The Senate Committee on Natural Resources was called to order by Chairman Dean A. Rhoads, at 1:48 p.m., on Friday, May 7, 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

GUEST LEGISLATORS PRESENT:

Assemblywoman Kathy A. Von Tobel, Clark County Assembly District No. 20

Senator Jon C. Porter, Sr., Clark County Senatorial District No. 1

Assemblyman Bob Beers, Clark County Assembly District No. 4

Assemblyman David E. Humke, Washoe County Assembly District No. 26

STAFF MEMBERS PRESENT:

Fred Welden, Committee Policy Analyst

Scott Corbett, Committee Secretary

OTHERS PRESENT:

Assemblywoman Marcia de Braga, Churchill, White Pine, Eureka and Lander counties Assembly District No. 35, submitted a signed document from the Truckee-Carson Irrigation District, Pyramid Lake Paiute Tribe of Indians, City of Fallon, Churchill County, and Sierra Pacific Power Company outlining the background and provisions that have been agreed upon for A.B. 380 (Exhibit C). Assemblywoman de Braga also submitted two proposed amendments to A.B. 380 from Peter J. Morros, Administrator, State Department of Conservation and Natural Resources (Exhibit D), and the Newlands Water Rights Coalition.

Chairman Rhoads asked Assemblywoman de Braga what would happen if/when the fund for buying water rights is depleted. Assemblywoman de Braga responded that they will not know what funds will be necessary until they buy all the water rights because the fair market value of these rights is unknown. Assemblywoman de Braga added that they should know more about the status of the fund for the next Legislature that meets in 2001.

Senator McGinness commented if more funding is needed the state might be able to contribute at the time of need. Assemblywoman de Braga pointed out that there would also be an annual report generated from the purchases of the water rights.

Chairman Rhoads asked who would receive the report. Assemblywoman de Braga replied that the report would be given to both the Assembly and the Senate from the Carson Water Subconservancy District, which manages the fund.

Mr. Morros clarified that the fund would include $4 million from the state, $7 million from the federal government and an additional $2.5 million from other local interests. Chairman Rhoads asked how firm the funds are from the federal government. Mr. Morros replied that United States Senator Harry Reid has assured him that the funds will be available. Assemblywoman de Braga confirmed the assurance. Mr. Morros added that the federal money would be available at $1.5 million per year for 5 years. Chairman Rhoads asked which year the funds would be available. Mr. Morros replied that this fund expires in the year 2004 so he hopes it would start soon.

Senator McGinness asked if the agreement that has been met could be extended if the federal money is delayed by a year or so. Assemblywoman de Braga replied that the agreement has a drop-dead date that starts next year. Chairman Rhoads inquired if they could start without the federal funds. Assemblywoman de Braga noted that this will start as soon as people start signing up for their water rights to be purchased, and they will then be paid as the money comes in because not all the money will be there the first day.

Senator McGinness asked if it would be possible to move up the ending date to purchase these water rights or would all of the parties involved need to get back together for further discussion. Assemblywoman de Braga replied all of the parties would probably agree to that if there was no activity in the funds. Mr. Morros commented that action would have to be taken by the Legislature because there is a sunset provision for 2004, included in A.B. 380.

Chairman Rhoads asked that a letter from Francis E. Dubois III be submitted for the record (Exhibit E).

Chairman Rhoads opened the hearing on A.B. 347 and A.B. 408, and commented that these bills will be heard in a subcommittee including Senator Carlton, Senator McGinness and chaired by Senator James.

Julie A. Wilcox Slay, Lobbyist, Southern Nevada Water Authority, spoke from prepared comments (Exhibit F) concerning A.B. 347 and A.B. 408, and submitted four letters from members of the Advisory Committee for Ground Water Management that could not be present (Exhibit G, Exhibit H, Exhibit I, and Exhibit J). Ms. Wilcox Slay stated that the two largest issues heard by the Advisory Committee for Groundwater Management were declining water levels and connection to a municipal water supply. Ms. Wilcox Slay noted that A.B. 347 allows for a fee increase from $10 to $27 for a domestic well, and permitted right to pay for the ground water recharge program that the Southern Nevada Water Authority is conducting.

The other main issue outlined by Ms. Wilcox Slay was connection to the municipal water from a domestic well, which had two major concerns. These concerns involved mandatory hookup and cost of the connection. Ms. Wilcox Slay pointed out that the costs involved in hooking up a domestic well user to the municipal supply is historically a burden to the customer, and added that the advisory committee suggested a low-interest loan program for funding. Ms. Wilcox stated that this cost would be around $15,000.

