The Committee on Government Affairs was called to order at 8:10 a.m., on Wednesday, February 17, 1999. Chairman Douglas Bache presided in Room 3143 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. Douglas Bache, Chairman

Mr. John Jay Lee, Vice Chairman

Ms. Merle Berman

Mrs. Vivian Freeman

Ms. Dawn Gibbons

Mr. Harry Mortenson

Mr. Roy Neighbors

Ms. Bonnie Parnell

Ms. Gene Segerblom

Mr. Kelly Thomas

Ms. Sandra Tiffany

Ms. Kathy Von Tobel

Mr. Wendell Williams

COMMITTEE MEMBERS EXCUSED:

Mr. David Humke

STAFF MEMBERS PRESENT:

OTHERS PRESENT:

Chairman Bache called the meeting to order and asked for introductions on Bill Draft Request 23-917.

• BDR 23-917 – Revises provisions governing contributions by justices of supreme court to public employees’ retirement system. (A.B. 269)

Chairman Bache opened the hearing on Assembly Joint Resolution 1.

Chairman Bache turned the meeting over to Vice Chairman Lee and proceeded to testify in favor of A.J.R. 1. He described the joint resolution as a simple philosophical statement regarding the lands at the Nellis Air Force Range. In 1986 the Military Lands Withdrawal Act withdrew 3 million acres of land that comprised the range for use by the United States Air Force and the Federal Government for a period of 15 years. In Nevada there had been a history of attempts to return federal lands to the state, but he felt that renewing the withdrawal for another 15 years was not unreasonable. However, he said, given the recreational and economic possibilities in the lands encompassed by the Nellis Air Force Range, further study on release of some of those lands to the state for public use was warranted.

A.J.R. 1 was a fairly simple statement asking Congress to renew the period for 15 years as opposed to the 25 years to life as requested by the Air Force. Chairman Bache felt there were appropriate lands that could easily be returned to the state which were not needed by the Federal Government or the Air Force for testing, training and military operations.

Assemblywoman Segerblom asked if a specific amount of land was targeted for release. Mr. Bache said he did not want to identify the tracts of land in A.J.R.1. He indicated, if necessary, the state and the Federal Government could negotiate for particular pieces of land, especially those that were of value.

Assemblywoman Berman inquired as to the value of the released land. Mr. Bache suggested that Pamela Wilcox, Administrator of the Division of State Lands, could provide the information.

Assemblywoman Gibbons asked why the 15-year term had been chosen rather than 20 or 25 years.

Fifteen years was an appropriate amount of time in which to review the matter, Mr. Bache responded. He added he believed periodic review of federal land policies was appropriate.

Ms. Gibbons mentioned the 100-year lease held by the Nevada Air National Guard at Reno-Tahoe International Airport. The Air Force had made a large investment there, she said, and wondered if the 15-year term was long enough.

Mr. Bache emphasized the Nellis Air Force Range did not include the base itself. Some people in the state had advocated the range area be withdrawn forever, and others had feared the Federal Government and the Air Force would leave southern Nevada if the withdrawal period could not be extended. "If we lock it up far beyond the length of our individual memory for the Federal Government," he said, "people tend to forget and may think this land always belonged to the Federal Government."

Assemblywoman Segerblom inquired if the proposal included the Nellis Air Force Base itself. Chairman Bache responded only the Nellis Air Force Range was included.

Assemblyman Roy Neighbors, Assembly District 36, testified at length on the question of the highly mineralized lands within the Nellis Air Force Range, specifically a mining district north of the Beatty area. He emphasized his support of multiple use of those lands, whether for hunting, fishing or mining activities, and urged support of A.J.R. 1. The University of Nevada, Reno (UNR) conducted an extensive geological study of the area several years ago and had hundreds of assays to show the area was highly mineralized and conducive to mining activities.

Chairman Bache then pointed out Yucca Mountain was within the range and he felt the state should not send the wrong message to Washington about the government’s right to use the property.

