators Townsend, Washington and Coffin as a temporary Committee on Credentials.

Mr. President pro Tempore announced that if there were no objections the Senate would recess subject to the call of the Chair while credentials of the newly-elected Senators were examined by the temporary Committee on Credentials.
Senate in recess at 12:52 p.m.

At 12:55 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

Mr. President pro Tempore:

Your temporary Committee on Credentials has had the credentials of the respective Senators-elect under consideration and begs leave to report that the following persons have been and are duly elected and qualified members of the Senate of the 69th Session of the Legislature of the State of Nevada: Senators Mike McGinness, Joseph M. Neal, Jr., Ann O'Connell, William J. Raggio, Raymond D. Rawson, Dean A. Rhoads, Michael A. Schneider, Raymond C. Shaffer, Dina Titus and Valerie Wiener.

Senator Townsend moved that the report of the temporary Committee on Credentials be adopted.
Motion carried.

Senate in recess at 12:57 p.m.

At 1 p.m.

Mr. President pro Tempore appointed Senators James, Porter and Regan to escort Chief Justice Miriam Shearing of the Supreme Court of Nevada to the rostrum to administer the oath of office to the newly-elected Senators.

Chief Justice Shearing administered the oath of office to the newly-elected Senators.

Senate in recess at 1:04 p.m.

At 1:22 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

Senator Adler moved that the Chief Justice be extended a unanimous vote of thanks for administering the oath.
Motion carried unanimously.

Mr. President pro Tempore instructed the temporary Secretary to call the roll of the Senators.
Roll called.
All Senators present.

Senate in recess at 1:23 p.m.

At 1:25 p.m.
Senator Augustine, Chairman of Legislative Affairs and Operations, presiding.

Quorum present.

Senator Augustine declared that nominations were in order for President pro Tempore.
Senator Townsend nominated Senator Jacobsen for President pro Tempore.
Senator Titus moved that the nominations be closed.
Motion carried.

Senator Augustine declared Senator Jacobsen to be President pro Tempore of the Senate.

Senate in recess at 1:30 p.m.

At 1:35 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

Mr. President pro Tempore declared that nominations were in order for Secretary of the Senate.

Senator Raggio nominated Mrs. Janice L. Thomas to be Secretary of the Senate.
Senator O'Connell moved that the nominations be closed.
Motion carried.
Mr. President pro Tempore declared Mrs. Janice L. Thomas to be the Secretary of the Senate.

Mr. President pro Tempore appointed Senators McGinness, Augustine and Schneider as a committee of three to inform the Assembly that the Senate is organized and ready for business.

Mr. President pro Tempore appointed Senators Rawson, O'Donnell and Mathews as a committee of three to inform the Acting Governor that the Senate is organized and ready for business.

Senator Raggio moved that the following persons be accepted as accredited press representatives and that they be assigned space at the press table and be allowed to use the appropriate broadcasting facilities: MASON VALLEY NEWS: Jim Sanford, Dave Sanford, Keith Trout, Cory Sanford and Toni Inserra; FERNLEY LEADER-DAYTON COURIER: Laura Tennant and Betty Aleck; TAHOE DAILY TRIBUNE: Patrick McCartney, Jennifer Ragland and Bob Bhatt; LAS VEGAS SUN: Larry Henry, Cy Ryan, Jeff German, Steve Kanigher, Jeff Schweers, Steve Sebelius, Teresa Hinds, Debra Bass, Rachael Levy and David Clayton; LAS VEGAS REVIEW-JOURNAL: Ed Vogel, Sean Whaley, Jane Ann Morrison and Jeff Scheid; NEVADA APPEAL: Geoff Dornan, Teya Vitu, Sharon Carter, Jody Rice, John Sammon, Kelli DuFresne, Christy Chalmers and Bob Kretschman; ELKO DAILY FREE PRESS: Rex Steninger, Dan Steninger, Adella Harding, Steve Sexton, Mel Ewald and Mark Waite; THE VALLEY OBSERVER: Richard Stromatt, B. J. Stromatt, Alex Wagner and Rhonda Willmon; PAHRUMP VALLEY GAZETTE: Mary Ann McNeill, Doug McMurdo, Patti Babcock and Emmanuel Martinez; DAILY SPARKS TRIBUNE: Andrew Putz; NEVADA LEGAL NEWS: Scott Sibley; THE HUMBOLT SUN: Susan Brockus and Lorrie Baumann; GARDNERVILLE RECORD COURIER: Sheila Gardner, Michael Schneider, Linda Hiller, Belinda Rohleder and Bonnie Larkin; LAHONTAN VALLEY NEWS: Anne Pershing, Ron Eland, Heather Singer and Larry O'Hanlon; THE ASSOCIATED PRESS: Brendan Riley, Dee-Ann Durbin and Martha Bellisle; MINERAL COUNTY INDEPENDENT-NEWS: Frank Hughes, Tony Hughes and Ted Hughes; LINCOLN COUNTY RECORD: Connie Simkins, Shelley Wadsworth and Tami Hilton; NORTH LAKE TAHOE BONANZA: Irwin M. Goldberg, Vincent Hernandez, Teresa Mills and Bill Husa; RENO GAZETTE-JOURNAL: Bill O'Driscoll and Faith Bremner; ONLINE NEVADA: Erica Olsen; THE RALSTON REPORT: Jon Ralston; NORTH AMERICAN MINING: Dorothy Kosich, KVBC-TV, Las Vegas: Rick Fuentes, reporter and Mark Renfro, photographer. RENO NEWS & REVIEW, LAS VEGAS BUSINESS PRESS AND NEVADA WOMEN; Dennis Myers.
Remarks by Senator Raggio.