John Hiatt, Lobbyist, Advisory Committee for Groundwater Management, Southern Nevada Water Authority, spoke from prepared comments (Exhibit K) in support of A.B. 347. Mr. Hiatt stated that he is a domestic well owner who will be affected by this measure and agrees with the domestic well owners paying for the hookup, as well as the low-interest loan program.

Ken Rawson, Lobbyist, Advisory Committee for Groundwater Management, Southern Nevada Water Authority, testified in support of A.B. 347, and spoke from prepared comments (Exhibit L).

R. Michael Turnipseed, State Engineer, Division of Water Resources, State Department of Conservation and Natural Resources, testified in support of Assembly Bill 347.

Chairman Rhoads inquired when Senator James would be holding a subcommittee meeting on the two bills under discussion. Senator James replied a hearing is planned for May 11, 1999, or May 12, 1999.

John M. Bonaventura, Lobbyist, Nevada Well Owners Association, stated that the well owners association he represents is opposed to A.B. 347, in its present form.

Ray Preston, Member, Nevada Well Owners Association, testified that the majority of people in his association were under the impression that their domestic wells were grandfathered and not subject to the problems they are now facing. Mr. Preston pointed out that the cost estimate proposed by the Southern Nevada Water Authority is incorrect, because it does not include all the costs, which are estimated to be approximately $20,000 for a complete hookup. Mr. Preston included numerous estimates (Exhibit M) for this hookup and commented that the majority of the affected people cannot afford such a fee and would be forced to sell their home.

Senator James explained that a lot of people do not realize that their water rights are revocable because of a provision in Nevada Revised Statutes 534.120 which allows the state water engineer to grant temporary permits, which these people have.

Marjorie King, Member, Nevada Well Owners Association, testified in opposition to A.B. 347, and stated that she and her husband are well owners who are retired and would be forced to sell their home if they had to pay for the municipal hookup.

Chairman Rhoads commented that is why he is putting A.B. 347 in a subcommittee so the problems can be worked out to everyone’s satisfaction.

William King, Member, Nevada Well Owners Association, concurred with his wife’s statement.

Robert Tretiak, Member, Nevada Well Owners Association, spoke in opposition to A.B. 347, and commented that this bill would affect not only the value of homes because of the lien that would be attached to them for this hookup, but could devastate people like the Kings.

Chairman Rhoads commented that the committee has received a lot of response to this issue, and the well owners association has done a good job of getting their point across to the committee.

Bruce Hamilton, President, Tule Springs Community Association, testified that his homeowners association interests were not represented in the drafting of A.B. 347 and proposed an amendment to the bill (Exhibit N). Mr. Hamilton stated that his amendment would not allow the Southern Nevada Water Authority to charge a person to hook up to the municipal system more than the cost would be to rehabilitate their well. Mr. Hamilton added that he would probably be one of the people who would have to sell their house because of this expense. Mr. Hamilton concluded by saying it is the responsibility of government to, "Protect the rights and interests of the affected persons and to avoid an inequitable distribution of burden, such that a very small number of people would bear a disproportionately large burden to create a public benefit."

Assemblywoman Kathy A. Von Tobel, Clark County Assembly District No. 20, testified that A.B. 237, with a proposed amendment, would cover almost all of the costs to hook up the people being affected.

Ms. Wilcox Slay commented that the grants would cover approximately 85 percent of the cost to hook up to municipal water.

James Donohue, Concerned Citizen, stated that the only cost benefit outlined by the Southern Nevada Water Authority, by the passage of A.B. 347, would be to save $700 to unnamed domestic water users. Mr. Donohue questioned what is the worth of converting these domestic wells to the Southern Nevada Water Authority because it is never mentioned in the cost-benefit analysis. Mr. Donohue quoted from page 21 of the Southern Nevada Water Authority’s cost-benefit analysis, "Additionally there is an incredible large capital cost savings by using groundwater to meet the summer demand, rather than building additional capacity."

Senator Jon C. Porter, Sr., Clark County Senatorial District No. 1, commented that he would give his support to sit on the subcommittee and believed this is a very important problem in southern Nevada.

Louise Ruskamp, Vice President, Tule Springs Community Association, went on record to support the efforts of the Nevada Well Owners Association, and asked for support of the amendment from Mr. Hamilton.

Senator James announced the subcommittee would meet on Wednesday May 12, 1999, upon adjournment of the Senate Committee on Natural Resources.

Chairman Rhoads closed the hearing on A.B. 347 and A.B. 408, and opened the hearing on A.B. 199

Assemblyman Bob Beers, Clark County Assembly District No. 4, gave a power point presentation outlining why he thinks boating education should be mandatory (Exhibit O).