Vice-Chairman Lee recognized Douglas Bierman, consultant, Nevada Educational & Recreational Services and Investment, who testified on behalf of Lincoln County and the City of Caliente. He referred the committee to the handout "Talking Points, Lincoln County Testimony on A.J.R. 1" (Exhibit C). He said the people of Lincoln County and Caliente had provided extensive testimony in public hearings on the Draft Legislative Environmental Impact Statement for the Renewal of the Nellis Range Land Withdrawal. Text of the full report was included in Exhibit C as Lincoln County Commissioner Rey Flake’s testimony.

Lincoln County and the City of Caliente supported continued operations at the Nellis Range, Mr. Bierman continued. Such operations were important to national security and potentially important to the economies of Lincoln County and Caliente.

Referring the committee to the maps in Exhibit C, he pointed out that nearly 80 percent of the airspace over Lincoln County was controlled by Nellis, and 60 percent of that airspace was authorized for Air Force supersonic flights. Also within Lincoln County was the Groom Lake Area (popularly known as Area 51), and which was not shown on the map. If that land were permanently withdrawn, Mr. Bierman opined, potential economic and environmental recreational benefits would be severely limited.

It was the opinion of both Lincoln County and the City of Caliente that the 15-year range renewal requirement would ensure the impacts on land and airspace were effectively identified over time. If Congress was required to reauthorize withdrawal every 15 years, the county and the city would be provided with effective venues for raising and mitigating the impacts of Nellis Range use.

Assemblywoman Segerblom inquired about mining activities in the area and if the small airport on Highway 93 was in use. Mr. Bierman replied he did not know.

Chairman Bache questioned the possibility of development and economic activity if the lands in the south range were released to Lincoln County. Mr. Bierman responded any land would be gratefully accepted and since 97 percent of the land area of Lincoln County was controlled either by the federal government or the state, the type of economic development was very limited. Mr. Bache said with so much county land under federal or state control, there was no property tax base upon which to run county governments and localities.

Mr. Bierman replied there was great reliance on the PILT (Federal Payments in Lieu of Taxes) payments which, as everyone knew, were questionable as far as equity was concerned.

Assemblyman Neighbors stated Lincoln County had more land under federal control than any other state in the country. He asked if oil drilling programs, begun several years ago, were still in place. Mr. Bierman replied affirmatively.

Vice-Chairman Lee closed the hearing and asked for a motion on A.J.R. 1.

Chairman Bache announced that Policy Analyst David Ziegler had obtained information from the State of Nevada Committee on Benefits. At the committee meeting on February 4, it had been decided to look into the information packets sent to participants in the State of Nevada Group Insurance Programs prior to the open enrollment period in October of 1998. It was thought a letter could be sent to the Committee on Benefits asking them to reopen its enrollment period to allow participants the opportunity to make changes. On February 4, some members of the Committee on Government Affairs had expressed concern that state employees had not been made fully aware of the ramifications of the insurance plan, and it was for this reason that Chairman Bache directed Mr. Ziegler to provide the committee with the requested information.

Committee Policy Analyst David Ziegler introduced two large packets of information (Exhibit D and Exhibit E). Basically what it was, he said, was a letter to each category of plan participant. The letters were customized depending on whether they were addressed to basic state employees, non-state employees, COBRA (Consolidated Omnibus Budget Reconciliation Act (of 1984)) participants, retirees, and so forth. The main message, as he saw it, was that the Committee on Benefits had advised participants of the rate changes.

Assemblywoman Von Tobel asked if the members of the state-funded plan had been informed there was going to be a "major hole" in the plan, or that there would be a deficit of around $25 million.

Mr. Ziegler did not see anything in the packets that described budgetary situations or the large excess of expenses as compared to revenues.

After some discussion, the committee determined the appropriate information had been provided to participants in the State of Nevada Group Insurance Plan and thanked Assemblywoman Parnell for her suggestion that the committee request the information.

Chairman Bache announced a joint meeting with the Senate Committee on Government Affairs on Thursday, February 25 at 3:30 p.m. in Room 1214, to hear a presentation of the Southern Nevada Strategic Plan by the Southern Nevada Strategic Planning Authority. The meeting would be video-conferenced to the Grant Sawyer Office Building in Las Vegas.

There being no further business to come before the committee, Chairman Bache adjourned at 8:55 a.m.

RESPECTFULLY SUBMITTED:

Charlotte Tucker,

Committee Secretary

APPROVED BY:

Assemblyman Douglas Bache, Chairman

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