Motion carried unanimously.
Senate in recess at 1:36 p.m.

At 2:17 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

Senator Rawson reported that his committee had informed the Acting Governor that the Senate is organized and ready for business.

Lieutenant Governor Hammargren requested that his remarks be entered in the Journal.
(The remarks will be in the final Journal.)

Senator McGinness reported that his committee had informed the Assembly that the Senate is organized and ready for business.
A committee from the Assembly composed of Assemblymen Williams, deBraga and Hettrick appeared before the bar of the Senate and announced that the Assembly was organized and ready for business.

By Senators Raggio and Titus:
Senate Resolution No. 1 - Adopting Senate Standing Rules for the 69th session of the legislature.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Mr. President:, the second sentence of Standing Rule No. 113 has been deleted, because the Secretary and Legal Counsel are of the opinion that it is no longer necessary to engross bills and joint resolutions reported out of committee with a "do pass." Historically all bills had to be engrossed because there was not the modern technology we have today. For many sessions it was merely a protocol of taking those measures with a "do pass" to the engrossing and enrolling division only to be receipted back again. It is their opinion that process is a waste of time and unnecessary today.
Resolution adopted unanimously.

By Senators Raggio and Titus:
Senate Resolution No. 2 - Providing allowances to the leadership and other members of the Senate for periodicals, stamps, stationery and communications.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Mr. President, this resolution provides an allowance for leadership and other members of the Senate for periodicals, stationery, stamps and communications which is used by each Senator for office expenditures for this session.
Resolution adopted unanimously.

By Senators Raggio and Titus:
Senate Resolution No. 3 - Providing for the appointment of attaches.
Mary Jo Mongelli, Ann-Berit Moyle, Mary R. Phillips, Mary Ellen Patt, Claire Clift, Jane Gill, Ruth B. Pierini, Charles Welsh, Sam A. Palazzolo, Ronald Sandoval, Geraldine E. Selover, John D. Turner, Shirley Hammon, Betty Christenson, Jane King, Joan Thran, Lucille Hill, Linda Chapman, Robin Camacho, Mary Hernandez, Maudie S. Long, Paula M. Saponaro, June A. Riesau, Nancy Arnold, Sandra Arraiz, Sheri Asay, Ricka Benum, Lynn Berry, Billie Brinkman, Collette Burke, Cwendolyn Chapman, Lisa Clearwater, Kathy Cole, Angela Culbert, Maryanne Dawicki, Diane Dixon, Madalena Fischer, Patricia Hampton, Carolyn Hoganson, Judy Jacobs, Paula A. Lord-Lufrano, Carol Martini, Carrie Maynard, Mary Jo Meyer, Deborah Miller, Barbara Moss, Sue Parkhurst, Diane C. Rea, Deborah Riggs, Timothy Robison, Deanne Runacres, Donna Sanders, Marion E. Sandoval, Mavis Scarff, Mary Soscia, Kat Souders, Linda L. Ward, JoAnn Wessel, Beverly Willis, Rayna A. Wortman, Norman R. Wessel, Jessie Armstrong, Edward Cordisco, Janet Meridith, Mary Gavin, Rene Goodman, Alyce L. King, Oliver O. Perondi, Joe Pieretti, Rose Marie Price, Gayle Pyle, Lori Whatley and Patty Woodworth.
Senator Raggio moved the adoption of the resolution.
Remarks by Senator Raggio.
Thank you, Mr. President. We are, once again, fortunate to have an excellent staff to work for us this session. It is noteworthy that approximately 60 percent of our staff return each session. They continue to share their valuable expertise to the new attaches who are newcomers to the process.
Resolution adopted unanimously.

