COMMITTEE MEMBERS PRESENT:

Senator Mike McGinness, Chairman

Senator Dean A. Rhoads, Vice Chairman

Senator Randolph J. Townsend

Senator Ann O’Connell

Senator Joseph M. Neal, Jr.

Senator Bob Coffin

Senator Michael Schneider

GUEST LEGISLATORS PRESENT:

Senator Maurice E. Washington, Washoe County Senatorial District No. 2

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

STAFF MEMBERS PRESENT:

Alice Nevin, Committee Secretary

OTHERS PRESENT:

Chairman McGinness stated the entire meeting would be devoted to a work session. He referred to Senate Bill (S.B.) 88.

SENATE BILL 88: Increases state license fee on gaming. (BDR 41-76)

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Chairman McGinness referred to S.B. 156.

SENATOR TOWNSEND MOVED TO INDEFINITELY POSTPONE S.B. 156.

SENATOR RHOADS SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 221.

SENATOR RHOADS MOVED TO INDEFINITELY POSTPONE S.B. 221.

SENATOR O’CONNELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 287.

Keith L. Lee, Lobbyist, Southwest Airlines, stated he and Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association, met to draft language for an amendment to S.B. 287. He noted the amendment was submitted to the Legal Division, Legislative Counsel Bureau. He said the language would be a preamble to the bill and would not affect the content of the bill. He declared this bill, with the addition of the preamble language, was acceptable to Southwest Airlines.

SENATOR RHOADS SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 317.

Chairman McGinness stated the Department of Taxation had provided answers to questions regarding the bill. He referred to Senate Bill 317 of the Seventieth Session of the Nevada Legislature (Exhibit C).

SENATOR COFFIN MOVED TO INDEFINITELY POSTPONE S.B. 317.

SENATOR TOWNSEND SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR NEAL VOTED NO.)

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Chairman McGinness referred to S.B. 319.

SENATOR TOWNSEND SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 402.

SENATE BILL 402: Revises provisions relating to property tax. (BDR 32-1568)

Chairman McGinness called attention to a memorandum from Norman Azevedo, Senior Deputy Attorney General, Taxation Section, Office of Attorney General (Exhibit D).

SENATOR COFFIN MOVED TO INDEFINITELY POSTPONE S.B. 402.

SENATOR RHOADS SECONDED THE MOTION.

Senator Neal asked for clarification of the issue. David Pursell, Executive Director, Department of Taxation, said the court upheld the Nevada Tax Commission’s decision, noting this entity would not meet the criteria for an exemption, as presented in the court case. Senator Neal said he understood this was a charitable organization. Senator O’Connell clarified this entity had higher rate charges than other similar facilities in the area. She continued in order to have nonprofit status, and receive the exemption, the entity would have to be under the current rate of the other facilities in the area.

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Chairman McGinness referred to S.B. 403.

Jon L. Sasser, Lobbyist, Washoe Legal Services, presented A Memorandum From Jon L. Sasser, dated March 30, 1999 (Exhibit E), and Proposed Amendment to S.B. 403 (Option 2) (Exhibit F). He discussed Exhibit E and Exhibit F and added it was important to limit the tax exemption to four business quarters.

Senator Maurice E. Washington, Washoe County Senatorial District No. 2, agreed it was important to have a time limit on the tax exemption. He noted this bill was an attempt to address problems with the current statute (Nevada Revised Statutes (NRS) 364A.150).

Senator Rhoads inquired about the fiscal impact for this bill. Mr. Pursell said the department did not have data to determine the fiscal impact of the bill. He noted the amendments could be administered, but the data was unavailable.

Chairman McGinness asked if businesses were taking advantage of the exemptions in the present law. Mr. Sasser replied the current statute gave a tax exemption, if child care was provided on-site or through a voucher; this bill would provide alternative ways to obtain the exemption.

Senator Coffin stated it was his policy to oppose any bills requesting exemptions.

Chairman McGinness referred to S.B. 405.

