The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 1:40 p.m., on Monday, February 22, 1999, in Room 2144 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Senator Dean A. Rhoads, Chairman

Senator Lawrence E. Jacobsen, Vice Chairman

Senator Mike McGinness

Senator Mark A. James

Senator Raymond C. Shaffer

Senator Bob Coffin

Senator Maggie Carlton

STAFF MEMBERS PRESENT:

Fred Welden, Committee Policy Analyst

Scott Corbett, Committee Secretary

OTHERS PRESENT:

Chairman Rhoads opened the meeting by stating Senate Bill (S.B.) 108 would be heard in a subcommittee immediately following adjournment.

Chairman Rhoads asked for committee introduction of the following bill draft requests (BDRs):

Chairman Rhoads opened the hearing on S.B. 82.

Daryl E. Capurro, Lobbyist, Nevada Motor Transport Association, gave testimony in support of S.B. 82 and referred to the fiscal note (Exhibit C) for this bill. Mr. Capurro pointed out the current law now allows for all costs of the issuance of this permit to be charged to the hazardous materials transportation program, and is one of the few programs in which all of the additional costs are included in the issuance of a permit. Mr. Capurro drew attention to the fact that most fees for permits are for the costs incurred for issuing the permit and explained the current costs for issuing a hazardous materials permit are not easily identified. Mr. Capurro noted a vehicle carrying hazardous materials without a hazardous materials plaque makes enforcement difficult and lowering the permit costs would increase compliance and make enforcement easier.

Chairman Rhoads asked if these changes are made will the permittee only be responsible for the cost of issuing the permit. Mr. Capurro responded by saying the new language allows for administrative costs and the cost of the permit, but does drop the inspection fee requirement.

Peter D. Krueger, Lobbyist, Nevada Petroleum Marketers and Convenience Store Association, went on record in support of S.B. 82 and stressed this bill will validate the costs which go into the permitting process.

Doug Busselman, Lobbyist, Nevada Farm Bureau, spoke in support of S.B. 82. Mr. Busselman mentioned that agriculture producers are affected by hauling or paying someone to haul fertilizer, which is considered a hazardous material and this bill would help reduce their costs.

Michael E. Hood, Colonel, Chief, Nevada Highway Patrol Division, Department of Motor Vehicles and Public Safety, spoke in opposition of S.B. 82 from prepared comments (Exhibit D). Colonel Hood claimed if this bill is passed section 2 would reduce revenue collected to reimburse the Highway Fund Authorization, which pays for the hazardous materials transportation program and has historically fallen short on generating enough revenue. Colonel Hood explained in order to maintain the current level of service provided by the program the overall funding would need to stay the same and he showed a breakdown of where the funds are distributed (Exhibit D).

Mary Lynne Evans, Executive Director, State Emergency Response Commission, Department of Motor Vehicles and Public Safety, gave testimony in opposition to S.B. 82 from prepared comments (Exhibit E). Ms. Evans claimed if passed this bill would cut funding to her commission by 66 percent and impact the local jurisdictions by cutting funding for hazardous materials incident preparedness.

Senator Jacobsen asked if S.B. 82 would curtail the federal funds received for emergency response. Ms. Lynne said the federal funds may be affected because the revenue generated from these permits are usually used as matching funds.

K. Neena Laxalt, Lobbyist, Nevada Propane Dealers Association, stated she did not have an official position from her association, but did comment on the federal regulations that may be affecting the propane industry by making propane a hazardous material.

Senator Jacobsen asked Ms. Laxalt how many propane dealers are in the State of Nevada. Ms. Laxalt did not know and said she would get that information to Senator Jacobsen as soon as possible. Colonel Hood stated there are approximately 15 dealers statewide.

Chairman Rhoads closed the hearing on S.B. 82 and opened the hearing on Senate Joint Resolution (S.J.R.) 10.

Chairman Rhoads gave a background on S.J.R. 10 and asked it be on record. He stated:

Fred Welden, Committee Policy Analyst, Research Division, Legislative Counsel Bureau, handed out a summary outline of S.J.R. 10 (Exhibit F), a sheet on a proposed amendment to S.J.R. 10 (Exhibit G), and explained the proposed amendments. Mr. Welden pointed out if this resolution in this general form is approved by the Legislature, when it goes back to Congress there will be an attachment that goes into more detail in regards to this resolution.