By Senators Raggio, Titus, Adler, Augustine, Coffin, Jacobsen, James, Mathews, McGinness, Neal, O'Connell, O'Donnell, Porter, Rawson, Regan, Rhoads, Schneider, Shaffer,, Townsend, Washington, and Weiner.

Senate Concurrent Resolution No. 1.

Senator Raggio moved the adoption of the resolution:
Remarks by Senators Raggio, Mathews, Washington and Neal.
President pro Tempore Jacobsen requested that the following remarks be entered in the Journal.
Senator Raggio
Thank you, Mr. President pro Tempore. It is most appropriate that the first day of our legislative session falls on the same day that our Nation and our State observe the memory of Dr. Martin Luther King. We are fortunate that we can take this first day and pay honor to Dr. King and to all that he stood for.
As a young man during World War II, when I entered military service, I had not traveled far other than in the state of California and Nevada. The military put me on a train and I ended up, in the middle of summer, in northern Louisiana. I am not going to tell you the year, but in later years I found out that where I ended up wasn't very far from where my colleague, the distinguished Senator from North Las Vegas, was apparently living at that time. I did not know that our paths would cross in 1971 and continue to cross until this day.
I was shocked; it was a real cultural, emotional and philosophical shock for me to end up in a small parish in Louisiana and to find signs indicating that there were "colored" rest rooms, "colored water fountains" and that people were forced to stand off the sidewalk because of their color. I frankly could not understand it because I guess I had been somewhat sheltered. But, that experience left a deep impression on my person and on my thought process. I made up my mind that I would never be a part of contributing to that kind of inequality. Although I may not thereafter have expressed it a great deal openly, it did remain a part of my personal commitment.
When the idea of a Nevada holiday to memorialize Reverend Martin Luther King and all that he stood for was first suggested, among others I was quick to be supportive. I am proud that we were able, in this body and in this legislature, to make that a holiday. That was part of my commitment the first session that I became Majority Leader of this body. I think that this is not a day for an idea that represents equality, democracy or justice only for those who are African-Americans, but for all races and nationalities as well. I am a descendant of grandparents who came through Ellis Island as did many others, who offered themselves and their futures to make this a better place for each of us. We all share some heritage like that, so it is important that we take this moment to reflect on just what all those people did who came before us. Some came to this country voluntarily, while some came involuntarily, but that heritage has mixed together today to really bring importance and meaning to all of the words in the documents like the Declaration of Independence or the Constitution of the United States. And to the extent that there are reservations among people of this state and this country today who share other thoughts or harbor biases, let us join with the effort across this country to honor this day so that we may show that it does have meaning. To show that it is not merely for Caucasians, African-Americans or those of other colors or other faiths, but that we can all work together and seek equality for all.
Mr. President pro Tempore, I am very proud to stand today in memory of a man who is one of the great Americans of our time. I believe that the speech he made "I Had a Dream" was one of the greatest speeches in the history of mankind. Every time I hear it, I think about what I am trying to say here today. I am not doing a very good job in expressing how I feel personally, but I feel it for my family and for those with whom I am associated. Frankly, all of the times we have disagreements in the legislative process, we should all reflect that we can all work better together. We can do a lot more working together than we can pulling apart. The Reverend Martin Luther King is not the only one who fostered this concept, but he is certainly the one we remember today.
I join with my colleagues in honoring the memory of Reverend Martin Luther King.