SENATOR NEAL MOVED TO DO PASS S.B. 405.

SENATOR SCHNEIDER SECONDED THE MOTION.

Chairman McGinness referred to S.B. 406.

SENATOR NEAL MOVED TO DO PASS S.B. 406.

THE MOTION FAILED FOR LACK OF A SECOND.

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SENATOR O’CONNELL MOVED TO INDEFINITELY POSTPONE S.B. 406.

SENATOR COFFIN SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR NEAL VOTED NO.)

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Chairman McGinness referred to S.B. 426.

Chairman McGinness noted this bill was heard previously and a letter was sent to the Senate Bill 253 of the Sixty-ninth Session committee to consider the bill.

Chairman McGinness referred to S.B. 468.

Charles W. Joerg, Lobbyist, Nevada Marine Trade Association, testified the amendments had not been received but the concept was the same as reported at the earlier hearing. He summarized the appraisal function of the Division of Wildlife would be removed; a publication called National Association of Automobile Dealers (marine division) would be used to determine the value; the Department of Taxation would submit an amendment that allowed the capture of taxes on large motorboats being registered by the United States Coast Guard; provisions of the bill would be effective July 1, 2000, with the exception of the tax on the large boats, which would be on passage and approval of the bill.

Senator O’Connell noted the Governor had said he would not approve any tax increases. Mr. Joerg clarified currently there was a tax in place but it was not collected because of the way people registered their boats.

Terry R. Crawforth, Administrator, Division of Wildlife, Department of Conservation and Natural Resources, pointed out various sections of the bill were required to have differential effective dates.

SENATOR COFFIN MOVED TO DO PASS S.B. 468.

SENATOR O’CONNELL SECONDED THE MOTION.

Chairman McGinness referred to S.B. 476.

SENATOR RHOADS MOVED TO DO PASS S.B. 476.

SENATOR O’CONNELL SECONDED THE MOTION.

Chairman McGinness referred to S.B. 502.

SENATOR O’CONNELL MOVED TO DO PASS S.B. 502.

SENATOR RHOADS SECONDED THE MOTION.

Chairman McGinness referred to S.B. 522.

SENATOR COFFIN MOVED TO DO PASS S.B. 522.

SENATOR O’CONNELL SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR NEAL VOTED NO. SENATORS TOWNSEND AND SCHNEIDER WERE ABSENT FOR THE VOTE.)

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Chairman McGinness referred to S.B. 524.

Chairman McGinness stated this bill would be referred to the Senate Bill 253 of the Sixty-ninth Session committee.

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Chairman McGinness referred to S.B. 534.

SENATOR O’CONNELL MOVED TO DO PASS S.B. 534.

SENATOR RHOADS SECONDED THE MOTION.

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Chairman McGinness referred to S.B. 535.

SENATOR O’CONNELL MOVED TO DO PASS S.B. 535.

SENATOR COFFIN SECONDED THE MOTION.

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Chairman McGinness referred to S.B. 536.

SENATOR RHOADS MOVED TO DO PASS S.B. 536.

SENATOR O’CONNELL SECONDED THE MOTION.

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Chairman McGinness referred to S.B. 538.

Senator Jon C. Porter, Sr., Clark County Senatorial District No. 1, testified the Senate Bill 253 of the Sixty-ninth Session committee looked at the this bill because the communities of Henderson and North Las Vegas had concerns about the projected formulas. He noted the City of Henderson had requested the excess distribution formula be removed. Senator Porter requested the technical committee (Senate Bill 253 of the Sixty-ninth Session Technical Advisory Committee) compare and complete their evaluation of the formula’s performance and findings. He stated any changes could be presented for consideration before the end of the session.

Senator Neal said a bill was passed in the Senate to disallow the certification of population until after the census (United States Bureau of Census) was taken. Elizabeth N. Fretwell, Lobbyist, City of Henderson, said the issue was a discrepancy in the formula, which was unrelated to population figures. She said if the concern was how the formula worked on an annual basis, waiting 2 years would have a detrimental impact. Senator Porter acknowledged this was a separate issue.