Chairman Rhoads brought attention to the fact that up-front money will be needed for Division of State Lands and BLM to get this resolution started. Chairman Rhoads asked Robert E. Stewart, Public Information Specialist, Bureau of Land Management, United States Department of the Interior, to report to Robert V. Abbey, State of Nevada Director, Bureau of Land Management, United States Department of the Interior, to find out what he needs; and Pamela B. Wilcox, Acting Administrator, Division of Conservation Districts, and Administrator and State Land Registrar, Division of State Lands, Department of Conservation and Natural Resources, to submit what she needs to this committee so he can talk to the chairman of the Senate Committee on Finance. Chairman Rhoads added he would like to see as much competition as possible when it comes to the land sales, and the local governments will have first choice on these lands for parks, schools and hospitals. Chairman Rhoads emphasized S.J.R. 10 is one of the most important pieces of legislation that we will process for rural Nevada during this session.

Ms. Wilcox stated the Southern Nevada Public Lands Act of 1998 provides us a good model and is accepted by the BLM, the environmental groups, commodity groups, local governments and is working well. Ms. Wilcox continued by saying she thinks interest groups with concerned public lands should be included in the process of how the revenue generated should be used.

Mr. Stewart went on record to say the BLM is in support of the concept of this resolution. Mr. Stewart suggested, as an idea only, that future amendments to this type of legislation should include the wording "… lands identified through the BLM’s land use planning process for disposal …" because this wording should not cause any problems with documents already on file. Mr. Stewart continued by expressing concern with the definition of what "environmentally sensitive lands" is going to be and asked the committee to consider validating existing rights; (i.e., grazing privileges) and keeping open exchanges in the checkerboard area of the railroad across the Humboldt River area.

Senator Shaffer asked Mr. Stewart if there is going to be any preference given to a landowner that owns property adjacent to the lands that are going to be sold, and Mr. Stewart responded by saying the approach in this act would be to the highest bidder.

Senator McGinness expressed concern from some of his constituents that this land would be sold in such huge blocks that the average citizen could not participate in the land auctions.

Mr. Stewart replied by saying they anticipate the federal law will require the BLM work with local governments in identifying the parcels and it has been their policy to not offer huge blocks of land, but could offer larger parcels if needed by developers.

Senator Jacobsen asked if the federal government will have the right to impose restrictions on the lands being sold under this act, and Mr. Stewart said they generally do not and the local governments would implement their own zoning.

Michelle M. Gamble, Lobbyist, Nevada Association of Counties, thanked Chairman Rhoads for allowing them to participate in the drafting of this resolution and commented on this bill as being a win-win situation for local governments, BLM and the state.

Thomas J. Grady, Lobbyist, Nevada League of Cities and Municipalities, went on record to be in support of S.J.R. 10.

C. Joseph Guild, Lobbyist, Nevada Cattlemen’s Association, also speaking on behalf of Doug Busselman, Lobbyist, Nevada Farm Bureau, acknowledged both parties are in support of this resolution and suggested that some of the revenue generated from the land sales could also supplement grazing fees.

Chairman Rhoads agreed with Mr. Guild’s suggestion by saying his concern has been raised, and this resolution is worded so other programs, like range improvement and wild horse management, could possibly benefit.

Joseph L. Johnson, Lobbyist, Sierra Club, spoke in support of S.J.R. 10, but expressed concern with some of the language not specifying wilderness areas. Mr. Johnson also emphasized they would like to be part of the process of deciding how the revenue is spent.

Demar Dahl, Concerned Citizen, expressed his support of this resolution, but has concerns with how the revenue from the land sales will be spent. Mr. Dahl pointed out that most of the so-called environmentally sensitive lands have been formed due to the diversions of waterways since Nevada was settled and were not here prior to development. Mr. Dahl is concerned with the revenue generated from the land sales being used to buy private ranches. Chairman Rhoads concurred with Mr. Dahl’s concern and stated this is his number one concern in regards to this resolution.

Henry Etchemendy, Lobbyist, Nevada Association of School Boards, conveyed his organization is in full support of S.J.R. 10 and the money from this resolution would definitely help Nevada schools.

Merrit K. "Ike" Yochum, Lobbyist, went on record to be in opposition of S.J.R. 10 because he claims the state already owns the lands in question due to the Public Lands Ownership Act that was passed in 1979.

Chairman Rhoads closed the hearing on S.J.R. 10 and asked action be taken with Mr. Johnson’s amendment being included with the other amendment.

There being no further business before the committee, the meeting was adjourned at 3:05 p.m.

RESPECTFULLY SUBMITTED:

Scott Corbett,

Committee Secretary

APPROVED BY:

Senator Dean A. Rhoads, Chairman

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