Senator Mathews:

Thank you, Mr. President pro Tempore. I only want to say that I am a poster girl for all that Martin Luther King stood for. I represent a district which is multi-cultural, a district where there are only about 1500 Blacks.. The largest group in the district is Caucasian republican.
I am living the dream that Martin Luther spoke of where we will be known by the strength of his character and not the color of his skin. I am a living representative of what Martin Luther King dreamed of and I am thankful.
Senator Washington:
Thank you, Mr. President pro Tempore. I would like to say that having served in this distinguished body in the last session and having the opportunity to serve again this session with my colleagues and friends, and having my family around me has been a great honor. It has been a thrill and opportunity I never would have dreamed of. Because I have been given this opportunity, I want to make the best of it to not only serve those who have faith in me and believe in me, but more importantly, to serve those who have elected me to this body.
As I thought about the words I would say today regarding Martin Luther King and this holiday in his honor, I remembered the fight which went on in order to allow this day to become a holiday. I remember those pioneers who pleaded and petitioned to try to get a holiday memorializing Dr. King in this state. I want to say this afternoon that there comes a time in which we have to reach beyond the bounds, when we have to reach deep down inside ourselves and look into our hearts and say that we are tired of being confined to a box. It is time to reach beyond our boxes..
There were certain men who founded this country who believed in this principle. They penned the document we call the Declaration of Independence. On July 2, 1776, the Declaration of Independence was ratified and approved by the Continental Congress. July 4, 1776 the delegation voted on the Declaration of Independence from Great Britain. July 8, 1776 the Declaration of Independence was read in public and the liberty bell rang outside the hall. July 19, 1776 the Congress ordered it engrossed. August 2, 1776 members of the Congress signed the document with their sacred oath. The pledge we have made here today is our sacred oath to represent the citizenry of this state; to do service for them. The Declaration of Independence reads in part, "when in the course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the Powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them.
"We hold these truths to be self evident that all men are created equal, that they are endowed by their Creator with certain inalienable rights that among these are life, liberty and the pursuit of happiness." August 2, 1776 Samuel Adams declared "We have this day restored the sovereign to Whom all men ought to be obedient. He reigns in heaven and from the rising to the setting of the sun. Let his kingdom come!"
"When in the course of human events " " .for in the hearts of men ring the bells of freedom." Martin Luther King, the civil rights movement, those who petitioned the Congress of the United States, and the legislators of each state, within the hearts of these men rang the call to be free, to be creative, to give something to their community, to participate in America's promise. Freedom bestows a certain dignity that belongs to me; not to my race, creed, religion, stature or gender; but because I am a human being. History is the gate keeper. As long as we look down the tunnels of history and see where we have made our mistakes and where we have come from, we are better able to prepare ourselves for the future. But, as soon as we close that gateway, as soon as we close that door, we have lost the great opportunity that God has given us to look at ourselves in a mirror. The human spirit yearns for the opportunity to belong. To belong to a country that will live out the creed that it was established upon, that will live out its Constitution, that will live out the laws it has established not for one gender, not for one color, not for one sect, not for one religion but for all people who live within its boundaries. To become "necessary for one people to dissolve the political bands which have connected them with another." I have never had to live under the "Jim Crow" laws, but I have seen the effects of them. I have never had the fire hydrants turned on me nor have I had to experience sharp, gnashing teeth of dogs biting and nipping at my heels. But I have grandparents who lived in Louisiana and have been part of it. As their offspring, my heart begins to yearn to break the political bands that have bound, entrapped and enslaved them. As legislators serving in this body, it becomes our responsibility to not pass legislation that entraps people but rather that which allows the people to become creative, free and mobile to allow them to fulfill their hearts yearning.
W. E. B. DuBois said "there is in this world no such force as the force of a man who is determined to rise for the human soul cannot permanently be chained." You cannot chain the human soul. You cannot chain the soul of a man for he will arise to the opportunity to assume "among the Powers of the earth the separate and equal station to which the Laws of Nature and of Nature's God which has entitled them." Our government, which has been founded as a self- governing body that derives its power from the people, that government has to be self-disciplined and willing to correct itself when it has made an error in judgment. It must be willing to stand up and say that this is the truth and this is what we are standing for. These entitlements which are life, liberty and the pursuit of happiness should not be taken lightly but responsibly. Dr. Martin Luther King, Jr.,s life embodied the Declaration of Independence. It was wrapped up inside of him. Next to the Bible, it is probably the most inspirational document that has ever been penned. To fall short of those ideals is to fall short of what the founding fathers had envisioned for this country. So "We hold these truths to be self-evident ", the truths that lie within our souls is that all men are created equal. That all men are created equal. You have been endowed by your Creator with certain inalienable rights among which is life. Life is to be enjoyed. Life is to be honored. Life is to be shared and to be lived. I can hear Martin Luther King say, "that there is no greater love than this, that a man lay down his life for a friend." Thank you.
(Senator Neal's remarks will be in the final Journal.)