Marvin A. Leavitt, Lobbyist, City of Las Vegas, said currently the technical committee (Senate Bill 253 of the Sixty-ninth Session Technical Advisory Committee) had revenue estimates for the next fiscal year. He commented this bill would enable the committee to review and consider this issue to see if a change appeared appropriate.

SENATOR O’CONNELL MOVED TO DO PASS S.B. 538.

SENATOR TOWNSEND SECONDED THE MOTION.

Senator Neal reiterated his question about the process of population certification. Mr. Leavitt said if the Governor was unable to certify population numbers every year, there would be a problem with the distribution of taxes. Senator Neal said the estimates would create a constitutional problem. He noted because the census (United States Bureau of Census) figures would be completed in a short while, those numbers should be used. Senator O’Connell said several counties were very similar in population and an accurate count must be received. Chairman McGinness clarified when census (United States Bureau of Census) figures were current, they were used; in off years, the state demographer provided numbers, which were certified by the Governor. He said he would ask Legal Counsel (Legal Division, Legislative Counsel Bureau) to look at the question of certification of population numbers. Mr. Leavitt commented the technical committee could be requested to review how to compute the population base between years.

THE MOTION CARRIED UNANIMOUSLY.

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THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 539.

SENATOR O’CONNELL MOVED TO INDEFINITELY POSTPONE S.B. 539.

SENATOR COFFIN SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 537.

Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association, presented a skeleton form of this bill (Exhibit G.) She reviewed the bill for the committee.

Chairman McGinness referred to S.B. 523.

SENATOR TOWNSEND MOVED TO DO PASS S.B. 523.

SENATOR O’CONNELL SECONDED THE MOTION.

THE MOTION CARRIED UNANIMOUSLY.

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Chairman McGinness referred to S.B. 411.

Senator Rhoads noted he had just received new information regarding the fiscal impact of the bill.

SENATOR RHOADS MOVED TO INDEFINITELY POSTPONE S.B. 411.

SENATOR TOWNSEND SECONDED THE MOTION.

SENATOR RHOADS WITHDREW THE MOTION.

SENATOR TOWNSEND WITHDREW THE SECOND.

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The committee recessed at 4:00 p.m. and reconvened at 5:25 p.m.

Chairman McGinness referred again to S.B. 411.

SENATOR O’CONNELL SECONDED THE MOTION.

THE MOTION CARRIED. (SENATOR SCHNEIDER WAS ABSENT FOR THE VOTE.)

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Chairman McGinness referred to S.B. 477.

Senator Townsend noted an agreement had been reached between the parties within Washoe County. He referred to Amendments to S.B. 477 (Exhibit H). In addition, he read the agreed upon amended travel policy of the Reno-Sparks Convention and Visitors Authority (RSCVA):

Vicki McGowan, Director of Marketing, Incline Village and Crystal Bay Visitors and Convention Bureau noted there had been an agreement with the Reno-Sparks Convention and Visitors Authority (RSCVA) for several years but this agreement would codify the relationship for the Lake Tahoe portion of Washoe County. She expressed disappointment that there would be no funding for the transportation project outlined before the committee during a previous hearing. She noted it was an important element of the marketing of Lake Tahoe, and would specifically benefit the business community of the north shore.

Senator Townsend said a compromise had been reached between the RSCVA, City of Sparks and the Nevada Resort Association (NRA) over the phase-in of funds.

Harvey Whittemore, Lobbyist, Nevada Resort Association, called attention to page 2, Exhibit H. He noted the phase-in proposal was not accepted by the City of Sparks, but was accepted by the members of the NRA, with some modifications. He said neither amendment, supported by the NRA, changed the makeup of the steering committee for the downtown Reno project because it was felt it should be at the discretion of the RSCVA.

