The Committee on Constitutional Amendments was called to order at 4:00 p.m., on Thursday, April 29, 1999. Chairman Robert E. Price presided in Room 3161 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All Exhibits are available and on file at the Research Library of the Legislative counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Mr. Robert E. Price, Chairman

Mr. Harry Mortenson, Vice Chairman

Mr. Bernie Anderson

Mr. Don Gustavson

Ms. Kathy Von Tobel

COMMITTEE MEMBERS ABSENT:

Mr. Greg Brower

Ms. Sheila Leslie

GUEST LEGISLATORS PRESENT:

Senator Ann O’Connell, Senate District 5

STAFF MEMBERS PRESENT:

OTHERS PRESENT:

Committee Policy Analyst Robert Erickson referred the committee to a suggested amendment for A.J.R. 13, submitted by the Administrative Office of the Courts (Exhibit C). He reviewed the objective of the bill; which was to extend the term of office of newly appointed judges, so they would not have to run immediately after being appointed. After the original hearing, the Legislative counsel inquired if the revision would effect the staggered terms of Supreme Court Justices. According to the Legislative counsel, the constitution did not specify judicial branch elections must occur for an unexpired term, although it did exist for the executive and legislative branches. After investigation, Mr. Erickson learned elections had taken place to finish unexpired terms. The counsel suggested that problem be fixed while passing some of the measures referring to the courts. The amendment (Exhibit C) included the clause "when it shall be filled by election for the residue of the unexpired term." That clause was the same language used in the legislative and executive stipulations in the constitution.

Mr. Anderson asked if the constitution had designated seats to be staggered when the court was created. He also wanted to know if the two new seats on the court also had staggered terms of office.

Mr. Erickson responded both were correct, that the court had been created with staggered terms and the two new seats had staggered terms as well. The legislative counsel thought the process of reelecting new justices in the middle of the term could erode the staggering process. With the proposed amendment, the staggered terms would not be threatened.

Mr. Anderson was under the impression if the appellate court system was approved, the number of Supreme Court Justices would be reduced.

Mr. Erickson answered that was correct. The ultimate goal was to have a five- member Supreme Court with an appellate court of similar size.

Mr. Anderson clarified the two additional justices added to the court would be the same seats dropped if the appellate court were created.

Chairman Price closed the discussion on A.J.R. 13.

Senator Ann O’Connell, representing district 5 in Clark County, stated the resolution would amend Article 10, section 1 of the Nevada Constitution. That section required "equal assessment and taxation of property." Due to that stipulation, there was no way under current law to address abatement of property taxes in light of severe financial hardship. The bill allowed assessors to help individuals who were threatened with losing their homes by an inability to pay property taxes. She acknowledged a change in the constitution was a lengthy process. If the resolution was passed, the legislature would be required to define "severe economic hardship." According to Senator O’Connell, subsection 8 of section 1 had been broadly interpreted by the Nevada Supreme Court to allow the legislature to define "charitable purpose." She reminded the committee the bill would not provide an across the board property tax reduction but rather a means to allow abatement for certain residents on a temporary basis.

Chairman Price asked if the property tax could be reduced, rather than fully exempted. Senator O’Connell said the abatement would be a reduction only. She clarified the reduction in tax would allow the taxpayer to recuperate from a health problem or recover from financial disaster before having to pay property taxes.

Carole Vilardo, president of the Nevada Taxpayers Association, said her organization supported the resolution. The abatement issue included two facets. The legislature was required to set up the conditions and criteria for the abatement. She suggested several methods of calculating abatements, including a reduction in the valuation of property in order to reduce the tax. Ms. Vilardo preferred property tax abatement on a case-by-case basis, rather than an across-the-board cut. That method addressed the needs of individuals, while an across-the-board cut would be mandated in the constitution.

Senator O’Connell said several assessors had tried to give abatements without legal authorization. Passage of the resolution would preclude homeowners from having to go on welfare.

Chairman Price closed the hearing on S.J.R. 11.

Senator O’Connell said the resolution addressed problems with exemptions in current tax law. There was no way to qualify tax exemptions, and it was difficult under current law to define charitable donations. Those donations were addressed in section 6 of the resolution. The measure defined how the legislature would give political and charitable exemptions.

Ms. Von Tobel observed both S.J.R. 11 and S.J.R. 20 were clean resolutions and passed with the approval of the Senate. She hoped the committee and the full Assembly would pass both resolutions as well.

Ms. Vilardo expressed her support for the resolution.

Mr. Erickson introduced a proposed amendment for A.J.R. 22 (Exhibit D). The resolution addressed Article 17, section 22 of the Nevada Constitution. In light of the amendment to A.J.R. 13, there would no longer be a conflict between that resolution and A.J.R. 22. The amendment provided for staggered terms in the appellate court and appointees for the Supreme Court.

Mr. Anderson wanted to clarify the presence of staggered terms in the appellate court. He asked if another amendment was required in light of the amendment to A.J.R. 13.

Mr. Erickson responded the amendment to A.J.R. 13 should also be added to A.J.R. 22. That would ensure the constitutional change would be made in case one of the two resolutions failed to pass.

Mr. Anderson asked the committee to further amend the bill to include language referring to staggered terms. The language would be similar to A.J.R. 13.

Chairman Price asked Mr. Erickson to work with the bill drafters to ascertain the quickest and most efficient way to add the language, so the measure could be passed to the Senate.

Mr. Anderson said the committee should leave the option open to the bill drafter whether to draft a new amendment altogether or change the existing amendment, since it had not been introduced on the floor.

Mr. Erickson gave the committee a brief synopsis of the bills still in the committee’s possession.

The meeting of the Assembly Committee on Constitutional Amendments was adjourned at 4:45 p.m.

RESPECTFULLY SUBMITTED:

Kelly Gregory,

Committee Secretary

APPROVED BY:

Assemblyman Bob Price, Chairman

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