Resolution adopted unanimously.
Senator Raggio moved that all rules be suspended and that Senate Concurrent Resolution No. 1 be immediately transmitted to the Assembly.
Motion carried unanimously.

Senate in recess at 4:33 p.m.

At 4:54 p.m.
President pro Tempore Jacobsen presiding.
Quorum present.

By the Committee on Finance:

Senate Bill No. 1-- An Act making an appropriation to the legislative fund; and providing other matters properly relating thereto.

Senator Raggio moved that the bill be referred to the Committee on Finance.

Motion carried.

Mr. President pro Tempore:
Your Committee on Finance to which was referred Senate Bill No 1, has had the same under consideration, and begs leave to report the same back with the recommendation: Do pass.

William J. Raggio,

Chairman

Senator Raggio moved that all rules be suspended, reading so far had considered second reading, rules further suspended, declared an emergency measure under the Constitution and placed on third reading and final passage.

Senate Bill No. 1.
Bill read third time.
Remarks by Senator Raggio.
Roll call on Senate Bill No. 1:
YEAS--21.
NAYS--None.
Senate Bill No. 1 having received a constitutional majority, Mr. President pro Tempore declared it passed.
Bill ordered transmitted to the Assembly.

CARSON CITY, NEVADA, January 20, 1997

HONORABLE PRESIDENT, Nevada State Senate, Senate Chamber, Legislative Building,
Carson City, Nevada
DEAR MR. PRESIDENT:
In compliance with NRS 218.430, I am returning Senate Bills Nos. 70, 341 and 501 of the 68^th session of the Nevada Legislature which were vetoed by Governor Miller. The Governor's veto messages are also enclosed.
Respectfully,

DEAN HELLER

Secretary of State

CARSON CITY, NEVADA, January 20, 1997

HONORABLE PRESIDENT, Nevada State Senate, Senate Chamber, Legislative Building,
Carson City, Nevada
DEAR MR. PRESIDENT:
In compliance with NRS 218.390, I am returning Senate Joint Resolutions Nos. 3, 14, 17, 21 and 24 of the 68^th session of the Nevada Legislature.
Respectfully,

DEAN HELLER

Secretary of Stat

By Senators James, Augustine, Jacobsen, Lee, Lowden, Mathews, McGinness, Neal, O'Connell, Porter, Raggio, Regan, Shaffer, Townsend and Washington:
Senate Joint Resolution No. 14 of the 68th Session-- Proposing to amend the constitution of the State of Nevada to authorize the legislature to provide for the abatement of taxes on property used in a manner that conserves water.
Resolved by the Senate and Assembly of the State of Nevada, Jointly, That section 1 of article 10 of the constitution of the State of Nevada be amended to read as follows:
Section 1. 1. The legislature shall provide by law for a uniform and equal rate of assessment and taxation, and shall prescribe such regulations as shall secure a just valuation for taxation of all property, real, personal and possessory, except mines and mining claims, which shall be assessed and taxed only as provided in section 5 of this article.
2. Shares of stock, bonds, mortgages, notes, bank deposits, book accounts and credits, and securities and choses in action of like character are deemed to represent interest in property already assessed and taxed, either in Nevada or elsewhere, and shall be exempt.
3. The legislature may constitute agricultural and open-space real property having a greater value for another use than that for which it is being used, as a separate class for taxation purposes and may provide a separate uniform plan for appraisal and valuation of such property for assessment purposes. If such plan is provided, the legislature shall also provide for retroactive assessment for a period of not less than 7 years when agricultural and open-space real property is converted to a higher use conforming to the use for which other nearby property is used.
4. Personal property which is moving in interstate commerce through or over the territory of the State of Nevada, or which was consigned to a warehouse, public or private, within the State of Nevada from outside the State of Nevada for storage in transit to a final destination outside the State of Nevada, whether specified when transportation begins or afterward, shall be deemed to have acquired no situs in Nevada for purposes of taxation and shall be exempt from taxation. Such property shall not be deprived of such exemption because while in the warehouse the property is assembled, bound, joined, processed, disassembled, divided, cut, broken in bulk, relabeled or repackaged.
5. The legislature may exempt motor vehicles from the provisions of the tax required by this section, and in lieu thereof, if such exemption is granted, shall provide for a uniform and equal rate of assessment and taxation of motor vehicles, which rate shall not exceed five cents on one dollar of assessed valuation.
6. The legislature shall provide by law for a progressive reduction in the tax upon business inventories by 20 percent in each year following the adoption of this provision, and after the expiration of the 4th year such inventories are exempt from taxation. The legislature may exempt any other personal property, including livestock.
7. No inheritance tax shall ever be levied.
8. The legislature may exempt by law property used for municipal, educational, literary, scientific or other charitable purposes, or to encourage the conservation of energy or the substitution of other sources for fossil sources of energy.
9. The legislature may by law provide for the abatement of taxes on property used, in whole or in part, in a manner that conserves water.
10. No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the state.
Senator McGinness moved that the resolution be referred to the Committee on Taxation.
Motion carried.