Chairman Rhoads asked Assemblyman Beers how many states have an education program similar to this issue. Assemblyman Beers replied there are 26 states that participate in boating education in varying forms. Assemblyman Beers testified that the boating education is somewhat patterned after the hunters safety course phasing in one-time requirements, which could be completed through the mail, Internet or classroom.

Chairman Rhoads asked if Nevada participates in any type of boating education for school age children. Fred Messmann, Deputy Chief Game Warden, Bureau of Law Enforcement, Division of Wildlife, State Department of Conservation and Natural Resources, replied that they have started a program in the Elko schools, but have a problem with the public schools because of the time restraints on education. Mr. Messmann added that the current education program is strictly voluntary and 90 percent of the people involved in a boating accident have not had boating education. Mr. Messmann commented that most states are choosing not to do licensing, but leaning toward the one-time certification course like the one being proposed in A.B. 199.

Senator McGinness asked if the money from the fuel tax, which would fund this program, would be taken away from another current program. Assemblyman Beers replied that there is a surplus of funds in the boating program. Senator McGinness asked if there would be a cost associated with the mail-in program, and Assemblyman Beers replied that there would be no cost for either the Internet or the mail-in test.

Senator Coffin asked how other states have dealt with the public response to this new education requirement. Assemblyman Beers replied that this has been dealt with by having a time period where boating education could be met, and implementing it into the youth population.

Senator Jacobsen asked if this bill would involve out-of-state visitors. Assemblyman Beers responded that a visitor would be covered under the reciprocity rule, which allows 60 days to comply.

Senator James asked if this bill would allow a sheriff to stop a boater and check for a safety certification. Mr. Messmann replied that they could, but the person in question would be able to complete the education course and not pay the citation. Senator James asked why it would be necessary for Nevadans to comply with this if visitors from other states do not have to comply. Assemblyman Beers commented that most other states require this education and already comply with this type of certification.

Senator James asked how serious are the accidents caused by lack of boating education. Mr. Messmann reiterated that 90 percent of accidents are caused by people without education, and they only want to teach the basic rules of boating. Mr. Messman added that if the states do not implement an education program for boating the federal government will mandate one to the states.

Senator James pointed out that he respects what is trying to be accomplished with this bill, but thinks the government is becoming too involved in everyday lives and thinks this measure might be too much. Assemblyman Beers replied that he shares Senator James’ concerns, but education will help to diminish boating accidents. Chairman Rhoads commented that he was sent to the Legislature to pass fewer laws, and less regulations.

Senator McGinness asked what percentage of boating accidents are caused by alcohol. Mr. Messmann replied that the Nevada Division of Wildlife estimates approximately 30 percent of fatal accidents involve alcohol.

Chairman Rhoads closed the hearing on A.B. 199 and opened the hearing on A.B. 574.

Assemblyman David E. Humke, Washoe County Assembly District No. 26, testified that A.B. 574 clarifies that a real estate sale must be contingent on a water analysis by a state certified laboratory.

William F. Pillsbury, President, Sierra Environmental Monitoring Inc., stated that the purpose of this bill is merely for clarification because he understood this problem was taken care of in 1995, with Assembly Bill 580 of the Sixty-eighth Session.

Mr. Pillsbury clarified that all of the laboratories are not participating in the certification program because A.B. 580 of the Sixty-eighth Session stated that a lab had to be certified, but did not specify for what.

Senator Rhoads inquired if, in the past, a water sample could be tested by any lab for analysis as part of a real estate transaction, and certified. Mr. Pillsbury replied that is correct and the laboratories were not certified or regulated.

Anton Sohn, Chairman, Pathology Department, School of Medicine, University of Nevada, Reno, stated that he is attending this meeting because the state laboratory is now a part of the pathology department, and this issue has significant public health issues.

Louis Dee Brown, M.D., Director, State Health Laboratory, School of Medicine, University of Nevada, Reno, testified in support of A.B. 574 because of the public health implications. Dr. Brown pointed out that former legislation has allowed a double standard to develop in the testing of safe and clean drinking water between certified and noncertified laboratories. Dr. Brown asserted that this bill will enact one standard, as established by the State Board of Health, at a standard more stringent than the Safe Drinking Water Act.

Senator Shaffer inquired about the possible additional costs involved in the more stringent standards being proposed and the current testing. Stephanie Ernaga, Business Manager, Nevada State Health Laboratory, School of Medicine, University of Nevada, Reno, replied that each lab sets their own pricing, but she thinks the costs would stay relatively the same. Mr. Pillsbury added that his lab charges between $100 and $220 and he does not see any considerable increase in costs, but the currently uncertified labs may have to increase their costs.

Chairman Rhoads closed the hearing on A.B. 574 and opened the hearing on A.B. 134.