Mr. Whittemore summarized amendments were proposed at the original hearing of S.B. 477; amendments were further modified by the amendments presented in Exhibit H, and a separate amendment provided that this tax would expire upon the final payment of the bonds. He emphasized these were the elements of the final compromise.

William E. Isaeff, Lobbyist, City of Sparks, presented Proposed Amendment to S.B. 477 from the City of Sparks (Exhibit I). He said the City Council, City of Sparks, made a slight modification to the original proposal. He stated Exhibit I presented the percentage approach, which was fairer to the City of Sparks, with respect to their contributions to the room tax. He also referred to page 2 of Exhibit I, saying the council felt it was important that the steering committee not be dominated by persons from the private sector. He called attention to the fact that the council agreed with the following proposed by Mr. Whittemore: the two-thirds vote on projects; the change in the collection agency; the change when vacancies occur to the committee; the severability clause.

Senator O’Connell asked if the City of Sparks could raise the room tax by 1 percent. Mr. Isaeff said, under existing state law, the City of Sparks had no authority to raise the tax by 1 percent without additional legislation. Senator O’Connell clarified the 1-percent tax increase had been voted upon and rejected by the council on two separate occasions. Mr. Isaeff said yes, the City Council, City of Sparks, believed it was an important economic benefit to the city to maintain the 1-percent differential between Sparks, the City of Reno, and Washoe County. Mr. Isaeff said this bill, as written, took funds generated within the City of Sparks and spent them entirely within the City of Reno. He clarified, "The city supported funds being dedicated, under this bill, to the RSCVA’s expansion and remodeling, but the council believed they should participate in some way with the portion of money that was collected in the City of Sparks."

Mr. Whittemore said the bill presented by the NRA was a product of intense negotiations which did not include anybody from Lake Tahoe because they were were not members of the NRA. Commenting further, he said very difficult negotiations took place with members of NRA who had to weigh a number of important issues. He stressed it was important to maintain the intent of this agreement, to provide funding for the RSCVA. He noted page 2, Exhibit H, Additional Amendments to S.B. 477, provided additional funds to the City of Sparks. Mr. Whittemore stated:

Senator Neal clarified Incline Village (Incline Village and Crystal Bay Visitors and Convention Bureau) could collect the additional 3-percent room tax but they were not included in negotiations and they do not get anything in return. He stated, "They generate 3 percent, perhaps they should receive the whole 3 percent tax back for transportation needs."

Senator Townsend said:

In answer to Senator Coffin’s question, Mr. Whittemore clarified the RSCVA is the present collection agency and would continue, to avoid duplication of function. He noted this was requested by the Treasurer’s Office, Washoe County.

Senator Coffin asked if the City of Sparks had considered the total revenue picture and whether or not their proposal weakened this project.

Mr. Isaeff stated:

J. Phillip Keene III, President and Chief Executive Officer, Reno-Sparks Convention and Visitors Authority, addressed the current RSCVA travel policy. He said this issue would be revisited at the next board meeting. Senator Coffin said, "I do not think there is anything wrong with taking spouses on trips." Senator Townsend said, "In Las Vegas you can do anything you want with your convention authority, but it is inappropriate for our convention authority to have that policy. I have asked the RSCVA to revisit this issue."

SENATOR RHOADS SECONDED THE MOTION.

Senator Neal clarified an agreement was codified with Incline (Incline Village and Crystal Bay Visitors and Convention Bureau) and additional funding was provided for the City of Sparks, as listed in the NRA proposal (Exhibit H). Senator Neal then requested an amendment be prepared to include Incline Village (Incline Village and Crystal Bay Visitors and Convention Bureau) and the City of Sparks, if they wanted to be included.

THE MOTION CARRIED. (SENATORS NEAL AND COFFIN VOTED NO.)

Chairman McGinness adjourned the meeting at 6:15 p.m.

RESPECTFULLY SUBMITTED:

Alice Nevin,

Committee Secretary

APPROVED BY:

Senator Mike McGinness, Chairman

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