By the Committee on Taxation:
Senate Joint Resolution No.17 of the 68th Session--Proposing to amend the constitution of the State of Nevada to allow the legislature to exempt property from taxation if the amount of tax to be collected would be less than the cost to collect the tax.
Resolved by the Senate and Assembly of the State of Nevada, Jointly, That section 1 of article 10 of the constitution of the State of Nevada be amended to read as follows:
Section 1. 1. The legislature shall provide by law for a uniform and equal rate of assessment and taxation, and shall prescribe such regulations as shall secure a just valuation for taxation of all property, real, personal and possessory, except mines and mining claims, which shall be assessed and taxed only as provided in section 5 of this article.
2. Shares of stock, bonds, mortgages, notes, bank deposits, book accounts and credits, and securities and choses in action of like character are deemed to represent interest in property already assessed and taxed, either in Nevada or elsewhere, and shall be exempt.
3. The legislature may constitute agricultural and open-space real property having a greater value for another use than that for which it is being used, as a separate class for taxation purposes and may provide a separate uniform plan for appraisal and valuation of such property for assessment purposes. If such plan is provided, the legislature shall also provide for retroactive assessment for a period of not less than 7 years when agricultural and open-space real property is converted to a higher use conforming to the use for which other nearby property is used.
4. Personal property which is moving in interstate commerce through or over the territory of the State of Nevada, or which was consigned to a warehouse, public or private, within the State of Nevada from outside the State of Nevada for storage in transit to a final destination outside the State of Nevada, whether specified when transportation begins or afterward, shall be deemed to have acquired no situs in Nevada for purposes of taxation and shall be exempt from taxation. Such property shall not be deprived of such exemption because while in the warehouse the property is assembled, bound, joined, processed, disassembled, divided, cut, broken in bulk, relabeled or repackaged.
5. The legislature may exempt motor vehicles from the provisions of the tax required by this section, and in lieu thereof, if such exemption is granted, shall provide for a uniform and equal rate of assessment and taxation of motor vehicles, which rate shall not exceed five cents on one dollar of assessed valuation.
6. The legislature shall provide by law for a progressive reduction in the tax upon business inventories by 20 percent in each year following the adoption of this provision, and after the expiration of the 4th year such inventories are exempt from taxation. The legislature may exempt any other personal property, including livestock.
7. No inheritance tax shall ever be levied.
8. The legislature may exempt by law property used for municipal, educational, literary, scientific or other charitable purposes, or to encourage the conservation of energy or the substitution of other sources for fossil sources of energy.
9. No income tax shall be levied upon the wages or personal income of natural persons. Notwithstanding the foregoing provision, and except as otherwise provided in subsection 1 of this section, taxes may be levied upon the income or revenue of any business in whatever form it may be conducted for profit in the state.
10. The legislature may exempt from taxation that property for which the annual taxes due would be less than the cost of collecting those taxes.

Senator McGinness moved that the resolution be referred to the Committee on Taxation.
Motion carried.

By Senators Rhoads and McGinness:
Senate Joint Resolution No. 21 of the 68th Session-- Proposing to amend the constitution of the State of Nevada to provide that the state controller is appointed by and serves at the pleasure of the state treasurer.

Resolved by the Senate and Assembly of the State of Nevada, Jointly, That section 19 of article 5 of the constitution of the State of Nevada be amended to read as follows:
[Section] Sec. 19. 1. A secretary of state, a treasurer, [a controller,] and an attorney general, shall be elected at the same time and places, and in the same manner as the governor. The term of office of each shall be the same as is prescribed for the governor. Any elector shall be eligible to either of said offices.
2. The state treasurer shall appoint a state controller. The controller serves at the pleasure of the treasurer. The legislature may prescribe by law the qualifications and duties of the state controller.
3. The provisions of this section pertaining to the appointment and service of a state controller become effective on November 7, 2000. Notwithstanding the provisions of subsection 1, the term of office of the controller elected at the general election in 1998 expires on November 7, 2000.