Yvonne Sylva, Administrator, Health Division, Department of Human Resources, spoke in support of A.B. 134 and recited some background on the bill. Ms. Sylva added that Assemblywoman de Braga has agreed to the removal of her amendment to the bill that outlined a sunset provision, and has agreed to amendments outlined in comments from Galen D. Denio, Supervisor, Bureau of Health Protection Services, Health Division, Department of Human Resources.

Mr. Denio, spoke from prepared comments (Exhibit P) in support of A.B. 134. Mr. Denio explained that the Drinking Water State Revolving Fund, which is a federally funded program, helps rural water systems with technical assistance, as well as low cost loans. Mr. Denio commented the program is at risk of losing its funding if the sunset provision, outlined earlier by Ms. Sylva, is not removed from A.B. 134.

Chairman Rhoads asked if this program would help Jarbidge with its water system. Mr. Denio replied that Jarbidge is on the top of their priority list. Senator Jacobsen asked if they have any plans to help Virginia City. Mr. Denio responded that the Drinking Water State Revolving Fund could also help Virginia City.

Senator McGinness asked if the definitions outlined on page 1 of A.B. 134 referring to the number of connections defining a "Community water system" would exclude some water systems in the state. Mr. Denio replied the definition in section 3 is a federal definition, and the definition in section 6, as modified by the proposed amendments in attachment 3 of Exhibit P, would not change the water systems affected by this regulation. Senator McGinness asked if this definition is already in the statutes. Mr. Denio responded that these definitions are in their regulations.

Charles E. Lawson, Lobbyist, Nevada Rural Water Association, testified that they are not in total opposition to the bill, but do oppose the word "persons" on page 4, line 9 of the bill, because they do not know who these "persons" are. Mr. Lawson explained his association opposes this because they should have a voice in how regulations are adopted, and added that the language on page 5, section 17, subsection 4, would take away the voice of the rural water systems.

Chairman Rhoads asked Mr. Lawson if he testified on this subject in the Assembly. Mr. Lawson responded that he did.

Steve Porter, Executive Director, Nevada Rural Water Association, explained that the Nevada Rural Water Association represents 98 small water systems, providing technical assistance. Mr. Porter reiterated that the word "persons" is stating to them that the state Health Division would rather contract with private parties rather than the association.

Jonathan C. Palm, Manager, Bureau of Health Protection Services, Health Division, Department of Human Resources, responded to Mr. Lawson’s testimony by saying the Nevada Rural Water Association is a good organization and does a lot of work for the Safe Drinking Water Act. Mr. Palm explained that he thinks Mr. Lawson’s opposition to the word "persons" is misunderstood because the state Health Division now contracts with several different entities like the University of Nevada. Mr. Palm pointed out that they would like to be able to contract with a wide variety of entities that can provide the best assistance available, and Mr. Lawson only wants them to contract with his association even though they cannot provide everything the state Health Division may need.

Senator McGinness asked why the current language does not provide enough choices now, and what does the addition of the word "persons" really mean. Mr. Denio replied the original wording prohibits them from contracting with individuals who can provide services that are not currently available within the state agencies. Senator McGinness asked if they already have a person for this job or if it would go out to bid. Mr. Denio replied that it would go out to bid.

Chairman Rhoads asked Mr. Lawson how one word could cause so much debate. Mr. Lawson explained he feels the Health Division is disparaging the work they do in the state.

Diana Langs, Manager, Sun Valley General Improvement District (SVGID), testified in support of A.B. 574, and added the Sun Valley General Improvement District is a member of the Nevada Rural Water Association. Ms. Langs commented that her concern is with mobile home parks, with master meters, because of the language in section 9, subsection 1, paragraph (c) of A.B. 134, pertaining to service connection to mobile homes. Ms. Langs pointed out SVGID would have a difficult time to meet this definition because they do not maintain the lines directly to the lots as well as the lines in the private streets.

Mr. Denio remarked that a master meter, referred to by Ms. Langs, is exempted from the requirement of the Safe Drinking Water Act by definition.

Chairman Rhoads asked Mr. Denio if he and Mr. Lawson have tried to negotiate the word "persons" to satisfy both parties. Mr. Denio replied that they have spoken to Mr. Lawson, who feels the word "persons" should not be included, but he (Mr. Denio) feels that it should be included to provide fairness to all contractors that could provide service.

Chairman Rhoads closed the hearing on A.B. 134, and with no further business before the committee, he adjourned the meeting at 4:25 p.m.

RESPECTFULLY SUBMITTED:

Scott Corbett,

Committee Secretary

APPROVED BY:

Senator Dean A. Rhoads, Chairman

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