Senator O'Connell moved that the resolution be referred to the Committee on Government Affairs.
Motion carried.

By the Committee on Judiciary:
Senate Joint Resolution No. 24 of the 68th Session-- Proposing to amend the constitution of the State of Nevada to require the establishment of a commission on judicial performance.
Resolved by the Senate and Assembly of the State of Nevada, Jointly, That a new section be added to article 6 of the constitution of the State of Nevada to read as follows:
Sec. 22. 1. The Legislature shall establish by law a Commission on Judicial Performance to evaluate the judicial performance of each Justice of the Supreme Court and District Judge.
2. The Legislature shall prescribe by law the membership, powers and duties of the Commission, and such other provisions as it determines are necessary to carry out those powers and duties.

Senator James moved that the resolution be referred to the Committee on Judiciary.
Motion carried.

Mr. President pro Tempore announced that the following standing committees had been appointed, first-named Senator being chairman and the second-named Senator being vice-chairman.

COMMERCE AND LABOR--
Townsend, O'Connell, Augustine, Rhoads, Neal, Shaffer, Schneider.
FINANCE--
Raggio, Rawson, Jacobsen. O'Donnell, Coffin, Mathews, Regan.
GOVERNMENT AFFAIRS--
O'Connell, Raggio, Porter, O'Donnell, Shaffer, Titus Schneider.
HUMAN RESOURCES AND FACILITIES--
Rawson, Augustine, Townsend, Washington, Neal, Mathews, Wiener.
JUDICIARY--
James, Porter, McGinness, Washington, Adler, Titus, Wiener.
LEGISLATIVE AFFAIRS AND OPERATIONS--
Augustine, James, Raggio, Rawson, Titus, Mathews, Schneider.
NATURAL RESOURCES--
Rhoads, Jacobsen, McGinness, James, Coffin, Adler, Regan.
TAXATION--
McGinness, Rhoads, Townsend, O'Connell, Coffin, Regan, Adler.
TRANSPORTATION--
O'Donnell, Washington, Jacobsen, Porter, Neal, Shaffer, Wiener.

Senator Raggio announced that Governor Robert J. Miller will address the legislature in a joint session on January 23, 1997 at 7 p.m., in the Assembly Chambers.

By the Committee on Natural Resources:
Senate Joint Resolution No. 1--Urging the Tahoe Regional Planning Agency to prepare a plan to carry out its master plan for extending the existing systems and facilities for nonmotorized transportation completely around Lake Tahoe.
Senator Rhoads moved that the resolution be referred to the Committee on Natural Resources.
Motion carried.

By the Committee on Natural Resources:
Senate Joint Resolution No. 2--Urging the Tahoe Regional Planning Agency to continue to amend its ordinances to provide an exception for a project when the strict enforcement of the ordinances would create unfairness.
Senator Rhoads moved that the resolution be referred to the Committee on Natural Resources.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 2-- AN ACT relating to paging; requiring positive identification of the ultimate user of paging equipment; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Commerce and Labor.
Motion carried.

By the Committee on Natural Resources:
Senate Bill No. 3--AN ACT making an appropriation to the department of transportation for carrying out the North Shore Beautification and Water Quality Project; and providing other matters properly relating thereto.
Senator Rhoads moved that the bill be referred to the Committee on Finance.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 4--AN ACT relating to parole; requiring parolees to submit to periodic tests for controlled substances as a condition of parole; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 5--AN ACT relating to crimes; requiring certification by a panel before offenders convicted of certain crimes may be released on probation or parole; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 6--AN ACT relating to criminal procedure; requiring the court to provide certain information to victims of and witnesses to sexual or violent offenses; requiring the prosecuting attorney to provide certain information to victims of sexual or violent offenses committed by juveniles; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 7-- AN ACT relating to mentally ill offenders; requiring lifetime supervision of certain mentally ill offenders; providing a penalty; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 8-- AN ACT relating to mentally ill offenders; requiring certification by a panel before an offender who pleaded guilty but mentally ill may be released on parole; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Natural Resources:
Senate Bill No. 9--AN ACT relating to motor vehicles; providing for the issuance of special license plates for the support of the preservation and restoration of the natural environment of the Lake Tahoe Basin; imposing a fee for the issuance of those license plates to finance programs for the preservation and restoration of the natural environment of the Lake Tahoe Basin; and providing other matters properly relating thereto.
Senator Rhoads moved that the bill be referred to the Committee on Transportation.
Motion carried.

By Senator Rhoads:
Senate Bill No. 10--AN ACT relating to elections; requiring a candidate for certain partisan offices who receives a majority of the votes in a primary election to be declared the nominee for such an office; requiring the name of that candidate to be placed on the ballot for the general election; and providing other matters properly relating thereto.
Senator Rhodes moved that the bill be referred to the Committee on Government Affairs.
Motion carried.

By Senator Rhoads:
Senate Bill No. 11--AN ACT relating to carcasses of livestock; prohibiting, under certain circumstances, the return of a processed carcass of livestock other than the carcass that was delivered for processing; providing a penalty; and providing other matters properly relating thereto.
Senator Rhoads moved that the bill be referred to the Committee on Human Resources and Facilities.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 12--AN ACT relating to the division of parole and probation of the department of motor vehicles and public safety; requiring the division to set and to review periodically the level of supervision for parolees and probationers in certain situations; increasing the fee a parolee or probationer must pay to defray the cost of supervision; requiring an assistant parole and probation officer to reimburse the division for the cost of the initial training provided to the officer in certain circumstances; requiring the division to contact each parolee within 5 days after the parolee's release from prison; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By Senator Raggio:
Senate Bill No. 13--AN ACT relating to crimes; prohibiting the transmission of certain types of unsolicited electronic mail under certain circumstances; providing a penalty; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 14--AN ACT relating to the state board of parole commissioners; eliminating the limitation on the number of terms a member of the board may serve; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 15--AN ACT relating to the state board of parole commissioners; changing the provisions governing the number of members of the board necessary to make decisions concerning certain prisoners; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 16--AN ACT relating to records of the juvenile court; allowing a district court to have access to certain records of the juvenile court without obtaining a court order; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By the Committee on Judiciary:
Senate Bill No. 17--AN ACT relating to the state board of parole commissioners; requiring the board to compile and maintain detailed information concerning decisions regarding parole; increasing the number of hours of orientation and annual training for members of the board and case hearing representatives; requiring the board to review every 2 years its standards for making decisions regarding parole; making the adoption of regulations by the board subject to the Nevada Administrative Procedure Act; providing for staggered terms for members of the board; and providing other matters properly relating thereto.
Senator James moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By Senator Raggio:
Senate Bill No. 18--AN ACT relating to insurance; further limiting the time and amount of recovery by an insured from the Nevada insurance guaranty association; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee on Commerce and Labor.
Motion carried.

By Senator Raggio:
Senate Bill No. 19--AN ACT relating to the defacement of property; increasing the fines and hours of community service for placing graffiti on or otherwise defacing the property of another; requiring the suspension of the driver's license of a person who is found guilty of placing graffiti on the property of another; and providing other matters properly relating thereto.
Senator Raggio moved that the bill be referred to the Committee on Judiciary.
Motion carried.

By Senator Adler:
Senate Bill No. 20--AN ACT relating to motor vehicles; revising the fees charged by the department of motor vehicles and public safety to reinstate the registration of a motor vehicle in certain circumstances; and providing other matters properly relating thereto.
Senator Adler moved that the bill be referred to the Committee on Transportation.
Motion carried.

By Senator Regan:
Senate Bill No. 21--AN ACT making an appropriation to the State Public Works Board for the remediation of the indoor air quality problem at the Southern Nevada Science Center; and providing other matters properly relating thereto.
Senator Regan moved that the bill be referred to the Committee on Finance.
Motion carried.

ASSEMBLY CHAMBER, Carson City, January 20, 1997

To the Honorable the Senate:
I have the honor to inform your honorable body that the Assembly on this day passed Senate Concurrent Resolution No. 1.

Jacqueline Sneddon

Assistant Chief Clerk of the Assembly

Senator Raggio moved that the Senate adjourn until Wednesday, January 22, 1997 at 11 a.m. in honor of Martin Luther King, Jr.and Guy Shipler.
Motion carried.

Senate adjourned at 5:27 p.m.

Approved:

Lawrence E. Jacobsen

President pro Tempore of the Senate

Attest: Janice L. Thomas
Secretary of the Senate